ANNUAL REPORT 2019

MINUTES OF THE 2019 ANNUAL GENERAL MEETING 51 additional One-Day International in the year and also a very strong Test Match in terms of revenue. Commercial income showed a 21% increase up from £4.01 million in 2017 to £4.86 million in 2018. This was mainly as a result of catering income being £700,000 higher and hospitality income £100,000 higher both because of the additional One-Day International during the year. Grants and Dona- tions were down 9% due to the last Council loan to grant conversion happening in 2017.This amounted to £180,000 and there was noth- ing in 2018. Overall Income had increased by 21% during the year. Expense Movements – Professional Cricket and the Academy costs increased by approximately 5%. Community and Development costs reduced by 6%, but this did not mean that less was spent in this area.The club received a higher proportion of external funding for its activities and, therefore, reduced its own spend on this item. Ground Facilities and Match Expe- nditure showed an increase of 22%, up from £3.23 million in 2017 to £3.93 million in 2018 and this was due to hosting an additional ODI during the year. Administration and Commercial Expenditure was up 19% as a result of the additional costs of catering and hospitality relating to the addi- tional One-Day International. These costs were up from £1.7 million in 2017 to £2.3 million in 2018, but there were additional revenues of £800,000 to offset against this. Overall costs were up 15% year-on-year or £1.5 million in monetary terms. Turnover Trends – The year ending 30 September 2018 produced income in excess of £13.0 million which is a record level of income for the club.The main contribution to this was the amount of interna- tional cricket staged at Trent Bridge during the year. International Matches – A slide was used to illustrate the impact that international cricket had on the club’s financial results.The two lines representing international match income and the overall sur- plus of deficit each year continued to mirror each other and, in that respect, 2018 followed the estab- lished pattern. Historical Performance – Another strong financial result for the year to 30 September 2018, boosting the club’s accumulated surpluses less deficits over the previous ten years to £3 million. In summarising, Mr Ellis reported that the year to 30 September 2018 produced the highest annual in- come in the club’s history - £13.1 million.There was a strong and necessary contribution to this from international cricket.There were positive cash flows from operating activities. Finally, he reported that the budget set for 2019 showed a surplus for the year. Members were given the opportu- nity of raising any questions they might have on the financial report. Mr R Day congratulated Mr Ellis on the figures that had been produced, asking how much of the £6m plus income from cricket was down to membership subscriptions. This was on average between £650,000-£700,000 per annum – which was a highly significant figure. The Chief Executive was asked a question concerning the breakdown of wages and salaries in the annual accounts, and why there had been such an increase on the previous year, bearing in mind the number of ‘high-earning’ professional cricketers who had left the club. She explained that there were a num- ber of factors involved and that salary figure also included the cost of addi- tional casual labour such as stewards and catering staff – although their number was not included in the headcount figure.The majority of the increase related to such individ- uals, given that the club had hosted an additional One Day International compared to the previous year, as well as a Test Match that went to five days. Permanent members of staff had increased by seven across all depart- ments including one on ground- staff, two in cricket but the biggest increase was in community and development, given the focus on growing the game. Mr J A Evans raised a query on the cost of the Radcliffe Road stand development. He had reviewed the capital expenditure stated in the accounts since the commencement of the project and believed that the cost of the development was higher than that stated. Mr Eatherington confirmed that the amount of capital expenditure he referred to did not all relate to that project, but included all standard capital expenditure items for the club. Actual expenditure by the club on the Radcliffe Road devel- opment was £7.467m, as previously confirmed. Mr Evans commented that he did not accept that the cost of the dev- elopment was as stated and believed that the club had spent an additional sum. Ms Pursehouse asked Mr Evans if he was referring to the Fixed Asset Register which showed the total cost of the Radcliffe Road Develop- ment. She confirmed that this was more than the £7.467m paid by the club, but that a third party had paid the additional sum for an asset they owned. It was an extremely positive ar- rangement for the club, and Ms Pursehouse confirmed that no £13.1m ANNUAL INCOME YEAR TO 30 . 09.18