Lancashire Announce Operating Profit For 2015
Lancashire County Cricket Club has announced an operating profit of £763,000 for the year ended 31 December 2015. This creditable result has been recorded in a year which did not include the hosting of a Test match for the first time since the completion of the recent re-development of Emirates Old Trafford, as the Club effectively took its turn to miss out through the rotation system for allocating matches around the Test match venues.
On the field, the Club was successful in achieving promotion back to the First Division of the County Championship at the first attempt as well as securing its first One Day Trophy in 16 years with triumph in the NatWest T20 Blast at Edgbaston with a squad largely made up of home grown players.
One Day and T20 Internationals involving Australia and New Zealand resulted in a total audience of more than 50,000 spectators. However, this did not prevent an anticipated year on year fall in associated revenues that eventually amounted to more than £1.3million which the Club proactively mitigated by careful variable cost management to significantlydilute the impact on the bottom line.
Outside of cricket, the Club saw its underlying Conference and Events revenue levels retained but with improved margins stemming from an improved mix of business and more effective utilisation of costs. At the same time, in its final year of operation, the Old Trafford Lodge again recorded revenues of in excess of £1million at a very healthy room rate which bodes well for the new hotel due to be available from the summer of 2017.
Work commenced on the new 4 star 150-bed Hilton Garden Inn in February 2016 after the final tranches of funding were secured and the building contract signed. This will see the Club complete the final element of the redevelopment of Emirates Old Trafford which commenced in early 2009.
2015 also saw the return of major concerts with 50,000 attending the Foo Fighters performance, the success of which has led to promoters bringing both Rihanna and Beyoncé to the venue in 2016.
The Club continues to target the growth of its ancillary activities to support cricket revenues and with a young and talented squad and highly motivated coaching team, is looking forward to an exciting period ahead with the Club competing strongly in all competitions.
Finance Director, Lee Morgan, stated “A successful year out on the pitch has been supported with a solid set of financial results, with a year on year reduction in operating profits fully anticipated based on the allocation of major matches during 2015. After a year’s absence, 2016 will see the return of Test match cricket to Emirates Old Trafford with Pakistan providing the opposition for England this forthcoming July.”