Exeter cut pre-tax losses by £4million

Exeter Rugby Group PLC, which runs Exeter Chiefs, made a pre-tax loss of £419,000 in the financial year to June 30, 2024.

The group, which also oversees the events business based at the Gallagher Premiership club’s Sandy Park home, saw pre-tax losses reduced by £4.1m from £ 4.5m the previous year following several cost-cutting measures.

Exeter slashed £2.7m from their wage bill, with players’ salaries probably accounting for a large proportion of the savings.

In the last couple of years, the Chiefs have said farewell to the core of their double-winning team of 2020, with crowd favourites like Jack Nowell, Sam and Joe Simmonds, Dave Ewers and Luke Cowan-Dickie all leaving for better pay-days elsewhere.

Results have suffered as a result and the club are currently in a rebuilding phase, on and off the pitch.

With the cost-of-living crisis affecting supporters’ spending, turnover has dropped from £25.7m to £21.7m.

The Strategic Report published on the Companies House website, states: “Exeter Rugby Group PLC generated a loss before tax of £419,329 for the year ended 30 June 2024 in comparison to a loss before tax of £4,580,536 achieved in the previous year.

“The positive change is largely due to increased rugby attendance as the season progressed, coupled with financial gains from progression games. However, the economic environment has presented challenges, including high inflation, rising energy costs, and increased interest rates, all of which have impacted operational and financing expenses, as well as consumer spending.

“The resulting cash flow pressures, particularly related to serving pandemic-era borrowings, have led the Directors to take proactive steps, including selling disposable assets owned by Exeter Rugby Group PLC.”

In November 2022, Exeter Chairman Tony Rowe bought a stake in the Sandy Park Hotel, which is located next to the rugby ground, to help the club pay back some of its government-owned Covid-19 loans. A further stake was purchased in June 2024, reducing the club’s shareholding to 24%.

But the independent auditor’s report states, “that at the time of signing the financial statement the Department for Culture, Media and Sport have not provided consent for the share transaction which took place on June 30, 2024.”

Whilst it goes on to say that all the directors are confident consent will be given, it may explain why the auditors consider there still to be material uncertainty about the club as a going concern.