Oxford United has today (Thursday 28th March) filed its Financial Statements for the year ended 30th June 2023 with Companies House following board approval earlier in the week.
The Financial Statements outline the club’s financial position as of 30th June 2023 and cover the 2022/23 campaign in Sky Bet League One and cup competitions, a season of change for the club both on and off the pitch.
Before commenting on the year end financials, the following table represents key sporting performance for the year for the men’s first team:
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|
2022/23 |
2021/22 |
|
|
|
|
|
EFL League One |
Finished 19th |
Finished 8th |
|
|
|
|
|
FA Cup |
Exit in 3rd Round |
Exit in 1st Round |
|
|
|
|
|
EFL Cup |
Exit in 2nd round |
Exit in 2nd Round |
|
|
|
|
|
EFL Trophy |
Exit in Group Stages |
Exit in Group Stages |
|
|
|
|
In support of the overall financials the following table represents the key financial metrics for the year:
|
|
2022/23 |
2021/22 |
|
|
£’000 |
£’000 |
|
|
|
|
|
Turnover |
7,487 |
6,886 |
|
Cost of Sales |
(9,247) |
(7,587) |
|
Gross Loss |
(1,760) |
(701) |
|
|
|
|
|
Administrative Expenses |
(5,446) |
(4,254) |
|
Income & Expense Relating To Player Acquisitions & Disposals |
1,074 |
862 |
|
|
|
|
|
Operating Loss |
(6,132) |
(4,093) |
|
|
|
|
|
Interest Payable |
(49) |
(34) |
|
|
|
|
|
Net Loss Before Tax* |
(6,181) |
(4,127) |
|
|
|
|
|
Cash Reserves |
252 |
414 |
|
|
|
|
|
Amounts Owed To Group Undertakings |
26,812 |
20,636 |
*the club has amended its accounting policy for certain player acquisition costs, the effect of which is to reduce the 2022 loss before tax by approximately £34k compared to the amount previously disclosed in the 2022 financial statements.
Turnover
Total turnover for the year increased by more than 8% to £7.5M with reductions in overall central funding received by the club being more than offset by improved turnover in almost every other key area.
Overall turnover also benefited from the FA Cup 3rd Round tie against Arsenal played at the Kassam Stadium.
Retail and Commercial turnover rose by 24%, resulting in overall commercial revenues exceeding £2M.
Turnover from ticket sales (excluding the impact of cup gateshare) held firm at around £2.1M. This represents an especially strong performance for 2023 given the poor run of results between January 2023 and March 2023 and the difficult end to the 2023 season.
During the 2022/23 season the club embarked on an ambitious growth strategy, not only with regards to the ongoing project for the new stadium, which is reflected in tangible fixed assets, but also with its aim to become a sustainable top 30 football club.
This strategy resulted in a significant increase in player salaries and general costs on the sporting side of the business. This was against a backdrop of significant cost pressures on energy and utilities which then led to significant inflation in the salaries of matchday agency staff which the club had to absorb.
Furthermore, there was a significant restructuring of the playing management and coaching staff in March 2023 which resulted in additional costs.
As a result of this, cost of sales increased from £7.6M in 2022 to £9.2M in 2023 resulting in an increase in the gross loss of the club from £0.7M in 2022 to £1.8M in 2023.
Costs
Turning to administrative expenses, this once again reflects the investment in the operations of the club. Two key appointments were made during 2023, namely the Chief Executive Officer and Chief Commercial & Marketing Officer, which impacted on overall wages and salary costs for the year. However, there was also significant cost pressure following the inflationary environment during 2022 and 2023 as a result of the global economic crisis.
As a result, we saw increases in general operating costs, especially utilities, wages and salaries.
Furthermore, we made further investment in the Oxford United Youth Academy aimed at producing new talent for the next generation. We are already seeing the benefits of this into 2024, however the overall project will take some time to come to fruition, but the academy is in a stronger position than ever right now.
Balance Sheet
Turning now to the balance sheet, there are relatively few significant changes compared with the prior year.
The most significant change relates to tangible fixed assets where the increase of around £2.5M substantially reflects the ongoing investment in the new stadium project.
The increase in creditors mainly relates to an increase in trade creditors and to the loans that shareholders have provided to the club during the year, both to support operations and for the investment in the new stadium project. The balance due to shareholders is net of £2M of debt which was converted to equity during the year.
Summary
Financially this was a season where the club relied on support from its shareholders more significantly than ever, but that support was always forthcoming. Whilst the 2022/23 season didn’t meet expectations, the club ended in a strong position for the start of the 2023/24 season.
Oxford United Chairman, Grant Ferguson, concluded: “It has been both a challenging yet exciting time, particularly given the progress with the new stadium project and improved on pitch results.
“I’m proud of the progress we’ve achieved, something which wouldn’t be possible without the ongoing investment from our shareholders and the valued contributions from so many across the wider Oxfordshire community.
“The club’s focus is now on achieving the strongest possible finish to the season. Thank you to our fans and staff for their support.”
You can also view the submitted report, in full, by clicking HERE