Financial Statements for the Year Ended 31st May 2014

Exeter City have published their annual accounts for the year ending 31st May 2014. The figures show a loss for the year of £271,196, although the underlying trading loss is considerably reduced when depreciation costs of £194k included in that figure are taken into account.

The 2013-14 season proved challenging for the Club both on and off the pitch. Despite a 9.5% increase in Commercial incomes, the combination of pressure on matchday related income due to a struggle at the wrong end of the League 2 table and a £291k reduction in transfer fees received were the main contributors to a 7% year on year decline in total revenue. The club continues to budget for a breakeven position each year and so, faced with a decline in revenues against the budget, began the process of reducing underlying off-pitch costs during the season. This activity also enabled investment in the playing squad to ensure that we remained in League 2, and the payment of modest but important costs associated with the acquisition of the Fountain Centre and also the progression of proposals and plans for the development of St James Park.

The full annualised benefit of the reduction in Club administrative expenses will be achieved during the current financial year when, despite a challenging summer and start to the season, we expect to deliver a better than breakeven budget performance, even before taking account of the income windfall associated with player transfers.

In order to protect the playing budget whilst at the same time reducing overall costs, various Executive roles were removed from the Club’s structure. During the period, and subsequently, our employees and supporting volunteers have performed their additional duties with great skill and we thank them for their commitment and ability. In addition to keeping up to date with all HMRC and supplier obligations, the Club has targeted its debtor and creditor management as part of this activity and significant improvements in these areas will flow through to our financial performance this year.

The Club’s accounts have been audited and show no auditor qualifications or concerns, due in part to the improvements highlighted above and also the ongoing support and contribution of the Supporters’ Trust and its members as the majority shareholder. Examination of the profit and loss performance and balance sheet position of almost every other football club in the country illustrates the strength of our model, the benefit of our ability to manage the business in a responsible fashion, and the income and community opportunities available through continuing to invest in our own highly prized Youth Academy and Football in the Community Charity.

The Board of Directors
Exeter City AFC Limited
March 2015