Update On 2023/24 Financial Year Results
Hereford FC Chairman, Chris Ammonds, has this evening addressed the club’s shareholders at an informal meeting at Edgar Street and provided an update on the results for the 2023/24 financial year (based on the unaudited accounts).
It is well documented that the club entered the year in a perilous position financially, but thanks to a huge amount of work off the field and fantastic support from the club’s fans through increased attendances, after several years of losses, in 2023/24 the club has recorded a significant profit.
However, it must be acknowledged that the key driver to achieving a profit was the improved performances on the field and a more exciting, adventurous and committed style of play for supporters to get behind and enjoy.
The improved product on the field increased income in all areas – including ticket sales, the Club Shop, the bars and commercial sales – and this fact once again demonstrates that on-field performance will almost always have the biggest impact on income levels at any football club.
Bulls Chairman, Chris Ammonds, said:
“It is very pleasing to confirm that our club has recorded a profit for the 2023/24 financial year.
“I am incredibly proud of everyone who has played a part in achieving this result and would like to sincerely thank every individual involved – from the club staff, playing staff, coaching staff and volunteers, right through to the fans who support us week in and week out.
“While on paper the profit may seem an exciting figure, I need to remind people that last summer our reserves were down to around £5000, a truly desperate situation for a business of our size.
“The majority of the profit made in 2023/24 will be ringfenced to rebuild our reserves because we cannot put ourselves in a position where we do not have money available to cover the costs of an unforeseen issue with the infrastructure at Edgar Street – which is always possible given the age of the ground – or a situation where our income is reduced for any lengthy period.
“It goes without saying that this would put our club’s very existence in grave danger.
“Pleasingly, from an on-field point of view, the improved financial performance and projected profit allowed us to strategically increase the playing budget and improve the squad during the course of the 2023/24 season (the unbudgeted for income from the cup runs being key to this) and also improve the initial football budget for the 2024/25 season by 15%.
“The football budget for this campaign was then further enhanced by the fantastic response to Squad Builder and I remain incredibly grateful to everyone who has contributed to that initiative this year.
“We have also been able to complete infrastructure projects like the drilling of a borehole for the sprinkler system, which is already saving us so much money on bills that it looks likely to pay for itself within 18 months.”
2023/24 Financial Year Highlights (all figures are approximate):
- Turnover (income) was £1,480,000
- Expenditure was £1,360,000 (with over 50% being spent on football and matchday costs)
- Profit recorded was £120,000
- Bar and Club Shop profits up by 69% (compared to 2022/23)
- The overall profit from the FA Cup and FA Trophy runs was around £100,000
- Season Ticket revenue increased by 23% (compared to 2022/23)
- League match ticket revenue increased by 49% (compared to 2022/23).
Edgar Street infrastructure projects needed:
- Replacement of the Merton Stand roof has been recommended within the next 2 years. Initial quotes suggest costs of at least £150,000
- The roof of the RE Resource Hereford Suite needs renewing due to persistent leaks. Initial quotes suggest a cost of around £50,000
- Improvements required to the accessible facilities (particularly the toilets). This work is likely to cost between £10,000 and £20,000
- The stadium PA and CCTV needs to be upgraded as the current systems are dated and almost obsolete. To replace the systems to the required standard is likely to cost more than £30,000.
Fans Forum Reminder And just a reminder that the Hereford FC Chairman is hosting a Fans Forum in Radford’s Bar ahead of our National League North home game against Marine on Saturday 9 November – starting at 1pm – where he will be happy to provide further context about the club’s financial performance in 2023/24.
