The WRU closed the year with its overall turnover remaining above £60m for the second financial period in succession.
Figures in the Annual Report for the year ended 30 June 2013 show that the WRU allocated £4.0m into the community game throughout Wales which was up from a figure of £3.8m in the previous year.
The sum spent on the costs of elite rugby went up 2% to a figure of £4.2m which primarily represents the sum for managing the National Centre of Excellence, the age-grade structures and the National Sevens squad. Included within the £22.1m are one-off investments of £1.3m into the community game, mainly through facilities grants, and £1.0m made available to the four Regions to fund player recruitment, retention and development.
The overall spending and re-investment levels were achieved in a year which the Group Chief Executive had forecast, in last year’s Annual Report , would be financially tougher than 2012.
By the close of the financial year 2013, the WRU Group achieved a turnover of £61.0m which was down from £63.2m the year before, however earnings and allocations were up.
The net repayable bank debt of the WRU also remained below £20m at £19.5m and remains on target to be cleared by 2021.
There were also significant executive changes announced during the year with World Cup winner Josh Lewsey joining as Head of Rugby and Lieutenant Colonel Mark Williams as Millennium Stadium Manager.
The financial success of the past year was driven by powerful international performances on the field including the fourth RBS 6 Nations title in nine years, which included three Grand Slams.
Although the WRU’s performance is cyclical and dependant on set sporting and major event schedules, its Group Chief Executive described the overall performance in the year as remarkable.
Highlights of the last financial year include:
• A turnover of £61.0m
• A record EBITDA (Earnings before interest, tax, depreciation and allocations) of £29.1m up from £27.6m in 2012
• £16.9m distributed to the four Regions from ERC and RaboDirect tournament income including c£6.4m directly from the WRU
• A record £22.1m allocation to affiliated organisations
• A record re-investment of £4.0m into the community game
• Net repayable bank debt remained below £20m at £19.5m keeping the WRU on target to be debt free by 2021.
The financial success during the year was consolidated with the announcement of a major new media rights agreement with the BBC which secures the broadcast of Wales’ Autumn international series games on network television until 2018.
The strong financial performance during 2012 and into 2013 helped the WRU deliver on its core commercial and operational priorities in a range of areas.
The WRU was able to focus on developing schools rugby with a highlight being the launch of its WRU Schools Accreditation Scheme recognising their involvement in the game.
An arrangement with S4C ensured U18 schools and colleges rugby featured on television in Wales with the programming continuing into the year ahead.
A WRU Club Operations Team was established to focus on the community level of the game and a WRU Club Funding Tool was launched online to help source financial help.
A pro bono legal scheme offering free advice to clubs by law students at Cardiff University was also put in place with back up support from the Hugh James law firm and Civitas barristers’ chambers.
Much of the effort and focus on the community game was driven throughout the year by the results of the WRU Club Census which identified the needs and priorities for the WRU’s member clubs.
The level of income and re-investment achieved during a year signposted by challenging financial conditions in the wider UK economy was again underpinned by acclaimed successes on the field of play.
Amongst these rugby highlight were:
• An RBS 6 Nations Championship title
• A record Six Nations win against England by 30 points to 3.
• 16 players and 7 backroom staff selected for the British and Irish Lions with key Welsh involvement in the Lions series victory
• A Junior World Championship final place for Wales U20 including a historic U20 win over South Africa
• Wales Sevens reaching the final of the Hong Kong leg of the IRB World Series
• Wales Sevens reaching the knock out stage of the IRB Sevens Rugby World Cup
• A total of 100 Welsh qualified players playing international rugby at some level during the month of June 2013
Against this backdrop of rugby achievements the WRU was also informed that eight Rugby World Cup 2015 international games including two quarter finals will take place at the Millennium Stadium.
During the year the Stadium also hosted 11 international football games during the London Olympics 2012.
The Stadium continued to be a major events location – during the year, the Stadium hosted the 2013 Speedway Grand Prix and a concert by Rihanna.
A keynote rugby event during the year was Judgement Day when the Stadium played host to matches between all four of the Welsh regions for the first time at the same venue on the same day.
A National Sevens tournament was launched during the year and behind the scenes the governing body launched a review of its own governance headed by the distinguished High Court judge Sir Robert Owen.
There was reform within the community league structures and RGC, the north Wales team, successfully completed its first season as a representative league team winning promotion to the Championship Division.
The WRU kept its focus on investment to underpin all developments and a cryotherapy chamber and high altitude training facility were installed at the WRU National Centre of Excellence.
At regional level there was a continuation of work to improve operational infrastructure with the Regions and the WRU establishing a new Professional Regional Game Board under the independent and non-voting chairmanship of Sir Wyn Williams.
The confidence expressed within the Group also encouraged the WRU to consider bidding to host the Rugby World Cup Sevens competition in 2018.
WRU Group Chief Executive Roger Lewis said: “The results we publish today stand as clear confirmation that our business is now set on firm foundations and we are able to operate successfully even in challenging economic times.
“This displays a direct link with the key changes we have put in place since 2006 with radical reforms of our financial and operational practices plus a robust recruitment policy.
“It costs money to fund radical change and nurture development so I am delighted that we have again been able to deliver meaningful and record levels of financial support within our priority areas of elite rugby, the community game and the Millennium Stadium.
“It is also a tribute to our success and our reputation that we are able to attract key executive staff of the calibre of Josh Lewsey as Head of Rugby and Mark Williams to become Millennium Stadium Manager to join our outstanding Executive Board.
“Soon we will welcome the Rugby League World Cup opening ceremony and matches to the Stadium and we are already beginning to plan for the Rugby World Cup games we will host in 2015. These are great times for Wales and we are delighted to be playing our part in making this a great nation to be part of.
The WRU Group Finance Director, Steve Phillips, said: “We entered the financial year knowing the economic prospects were challenging so I am delighted at the way we have been able to perform.
“We are now at a stage in our corporate development where we can make decisions based on a real and significant understanding of how our business model works. We know how to manage the challenges and retain the confidence to make radical decisions on our operational and investment targets.”
