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After the accounts
There seems to be some confusion about the latest accounts and what they reveal. They cover the period from June 2000 to the last day of May 2001, so are already some 15 months out of date. And although they report a poor year, there are good reasons to believe that the latest year (June 2001 to May 2002) will be nearer a break-even situation.
A comparison between the years ending May 2000 and May 2001 show a profit of £70,524 and a loss of £109,000 respectively. This is a difference of about £175,000 in net income. Yet the accounts show that gate receipts dropped by £120,000 and income from advertising and TV dropped by £136,000, so actual income dropped by about £250,000. The implication of these figures is that costs have dropped by about £75,000, and so the directors have been very careful with any spending. The overall debt is up to £1,370,204 which explains why no money can be spent on anything bar the bare essentials.
However in the year ending May 2002, there was better revenue from broadcasting. With the Wrexham cup game bringing in £100,000 and a couple of televised Conference matches helping the coffers as well, receipts from media and advertising should be back to about £150,000. Although attendance for Conference games dropped, the cup run will have helped keep gate receipts at a level just a little lower than the previous year. A small loss of perhaps no more than £20,000 looks likely assuming the sale money for Gavin Williams was banked in May.
Gate receipts are so important. Two hundred extra people paying at the turnstiles means an extra £1,500 income, so over say 25 home games that is £37,500. Pro-rata 500 extra brings in £93,750 and probably more money spent on programmes and the like.
The year we are now in looks more promising. The new promotion system could help attendances especially later in the season, and the ITV Digital fiasco has led to a general cut in players wages. These two factors alone should bring income and expenditure more into line. If the Bulls were to have a decent league and/or cup run and the TV cameras come to Edgar Street, Hereford could return a reasonable profit for the current year.
