Lancashire Announce improved Operating Profit for 2016
LANCASHIRE COUNTY CRICKET CLUB has announced an operating profit of £1,222,000 for the year ended 31 December 2016 which represents an increase of 60% on the previous year. Despite the adverse impact of the loss of the Old Trafford Lodge at the start of the year and subsequent ongoing disruption caused by construction work on the new Hilton Garden Inn, there was an encouraging improvement in overall trading performance as the Club continued its major ground development work.
The new hotel is scheduled for completion in June this year, and will see the culmination over the last nine years of £60 million of capital investment aimed at creating a world class venue for both cricket and other events. Construction work is continuing at a pace with invaluable funding and support from Trafford Council and the Greater Manchester Combined Authority being key to its success.
Whilst it was a disappointing season on the pitch in terms of results, First Division safety was ultimately secured, and a new crop of young players were able to make a big impression with Haseeb Hameed, Liam Livingstone, Rob Jones and Matt Parkinson, in particular, making their mark with outstanding individual performances.
Off the pitch the Club achieved record conference and events sales of £3.7 million as well as hosting successful concerts featuring world renowned artists Beyoncé and Rihanna. These activities helped to supplement income generated from the major international matches which saw 70,000 spectators visiting Emirates Old Trafford to watch England play Pakistan in both a Test match and the T20 format. The latter match generated a sell-out attendance, as did the Roses NatWest T20 Blast match against Yorkshire, clearly demonstrating the growing popularity of the shortest form of the game. Strong brands also continue to be attracted to the Club, with Heineken joining existing partners Emirates, Hilton, AJ Bell, AO and Kukri in forming a strong portfolio of sponsors.
Finance Director, Lee Morgan, stated: “The Club continues to carefully manoeuvre its way through the myriad of challenges provided by the ground re-development programme and the competitive trading environment, and whilst being faced with many of the cash flow challenges encountered by all county cricket clubs, is now close to having all the building blocks in place to secure a positive future.
“With the new Hilton Garden Inn Hotel due to come on stream this summer, and in doing so completing the Club’s full suite of facilities, and with three years of major matches in the diary, including visits from South Africa, West Indies, India and Australia before the Ashes Test Match and Cricket World Cup in 2019, a financially sustainable business model is close to being in place.”