Page 26 - RFU Annual Report 2017

24
Strategic Report

Financial Review

Balance Sheet and Cash Flow The remaining £8.4m is made up
(continued) of other smaller debtors and an
increased level of accrued income,
Total capital expenditure of £19.4m which includes the British & Irish
in the year included ongoing works Lions tour of New Zealand.
on the East Stand Project of £12.8m,
the first four Artificial Grass Pitches Creditors falling due within one year
(AGPs) of £3.1m, ongoing business as increased by £1.0m from £39.6m to
usual stadium expenditure of £2.8m, £40.6m, with an increase in deferred
and £0.7m of other IT hardware income of £6m being largely offset
and purchases by the subsidiaries. by a £4.1m reduction in trade
Depreciation increased by £0.1m to creditors as a result of balances being
£15.3m, while assets with an original settled to facilitate the move to a new
cost of £2.4m and net book value of finance system, which took place
£0.2m were disposed of during soon after the year end.
the year.
Creditors falling due after one year
Investments held in the Injured increased by £13.5m from £73.2m to
Players Foundation (IPF) were valued £86.7m due to the drawdown of an
at £7.7m at 30 June 2017, an increase additional £10.1m of the five-year
of £0.6m year-on-year. RBS £50m revolving credit facility,
the straight line increase of £0.9m
There was no change to the carrying in the obligation for the RFU to buy
value of the investment made on back Compass Group PLC’s 40%
1st July 2015 in acquiring a 10% share in TEL in 2025 for £55m, a £3m
shareholding in Rugby International loan received from Compass also
Marketing, an organisation set repayable in 2025, a reduction in the
up to maximise the commercial finance lease liability of £0.3m, and
rights of USA Rugby, the majority a £0.2m reduction in accruals and
shareholder. The RFU rationale for deferred income.
this investment is both to generate
a diversified commercial return and, Debentures increased by £28.2m
more importantly, to support the from £184.8m to £213.0m due to the
development of rugby in what is the planned issue of a 2017 series of
largest international sporting market. debentures and the sale of upgrades
to existing debenture holders relating
Two of the 13 residential properties to the new East Stand facilities.
held at 30 June 2016 in the vicinity
of Twickenham Stadium, owned by Cash reduced in the year by £2.7m
the RFU, have been disposed of for from £27.2m at 30 June 2016 to
a total of £1.3m, while an additional £24.5m at 30 June 2017, reflecting the
property was purchased for £0.9m. utilisation of the debenture proceeds
The 12 residential properties held and incremental loan draw down
at 30 June 2017 have been revalued to fund the East Stand Project and
upwards by £1.5m. The total value of AGP investments, as well as changes
investment properties has increased in working capital. The Group’s
by £1.1m from £7.1m to £8.2m. on-going operations continued to be
strongly cash positive.
Debtors and prepayments due within
one year increased by £28.5m, from
£20.6m to £49.1m. £20.1m of this
relates to trade debtors, of which
£9.3m was due to an approved delay
on a payment from a key trading
partner that was paid in full on 3 July.

Annual Report 2017