Newport County reveal loss of £1.2m with FA Cup money spent

The Trust-owned Exiles have reported a perilous financial position after their last audited accounts, for the year ending June 30, 2021, stated net assets of £837,859.

The Argus understands that, after past accounting issues, the next figure filed at Companies House will show a balance sheet with a deficit of £393,000 for the period up to June 30, 2022.

Of the club’s creditors, the bulk is to the Dragons with around £500,000 owed to the Welsh Rugby Union-owned club they share Rodney Parade with.

County agreed a 10-year lease for use of the historic ground in 2013 and that has expired without a new one being signed due to the fine detail being thrashed out.

However, the relationship between the parties is cordial and both are in need of the partnership continuing, with the English Football League being kept in the loop.

The financial figures were reported to shareholders and members of the Newport County Supporters' Trust at a special meeting at Rodney Parade on Tuesday evening.

An annual general meeting of Newport Association Football Club Limited will be held on June 29.

Rodney Parade, home of Newport County (Image: File)

Trust-owned County have been given an extension on an audit of their accounts by Companies House and they will be lodged before the end of the month.

The club have been assisted by experienced financial consultant Nick Igoe, who works with Supporters Direct, and he made a presentation on Tuesday evening.

The Exiles have usually operated with structural losses of around £250,000 a year and they have been helped through the years by the lucrative cup runs experienced under Michael Flynn.

However, the funds built up through those pre-Covid seasons have now gone for a variety of reasons over a number of years, despite what was in previous accounts.

Finances have further hit in recent times by the sacking of James Rowberry and assistant Carl Serrant, a legal wrangle with their ticket provider, kit distributor Elite going into administration along with away jersey sponsor Hoodhill Motor Company, overspending on the player budget and an increase in stadium costs.

There are no VAT or HMRC issues and the club hierarchy are confident that they now have better controls on spending, with losses are now more ‘stable’ and akin to past years.

Nonetheless, the situation has led to former County director Colin Everett being tasked with looking at options for future ownership.

In an independent project to the side of the board operation he will assess the pros and cons of staying fully Trust-owned, the hybrid model and putting the club up for sale.

It is vital to retain Football League status and manager Graham Coughlan is tasked with avoiding another brush with relegation next season with a budget that is among League Two’s lowest.