TIDMWAS1
RNS Number : 1250A
Wasps Finance PLC
21 December 2017
21 December 2017
Wasps Holdings Limited
Update for the year ended 30 June 2017
Another year of progress on and off the field
("Wasps")
Wasps, an English Premiership rugby union club and owner of the
Ricoh Arena in Coventry, one of the UK's leading sports,
exhibition, conferencing and entertainment arenas, today announces
its highlights for the year ended 30 June 2017.
Nick Eastwood, Chief Executive said:
"I am pleased with the progress made in our second full year at
the Ricoh Arena, a move which has proved transformational for the
Club, with record revenue growth. It has been another active year
during which we have further consolidated our position at the
Arena, hosting a number of landmark events and we are seeing the
continued benefits from improvements and agreements made in
2016.
"We have also attracted several new partners including Ericsson
as our indoor sponsor, who will also be introducing a high density
Wi-Fi network. This will significantly improve the experience for
all our customers and events partners through the development of a
bespoke application and other technological improvements.
"It was also an exciting season on the field and we were
delighted at the high standard played by the team, who finished
first in the regular season but lost out in the dying minutes of
the playoff final. I would like to take this opportunity to thank
all of our fans, both old and new. Attendances have been at record
levels with more Season Ticket holders than ever and we are
grateful for everyone's continued support both on and off the
field.
"I am excited about the year ahead and at the start we have
already made for the 2017/18 year. We still have a great deal of
potential to maximise our unique position at the Ricoh to attract
the business and entertainment events, secure more partnerships,
host the highest quality sport and continue to grow the
business."
Group Financial highlights(1)
-- Turnover increased 8.5% to GBP33.6m (2015/16: GBP30.9m)
-- Gross margin up from 33.5% to 34.4%
-- Operating profit before exceptional items and allocation to
non-controlling interests of GBP0.8m (FY2016: GBP(3.8)m)
-- Increased Operating profit/(loss) before depreciation, exceptional items and allocation to non-controlling interests to GBP2.4m (2015/16: GBP(2.2)m)
-- Operating loss decreased from GBP(6.2)m) to GBP(0.8)m
-- Valuation of the Arena improved to GBP60.0m(2) and P shares unchanged at GBP9.7m
Wasps highlights
-- Finished 1(st) in the Aviva Premiership, eventually losing in the final to Exeter
-- Reached Quarter-finals of European Champions Cup
-- Increased average attendance to 19,338 (2015/16: 16,916)
-- Hospitality sales improved 49% on 2015/16 and 42% increase in
ticket income including netball
-- Season Ticket sales for 2017/18 up a further 25%
-- New central deal with RFU will increase annual income by
GBP1.2m on average over the next eight years
-- Wasps netball team launched, winning the Vitality Netball Super League in their first season
-- T M Lewin, Gett, Scutum and npower signed as new sponsors
ACL highlights
-- New naming rights for Indoor Arena: Ericsson, and a
partnership for the development of a high density Wi-Fi network
-- Negotiated new terms with Ricoh as naming rights partner
-- Hotel conversion to DoubleTree by Hilton has proved very
successful with Rev Par improved to GBP49 (2015/16: GBP42)
-- 895 events held with successful concerts hosted for: Robbie
Williams, Craig David, Catfish and the Bottlemen and Peter Kay
-- 4 Nations Rugby League and International Netball introduced to the Arena during the year
(1) The financial results present selective consolidated
financial information relating to Wasps Holdings for the financial
year ended 30 June 2017. As at the date of this announcement, this
information has not been audited by the Wasps Holdings' auditors,
PricewaterhouseCoopers LLP ("PwC"). Such information has been
prepared in accordance with IFRS and such accounting is consistent
with the accounting policies of Wasps Holdings. Wasps Holdings
expects such unaudited financial information to be substantially
consistent with the audited consolidated financial statements of
Wasps Holdings for such period, once the audit is complete.
(2) The property was valued at GBP60m by professional RICS
valuers Gerald Eve LLP during the 2017 year.
Launch of Consent Solicitation
Wasps Finance plc announces that it is requesting the
Bondholders of its Retail Bond to authorise certain waivers and
modifications in respect of the terms and conditions of the Bonds
and provisions of the trust deed, summarised in the RNS
announcement made today titled "Wasps Finance plc Launches Consent
Solicitation in Respect of its GBP35,000,000 6.50 per cent. Secured
Bonds Due 13 May 2022".
Wasps is making this Consent Solicitation as a result of a
reduction in Consolidated EBITDA for the financial year ended 30
June 2017 from GBP3.5 million to GBP2.4 million, which has been
identified by the statutory audit of the Group by PwC. The
over-statement of Consolidated EBITDA was attributable to the
improper accounting as income under IFRS of and certain accounting
irregularities relating to a GBP1.1 million cash contribution
received by Wasps Holdings from its ultimate shareholder, which was
incorrectly accounted for as income under IFRS in respect of the
financial year ended 30 June 2017. Due to the timing of receipt,
the board of directors of Wasps Holdings and its auditors have also
concluded that the cash contribution should be accounted for as a
capital contribution made in the financial year ending 30 June
2018.
Nick Eastwood commented:
"We take the events and circumstances surrounding the accounting
of the cash contribution extremely seriously and have implemented
various steps to strengthen the robustness of the Group's reporting
and accounting procedures. The business has evolved significantly
since we moved to the Ricoh Arena in 2015. We have continued to
grow the business, reported record revenues and reduced operating
losses as part of our strategy to build a stable foundation for our
long-term future. We welcome the continued support from our
Bondholders throughout this time. We believe the proposals
announced today represent important amendments that are in their
interest as part of the Group's ongoing development and commercial
success."
- Ends -
For more information, please contact
Tulchan
Elizabeth Snow T: +44 (0)207 353 4200
M: +44 (0)791 254 0246
About Wasps and the Ricoh Arena
Wasps is a professional rugby team which plays in the Aviva
Premiership, European Rugby Champions Cup and Anglo Welsh Cup.
Wasps has been crowned European Champions twice and English
Champions five times. For more information about the Club and our
partners please visit www.wasps.co.uk
The Ricoh Arena is an award-winning venue which has a mix of
state-of the art conference, banqueting, exhibition, hotel, music
and sports facilities. Visited by over 1.6 million people each
year, it is a firm favourite in the UK for music promoters as well
as business and sports event organisers. The facilities
include:
-- 32,600 seat stadium; a concert venue of 40,500 capacity
-- 121 room DoubleTree by Hilton Hotel
-- One of the UK's largest casinos operated by Grosvenor Casinos
-- 20,000sqm of conference and exhibition hall
-- Food and beverages including bars and restaurant
-- 2,000 onsite car parking bays
This information is provided by RNS
The company news service from the London Stock Exchange
END
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