End August Finance Update

We posted a £23k operating profit for August 2024, as football returned to Gigg Lane. This has almost cancelled out the £27k loss in July, when we bore the costs of playing with no revenue as the stadium did not open until early August. We also met a number of additional costs to get the Main Stand open in August, including the third party safety reports required to meet the appropriate standards.

We have secured the same level of advertising and sponsorship revenue as we achieved last season and with greater clarity on our sponsorship packages we hope this revenue line will continue to rise as the season progresses. We already have a number of packages sold for next season, and have attracted some notable local business interest.

Whilst our runs in both the FA Cup and FA Vase have brought some incredible moments, most notably our latest FA Cup win at Radcliffe, they are less lucrative than many assume. The gate receipts are shared between both teams after costs, and the limited capacity of most grounds we have visited away from home (and every FA Cup game has been away from home!) means ticket revenue is constrained. The sold out Radcliffe tie was probably our first good pay day, especially as the win bonus was over £5k. Cup games also push league games to a Tuesday night, which always dampens the crowd size and the spend on food and beverage in the ground. Plus our playing costs increase. In August we only played one league game at home on a Saturday. Our last and only Saturday 3pm home league game was against Irlam on 10th August and we are not due another until November. This does have a negative financial impact on the club, despite the extra ticket revenue from shared cup game receipts.

August's figures do not include any significant revenue for pitch hire which started in September. We expect this revenue to grow over time as much of September was spent bedding in our own teams and reviewing how this will work operationally. As a result we are now looking for more part time staff to cover evening work, as Starkies Bar is proving popular on some evenings and weekend matchdays when used by our recreational teams.

The men's first team costs have been increased by a small amount on last season. The cup runs have added to those costs. Playing costs are well controlled, but cup runs create some unpredictability. Total team costs will be higher for the season as we are supporting a much larger number of teams and their support staff, although many of them also add to our revenue through pitch hire and sponsorship.

With a strong balance sheet and healthy cash position we are now starting to invest in the long term future of Gigg Lane, and look for areas where we can make the stadium more efficient.

Firstly, we have agreed a spend of £64k plus VAT on new LED lights and a management system which will allow us to vary the lux levels for different events. The price includes a 10 year maintenance plan. We have been able to source match funding for the lighting up to £30k, which means the cost to the club is only £34k. We expect to recover this outlay in less than two years due to the saving we expect to make on energy costs. The new LED lights will give us a maximum lux rating of 500 which is significantly higher than required at our level of football but ensures they will be adequate well into the future and very close to the lighting level supporters are used to.

Secondly, we are building a new reception area to allow those renting the pitch to enter the stadium via the space by Starkies. We are in the process of bringing in vending machines for snacks and drinks into that area, in addition to resourcing Starkies more during the week as parents are using it whilst their children are playing on the pitch.

Thirdly, we are working with Bury Council and the Safety Advisory Group, to bring the ground up to a level which will last the next 10-15 years. This is a long term project with some significant costs attached but it will address the issues which were not dealt with under the club's previous owners for cost reasons. This is principally the treatment of the metalworks around the stadium to ensure the safety of spectators in the event of a fire. We have already invested in a number of items intended to address safety, but the treatment of the metalworks is the most time consuming and expensive. The club is now in a position to fund this work and we are establishing costs, focusing on the Main Stand which is the most costly and most in need of attention. We will produce a programme of works during the off season which is likely to take two years for the Main Stand before moving to other stands. We will provide members with further details once finalised.

These are investments which we can only make due to the continued support of our fan base, and the hard work which has gone into the club behind the scenes. It is always easier when the team is successful on the pitch but the loyalty of supporters through thick and thin is the reason we are in the position to commence this work today.