£20m Loan Write-Off Leads To Extraordinary 2016 Profit At Sixways

Worcester Warriors through their operating company, WRFC Trading Ltd made a profit of £13.8m in the year-ending June 2016 due to a write-off of shareholder loans worth £20.4m during the year.

The accounts were filed in April this year, but this extraordinary item has only been called to the attention of Running Rugby this week.

The underlying loss for the year before tax was £6.6m, an increase of £1.1m from the prior year. Turnover increased by £1.5m to £9.8m, which was due to an additional £0.7m in central funding, £0.6m in gate receipts and £0.2m from other commercial activity.

The business continues to run a successful conference and events operation, turning over £1.1m in a range of events from sales meetings to weddings.

The club continues to be reliant on its shareholders for its financial support. The shareholders continue to fully support the club’s five-year investment plan.