Saru report profit despite tough period

2015-04-01 00:00

CAPE TOWN — The South African Rugby Union (Saru) have made a small operating profit — exceeding forecasts — in a very difficult economic environment, they announced yesterday.

Saru reported a group profit before taxation of R6,6 million for the year ended December 31, 2014, R5 million ahead of budget and the fourth successive year of profit.

A deferred taxation charge of R4,7 million resulted in after-tax profit declining to R1,9 million.

Saru CEO Jurie Roux said that rugby — like any South African business — remained under continuing financial constraints. “The consistent theme over recent years has been the extreme financial pressure being felt in all corners of the game,” he said.

“Once again, we went on a cost-cutting exercise in mid-year, which allowed us to report a small surplus in a very tough financial year.

“It was the fourth successive year of surplus for our organisation — the longest consecutive surplus period in the past 22 years.”

Roux said that he expected economic conditions to remain unchanged in the short term, but hoped that new broadcast and sponsorship agreements from 2016 would ease some of the pressures.

Saru group revenue rose to R821 million, slightly up from the 2013 level of R799 million, due mainly to an eight percent increase in sponsorship revenue, while group operating expenditure increased by three percent.

The group’s financial position remained reasonably healthy, said Roux, with total equity of R82 million.

Cash flow improved significantly and as a result a net cash balance of R11 million was reported at 2014 year-end, compared to a net bank overdraft position of R25 million at the end of the previous financial year.

The results will be presented for approval at the Saru annual general meeting, which takes place at 11 am at the Newlands Southern Sun today.

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