Newport County’s Upcoming Accounts Signal an End to Financial Losses

Newport County, which had previously committed to implementing “serious changes” in its operations following two consecutive years of financial losses, has announced that its forthcoming accounts will demonstrate the club has concluded a period of financial deficits previously characterized as “unsustainable.” The League Two team has confirmed its first profit in three years, prompting chairman Huw Jenkins to state that the club is “slowly seeing some light moving forward.” Newport had reported cumulative losses of £2.14m across its last two sets of accounts. However, the club indicates that new results, scheduled for publication at Companies House, will reveal a pre-tax profit of £25,060 for the financial year concluding in June 2024. These accounts represent the first to be released since the takeover, led by former Swansea City chairman Jenkins, which occurred in January 2024 as part of a £500,000 deal. At the time of the takeover, the club acknowledged that its future was in serious doubt. The club confirms that this figure is incorporated into the new results, and Jenkins further noted that additional funding has since been provided. Huw Jenkins acquired a controlling 52% stake in the Rodney Parade club after its Supporters Trust decided to seek external investment. Jenkins commented, “After two very difficult trading years, we are slowly seeing some light moving forward which is encouraging for everyone connected to the club.” He added, “While we have also cleared a substantial amount of aged debt, there is still a great deal of work to do to ensure the club achieves financial stability and sustainability for future generations of our supporters.” Jenkins also stated, “Fixed costs remain extremely high for a League Two club and additional director loans have since been injected to ease cashflow.” Newport recorded a loss of £913,306 for the year ending June 2023 and £1.231m for the preceding 12 months. The new financial figures for the 2023-24 season are expected to show an increase in income, attributed to a successful FA Cup run, which included a televised fourth-round match against Manchester United. Overall turnover saw an increase of almost a quarter, rising from £3.463m to £4.588m. Concurrently, combined matchday income and commercial revenue grew by 42%, from £1.415m to £2.011m. The accounts will not reflect the funds received for striker Will Evans, who transferred to Mansfield in August in a deal valued at approximately £200,000 – marking the first transfer fee the Exiles had received in six years. Furthermore, the accounts will not include the compensation package for manager Graham Coughlan, who was dismissed in June. Jenkins highlighted the lack of training facilities as an issue requiring attention due to the associated costs, stating, “especially as future profitability remains in the balance without on-pitch success, player trading and increased commercial revenue.” Despite acknowledging that significant work remains both on and off the pitch to achieve sustainability, the club has expressed encouragement regarding the progress made. This includes an increase in season ticket and matchday sales, growth in commercial revenue, and cost control savings achieved through strict accounting processes.