Jurie Roux, SARU CEO
The South African Rugby Union (SARU) made a small operating profit – exceeding forecasts – in a very difficult economic environment, the Union announced on Tuesday.
SARU reported a group profit before taxation of R 6.6 million for the year ended 31 December 2014, R 5 million ahead of budget and the 4th successive year of profit. A deferred taxation charge of R 4.7 million resulted in after tax profit declined to R 1.9 million.
Jurie Roux, chief executive officer (CEO) of SARU, 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 4th 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 R 821 million, slightly up from the 2013 level of R 799 million, due mainly to an 8% increase in sponsorship revenue, while group operating expenditure increased by a modest 3%.
The Group’s financial position remained reasonably healthy, said Roux, with total equity of R 82 million.
Cash flow improved significantly and as a result a net cash balance of R 11 million was reported at 2014 year-end, compared to a net bank overdraft position of R 25 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 11:00 SA Time at the Newlands Southern Sun, Cape Town on 1 April, 2015.