Lincoln City have released their accounts for the financial year ending in June 2023.
In our fourth successive season back in League One we finished in a credible 11th place. League form improved significantly after the close of the January transfer window, with 21-year-old Ethan Erhahon a notable signing at the end of January for a six-figure sum.
TURNOVER
Matchday revenue was down marginally with both league gate receipts and EFL Digital revenue reflecting declines. This was offset to some extent by higher gate receipts from cup competitions specifically from the run in the Carabao Cup. Central distributions were lower by £400k which was the main reason for the decline in overall turnover.
Although retail income was unchanged both commercial income and hospitality declined by in excess of 8%. Football fortune and miscellaneous income was up significantly with higher loan fees received and increased prize money from cup competitions.
PLAYER TRADING
Overall player trading amounted to just short of £600k. Profits were generated from the sale of Cohen Bramall, Anthony Scully and to a lesser extent from Tom Hopper. A small loss was made on the sale of Jamie Robson. Sell-on fees were received from the transfer of Harry Toffolo and Jorge Grant and a minor add-on was received from the sale of James Jones following Wrexham's promotion. With this latest fee generated from the sale of Harry Toffolo, the total fees received from his transfer amount to approximately £640,000, a record for the club. Compensation was also received for a very young academy player signed by a Premier League club.
2022/23 RESULT
The operating loss for the year increased further from £2.0m to £2.6m with administrative expenses up by £343k. With continued inflationary pressures, operating costs across the club were significantly higher again.
Although staff costs reflect a decrease of £305k over the previous year, when related items such as amortisation, agent fees and net loan fees are included there was only a small decline over the previous year.
BALANCE SHEET
In order to fund the operating losses, player signings and capital expenditure, the company issued shares for cash amounting to £3.05million.
Capital expenditure was down on last year's very significant outlay but still amounted to just short of £300k. Among the major items targeted was the completion of the stadium-wide IT and network upgrade, pitch frost covers, upgrades to the Legends Lounge, EPC pitch improvements and the fit-out of the new catering concessions zone.
Transfer fees for players exceeded £400k during the year. This included fees for Ethan Erhahon, Danny Mandroiu, Dylan Duffy and Jay Benn as well as contingent payments for players signed in previous years. Also included was a fee for Reeco Hackett, signed on the opening of the 2023/24 summer transfer window on 14 June and therefore falling within the current financial year.
Cash at the year-end increased to £1.7million with nearly £0.9million of that ring-fenced towards the Stacey West redevelopment. Net assets were higher by £0.4million at £2.9million. The increase in long term creditors was attributable to the receipt of capital grants for the Stacey West project. Bonds previously issued to fans for various capital projects continued to mature and in excess of £100k was repaid during the year. Outstanding bonds at year end, including for the Stacey West project, amounted to approximately £800k.
FUTURE DEVELOPMENTS
The £2.6million Stacey West Community Hub development commenced in May 2023 and is anticipated to be completed in May 2024. The two-tier development will see the club develop its infrastructure and increase its social impact in the community, working in partnership with Lincoln City Foundation and other community groups.
The club has invested significantly in infrastructure upgrades as part of this project - most notably mains water, power and a pitch water recycling system. The application to trial safe-standing was also successful and the LNER Stadium now boasts a safe standing section in GBM U7, and is exploring plans to expand standing options in other areas.
Investment also continues into the University of Lincoln Fan Village and other concession areas, as well as the ongoing improvement of facilities at the Soper of Lincoln EPC.
Click here to view our accounts for 2022/23.
Tickets for City’s AGM - which is only open to shareholders - are now available and can be booked here, while tickets for our fans presentation and forum which follows the AGM can be booked here.