Club Statement – Annual Accounts
As we publish our annual accounts on Companies House for the accounting period from 1st May 2023 to 30th April 2024 , we would like to take this opportunity to provide a supportive commentary to the published financial documents.
When the current board assumed responsibility for the club in late February 2023 (and as outlined at the AGM earlier this year), the club encountered significant financial hurdles, many of which were beyond any direct control. Like many other clubs, BRFC faced challenges as energy costs doubled, and insurance premiums for Shielfield Park rose sharply following substantial structural damage caused by Storm Arwen.
Further compounding these issues at the time was the loss of commercial partnerships, including kit partners, as they themselves ran into cost challenges. As the club headed into the 23/24 season, sponsorship needed to be re-contracted. Additionally, the playing squad was largely comprised of players in the second year of two-year contracts, limiting financial flexibility given this predetermined contractual spend.
Despite best intentions, as is the case in football, challenges can come and go, and pre-season injuries to key players forced the club to make unplanned signings before the campaign even began, adding to the financial strain. Despite careful planning, it became apparent that, without intervention, the club would face a cash shortfall by November 2023. At this time, a number of management actions were executed to ensure the club could continue to operate.
The period that led to November 2023 was challenging. Unfortunately, the early results did not go as hoped, with two losses and a draw in our first seven days of competitive action. Matters were further complicated by a challenging series of away cup fixtures, including a costly trip to Brora, and a subsequent 10-week period without a home match.
Faced with these challenges, the board had to make some very difficult decisions to safeguard the club’s future. While its acknowledged that not every decision had the desired impact, all at the club worked tirelessly to ensure that all players, suppliers, and staff were paid, and the club successfully navigated its way to the end of the season. This was only made possible through the dedication and efforts of all at the club, including at the time, new manager Thomas Scobbie, and the financial support of members of the board, who stepped in to fill the gaps when required.
Heading into the current season (24/25), the board, in partnership with Thomas Scobbie, made the conscious decision to operate with a reduced playing budget, focusing on managing costs to stabilise the club financially. Whilst not quite delivering the desired operating result in this set of accounts (a cash loss of -£116k) the goal remains to achieve a break-even or profit-making position next season while maintaining competitiveness in the Lowland League.
Unfortunately, early-season injuries to key players (including at one point having 12 players out of action) have once again tested the club’s resolve. However, the management actions put in place the year before are now coming to fruition, and this results in a significantly more positive financial position when looking at a year-to-date comparison. The club is stabilising, but the journey is far from over, and we continue to need the incredible support of the fans now more than ever.
It can be assured that the board is working tirelessly to bring new ideas, opportunities, and investment to Berwick Rangers – most recently welcoming Chris Butler to the team is one example of this. Re-defining the club’s operating result takes time, and forecasts project a much reduced financial loss in the next accounting period and provide a line of sight to a break-even environment soon after, successive losses of £115k and £116k warrant the interventions made in November 2023 and with these the club is on course to cut the loss by between £80k – £100k for the next accounting period.
All involved at BRFC remain committed to securing a bright and sustainable future for Berwick Rangers.
Thank you for your continued support.
Berwick Rangers FC
Board of Directors
