Cape Town - The South African Rugby Union (SARU)
have made a small operating profit – exceeding forecasts – in a very difficult
economic environment, they have announced on Tuesday.
SARU reported a group profit before
taxation of R6.6 million for the year ended December 31 2014, R5m ahead of
budget and the fourth successive year of profit.
A deferred taxation charge of
R4.7m resulted in after tax profit declined to R1.9m.
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
"It was the
fourth successive year of surplus for our organisation – the longest
consecutive surplus period in the past 22 years."
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 8% increase in
sponsorship revenue, while group operating expenditure increased by a modest
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 11:00 at the Newlands
Southern Sun on April 1.