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The group that controls Wasps Rugby and the Ricoh Arena made a near £5m loss in the second half of 2019.

For the half year ending December 31, 2019, Wasps Holdings Limited reported a loss of £4.99m with the main contributing factor being a £2m fall in sporting income.

This is partly due to the four-week delay in the 2019/20 season kicking off due to the 2019 Rugby World Cup, which led to three fewer games being played than normal for the period, with Wasps' first Gallagher Premiership game coming nearly 50 days later than the previous season.

The consolidated senior debt (as of December 31) stood at £35.7m, compared to £37m in 2018. Owner Derek Richardson is also owed £18.3m from a loan provided to the club.

In the publicly available 'Wasps Holdings Limited consolidated interim financial statements for the half year ending 31 December 2019', there is a doubling of the repairs and maintenance expenditure from £284,000 in the same period in 2018 to £541,000 in 2019. This may be due to the Ricoh Arena pitch being resurfaced in August 2019.

Drop in wages

This expenditure is offset by a fall of nearly £1m in money spent on food, drink and bought in goods from £4.893m to £3.997m - and a fall in wages and salaries of nearly £660,000 (from £7.628m to £6.969m).

This could be a reflection of Wasps not retaining a number of high-profile players such as internationals Elliot Daly, Willie le Roux and Nathan Hughes.

While some big names were brought in, chiefly New Zealanders Malakai Fekitoa and Jeff Toomaga-Allen, the squad was largely bolstered by the promotion of eight Academy players to the senior squad. Between them, they have made 58 senior appearances this term with Jacob Umaga the shining light, earning an England call-up and helping inspire Wasps to fifth in the Gallagher Premiership.

Forward Thibaud Flament has also made 16 senior appearances, despite still being a part of the club's Academy.

The £4.99m loss in the half-year ending December 31 2019 is similar to the £4.922m loss from the same time period to December 31 2018.

Building a surplus

Turnover decreased by £1.9m (11%) to £14.4m on the previous half year, split between Wasps (£6.5m), ACL (£0.9m) and events company IEC Experience Ltd (£7m).

Gross margin (net sales revenue minus its cost of goods sold) has increased by 1% to 23%, with savings on wages and food and drink outgoings a key factor.

(Image: David Howlett)

Adjusted operating loss before depreciation, exceptional items and profit share allocation decreased by £200,000 to £1.8m.

A summary from Wasps deputy chairman Nick Eastwood in the statement outlined the group's financial performance.

"The Group continues to generate its income principally from rugby and netball matches, hospitality, sponsorship, central rugby revenues, hotel, conferences and exhibitions. The income generated covers operating costs, with a view in the medium term to building a surplus to continue to invest in new facilities and grow the business and brand organically. The utilisation of the facilities remains paramount to the Group.

"The Group continues to establish a solid and stable foundation and will seek to build on these in future years, including further investment in the rugby and netball teams, community engagement and customer focused improvements to the Ricoh Arena. This includes continued engagements with new fans, businesses, clubs and schools. Our overriding aim remains to challenge for honours in the Gallagher Premiership, European Cup and Netball Superleague, underpinned by a successful business model at one of the UK’s leading multi-purpose venues."