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Professional rugby region the Ospreys has posted pre-tax losses of £511,000.

However, the Liberty Stadium-based club, for the 2015-16 financial year, increased revenues by more than £700,000 on the previous year to £9.1m - helped by commercial activity ( up 7%) and a small rise in ticket sales.

The pre-tax losses, compared to a profit of £149,00 a year earlier, were impacted by one off exceptional items totalling £382,661, including bad debt provision for £213,000 owed by a commercial sponsor.

On a more meaningful comparative measure of operating profit. the Ospreys made a loss of £73,252, compared to a profit of £226,831 a year earlier.

Staff costs - it had a total workforce of 133 of which 61 were players for the year - were up more than £500,000 on the previous year from £5.5m to just over £6m.

Total running costs were up just over a £1m to £7.3m.

In the current financial year the club is forecasting another small operating loss.

Its chairman Roger Blyth said the professional regions in Wales continued to face the challenge of the increasing financial muscle of clubs in England and France, while clubs in Ireland, Scotland and Italy, were receiving more backing from their respective governing bodies.

Ospreys financial accounts for 2015-16 £9.1m Turnover £511,361 Pre-tax losses £6m Staff costs Ospreys financial accounts for 2015-16

A number of leading Welsh businesses, such as Symltech, Ledwood and Morganstone, entered into partnership with Ospreys Rugby during its last financial, while OSTC extended their front of shirt sponsorship.

Ticketing revenue saw a small increase over the period, despite the first part of the season clashing with the Rugby World Cup in England.

The Ospreys said the decision of the Guinness PRO12 not to delay the start to the season impacted significantly on crowds across the competition in the opening seven weeks of the season, with teams weakened considerably by the absence of international players.

Mr Blyth, said: “As was predicted in the 2014/15 report, this year proved to be a challenging one for the business.

"In particular, the Rugby World Cup had a major impact on all areas of the business and, although there were robust plans in place to deal with the specific challenges a World Cup year brings, its impact was felt in several ways.

“The combination of improved off-field performance and continued tight financial management meant that the business continues along the path we’ve been on since 2012.

"We are projecting a similar outcome for 2016/17 with the business operating at close to break even.

“While we continue to grow our own revenue streams, the ongoing financial imbalance in the game continues to have an effect. English and French clubs continue to enjoy the benefits of lucrative broadcast and commercial deals while, within the PRO12, our Irish, Italian and Scottish counterparts benefit in terms of greater governing body support.

“As such, we continue to be in regular dialogue with various parties, including the WRU, to secure replacement and additional long-term funding and remain hopeful that these discussions will help produce a positive outcome for the business.”