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Wasps have filed their first annual accounts since the move to the Ricoh Arena - and they show the club has slashed its operating losses from £4million to £2.4m.

The accounts, which cover the 12 months up to June 2015, also show a dramatic increase in turnover - rising from £6.5m in 2014 to £21.4m in 2015.

Roughly six months spent as Adams Park, in Wycombe, is covered by the accounts with the club not playing its first game in Coventry until December 2014.

The turnover included £8.9m from Wasps, £2.4m from Ricoh company ACL and £10.1m from IEC Entertainment - the events company which is owned 77 per cent by ACL and 23 per cent by catering firm Compass.

Higher operating costs came with the move to the larger venue and the club saw an increase in this area from £8.5m to £16m.

The company’s debt stood at £30.7m in the 2015 accounts with net debt at £27.2m - up from £11.4m previously.

What do Wasps say?

David Armstrong, Wasps chief executive, described the move to the Ricoh Arena as “transformational” in his annual report.

He said: “This set of results includes the first five months of the year prior to our move at Adams Park where we played as a tenant and were losing money. This contributed to the group operating loss of £2.4m.”

He added: “However, the move to Coventry is a defining moment in Wasps’ history. The opportunity that we now have following the acquisition is second to none and provides us with financial stability to underpin our sporting ambitions to challenge for honours in both the Aviva Premiership and European Champions Cup with a solid business model and to cement our unique position as one of the UK’s leading multi-purpose venues for business, sport and entertainment.”

Wasps announce Ricoh move

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What’s covered in the accounts?

The 12 months up until June 2015 - a period which saw Wasps based at Adams park in Wycombe until their first game at the Ricoh Arena in December 2014.

The accounts show where money has come into, and left, the business during this period.

How much debt are Wasps in?

The group’s consolidated debt is listed in the annual accounts as sitting at £30.7m. That was entirely made up of the £30.7m owed to Wasps Finance PLC, a bonds scheme which raised £35m for the club.

There was also a £9.3m owed to owner Derek Richardson, via his firm Moonstone Holdings, less a cash balance of £12.3m - leaving net debt standing at £27.7m.

What have Wasps done to tackle the debt?

The bonds scheme raised £35m for the club in six days and allowed other loans to be repaid - including a £14.4m loan to Ricoh Arena operating company ACL from Coventry City Council.

However, the move means Wasps now has to pay out £2m in annual interest to investors with the total due to be repaid in 2022.

As well as the ACL loan, a £2.5m bank loan and a £10m loan from owner Derek Richardson were also repaid.

The cash balance of £12.3m was earmarked for the development of the Hilton hotel, funding new investments and working capital which should help increase income in the long term.

Wasps arrive at the Ricoh

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Where is the money coming in?

The turnover of £21.4m included £8.9m from Wasps, £2.4m from Ricoh Arena business ACL and £10.1m from events company IEC Entertainment.

IEC’s revenue is up 48 per cent year on year since acquisition by Wasps. That company is owned 77 per cent by Wasps/ACL and 23 per cent by Compass.

Compass extended their agreement by 15 years during this period which meant a further £8m was ploughed into the business.

Any other highlights?

Wasps were granted an extension to the Ricoh Arena lease from 50 years to 250 years as a result of the deal to secure ACL.

The Ricoh Arena was given a value of £48.5m.

The club’s premiership rugby shares were valued at £9.7m.

Average attendance of 11,401 was up 29 per cent from 8,846 in the previous year.

Ticket income was up 42 per cent on the previous year.