By Simon Gilbert, Coventry Telegraph
February 25 2015

...show a £4m operating loss.

Premiership rugby club Wasps have filed their latest set of accounts which show the club made a £6.3million profit last year.

But the accounts, which cover the year up to June 2014, also show the company traded at an operating loss of £4million.

The overall profit resulted from Canmango, a company previously owned by Wasps director Derek Richardson, being absorbed by Wasps. That meant £10.6million was added to the balance sheet and offset Wasps’ losses during the previous 12 months.

Wasps’ actually turned over £6.5million, but that was swallowed up by costs of £8.5million. The accounts also showed the company had liabilities of £7.9million at the end of the year.

Notes in the accounts emphasised that Mr Richardson had previously made an £8.5million loan to the club, but he had “no intention” of calling that in during the next 12 months.

Other loans feature in Wasps’ accounts including a £2.5million loan from Close Leasing Ltd - a corporate lender which is part of the Close Brothers group.

There was also a £415,000 interest-free loan from former owner Steve Hayes.

Figures in the accounts show the company has £25.8million of recorded losses which it can use to against future profits to offset any tax liabilities.

Figures in the accounts also reveal that the club spent £5.8million on wages for its 61 players and 46 management and administration staff.

London Wasps Holdings is owned by immediate parent company Moonstone Holdings, a company registered in Malta. The ultimate parent company is MGI Fiduciary Services Ltd, a company also registered in Malta and controlled by Mr Richardson.

The latest accounts cover the period before Wasps took control of Ricoh Arena operating company for a total of £5.54million in November.

As part of that deal, Wasps made an initial £1million down payment on a £14.4million loan to ACL from Coventry City Council.

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