Monday, September 29, 2014

News: Promotion hits profits at ASD

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ASD Lighting Holdings Limited, the holding company for Rotherham lighting manufacturers, ASD Lighting, and Rotherham United Football Club has released its financial results for 2013, with the club reporting a loss of £477k despite success on the pitch.

ASD is owned by Rotherham United chairman Tony Stewart (pictured) who saved the club in 2008. 2013 was another momentous year for the Millers which saw them promoted to League One in their first season in their new £20m New York Stadium, and embark on a second successive promotion season which culminated in a dramatic playoff win at Wembley in May 2014.

The latest financial results for the Barbot Hall manufacturer showed that pre-tax profits were £2.8m in the year ending 31 December 2013, down from £3.7m in the previous year.

ASD has had unrivalled success in the LED market and continues to develop new outdoor lighting systems. Turnover for the lighting business was £20.2m, down from £21.4m in 2012.

In the same period, the football club posted a pre-tax loss of £477k, compared to a small profit of £29k in 2012.

With the new financial fair play rules introduced in the Football League, which limits spending on total player wages to a proportion of each club's turnover, Rotherham United's turnover increased from £4.3m in 2012 to £5m in 2013.

In the Championship, the Millers' current division, clubs have agreed to introduce a breakeven approach that requires clubs to stay within pre-defined limits on losses and shareholder equity investment that will reduce significantly over the next few seasons.

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The latest accounts show that ASD's sponsorship deal with Rotherham United is now worth £2m, up from £1.5m the previous year. ASD Holdings also loaned £7m to RU Estates Ltd, the company created to bring forward the development of the stadium.

For the financial years when Rotherham United are in the Championship they can expect turnover to be double that of League One, largely due to multi million pound TV deals and solidarity payments from the Premier League, but also due to increased crowds, matchday revenue and commercial deals.

With Tony Stewart as chairman and his son, Richard Stewart, as vice chairman, the football club's board contains experienced directors who also have senior roles at ASD Lighting.

Stewart saved The Millers in 2008 when he brought them out of administration via a Creditors Voluntary Agreement. His chairmanship has provided stability and investment, and his appointment of Steve Evans as manager has added to the "adventure" which sees them playing former Premier League champions and European Cup winners in the second tier of English football.

The chairman was recently admitted as an Honorary Freeman of the Borough in recognition "of his eminent service to the sport of football and his long and friendly association with the Rotherham Borough."

ASD Lighting website
Rotherham United website

Images: themillers.co.uk

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