Directors at Newcastle Falcons rugby club remain optimistic about the long-term prospects of the business despite seeing its operating loss widen to £3.6m.
The club, which operates as Newcastle Rugby Ltd, has filed accounts for the year ended June 30 2014 in which its losses slipped £508,0000 and 16% further into the red on the previous year.
The pre-tax loss also grew from £3.37m to £3.89.
Yet the firm said its key performance indicator of turnover, which rose by 5% to £6.12m, gave it cause for confidence.
The club’s wage bill increased substantially over the year, from £5.11m to £5.42m, as new staff joined, taking headcount to 207 to 246, with 29 new people joining the bar and catering division and eight joining the playing and coaching staff.
In a strategic report for the year, director Semore Kurdi said: “The directors consider the loss on ordinary activities before taxation to be satisfactory in the light of current trading conditions.
“Turnover has increased by 5% to £6,126,858. The directors consider the key performance indicator to be satisfactory in light of current trading conditions and are optimistic about the long term prospects for the continued growth of the business.”