Page 29 - RFU Annual Report 2018

2
FINANCIAL REVIEW

7

Creditors falling due after one year
increased by £39.1m, from £86.7m to
£125.8m, due to an increase in borrowing
of £10m, and an increase of £31.8m in the
value attributed to the RFU’s obligation
to buy back the Compass Group PLC’s
40% share in TEL in 2028. This is
described in more detail in note 3.

The net pension liability of £3.0m
reported in 2017 moved to an asset of
£2.5m in 2018 primarily as a result of
updates to salary growth assumptions
and an experience-based change in
commutation assumptions.
Debentures increased by £6.2m, from
£213.0m to £219.2m, due to the sale of
upgrades to existing debenture holders
relating to the new East Stand facilities.
The other reserve increased by £33.2m
reflecting the increase in the RFU’s
obligation to buy back Compass Group
PLC’s share in TEL in 2028.

The profit and loss reserve increased
£6.6m in year from £18.5m to £25.1m. The
main movements in the reserve were
the £30.9m loss for the year, the £31.6m
gain on the purchase and resale of TEL
shares, as well as the improved pension
position.

This £25.1m is consistent with the RFU
reserves policy and leaves the RFU in a
good position to manage the variability
of the four-year Rugby World Cup match
cycle going forward and the challenges
in our future outlook.

Annual
Report
2018