Newport County: FA Cup run helps Exiles record a profit
Newport County made a profit for the 2017/18 period thanks to their FA Cup run last season.
The League Two club also expect to announce a profit for this season after surpassing their previous success in the FA Cup by reaching the fifth round.
The Exiles, however, admit their FA Cup success prevented losses of £350,000, with the club reporting a profit of £82,680 for the year up to June 2018.
County say they will adhere to a "strict budget" for next season.
The FA Cup success was transformative for Newport, who made a loss of £351,456 during the 2016-2017 season.
The Exiles made around £750,000 from their run to the FA Cup fourth round in 2018 and should see that figure increase this term having hosted Leicester City, Middlesbrough and Manchester City in televised matches.
However, an increase in the cost of playing at Rodney Parade of over £200,000, as well as costs relating to the cup run and to their youth academy limited Newport's profits.
A statement from the club read: "Newport County AFC has published its annual accounts for the year ending June 2018.
"The accounts show the club made a profit for the year, thanks largely to its run to the fourth round of the FA Cup, which ended in a replay defeat against Premier League Tottenham Hotspur at Wembley.
"County's turnover increased by £906k compared to 2017 primarily as a result of the cup run.
"Without this additional income the club was on course to suffer a further loss of £350k for the year.
"Operational and other costs incurred as a result of the FA Cup run were £264k and stadium and pitch-related costs increased by almost £203k compared to the previous year.
"The net profit for the year after deduction of these and other costs was £82k.
"The Junior Academy was incorporated into the club during the financial year."
In assessing that the Exiles can continue operating as a going concern, auditors HSJ said the club "are looking to reduce unnecessary costs."
"During the 2017/18 season, the club experienced improved performances on the field which included a successful FA Cup run and resulted in a profit for the year ended 30 June 2018.
"The board have prepared financial forecasts for the year ended 30 June 2019 and following the successful FA Cup run again by the club in this years' competition and with the likelihood of remaining in the Football League, the board anticipate the club will again make a profit for the coming financial period.
"The board have also prepared strict budgets for the 2019/20 season with a view to reducing unnecessary costs and increasing revenue streams into the club."