WELSH RUGBY UNION LIMITED ANNUAL REPORT 2003-2004

CYMRU AM BYTH WALES FOREVER 

WELSH RUGBY UNION LIMITED 

ANNUAL REPORT 2003-2004


Support 

Passion 

Innovation 

Respect 

Inspiration 

Teamwork

WELSH RUGBY UNION LIMITED ANNUAL REPORT 2003-2004 

Contents 

Officials of the WRU 

Officials of the WRU 3 

Chairman’s View 5 

Chief Executive’s Report 7 

WRU General 

Manager’s View 9 

Commercial Report 11 

Millennium Stadium Report 13 

Financial Report 14 

Review of the Season 16 

Obituaries 30 

Accounts 33 

Welsh Rugby Union Ltd 

1st Floor, Golate House 

101 St. Mary Street 

Cardiff CF10 1GE 

T +44 (0) 870 013 8600 

www.wru.co.uk 

Registered in England & Wales 

Registration No: 3419514 

Patron 

Her Majesty Queen Elizabeth II 

President 

The Right Honourable Sir Tasker Watkins VC, GBE, DL 

Board Members of Welsh Rugby Union 

David Pickering 

Chairman 

Kenneth Hewitt 

Vice Chairman 

David Moffett 

Group Chief Executive 

Mal Beynon 

Martin Davies 

Geraint Edwards 

Humphrey Evans 

Brian Fowler 

Roy Giddings 

Russell Howell 

Peredur Jenkins 

Anthony John 

Alan Jones 

John Jones 

David Rees 

Gareth Thomas 

Howard Watkins 

Ray Wilton 

WRU Executive Board 

David Moffett 

Group Chief Executive (Chairman) 

Steve Lewis 

General Manager WRU 

Paul Sergeant 

General Manager Millennium Stadium 

Gordon Moodie 

Group Finance Director (interim - resigned) 

Gwyn Thomas 

General Manager Commercial and Marketing 

Martyn Rees 

Administration Manager 

Directorate of Rugby 

Terry Cobner (Director of Rugby - retired July 04); Steve Hansen (National Coach - Feb 02 - May 04, 

replaced by Mike Ruddock); Mostyn Richards (Player Development Manager); 

Leighton Morgan (Coach Development Manager); Rob Yeman (Director of Match Officials) 

Principal Sub Committees 

Finance Committee 

Martin Davies (Chairman), David Pickering, Kenneth Hewitt, David Moffett, Humphrey Evans, 

John Jones, Group Finance Director 

Regulatory Committee 

Russell Howell (Chairman), Mal Beynon, Geraint Edwards, Alan Jones. Brian Fowler, Steven Lewis, 

John Owen, Ray Wilton 

Game Policy Committee 

David Rees (Chairman), Roy Giddings, Roger Thomas, Gareth Thomas, Howard Watkins, Peredur Jenkins, 

Anthony John, Steven Lewis, Chris Jones, Mike Farley, Rolph James 

International Rugby Board Representatives 

David Pickering, David Moffett 

Six Nations Committee Representatives 

David Pickering, David Moffett 

ERC Representatives 

David Moffett, Stuart Gallacher 

Board Members of Millennium Stadium plc 


Chairman 

David Moffett 

Cllr Russell Goodway 

Byron Davies 

Lord Faulkner of Worcester 

Helen Conway 

Stella Mair Thomas 

Ken Hewitt 

Mal Beynon 

Martin Davies 

Geraint Edwards 

WRU Chairman David Pickering (right) shaking hands 

with Group Chief Executive David Moffett after 

extending the GCE s contract to 2008 

3


Try time for Rhys Williams as the ‘Welsh way’ returns


Chairman’s View 


Chaiman, WRU 

“Traditional 

Welsh flair 

re-emerged 

at the 2003 

Rugby World 

Cup” 

Of all the things that happened in Welsh rugby over the past year, the most significant in my view was the re-discovery of the 

Welsh way of playing. Traditional Welsh flair re-emerged at the 2003 Rugby World Cup in Australia and three billion viewers 

around the globe marvelled at the way the likes of Shane Williams, Gareth Thomas, Stephen Jones, Sonny Parker and 

Mark Taylor created space and tries against teams of the calibre of New Zealand and England. 

That style was carried into the RBS Six Nations and, with a Welsh coach back at the helm of the national side after six 

years under the expert guidance of New Zealanders Graham Henry and Steve Hansen, everyone in Wales is expecting more thrills 

from Mike Ruddock's men. The gutsy and stylish performances of the national team brought more fans through the turnstiles to 

watch them and that meant an extra £1m gross revenue from our three championship matches. More of the same will be needed 

from the fans in the years to come if Wales' national sport is to flourish, with greater support urgently required at regional level. 

Everyone recognises that Test rugby is the commercial engine of the game, but the four regional sides need to improve their 

financial positions to compete at the very highest level on the Celtic and European stages. 

The WRU Board of Directors has recognised the support required at the professional end of the game. That's why the 

regions were given £7.5m worth of funding last season and the national side have had their facilities improved. As well as the 

state of the art training centre used by the national squad at the Vale of Glamorgan Hotel, we are also in the process of creating 

four regional centres of excellence for our regional sides. The National Assembly, through the Sports Council for Wales, have 

backed our plans with a £3m grant and the benefits will be felt by players of all ages once our ambitious National and Regional 

Academy structures are fully operational. 

We have also secured a vibrant Test fixture schedule through to 2012 and we have signed some long-term broadcast 

and sponsorship deals. Add to that a superb deal struck with the French to host four games, including a quarter-final, in the 2007 

Rugby World Cup, and it is easy to see why everyone in Welsh rugby should be up beat when looking to the future. 

Off the field, I have been delighted with the way in which the 18-man WRU Board of Directors have taken tough and 

often unpopular decisions as they continue to act as the guardians of our game. Their collective leadership and rugby pedigree has 

proved invaluable in providing the framework and policy for the new Management Team to act on. David Moffett, the WRU Group 

Chief Executive, has followed their lead and offered the strong, committed, no-nonsense management Welsh rugby has been 

crying out for. You only have to look at the increase in income and savings in expenditure that have taken place over the past year 

to see how valuable David's contribution has been. That's why the Board of Directors unanimously agreed to extend his contract to 

2008, which means he will be in position to oversee the Union's 125th birthday celebrations in season 2005/2006 and Wales’ 

challenge at the 2007 Rugby World Cup. David has also been able to bring out the best in his management team - WRU General 

Manager Steve Lewis, Millennium Stadium General Manager Paul Sergeant, WRU Group Commercial and Marketing General 

Manager Gwyn Thomas and WRU Group Finance and Administration Manager Alan Hamer - and I am happy to report that the 

governance and development of our game has never been in better hands. We now have strong management at every level, true 

strategic direction and financial stability. 

Not that we are out of the woods on the financial front just yet. The debt on the Millennium Stadium is still causing 

concern and stands at a level that nobody ever envisaged when we were formulating plans to replace the old Cardiff Arms Park. 

Our approach to resolving the problem has been to meet it head on. Much of the last year has been spent in discussion with our 

bankers, Barclays, and BT, to whom we still owe more than £10m, about our financial position and we remain confident of being 

able to provide some encouraging news on that front in the near future. 

It has been a year of change from top to bottom in Welsh rugby and I have been heartened by the way everyone has 

shared the pain and taken change in their stride. The professional game has a great opportunity to move forward at a rationalised 

regional level, the signs are there for all to see that the international team is capable of rising even further up the world rankings 

and the community game is starting to flourish again. 

There is a lot of hard work ahead of us all, from the small army of coaches and administrators who superbly service the 

needs of the game to the highly paid professionals at the top end, but there is so much to look forward to. The Tri-Nations 

champions South Africa will be joined by the All Blacks in coming to Cardiff in November and then we have the world champions 

England at the Millennium Stadium at the start of the RBS Six Nations. That will be a great way to kick-off the 'Cardiff 2005' 

celebrations, when our close friends at the local authority will be celebrating 100 years of city status and 50 years as the Welsh 

capital, and then we will move into the 125th anniversary season of the WRU. 

David Pickering, WRU Chairman 

5


Driving Welsh rugby forward - Gareth Thomas at his best


Chief Executive’s Report 

David Moffett 

WRU Group 

Chief Executive 

“If the past 

12 months 

have been 

hard, then 

the next year 

is going to be 

vital for 

professional 

rugby in 

Wales” 

It has been a painful few years for Welsh rugby as it has been forced to adapt and change in an attempt to climb out of the 

financial mire. But the changes we have introduced have allowed the game to look forward to the 2004-05 season and 

beyond with a solid platform for stability and good reason for optimism. 

I've always been an advocate of the 'no pain, no gain' syndrome, but an organisation can endure that amount of pain for 

only so long. Now is the time to concentrate on the game itself - the community game and the professional game, because 

without the former, we wouldn't have the latter. 

In the past two years, we have streamlined community rugby and most clubs seem happy with the new systems. As well, 

the semi-professional tier is ready to build on its highly promising debut season and move further down the road in trying to 

emulate such world-leading competitions as New Zealand's NPC tournament and South Africa's Currie Cup. 

Professional rugby has been condensed to four regions and I stand by something I said 18 months ago - four regions are as 

many as Welsh rugby can sustain, for both player-resource and financial reasons. 

The demise of the Celtic Warriors earlier this year has been the cause of angst and concern among fans but I am convinced 

the right decision was made in the best interests of Welsh rugby as a whole. And the four remaining regions have given the 

Union cast-iron assurances that they will ensure that no rugby fan in Wales is left feeling disenfranchised. 

If the past 12 months have been hard, then the next year is going to be vital for professional rugby in Wales. Quite simply, 

it needs the support of the fans to succeed and flourish. 

Financially, we are working with Barclays Bank and BT on restructuring our debt. At the time of writing, there is nothing 

concrete to announce, but progress has been made and I hope to have further information available at the AGM in September. 

The deal we are fashioning will put the WRU Group on a firm financial footing, but will not allow us to return to the heady days 

of "spend, spend, spend". 

Three issues I want to raise are the paying of "amateur" players, the Celtic League and the ticketing system used for Test 

matches. Welsh rugby simply cannot sustain the paying of players in the lower divisions. It is financially untenable and it is up to 

the individual clubs to put a stop to a practice that is hurting the game. 

The Celtic League is vitally important for rugby in this country. We have to take it seriously and we have to encourage 

Ireland to take it seriously. If the Celtic League is to go head-to-head with the Zurich Premiership, the Irish Rugby Football Union - 

in particular - have to get on board. 

As for the new ticketing system we introduced for international matches last season, it helped to provide us with an extra 

£1m in revenue from our three RBS Six Nations matches by increasing attendances at the Millennium Stadium. However, if that 

was proof of the positive financial effect the new rules can have, it has to be said the take-up by clubs for the four 2004 Lloyds 

TSB Autumn Internationals is far from satisfactory and a source of concern for the Union. If we don't fill the Millennium Stadium, 

it affects the Union's finances and therefore the clubs' finances. 

On the field, 2003-04 will be remembered as the season when Wales regained their rightful place at the top table of world 

rugby - and traditional Welsh flair returned. 

After two heavy losses on the summer tour Down Under and several mixed performances in the World Cup buildup matches, 

even Welsh fans - the best in the world - began fearing the worst as Steve Hansen and his men went to Australia to strut their 

stuff on the international stage. 

What was to follow was a just reward for the huge amount of work that Steve, his assistants and - most importantly - the 

players had put in over the summer and spring. Our performances against firstly New Zealand and then eventual champions 

England made the rugby world sit up and take notice of Wales. With an ounce or two of luck, we could have won both games. 

The World Cup set Wales up beautifully for a successful Six Nations campaign, and while our final position on the table 

wasn't as high as we would have liked, a lot of confidence could be taken from our performances against World Cup holders 

England and Grand Slam winners France. 

We need to complement our improvement on the field with a solid, positive financial structure off it. With help from the 

clubs, we feel we are well on our way to achieving that. 

David Moffett, WRU Group Chief Executive 

7


The Welsh Premiership is a vital breeding ground


WRU General Manager’s View 

Steve Lewis 

WRU General Manager 

“Responsibilities 

handed to the 

four Regions 

are massive” 

After a year of almost unprecedented change to the shape of the game in Wales, Welsh rugby is set to reap the benefit of its 

new streamlined approach. Just as a coach relies on good organisation of his team on the field, so the WRU requires a 

rational framework for its clubs, players, coaches and supporters to work within. Much of the work that has been done over 

the past year has been geared to giving greater clarity and direction to all parts of our game. The move from five to four Regions 

meant we had to revamp our plans, but we believe the new boundaries we have introduced have brought much needed clarity to 

the development structure for the next generation of Wales stars. 

Now every club knows where it fits into the greater scheme of Welsh rugby and, perhaps most importantly of all, there 

is a clear and concise pathway for youngsters to become professional players and reach the top. They now have a clear route to 

the top and know who is going to support them along the way. 

The job of redefining the borders of Welsh rugby has been carried out by the Rugby Directorate and now means we fit 

into the Unitary Authority boundaries across the country. No longer will there be any conflict for the services of players at any age 

level - everyone will know who they are eligible to play for. 

The responsibilities that have been handed to the four Regions are massive. They are at the top of a playing and 

developmental pyramid that makes them the guardians of the game in their Region. Their individual Academies will nurture the 

young talent available to them and, it is hoped, provide them with a stream of young professionals for future years. Just beneath 

the professional sides lies the vitally important Welsh Premier Division. This had an encouraging first season and is all set to 

become the breeding and proving ground of the next generation of professional players. While the Premiership feeds into the 

Regional sides, so the Lloyds TSB National League feeds into it. While the WRU membership has grown to 242 clubs, it is also 

very encouraging to report that the game in Wales is bucking the global trend and showing a rise in playing numbers. The National 

Audit we undertook in 2002/2003 showed an upward turn in participation at schools and youth levels. We also saw growth in 

the number of qualified coaches and referees. The next audit is due to take place shortly and we are expecting to see further 

encouraging signs of growth in our national game. 

The rationalisation of the game at all levels beneath the four Regions should have a positive impact on the growth and 

development of rugby across the length and breadth of Wales and it is vital that we strengthen our playing base. The high 

performance, professional end of the game is being well serviced and catered for with £7.5m worth of funding from the WRU, a 

tremendous competitive structure and massive media exposure. And the semi-professional Premiership is developing into a natural 

breeding ground for aspirational players. The challenge to the rest of the clubs in Wales is to fully understand their roles and duties. 

It is the WRU's view that the teams in the Lloyds TSB National League should return to their long standing amateur status and 

service the needs of their communities, rather than handing out payments to players. Success at this level should be judged not 

merely on league status and results, but on the quality of facilities, playing numbers, membership and the opportunities for Under 

19 players. 

The network of development officers built up in partnership with so many local authorities around Wales continue to do a 

vital job in spreading the rugby gospel and giving direction to the game at junior level. Terry Cobner, who retired from his role as 

the Union's Director of Rugby in July, was instrumental in creating that system and should be thanked for his innovative work over 

the past eight years. His department has also created a coach education programme that is fast becoming the envy of the world 

and his blueprint for the Regional and National Academies will become increasingly important in the future. 

On the refereeing front, Rob Yeman and his department once again did a superb job in covering all games throughout 

the season. Nigel Williams and Nigel Whitehouse have been officiating at the very highest levels and are to be commended for 

their roles in the 2003 Rugby World Cup in Australia. 

The Affiliated Bodies continued their good work, much of which has become more hand in glove with the Union's own 

thinking and operation, and it was very pleasing to see the Welsh Women's team break new ground by winning a Test series in 

South Africa. 

Steve Lewis, WRU General Manager 

9


Cheers all round!


Commercial Report 

Gwyn Thomas 

WRU Commercial and 

Marketing General 

Manager 

“We are 

highly 

focused on 

customers 

and have 

much better 

relationships” 

It wasn’t just on the field that Welsh rugby moved forward in 2003/2004. The success of the national side in moving up the 

world rankings, allied to the re-shaping of our professional game, proved major catalysts for an increase in commercial activity. In 

fact, the past year has witnessed some of the most significant commercial activity the WRU has enjoyed for many years. The 

upshot will be a new look for the Welsh team from the 2004/2005 season onwards. The latest re-design of the national jersey by 

our kit manufacturers Reebok, who have signed a four-year extension to their deal with the WRU, will be revealed in time for the 

Lloyds TSB Autumn International Series. Not only will there be a new kit, but it will also have a new shirt sponsor. 

We have been working hard to create an environment in which Welsh companies would feel comfortable backing the 

biggest sporting team in Wales and by introducing Brains into Welsh rugby’s commercial portfolio as the new shirt sponsor we feel 

we have brought an even greater Welsh feel to the national jersey. 

The world renowned, Cardiff-based brewers have not only become the first Welsh company to pay to have their name on 

the Welsh jersey, but have also included pouring rights at the Millennium Stadium in their four year deal with the WRU. It means 

that Brains will be the “Official Ale” at the stadium, while our long standing lager providers, Coors, have extended their five year 

relationship. Guinness and Bulmers remain official suppliers of the stadium’s stout and cider and we will be looking to extend our 

deals with them before the end of the year. 

Seat, the official car suppliers to the WRU, have extended their deal with us for an extra 12 months and we also signed 

a four year deal with OneRugby to become our merchandise arm. We have created a range of products that have excited our 

business partners to such an extent that we have been successful in re-signing Gilbert, Eden Park, and WRU Travel Services in 

2004 and introduced new partners at differing levels such as Tesco, Masahi and Warburton’s. 

Our Corporate Partners have become key stakeholders in our business not only through their substantial investment, but 

also through their contribution to our Corporate Partners Steering Group. This group meets at regular intervals and enables the 

WRU to draw on the expertise offered by companies such as Reebok, Coca Cola, SEAT, COORS and the BBC. 

Every club in Wales has seen the benefit of signing a new title sponsor for the WRU Challenge Cup. We introduced Konica 

Minolta on a two year title sponsorship deal of the cup competition in November – they also have a four year service deal with the 

WRU on their product – and Neath proudly carried off the Konica Minolta Cup in May. The cup sponsorship sits alongside the three 

year deal struck with Lloyds TSB to back the National Leagues from Division 1 down. All that remains to complete the jig-saw is a 

sponsor for the Welsh Premier League. 

Much of the past 12 months has been spent creating a new commercial team and a new commercial culture at the 

WRU. We are now highly focused on our customers and have much better relationships all round. Our aim is to leave a legacy of 

trust, respect and transparency with everyone we deal with. While we are fiercely protective of our product, we have become far 

more inclusive in our approach to doing business with people. There is greater flexibility, more understanding and a stronger will to 

succeed. That is reflected in the large number of people who are extending their leases on the Millennium Stadium boxes and club 

seats, the new customers coming forward to take advantage of our expanded range of products in the hospitality market and the 

increasing number of businesses who are expressing an interest in becoming involved in Wales’ national game. 

We are leaner, meaner, wiser and far better conditioned on the commercial front than we were a year ago. The results 

prove that, although there is no room for, or any thought of, complacency creeping in. There is little doubt that the success of our 

teams at every level, International, Regional, Semi-Professional and Community, has helped to create a more positive environment 

to generate commercial activity in Welsh rugby. So, too, has the success of the Millennium Stadium. In the space of five years it 

has established itself as one of the greatest sporting arenas in the world and become vitally important to the Welsh economy as a 

whole. 

Can you imagine the modern Wales without its world class, world renowned icon. If the old Cardiff Arms Park was greatly 

loved and admired, it was but a park bench compared to the magnificence of the Millennium Stadium. All the hopes and 

aspirations the people of Wales harboured for the Millennium Stadium have been realised and, five years down the line, we have a 

much better rapport with, and understanding of, our customers and partners. We have tried to engage all our commercial backers 

and all our customers. The response from the public has been magnificent and the commitment shown by the people of Wales to 

Welsh rugby never ceases to amaze. Because of that passion and commitment we have been able to shape one of the strongest 

products in the market place. The success of the Millennium Stadium has had a huge impact on the Welsh Rugby Union, not 

merely in giving it a magnificent setting in which to stage its matches, but by considerably enhancing its profile. As a result, more 

and more businesses and people want to become a part of what is a market leader in terms of professional sport in Wales. 

In teaching they talk about the 3Rs. In marketing it is the 5Ps - PEOPLE, PRICE, PRODUCT, PLACE, PROMOTION - and by 

addressing the issues raised in those sectors in a professional manner we feel we have moved our business forward in the past year. 

Gwyn Thomas, WRU Commercial and Marketing General Manager 

11


Five years old - and in fantastic shape to move forward


Millennium Stadium Report 

Paul Sergeant 

General Manager 

Millennium Stadium 

“The Stadium 

has become 

synonymous 

with sporting 

excellence” 

It is said that in life there are lies, damn lies and statistics. What I want to do is give you some hard facts about the Millennium 

Stadium 18 months into my reign as General Manager and five and a quarter years into the life of one of the world’s greatest 

stadia. 

Since it opened its doors for business on 26 June, 1999, the Millennium Stadium has hosted 130 major events, 

attracted more than 6 million visitors and generated more than £1b worth of economic benefit to Wales. RBS Six Nations rugby, 

the FA Cup and Carling Cup finals, rugby league’s Powergen Challenge Cup, the British Speedway Grand Prix and Wales’ Euro 

2004 qualifying matches have all been staged at the ‘Home of Welsh Sport’ in the past year. 

Not a bad start for a project which was only made possible by the WRU member clubs voting to knock down the old 

Cardiff Arms Park and replace it with a building that has become the jewel in the crown of the modern Wales. 

The Millennium Stadium has connected with the people of Wales, and engaged sports fans across the world, in such a 

way it has become synonymous with sporting excellence. It has put Wales on the global map in a way it had never enjoyed 

before, considerably enhanced the reputation of its capital city and proved to the sporting world that the biggest and best events 

can be superbly hosted in Cardiff. 

The Millennium Stadium and Cardiff have built a great reputation in a small space of time, but so have the unsung 

heroes of the home of Welsh sport, the staff and stewards. It is a central feature of the positive feed back we receive from our 

clients that the welcome they receive, and the professionalism they witness, here in Cardiff is second to none. 

Much of the last year has been spent reshaping the business and upgrading facilities. Operationally we have tackled 

head-on some of the real bug-bears of the stadium since it opened, such as disabled seating and the pitch system. This has left us 

with a loss of £586,773 over the last financial year, but means we can now deliver what we are contractually obliged to provide 

and that we have the structures in place to not only deal with existing business, but also to actively pursue new events. 

Commercially we have brought the merchandising operation in-house, we have an agreement with one of the world's 

leading ticket agencies, Ticketmaster, and we are no longer tied to a single concert promoter. We have also built an excellent 

working relationship with our catering contractors, Letheby & Christopher, and it is my view that we are now in fantastic shape to 

move forward. 

We are generating more events, a number of which have been created by ourselves. The Neil Jenkins v Jason Leonard 

'Tribute to the Legends' rugby game and the 'Cardiff Capital Challenge' soccer match between Barcelona and Parma were prime 

examples of what we can achieve here at the Millennium Stadium. 

What will help in our new approach is the fact the Millennium Stadium won't be the only arena housed on the ancient 

site of Cardiff Arms Park from this year onwards. Thanks to a mixture of private and public finance an innovative, adaptable and 

much needed 'Shorthall Arena' will be created inside the Millennium Stadium through the purchase of a giant, roof to floor 

curtain. 

Letheby & Christopher have backed the new scheme to the tune of £500,000 and a further £460,000 has been 

provided towards the £1m venture by the Millennium Commission and the Wales Tourist Board. The curtain will open up a whole 

new range of possibilities and market for indoor business. There is no indoor arena between Cardiff and Birmingham or London 

capable of holding any more than a few thousand people. We have a catchment area that holds nine million people within a one 

hour drive of Cardiff and, with our new ability to offer an arena capable of holding anything between 12,000-35,000 people, we 

can now bid for a multitude of concerts, family events and new sporting experiences. 

There is little doubt that the closure of Wembley allowed the Millennium Stadium to establish itself as the No 1 sporting 

venue in the UK. Slowly, but surely, the new £700+ m Wembley is being constructed and is set to re-open in time to host the 

2006 FA Cup final. We've known that ever since we struck an agreement with both the Football Association and the Football 

League to stage their major club finals. The Millennium Stadium has provided both bodies with a fantastic venue to stage their 

most prestigious fixtures, but only on a temporary basis. 

So what happens when the FA Cup and Carling Cup finals, the Community Shield, the LDV Vans Trophy final and the 

Coca Cola Play-Off matches revert back to England? One thing is certain it won't be the disaster that has been predicted by some 

out of touch pundits. From our point of view, losing the seven events will free up 40 days in the calendar. The challenge we face 

is to improve the revenue streams we have enjoyed from hosting the seven English soccer events since 2000 by creating new 

events in those 40 free days. I am confident we can do that. 

We have laid a solid foundation for the future, but the hard work begins now. We still have a long way to go. 

Paul Sergeant, General Manager Millennium Stadium 

13


Financial Report 

Alan Hamer 

General Manager 

Finance and Administration 

“By offering 

tickets to the 

public at an 

earlier stage 

the game 

benefited 

as a whole” 

The results for the consolidated accounts of the WRU Group for the 2003/2004 period are for 13 months rather than the 

normal 12 following a change in year end date to 31 May. The figures reveal a net loss of £124,656 over the 13 months, 

compared with a loss of £2,599,195 during the previous 12 months. 

As in previous years' statements of accounts, the results of the WRU are shown separately on pages 34 to 38 and are 

then followed by the Consolidated Group Accounts on pages 41 to 57. 

The WRU is the holding company for Millennium Stadium plc and Coppergreen Ltd. Their results are included in the 

Consolidated Accounts, along with those of Gowerpark Ltd, trading as Neath RFC, up until that company was placed into 

liquidation in August, 2003. 

WELSH RUGBY UNION 

As far as the Welsh Rugby Union accounts are concerned, the financial position moved from a net loss of £3,781,822 in 

2002/2003 to net profit of £82,128 over the 2003/2004 period. Net assets at 31 May, 2004 total £2,897,596. 

In line with the demand of the Group Chief Executive to increase revenue streams, the Revenue Income in 

2003/2004 increased by £227,000 to £2,036,363. 

Although a number of commercial contracts ended during the period, I am pleased to report that they have been 

renewed on improved terms. We are also delighted to continue our strong relationship with Reebok and eagerly look forward to 

the Autumn Internationals when our new shirt sponsors 'Brains' will be included on the national jersey for the first time. 

Another significant boost during the year was provided by a grant from the International Rugby Board Trust as part of 

their continued support in helping with the development of the game throughout the Principality. 

There was also a rise in Match Income. This is especially important during the current climate of falling income from 

broadcast partners. While the increase was only just over £30,000 (£4,764,547 in 2002/2003 and £4,798,171) it was a 

move in the right direction and the clubs should be congratulated for the part they played in once again acting as important 

brokers in ticket sales in a year that saw a change in the overall sales procedure. 

In the end, the new policy enabled the WRU to post an increase of more than £1m in gross ticket revenues generated 

from the three home RBS Six Nations matches as compared with the comparable matches in 2002. The improved performances 

of the national team played their part in the increase, but so did the increased prices and the new system of marketing tickets. 

By offering tickets to the general public at an earlier stage, and in a more orderly fashion than in previous seasons, the game 

benefited as a whole. 

But while there was increased revenue from the RBS Six Nations matches, we lost out on the opportunity to generate 

income from the Autumn International Series due to the 2003 Rugby World Cup. Thankfully, this loss came in a season when we 

had three home games in the RBS Six Nations Championship, rather than two. 

We were able to promote two World Cup warm-up matches in August, but the revenue generated from the games 

against England and Scotland did not fully compensate for the loss of the Autumn Internationals. The return from the game 

against the Scots was particularly disappointing. 

Opting out of the IRB Sevens Series saved a significant amount of money over previous years, as did the suspension of 

'A' internationals. However, in total, costs have remained in line with those from the previous year. 

The 2004/2005 season will see a welcome return of the Autumn Internationals and for the first time in many seasons 

we will have two SANZAR nations coming to Cardiff. With South Africa, New Zealand Japan and Romania at the Millennium 

Stadium in November, and the world champions England and Triple Crown holders Ireland visiting for the 2005 RBS Six Nations 

campaign, we can expect significant revenues to be generated. 

The start of the 2003/2004 season saw the formation of five new full time professional Regional teams to whom the 

WRU allocated them £7.5m. 

It is sad to report that the Celtic Warriors went into liquidation at the end of the season, leaving the Blues, Ospreys, 

Scarlets and Dragons as the Welsh representatives in next season's Celtic League and Heineken Cup competitions. 

Funding to the 16 semi-professional sides in the WRU Premier Division was £50,000 each, while the 16 in the Lloyds 

TSB National League Division 1 received £36,000 each - a total of £1.376m. 

The remainder of the 201 clubs in the league system shared £1.16m. For the 2004/2005 season the Premiership 

sides will receive the same amount, but all teams in the Lloyds TSB National league system, including Division 1, will receive 

£6,000. 

14


Financial Report 

As well as increasing income, the Group Chief Executive also called for a reduction in costs. This was achieved using a 

number of initiatives and can be clearly seen in the accounts by comparing costs year on year. 

Corporation Tax for 2003/2004 of £112,416 arose out of a deferred tax charge for the period (2003: £338,394), 

and following a detailed review of loans due from Clubs, it was felt prudent to increase the general provision by £200,000 to 

£700,000. 

The Balance Sheet for the Welsh Rugby Union Limited is disclosed in accordance with the Companies Act 1985 and is 

shown within the Financial Statements on page 42. 

This page shows the Balance Sheet of the WRU ("Company"), and the Group Balance Sheet. Details of the major 

subsidiary undertakings are shown in Note 30 on page 57. 

An overview of the Company Balance Sheet shows that the WRU owns tangible assets totaling £36,290,715 - i.e. the 

land and buildings owned by the Union. 

In addition, the WRU has investments totaling £4,235,000, (comprising of areas of land surrounding the Stadium), 

and it has appointed property agents to sell these 

Included within debtors is the loan due from the Millennium Stadium plc, which totals £9,715,016 and pre-payments 

and accrued income totaling £2,251,588 consisting of mainly TV and Broadcasting Income. 

In total creditors (excluding debentures) have decreased by just under £2m although you will notice an increase in the 

element falling due for payment within 1 year. This is because of a reclassification of an amount due to a third party which arose 

on completion of the Millennium Stadium. 

Thanks to the continued success of the Jubilee Debenture scheme, the amounts due to debenture holders has increased 

to £31,881,600, while Reserves at 31 May, 2004 stood at £2,897,596. 

MILLENNIUM STADIUM 

The results of Millennium Stadium plc for the 13-month period ending 31 May, 2004 show a loss of £586,773 against a profit 

of £1,153,401 in 2002/2003. However, it is worth remembering that the 2003 results included a one-off rates rebate of 

£1.1m. 

There was an increase in turnover for the year of £888,284 to £11,315,654, although this was due mainly to the 

change in the accounting year bringing in the month of May which included the FA Cup final, the Powergen Challenge Cup final 

and the Football League Play-Off finals. 

Now five years old, the Stadium hosted an increased number of events and was filled to capacity for a number of high 

profile pop concerts during the year. A number of the initial hospitality box and club seat agreements have now expired and the 

rich portfolio of events will be key in attracting customers, both new and old, to take up licences. 

Whilst turnover has increased, so too have costs - more money has been spent on maintaining the facility, a provision 

of £300,000 has been made in relation to the trade debts, while the figures include an additional month's depreciation charge 

(net of release of Millennium Commission Grant). 

The indebtedness of Millennium Stadium plc continues to be significant and a rise in interest rates coupled with an 

additional month's charges, contributed to an 11% rise in interest costs over the previous year to £2,960,426. 

Net assets for the Stadium totalled £1,507,626 at 31 May, 2004 (£2,094,299 on 30 April, 2003). As a result of 

the events staged at the Stadium in May 2004 there has been an increase in year-end debtors, whilst net debt increased to 

£52,329,648 (£51,879,233 in 2003), comprising of loans of £49,170,000 and overdrafts of £3,159,648 

The unamortized element to the Millennium Commission grant has reduced to £40,418,667 whilst no further amounts 

are due in relation to the Football Trust Grant. 

Alan Hamer, General Manager Finance and Administration 

15


International Rugby Review 

After a summer tour that saw Wales put to the sword by a rampant New Zealand side, the last thing fans wanted was to 

meet the All Blacks again at the 2003 World Cup in Australia. 

But, instead of a repeat of the embarrassing 3-55 scoreline in Hamilton in June, Wales produced arguably the most 

exciting performance at the tournament and came within inches of causing the biggest upset in World Cup history. 

Steve Hansen's men had shown little in their warm-up games - including poor losses to Ireland and England - to indicate 

they were about to take the rugby world by storm, but that's exactly what they did in front of 80,000 fans in Sydney on 

November 2. 

Mark Taylor, Sonny Parker, Colin Charvis and Shane Williams ran in tries as the fired-up Dragons scored 24 unanswered 

points to hold a six-point lead an hour into a match the All Blacks were expected to win in a canter. 

But all good things must come to an end and a blatant forward pass put New Zealand winger Doug Howlett over in the 

corner to end the brave Welsh resistance. The All Blacks scored again to win 53-37, but it was the Wales players who walked off 

the field with their heads held high. It was the first time Wales had scored four tries against the All Blacks and it was comfortably 

the most points ever recorded against them. Even so, the Welsh fans and players were left dreaming of what might have been, 

although considerably buoyed by the whole experience. 

Barely a week later, they did so again after scaring the eventual world champions England by leading at half-time and 

out-scoring them three tries to one. The class of Jonny Wilkinson gave his side a 28-17 win in the Cup quarter-final, but England 

coach Sir Clive Woodward had the grace to admit the best side on the day had come second. 

The World Cup heroics gave fans renewed optimism for the 2004 RBS Six Nations, but it wasn't to be. A confidenceboosting 

23-10 victory over Scotland was soon forgotten as Ireland crushed Wales 36-15 and France and England recorded narrow wins. 

Wales recovered to give departing coach Hansen a perfect send-off with a 44-10 win over Italy at the Millennium 

Stadium, and the New Zealander was given a standing ovation by an appreciative 70,000-strong crowd after two years in charge. 

Fans also cheered fullback and Wales Player of the Season Gareth "Alfie" Thomas for breaking Ieuan Evans' record by scoring his 

34th Test try, and lock Gareth Llewellyn for equalling Neil Jenkins' record 87 Tests in the red jersey. 

The WRU surprised a few people by selecting Newport Gwent Dragons coach Mike Ruddock as Hansen's replacement as 

Wales coach, and he made the perfect start to his international career with a crushing 42-0 over a star-studded Barbarians side in 

Bristol before embarking on an end-of-season tour of Argentina and South Africa. 

A former Wales B back row man, who played for Blaina, Cross Keys and Swansea, Ruddock cut his teeth in coaching at 

Cross keys before moving on to Swansea, where he won the league and cup as well as masterminding the 1992 success over the 

world champion Wallabies. From there he moved on to become director of coaching at Leinster, before returning to Wales to coach 

Ebbw Vale and Wales A. His first taste of coaching at international level came during the 1995 World Cup when he was an 

assistant coach to the caretaker Alex Evans in South Africa. 

Ruddock was given a rude introduction to the vagaries of Test rugby when his injury-depleted side lost the First Test 

against Argentina 50-44, although a late comeback that saw Wales score three tries in the final 10 minutes gave the side 

confidence for the Second Test in Buenos Aires ... and so it proved. A Shane Williams hat-trick in the first half gave the tourists the 

perfect platform to record a 35-20 victory and a squared series. 

Ruddock warned that the final match of the tour in Pretoria may be a game too far, and South Africa proved him right by 

dishing out a 53-18 mauling as the tired Wales players had one eye on the flight home. 

Llewellyn finished the season with 90 caps and a new contract with French side Narbonne, while fly-half Stephen Jones 

joined Montferrand and Thomas is now at Toulouse. Captain Colin Charvis has signed with English club Newcastle Falcons and 

former coach Hansen is making waves as New Zealand forwards coach. 

Ruddock's first 'home' Test will come at the start of the Lloyds TSB Autumn International Series when the newly 

crowned Tri-nations champions South Africa return to the Millennium Stadium in November. That will be the first of four 

internationals in the space of a month at the home of Welsh rugby. The games against Romania and Japan will kick-off on Friday 

nights, while the return of former Welsh coaches Graham Henry and Steve Hansen with the All Blacks will be a Saturday afternoon 

match. 

It will be the first time in many year's that Wales have met two Tri-Nations sides in their Autumn Series and, with the 

world champions England first up in the RBS Six Nations Championship, it promises to be a testing time for Ruddock, his coaching 

team and players. 

16


Welsh Results 2003 - 2004 Played - 20; Won - 9; Lost - 11. Points for - 524; Points against - 545. 

2003 Summer Tour 

June 14 Australia 30 WALES 10 

June 21 New Zealand 55 WALES 3 

Rugby World Cup Warm-Up Matches 

August 16 Ireland 35 WALES 12 

August 23 WALES 9 England 43 

August 27 WALES 54 Romania 8 

August 30 WALES 23 Scotland 9 

2003 Rugby World Cup - Australia 

October 12 WALES 41 Canada 10 

October 19 WALES 27 Tonga 20 

October 25 WALES 27 Italy 15 

November 2 WALES 37 New Zealand 53 

November 9 WALES 17 England 28 

2004 RBS Six Nations Championship 

February 14 WALES 23 Scotland 10 

February 22 Ireland 36 WALES 15 

March 7 WALES 22 France 29 

March 20 England 31 WALES 21 

March 27 WALES 44 Italy 10 

Uncapped Friendly 

May 26 WALES XV 42 Barbarians 0 

2004 Summer Tour 

June 12 Argentina 50 WALES 44 

June 19 Argentina 20 WALES 35 

June 26 South Africa 53 WALES 18 

RBS 2004 Six Nations Championship 

Nation P W D L F A Pts 

France 5 5 0 0 144 60 10 

Ireland 5 4 0 1 128 82 8 

England 5 3 0 2 150 86 6 

WALES 5 2 0 3 125 116 4 

Italy 5 1 0 4 42 152 2 

Scotland 5 0 0 5 53 146 0 

17


Wales Under 21 Review 

The 2004 season was the year Wales lost their grip on the Six Nations title - but saw a new generation of Dragons in 

waiting emerge. After the loss of the likes of Gavin Henson, Nicky Robinson, Nathan Brew, Paul James, Huw Bennett and 

Jonathan Thomas - all called upon to represent Wales on the highest stage - the Grand Slam-winning side of 2003 was 

ripped up as coach Chris Davey started again with a new crop ready to stake their claim. And now the likes of Richie Pugh, Luke 

Charteris, Matthew Nuthall and James Merriman are that much closer to their full potential after an Under 21 international 

season that should be judged on performances rather than results. 

Wales got their title defence off to a flyer in February's crushing victory 39-6 over Scotland - with 10 new caps in the 

starting line-up - but were brought back down to earth with a bump in a 19-30 defeat to a very able Irish outfit. While coach 

Davey found solace in accepting Ireland were the best team Wales faced all year, there was nothing but disappointment in a 

36-9 reversal at the hands of France three weeks later. 

An injury ravaged team - who had not even trained together - made up for the French defeat with a huge effort to push 

England all the way at Gloucester before eventually going down 19-22, while a healthy 49-17 win over Italy in late March saw 

Wales finish in fourth place in the Six Nations and at least sent the team to the World Cup in Scotland on a high note. The side 

were denied their skipper for the tournament as the fine form of Ospreys flanker Pugh had Mike Ruddock calling for his services, 

while key men Charteris (Dragons), James Malpas (Blues), Dai Bishop (then Warriors, now Ospreys) and Merriman (Gloucester) 

all stayed at home because of injury. 

But despite the setbacks, a 46-11 demolition of Russia followed before an almighty performance had South Africa 

running scared in their next outing. The Dragons clawed themselves back from a 19-point deficit to deservedly lead the game in 

the final minutes, only for the much-fancied Springboks to steal the group tie 27-26 at the death. 

England once again proved too tough, despite another hungry display from the Welsh, but the Six Nations defeat to 

France was avenged in a 29-21 win in the Scottish capital of Edinburgh. Another hotly-contested battle with the old enemy 

followed but there was no third time lucky for Davey's side as England took the spoils and fifth place with a 26-19 victory. 

It was by no means a disgrace for the Welsh, who finished two places up on their seeded eighth position, but still a 

case of what might have been after being edged out by South Africa when a win would have taken them to the semi-finals. "We 

should have won that game but we can still take heart from some of the performances in Scotland," said Davey. "Given the 

players we lost from last year, call-ups and injuries we were left with a very young side." 

"But we were always competitive and already performances from Richie Pugh and Luke Charteris have not gone 

unnoticed because of that. It is a case of when not if Richie breaks into the national side and at 6'10" Luke is a powerful 

forward that as a country historically we fail to produce." 

"The majority of this team will still be here next year as well as some lads from a very good Under 19s team so we 

can be very positive about next season already." 

UNDER 21 RESULTS 2004 

05.12.03 WRU President's XV 42 New Zealand Youth 11 

(at Cardiff RFC) 

13.02.04 Won Scotland 39-6 (at Bridgend) 

20.02.04 Lost Ireland 19-30 (at Galway) 

06.03.04 Lost France 9-36 (at Neath) 

19.03.04 Lost England 19-22 (at Gloucester) 

26.03.04 Won Italy 49-17 (at Ebbw Vale) 

11.06.04 Won Russia 46-11 (World Cup, at Galashiels) 

15.06.04 Lost South Africa 26-27 (World Cup, at 

Glasgow) 

18.06.04 Lost England 14-23 (World Cup, at Glasgow) 

23.06.04 Won France 29-21 (World Cup, at Edinburgh) 

26.06.04 Lost England 19-26 (World Cup, 5th-6th place 

match, at Glasgow) 

UNDER 21 SIX NATIONS FINAL TABLE 2004 

P W D L For Agst Tries 

England 5 5 0 0 152 68 22 

France 5 3 1 1 156 90 24 

Ireland 5 3 1 1 135 75 18 

Wales 5 2 0 3 135 111 15 

Scotland 5 1 0 4 79 167 6 

Italy 5 0 0 5 80 226 7 

UNDER 21 WORLD CUP FINAL STANDINGS 

(in Scotland-June 2004) 

1 New Zealand 

2 Ireland 

3 South Africa 

4 Australia 

5 England 

6 Wales 

18


Wales Under 19 Review 

It was improvement all round for the Wales Under 19 team but once again Dai Rees' men suffered "les bleus" at the hands of 

their French counterparts. The young Dragons took some impressive scalps on their way to a hard-worked Triple Crown of 

friendly fixtures as well as a respectable fifth spot at the World Championships in South Africa - two places up on last season. 

But just as they did last year, a talented French outfit prevented any more glory as they out-gunned the young Welsh 

team twice in the space of a month Wales began the season in the best possible fashion, a rousing 38-0 win over Italy at Ebbw 

Vale. The Scots were the next to fall as Wales outgunned them 21-12 at Aberavon's Talbot Ground, before an impressive 32-14 

win over Ireland in Cork. 

But just as a Grand Slam looked possible, Wales come unstuck at the hands of the French, going down 14-25 at 

Bridgend's Brewery Field in early March despite holding the lead with just 20 minutes to play. 

Amends were quickly made with a satisfying 17-10 win over England in Morely, a timely result with the World 

Championships in South Africa beckoning. Again, Italy were overwhelmed in the opener as the Welsh stormed to a 52-9 win. But 

the side's bogey team lay in wait. The tricolours had scuppered Wales' World Cup hopes last season and it proved no different 

this time round as the eventual runners up took the Dragons scalp. 

Wales did take the lead courtesy of a penalty from Carmarthen Quins' Aled Thomas but it was a short-lived advantage 

as the French ran-in four unanswered tries to take the win. 

Undeterred, Wales rallied superbly and mustered a great display to tame the Pumas with a 27-15 victory- their first 

over Argentina at the Under 19 level. Hot prospects Alun Wyn Jones (Llandovery Coll) and Aled Brew (Neath) - brother of Wales 

cap Nathan - grabbed a try a piece in the win while the Scarlets' Steve Davies celebrated his late call-up as a replacement for the 

injured Ricky Williams with a brace of scores. 

Wales again proved too much for Scotland as they ran home 29-16 victors but only after coming from 16 points 

down, before a fine tournament was wrapped up with a tremendous 14-10 win over Australia. 

The boot of Aled Thomas kept the Wallabies in touching distance before a fabulous break by Bridgend centre Andrew 

Bishop (now with Neath) secured the winning score. 

But - as fitting an ending as it was - that wasn't the end of the international season for many of the squad as injuries 

to Chris Davey's Under 21 side saw many head to Scotland for the World Cup, a fitting tribute to the strides they have made 

under coach Dai Rees and manager Cled Edwards. 

WALES UNDER19 RESULTS 2004. 

23.01.04 Won Italy 38-0 (at Ebbw Vale) 

12.02.04 Won Scotland 21-12 (at Aberavon) 

20.02.04 Won Ireland 32-14 (at Cork) 

05.03.04 Loss France 14-25 (at Bridgend) 

12.03.04 Won England 17-10 (at Morley) 

27.03.04 Won Italy 52-9 (World Cup, at Durban) 

31.03.04 Loss France 3-27 (World Cup, at 

Pietermaritzburg) 

04.04.04 Won Argentina 27-15 (World Cup, at Durban) 

08.04.04 Won Scotland 29-16 (World Cup at 

Pietermaritzburg) 

12.04.04 Won Australia 14-10 (5th-6th World Cup place 

match, at Durban) 

UNDER 19 WORLD CHAMPIONSHIPS 

(South Africa - April 2004) 

1 New Zealand 

2 France 

3 South Africa 

4 England 

5 Wales 

6 Australia. 

19


Affiliated Bodies 

WELSH WOMEN’S RUGBY UNION 

The Welsh Women's Rugby Union has had the busiest and one of the most successful seasons to date. Following a disappointing 

Six Nations, finishing fifth, the National Squad travelled to Toulouse for the European Championships. They beat Ireland and lost to 

Scotland by one point to finish fourth - their highest ever placing in the competition, ensuring qualification for the 2006 World Cup. 

The National Squad made history becoming the first Women's team to travel to the southern hemisphere to play against South 

Africa. They returned two weeks later having become the first Welsh rugby team to successfully complete a test series against the 

Springboks. The Development Squad had a productive season, with several girls successfully challenging for places in the Senior 

Squad. The Under 19 beat England U19 and the USA U19 in the Quadrangular tournament between England, USA, Canada and 

Wales in July. The Welsh Students squad made a return this season, beating Scotland Students in April.On the domestic front, the 

regional Super League ran four age groups (U13, U16, U19 and Senior) for the first season with North, East, West and Central all 

producing Welsh representative players. The senior club game is gaining momentum with more league games this season than in 

any other and with increasing competition for the elite clubs. The Junior game continues to grow, over 1000 girls took part in the 

National Schools Tag and Touch competition. The Women's Rugby Development Officers continue to work hard in building new 

Under 13 and 16 clubs across Wales. The National Squad will look for a top three finish in next season's Six Nations competition 

as they continue to progress towards their target for the next World Cup of 'Top 6 in 2006.' 

2003-2004 RESULTS 

SENIORS 

WON Wales 25 British Army 3 Taffs Well 

WON Wales 15 Premiership All Stars 20 Glamorgan Wanderers 

SIX NATIONS 

LOST Wales 10 Scotland 30 Cardiff Arms Park 

WON Ireland 13 Wales 14 Thomond Park, Limerick 

LOST Wales 0 France 22 Cardiff Arms Park 

LOST England 53 Wales 3 The Stoop 

LOST Wales 7 Spain 12 Cardiff Arms Park 

DEVELOPMENT 

WON England Students 5 Wales Development 15 Warwick Univeristy 

WON Wales Development 66 Scotland U23 0 Taffs Well 

LOST Wales Development 5 France A 8 Llanrumney 

LOST England Academy 80 Wales Development 0 Coventry 

STUDENTS 

WON Wales Students 48 Scotland Students 0 Beddau 

UNDER 19 

WON Wales U19 13 England U19 12 Taffs Well 

LOST Sweden 5 Wales U19 0 Leicester 

LOST England U19 19 Wales U19 3 Coventry 

WON Wales U19 19 USA U19 8 Henley 

LOST Wales U19 10 Canada U19 17 Pill Harriers 

EUROPEANS (SENIORS) 

WON Wales 24 Ireland 7 Toulouse 

LOST Wales 3 England 39 Toulouse 

LOST Wales 10 Scotland 11 Toulouse 

20


SOUTH AFRICA TOUR 

WON Wales 8 South Africa 5 Port Elizabeth 

LOST Wales XV 6 East Cape XV 22 Port Elizabeth 

WON Wales 16 South Africa 15 Pretoria 

LOST Wales 10 Blue Bulls 15 Johannesburg 

National Cup Winners - Llandaff North; North Division One Winners - Caernarfon; South Division One Winners - Llandaff North 

WELSH YOUTH RUGBY UNION AND WELSH SCHOOLS RUGBY UNION 

The Wales Youth U18 side went through the seson undefeated, winning their quadrangular tournament on home soil against 

Portugal, Spain and Italy and then taking the Four Home Unions title with a clean sweep in Belfast. It wasn’t such a good season 

for the Schools. The Senior group failed to win a game, but the U16 side beat Italy and drew with England. 

NATIONAL UNDER 18 YOUTH 

WON WYRU 24 Portugal U19 0 Tonmawr 

WON WYRU 92 Spain U19 10 Pontypridd 

WON WYRU 37 Italy U19 8 Dunvant 

WON WSRU (SG) 8 WYRU 17 Neath 

WON WYRU 36 Scotland 0 Belfast 

WON WYRU 22 Ireland 11 Belfast 

WON WYRU 29 England 11 Belfast 

NATIONAL UNDER 18 SCHOOLS 

LOST WSRU (SG) 0 France 21 Caerphilly 

LOST WSRU (SG) 8 Wales Youth 17 Neath 

LOST Ireland 47 WSRU (SG) 8 Dublin 

LOST England 20 WSRU (SG) 10 Leicester 

NATIONAL UNDER 16 SCHOOLS 

WON Italy A 17 WSRU A (IG) 43 Italy 

WON Italy 5 WSRU (IG) 7 Italy 

WON WSRU (IG) 17 Italy 12 Neath 

WON WSRU A (IG) 29 England A 13 Taffs Well 

LOST WSRU (IG) 8 England 19 Pontypridd 

LOST England A 8 WSRU A (IG) 0 Castlecroft 

DRAW England 19 WSRU (IG) 19 Leicester 

WELSH DISTRICTS RUGBY UNION 

Trefil won the Worthington (WDRU) Districts Cup final at the Millennium Stadium and Rhondda and East Glamorgan District Rugby 

Union took the Percy Howells Cup in a thrilling final against their counterparts from Llanelli. There were no international fixtures 

during the year, but Denmark will be the opponents on Easter Saturday, 2005 when the Welsh Districts Rugby Union celebrate 

their centenary. 

Worthington (WDRU) Districts Cup: Caerleon 14 Trefil 20 

Percy Howells Cup: Llanelli District 38 Rhondda & East Glamorgan District39 

Centenary Match: Llanelli District 26 Welsh Districts President’s XV 17 

21


Michael Owen - a Dragons Trust hero in the making


Dragons Rugby Trust 

“144 clubs 

and 80 

schools took 

part in the 

Trust's 

Schools and 

Youth 

Leagues” 

For the last 12 years, the Dragons Rugby Trust has played a key role in developing and encouraging participation in rugby in 

Wales. Founded in 1992 – then known as the Cardiff Arms Park Youth Trust – the Dragons Rugby Trust benefits from the 

support of the WRU and plays a complementary role to the activities and policies of the WRU’s Directorate, up to and 

including U21 level. 

It is the Trust’s belief that young people can best achieve success through the principles of teamwork, sporting behaviour, 

fairness, fitness and fun. This is not an elitist approach, it is a grass roots programme in which excellence is the by-product of 

participation. 

In another successful year for the Trust, a large number of Award and Scholarship Holders won International honours at 

various age-groups and the BT sponsored Youth League and National Schools League once again provided thousands of players 

with quality rugby week in, week out. The season saw 144 clubs and 80 schools take part and congratulations go to 

Neath/Port Talbot College, who won the Schools League and Treorchy Youth, who beat Tondu Youth in a thrilling Youth League 

final held at the Millennium Stadium. 

As part of the Trust’s continuing efforts to encourage participation in rugby in Wales, many young people benefited 

from the starter bag initiative and the Coca Cola Outreach Programme saw many famous International players from past and 

present join forces with the Dragon Development Officers to spread the gospel in the schools. The Development Officers play a 

key role in the Trust’s strategy and without them we would not be able to identify, develop and nurture rugby in the villages, 

communities and clubs throughout Wales. 

The Trust also plays an active role in supporting women’s and girls rugby. This area has seen an incredible growth in 

clubs and schools, with the Super League structure being extended to U13, U16 and U19 level. Three of our Award Holders 

(Eirlys Lougher, Amy Day and Catrina Nicholas) were part of the highly successful Welsh Womens squad which recently toured 

South Africa and won both tests against the Springboks. 

One of the Trust’s most recent initiatives has seen the appointment of a full-time Equal Opportunities Development 

Officer for Wales. The appointment was created in partnership with the Millennium Stadium Charitable Trust, the Lloyds TSB 

Foundation and the Welsh Council for Voluntary Action. A development strategy has been put in place and it is anticipated the 

scheme will expand and the Trust’s mission to provide equal opportunities for all will be realised. 

The Dragons Rugby Trust’s website continues to report on the good work of the Trust and, thanks to the continued 

support of BT, the website provides every club taking part in the Youth League with their very own ‘mini-site’. The website, along 

with the highly successful Dragon News Magazine, the only magazine of it’s kind published in Wales, form an important part in 

attracting youngsters into the game and reporting on the development of rugby in Wales. 

It was pleasing to note that when new Wales coach Mike Ruddock announced his squad to tour Argentina and South 

Africa in the summer of 2004 there were 11 former Dragons Trust Award Holders and Apprentices named in the touring party. 

They were Rhys Williams, Tom Shanklin, Gavin Henson, Ceri Sweeney, Dwayne Peel, Huw Bennett, Duncan Jones, Jonathan 

Thomas, Richie Pugh, Alix Popham and Michael Owen. Providing opportunities for our finest young players continues to be an 

essential part of the Trust’s work. 

International Honours for Trust Award Holders 2003/04 

Will Jones (Wales U19), Andrew Bishop (Wales U19 and U21), Tom Cheeseman (Wales U19), 

Chris Czekaj (Wales U19 and U21), Craig Mitchell (Wales U19), Tom Riley (Wales U19), 

Tom Smith (Wales U19), David Walsh (Wales U19), Ricky Williams (Wales U19 and U21), 

Aled Thomas (Wales U19), Leon Andrews (Wales U21), Steven Ireland (Wales U21), 

Matthew Jeffrey (Wales U19), Aled Brew (Wales U19). 

23


Scarlet fever in the Heineken Cup


Regions Celtic League, Heineken Cup 

Llanelli Scarlets marked the introduction of regional rugby in style by becoming the first Welsh winners of a Celtic Rugby title. 

The five newly formed regions – Cardiff Blues, Celtic Warriors, Llanelli Scarlets, Neath-Swansea Opsreys and Newport Gwent 

Dragons – were the Welsh representatives in the Heineken Cup, Celtic League and Celtic Cup. 

And it was the Scarlets who raised a winning Welsh flag for the first time in cross-border competition when they scooped 

the 22-match Celtic League title by beating nearest rivals Ulster in a winner-takes-all finale at Stradey Park to climax a thrilling 

honours chase. 

The Scarlets' 23-16 win in front of a crowd of 10,000 took them four points clear at the top, with Ulster pipping the 

Dragons for second spot on a superior try count. The Scarlets suffered just five defeats, the Dragons finished with an unbeaten 

11-match home record, Neil Jenkins brought the curtain down on his illustrious career as the campaign's leading scorer with 273 

points and Jamie Robinson (Cardiff Blues) topped the try chart with 12. 

The 2003 World Cup in Australia certainly disrupted the early part of the Celtic League but in the end the Welsh regions 

occupied five of the top six places with the Celtic Warriors finishing fourth, the Ospreys fifth and the Blues sixth. 

Wales had declared they would use the Celtic League finishing positions to determine qualification for the 2004/05 

Heineken Cup and when the Blues ended one point adrift of the Ospreys they looked to be set to miss out on playing in the top 

tier of European club rugby. However, following the demise of the Celtic Warriors, the Blues were handed a reprieve when ERC, the 

Heineken Cup tournament organisers, ruled that only for season 2004/05 all four Welsh regions would participate in the 

Heineken Cup but that In future seasons Wales must have one side in the European Challenge Cup. 

But if the League proved a profitable hunting ground for the Welsh regions, the Celtic Cup was a different story. Ulster 

took that title with a 27-21 victory over Edinburgh Rugby at Murrayfield with the Welsh teams failing miserably to make an 

impact in the knock-out competition. The Scarlets and the Blues did reach the last eight but the Scarlets were then beaten at home 

by Connacht and the Blues crashed out against Edinburgh. 

On the bigger cross-border stage it was left to the Scarlets – yet again – to shoulder Welsh hopes in the latter stages of 

the six-nation tournament. For the third successive season they were the sole Welsh team to qualify for the knock-out stages of the 

elite competition. The Scarlets went to 2000 Heineken Cup champions Northampton Saints in the sixth and final round needing a 

victory to clinch their place in the last eight – and they did it with a stunning 18-9 victory that included a brilliant solo effort by 

fullback Barry Davies. They did the doubles over the Saints and The Borders while the clashes with Agen went with home 

advantage as the Scarlets topped Pool 4 with 23 points. 

It was all good enough to earn them home advantage in the quarter-finals against Biarritz Olympique as the Scarlets 

went in search of a third semi-final appearance in five seasons. But Biarritz Olympique silenced a capacity Stradey Park to run out 

27-10 winners to leave teams from England, France and Ireland in the Euro spotlight. 

For the other four regions it all ended in the Pool stages – though Celtic Warriors did beat eventual cup winners London 

Wasps 14-9 away only to lose the return fixture 17-12. The Warriors won four out of six Pool 6 fixtures, including a home win 

over 2003 finalists Perpignan. However, The Dragons and Cardiff Blues managed just two wins apiece and were never in 

contention while the Ospreys finished bottom of their group with just a home win over Leeds Tykes to their credit. The Heineken 

Cup provides the most accurate gauge of the state of the health of Welsh domestic rugby and the Welsh end-of-term report for the 

ninth season of Europe's premier tournament has to be can do better - a lot better. 

CELTIC LEAGUE FINAL PLACES 2003/2004 

P W D L F A Tries BP Pts 

Llanelli Scarlets 22 16 1 5 597 385 57 10 76 

Ulster Rugby 22 15 0 7 617 363 67 12 72 

The Dragons 22 16 0 6 590 449 59 8 72 

Celtic Warriors 22 14 0 8 560 451 48 9 65 

The Ospreys 22 11 1 10 582 512 55 9 55 

Cardiff Blues 22 11 0 11 570 467 73 10 54 

Munster Rugby 22 10 0 12 422 456 45 11 51 

Leinster 22 9 1 12 523 580 51 9 47 

Connacht 22 8 2 12 479 550 50 8 44 

Edinburgh Rugby 22 9 0 13 454 622 52 8 44 

Glasgow Rugby 22 6 1 15 442 614 52 6 32 

The Borders 22 4 0 18 363 750 42 6 22 

25


Club Rugby Review - Premier Division 

Newport clinched the top semi-professional title with two matches in hand - as they were beating Caerphilly at Rodney Parade 

they heard that Neath had fallen at home to Cardiff and the title was in Black-and-Amber hands. Wing Craig Richards scored 

the two first-half tries that sent him to 30 in his first season after spells with Whitland and Bridgend while his team-mate and 

outside half Dan Griffiths who had also been with Whitland, proved a wise signing by shrewd coach Leigh Jones by scoring 336 

points in his first season at Newport. 

Skipper and flanker Gareth Gravell was another new face from West Wales and he contributed immensely with 11 tries, 

followed by Rhys Shorney (10) and Scott Williams (9). 

Former Wales under-21 No 8 Rhys Jones played splendidly while Will Kershaw-Naylor scored three tries in the club's 

biggest-ever beating of Cardiff, 37-0. 

The only points dropped were away from home with defeats at Neath and Bedwas and a 20-20 draw at Pontypridd, 

though the biggest shock was the 6-3 loss at Cross Keys in the Konica Minolta Cup. In all, Newport touched down 142 tries in 30 

matches, while runners-up Neath ended 12 points and 28 tries behind. 

Neath were the main challengers with a splendid mixture of experience and youth, coached by the capable Rowland 

Phillips. His former Wales team-mate (at both Union and League), Mark Jones, gave power and experience up front. Wing Robert 

Johnston ran in 20 tries and Matthew Jones collected 268 points. The 37-8 win over Newport in November was the worst defeat 

of the season - in terms of points - for the champions. 

Pontypridd moved into third place late in the season, beating Aberavon by 54 points in April and forcing the Wizards 

down to fourth spot. Wales under-21 cap Lee Thomas scored 213 points for Pontypridd, while Wizards coach Chris O'Callaghan did 

splendidly and his fly half Jamie Davies scored 327 points. 

Carmarthen Quins, led by former Wales lock Paul Arnold, lost the first two and last three matches, yet rose to fifth place 

by the end with Giles Thomas contributing 193 points in his final season. 

Swansea, coached by Tony Clement and Keith Colclough, were under-achievers, but fly half Luke Richards was the top 

Premier scorer with 335 points. They were followed by Bridgend, champions of the previous season, but never threatening this time. 

Cross Keys, who accounted for three Premier clubs in the Cup, were often hard to beat at home, while Bedwas could look 

back at ninth spot and a good start to Premier rugby. 

Caerphilly had a run of seven successive losses from February until April and reserved their best form for cup rugby, yet 

they and the following six clubs were separated by just three points. 

Pontypool were clubless, but coach Steve Jones and a great band of supporters roared them to safety and victory over 

Neath in their final fixture. A run of 11 losses and a draw in 12 games almost sunk them. 

Cardiff had a poor season and just avoided bottom spot after a seven-match losing sequence was halted by spirited 

efforts to win at Neath and at home to Swansea in the final outings. 

Newbridge completed a double over Cardiff but that proved the highlight of their season, while Llanelli's youngsters 

flattered to deceive, until they lost only one of their last six matches. 

Llandovery started favourites to finish bottom and began with six straight losses, but then recovered only to fade away in 

the New Year and Ebbw Vale finished last when they lost 22-21 to Swansea - a win would have sent them up four places. 

However, they were not relegated and the division has been boosted by the addition of Division One champions Llanharan for the 

new season. 

P W D L F A T PTS 

1 Newport 30 27 1 2 1054 550 142 82 

2 Neath 30 23 1 6 947 557 114 70 

3 Pontypridd 30 20 2 8 820 641 92 62 

4 Aberavon 30 17 0 13 774 627 93 51 

5 Carmarthen Quins 30 16 1 13 674 629 76 49 

6 Swansea 30 16 0 14 853 710 96 48 

7 Bridgend 30 14 1 15 757 767 93 43 

8 Cross Keys 30 13 0 17 753 777 83 39 

WELSH PREMIER DIVISION 

P W D L F A T PTS 

9 Bedwas 30 12 2 16 644 797 72 38 

10 Caerphilly 30 11 1 18 658 918 82 34 

11 Pontypool 30 11 1 18 543 698 59 34 

12 Cardiff 30 11 0 19 649 797 87 33 

13 Newbridge 30 10 3 17 585 803 78 33 

14 Llanelli 30 10 2 18 701 765 86 32 

15 Llandovery 30 10 2 18 681 787 82 32 

16 Ebbw Vale 30 10 1 19 554 824 58 31 

26


THE LLOYDS TSB WELSH 

NATIONAL LEAGUE ROLL 

OF HONOUR 2003/2004 

Division One 

LLANHARAN 

Division Two East 

BUILTH WELLS 

Division Two West 

TONMAWR 

Division Three East 

BRYNITHEL 

Division Three West 

PONTYBEREM 

Division Three South-East 

TREHERBERT 

Division Three South-West 

BANWEN 

Division Four East 

BARGOED 

Division Four West 

LOUGHOR 

Division Four South-East 

PONTYCYMMER 

Division Four South- West 

CWMGORS 

Division Four North 

RUTHIN 

Division Five East 

TRINANT 

Division Five West 

CRYMYCH 

Division Five South-East 

LLANDAFF 

Division Five South-West 

RESOLVEN 

Division Five North 

DINBYCH 

Club Rugby Review - Lloyds TSB League 

Llanharan, the 2003/2004 Lloyds TSB League Division One winners, turned the title race into a real cliff-hanger - waiting until 

their final match, away to Carmarthen Athletic, before clinching the title ahead of Maesteg. 

And on top of the title and promotion to the Premier Division, coach Dennis John and outside half Mark Roper were 

named as the Lloyds TSB Welsh National League Division One Coach and Player of the year. Former Pontypridd coach John had 

seemingly guided Llanharan to the crown by drawing at Maesteg in November and winning the return in March. 

But Llanharan slipped up in their next match and it was all square again. Maesteg were always ahead on games played 

and then, dramatically, fell to a 21-point defeat at Narberth in their final match. 

Llanharan had three to play and only an 81st-minute drop shot beat Narberth before Rumney and Carmarthen Athletic 

were defeated in the final run-up. Marc Davies was the highest scorer in Wales with 471 points, including 24 tries. 

Mark Roper (25), Richard Emms (20) and David Atkins (17), all scored tries freely and former skipper Colin Malone 

ended his career by contributing 14 tries. Bottom club Tondu were mauled 102-8 and 96-5 and the best effort by Davies was 38 

points against Carmarthen Athletic in September. Of the four relegated clubs, Rumney scored over 100 tries, but conceded too 

many at the other end. 

Builth Wells took the Division Two East title when Fleur de Lys surprisingly drew with Ystrad Rhondda, meaning that 

Builth had to gain only one point from their last two fixtures. They often had veteran Wales cap Jeremy Pugh at prop and the 

backs coach was local boy Mark Jones, the Wales and Scarlets wing. 

The best day in Tonmawr's history came after the Division Two West title was captured despite an attack of nerves in the 

final week. Only a draw was needed from two home games in five days, but a late penalty was missed and Corus pulled off a 

surprise win. However, nerves held and Cardigan were defeated 46-9. 

Brynithel were the shock winners of Division Three East as they came from third on the final day to snatch the title. 

Senghenydd, who had finished, and Newport Saracens were ahead on try-count, but the Saracens were beaten at New Tredegar 

and Brynithel produced a late rally to win at Abercarn. 

Pontyberem and Kidwelly gained wins that left them level on points, at the top of Division Three West. But, Pontyberem 

were well up on tries and had the luxury of a game at Haverfordwest still to play, which they also won. It was promotion for the 

second successive season for a club that had turned the corner after a few dark seasons. 

Treherbert started Division Three South-East looking likely to run away with the crown, but games were suddenly lost and 

it took several weeks for the tide to turn before they beat Gilfach Goch convincingly in the final match. 

Banwen were a mighty side in Division Three South-West, taking the title and then caning Maesteg to win the Silver 

Ball. The key to the success was up front, while in Craig Hughes they had a top-notch goalkicker who beat the Dulais Valley club's 

points record. 

Division Four East winners Bargoed were the only first-class side in Wales to go through the season unbeaten in league 

rugby. Several experienced players were blended with youngsters to provide a fine mix and the title was gained by early April. 

The Four West Division was a three-club race for almost the whole season with Loughor losing twice in three weeks 

before Christmas, but then not looking back. A final match at home to Pembroke Dock Quins was winner take all. 

However, Loughor cut loose to win it by 47-10. Former club hooker Mark Davies had a good season as coach in his first 

season of retirement from playing. 

An amazing turnaround in the last two matches of Four South-East saw Fairwater lose out, as they lost at home to 

Pontycymmer and then, needing to beat Abercwmboi away to gain the title, they fell 42-7, meaning that Pontycymmer took the 

title. 

Cwmgors clinched the Division Four South-West title three days after they had finished their final match. Second-placed 

Alltwen had to win at Rhigos and score eleven tries or more in the process to capture the title, but they gained only one try and 

the watching Cwmgors side could celebrate. 

Ruthin, the Vale of Clwyd club, brought home their first championship success for 27 years, as a 6-0 away win against 

nearest rivals and last season's champions, Nant Conwy, virtually settled the Four North crown. 

27


WELSH LEAGUES 

Lloyds TSB 

Division 1 

Player of Year 

Mark Roper 

(Llanharan) 

Coach of Year 

Dennis John 

(Llanharan) 

Club Rugby Review - Lloyds TSB League 

Skipper Jim Salisbury, a 1992 Wales Youth cap, blossomed into a fine senior performer and often popped up from full 

back to score decisive tries. The club will now move out of the North and have a crack at Three South-East, even though much 

more travelling will be involved. 

The 'Troggs' of Trinant took Five East and it was the swansong for 44-year-old hooker Paul Jones, who retired at the end 

of the season. It was Trinant's first title since lifting the old Monmouthshire League trophy in 1987 and still playing at lock was 

46-year-old Gavin Rodgers, with his son Adam alongside him. 

Crymych captured Five West ahead of Cefneithin and six players named Davies appeared in the 39-18 win over 

Penygroes that secured the title. 

In Five South-East, Llandaff not only were the first club to win a division, but also the first to finish their fixtures. It 

showed that their Bishops Field ground was usually playable when others were called off and helped the Cardiff-based club gain 

their first-ever title. The club lost only to Llantwit Major, even drawing with Cwmavon on points in the Konica Minolta Cup, but 

losing out as the away team were awarded the tie. 

Resolven returned to rugby after having missed the whole of the previous season. However, a mixture of last season's 

youth and players returning home, saw the Division Five South-West title captured by the penultimate game. 

It was a special success for coach Tegid Phillips, as Five North winners Dinbych (formerly known as Denbigh) play their 

matches at Caeau Les Phillips, named after Tegid's late father. The first match was lost to Colwyn Bay, but all the other 17 were 

won, including the final one by 122-7 against Machynlleth when Tony Jones scored nine tries and landed the only conversion 

attempted. 

LLOYDS TSB MONTHLY AWARDS FOR DIVISION ONE 

Month Player Coach 

September Jeremy Lloyd (Blackwood) Mark Thomas (Blackwood) 

October Dean Thomas (Tondu) Dennis John (Llanharan) 

November Julian Howells (Carmarthen Ath) Domenico Setaro (Whitland) 

December Marc Davies (Llanharan) Leighton O'Connor/Gareth Brown (Maesteg) 

January Michael Kelly (Rumney) Arwel Davies (Llangennech) 

February Mark Bowen (Llangennech) Shaun Lee (Rumney) 

March Lee Glanville (Whitland) Griff Rees (Glamorgan Wanderers) 

April Jason Williams (Brynmawr) Brett Davey/Phil Ager (Beddau) 

SEASON Mark Roper (Llanharan) Dennis John (Llanharan) 

28


Club Rugby Review - Konica Minolta Cup 

8 May 2004 

Neath 36, 

Caerphilly 13 

Neath came away with a well-deserved 36-13 Konica Minolta Cup final triumph at the Millennium Stadium in the first season 

with the new sponsors - 32 years after lifting the WRU Challenge Cup in the first season of the knock-out tournament. It was 

Caerphilly's first appearance in a domestic cup final - and the first time they had reached the semi-final stage. 

Winger Kevin James scored the opening try as Neath took a hard-fought 12-6 lead at the break, but Caerphilly gave as 

good as they got and Stuart Thomas landed two penalty goals. 

After the interval Neath pulled clear and centre Mike Jones touched down the best score of the game. The Neath pack 

took control of the match, with fly half Matthew Jones touching down Neath's fifth try and kicking 11 points to later take the 

Lloyd Lewis Memorial Award as the man-of-the-match. 

Caerphilly No 8 and skipper Andrew Williams - the hardest-worker on the pitch - had the final say of the match with a 

well-deserved try near the uprights to give the strong Caerphilly contingent among the 8,000 crowd something to shout about. 

There was a special cheer for Brett Sinkinson, the former Wales flanker, who was departing for his native New Zealand. 

Referee Nigel Whitehouse controlled his second final, having previously been in charge of the 2000 showpiece match. 

However, the early round stars were Llangefni, the small village side from Anglesey, who began the competition in the 

first round at Ferndale and went out gallantly in the sixth round at Caerphilly some five months later. They had also defeated 

Tredegar Ironsides, Bedlinog, Treherbert and Abercynon in a great run. 

Kenfig Hill and Corus topped the century-mark in the opening rounds but it had grown tighter by Round Four, when the 

Premier clubs came in, with Neath just escaping by 20-19 at Llandovery and Cardiff were knocked out by a sole Jason Williams 

penalty at Brynmawr in a Sunday meeting. 

Round Five provided a shock as league leaders Newport fell 6-3 at Cross Keys and former winners Llanelli also lost at 

Pandy Park, going down 38-14 in Round Six. Caerphilly claimed Swansea's scalp in the quarter-finals; Aberavon were decisive 

winners at Cross Keys; Bridgend triumphed at Brynmawr - the only surviving Division One club - and Neath beat Pontypridd. 

The semi-finals were played back-to-back at the Millennium Stadium with Neath beating Bridgend 29-14 and Caerphilly 

surprising Aberavon by 33-22. 

29 

Neath, Neath, Neath!


Other Business 

Sir Tasker greatly enhanced 

the image and reputation of 

Welsh rugby. 

Terry Cobner s contribution 

to Welsh rugby has 

been immense. 

SIR TASKER WATKINS TAKES UP NEW POST AT WRU 

Sir Tasker Watkins, the second longest serving President in the history of the Welsh Rugby Union, notified the Union's Board of 

Directors on 29 July, 2004, that he would be stepping down from the role after an 11-year stint. However, Sir Tasker's services 

will not be lost to Welsh rugby as he agreed to become the Honorary Life Vice Patron of the WRU. 

Sir Tasker, who will be 86 on 18 November, stood down after becoming the first man since Sir David Rocyn Jones in 

1953 to hold office for more than one season and his 11 years of service made him the second longest serving President in the 

123 year history of the WRU. 

"Sir Tasker undertook his duties as President of the WRU with huge commitment and great distinction. He is an 

exceptional man of high principles, honour and integrity who greatly enhanced the image and reputation of Welsh rugby for 

more than a decade," said WRU chairman David Pickering. 

"The WRU can ill afford to lose a man of such calibre and outstanding intellect. Following his announcement at our 

meeting on Thursday night it was the unanimous decision of the WRU Board of Directors that we should invite Sir Tasker to 

become an Honorary Life Vice Patron. 

"I am delighted to say that he accepted the new post, which was offered in recognition of his outstanding service to 

Welsh rugby and the Welsh Rugby Union." 

TERRY COBNER RETIRES 

Terry Cobner, the Welsh Rugby Union's Director of Rugby, retired from his post for 'personal reasons' at the end of July, 2004. 

The former Pontypool and Wales captain joined the Union in 1996 to become Welsh rugby's first Director of Rugby. 

The man who was one of the guiding lights both on and off the field in the transformation of Pontypool from the alsorans 

of Welsh rugby into the most feared and successful side in the UK, and who won two Grand Slams and three Triple Crowns 

during a 19 cap Test career with Wales, decided that after 40 years in rugby as a player, coach, selector and administrator the 

time had come to put his family first. 

"The contribution made by Terry Cobner to Welsh rugby has been immense. It is up there with the all-time greats in the 

Union's 123 year history," said WRU chairman David Pickering. 

"His list of achievements over the past eight, turbulent years means he leaves us with an invaluable legacy. In his time 

at the Union he has revolutionised our coach education structure, built a clear and much envied Player Development Pathway, 

rationalised the boundaries of age group rugby, formulated an Academy Structure for regional and national levels and given clear 

guidance on regional rugby." 

Obituaries 

DAVID MALDWYN DAVIES 

Born Penygraig, May 2, 1925. Died Taunton, Somerset, September 25, 2003. Aged 78. 

Dai Davies was a superb hooker for Penygraig, Somerset Police, Wales, the British Lions and the Barbarians. He won 17 

Welsh caps and played 15 times for the British Lions on their 1950 tour, including three Tests. Educated at Craig yr Eos, 

Penygraig, he worked underground at the Naval Colliery before joining the Somerset Police Force. When 'Bunner' Travers 

retired in 1949, Davies was a surprise choice for the 1950 match against England at Twickenham, being one of the six new 

caps under a new skipper, John Gwilliam. Wales' 11-5 victory was their first for 17 years at 'HQ' and further wins against 

Scotland and Ireland gave Wales their first Triple Crown for 39 years. They went on to complete the Grand Slam against France. 

In 1951, he played in all the Championship matches and later that year appeared for the Western Counties (England), Wales 

and the Babarians against the touring Springboks. There was another Grand Slam for Davies and Wales in 1952 and in 1953 

he was in the side that beat New Zealand 13-8. 

BILLY CLEAVER 

Born Treorchy 15 September, 1921. Died Cardiff 29 September, 2003, aged 82. 

Billy Cleaver was one of the great utility backs of the early post-war era. He won 14 caps for Wales between 1947 and 1950 

and also toured Australia and New Zealand with the British and Irish Lions, playing in three Tests. Among his many achievements 

in the game was playing in three different positions against the 1947-48 Wallabies - and finishing on the winning side each 

time. He was at full-back for Wales, at centre for the Barbarians and at fly-half for Cardiff. When he returned from the Lions tour 

in 1950 he hung up his boots to concentrate on a career in coal mining. He eventually became Deputy Director of the South 

Wales Coalfield and was the first chairman of the Welsh Youth Rugby Union, serving from 1949-1958. 

30


Obituaries 

DAI HAYWARD 

Born Crumlin, 1 March, 1934. Died Bridgend, 12 November, 2003, aged 69. 

Dai Hayward, who won six Welsh caps in the sixties, was one of the most destructive and combative flankers of his era. 

Capped by Wales Schools Under 15 and the Welsh Secondary Schools, he went on to study at Loughborough College. He 

launched his senior career at his native Crumlin before joining Newbridge and finally Cardiff in 1957. He was to spend almost 

forty years as player and committeeman at the Arms Park club, making 325 appearances and scoring 50 tries until his 

retirement at the end of the 1966-67 season. He played in the 1957 Cardiff win over Australia and became club captain in 

1962. His Wales debut finally came two months short of his 29th birthday - against England at Cardiff in 1963 - and he scored 

the home side's only try in a 13-6 defeat. He went on Wales' first overseas tour to South Africa, making his sixth and final test 

appearance in Durban against the Springboks in 1964, and then went into coaching. He coached the East Wales side that drew 

3-3 with the 1967 Al Blacks and was chairman of Cardiff in 1985-86. 

GEORGE MORGAN 

Born Caerphilly, 1938. Died Caerphilly, 2 January, 2004, aged 66. 

George Morgan was a pillar of his community and a pillar of the Welsh Rugby Union. He served Senghenydd RFC as a player, 

Secretary and then President for almost two decades. But his rugby service to rugby didn't end there. He was one of the 

representatives of District C on the Welsh Rugby Union general committee for almost 20 years, finally reaching the post of 

President of the Union in the 1987-88 season. During his year as President Wales won the Triple Crown for the last time and just 

failed to beat France for the Grand Slam. At the end of that season he travelled with the Welsh side to New Zealand and on 

many occasions he acted as a liason officer for in-coming tour parties. He was superb in the role and national teams from all 

over the world used to request his services. 

VIVIAN JENKINS 

Born Port Talbot, 2 November, 1911. Died Harpenden, 5 January 2004, aged 92. 

Hailed as one of rugby union's greatest full backs, Viv Jenkins went on to become one of the best writers on the game as the 

rugby correspondent for the News of the World and then the Sunday Times. One of Wales greatest all-round sportsmen - he was 

the first player to score a try for his country from full back and also played county cricket as an amateur for Glamorgan - he was 

the oldest living Glamorgan cricketer and the second oldest living Wales rugby international and British Lion behind fellow 

Welshman, the 96-year-old Harry Bowcott, prior to his death. Educated at Llandovery College and Oxford University, he won the 

first of his 14 caps against England at Twickenham on 21 January, 1933, four weeks after his club Bridgend had switched him 

from centre to full back. It was to be a famous day as Watcyn Thomas' side, containing seven new caps, won for the first time 

at Twickenham after a 23 year wait. Ronnie Boon scored all the points in a 7-3 triumph. In 1934 Jenkins became the first 

Welsh full back to score a try in the 13-0 defat of Ireland in Swansea. It was another 33 years and 108 games before Keith 

Jarrett managed to match Jenkins' feat. Jenkins played in the 1935 victory over the All Blacks, converting two of the three 

home tries, and in 1938 was one of eight Welshmen included in the British and Irish Lions side to tour South Africa and was 

elected vice-captain. He was picked for the first Test, landing three long range penalties, one from eight yards inside his own 

half, but his tour was hamperd by hamstring trouble, although he ended as the second highest points scorer with 50. Although 

first capped from Bridgend, he played the majority of his club rugby at London Welsh where he became a revered figure. 

GARETH PAYNE 

Born Trelewis, 8 September, 1935. Died Lake District, 2 July, 2004, aged 68. 

Gareth Payne won three Welsh caps against England, Scotland and Ireland as a lock in 1960. He was capped by the Welsh 

Secondary Schools in 1953 while at Pontypridd GS and he won his senior caps from Pontypridd. He qualified as a civil engineer 

from the School of Mines in Treforest and served his National Service with the Royal Engineers, playing for the Army and also 

appearing for Newport, London Welsh, Stroud, the Barbarians and the county sides of Glamorgan, Gloucestershire and 

Hampshire. In 1960 he played for the London Counties, Combined Services and the South-East Counties against the Springbok 

tourists. 

31


Martyn Williams makes a move against Scotland


WRU Accounts 2003-2004 

An explanation of these Accounts is contained within the financial report provided by Alan Hamer, the WRU Finance and 

Administration General Manager, on pages 14 and 15. The Accounts contain the consolidated results for the WRU Group for the 

13 month period between 1 May 2003 to 31 May 2004. They also contain the financial records of WRU Ltd and Millennium 

Stadium plc for the same period. 

Alan Hamer 

General Manager, Finance and Administration 

AUDITORS’ REPORT ON THE FINANCIAL RESULTS OF THE WELSH RUGBY UNION LIMITED 

We confirm that the results set out on pages 34 to 38, have in our opinion, been extracted properly from the audited accounts 

of the Welsh Rugby Union Limited for the 13 month period ended 31 May 2004. 

Walter Hunter & Co. 

Chartered Accountants and Registered Auditor 

24 Bridge Street, 

Newport, 

South Wales 

NP20 4SF 

Date: 25 August 2004 

33


Financial Results 

These are the accounts of the company, Welsh Rugby Union Limited, for the 13 months ended 31 May 2004. The comparative figures disclose the accounts for the 12 months ended 

30 April 2003. The consolidated group accounts are disclosed on pages 39 to 58. 

REVENUE ACCOUNT - SEASON 2003/2004 

2003/2004 2002/2003 

INCOME £ £ £ £ 

Revenue Income Account 2,036,363 1,808,917 

Match Account Surplus 4,798,171 4,764,547 

6,834,534 6,573,464 

EXPENDITURE 

Marketing and Press Office 508,723 547,366 

Development of The Game 1,001,119 1,017,841 

Management and Administration 1,988,243 2,259,603 

Maintenance 617,769 680,739 

Financing Charges and Contributions 915,241 921,149 

Funding of National League, Divisions 1-5 142,000 244,519 

5,173,095 5,671,217 

Net Profit Before Tax 1,661,439 902,247 

Group Relief Charge - Deferred tax (112,416) (338,394) 

Net Profit After Tax 1,549,023 563,853 

Financial Support to Clubs & Affiliated Organisations (775,406) (1,117,560) 

Dragons Rugby Trust (491,488) (783,119) 

(1,266,894) (1,900,679) 

Profit/(Loss) for Year 282,129 (1,336,826) 

Provision for Impairment of Fixed Asset Investments in (1) (1,944,996) 

Premier Division Clubs 

General Provision Against Loans to Clubs (200,000) (500,000) 

82,128 (3,781,822) 

Reserves Brought Forward 2,815,468 6,597,290 

ACCUMULATED RESERVES TO 31 MAY 2004 2,897,596 2,815,468 

REVENUE INCOME - SEASON 2003/2004 


INCOME £ £ 

Sponsorship 1,316,942 1,290,204 

Royalties 412,975 242,435 

Hire of Ground & Rents 155,074 125,000 

Clubs' Subscriptions 1,372 1,278 

International Rugby Board Trust 150,000 150,000 

BALANCE TRANSFERRED TO REVENUE ACCOUNT 2,036,363 1,808,917 

34



MATCH ACCOUNT - SEASON 2003/2004 


INCOME £ £ £ £ 

Home International Matches 

Wales v England 437,190 0 

Wales v France 1,967,492 1,668,929 * 

Wales v Scotland** 2,208,041 1,717,924 * 

Wales v Italy 1,776,787 1,290,235 * 

Wales v Barbarians 199,166 0 

Television and Sound Broadcasting 10,150,165 10,620,733 

Advertising 141,776 187,841 

Sponsorship & Hospitality 1,311,992 1,193,693 

18,192,609 

EXPENDITURE 

Costs of Players' Services*** 385,553 1,976,551 *** 

Other Costs 

Away International Matches 

Ireland v Wales** 72,747 48,648 * 

England v Wales 50,511 38,705 * 

Home International Matches 

Wales v England 139,278 0 

Wales v France 203,922 148,630 * 

Wales v Scotland** 208,237 139,723 * 

Wales v Italy 154,862 153,566 * 

Wales v Barbarians 261,769 0 

Referees' Services 240,384 195,030 

1,717,263 

Squads and Administration Expenditure 

Clubs - Provision of Players' Services*** 7,937,425 6,454,899 *** 

Directorate 194,555 146,150 

Wales 1,815,972 1,444,302 

Wales A 26,852 63,238 

Welsh Students 0 12,928 

Welsh Youth League 144,226 200,000 

Welsh Exiles 45,000 47,727 

Wales Under 21 212,251 253,368 

Wales Under 19 133,044 93,103 

Wales Under 19 Tour 0 84,511 

Wales Under 17 0 13,474 

Wales Under 16 0 10,987 

Elite Rygbi Cymru 69,693 43,047 

10,579,018 

Other Matches, Tournaments 

RWC 2003 216,580 0 

Sevens Competition & Tournament 189,850 375,789 

National Tour 284,709 264,570 

Welsh Womens Rugby 107,018 119,874 

Death & Total Disability Insurance 300,000 300,000 

1,098,157 

13,394,438 

BALANCE TRANSFERRED TO REVENUE ACCOUNT 4,798,171 

35 

*These comparative figures relate to 2001/2002. 

**Two fixtures in 2003/2004. 

***The methodology by which payments are made to 

Regions/Clubs has changed during the period.



MARKETING AND PRESS OFFICE - SEASON 2003/2004 


£ £ £ £ 

EXPENDITURE 

Advertising and Promotion 326,430 310,829 

Public Relations & Press Office Costs 

Press Office Costs 28,516 49,969 

Press Office Agency 35,904 29,400 

64,420 79,369 

Staff Costs 

Salaries, Superannuation, etc. 109,277 148,915 

Travelling Expenses 8,596 8,253 

117,873 157,168 

BALANCE TRANSFERRED TO REVENUE ACCOUNT 508,723 547,366 

DEVELOPMENT OF THE GAME - SEASON 2003/2004 


£ £ £ £ 

EXPENDITURE 

District Directorates of Rugby - General 

Salaries, Superannuation, etc 594,821 617,986 

Office Accommodation and Expenses 31,522 52,955 

Travelling Expenses 29,201 23,749 

655,544 694,690 

Under 19 Player Development 

District 10,734 18,727 

Promotional Resources 29,374 25,007 

40,108 43,734 

Coach Education 

District 29,088 46,217 

National 37,041 37,981 

Training and Development 20,628 6,458 

86,757 90,656 

Referee Development and Other Expenses 259,195 225,992 

1,041,604 1,055,072 

INCOME 

Conferences, Courses, Publications 40,485 37,231 


36



MANAGEMENT AND ADMINISTRATION - SEASON 2003/2004 


£ £ £ £ 

EXPENDITURE 

Employees 

Salaries, Superannuation, etc. 999,878 1,026,076 

Travelling and Other Expenses 18,658 48,022 

1,018,536 1,074,098 

Running Expenses 

Hire and Maintenance of Equipment 14,492 7,347 

14,492 7,347 

Supplies and Services 

Professional Fees 314,688 271,342 

Computer 67,498 67,710 

Printing and Postage 75,111 117,511 

Telephones and Stationery 63,605 113,581 

Advertising and Recruitment 35,121 37,293 

Auditors' Remuneration 17,000 16,000 

General Office Expenses 26,251 30,734 

Insurance 124,485 117,328 

723,759 771,499 

Other 

Directors' and Committees' Expenses 35,345 96,765 

Miscellaneous 11,676 9,687 

Security 0 29,500 

AGM and District Meetings 7,351 40,061 

Reorganisation 124,314 149,232 

Funding of Welsh Districts Rugby Union 52,770 76,914 

Funding of Districts/Counties 0 4,500 

231,456 406,659 


37



MAINTENANCE - SEASON 2003/2004 


£ £ 

EXPENDITURE 

Rent & Rates 174,701 190,623 

Insurances 421,148 414,483 

Offices, Relocation Costs and Rentals 21,920 75,633 


FINANCING CHARGES AND CONTRIBUTIONS - SEASON 2003/2004 


£ £ £ £ 

EXPENDITURE 

Provision for Depreciation 

Fixtures & Fittings 75,833 112,441 

Buildings 86,667 45,170 

162,500 157,611 

International Board, Six Nations & Celtic League costs 461,839 369,586 

Bank Charges and Interest 425,916 243,952 

Provision for Doubtful Debts 0 150,000 

Provision for Balances Due from Subsidiary Undertakings 262,814 0 

1,150,569 763,538 

1,313,069 921,149 

INCOME 

Interest on Debenture Monies 397,828 0 


FINANCIAL SUPPORT TO CLUBS & AFFILIATED ORGANISATIONS - SEASON 2003/2004 


£ £ 

EXPENDITURE 

Financial Assistance to Clubs 151,858 226,701 

Grants to Affiliated Organisations 385,286 510,280 

Referees’ Expenses 238,262 380,579 

BALANCE TRANSFERRED TO REVENUE ACCOUNT 775,406 1,117,560 

38


Directors’ Report 

The Directors present their report and financial statements for the 13 month period ended 31 May 2004. 

REVIEW OF THE BUSINESS AND FUTURE DEVELOPMENTS 

The company and its subsidiaries form a group engaged in the running and administration of Welsh Rugby and the operation of 

the Millennium Stadium. 

The level of business and the period end financial position are considered satisfactory when the ongoing issues currently 

surrounding the fundamental reorganisation of Welsh rugby are taken into account. 

The Welsh Rugby Union will continue to maximise its revenue by attracting both rugby and non-rugby events to the Millennium 

Stadium. 

RESULTS 

The Group’s loss for the financial period was £124,656 (2003: loss of £2,599,195). 

FIXED ASSETS 

a) Tangible Fixed Assets: 

A summary of the changes in tangible fixed assets is given in Note 10 to the financial statements. The Directors estimate that 

the open market value of the freehold properties, excluding the stadium, was not materially different to the book value. 

b) Fixed Asset Investments: 

A summary of the changes in fixed asset investments is given in Note 11 to the accounts. 

POLICY & PRACTICE ON PAYMENT OF CREDITORS 

The Group endeavours to settle and agree the terms of payment with suppliers prior to placing business. This ensures that 

suppliers are aware of the terms of payment in advance. It is the Group’s policy to pay to agreed terms. 

DIRECTORS 

The Directors who served during the period ended 31 May 2004 were as follows: 

Beynon M 

Howell D R 

Rees D 

Edwards G 

Jenkins P Ryan J (resigned 26/07/03) 

Evans H Jones C (resigned 26/07/03) 

Roderick W L (resigned 26/07/03) Farley M (resigned 26/07/03) 

Jones J R Simon S A (resigned 26/07/03) 

Fowler B Lewis H (resigned 26/07/03) 

Thomas R (resigned 26/07/03) Giddings R L 

Michael B (resigned 26/07/03) Vaux A T (resigned 26/07/03) 

Griffiths G S (resigned 26/07/03) Owen J (resigned 26/07/03) 

Walters S (resigned 26/07/03) Hammond D (resigned 26/07/03) 

Phillips A (resigned 26/07/03) Watkins H J 

Hewitt K J 

Pickering D F 

Wilton R Davies M R (appointed 26/07/03) 

John A (appointed 26/07/03) Jones A (appointed 26/07/03) 

Thomas G (appointed 26/07/03) Moffett D L (appointed 26/07/03) 

The company is limited by guarantee and no director had any interest or beneficial interest in the company. 

DONATIONS 

Donations paid by the Group are disclosed in the Profit and Loss Account. 

39



DIRECTORS’ RESPONSIBILITIES 

Company Law requires the Directors to prepare financial statements for each financial period which give a true a fair view of the 

state of affairs of the company and of the group at the end of the period and of the profit or loss for the period then ended. 

In preparing those financial statements, the Directors are required to: 

a) select suitable accounting policies, as described on pages 44 to 45 and then apply them consistently; 

b) make judgements and estimates that are reasonable and prudent; 

c) state whether applicable accounting standards have been followed, subject to any material departures disclosed and 

explained in the financial statements; 

d) prepare financial statements on an ongoing basis unless it is inappropriate to presume that the company will continue in 

business. 

The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the 

financial position of the company and the group and to enable them to ensure that the financial statements comply with the 

Companies Act 1985. The Directors are responsible for safeguarding the assets and hence taking reasonable steps for the 

prevention and detection of fraud and other irregularities. 

AUDITORS 

A resolution to re-appoint Walter Hunter & Co as auditors for the ensuing year will be proposed at the Annual General Meeting in 

accordance with Section 385 of the Companies Act 1985. 

Approved by the Directors on 25 August 2004. 

and signed on their behalf by 

David L Moffett 


Welsh Rugby Union Limited 

40


Financial Statements 

PROFIT & LOSS ACCOUNTS - 13 MONTH PERIOD ENDED 31 MAY 2004 

Group Group Company Company 

2004 2003 2004 2003 

£ £ £ £ 

TURNOVER (note 2) 30,826,577 30,348,901 19,510,923 19,308,725 

Direct Operating Costs (20,817,699) (21,536,163) (13,394,438) (13,752,696) 

GROSS PROFIT 10,008,878 8,812,738 6,116,485 5,556,029 

Administrative Expenses (note 3) (6,512,896) (4,870,026) (5,374,145) (5,470,315) 

Other Operating Income 305,074 275,000 305,074 275,000 

OPERATING PROFIT (note 3) 3,801,056 4,217,712 1,047,414 360,714 

Interest Receivable and Similar Income (note 6) 810,803 242,612 810,803 242,435 

Interest Payable and Similar Charges (note 7) (3,357,204) (2,875,450) (396,778) (200,902) 

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 1,254,655 1,584,874 1,461,439 402,247 

Tax Charge on Profit on Ordinary Activities (note 8) (112,416) (338,394) (112,416) (338,394) 

PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION BEFORE EXTRAORDINARY ITEMS 1,142,239 1,246,480 1,349,023 63,853 

EXTRAORDINARY ITEM (1) (1,944,996) (1) (1,944,996) 

PROFIT/(LOSS) ON ORDINARY ACTIVITIES AFTER 1,142,238 (698,516) 1,349,022 (1,881,143) 

TAXATION AND EXTRAORDINARY ITEMS 

Financial Support to Clubs and Affiliated Organisations (note 9) (775,406) (1,117,560) (775,406) (1,117,560) 

Dragons Rugby Trust (note 9) (491,488) (783,119) (491,488) (783,119) 

(DEFICIT)/RETAINED PROFIT FOR THE FINANCIAL PERIOD (124,656) (2,599,195) 82,128 (3,781,822) 

Notes: 

a) All activities of the group are classed as continuing, other than as disclosed in note 3(c). 

b) There are no recognised gains or losses other than as disclosed in the Profit and Loss Account above. 

c) The comparative figures are for the 12 months ended 30 April 2003. 

41



BALANCE SHEETS AS AT 31 MAY 2004 



FIXED ASSETS £ £ £ £ 

Tangible Assets (note 10) 144,823,872 148,498,894 36,290,715 36,406,340 

Investments (note 11) 5,505 5,004 55,507 55,058 

144,829,377 148,503,898 36,346,222 36,461,398 

CURRENT ASSETS 

Stocks (note 12) - 274,741 - 262,915 

Debtors (note 13) 11,285,250 11,953,209 16,760,783 18,353,465 

Investments (note 14) 4,235,000 4,150,000 4,235,000 4,150,000 

Cash at Bank 1,998,516 1,251,387 1,998,516 1,244,621 

17,518,766 17,629,337 22,994,299 24,011,001 

CREDITORS 

Amounts Falling Due Within One Year (note 15 & 18) (32,336,279) (21,856,267) (24,230,794) (14,887,561) 

Deferred Income (note 16) (1,429,725) (3,475,658) - (460,000) 

Millennium Commission Grant (note 17) (1,196,000) (1,196,000) - - 

NET CURRENT (LIABILITIES)/ASSETS (17,443,238) (8,898,588) (1,236,495) 8,663,440 

TOTAL ASSETS LESS CURRENT LIABILITIES 127,386,139 139,605,310 35,109,727 45,124,838 

CREDITORS 

Amounts Falling Due After More Than One Year (note 15 & 18) (49,540,287) (58,916,106) (330,531) (9,503,466) 

Deferred Income (note 20) (1,410,514) (3,691,059) - (1,669,404) 

Millennium Commission Grant (note 21) (39,222,667) (40,518,334) - - 

Debentures (note 22) (31,881,600) (31,136,500) (31,881,600) (31,136,500) 

5,331,071 5,343,311 2,897,596 2,815,468 

PROVISION FOR LIABILITIES AND CHARGES 

Deferred Taxation (note 23) (975,950) (863,534) - - 

NET ASSETS 4,355,121 4,479,777 2,897,596 2,815,468 

RESERVES 

Profit and Loss Account (note 27) 2,040,632 2,165,288 287,450 205,322 

Other Reserves (note 27) 2,314,489 2,314,489 2,610,146 2,610,146 

MEMBERS FUNDS 4,355,121 4,479,777 2,897,596 2,815,468 

These financial statements were approved by the Directors on 25 August 2004 and are signed on their behalf by: 

David F Pickering 

Chairman 


David L Moffett 



42



GROUP CASHFLOW STATEMENT - 13 MONTH PERIOD ENDED 31 MAY 2004 


£ £ £ £ 

NET CASHFLOW FROM OPERATING ACTIVITIES (note 28) 3,242,310 2,704,629 

RETURNS ON INVESTMENTS & SERVICING OF FINANCE 

Interest Received 810,803 242,612 

Interest Paid (3,096,080) (2,937,464) 

Net Cash (Outflow) From Returns on Investments and Servicing of Finance (2,285,277) (2,694,852) 

TAXATION - 306,703 

CAPITAL EXPENDITURE 

Purchase of Tangible Fixed Assets (19,145) (798,346) 

Purchase of Current Asset Investments (85,000) - 

Purchase of Fixed Asset Investments (502) (5,000) 

Net Cash (Outflow) from Capital Expenditure (104,647) (803,346) 

DISTRIBUTIONS 

Financial Support to Clubs and Affiliated Organisations (775,406) (1,117,560) 

Dragons Rugby Trust (491,488) (783,119) 

Net Cash (Outflow) from Distributions (1,266,894) (1,900,679) 

NET CASH (OUTFLOW) BEFORE USE OF 

LIQUID RESOURCES AND FINANCING (414,508) (2,387,545) 

MANAGEMENT OF LIQUID RESOURCES 

Movement of Short Term Deposits - - 

Net Cash (Outflow) from management of liquid resources - - 

FINANCING 

Movement of Bank Loans, Debenture Loans & Other Financing (110,674) (109,599) 

New Short Term Loans - 339,018 

Capital Element of Finance Lease and Hire Purchase Repayments (538,757) (386,852) 

Debentures 745,100 817,504 

Net Cash Inflow from Financing 95,669 660,071 

DECREASE IN CASH (note 29) (318,839) (1,727,474) 

43


Notes to the Financial Statements 

1 ACCOUNTING POLICIES 

Basis of Accounting: 

The financial statements have been prepared under the historical cost convention, and in accordance with applicable accounting 

standards. The accounts have been prepared on bases consistent with the previous year. The group accounts are prepared by 

consolidating the accounts of the parent undertaking (the company) and its subsidiary undertakings. The major subsidiary 

undertaking is disclosed in Note 30. 

Turnover: 

The turnover shown in the Profit and Loss Account represents amounts invoiced during the period, exclusive of Value Added Tax. 

Depreciation: 

Depreciation is calculated so as to write-off the cost of an asset, less its estimated residual value, over the useful economic life of 

that asset as follows: 

Stadium: 2% - 5% per annum. 

Fixtures, Fittings and Office Equipment: 20%-25% per annum. 

In accordance with SSAP21, assets held under finance leases are depreciated over the expected useful life of the related asset 

unless the asset does not necessarily enter the ownership of the group at the end of the lease period, in which case the asset is 

depreciated over the shorter of its economic useful life and the period of the lease. 

Investments: 

Fixed asset investments are disclosed at cost less any provision for impairment. 

Joint Venture: 

Vale Indoor Arena Ltd. is controlled equally by the Company and another non-connected company. Accordingly it has been treated 

as a joint venture in accordance with FRS9 Associates and Joint Ventures . 

Grants Receivable: 

In accordance with FRS5, grants receivable are disclosed as deferred income within notes and and are being released to the 

Profit and Loss Account by installments over the expected life of the related asset. 

Accruals and Deferred Income: 

a) Deposits in Advance: 

Monies received in advance for Boxes and Club Seats have been treated as deferred income and will be released to the profit 

and loss account over the period of the rental. 

b) Sponsorship: 

Monies received in relation to sponsorship and royalties are released to the Profit and Loss Account over the period of each 

individual agreement. 

Operating Lease Agreements: 

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are 

charged against profits as incurred. 

44



Pension Costs: 

The company operates a defined contribution pension scheme for employees. Contributions payable for the period are charged in 

the profit and loss account. 

The company also operates a defined benefit pension scheme. The assets of the scheme are held separately from those of the 

Company. The regular pension cost is charged to the profit and loss account and is based on the expected pension costs over the 

service lives of the employees. Contributions to the pension plan are paid according to the advice of the actuaries. 

Deferred Taxation: 

A provision for deferred tax is made in so far as a liability arose as a result of transactions that had occurred by the Balance 

Sheet date and gave rise to an obligation to pay more tax in future. Deferred tax liabilities have been discounted as appropriate. 

This is in accordance with the requirements of FRS 19 (Deferred Taxation). 

45



2 TURNOVER 

The turnover and profit before tax are attributable to the principal activities of the company. An analysis of turnover is given below:- 



£ £ £ £ 

United Kingdom 30,826,577 30,348,901 19,510,923 19,308,725 

Turnover is made up as follows:- Group Group Company Company 


£ £ £ £ 

Match Income 18,192,609 18,362,460 18,192,609 18,017,242 

Sponsorship 1,835,664 2,162,592 1,316,942 1,290,204 

Event Income 5,723,226 4,352,054 - - 

Boxes and Club Seats 4,341,889 4,576,100 - - 

Football Trust 500,000 500,000 - - 

Other Revenue Income 233,189 395,695 1,372 1,279 

30,826,577 30,348,901 19,510,923 19,308,725 

3 OPERATING PROFIT 



(a) Operating Profit is Stated after Charging/(Crediting) £ £ £ £ 

Depreciation 3,694,167 3,429,977 162,500 157,611 

Release of Millennium Commission Grant (1,295,667) (1,196,000) - - 

Auditor’s Remuneration 

Audit 33,000 33,000 17,000 16,000 

Other 25,000 22,000 19,000 20,000 

Operating Lease Costs 

Plant and Equipment - 5,880 - - 

(b) Exceptional Item 

During the period, the new management conducted a detailed review of amounts owed to/by member clubs and organisations associated with the company. As a result of this review a 

net provision of £28,000 was provided against the profits of the company within the period. 

(c) Discontinued Activity 

Gowerpark Ltd, previously a 100% subsidiary of the Welsh Rugby Union Ltd., was placed into liquidation in August 2003 prior to the commencement of the playing season. For the year 

ended 30 April 2003, the turnover of the subsidiary totalled £1,937,061 and its operating profit amounted to £44,894. 

(d) Administration Expenses 

The comparative Group figures are stated net of a rate rebate to the Millennium Stadium Plc. of £1.1m. 

46



4 PARTICULARS OF EMPLOYEES 

The aggregate payroll costs were: 



£ £ £ £ 

Wages and Salaries 4,152,629 4,926,627 3,142,424 2,412,928 

Social Security Costs 437,672 469,332 345,087 232,176 

Other Pension Costs 175,274 159,890 133,955 113,511 

The average number of employees and non-executive directors of the group in aggregate, during the period was: 

Management and Administration 18 49 

Development of The Game 24 24 

Players, Coaches and Management 51 86 

Marketing 9 12 

Stadium 41 40 

In addition to the above the Group employs stewards and others for events as and when required. 

4,765,575 5,555,849 3,621,466 2,758,615 

143 211 



£ £ £ £ 

5 DIRECTORS EMOLUMENTS 

Directors’ Aggregate Emoluments 

Management Services 184,221 92,676 82,200 53,492 

Any income earned by Directors for representing the group on other bodies for rugby related matters is credited directly to the group. 



£ £ £ £ 

6 INTEREST RECEIVABLE AND SIMILAR INCOME 

Bank Interest 397,828 177 397,828 - 

Royalty Income 412,975 242,435 412,975 242,435 

810,803 242,612 810,803 242,435 

During the year ended 30 April 2003 the company conducted a detailed review of the records of debentures issued which resulted in a reduction in the recorded liability to debenture holders. 

Further analysis has revealed that this amount relates to interest received on debenture monies and accordingly interest earned both in the prior year and the current periods are included in 

the above income. 

47



7 INTEREST PAYABLE AND SIMILAR CHARGES 



£ £ £ £ 

Bank Interest 3,229,227 2,763,806 382,286 193,554 

Finance Lease and Hire Purchase Agreements 127,977 111,644 14,492 7,348 

8 TAX CHARGE ON PROFIT ON ORDINARY ACTIVITIES 

3,357,204 2,875,450 396,778 200,902 



£ £ £ £ 

Corporation Tax based on the results for the period at 30% (2003: 30%) - - - - 

Deferred Tax Charge (note 23) 112,416 338,394 112,416 338,394 

There is no charge for Corporation Tax for the period due to the availability of group relief. 

9 FINANCIAL SUPPORT 

112,416 338,394 112,416 338,394 



£ £ £ £ 

Financial Support to Clubs and Affiliated Organisations 775,406 1,117,560 775,406 1,117,560 

Dragons Rugby Trust 491,488 783,119 491,488 783,119 

1,266,894 1,900,679 1,266,894 1,900,679 

48



10 TANGIBLE FIXED ASSETS 

GROUP Stadium Land and Buildings Plant and Machinery Fixtures and Fittings Total 

(note e) 

£ £ £ £ £ 

COST 

At 1 May 2003 123,590,357 36,166,347 146,336 826,826 160,729,866 

Additions 69,667 46,875 - - 116,542 

Disposals in period - - (108,346) (1,810) (110,156) 

AT 31 MAY 2004 123,660,024 36,213,222 37,990 825,016 160,736,252 

DEPRECIATION 

At 1 May 2003 11,629,390 80,616 14,621 506,345 12,230,972 

Charge for the period 3,527,550 86,667 4,117 75,833 3,694,167 

Depreciation on disposals - - (11,321) (1,438) (12,759) 

AT 31 MAY 2004 15,156,940 167,283 7,417 580,740 15,912,380 

NET BOOK VALUE 

AT 31 MAY 2004 108,503,084 36,045,939 30,573 244,276 144,823,872 

AT 30 APRIL 2003 111,960,967 36,085,731 131,715 320,481 148,498,894 

COMPANY Stadium Land and Buildings Plant and Machinery Fixtures and Fittings Total 

(note e) 

£ £ £ £ £ 

COST 

At 1 May 2003 - 36,166,347 - 809,473 36,975,820 

Additions - 46,875 - - 46,875 

AT 31 MAY 2004 - 36,213,222 - 809,473 37,022,695 

DEPRECIATION 

At 1 May 2003 - 80,616 - 488,864 569,480 

Charge for the period - 86,667 - 75,833 162,500 

AT 31 MAY 2004 - 167,283 - 564,697 731,980 

NET BOOK VALUE 

AT 31 MAY 2004 - 36,045,939 - 244,776 36,290,715 

AT 30 APRIL 2003 - 36,085,731 - 320,609 36,406,340 

Notes: 

(a) Total grant receivable from the Millennium Commission amounted to £46,000,000. This is the total amount due from the Millennium Commission to part fund the construction of 

the Stadium. 

(b) The total interest capitalised within the Stadium cost is £4,646,155 (2003: £4,646,155). 

(c) The net book value of fixed assets includes £1,387,205 (2003: £1,595,412) in respect of assets held under finance lease and hire purchase agreements. The depreciation charge 

in the period on these assets was £130,207 (2003: £112,518). 

(d) The group has no capital commitments at the period end (2003: £-). 

(e) Land and buildings is owned freehold other than an element with a cost of £9,100,000 upon which there is an agreement to lease over 999 years. 

49



11 INVESTMENTS 

Investments Group Investment in a Total 

in Clubs Undertakings Joint Venture 

(note a) (note b) (note c) 

£ £ £ £ 

GROUP 

At 1 May 2003 4 - 5,000 5,004 

Additions - - 502 502 

Disposals - - - - 

Impairment During Period (1) - - (1) 

AT 31 MAY 2004 3 - 5,502 5,505 

COMPANY 

At 1 May 2003 4 50,054 5,000 55,058 

Additions - 2 502 504 

Disposals - (54) - (54) 

Impairment During Period (1) - - (1) 

AT 31 MAY 2004 3 50,002 5,502 55,507 

Notes: 

(a) Investment in Clubs 

The group owns special shares in four member clubs; Llanelli RFC, Swansea RFC, Ebbw Vale RFC and Pontypridd RFC (in liquidation). These companies are incorporated in England & 

Wales. 

(b) Group Undertakings 

The company holds 100% of the issued ordinary share capital of Millennium Stadium plc. Gowerpark Limited was placed in liquidation during the period. Island Farm Development 

Ltd., a 100% owned subsidiary, was incorporated during the period. 

(c) Other Investments 

Vale Indoor Arena Ltd is controlled equally by the Welsh Rugby Union and another, non-connected company. Accordingly it has been treated as a joint venture. The company also 

owns strategic investments in European Rugby Cup Ltd, Six Nations Ltd & Dragons Rugby Ltd. 

50



12 STOCKS 



£ £ £ £ 

Stocks - 274,741 - 262,915 

13 DEBTORS 



£ £ £ £ 

Trade Debtors 7,230,340 4,520,072 3,722,936 3,010,080 

Amounts due from Subsidiary Undertakings - - 9,715,016 9,631,483 

Loans to Clubs 1,011,153 868,194 1,011,153 868,194 

Other Debtors 696,868 996,432 60,090 327,503 

Prepayments and Accrued Income 2,346,889 5,568,511 2,251,588 4,516,205 

11,285,250 11,953,209 16,760,783 18,353,465 

The amount due from subsidiary undertakings is due after more than one year. 

14 CURRENT ASSET INVESTMENT 

Group 

Company 

£ £ 

COST 

AT 1 MAY 2003 4,150,000 4,150,000 

Additions during the period 85,000 85,000 

AT 31 MAY 2004 4,235,000 4,235,000 

This represents certain contiguous areas surrounding the Millennium Stadium. 

15 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 



£ £ £ £ 

Bank Overdrafts (note 25) 10,269,261 9,203,293 7,109,613 6,494,060 

Bank Loans (note 25) 110,000 104,035 110,000 104,035 

Trade Creditors 3,636,154 2,866,322 2,614,353 1,984,876 

Payments Received on Account 1,968,186 1,992,771 - - 

Interest Payable 533,440 272,316 - - 

Obligations under Finance Leases and Hire Purchase Agreements (note 19) 234,562 444,876 113,823 130,600 

Tax and Social Security 347,806 376,891 258,834 195,372 

Value Added Tax 323,235 571,421 (520,406) 337,514 

Other Creditors 576,812 1,086,436 576,812 947,519 

Accruals 14,336,823 4,937,906 13,967,765 4,693,585 

32,336,279 21,856,267 24,230,794 14,887,561 

The bank loan is repayable on demand. The Directors consider that the disclosure of the loan as being repayable after more than one year is appropriate given the prevailing 

circumstances (note 18). The company expects to conclude an agreement with the bank in the coming period on a repayment schedule. 

Accruals also include a liability to a third party which arose upon completion of the Millennium Stadium. The accrual is technically repayable on demand and so is disclosed as a creditor 

falling due within 1 year. The directors expect to conclude an agreement with the third party in the coming period on a repayment schedule. 

51



16 DEFERRED INCOME : AMOUNTS FALLING DUE WITHIN ONE YEAR 



£ £ £ £ 

Sponsorship 350,908 1,157,885 - 460,000 

Football Trust Grant - 500,000 - - 

Deposits in Advance 1,078,817 1,817,773 - - 

1,429,725 3,475,658 - 460,000 

17 MILLENNIUM COMMISSION GRANT: Group Group Company Company 

AMOUNT TO BE RELEASED TO 2004 2003 2004 2003 

PROFIT & LOSS WITHIN ONE YEAR £ £ £ £ 

Grant 1,196,000 1,196,000 - - 

Grant released to the profit and loss account this period totalled £1,295,667 (2003: £1,196,000). Deferred grants of £40,418,667 (2003: £41,714,334) will be released to the 

Profit and Loss Account in future years. 

52



18 CREDITORS: 

AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Group Group Company Company 


£ £ £ £ 

Bank Loans (note 25) 49,443,301 49,559,940 273,301 389,940 

Accruals - 8,930,737 - 8,930,737 

Obligations under Finance Leases and Hire Purchase Agreements (note 19) 96,986 425,429 57,230 182,789 

49,540,287 58,916,106 330,531 9,503,466 



19 OBLIGATIONS UNDER FINANCE 

LEASES AND HIRE PURCHASE AGREEMENTS Group Group Company Company 


£ £ £ £ 

Amounts Due Within One Year 234,562 444,876 113,823 130,600 

Amounts Due Between 1 and 2 Years 96,986 283,616 57,230 130,600 

Amounts Due Between 2 and 5 Years - 141,813 - 52,189 

331,548 870,305 171,053 313,389 

20 DEFERRED INCOME: 

AMOUNTS TO BE RELEASED TO PROFIT & LOSS Group Group Company Company 

ACCOUNT AFTER MORE THAN ONE YEAR 2004 2003 2004 2003 

£ £ £ £ 

Sponsorship 759,833 2,687,220 - 1,669,404 

Deposits in Advance 650,681 1,003,839 - - 

1,410,514 3,691,059 - 1,669,404 

21 MILLENNIUM COMMISSION GRANT: 

AMOUNT TO BE RELEASED TO PROFIT & LOSS Group Group Company Company 

ACCOUNT AFTER MORE THAN ONE YEAR 2004 2003 2004 2003 

£ £ £ £ 

Grant 39,222,667 40,518,334 - -- 



53



22 DEBENTURES 



£ £ £ £ 

Balance Brought Forward 31,136,500 30,318,996 31,136,500 30,318,996 

Additions 

Jubilee Debentures 682,750 1,089,350 682,750 1,089,350 

Upgrade of Debentures 67,000 1,000 67,000 1,000 

Redeemed Debentures (4,650) (33,000) (4,650) (33,000) 

Adjustment (note a) - (239,846) - (239,846) 

31,881,600 31,136,500 31,881,600 31,136,500 


The debenture loans are repayable as follows : 2004 2003 2004 2003 

£ £ £ £ 

2021 362,500 366,150 362,500 366,150 

2024 24,586,600 24,637,350 24,586,600 24,637,350 

2027 1,837,100 1,089,350 1,837,100 1,089,350 

2028 350,000 350,000 350,000 350,000 

2035 1,799,000 1,800,000 1,799,000 1,800,000 

2050 2,946,400 2,893,650 2,946,400 2,893,650 

31,881,600 31,136,500 31,881,600 31,136,500 

note (a) 

Last year the company conducted a detailed review of the records of debentures issued which resulted in a reduction in the recorded liability to debenture holders. Further analysis has 

revealed that this amount relates to interest received on debenture monies and accordingly interest earned both in prior and the current period are included in the profit and loss account 

23 DEFERRED TAXATION 

The amount of Deferred Tax Provided in the Accounts is:- 2004 2003 

£ £ 

Capital Allowances in excess of Depreciation 9,161,381 9,367,202 

Other Timing Differences (7,887,490) (8,231,795) 

Undiscounted Provision for Deferred Tax 1,273,891 1,135,407 

Discount (297,941) (271,873) 

Discounted Provision for Deferred Tax 975,950 863,534 

Provision at Start of Period 863,534 525,140 

Deferred Tax Charge in Profit and Loss Account for Period 112,416 338,394 

Provision at End of Period 975,950 863,534 

54



24 FRS 17 RETIREMENT BENEFITS 

This relates to The Welsh Rugby Union Limited Senior Employees’ Pension Scheme, which is not the only scheme of the Company. 

The scheme is a defined benefit type scheme. 

The most recent actuarial valuation for accounting purposes was at 1 May 2001. 

The contributions made in the period 1 May 2003 to 31 May 2004 were at a rate of 12.7% of Pensionable Salaries for the Company and 2% of 

Pensionable Salaries for the members. Insurance premiums for death in service benefits were payable in addition. The level of future contributions 

will be calculated after taking advice from the actuaries. 

The assumptions used for calculating the liabilities as at 31 May 2004 were as follows: 

Inflation: 2.9% (2003: 2.6%) 

Salary Escalation: 4.9% (2003: 4.6%) 

Increase to Pensions in Payments: 2.9% (if subject to inflation) (2003: 2.5%) 

Increases in Deferment: 2.9% (2003: 2.6%) 

Discount Rate (pre and post retirement): 5.7% (2003: 5.3%) 

The fair value of the assets at 31 May 2004 amounts to £1,236,000 (2003: £1,275,000) and the expected rate of return is 5.6% (2003: 5%). 

The expected rate of return for each category of asset is: 

Equities: 9.1% (2003: 9.1%) 

Property: 7.9% (2003: 7.6%) 

Bonds: 5.3% (2003: 4.7%) 

Pension Contracts: 5.6% (2003: 6.4%) 

Cash and Other Assets: 4.3% (2003: 3.8%) 

The scheme has a number of purchased annuities in respect of past retirements. These are understood to fully match the associated liabilities and 

so have been excluded from both the assets and liabilities. 

The scheme has AVC assets invested separately with Clerical Medical. These are understood to fully match the relevant liabilities and so have been 

excluded from both the assets and liabilities. 

The surplus as at 31 May 2004 was £107,000 (2003: Deficit - £10,000) being the difference between the fair value of the assets of 

£1,236,000 (2003: £1,275,000) and the present value of the liabilities on the above assumptions of £1,129,000 (2003: £1,285,000). 

The movement in the surplus/deficit of the scheme may be analysed further as follows: 

£ 

Deficit in scheme at 1 May 2003 (10,000) 

Movement in period: 

Current Service Cost (excluding death in service benefits) (104,000) 

Contributions 97,000 

Other Financial Costs (expected return on the assets less interest cost) (3,000) 

Actuarial Gain 127,000 

Surplus in scheme at 31 May 2004 107,000 

55



25 CONTINGENCIES 

A cross guarantee has been given to Barclays Bank plc and the Millennium Commission to secure borrowings and grants by Millennium Stadium 

plc and its parent undertaking, the Welsh Rugby Union Limited. The total of the borrowings at 31 May 2004 amounted to £57,824,046 

(2003: £57,615,881) of which £5,494,398 (2003: £5,743,414) related to the Welsh Rugby Union Limited and £52,329,648 (2003: 

£51,872,467) related to Millennium Stadium plc. The bank loan is re-payable on demand. However, the Directors consider that the disclosure of 

the loan in note 15 and 18 as being repayable after more than one year is appropriate given the prevailing circumstances. 

All Liabilities to Barclays Bank plc and the Millennium Commission are secured by a fixed charge on all properties and other assets owned by the 

Welsh Rugby Union Limited and Millennium Stadium plc. 

A guarantee has been given to Barclays Bank plc in respect of amounts due on loans made to clubs under the Financial Aid to Clubs Scheme. The 

balance, including accrued interest outstanding as at 31 May 2004 amounted to £3,838,739 (2003: £3,755,907). 

Legal action was taken whereby a claim has been made against a match official by a player injured whilst playing. The Court of Appeal has found 

against the company. As a consequence, the total extent of insurance cover available to the company has been paid out. It is not yet possible to 

quantify any further amounts which may become due and payable. 

26 COMPANY LIMITED BY GUARANTEE 

The liability of the members is limited. 

Every member club of the company undertakes to contribute such amounts as may be required (not exceeding £1) to the company’s assets if it 

should be wound up while the club is a member, or within one year after the club ceases to be a member, for payment of the company’s debts 

and liabilities contracted before the club ceases to be a member. 

27 RESERVES 

GROUP Profit and Loss Account Other Reserves Total 

£ £ £ 

Opening Balance 2,165,288 2,314,489 4,479,777 

Profit for the Financial Period 1,142,238 - 1,142,238 

Financial Support to Clubs and other Affiliated Organisations (775,406) - (775,406) 

Dragons Rugby Trust (491,488) - (491,488) 

2,040,632 2,314,489 4,355,121 

COMPANY Profit and Loss Account Other Reserves Total 

£ £ £ 

Opening Balance 205,322 2,610,146 2,815,468 

Profit for the Financial Period 1,349,022 - 1,349,022 

Financial Support to Clubs and other Affiliated Organisations (775,406) - (775,406) 

Dragons Rugby Trust (491,488) - (491,488) 

287,450 2,610,146 2,897,596 

56



28 RECONCILIATION OF OPERATING PROFIT TO NET CASHFLOW FROM OPERATING ACTIVITIES 2004 2003 

£ £ 

Operating Profit 3,801,056 4,217,712 

Depreciation 3,694,167 3,429,977 

Release of Millennium Commission Grant (1,295,667) (1,196,000) 

Release of Football Trust Grant (500,000) (500,000) 

Movement in Stocks 274,741 (192,507) 

Movement in Debtors 667,959 (2,054,803) 

Movement in Creditors 426,532 1,298,079 

Movements in Deferred Income (3,826,478) (2,297,829) 

NET CASH INFLOW FROM OPERATING ACTIVITIES 3,242,310 2,704,629 

29 ANALYSIS OF CHANGES IN NET DEBT At 1 May At 31 May 

2003 Cashflows 2004 

£ £ £ 

Cash 1,251,387 747,129 1,998,516 

Bank Overdrafts (9,203,293) (1,065,968) (10,269,261) 

Decrease in Cash (7,951,906) (318,839) (8,270,745) 

Liquid Resources 0 0 0 

Other Loans Due Within One Year (104,035) (5,965) (110,000) 

Other Loans Due After One Year (80,696,440) (628,461) (81,324,901) 

NET (DEBT) (88,752,381) (953,265) (89,705,646) 

30 MAJOR SUBSIDIARY UNDERTAKING Percentage of Ordinary Principal 

Share Capital: 

Activities: 

Millennium Stadium plc (Note (a)) 100% Operation of 

National Stadium 

(Incorporated in England & Wales) 

Notes: 

(a) Of the 50,001 issued Share Capital, one share is owned by the City and County of Cardiff. 

This share does not grant to the owner any dividends, voting rights nor any rights to amounts receivable upon winding up. 

57


Independent Auditors’ Report to the Members of 

The Welsh Rugby Union Limited 

We have audited the financial statements which comprise the profit and loss account, the 

balance sheet, the cashflow statement and the related notes which have been prepared 

under the historical cost convention and the accounting policies set out in the statement of 

accounting policies. 

This report is made solely to the company’s members, as a body, in accordance with 

section 235 of the Companies Act 1985. Our audit work has been undertaken so that we 

might state to the company’s members those matters we are required to state to them in 

an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do 

not accept or assume responsibility to anyone other than the company and the company’s 

members as a body, for our audit work, for this report or the opinions we have formed. 

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS 

The directors’ responsibilities for preparing the annual report and financial statements in 

accordance with applicable United Kingdom law and accounting standards are set out in 

the Statement of Directors’ responsibilities. Our responsibilities, as independent auditors, 

are established in the United Kingdom by statute, the Auditing Practices Board, and our 

profession’s ethical guidance. 

We report to you our opinion as to whether the financial statements give a true and fair 

view and are properly prepared in accordance with the United Kingdom Companies Act. We 

also report to you if, in our opinion, the directors’ report is not consistent with the financial 

statements, if the Company has not kept proper accounting records, if we have not 

received all the information and explanations we require for our audit, or if information 

specified by law regarding Directors’ remuneration and transactions with the Group is not 

disclosed. 

BASIS OF AUDIT OPINION 

We conducted our audit in accordance with Auditing Standards issued by the Auditing 

Practices Board. An audit includes examination, on a test basis, of evidence and 

judgements made by the directors in the preparation of the financial statements, and of 

whether the accounting policies are appropriate to the Group’s circumstances, consistently 

applied and adequately disclosed. 

We planned and performed our audit so as to obtain all the information and explanations 

which we considered necessary in order to provide us with sufficient evidence to give 

reasonable assurance that the financial statements are free from material misstatement, 

whether caused by fraud or other irregularity or error. In forming our opinion we also 

evaluated the overall adequacy of the presentation of information in the financial 

statements. 

GOING CONCERN 

We have considered whether it is appropriate for the accounts of the Group to be prepared 

on a going concern basis. The Directors have been given assurances by the bank that it is 

their intention to support the Company and its Group for at least the next 12 months. As a 

result, the accounts have been prepared on a going concern basis. 

AUDIT OPINION 

In our opinion the financial statements give a true and fair view of the state of affairs of 

the Company and the Group as at 31 May 2004 and of the result and cash flows of the 

Group for the period then ended and have been properly prepared in accordance with the 

Companies Act 1985. 

Walter Hunter & Co. 

Chartered Accountants & Registered Auditor 

24 Bridge Street 

Newport 

South Wales 

NP20 4SF 


58


Contents : 

Directors’ Report 60 

Millennium Stadium plc Financial Statements 

for the Period Ended 31 May 2004 

Auditors’ Report to the 

Shareholders 62 

Profit and Loss account 63 

Balance Sheet 64 

Cash Flow Statement 65 

Notes to the Financial 

Statements 66 

Registered Office: 

Golate House 

101 St. Mary Street 

Cardiff CF10 1GE 

Registered in England & Wales 

Registration No: 3176906 

59



The Directors present their report and the financial statements of the Company for the period ending 31st May, 2004 

PRINCIPAL ACTIVITIES AND BUSINESS REVIEW 

The Millennium Stadium reached it’s fifth birthday on June 26 2004. In that time it has hosted 130 major events and attracted 

more than 6 million visitors. As well as providing the Welsh National Rugby and Soccer sides with an inspirational home, the 

stadium once again hosted the FA Cup, Carling Cup and Powergen Cup finals as well as the Community Shield. The Nationwide 

league play-off finals were also played in May. The British Speedway Grand Prix was another major attraction, along with new 

events such as Supercross. 

A full report on the Stadium is carried on page 13 of the WRU Annual Report. 

SUPPLIERS 

The Company endeavours to settle and agree terms of payment with suppliers prior to placing business. This ensures that 

suppliers are aware of the terms of payment in advance. It is company policy to pay to the agreed terms. For the period ended 

31 May 2004, the average payment period for trade creditors was 45 days. 

RESULTS 

The results of Millennium Stadium plc for the 13-month period ending 31 May, 2004 show a loss of £586,773 against a profit 

of £1,153,401 in 2002/2003. However, it is worth remembering that the 2003 results included a one-off rates rebate of 

£1.1 m. Net assets at 31 May, 2004 totalled £1,507,526 compared to £2,094,299 at 30 April, 2003. 

There was an increase in turnover for the year of £888,284 to £11,315,654, although this was due mainly to the change in 

the accounting period bringing in the month of May which included the FA Cup final, the Powergen Challenge Cup final and the 

Football League Play-Off finals. 

Now five years old, the Stadium hosted an increased number of events and was filled to capacity for a number of high profile 

pop concerts during the period. A number of the initial hospitality box and club seat agreements have now expired and the rich 

portfolio of events will be key in attracting customers, both new and old, to take up licences. 

Whilst turnover has increased, so too have costs - more money has been spent on maintaining the facility, a provision of 

£300,000 has been made in relation to the trade debts, while the figures include an additional month's depreciation charge 

(net of release of Millennium Commission Grant). 

The indebtedness of Millennium Stadium plc continues to be significant and a rise in interest rates coupled with an additional 

month's charges, contributed to an 11% rise in interest costs over the previous year to £2,960,426. 

Net assets for the Stadium totalled £1,507,626 at 31 May, 2004 (£2,094,299 on 30 April, 2003). As a result of the events 

staged at the Stadium in May 2004, there has been an increase in year-end debtors. The net debt increased to £52,329,648 

(£51,879,233 in 2003), comprising of loans of £49,170,000 and overdrafts of £3,159,648 

The unamortized element of the Millennium Commission grant has reduced to £40,418,667 whilst no further amounts are due 

in relation to the Football Trust Grant. 

60


DIRECTORS 

The directors who served during the period were as follows: 

Beynon M*; Hewitt K J*; Mrs Conway H L; Michael B* (resigned 26/7/03); Davies B; Pickering D F*; Lord Faulkner of 

Worcester; Thomas S M; Edwards G* (appointed 7/8/03); Goodway R; Vaux A T* (resigned 26/7/03); Griffiths GS* 

(resigned 26/7/03); Moffett D L* (appointed 26/7/03); Davies M R* (appointed 7/8/03). 

The above directors, marked with an asterisk, were also directors of The Welsh Rugby Union Limited during the period ended 

31 May 2004. 

DIRECTORS’ RESPONSIBILITIES 

Company Law requires the directors to prepare financial statements for each financial year which give a true and fair view of the 

state of affairs of the company at the end of the period and of the profit and loss for the period then ended. 

In preparing those financial statements, the directors are required to: 

- select suitable accounting policies, as described on page 66, and then apply them consistently; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and 

explained in the financial statements; 

- prepare financial statements on the ongoing basis unless it is inappropriate to presume that the company will continue 

in business 

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time, the 

financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 

1985. The directors are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for 

the prevention and detection of fraud and other irregularities 

AUDITORS 

A resolution to re-appoint Walter Hunter & Co as auditors for the ensuing year will be proposed at the Annual General Meeting in 

accordance with Section 385 of the Companies Act, 1985 

Approved by the directors on 25 August 2004 

and signed on their behalf by 

David L Moffett, Millennium Stadium plc 

Registered office: 

Golate House 

101 St Mary Street 

Cardiff 

CF10 1GE 

61


INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF MILLENNIUM STADIUM PLC 

We have audited the financial statements which comprise the profit and loss account, the balance sheet, the cashflow statement 

and the related notes which have been prepared under the historical cost convention and the accounting policies set out in the 

statement of accounting policies. 

This report is made solely to the company's members, as a body, in accordance with section 235 of the Companies Act 1985. 

Our audit work has been undertaken so that we might state to the company's members those matters we are required to state 

to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume 

responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report or 

the opinions we have formed. 

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS 

The directors' responsibilities for preparing the annual report and financial statements in accordance with applicable United 

Kingdom law and accounting standards are set out in the Statement of Directors' responsibilities. 

Our responsibilities, as independent auditors, are established in the United Kingdom by statute, the Auditing Practices Board and 

our profession's ethical guidance. 

We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in 

accordance with the United Kingdom Companies Act. We also report to you if, in our opinion, the directors' report is not 

consistent with the financial statements, if the company has not kept proper accounting records, if we have not received all the 

information and explanations we require for our audit, or if information specified by law regarding Directors’ remuneration and 

transactions with the Company is not disclosed. 

BASIS OF AUDIT OPINION 

We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes 

examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an 

assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and 

of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately 

disclosed. 

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in 

order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material 

misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall 

adequacy of the presentation of information in the financial statements. 

GOING CONCERN 

We have considered whether it is appropriate for the accounts of the Company to be prepared on a going concern basis. The 

Directors have been given assurances by the bank and the ultimate holding company that it is their intention to support the 

Company for at least the next 12 months. As a result, the accounts have been prepared on a going concern basis. 

AUDIT OPINION 

In our opinion the financial statements give a true and fair view of the company's state of affairs as at 31 May 2004 and of its 

result and cash flows for the period then ended and have been properly prepared in accordance with the Companies Act 1985. 

WALTER HUNTER & CO. 

Chartered Accountants & Registered Auditor 

24 Bridge Street 

Newport 

South Wales 

NP20 4SF 


62


Profit and Loss Account 

Period Ended 31 May 2004 

Period 

Year 

to 

to 

Note: 31 May 2004 30 April 2003 

£ £ 

TURNOVER 2 11,315,654 10,427,370 

Direct Operating Costs (5,187,261) (4,057,571) 

Depreciation less release of Millennium Commission Grant 3 (2,236,000) (2,065,547) 

GROSS PROFIT 3,892,393 4,304,252 

Administrative Expenses (1,518,740) (1,262,987) 

OPERATING PROFIT BEFORE EXCEPTIONAL ITEM 3 2,373,653 3,041,265 

Exceptional Item 

Rates Rebate 3(b) - 778,971 

OPERATING PROFIT AFTER EXCEPTIONAL ITEM 3 2,373,653 3,820,236 

Interest Payable and Similar Charges 6 (2,960,426) (2,666,835) 

(LOSS)/PROFIT ON ORDINARY ACTIVITIES BEFORE TAX (586,773) 1,153,401 

Tax on (Loss)/Profit on Ordinary Activities 7 - - 

(LOSS)/PROFIT FOR THE FINANCIAL PERIOD (586,773) 1,153,401 

Retained Profit brought forward 2,044,298 890,897 

RETAINED PROFIT CARRIED FORWARD 1,457,525 2,044,298 

The company has no recognised gains or losses other than the results for the period as set out above. 

All of the activities of the company are classed as continuing. 

The notes on pages 66 to 72 form part of these financial statements 

63


Balance Sheet as at 31 May 2004 

2004 2003 

£ £ £ £ 

Note: 

FIXED ASSETS 

Tangible Assets 8 108,533,157 111,995,157 

CURRENT ASSETS 

Debtors - Due Within One Year 10 4,239,482 3,137,475 

4,239,482 3,137,475 

Creditors - Due Within One Year 11 & 14 (8,105,485) (6,650,195) 

Deferred Income 12 (1,429,725) (3,015,658) 

Millennium Commission Grant 13 (1,196,000) (1,196,000) 

(10,731,210) (10,861,853) 

NET CURRENT LIABILITIES (6,491,728) (7,724,378) 

TOTAL ASSETS LESS CURRENT LIABILITIES 102,041,429 104,270,779 

Creditors - Due After More Than One Year 14 (58,924,772) (58,772,956) 

Deferred Income 16 (1,410,514) (2,021,656) 

Millennium Commission Grant 17 (39,222,667) (40,518,334) 

(99,557,953) (101,312,946) 

DEFERRED TAX 18 (975,950) (863,534) 

NET ASSETS 1,507,526 2,094,299 

CAPITAL AND RESERVES 

Called up Equity Share Capital 22 50,001 50,001 

Accumulated Profit 23 1,457,525 2,044,298 

NET ASSETS 1,507,526 2,094,299 

These financial statements were approved by the Directors on 25 August 2004 and are signed on their behalf by: 

David Pickering Chairman, Millennium Stadium plc 

64


Cash Flow Statement 


13 Month Period Year 

to 

to 

31 May 2004 30 April 2003 

£ £ £ £ 

Note 

NET CASH INFLOW FROM OPERATING ACTIVITIES 25 2,637,373 2,257,138 

RETURN ON INVESTMENTS & SERVICING OF FINANCE 

Interest Paid (2,699,302) (2,728,849) 

NET CASH (OUTFLOW) FROM RETURN ON 

INVESTMENTS AND SERVICING OF FINANCE (2,699,302) (2,728,849) 

TAXATION - - 

CAPITAL EXPENDITURE 

Acquisition of Fixed Assets (69,667) (128,450) 

NET CASH (OUTFLOW) FROM CAPITAL EXPENDITURE (69,667) (128,450) 

CASH (OUTFLOW) BEFORE USE OF 

LIQUID RESOURCES AND FINANCING (131,596) (600,161) 

MANAGEMENT OF LIQUID RESOURCES 

Movement in Short Term Deposits - - 

NET CASH (OUTFLOW) FROM MANAGEMENT OF LIQUID RESOURCES - - 

FINANCING 

Capital Element of Finance Lease and Hire Purchase Repayments (318,819) (300,409) 

CASH (OUTFLOW) FROM FINANCING (318,819) (300,409) 

(DECREASE) IN CASH 26 (450,415) (900,570) 

The notes on pages 66 to 72 form part of these financial statements 

65




1 ACCOUNTING POLICIES 

Basis of Accounting: 

These financial statements have been prepared under the historical cost convention and in accordance with applicable 

accounting standards. 

Going Concern: 

The Directors have been given suitable assurances from the bank and the ultimate parent undertaking and the financial 

statements are therefore prepared on the basis that the company is a going concern. The Directors have also prepared 

detailed budgets which indicate that funding will be adequate during the next 12 months. 

Turnover: 

The turnover shown in the Profit and Loss Account represents amounts invoiced during the period, exclusive of Value Added 

Tax. 

Depreciation: 

Depreciation is calculated so as to write-off the cost of an asset, less its estimated residual value, over the useful economic life 

of that asset as follows : 

Stadium: 2% - 5% straight line per annum 

Office equipment: 25% straight line per annum. 

In accordance with SSAP 21, assets held under finance leases are depreciated over the expected useful life of the related 

asset unless the asset does not necessarily enter the ownership of the group at the end of the lease period in which case the 

asset is depreciated over the shorter of its economic useful life and the period of the lease. 

Grants Receivable: 

In accordance with FRS 5, grants receivable are disclosed as deferred income within notes 13 and 17 to the accounts and are 

being released to the profit and loss account by instalments over the expected life of the related asset. 

Operating Lease Agreements: 

Rentals applicable to operating leases, where substantially all of the benefits and risks of ownership remain with the lessor, 

are charged against profits as incurred. 

Pension Costs: 

The company operates a defined contribution pension scheme. Contributions payable for the period are charged in the profit 

and loss account. 

The company also operates a defined benefit pension scheme. The assets of the scheme are held separately from those of the 

Company. The regular pension cost is charged to the profit and loss account and is based on the expected pension costs over 

the service lives of the employees. Contributions to the pension plan are paid according to the advice of actuaries. 

Accruals and Deferred Income: 

(a) Deposits in Advance 

Monies received in advance for Boxes and Club Seats have been treated as deferred income and will be released to the 

profit and loss account over the period of the rental. 

(b) Sponsorships and Royalties 

Monies received in relation to the sponsorships and royalties are released to the profit and loss account over the period of 

each individual agreement. 

Deferred Tax: 

A provision is made for deferred tax in so far as a liability or asset arose as a result of transactions that had occurred by the 

balance sheet date and gave rise to an obligation to pay more tax in future, or a right to pay less tax in future. Deferred tax 

liabilities recognised have been discounted as appropriate. This is in accordance with FRS19 (Deferred Tax). 

66



2 TURNOVER 

The turnover and profit before tax are attributable to the principal activities of the Company. An analysis of turnover is given below: 


£ £ 

Sponsorship and Royalties 518,722 764,494 

Events Income 5,666,612 4,349,759 

Boxes and Club Seats 4,341,889 4,576,100 

Football Trust Grant 500,000 500,000 

Other Revenue Income 288,431 237,017 

Profit before tax has not been analysed by activity. 

11,315,654 10,427,370 

3 OPERATING PROFIT 

(a) Operating profit is stated after charging/(crediting): 2004 2003 

£ £ 

Depreciation 3,531,667 3,261,547 


2,236,000 2,065,547 

Auditors' Remuneration - as auditors 15,000 14,000 

- non audit work 6,000 5,000 

(b) Exceptional Item 

Last year the company negotiated a significant reduction in the business rates charged on the Stadium. 

4 PARTICULARS OF EMPLOYEES 

The aggregate payroll costs were: 


£ £ 

Wages and Salaries 1,010,205 1,152,204 

Social Security Costs 92,585 97,308 

Other Pension Costs 41,319 46,379 

The average number of employees and directors, including non-executive directors, of the company during the period was: 

1,144,109 1,295,891 


Directors 11 11 

Management & Administration 9 18 

Marketing 5 5 

Stadium 41 40 

66 74 

In addition, the Company employs stewards and others for events as and when required. 

5 DIRECTORS’ EMOLUMENTS Period to Year to 

31 May 2004 30 April 2003 

£ £ 

Management Services 102,021 39,184 

67



6 INTEREST PAYABLE AND SIMILAR CHARGES 


£ £ 

Bank Interest 2,846,941 2,570,222 

Finance Leases and Hire Purchase Agreements 113,485 96,613 

2,960,426 2,666,835 

7 TAX ON PROFIT ON ORDINARY ACTIVITIES 


£ £ 

Corporation Tax Charge for the Period at 30% (2003: 30%) - - 

Deferred Tax Charge 112,416 338,394 

Group Relief Transfer (112,416) (338,394) 

- - 

8 TANGIBLE FIXED ASSETS Stadium Plant & Machinery Total 

£ £ £ 

Cost 

Cost as at 1 May 2003 123,590,357 54,804 123,645,161 

Additions in Period 69,667 - 69,667 

As at 31 May 2004 123,660,024 54,804 123,714,828 

Depreciation 

As at 1st May 2003 11,629,390 20,614 11,650,004 

Charge for the Period 3,527,550 4,117 3,531,667 

As at 31 May 2004 15,156,940 24,731 15,181,671 

Net Book Value As at 31 May 2004 108,503,084 30,073 108,533,157 

Net Book Value As at 30 April 2003 111,960,967 34,190 111,995,157 

Total grant receivable from the Millennium Commission amounted to £46,000,000. 

This is the total amount due from the Millennium Commission to part fund the construction of the Stadium. 

The total interest capitalised within the Stadium cost is £4,646,155 (2003: £4,646,155). 

Net book value of fixed assets includes £1,200,995 (2003: £1,283,790) in respect of assets held under finance lease and hire purchase agreements. The depreciation charge in the 

period on these assets was £82,795 (2003: £76,426). 

68



9 CAPITAL COMMITMENTS 

The Company has no capital commitments at the period end (2003: Nil) 


10 DEBTORS £ £ 

Due within one year: 

Trade Debtors 3,507,403 1,450,057 

Other Debtors 636,778 636,778 

Prepayments and Accrued Income 95,301 1,050,640 

4,239,482 3,137,475 

11 CREDITORS - AMOUNTS FALLING DUE WITHIN ONE YEAR 2004 2003 

£ £ 

Bank Overdraft (note 20) 3,159,648 2,709,233 

Bank Loan (note 20) - - 

Trade Creditors 1,021,801 977,953 

Event creditors 1,968,186 1,992,771 

Interest payable 533,440 272,316 

Obligations Under Finance Lease and Hire Purchase Agreements (note 15) 120,739 300,409 

Tax and Social Security 88,972 87,032 

Value Added Tax 843,641 167,145 

Accruals 369,058 143,336 

8,105,485 6,650,195 



12 DEFERRED INCOME - AMOUNTS TO BE RELEASED TO PROFIT & LOSS ACCOUNT WITHIN ONE YEAR 2004 2003 

£ £ 

Sponsorship 350,908 697,885 

Deposits in Advance 1,078,817 1,817,773 

Deferred Football Trust Grant - 500,000 

1,429,725 3,015,658 

13 MILLENNIUM COMMISSION GRANT - AMOUNT TO BE RELEASED TO PROFIT & LOSS ACCOUNT WITHIN ONE YEAR 2004 2003 

£ £ 

Grant 1,196,000 1,196,000 

Grant released to the profit and loss account this period totalled £1,295,667 (2003: £1,196,000). 

Deferred grants of £40,418,667 (2003: £41,714,334) will be released to the Profit and Loss Account in future years. 

69



14 CREDITORS - AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2004 2003 

£ £ 

Bank Loan (note 20) 49,170,000 49,170,000 

Amounts Due to the Welsh Rugby Union Limited (note 20) 9,715,016 9,424,051 

Obligations Under Finance Lease and Hire 

Purchase Agreements (note 15) 39,756 178,905 

58,924,772 58,772,956 



15 OBLIGATIONS UNDER FINANCE LEASES AND HIRE PURCHASE AGREEMENTS 2004 2003 

£ £ 

Amounts Due Within 1 Year 120,739 300,409 

Amounts Due Between 1 and 2 Years 39,756 139,149 

Amounts Due Between 2 and 5 Years - 39,756 

160,495 479,314 

16 DEFERRED INCOME - AMOUNTS TO BE RELEASED TO PROFIT & LOSS ACCOUNT AFTER MORE THAN ONE YEAR 2004 2003 

£ £ 

Sponsorship 759,833 1,017,816 

Deposits in Advance 650,681 1,003,840 

1,410,514 2,021,656 

17 MILLENNIUM COMMISSION GRANT - AMOUNT TO BE RELEASED TO 2004 2003 

PROFIT & LOSS ACCOUNT AFTER MORE THAN ONE YEAR £ £ 

Grant 39,222,667 40,518,334 



70



18 DEFERRED TAXATION 2004 2003 

£ £ 

Capital Allowances in Excess of Depreciation 9,161,381 9,367,202 

Other Timing Differences (7,887,490) (8,231,795) 

Undiscounted Provision for Deferred Tax 1,273,891 1,135,407 

Discount (297,941) (271,873) 

Discounted Provision for Deferred Tax 975,950 863,534 

Provision at Start of Period 863,534 525,140 

Deferred Tax Charge - Group Relief Transfer 112,416 338,394 

Provision at End of Period 975,950 863,534 

19 FRS 17 RETIREMENT BENEFITS 

The company participates in the Welsh Rugby Union Limited Senior Employees' Pension Scheme which is a defined benefit pension scheme, the contribution rates of which are based 

upon pension costs across the participating undertakings as a whole. However being a multiple employer scheme the company is unable to identify its share of the underlying assets 

and liabilities. The scheme funds are administered by an independent insurance company and any surplus/deficit will be accounted for by the Welsh Rugby Union Limited, its parent 

company.At 31 May 2004 the surplus, calculated upon the assumptions disclosed in the accounts of the parent company, totalled £107,000 (2003: deficit £10,000). 

20 CONTINGENT LIABILITIES 

A cross guarantee has been given to Barclays Bank plc and the Millennium Commission to secure borrowings and grants by Millennium Stadium plc and its parent undertaking, the 

Welsh Rugby Union Limited. The total of the borrowings at 31 May 2004 amounted to £57,824,046 (2003: £57,615,881) of which £5,494,398 (2003: £5,743,414) related 

to the Welsh Rugby Union Limited and £52,329,648 (2003: £52,262,407) related to Millennium Stadium plc. The bank loan is re-payable on demand. However, the Directors 

consider that the disclosure of the loan in note 14 as being repayable after more than one year is appropriate given the prevailing circumstances. 

All Liabilities to Barclays Bank plc and the Millennium Commission are secured by a fixed charge on all properties and other assets owned by the Welsh Rugby Union Limited and 

Millennium Stadium plc. 

21 RELATED PARTY TRANSACTIONS 

The Welsh Rugby Union Limited is the parent company of Millennium Stadium plc and holds 50,000 shares of the issued shares, the remaining one share being held by the City and 

County of Cardiff. The only related party transactions were with the parent company and do not require disclosure in these accounts. 

22 SHARE CAPITAL 2004 2003 

Authorised Share Capital 

£ £ 

50,001 Ordinary Shares of £1 each 50,001 50,001 

Allotted, Called Up and Fully Paid 


£ £ 

50,001 Ordinary Shares of £1 each 50,001 50,001 

Included in the above authorised, allotted, called up and fully paid share capital is a share owned by the City and County of Cardiff. This share does not grant to the owner any 

dividends, voting rights nor any rights to amounts receivable upon winding up. 

71



23 RESERVES Profit & Loss Account 

£ 

Opening Balance as at 1 May 2003 2,044,298 

Profit for the Financial Period (586,773) 

Balance Carried Forward as at 31 May 2004 1,457,525 

Included in the above is £(295,657) being other reserves which arose on the incorporation of the Welsh Rugby Union. 

24 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS FUNDS 2004 2003 

£ £ 

(Loss)/Profit for the Financial Period (586,773) 1,153,401 

Opening Shareholders’ Equity Funds 2,094,299 940,898 

Closing Shareholders’ Equity Funds 1,507,526 2,094,299 

25 RECONCILIATION OF OPERATING PROFIT TO NET CASH FLOW FROM OPERATING ACTIVITIES 2004 2003 

£ £ 

Operating Profit 2,373,653 3,820,236 

Depreciation 3,531,667 3,261,547 


Football Trust Grant (500,000) (500,000) 

(Increase) in Debtors (1,102,008) (1,590,696) 

Increase in Creditors (include deferred tax movement) 1,326,803 259,879 

(Decrease) in Deferred Income (1,697,075) (1,797,828) 

NET CASH INFLOW FROM OPERATING ACTIVITIES 2,637,373 2,257,138 

26 ANALYSIS OF CHANGES IN NET DEBT At 1 May 2003 Cashflows At 31 May 2004 

£ £ £ 

Bank Overdraft (2,709,233) (450,415) (3,159,648) 

Loans Due Within One Year - - - 

Loans Due After More Than One Year (49,170,000) - (49,170,000) 

Net Debt (51,879,233) (450,415) (52,329,648) 

72

WELSH RUGBY UNION LIMITED ANNUAL REPORT 2003-2004

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