coach development which increased by £0.1m with the appointment of four new Coach Development Officers and an increase of £0.1m in the community rugby referees programme. In addition we invested £0.4m in the Go Play Rugby project, a major adult recruitment campaign timed to coincide with RWC 2007. The successful Community Rugby Coaches programme also benefited from £0.2m of extra funding, due to increased revenue for this programme from Government and other sources.
Business and administration costs show an increase of £2.1m, from £13.5m to £15.6m. Much of this increase was due to either new businesses or non-recurring or one-off costs since headcount and overhead costs have remained flat in most areas. Of the total increase, £0.5m was due to increases in the RFU’s subsidiary businesses mainly due to start-up and full year costs. Both 2006/07 and 2005/06 were heavy years for legal fees both due to litigation and other, more productive, projects, with a net increase of £0.3m essentially due to The Way Forward project. We continue to invest in our IT systems and infrastructure and 2006/07 included an additional £0.1m related to an investment in a new executive information system. A one-off provision of £0.9m was made against our investment in the Churchill Cup LP to reflect a realistic view of the likely cash flows from the tournament in the next few years.
Stadium costs rose by £1.9m from £7.2m to £9.1m. As in other areas, we have kept staff and related costs flat, with all the increase being due to depreciation, of which depreciation on the new South Stand comprised £1.7m.
Allocations to clubs and Constituent Bodies
Total allocations, which comprise payments and payments-in-kind to clubs, Constituent Bodies (CBs) and related organisations, decreased by £0.3m from £19.6m to £19.3m, as analysed in the table below.
Allocations
| 2007 | 2006 | |
| £m | £m | |
| PRL grant | 4.9 | 5.0 |
| National Leagues | 3.3 | 3.3 |
| Level five and below | 4.5 | 4.3 |
| Senior Cup | 2.6 | 3.2 |
| Junior, intermediate and national cups | 1.2 | 1.3 |
| Constituent Bodies | 1.5 | 1.4 |
| Other | 1.3 | 1.1 |
| 19.3 | 19.6 |
year-on-year. Funding for clubs at level five and below increased by £0.2m which reflects the net cost of the switch from the conditional funding scheme to the RFU’s central funding of the accident and liability insurance programme. The allocations from the senior cup reduced in the year by £0.6m due to higher surpluses being generated in 2005/06 from the semi finals and final.
Net result
The RFU’s share of the results of associated undertakings was a profit of £0.1m against a loss in 2005/06 of £0.1m being mainly our share of the results of the Churchill Cup partnership. Net interest receivable decreased by £0.8m from £1.8m to £1.0m mainly due to the impact on cash balances of the South Stand project. The impact of the above results in a profit before taxation of £9.9m against a loss before taxation last year of £1.7m. The tax charge for the year was £0.5m and, after taking account of the minority interests in the results of subsidiaries, the retained profit for the year was £7.0m against a retained loss last year of £3.4m.
Balance sheet and cash flow
Consolidated net worth increased by £12.6m from £122m to £134.6m, reflecting the profit for the year of £7.0m, an improvement in the position of the pension scheme of £2.4m, the minority interests’ share of the undistributed profits of subsidiaries of £0.7m and the issue of new 75-year debentures of £2.5m.
Tangible fixed assets, representing mainly the investment in Twickenham Stadium, increased by £32.8m from £100.9m to £133.7m, mainly due to the expenditure on the South Stand Development Project of £37.1m.
We invested £0.4 in the Go Play Rugby project, a major adult recruitment campaign timed to coincide with RWC 2007