SA Rugby turned a R12,8-million loss incurred by the end of 2004 into a R6,4-million net profit in the past financial year.
The figures were contained in the company’s audited annual financial statements, adopted at Friday’s annual general council meeting at the Newlands rugby stadium.
R7,8-million of the R12,8-million loss incurred in the 15 months ended December 31 2004 was attributable to ”certain abnormal items”.
”Group reserves reached R38-million at December 31 2005, which includes R28-million in cash and short-term investments. The improvement in operating results was achieved largely through tighter control over expenditure.”
SA Rugby Union president Brian van Rooyen, shortly before being voted out of office, told the council meeting the financial position had been partly strengthened by the South African Revenue Service (Sars) abandoning a claim to R28-million it had sought in taxes on broadcasting rights income earned in previous years.
SA Rugby, which had resisted paying, received a letter from Sars a week ago ”conceding we should not have paid”, Van Rooyen said. ”It is a huge relief. It could have crippled the organisation.”
The rest of the body’s tax matters were in ”very good stead”, he added.
SA Rugby said provision had been made for an amount of R3,4-million in respect of taxes ”underprovided for” in the 2001 and 2002 tax years.
”With a new broadcasting contract and ongoing sponsorship contracts in place, SA Rugby expects to achieve at least similar profit in 2006.” — Sapa