Annual Report & Statement of Accounts 2022

ANNUAL REPORT AND STATEMENT OF ACCOUNTS Year ended 31 December 2022

Incorporating Notice of the Annual General Meeting on 12 December 2023

2019

2019

2020

2021

Annual Report and Statement of Accounts

NOTICE OF ANNUAL GENERAL MEETING The Annual General Meeting of Essex County Cricket Club Limited will be held in The Doug Insole Pavilion, at The Cloud County Ground, New Writtle Street, Chelmsford and as a webinar via Zoom on Tuesday 12 December 2023 at 7pm.

Information on how to attend as a Member will be emailed to attendees directly.

AGENDA 1.

Welcome and apologies for absence

2.

Minutes of the Annual General Meeting held on 23 November 2022

3.

Chair’s report

4.

Treasurer’s report including; Presentation and adoption of Annual Report and Statement of Accounts

5.

Result of Essex County Cricket Club Board ballot

6.

Any other business

Please note it will be necessary to show your 2023 Membership card to gain admission to the Annual General Meeting on Tuesday 12 December 2023.

JOHN STEPHENSON Company Secretary 18 November 2023

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Annual Report and Statement of Accounts

THE CLUB OFFICERS AND COMMITTEE

Chair: A Mohindru KC (from 19 October 2023) S O’Brien CBE (Interim Chair from 20 February 2023 to 18 October 2023) A Aktar (Chair from 23 November 2022 to 19 February 2023) J P Stephenson (Interim Chair from 16 November 2021 to 22 November 2022) Deputy Chair: V A S Keil (from 19 October 2023) A Mohindru KC (Interim Deputy Chair from 20 February 2023 to 18 October 2023) S O’Brien CBE (Deputy Chair from 23 November 2022 to 19 February 2023) S D Cooper (Interim deputy Chair to 22 November 2022) Treasurer: N J Faraday (from 23 November 2022) I J Patterson (to 22 November 2022) Chief Executive: J P Stephenson President: K W R Fletcher (from 11 April 2023) D L Acfield (to 22 November 2022)

ESSEX COUNTY CRICKET CLUB BOARD (THE COMMITTEE OF MANAGEMENT): A Mohindru KC (Chair) V A S Keil (Deputy Chair) S D Cooper V G Ford MP J E Faragher S O’Brien CBE Q Porter C J Townsend

+ J P Stephenson (non voting from 23 November 2022) * N J Faraday * J E R Gallian + B W Elliott + D Feist + K W R Fletcher + R A Lewis

HONORARY LIFE VICE PRESIDENTS: D L Acfield J F Barker K C Brown OBE J Carman (deceased August 2023) B M Crawford A F Debenham S Downing

D E East S Edwards J L Faragher K W R Fletcher J S Foster G A Gooch OBE M Gordon

Retired 22 November 2022 N R A Hilliard I J Patterson M Smith + D L Acfield

R J Greig Lord Haselhurst N R A Hilliard N Hussain OBE R C Irani B R Kemp (deceased March 2023)

J R Lucas T W Newton P Northfield J Parke I Patterson M L Pettini R J Poulter

P J Prichard P T Roberts G J Saville M Smith C Ward D Wilson

Auditors: RSM UK Audit LLP, Chartered Accountants, Third Floor, Priory Place, New London Road, Chelmsford, Essex CM2 0PP Club Captain: T Westley

BOARD: Retire 2023 V A S Keil J E Faragher

Retire 2024 S D Cooper C J Townsend V G Ford MP

Retire 2025 S O’Brien CBE A Mohindru KC Q Porter

COMMITTEE AND GROUPS: Cricket Committee

Audit Committee

Remuneration & Nominations Committee (from 23 November 2022)

Members’ Committee (from 23 November 2022)

Investment & Estates (from 23 November 2022)

J E R Gallian (Chair from 23 November 2022) K W R Fletcher G A Gooch A McGrath J P Stephenson T Westley + A Akram + K Castle + N J Faraday + D Feist

N J Faraday (Chair from 23 November 2022) S D Cooper (from 23 November 2022) S O’Brien CBE (from 23 November 2022) + B W Elliott + J P Stephenson

N J Faraday (Chair) A Mohindru KC V A S Keil S O’Brien CBE

A Mohindru (Chair) M Dillane J E Faragher C Grant S O’Brien CBE E Rowley P Somaiya J P Stephenson

N J Faraday (Co-Chair) C J Townsend (Co-Chair) S D Cooper Q Porter V G Ford MP

Retired 22 November 2022 I J Patterson

Retired 22 November 2022 I J Patterson (Chair)

Retired 22 November 2022 D L Acfield (Interim Chair) The President is an ex-officio member of the Board and the Chair, Deputy Chair and Treasurer are ex-officio members of all Committees and Groups where they are not formally appointed members. *Indicates a co-opted member of the Board. + Indicates those attending Committees who have no voting rights.

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Annual Report and Statement of Accounts

EXECUTIVE BOARD REPORT The 2022 season proved to be one of

& Wales Cricket Board following work

David took over the position from the

Essex Cricket. The Men’s First Team

aim was to align a high-performance

and has been a loyal servant to Essex

transition both on and off the field at

gave a good account of themselves by

finishing

a

respectable

fourth

position in the LV= Insurance County Championship

behind

Hampshire,

Lancashire and Surrey, who were comprehensive winners.

undertaken by Sir Andrew Strauss. The

strategy across the men’s professional game with recommendations later proposed

to

first-class

counties.

The Club’s Board voted unanimously in favour of rejecting any potential reduction in County Championship and T20 cricket, with a view of retaining

late Doug Insole in November 2017 Cricket in many roles, including as a

player, Board member and Chair. The Committee Room at The Cloud County

Ground has been renamed the ‘David Acfield Board Room’ in recognition of his services to the Club.

the domestic 50-over competition.

Financially the Club made an operating

semi-final place in the Royal London

There were significant changes at

interruption insurance claim related to

also an opportunity to reach Finals

Ian Patterson, Mike Smith, Wasim Haq

The squad fell just short in the limited-

over competitions, missing out on a One-Day Cup by two points. There was Day in the Vitality Blast, but defeat to

Lancashire Lightning in the quarterfinals stage suppressed any hopes.

Essex County Cricket Club would like

to place on record its thanks to Adam Wheater who retired from cricket in 2022 after 380 appearances across all

Board level in 2022 with Nigel Hilliard,

loss of £53,330 inclusive of a business the Covid-19 pandemic of £800,000.

and Paul Harvey all standing down

The loss before exceptional items and

vacancies that were filled at the Annual

cost inflation against a back drop

support from international executive

total revenue excluding the insurance

England & Wales Cricket Board (ECB).

that continues to recover from the

from their positions. This created eight

tax of £218,333 reflects cricket specific

General Meeting in November with

of flat ECB funding, which is 46% of

search firm, Perrett Laver and the

claim, and a challenging economy

A

graduate

recommendations to the Membership

related to incidents of historic racism

compliance to the Club, in line with the

addition to £461,975 in 2021.

Club. A special mention to academy Jack

Plom

who

also

departed the Club at the expiration of his contract in October.

The Essex Women’s team continued

Nominations

Committee

was

pandemic.

formats spanning over two stints at the

formed ahead of the ballot to provide

Legal

to bring a broad skill set, stability and

were £298,634 for 2022. This is in

Following the results of the Board

Cup after winning all six games, as

Club Chair with Sir Stephen O’Brien as

well as being runners-up in the London Championship.

The Cloud County Ground hosted two

international fixtures during the season, which included a First-Class Counties

down as Chair and was replaced by

Mr O’Brien on an interim basis with Anu Mohindru KC stepping up at Deputy Chair.

Jamie Porter represented the FCC XI,

voted on through the ballot process.

in July, England Women returned to Chelmsford

and

comprehensively

defeated South Africa in the Vitality Women’s IT20.

In August, a High-Performance Review

report was published by the England

4

costs

his deputy. Mr Akhtar would later stand

A new Members’ Committee was

taking five wickets in the match. Later

associated

ballot, Azeem Akhtar was appointed

XI v New Zealand fixture ahead of the Blackcaps’ Test series against England.

and

ECB’s County Governance Framework.

to go from strength-to-strength by finishing top of the table in the T20

fees

A Mohindru Chair

also introduced with three Members Millie Dillane, Chris Grant and Piyush Somaiya

candidates

were

whose

the

successful

roles

N J Faraday Treasurer

include

developing a communication channel

between the Club and its Membership.

Lastly, the Club would like to thank David Acfield for his role as President.

J P Stephenson Chief Executive

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Annual Report and Statement of Accounts

STATEMENT OF THE COMMITTEE OF MANAGEMENT’S RESPONSIBILITIES The Committee of Management is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

The Co-operative and Community Benefit Societies Act 2014 requires the Committee of Management to prepare financial statements for each financial year. Under that Act, the Committee of Management have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), and must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Society and of the profit or loss of the Society for that period.

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In preparing these financial statements, the Committee of Management is required to: a.

Select suitable accounting policies and then apply them consistently;

b.

Make judgements and accounting estimates that are reasonable and prudent;

c.

Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Society will continue in business.

The Committee of Management is responsible for keeping proper accounting records that are sufficient to show and explain the Society’s transactions and disclose with reasonable accuracy at any time the financial position of the Society and enable it to ensure that the financial statements comply with the Cooperative and Community Benefit Societies Act 2014. It is also responsible for safeguarding the assets of the Society and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Annual Report and Statement of Accounts

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ESSEX COUNTY CRICKET CLUB LIMITED OPINION We have audited the financial statements of Essex County Cricket Club Limited (the ‘Society’) for the year ended 31 December 2022 which comprise the income and expenditure account, the balance sheet, the statement of changes in equity, the statement of cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements: • give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the Society’s affairs as at 31 December 2022 and of its income and expenditure for the year then ended; and • comply with the requirements of the Co-operative and Community Benefit Societies Act 2014.

BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Society in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

MATERIAL UNCERTAINTY RELATED TO GOING CONCERN We draw attention to the accounting policies note 1.3 and the contingent liability disclosures in note 22 which indicate the uncertainties relating to the Society’s consideration of going concern. Whilst the Committee of Management have completed a going concern review and have concluded that there is a reasonable expectations that the Society has adequate resources to continue in operational existence for the foreseeable future it should also be noted that there is a potential for an unquantifiable liability arising from the contingent liability described in note 22 to the accounts relating to the racism investigations which have not been completed as at the date of signing these accounts. It should also be noted that based on the current forecasts it is expected that the Club will need to sell part of its listed company investment portfolio to ensure that it has enough cash available to cover its costs from October 2024 until the end of the forecasted period of December 2024. These matters, indicate that a material uncertainty exists that may cast significant doubt on the Society’s ability to continue as a going concern. The ultimate outcome of these matters cannot presently be determined so no amounts have been included in the Society’s cashflow forecasts in this respect. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the Committee of Management’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our responsibilities and the responsibilities of the Committee of Management with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION The committee of management is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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Annual Report and Statement of Accounts

OPINION ON OTHER MATTERS UNDER THE CO-OPERATIVE AND COMMUNITY BENEFIT SOCIETIES ACT 2014 In our opinion, the following continued to apply throughout the year of account: • the reason given by the Society’s Committee of Management in respect of a previous year of account for all subsidiaries in note 9(a) to the financial statements to not be dealt with in the financial statements (having been approved by the FCA under section 99, subsection (3)); and • the grounds given by the Society’s Committee of Management for that reason.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Co-operative and Community Benefit Societies Act 2014 requires us to report to you if, in our opinion: • proper books of account have not been kept by the Society in accordance with section 75; or • a satisfactory system of control over transactions has not been maintained by the Society in accordance with section 75; or • the income and expenditure account, and the balance sheet are not in agreement with the books of account of the Society; or • we have not obtained all the information and explanations which, to the best of our knowledge and belief, we consider necessary for the purposes of our audit.

RESPONSIBILITIES OF THE COMMITTEE OF MANAGEMENT As explained more fully in the Statement of the Committee of Management’s Responsibilities set out on page 5, the committee is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the committee determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the committee is responsible for assessing the Society’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the committee either intend to liquidate the Society or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

THE EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

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Annual Report and Statement of Accounts

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: • obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the society operates in and how the society is complying with the legal and regulatory framework; • inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; • discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Co-operative and Community Benefit Societies Act 2014 and tax compliance regulations.

We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures and evaluating advice received from external tax advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety and cricket ground crowd control. We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these laws and regulations as well as completing searches for any reportable incidents in the public domain.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

USE OF OUR REPORT This report is made solely to the Society’s members, as a body, in accordance with the provisions of section 87 of the Co-operative and Community Benefit Societies Act 2014. Our audit work has been undertaken so that we might state to the Society’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 responsibility to anyone other than the Society and the Society’s members as a body, for our audit work, for this report or for the opinion we have formed.

RSM UK Audit LLP, Statutory Auditor Chartered Accountants Third Floor Priory Place New London Road Chelmsford CM2 0PP November 2023

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Annual Report and Statement of Accounts

ESSEX COUNTY CRICKET CLUB LIMITED INCOME AND EXPENDITURE ACCOUNT for the year ended 31 December 2022

2022

£

£

£

£

Trading income

2

8,106,864

6,236,908

Expenditure

2 (8,170,649) (6,691,246)

NOTES

2021

(63,785) Other operating income

10,455

Operating loss

(53,330)

Interest receivable and similar income

3

25,386

Loss on sale of investments Fair value (loss) / gain on fixed asset investments

9b

(54,084)

(454,338) 276,134 (178,204)

3,961 (7,530)

(136,305) 169,579

(165,003)

166,010

Loss on ordinary activities before exceptional items and taxation

4 (218,333) (12,194)

Exceptional items

6 (298,634) (461,975)

Loss on ordinary activities after exceptional items but before taxation

(516,967) (474,169)

Taxation

7 137,984 (34,057)

Retained loss for the financial year

18

(378,983) (508,226)

The income and expenditure account has been prepared on the basis that all operations are continuing.

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9

Annual Report and Statement of Accounts

ESSEX COUNTY CRICKET CLUB LIMITED BALANCE SHEET as at 31 December 2022

2022 NOTES

£

2021 £

£

£

Fixed assets Tangible assets

8

2,825,907

2,938,811

Investments

9

1,477,425

1,674,658

Current assets

4,303,332

Stock

10

63,632

86,668

Debtors

11

489,807

538,370

Cash in hand and at bank

1,017,420

1,606,798

1,570,859

4,613,469

2,231,836

Current liabilities Subscriptions and fees paid in advance

81,259

111,417

12

1,047,118

1,343,696

1,128,377

1,455,113

Creditors due within one year

Net current assets

442,482

4,745,814

Deferred income

13

(1,891,635) (1,995,386)

Creditors due after more than one year

14

Provision for liabilities and charges

16 (510,402) (664,943)

Net assets

776,723

5,390,192

(7,116) (14,233)

2,336,661

2,715,630

Financed By: Share capital

17

173

159

Accumulated fund

18

2,336,488

2,715,471

2,336,661

2,715,630

Shareholders’ funds

The Financial Statements on pages 9 to 23 were approved by the General Committee and authorised for issue on 18 November 2023 and are signed on it’s behalf by:

A Mohindru Chair

10

N J Faraday Treasurer

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Annual Report and Statement of Accounts

ESSEX COUNTY CRICKET CLUB LIMITED STATEMENT OF CHANGES IN EQUITY for the year ended 31 December 2022

Ordinary share capital

Accumulated fund

Total

£

£

£

Balance at 1 January 2021

172

3,223,697

3,223,869

Loss and total comprehensive income for the year

-

(508,226)

(508,226)

Issue of shares Redemption of shares

25 (38)

-

25 (38)

Total transactions with members in their capacity as members

(13)

-

(13)

Balance at 31 December 2021

159

2,715,471

2,715,630

Loss and total comprehensive income for the year

-

(378,983)

(378,983)

Issue of shares Redemption of shares

35 (21)

-

35 (21)

Total transactions with members in their capacity as members

14

-

14

Balance at 31 December 2022

173

2,336,488

2,336,661

Transactions with members in their capacity as members

Transactions with members in their capacity as members

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Annual Report and Statement of Accounts

ESSEX COUNTY CRICKET CLUB LIMITED STATEMENT OF CASH FLOWS

for the year ended 31 December 2022

2022

2021

£

£

Cash flows from operating activities Loss for the financial year Adjustments for: Depreciation of tangible assets Profit on disposal of fixed assets Loss on disposal of investments Amounts released from deferred income Fair value loss / (gain) on fixed asset investments Dividends received from fixed asset investments Taxation

(378,983)

(508,226)

288,663 54,084 (277,670) 136,305 (25,386) (137,984)

280,468 (10,042) 7,530 (245,790) (169,579) (3,961) 34,057

(340,971)

(615,543)

Decrease in stock Decrease in debtors Decrease in creditors (Decrease) / increase in provisions

23,036 48,563 (326,736) (16,557)

6,999 194,664 (843,602) 450,000

Cash used from operations Corporation tax received

(612,665) -

(807,482) -

Net cash used from operating activities

(612,665)

(807,482)

Cash flows from investing activities Purchases of tangible assets Receipts from sale of tangible assets Receipts from sale of fixed asset investments Payments to acquire fixed asset investments Dividends received from fixed asset investments

(175,759) 394,010 (387,166) 25,386

(275,416) 16,650 168,879 (149,443) 3,961

Net cash used in investing activities

(143,529)

(235,369)

Cash flows from financing activities Issue of ordinary share capital Redemption of ordinary share capital HP loan Advanced membership sales Grants received

35 (21) (7,117) 73,779 100,140

25 (38) 21,350 299,326 186,662

Net cash generated from financing activities

166,816

507,325

Net decrease in cash and cash equivalents

(589,378)

(535,526)

Cash and cash equivalents at the beginning of the year

1,606,798

2,142,324

Cash and cash equivalents at the end of the year

1,017,420

1,606,798

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Annual Report and Statement of Accounts – Notes to the Accounts

ESSEX COUNTY CRICKET CLUB LIMITED NOTES TO THE ACCOUNTS for the year ended 31 December 2022

1 ACCOUNTING POLICIES 1.1

GENERAL INFORMATION

Essex County Cricket Club Limited ("the Company") is a society registered under the Co-operative and Community Benefit Societies Act 2014. The Company is domiciled and registered in England.

The address of the Company's registered office and principal place of business is The Cloudfm County Ground, New Writtle Street, Chelmsford, Essex CM2 0PG. The Company's principal activity is the operation of a professional cricket club and is one of the eighteen first class counties that compete in league and cup competitions in England run by the England and Wales Cricket Board ("The ECB").

1.2

BASIS OF PREPARATION

These financial statements have been prepared in accordance with FRS 102 ' The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and the requirements of the Co-operative and Community Benefit Societies Act 2014.

The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for listed investments.

The financial statements are presented in sterling (£), which is also the functional currency of the Company.

The financial statements present information about the Society as an individual entity and not about its group. The Society has previously obtained permission under section 99, subsection (3) of the Co-operative and Community Benefit Societies Act 2014 not to prepare group accounts on the basis that the subsidiaries are dormant and not material for the purpose of giving a true and fair view. The Committee of Management believe that it is entitled to continue to apply that exemption in the current year.

1.3

GOING CONCERN

These financial statements have been prepared on a going concern basis, which assume that the company will be able to continue to trade and meet its debts as they fall due for the foreseeable future, as a minimum for a period of at least twelve months from the date of approval of these financial statements.

At the balance sheet date the company had net current assets of £442,482 and was holding cash and investments of £2,494,845.

The Company has prepared profit and cash flow forecasts covering a period of more than 12 months from the date of approval of these financial statements. In producing these forecasts, management have assumed that monies will be received from the ECB in line with the ECB County Partnership Agreement.

The Committee of Management recognise that there is potential for an unquantifiable liability arising from the investigations referred to in note 22 to these accounts. While provision has been made in note 16 for all costs incurred during 2023 up to the date of signing of the accounts, there exists the potential for additional costs relating to the investigation that will exceed this provision, such that it is impractical to provide an estimate of the amount or timing of any outflow that might result. There may be claims made against the Club arising from these investigations, but this is not known with any certainty at the time of signing these accounts. Based on current forecasts, total cash outflows exceed total cash inflows in the forecasted period to December 2024. The Club is actively looking to address this loss and cashflow situation to avoid having to sell part of its investment portfolio to cover this shortfall. These matters indicate that a material uncertainty exists that may cast significant doubt over the ability of the Club to continue as a going concern.

After reviewing the Company's forecasts and projections, the Committee of Management have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

1.4

TANGIBLE FIXED ASSETS

Tangible fixed assets are stated at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost of each asset to its estimated residual value on a straight line basis over its expected useful life, as follows: Freehold properties Other equipment Motor vehicles

2% - 10% on cost 10% - 25% of additions at cost (based on estimated useful life of the asset 25% on net book value

No depreciation was provided on freehold buildings prior to 30 September 1980.

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13

Annual Report and Statement of Accounts – Notes to the Accounts

1.5

IMPAIRMENT OF FIXED ASSETS

An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the Company estimates the recoverable amount of the asset.

Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use, are recognised as impairment losses.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in profit and loss. On reversal of an impairment loss, the depreciation is adjusted to allocate the assets revised carrying amount over its remaining useful life.

1.6

GRANTS

Grants received towards the construction costs of the Cricket School have been treated as deferred income. This is credited to the income and expenditure account on a straight line basis over 50 years, in line with the depreciation policy for this asset.

Grants received from the ECB towards capital investment or other expenses not yet incurred are credited to a deferred income account and released to profit or loss in line with the depreciation policy relating to the assets purchased, as disclosed under note 1.13. Amounts released to the profit or loss are disclosed in notes 4 and 13 to these accounts. Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

1.7

SUBSCRIPTIONS

Subscriptions are credited in the year to which they apply. Life subscriptions are credited to deferred income and released to profit and loss account in future years.

1.8

INCOME

Income is stated excluding value added tax as appropriate. Income from marketing, matches, cricket operations and cricket centre are recognised when the substantial risks and rewards have been transferred.

1.9

BARTER TRANSACTIONS

Turnover and costs in respect of barter transactions are recognised only where there is persuasive evidence of the value at which, if it had not been exchanged, the items would have been sold for cash in a similar situation.

1.10

TAXATION

The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable.

Current tax is based on the taxable profit for the year. Taxable profit differs from the income and expenditure account because it excludes items of income or expense that are taxable or deductible in other periods. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on the tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and the income and expenditure account that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.

Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the Company intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

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Annual Report and Statement of Accounts – Notes to the Accounts

1.11

RETIREMENT BENEFITS

Defined contribution plans For defined contribution schemes the amount charged to income and expenditure is the contributions payable in the year.

Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

1.12

INVESTMENTS

Investments held as fixed assets are classified as financial instruments and accounted for in accordance with the accounting policy at fair value through profit and loss as set out in accounting policy 1.17.

1.13

ENGLAND AND WALES CRICKET BOARD (ECB)

The Club accounts for income from the ECB on an accruals basis. Capital grants received are credited to a deferred income account and released to profit or loss in line with the depreciation policy relating to the assets purchased, as set out in accounting policy 1.6.

1.14

DONATIONS AND LEGACIES

Donations and legacies are accounted for on a receivable basis.

1.15

OPERATING LEASES

Rentals payable under operating leases are charged to the income and expenditure account on a straight line basis over the period of the lease.

1.16

STOCK

Stock is valued at the lower of cost and net realisable value. Net realisable value is based upon estimated selling price less further costs expected to be incurred to completion and disposal. Provision is made for obsolete and slow-moving items.

1.17

FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 ' Other Financial Instruments Issues' of FRS 102, in full, to all of its financial instruments.

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument, and are offset only when the Company currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets Trade and other debtors Trade and other debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Trade debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit and loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised in profit or loss.

Listed investments Listed investments are equity investments over which the Company has no significant influence, joint control or control and are initially measured at transaction price. Transaction price includes transaction costs, except where trade investments are measured at fair value through profit or loss when transaction costs are expenses to profit or loss as incurred.

The fair value of listed investments quoted on a recognised stock exchange is the quoted bid price.

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Annual Report and Statement of Accounts – Notes to the Accounts

Financial liabilities and equity Financial instruments are classified as liabilities and equity instruments according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Trade and other creditors Trade and other creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Equity instruments Financial instruments classified as equity instruments are recorded at the fair value of the cash or other resources received or receivable, net of direct costs of issuing the equity instruments.

1.18

CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

In the application of the Society's accounting policies, the Society is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the peiord of the revision and future periods where the revision affects both the current and future periods.

The Committee of Management deem the significant accounting estimates and judgements to be those set out in accounting policy 1.3.

2 TURNOVER AND EXPENDITURE All turnover was generated within the United Kingdom. An analysis of the Company's turnover by class of business is as follows:

2022

2021

£

£

£

£

INCOME

COSTS

NET

NET

Membership Commercial Matches Cricket operations Cricket Centre Retail shop Rents receivable Buildings Other Items

360,198 1,981,240 1,218,357 3,506,621 2,925 147,694 51,496 838,333

183,401 1,452,058 636,915 3,942,608 85,141 170,894 690,254 1,009,378

176,797 529,182 581,442 (435,987) (82,216) (23,200) 51,496 (690,254) (171,045)

93,063 627,487 356,908 (97,603) (104,555) (10,207) 39,737 (568,446) (790,722)

Total

8,106,864

8,170,649

(63,785)

(454,338)

3 INTEREST RECEIVABLE AND SIMILAR INCOME

Dividend income from fixed asset investments Interest on bank deposits

16

2022

2021

£

£

25,386 -

3,961 -

25,386

3,961

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Annual Report and Statement of Accounts – Notes to the Accounts

4 LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION Loss on ordinary activities before taxation is stated after charging / (crediting) the following:

Auditors remuneration - audit fee Auditors remuneration - non audit fees Depreciation of tangible fixed assets Amounts released from deferred income Profit on disposal of tangible fixed assets within operating profit Loss on disposal of fixed asset investments Fair value loss / (gain) on fixed asset investments Stock: amounts expenses to cost of sales Government grants

2022

2021

£

£

39,350 5,775 288,663 (277,670) 54,084 136,305 94,339 10,455

24,300 2,550 280,468 (245,790) (10,042) 7,530 (169,579) 47,175 (276,134)

Apart from remuneration paid to Executives no member of the Committee received any remuneration or expenses for the performance of their Committee duties.

5 STAFF COSTS Average number of people employed by the club, both full and part time, was as follows:

2022

2021

£

£

Playing staff Coaches and scorers Cricket operations and stewards Ground operations and buildings Marketing, commercial and sales Cricket centre Cricket Academy Retail shop Administration Membership

25 9 18 9 59 4 6 3 7 7

24 7 22 10 37 9 6 3 7 6

147

131

Aggregate payroll costs

2022 2021

£ £ Wages and salaries Social security costs Other pension costs Other costs

3,741,665 425,104 308,894 86,260

3,523,767 383,611 274,311 83,449

4,561,923

4,265,138

6 EXCEPTIONAL ITEMS Exceptional items relates to the legal and other related costs of the racism allegations brought against the Club.

The expenditure includes expenditure incurred during the year together with a provision for known costs incurred in the year ended 31 December 2023.

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Annual Report and Statement of Accounts – Notes to the Accounts

7 TAXATION 2022

2021

£

£

Current Tax: UK corporation tax on loss for the period Adjustments in respect of previous periods

-

-

Total current tax

-

-

Deferred Tax: Origination and reversal of timing differences Adjustments in respect of previous periods

(9,859) (128,125)

39,254 (5,197)

Total deferred tax

(137,984)

34,057

Total tax on loss on ordinary activities

(137,984)

34,057

Factors affecting tax charge for the period

The tax assessed for the period is lower than the standard rate of corporation tax in the UK (19%).

The differences are explained below: Loss on ordinary activities before tax

(516,967)

(474,169)

Loss on ordinary activities multiplied by the standard rate of corporation tax in the UK of 19% (2021: 19%)

(98,224)

(90,092)

Effects of: Expenses not deductible / (income not taxable) for tax purposes Fixed asset timing differences Chargeable gain Change in tax rates Adjustment to tax charge in respect of previous periods

75,957 26,120 (14,304) 592 (128,125)

51,411 20,449 25,892 31,592 (5,197)

Total tax charge for the period

(137,984)

34,057

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Annual Report and Statement of Accounts – Notes to the Accounts

8 FIXED ASSETS Freehold Land and Property Plant, machinery and Stadium Cricket School equipment £ £ £

Motor Vehicles £

Total £

Cost Opening balance 1 January 2022 Additions

3,831,996 440

351,809 -

1,512,958 175,319

214,267 -

5,911,030 175,759

Closing balance 31 December 2022

3,832,436

351,809

1,688,277

214,267

6,086,789

Opening balance 1 January 2022 Charge for year

1,397,673 144,980

240,784 6,645

1,163,901 125,938

169,861 11,100

2,972,219 288,663

Closing balance 31 December 2022

1,542,653

247,429

1,289,839

180,961

3,260,882

31 December 2022

2,289,783

104,380

398,438

33,306

2,825,907

31 December 2021

2,434,323

111,025

349,057

44,406

2,938,811

Depreciation

Net Book Value

Capitalised ground development costs were £11,371 in 2022, (2021: £Nil) and costs disposed of were £Nil (2021: £Nil) making a total of £11,371 (2021: £Nil) which is included in Stadium costs. These capitalised costs are not being depreciated as they relate to assets not currently in use.

Included in Stadium / Cricket School is freehold land of £355,841 (2021: £355,841) which is not depreciated.

9 INVESTMENTS

2022

2021

£

£

(a) INVESTMENTS IN SUBSIDIARIES (UNLISTED) 6

6

At 31 December 2022 the company held a 100% interest in the following subsidiaries, all incorporated in England and non trading: Class of Share The Essex Shop Limited

Essex County Cricket Club Nominees Limited*

Essex Cricket Limited

ECCC Limited

Essex Eagles Limited

Essex County Cricket Promotions Limited

Essex County Cricket Club Enterprises Limited

Ordinary

Capital and Reserves (£) 2

Ordinary

4

Ordinary

2

Ordinary

Ordinary

Ordinary

Ordinary

2

2

8 2

* Holds investments on behalf of Essex County Cricket Club Limited

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Annual Report and Statement of Accounts – Notes to the Accounts

b) LISTED INVESTMENTS

2022

2021

£

£

At 1 January 2022 Additions Change in value during the year Disposals

1,674,652 387,166 (136,305) (448,094)

1,532,039 149,443 169,579 (176,409)

Closing balance at 31 December 2022

1,477,419

1,674,652

TOTAL INVESTMENTS

1,477,425

1,674,658

Valuation

The fair values of the listed equity investments are based on quoted market prices for the equity shares using the current bid price.

If listed investments were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows: Cost At 1 January 2022 Additions Disposals

1,161,835 387,166 (357,607)

1,167,935 149,443 (155,543)

Closing balance 31 December 2022

1,191,394

1,161,835

At 1 January 2022 On disposals during year Increase in impairment provision

9,742 (2,746) 40,791

8,599 (7,091) 8,234

Closing balance 31 December 2022

47,787

9,742

Net book value at 31 December 2022

1,143,607

1,152,093

2022

2021

£

£

63,632

86,668

2022

2021

£

£

98,118 250,533 141,156

107,638 268,525 162,207

489,807

538,370

Accumulated impairment

10 STOCKS

Goods for resale

11 DEBTORS

Trade debtors Other debtors Prepayments and accrued income

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Annual Report and Statement of Accounts – Notes to the Accounts

12 CREDITORS DUE WITHIN ONE YEAR

2022

2021

£

£

261,769 79,224 286,442 7,117 412,566

276,446 83,363 430,694 7,117 546,076

1,047,118

1,343,696

2022

2021

£

£

1,461,064 115,676 314,895

1,598,990 115,676 280,720

1,891,635

1,995,386

121,979 115,676 20,284

101,161 115,676 18,606

257,939

235,443

2022

2021

£

£

7,116

14,233

7,117 7,116

7,117 14,233

14,233

21,350

Trade creditors Other creditors Other taxes and social security Hire purchase (note 14) Accruals

13 DEFERRED INCOME

Capital grants Other deferred grants Membership income

The following amounts are expected to be released within one year: Capital grants Other deferred grants Membership income

14 CREDITORS DUE AFTER MORE THAN ONE YEAR

Hire purchase Obligations under hire purchase contracts fall due as follows: Within one year Between one and five years

15 FINANCIAL INSTRUMENTS

2022

2021

£

£

Financial assets measured at fair value through profit or loss (note 9) 1,477,419 1,674,652

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Annual Report and Statement of Accounts – Notes to the Accounts

16 PROVISIONS FOR LIABILITIES AND CHARGES Provision for deferred tax has been made as follows: 2022

2021

£

£

178,559 (123,774) (128,176) 79,368 70,982

200,807 (9,968) (138,572) 79,368 83,308

76,959

214,943

Provision at 1 January 2022 Deferred tax charge for the period

214,943 (137,984)

180,886 34,057

Provision at 31 December 2022

76,959

214,943

Legal fees provision

433,443

450,000

Total provisions at 31 December 2022

510,402

664,943

Shares are allotted to members not to associates 2022

2021

Accelerated capital allowances Other timing differences Tax losses carried forward Capital gain rolled over Fixed asset investments at fair value

17 SHARE CAPITAL

£

£

As at 1 January 2022: 3,183 Ordinary Shares of 5p each.

159

172

Redeemed during the year 418 Ordinary Shares of 5p each Allotted during the year 696 Ordinary Shares of 5p each

(21) 35

(38) 25

At 31 December 2022: 3,461 Ordinary Shares of 5p each

173

159

18 ACCUMULATED FUND

2022

2021

£

£

Balance at 1 January 2022 Retained loss for the year

2,715,471 (378,983)

3,223,697 (508,226)

Balance at 31 December 2022

2,336,488

2,715,471

The accumulated fund of the company represents the balance of accumulated profits reported through the income and expenditure account.

19 PENSIONS Included in staff costs for the period is £308,894 (2021: £274,311) in respect of the Club's contributions to staff and players group personal pension schemes. Amounts accrued for at year end were £45,097 (2021: £39,872).

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Annual Report and Statement of Accounts – Notes to the Accounts

20 RELATED PARTY TRANSACTIONS The Club has a close association with Essex Cricket in the Community (the board), the organisation responsible for the development and promotion of recreational cricket in the county.

The Club underwrites the activities of the Board and provides accommodation, management, technical, secretarial and overhead support at a subsidised rate which varies from year to year. This amount depends on the level of sponsorship, fundraising or other financial support the Club or the Board are able to generate for the benefit of the Board.

The amount owed by the Board at the year end was £2,863 (2021: £60,492) which is included in other debtors.

Essex Cricket Foundation (ECF) is the official charity of Essex Cricket. Two representatives from the Club are Trustees of the ECF, together with Graham Gooch and John Stephenson the Club Chief Executive.

The Club received a donation of £42,000 (2021:£42,350) from ECF for sponsorship of the Academy. The Club also paid for various items during the year on behalf of ECF that will be reimbursed by ECF. The balance owing by ECF at the year end was £53,073 (2021: £10,524) which is included in other debtors.

The total remuneration of the key management personnel of the club was £641,345 (2021: £516,728).

21 CAPITAL COMMITMENTS Capital commitments contracted for but not provided in the financial statements amounted to £180,000 (2021: £18,700) less grant funding of £150,000 (2021: £18,700).

22 CONTINGENT LIABILITY The Club recognises that there currently exists the potential for an unquantifiable liability as a result of the racism investigations which have not been completed as at the date of signing these accounts. Provision has been made for all known and estimated legal costs up to production of the reports as disclosed in note 16.

23 CONTROLLING PARTY There is not a controlling party for the club.

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23

The Cloud County Ground, New Writtle Street, Chelmsford, Essex CM2 0PG Tel: (01245) 252420 www.essexcricket.org.uk

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