THE WELSH RUGBY UNION LIMITED Annual Report 2014...2 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2014 Financial highlights 25 Turnover Operational costs Allocations to affiliated

THE WELSH RUGBY UNION LIMITED

UNDEB RYGBI CYMRU CYFYNGEDIG

Annual Report 2014

Adroddiad Blynyddol 2014

The Purpose of the WRU is to:Promote, foster, encourage, control and improve rugby football in Wales.

The WRU Group’s Vision is three fold:• Take Wales to the world with our rugby

• Welcome the world to Wales in our stadium

• Define Wales as a nation

The WRU Group’s Mission is based upon:• Leading Welsh rugby to the forefront of the global game in performanceand reputation

• Maximising participation, performance and enjoyment of the game at all levels

• Developing grassroots rugby, supporting clubs, schools and colleges and bringing communities together

• Promoting the Millennium Stadium as a unique, must play, must visit venue

Our Values and BeliefsOur purpose, vision, and mission are underpinned by our values and beliefswhich embrace, integrity, excellence, success, courage, family and humour.

TH E WE L SH R UGBY UN I ON L IM I T E D - A NNUA L R E PORT 2 0 1 4 1

Financial highlights 02

Neges y Llywydd / President’s message 04

Datganiad y Cadeirydd / Chairman’s statement 06

Crynodeb Prif Weithredwr y Grwp / Group Chief Executive’s summary 10

Strategic report 22

Elite rugby review 30

Community rugby review 52

Stadium review 64

Directors’ report 68

Consolidated profit and loss account 72

Consolidated statement of total recognised gains and losses 72

Balance sheets 73

Consolidated cash flow statement 74

Notes to the financial statements 75

Independent auditors’ report 93

Welsh Rugby Union governance 95

Registered office and advisers 97

Board of Directors 98

Executive Board 103

Obituaries 105

Commercial partners 108

Contents

WRU ARA 2014 1a:Layout 1 22/09/2014 19:25 Page 1

T H E W E L S H R U G B Y U N I O N L I M I T E D - A N N U A L R E P O R T 2 0 1 42

Financial highlights

Turnover

Operational costs

Allocations to affiliated organisations

Amount remaining to service other costs

2014

P&L extract - 2014 & 2013

2013 2014 2013

EBITDA

Operating profit before exceptional items

Profit before tax & exceptional items

Year

£ ‘m

0

10

20

30

40

50

60

70

58.5

31.2

22.5

1.7 0.84.8

61.0

31.9

22.1

7.0

27.3

3.82.3

29.0

Match income

Competition income

Commercial income

Other event income

Other income

Analysis of turnover

2014 Year

£ ‘m

2013

1.7

32.4

0

5

10

15

20

25

30

35

40

45

50

55

60

65

14.0

1.5

8.9

55%

3%3%

24%

15%

3.1

32.1

13.2

3.5

9.1

EBITDA = Earnings before interest, depreciation, allocations and exceptional items


T H E W E L S H R U G B Y U N I O N L I M I T E D - A N N U A L R E P O R T 2 0 1 4 3

EBITDA v Allocations

20142010 2011 20132012

20.0 20.119.3

27.6

Allocations - all

£ ‘m

5

10

15

20

25

30

EBITDA

27.326.227.6

29.0

22.1 22.5

Turnover v EBITDA

2010 2011 2013 20142012

29.0

58.5

63.261.0

54.3

Turnover EBITDA

£ ‘m

20

30

40

50

60

70

58.5

Allocations

2010 2011 2012 20142013

4.53.8

Community RugbyRegions

£ ‘m

0

2

4

6

8

10

12

14

16

18

Semi-professional

14.2

4.34.0

27.6 26.2 27.6 27.3

15.115.0

16.9 17.1

1.2 1.21.2 1.2 1.1

3.1


Nid oes amheuaeth y gall rygbi Cymru dyfu hyd yn oed yngryfach os dysgwn y gwersi mae’r flwyddyn ddiwethafwedi’u gadael. Nawr yw’r amser i ystyried fel mae’n rhaidi Undeb Rygbi Cymru adeiladu hyd yn oed fwy o undod ofewn y gêm yr ymfalchïwn ynddi. Yn ystod y flwyddyn fe’nhatgoffwyd gan y clybiau sy’n aelodau o’r Undeb y byddgweithio’n glos gyda’n gilydd yn ein gwneud yn gryfachfel corff sy’n mynd rhagddo. Gyda’r Cadeirydd a PhrifWeithredwr y Grwp fe ymwelais â phob ardal yn ystod yflwyddyn i drafod strwythur cynghrair newydd SWALEC acym mhob lleoliad fe ddaliwyd ar y cyfle i elwa mwy eto ofaterion yn ymwneud â rygbi. Mae’n gwbl amlwg, fel ymae’r gêm broffesiynol a rhyngwladol ehangach ynesblygu, bod yn rhaid i ni sicrhau y bydd rygbi cymunedolyn dal i gyfranogi ac yn parhau’n rhan o’r broses. Mae URCwedi datgan bod lles y gêm gymunedol bellach ynflaenoriaeth glir ac mae hynny’n gysur mawr i mi yn fyswyddogaeth fel Llywydd. Nid oes amheuaeth boddylanwad Cymru ar y llwyfan rhyngwladol yn un amlwg arhaid cofio mai’r clybiau cymunedol sy’n sail i’r llwyddianthynny.

Bu David Pickering yn un o gefnogwyr selog rygbi ar lawrgwlad, ac wrth iddo ymadael ei swydd fel Cadeirydd,hoffwn ddiolch yn bersonol iddo am ei waith caled a’iarweiniad wrth iddo lywio’r bwrdd yn ystod yr un mlyneddar ddeg diwethaf.

Profodd i fod yn flwyddyn lle roeddem i weld Gerald Daviesyn gadael Bwrdd URC wedi naw mlynedd fel cynrychiolyddrhyngwladol. Roedd yn chwaraewr chwedlonol i Gymru a’rLlewod Prydeinig a Gwyddelig a aeth ymlaen i brofi nadoedd ei ddeallusrwydd a’i ddawn naturiol yn gyfyngedigi’r maes chwarae. Rydym ni gyd yn dymuno’n dda i Geraldi’r dyfodol ac yn diolch yn ddiffuant iddo am ei fewnbwni rygbi Cymru a rygbi’r byd. Gwas da arall ein gêm, AurwelMorgan, sydd wedi cynrychioli Ardal D gydag anrhydeddac y gwelir eisiau ei onestrwydd a’i fewnwelediad i rygbiwrth iddo yntau adael y Bwrdd. Yr ydym hefyd yn ffarweliogyda Roy Giddings sydd wedi cyfrannu cymaint i rygbiCymru yn ystod ei gyfnod ar y Bwrdd.

Rhaid i ni hefyd fod yn ymwybodol o’r chwaraewyr hynnysydd wedi dioddef anafiadau difrifol dros lawer oflynyddoedd. Mae’n anrhydedd bod yn gadeiryddYmddiriedolaeth Elusennol Rygbi Cymru â’i phrif ddiben ogeisio cyfoethogi ansawdd bywyd y chwaraewyr hynny a’uteuluoedd. Byddwn yn hoffi diolch i Undeb Rygbi Cymrua’r holl glybiau a’r mudiadau hynny syn rhoi eu cefnogaethariannol i’r achos clodwiw hwn. Rydym i gyd ynymwybodol o’r anaf difrifol a ddioddefodd Owen Williams,canolwr addawol Gleision Caerdydd a Chymru, tra oeddyn chwarae i’w Ranbarth yn Singapore. Mae Owen nid yn

unig yn chwaraewr arbennig ond yn wr ifanc hynodddymunol ac mae ei agwedd yn nodweddiadol o’r hollchwaraewyr eraill hynny sydd wedi dioddef anafiadaucyffelyb.

Profodd Mathew Rees, aelod selog arall o dîm GleisionCaerdydd, Cymru a’r Llewod, sydd wedi ysbrydolicenhedlaeth o chwaraewyr rygbi, ei fod gymaint o arwr agerioed yn ystod blwyddyn anodd a blin. GorchfygoddMathew Rees ganser ac mae wedi cyflawni’r gamp ryfeddo ennill ei le nôl yng ngharfan Cymru ac mae hyd yn oedwedi ychwanegu at nifer ei gapiau a’i benodi’n gaptenGleision Caerdydd.

Â thristwch mae’n rhaid i fi gofnodi i ni golli drwy angaurai chwaraewyr rhyngwladol Cymreig o fri yn ystod yflwyddyn ddiwethaf. Mae eu cyfraniadau i rygbi Cymru’ndra hysbys ac fe welir eu heisiau’n fawr.

Cofiwn am Denzil Thomas, William James Darch, HandellGreville a Keith Bradshaw. Wrth gwrs roedd hefyd ddauo’m cyd-chwaraewyr a’m ffrindiau yng Nghaerdydd,Roedd Gerry Wallace, yn un o dderbynwyr cyntaf Cap yLlywydd yn ystod y flwyddyn ac Ian Robinson.

Rwy’n diolch i Gadeirydd y Bwrdd, David Pickering, hollaelodau eraill y Bwrdd, Prif Weithredwr y Grwp, RogerLewis, a phawb ar ei Fwrdd Gweithredol am eu cymorthparhaus a’u gwaith caled.

Cyn terfynu, a gaf i ddymuno pob rhwyddineb i chi gyd aphob lwc yn y tymor i ddod.

Diolch

Dennis GethinLlywydd/PresidentUndeb Rygbi Cymru Cyfyngedig

TH E WE L SH R UGBY UN I ON L IM I T E D - A NNUA L R E PORT 2 0 1 44

Neges y Llywydd

Dennis Gethin, Llywydd / President

Y Llywydd gyda Dame Rosemary Butler


T H E W E L S H R U G B Y U N I O N L I M I T E D - A N N U A L R E P O R T 2 0 1 4 5

There is no doubt that Welsh rugby can grow even strongerif we learn the lessons the past year has taught us. Now isthe time to reflect on how the Welsh Rugby Union mustbuild even greater unity within this great game of ours.During the year our member clubs served to remind us thatworking more closely together will make us stronger as awhole going forward. Along with the Chairman and theGroup Chief Executive I visited each district during the yearto discuss the new SWALEC league structure and at eachvenue we all grasped the opportunity to cover a lot moreground on rugby issues. It is abundantly clear that as theinternational and wider professional game evolves apace wemust all ensure that community rugby remains totallyengaged and involved in the process. The WRU has declaredthat the wellbeing of the community game is now a clearpriority and that gives me great comfort in my role asPresident. There can be no doubt that Wales punches aboveits weight at international level so we must all rememberhow our community clubs are the foundation stone uponwhich that success is built.

One of the great supporters of grassroots rugby has beenDavid Pickering and, as he departs as Chairman, I want tothank him personally for all his hard work and thestatesmanship he has shown in guiding the Board across thepast eleven years.

It proved to be a year in which Gerald Davies announcedthat he will stand down from the WRU Board after nineyears as a national representative. He was a legendary playerfor Wales and the British and Irish Lions who went on toprove that his intelligence and flair were not confined to thefield of play. We all wish Gerald well in his future endeavoursand thank him sincerely for his input into Welsh and worldrugby. Yet another great servant of our game, AurwelMorgan, who has represented District D with distinction andwhose integrity and insight into rugby will be missed afterannouncing he will also be standing down from the WRUBoard. We also say farewell to Roy Giddings who has givenso much to Welsh rugby during his time on the Board.

We must always also be aware of those players who havesuffered catastrophic injuries over many years. It is anhonour to be the chairman of the Welsh Rugby CharitableTrust whose main purpose is to try to enhance the qualityof life of those players and their families. I would like tothank the Welsh Rugby Union and all those clubs andorganisation who give their financial support to this mostworthwhile cause. We are all aware of the severe injurysuffered by the most promising Cardiff Blues and Walescentre Owen Williams while playing for this Region inSingapore. Owen is not only a great player but an extremely

nice young man and his attitude is typical to all those otherplayers who have suffered similar injuries.

Another Cardiff Blues, Wales and Lions stalwart who hasinspired a generation of rugby players proved he is every bitthe hero we all know him to be during what was to provea gruelling year. Mathew Rees overcame cancer and hasachieved the astonishing feat of earning selection back intothe Wales squad and has even added to his tally of caps andbeen made Captain of the Cardiff Blues.

Sadly I must record the passing of some great Welshinternational players during the past year. Their contributionsto Welsh rugby are well known and they will be sadlymissed.

We remember Denzil Thomas, William James Darch, HandelGreville and Keith Bradshaw. Of course there were also twoof my former Cardiff teammates and friends; Gerry Wallace,was one of the first recipients of The President’s Cap duringthe year and Ian Robinson. Within the WRU, there was alsothe sad death of our Coach Development Manager, PhilJohn, who was a tireless worker for the game.

I would like to thank the Chairman of the Board, DavidPickering, all the other Board members, the Group ChiefExecutive, Roger Lewis, and all his Executive Board for theircontinued help and hard work.

Finally could I wish you all the very best of luck in theforthcoming season.

Thank you

Dennis GethinPresidentThe Welsh Rugby Union Limited

President’s message

Meeting delegates at the AGM


Fel un sydd ar fin gadael ei swydd fel Cadeirydd UndebRygbi Cymru (URC) rwyf am ddatgan fy nghefnogaethbarhaus i’r gêm rwy’n ei charu a’r bobl a roddodd i mi’rfraint o gael chwarae rôl mor ganolog yn rygbi Cymru drosyr un mlynedd ar ddeg diwethaf.

Rwyf am ddweud, heb unrhyw amwysedd, ei bod yn iawnac yn deg i’r clybiau sy’n aelodau o’r Undeb ddatgan,drwy’r sianelau a sefydlwyd yn briodol, eu bod yn dymunogweld newid. Rwyf am ddymuno’r gorau i Gadeiryddnewydd URC yn y dyfodol.

Heddiw gallaf edrych yn ôl ar flwyddyn lle’r ydym wedillwyddo’n sylweddol i wireddu ein haddewid i roiblaenoriaeth i’r gêm gymunedol ledled Cymru.

Er ein bod, unwaith yn rhagor, wedi cofnodi canlyniadauariannol arbennig gyda throsiant o £58.5 miliwn ac elwcyn treth o £2.4 miliwn, yn bwysicach na hynny, gwelwydcynnydd yn y buddsoddiad yn ôl i mewn i’r gêm yn ystody flwyddyn a ddaeth i ben ar 30 Mehefin 2014.

Cafodd £7.0 miliwn ei ailfuddsoddi mewn rygbicymunedol, gan gynnwys grant cyfleusterau gwerth£500,000 a chynllun Pwyntiau Cyfranogiad gwerth£750,000.

Yn ogystal, bu i ni gyhoeddi ein bwriad i sicrhau cynnyddo 13% yn y buddsoddiad blynyddol yn y grant rygbi adatblygu a fydd yn codi i £2.6 miliwn o’r flwyddyn nesafymlaen.

Mae’r ffigurau hynod gadarnhaol hyn yn dilyn sawlblwyddyn yn ystod fy nghyfnod i yn y swydd lle’r ydymwedi buddsoddi mewn rygbi ar lawr gwlad a meddu ar ycryfder ariannol i wrthsefyll heriau economaidd ehangach.Fy nod wrth fynd i faes gweinyddu rygbi oedd gwneud ygamp yn llwyddiannus eto ar y cae ac oddi ar y cae, acrwy’n fodlon fy mod i wedi gwireddu fy uchelgeisiau.

Yn ystod y flwyddyn ddiwethaf rydym hefyd wedi cyflwynocynllun strategol newydd i fuddsoddi mewn SwyddogionRygbi yn ein hysgolion, a fydd yn ceisio ennyn diddordebyn y gamp ac annog chwaraewyr ifanc i ymuno â’u clybiaulleol.

Oddi ar y cae mae ein Tîm Gweithrediadau Clybiau ynparhau i helpu ein gwirfoddolwyr, a chynhaliwyd cyrsiauhyfforddi i dros 3,000 o unigolion yn ystod y flwyddynddiwethaf yn unig.

Mae’n rhaid i mi ddatgan bod y mentrau hyn, a llawer ofentrau eraill, yn profi bod llawer o’r feirniadaeth a gafodd


Datganiad y Cadeirydd

David Pickering, Cadeirydd

Mae David Pickering yn aelod o fwrdd RWC Ltd



ei chyfeirio at URC yn ddi-sail mewn gwirionedd. Gwn fody gwaith cynllunio yr ydym wedi’i wneud ar gyfer y gampdros y ddwy flynedd nesaf yn enwedig yn golygu y gallwnadeiladu ar sylfeini cadarn, ac rwy’n hyderus fy mod i’ngadael y gamp â fframwaith cadarnhaol iawn o ran yr ochrfusnes a’r ochr rygbi. Rydym wedi crynhoi’r cyfuniadmwyaf effeithiol o staff rheoli tîm, chwaraewyr acarweinwyr a all efelychu ein perfformiad arbennig yngNghwpan Rygbi’r Byd yn Seland Newydd yn 2011, arhagori ar y perfformiad hwnnw hyd yn oed. Hwyrachmai’r penderfyniadau i gynnal gemau pêl-droedOlympaidd, gemau Cwpan Rygbi’r Byd a rowndiau terfynolcwpan rygbi Ewrop yn ein stadiwm ni, sef Stadiwm yMileniwm, sy’n adlewyrchu ac yn dangos orau ein statwso safbwynt rygbi’r byd.

Rwy’n credu’n gryf bod angen i’r clybiau fynd ati’n awr iganolbwyntio ar y dasg sydd o’n blaenau a gweithio gydagURC i gynyddu lefelau cyfranogiad, rhoi gwerthoedd rygbiar waith yn agored ac annog mwy o bobl i ymuno â ni igefnogi rygbi.

Mae rygbi wedi bod yn rhan ganolog o fy mywyd ers panoeddwn yn fachgen, a bydd yn parhau i fod yn ganolog ify mywyd i a bywyd fy nheulu yn ystod y blynyddoedd syddi ddod yma yng Nghymru.

Enillais gapiau dan 15 a dan 19 oed ar ôl i fy niddordebbrwd mewn rygbi gael ei feithrin pan oeddwn yn YsgolCwrt Sart ac Ysgol Uwchradd Dwr-y-Felin. Yna cefais fynghyflwyno i’r gêm ar lawr gwlad drwy fy nhîm lleol, ClwbRygbi Llansawel, a phan oeddwn yn chwarae i Glwb RygbiCastell-nedd a Chlwb Rygbi Llanelli cefais y fraint ogynrychioli fy ngwlad 23 o weithiau, ac wyth gwaith felcapten.

Drwy’r holl brofiadau ac atgofion hynny mae rygbi wedidod yn rhan annatod ohonof ac rwy’n credu’n gryf y byddy gamp yng Nghymru yn mynd o nerth i nerth.

Yn ystod fy nghyfnod fel Cadeirydd rydym wedi lleihau’rddyled graidd o £72 miliwn i £15 miliwn, ac rydym weditroi URC yn fusnes y mae’r gymuned fancio a’r gymunedfasnachol yn ymddiried ynddo ac yn ei barchu.

Yn ogystal, rydym wedi gweithredu’n ddoeth wrthganolbwyntio ar greu llwybr datblygu llwyddiannus argyfer chwaraewyr sy’n gysylltiedig â Chanolfan RagoriaethGenedlaethol newydd URC er mwyn cefnogi tîm hyfforddia thîm cynorthwyol ardderchog dan arweiniad PrifHyfforddwr Cymru, Warren Gatland.

Mae bellach yn bryd i rygbi Cymru roi’r materiongwleidyddol sydd wedi bod mor amlwg dros y deuddegmis diwethaf i’r naill ochr a chanolbwyntio ar GwpanRygbi’r Byd, a fydd yn dechrau mewn blwyddyn.

Mae’n rhaid i ni i gyd fod yn unedig wrth gefnogi Warrena’i dîm, ac mae’n rhaid i ni hefyd gefnogi’r wyth gêm yngNghwpan Rygbi’r Byd, sy’n cynnwys dwy gêmgogynderfynol, yr ydym wedi llwyddo i’w sicrhau ar gyferStadiwm y Mileniwm.

Yma yng Nghymru, mae ein cyflawniadau ar y cae rygbiyn rhagorol o ystyried ein bod yn genedl mor fach, aChwpan y Byd yw ein cyfle i ddatgan o ddifrif bod rygbi’nhaeddu’r anrhydedd o gael ei alw’n gamp genedlaetholCymru.

Mae angen i mi ddiolch i gynifer o bobl wrth i mi edrychyn ôl ar fy nghyfnod fel Cadeirydd, a byddai’n amhosibl imi enwi’r holl unigolion sy’n ymwneud â rygbi Cymru arygbi’r byd sydd wedi fy helpu.

Ond rwyf am ddiolch i Fwrdd URC, a fy Nirprwy GadeiryddKen Hewitt yn arbennig, am eu cefnogaeth a’u cyngordoeth. Rwyf hefyd am ddiolch i’r Tîm Gweithredol, ac ynenwedig Prif Weithredwr y Grwp, Roger Lewis, am sicrhaubod rygbi yng Nghymru yn canolbwyntio ar fusnes mewnmodd mor flaengar.

Y clybiau sy’n aelodau o’r Undeb sydd â’r grym i reoli rygbiyng Nghymru, ac rwyf am ddiolch iddynt am y gwaith ymaent yn ei wneud bob wythnos yn ein cymunedau ledledCymru. Nhw sy’n darparu’r chwaraewyr, yr hyfforddwyr, ygwirfoddolwyr a’r cefnogwyr sy’n sail i’r gamp sy’n eindiffinio ni fel cenedl.

Rwy’n cael fy nghyffroi wrth feddwl am y tymor sydd o’nblaenau wrth i ni nesáu at y wledd honno o rygbi sy’ntynnu dwr i’r dannedd, sef Cwpan Rygbi’r Byd 2015, acrwy’n edrych ymlaen at gwrdd â chynifer ohonoch ag sy’nbosibl dros y misoedd nesaf.

Diolch

David Pickering Cadeirydd Undeb Rygbi Cymru Cyfyngedig


As the departing Chairman of the WRU I want to declaremy continued support for the game I love and the peoplewho afforded me the privilege of playing such a pivotalrole in Welsh rugby for the past eleven years.

I want to state, without any ambiguity, that it is right andproper for the member clubs to declare their desire forchange through the properly constituted channels. I wantto wish the new Chairman of the WRU all the very best forthe future.

I can today look back on a year within which we havemeasurably delivered on our promise of prioritising thecommunity game across Wales.

Whilst we have again posted an impressive set of financialresults recording a turnover of £58.5m and a profit beforetax of £2.4m, more importantly there was increasedinvestment back into the game for the year ended 30 June2014.

The re-investment into community rugby was £7.0mincluding a facility grant of £500,000 and a ParticipationPoints Scheme of £750,000.

In addition, we announced the intention to raise the rugbyand development grant annual investment by 13% to£2.6m from the year ahead.

These exceptionally positive figures follow in the wake ofa number of recent years under my tenure within whichwe have invested in grassroots rugby with the financialstrength to counter wider economic challenges. I enteredrugby administration with the aim of restoring success tothe game both on and off the field and I am satisfied thatI have achieved my ambitions.

In the past year we have also unveiled a new strategic planto invest in Rugby Officers within our schools aimed atigniting interest in our game and urging young players togo out and join their local clubs.


Chairman’s statement

David Pickering, Chairman

AGM



Off the field our Club Operation Team is continuing to helpour volunteers with training courses for more than 3,000individuals across the last year alone.

I have to declare that these and many other initiatives serveto prove that, in fact, much of the criticism aimed at theWRU has lacked foundation. I know that through theplanning we have put in place for the game particularlyacross the next two years we can build on positivefoundations and I am confident that I leave the game in ahugely positive framework both in its business and itsrugby. We have assembled the most effective combinationof team management, players and leaders who canemulate and even improve on our wonderful performancein the New Zealand Rugby World Cup of 2011. Ourstanding in the world game is perhaps best representedand symbolised in the decisions to hold Olympic soccermatches, Rugby World Cup games and European rugbyfinals at our Millennium Stadium.

It is my firm belief that it is now down to the clubs to focuson the task at hand and work with the WRU to increaseparticipation and embrace the values of rugby openly andto encourage more people to join with us in supportingrugby.

Rugby has been my life since I was a boy and it willcontinue to be a central focus for me and my family in theyears ahead here in Wales.

I won caps at U15 and U19 level after my love of rugbywas fostered through Cwrt Sart and then Dwr Y FelinComprehensive School. Then I was introduced to thegrassroots game through my home team of Briton FerryRFC and through Neath RFC and Llanelli RFC I went on tohave the honour of representing my country 23 times,eight times as Captain.

Through all those experiences and memories, rugby hasbecome welded into my being and I truly believe the gamein Wales is set to go from strength to strength.

Through my chairmanship we have reduced core debt from£72m to £15m and turned the WRU into a businesstrusted and respected by the banking and commercialcommunity.

We have also rightly focused on building a successfulplayer development pathway linking into a new WRUNational Centre of Excellence to support a fantasticcoaching and backroom team under Wales Head CoachWarren Gatland.

Now Welsh rugby must put aside the politics of the pasttwelve months and focus on the Rugby World Cup whichis just a year away.

We must all be as one in getting behind Warren and histeam while we must also support the eight RWC gamesincluding two quarter finals we have managed to securefor the Millennium Stadium.

Here in Wales we punch far above our weight in rugby andthe World Cup is our opportunity to truly proclaim that werightly deserve the accolade of being called the NationalSport of Wales.

There are so many people for me to thank as I look backon my time as Chairman and it would be impossible forme to mention all the names of the individuals in Welshand world rugby who have helped me.

I do want to thank the Board of the WRU and in particularmy Deputy Chairman Ken Hewitt for their wise counseland support. I also want to thank the Executive and inparticular the Group Chief Executive, Roger Lewis, for thecutting edge business focus they have brought to Welshrugby.

The control of Welsh rugby is firmly in the grip of ourmember clubs and I want to thank them for the work theydo week in week out in communities throughout Wales.They provide the players, coaches, volunteers andsupporters who make the game which defines us as anation.

I am savouring the prospect of the season ahead as weedge towards that mouth-watering spectacle of RugbyWorld Cup 2015 and I look forward to meeting as manyof you as possible in the months ahead.

Thank you

David PickeringChairmanThe Welsh Rugby Union Limited


Bu’n flwyddyn o uchafbwyntiau ac isafbwyntiau mawr iGrwp Undeb Rygbi Cymru (URC), gyda llwyddiant osafbwynt ariannol ar y naill law a thrafodaethau hirfaith ary llaw arall i gwblhau Cytundeb Gwasanaethau Rygbinewydd gyda’r pedwar rhanbarth ynghyd â thrafferthionwrth gyflwyno strwythur newydd ar gyfer y CynghreiriauCenedlaethol.

Nid oes amheuaeth nad oedd y Cyfarfod CyffredinolEithriadol a gynhaliwyd ym mis Mehefin 2014 yn garregfilltir arwyddocaol yn ystod y flwyddyn, ac roedd barn asafbwyntiau’r clybiau sy’n aelodau o URC wedi dod agymdeimlad o gydbwysedd i amgylchedd rygbi Cymru.

Mae’r Grwp yn cyrraedd diwedd y flwyddyn mewn sefyllfalawer cryfach ac unedig gyda’r Cytundeb GwasanaethauRygbi newydd ar waith, gyda gêm gymunedol ac AdranUwch-gynghrair sy’n cael eu hariannu’n well, a gyda’rwybodaeth galonogol y bydd Warren Gatland bellach ynaros yn ei swydd fel Prif Hyfforddwr nes 2019, ac maeperfformiad ariannol cryf y Grwp yn sail i hyn i gyd.

Dyma grynhoi’r pwyntiau allweddol ar gyfer y flwyddyn addaeth i ben yn 2014:

Mae Rygbi Cymunedol yn cynnwys y gamp i gyd y tuhwnt i’r amgylchedd proffesiynol, ac mae’n cynnwysstrwythurau a chystadlaethau ein CynghreiriauCenedlaethol, ein systemau a’n mentrau cymorth ynghydâ rygbi yn ein hysgolion a’n colegau.

Mae penawdau 2013/14 o ran Rygbi Cymunedol yncynnwys y canlynol:

Clybiau

• cyflwynwyd strwythur newydd ar gyfer CynghreiriauCenedlaethol SWALEC er mwyn creu mwy o gemau lleolac osgoi gorfodi clybiau i deithio’n bell lle bo hynny’nbosibl

• cafodd 3,000 o wirfoddolwyr eu hyfforddi ynghylchcynlluniau sy’n ceisio gwella’r modd y mae clybiau ar lawrgwlad yn cael eu gweinyddu

• cynhaliodd cynllun recriwtio “Join the Beat” 122 oddigwyddiadau rygbi ledled Cymru

• manteisiodd 183 o glybiau ar y cynnig i gyflwynogwefannau clybiau URC er mwyn gwella’r modd rydymyn cyfathrebu

• parhaodd y fenter i roi’r gorau i dalu chwaraewyr mewnclybiau cymunedol, wrth i 224 o glybiau lofnodi addewidyn eu cyfansoddiad yn cadarnhau na fyddant yn taluchwaraewyr

• crëwyd Llawlyfr Gweithrediadau Clybiau Rygbi Cymrunewydd, a bydd yn cael ei anfon at bob clwb

• lansiwyd menter ‘Rugbyforce’ Natwest – Creu ClwbCynaliadwy – a chynhaliwyd 18 o weithdai er mwynhelpu gwirfoddolwyr i rannu arfer da.


Crynodeb Prif Weithredwr y Grwp

Roger Lewis, Prif Weithredwr y Grwp

Hyfforddiant cymorth cyntaf



• cynhaliodd Swyddogion Diogelu clybiau URC 46 oddigwyddiadau hyfforddi i glybiau er mwyn hybu’rprotocolau sy’n ceisio amddiffyn pobl ifanc a phobl sy’nagored i niwed

• ffurfiwyd cysylltiad ag elusen Calonnau Cymru er mwynrhannu diffibrilwyr â phob un o’r clybiau

• cynhaliwyd prosiect ar gyfer y gêm gymunedol i greuprotocolau newydd ar gyfer adnabod cyfergyd

• cafodd dros 2,500 o chwaraewyr rhwng 15 a 30 oed euhadnabod ar gronfa ddata o chwaraewyr y tu allan iGymru

• parhawyd i wneud gwaith ar Bolisi Iaith Gymraeg agwefan ddwyieithog URC, sydd bellach wedi cael eucyflwyno

Ysgolion

• cyflwynwyd strategaeth newydd ar gyfer creu cysylltiadrhwng rygbi yn yr ysgolion a rygbi yn y clybiau yn ydyfodol

• darparwyd cyllid ar gyfer cyflwyno Swyddogion Rygbimewn dros 40 o ysgolion a cholegau

• cyflwynwyd prosiect i aildrefnu’r strwythur cystadlaethaua chynghreiriau ar draws ysgolion, colegau a chlybiau igreu strwythur chwarae cydlynol a chydweithredol

• cymerodd dros 7,000 o bobl ifanc ran mewndigwyddiadau chwarae rygbi ar y stryd ac mewn sgwâra drefnwyd gan URC er mwyn annog rhagor o bobl ifanci gymryd rhan yn y gamp

• cymerodd 2,679 o chwaraewyr dan 14 oed ran mewnsesiynau datblygu a drefnwyd, sy’n 128% yn uwch na’rtargedau

• cymerodd 1,398 o chwaraewyr ran yn rhaglen ddatblyguTarian Dewar i rai dan 14 oed – cynnydd o 155%

• cynhaliwyd rhaglenni datblygu ar gyfer 802 ochwaraewyr dan 15 oed – cynnydd o 122%

• cynlluniwyd Fframwaith Llythrennedd CorfforolCenedlaethol mewn cydweithrediad â ChwaraeonCymru

• cyflwynwyd y Cynllun Achredu Ysgolion Rygbi mewn 45o ysgolion

• cafodd y gynghrair dan 18 oed a gynhelir bob dyddMercher fwy o sylw ar y teledu, mewn partneriaeth agS4C

• dathlodd y fenter Sêr Rygbi ei thrydydd tymorllwyddiannus

• cynhaliodd y rhaglen Sêr Bach, i blant rhwng tair a saithoed, 205 o gyrsiau i 1,397 o blant

• cynhaliodd y rhaglen Sêr Iau 35 o wersylloedd i 2,119 oblant

• cafodd dros 100 o blant eu dewis i gynrychioligweithgareddau Sêr Rygbi mewn digwyddiadau mawr

• cafodd dros 300 o blant eu gwahodd i wylio’r tîmcenedlaethol yn hyfforddi yn y Ganolfan RagoriaethGenedlaethol

• cyflwynwyd rhaglen Sêr Rygbi Anabl URC a mynychodd355 o blant a phobl ifanc wersylloedd

Cyllid

• byddwn yn sicrhau cynnydd o 13% yn y cyllid a roddir i’rgêm gymunedol, a fydd yn codi i £2.6 miliwn o’r tymornesaf ymlaen

• bydd grant cyfleusterau gwerth £500,000 yn cael eifuddsoddi mewn clybiau ar lawr gwlad o dymor 2014/15ymlaen

• penderfynodd Bwrdd URC ariannu cynllun PwyntiauCyfranogiad gwerth £750,000, a bydd yr arian hwn yndaladwy yn ystod tymor 2014/15

• bu i 103 o glybiau elwa o’r ffaith bod £750,000 wedi’iroi ar ffurf grant cyfleusterau URC o’r flwyddyn a ddaethi ben yn 2013

• cyflwynwyd cynllun newydd ar gyfer dosbarthutocynnau, sy’n golygu y gall pob clwb ennill hyd at£2,000 a chit rygbi

Datblygu swyddogion gemau a hyfforddwyr

• penododd URC swyddogion gemau ar gyfer dros 8,000o gemau cymunedol

• mynychodd 567 o ymgeiswyr y cwrs dyfarnu lefel 1

• mynychodd 440 o hyfforddwyr gyrsiau gwobr tag

• daeth 400 o ddisgyblion ysgolion uwchradd yn gymwysi hyfforddi yn yr ysgolion cynradd lleol sy’n bwydo euhysgol uwchradd

• cafodd Rheolwr Adnoddau Datblygu Hyfforddwyrnewydd ei recriwtio

• cynhaliwyd Cynhadledd Genedlaethol Hyfforddwyr yBwrdd Rygbi Rhyngwladol (IRB) yng Nghymru


Nesaf, rwyf am droi fy sylw at Stadiwm y Mileniwm,y mae Undeb Rygbi Cymru yn berchen yn llawn arno ac ynei redeg, ac y mae ei holl brosesau masnachol a phrosesaurheoli busnes wedi’u hymgorffori yng ngwaith y Grwp.

Mae penawdau’r flwyddyn o ran Stadiwm yMileniwm yn cynnwys y canlynol:

Digwyddiadau

• dangosodd arolwg annibynnol fod y stadiwm yn dod âgwerth £130 miliwn i’r economi ehangach yng Nghymrubob blwyddyn ac yn cynnal 2,500 o swyddi llawn amser

• yn ogystal, darganfu’r adroddiad fod 70% o’r sawl sy’nymweld â’r stadiwm yn dod o’r tu allan i Gymru

• aeth 60,000 o bobl ar daith dywys swyddogol o gwmpasy stadiwm – 10% yn uwch na’r flwyddyn flaenorol

• cynhaliwyd rownd derfynol olaf erioed y CwpanHeineken yn y stadiwm

• cynhaliwyd seremoni agoriadol Cwpan y Byd Rygbi’rGynghrair a gemau rhwng Lloegr ac Awstralia a rhwngCymru a’r Eidal yn y stadiwm

• cymerodd pob un o’r pedwar rhanbarth ran yn yr ailddigwyddiad ‘Dydd y Farn’ i gael ei gynnal, a oedd yncynnwys dwy gêm gynghrair, un ar ôl y llall

• dychwelodd y seren roc Bruce Springsteen i’r stadiwmgyda’i daith ‘Wrecking Ball’

• cyrhaeddwyd carreg filltir o £500,000 o safbwynt yr ariana gafodd ei gasglu mewn bwcedi i elusennau yn ystodgemau rygbi rhyngwladol Cymru

• cynhaliwyd cyfres o ddigwyddiadau er mwyn dechrauedrych ymlaen at y gemau a fydd yn cael eu cynnal yn ystadiwm yn ystod Cwpan Rygbi’r Byd 2015.

Isadeiledd

• cyhoeddwyd cynlluniau i osod cae chwarae newydd gangwmni Desso, sy’n gyfuniad o laswellt naturiol aglaswellt artiffisial

• derbyniodd y stadiwm ‘Dystysgrif Ragoriaeth’ ganTripAdvisor

• cyflwynwyd system ceblau darlledu integredig, sy’ngolygu mai dim ond cysylltu â’r rhwydwaith ceblau sy’nbodoli eisoes y mae’n rhaid i ddarlledwyr sy’n ymweld âni ei wneud, a bydd hynny’n eu galluogi i ddarlledu ganddefnyddio sawl camera

• ymunodd y stadiwm â chais i gynnal gemau pêl-droedEwro 2020 UEFA yng Nghymru

• cyflwynwyd system gwirio tocynnau newydd sy’ndefnyddio cod bar – sy’n system gynt a mwy cywir

• cyflwynwyd cyfleuster ‘argraffu tocynnau gartref’ ermwyn i gefnogwyr brynu tocynnau

• gosodwyd bwrdd rhuban LED newydd ar gyferhysbysebu ar hyd haen ganol y stadiwm

• cafodd prosiect i wella’r pedair ystafell newid yn ystadiwm ei gymeradwyo

• cafwyd cytundeb ar gyfer gosod Canolfan Feddygolnewydd yn y stadiwm



Diwrnod agored lletygarwch



Nesaf, rwyf am droi fy sylw at Rygbi Elît, sy’n cynnwyspob un o’r carfanau cenedlaethol, y gêm ranbarthol, yllwybr datblygu chwaraewyr a’r holl strwythurau staffio achymorth. Mae hefyd yn cynnwys y cyllid a roddir ynuniongyrchol i’r pedwar rhanbarth yn ogystal â’r broses odrosglwyddo arian a geir gan gystadlaethau a gwaithariannu Uwch-gynghrair led-broffesiynol y Principality.

Mae penawdau’r flwyddyn o ran Rygbi Elît yncynnwys y canlynol:

Y lefel ryngwladol

• cafodd contract Warren Gatland ei ymestyn nes 2019

• cafodd Sam Warburton ei gyflogi fel y chwaraewr cyntafi gael contract deuol cenedlaethol

• cyhoeddodd URC gynnig i gynnal Cwpan Rygbi SaithBob Ochr y Byd yn 2018

• daeth BT yn noddwr crysau tîm saith bob ochr Cymruunwaith eto

• ffurfiodd Gullivers bartneriaeth ag URC fel noddwrteithio swyddogol rygbi Cymru

• cyflwynwyd Capiau’r Llywydd a’u dyfarnu i chwaraewyra chwaraeodd dros Gymru mewn rhai gemau lle naddyfarnwyd capiau llawn

• bu URC yn cyd-gynhyrchu rhaglen ddogfen goffa argyfer ITV Cymru gyda Barn Media ynghylch yr 13 ochwaraewyr rhyngwladol Cymru a fu farw yn ystod yRhyfel Byd Cyntaf

• cyrhaeddodd prop Gleision Caerdydd, Gethin Jenkins,garreg filltir drwy ennill 100 o gapiau dros ei wlad

Y lefel broffesiynol a’r lefel led-broffesiynol

• cytunwyd ar Gytundeb Gwasanaethau Rygbi newydd acarloesol gyda’r pedwar rhanbarth nes 2020, sy’ncynnwys y manylion canlynol:

• bydd y Cytundeb Gwasanaethau Rygbi yn cyfrannudros £60 miliwn i’r gêm ranbarthol yn ystod oes yCytundeb

• bydd contractau deuol cenedlaethol yn cael eu cynnigi chwaraewyr allweddol

• bydd y Cytundeb Gwasanaethau Rygbi yn darparu£8.7 miliwn y flwyddyn i’r rhanbarthau, i’w wario argontractau chwaraewyr sy’n gymwys i chwarae iGymru

• bydd polisi newydd yn cael ei gyflwyno ar gyfer dewis

chwaraewyr i chwarae i’r tîm cenedlaethol, a fydd yncanolbwyntio ar unigolion sy’n chwarae yngNghymru

• bydd nifer y chwaraewyr tramor y gall y rhanbarthaueu cynnwys yn eu carfanau yn cael ei gyfyngu ichwech

• bydd academïau rhanbarthol yn cael eu trosglwyddoi’r rhanbarthau y maent yn eu cynrychioli

• mae URC yn cadw’r hawl i drefnu hyd at 13 o gemaurhyngwladol Cymru y flwyddyn

• mae’r Cytundeb Gwasanaethau Rygbi yn rhoi’r hawli ailgyflwyno gemau rhyngwladol tîm Cymru ‘A’

• bydd chwaraewyr rhanbarthol ar gael i gael eu dewisar gyfer carfan saith bob ochr Cymru

• cyhoeddwyd manylion Cwpan Pencampwyr Rygbi Ewropnewydd

• rhoddwyd hwb i gynghrair PRO12 Guinness gan maidyma’r llwybr i mewn i gystadlaethau Ewrop

• cafodd gwaith datblygu hyfforddwyr ei wobrwyo wrth ihyfforddwyr gorau URC gael eu recriwtio gan yrhanbarthau

• mae adolygiad gan y Pennaeth Rygbi yn paratoi’r fforddi gynyddu cyfranogiad er mwyn rhoi mwy o chwaraewyrar y llwybr i fod yn chwaraewyr elît

• enillodd Pontypridd y dwbl am yr ail flwyddyn yn olynoldrwy orffen ar frig Uwch-gynghrair y Principality a chipioCwpan SWALEC

• enillodd Glynebwy y Bencampwriaeth gan sicrhaudyrchafiad i Uwch-gynghrair y Principality

• atgyfnerthodd tîm gogledd Cymru – RGC 1404 – eistatws ym maes rygbi cynrychioliadol gan orffen yndrydydd yn y Bencampwriaeth

• cafwyd cynnydd o 19% yn y cyllid a ddarperir i’r gêmled-broffesiynol yng Nghymru ar gyfer tymor 2014/15wrth i’r ffigur hwnnw godi i £1.5 miliwn

• cyflwynwyd cystadleuaeth Saith Bob Ochr Fosters, sy’ngystadleuaeth flynyddol newydd i glybiau’r Uwch-gynghrair a thîm RGC 1404

Rygbi Merched

• cafwyd mwy o ymwneud â rygbi merched ar lefelryngwladol wrth i mi barhau’n Gadeirydd penodedigPwyllgor Pencampwriaeth y Chwe Gwlad i Ferched


• cafodd cyllid gan y Bwrdd Rygbi Rhyngwladol eiddefnyddio i hybu cyfranogiad mewn rygbi merched

Mae penawdau’r flwyddyn o ran materion ariannola masnachol a materion busnes yn cynnwys ycanlynol:

• cofnodwyd elw cyn treth o £2.4 miliwn ar gyfer yflwyddyn

• sicrhaodd URC drosiant o £58.5 miliwn ar gyfer yflwyddyn

Mae llofnodi’r Cytundeb Gwasanaethau Rygbi gyda’rpedwar rhanbarth yn golygu bod gan rygbi Cymrugytundeb arloesol a fydd yn gwarchod ac yn meithrin ygêm broffesiynol yng Nghymru am y chwe blynedd nesafo leiaf. Mae’r Contractau Deuol Cenedlaethol a gaiff eucreu’n darparu arf pwerus i URC wrth geisio cadw mwy ochwaraewyr rhyngwladol yng Nghymru.

Yn sgîl y trafodaethau ynghylch y CytundebGwasanaethau Rygbi cafwyd cadarnhad y bydd Syr WynWilliams yn parhau’n Gadeirydd Bwrdd y Gêm RanbartholBroffesiynol. Roedd hwnnw’n gyhoeddiad i’w groesawu abydd ef yn sicr yn ychwanegu at y pwys a roddir ardrafodaethau’r corff pwysig hwn.

Cafodd yr adolygiad llywodraethu a gynhaliwyd dangadeiryddiaeth Syr Robert Owen ei gwblhau yn ystod y

flwyddyn, a bydd argymhellion ar gyfer newid yn cael eucyflwyno i’w cymeradwyo.

Dyma’r rhagolygon ar gyfer 2014/15 a’rblaenoriaethau ar gyfer y flwyddyn sydd i ddod:

Yn ystod y flwyddyn sydd i ddod bydd Grŵp URC ynparhau i weithio yn unol â’r nodau a gyhoeddwyd yn eincynllun pum mlynedd sy’n esblygu, a gyflwynwyd yn y llecyntaf yn 2007. Bydd yn flwyddyn sy’n llawn cyfleoeddcyffrous lle byddwn yn parhau’n effro i’r heriau ariannol aceconomaidd ehangach a fydd yn ein hwynebu. Mae’nhanfodol ein bod yn gwneud y defnydd gorau posibl o’rwybodaeth sydd gennym am natur gylchol ein busnes.Caiff y blaenoriaethau yr ydym wedi’u gosod ar ein cyferein hunain yn ystod y flwyddyn eu mesur yn erbyn sefyllfaariannol ein busnes. Rwy’n dal yn hyderus y byddwn yngallu cyflawni’n effeithiol yng nghyswllt ein cylch gwaither mwyn rheoli a datblygu camp genedlaethol Cymru.

Dyma ein blaenoriaethau ar gyfer y deuddeg mis nesaf:

• cefnogi’r Garfan Genedlaethol wrth iddi baratoi ar gyferCwpan Rygbi’r Byd 2015

• paratoi i gynnal yn llwyddiannus wyth o gemaurhyngwladol Cwpan Rygbi’r Byd yn Stadiwm y Mileniwm

• cyflwyno a rheoli’r cae chwarae newydd gan Desso ynStadiwm y Mileniwm erbyn gemau prawf yr Hydref



Sam Warburton yn arwyddo’i gytundeb



• defnyddio’r system ceblau darlledu pwrpasol newydd yny stadiwm

• gweithio gyda’n pedwar rhanbarth i ddatblygu rygbiproffesiynol yng Nghymru drwy’r amcanion a’rblaenoriaethau a nodwyd yn y Cytundeb GwasanaethauRygbi newydd

• gwella Uwch-gynghrair y Principality drwy delerau’rCytundeb Cyfranogiad presennol

• parhau i annog datblygiad rygbi cynrychioliadol yn ygogledd

• datblygu carfan Saith Bob Ochr Cymru drwy warantubod mwy o chwaraewyr o safon yn cael eu dewis

• cyflwyno Rheolwr Rygbi Merched Cenedlaethol er mwyndatblygu rygbi merched

• rhoi protocolau a strwythurau’r Adran Rygbi ar waith, afydd yn helpu i gynyddu cyfranogiad yn y gêmgymunedol yn y pen draw

• gwella’r cysylltiad â phob un o’r 335 o aelodau, ac ynenwedig y clybiau sy’n aelodau o’r Undeb

• trefnu bod y Llywydd, y Cadeirydd a Phrif Weithredwr yGrwp yn cynnal ymweliadau ffurfiol ag ardaloedd ermwyn gwella adborth gan glybiau

• cyflwyno newidiadau sylweddol i ddulliau llywodraethuos caiff hynny ei gymeradwyo gan yr aelodau

• dyrannu gwerth £750,000 o offer i glybiau cymunedoldrwy’r cynllun Pwyntiau Cyfranogiad

• datblygu gweithdai ‘Rugbyforce’ Natwest er mwyn helpuclybiau i wella eu rheolaeth ariannol

• gweithredu’r rhaglen gydweithredu ar gaeau artiffisial3G gyda champau eraill a Chwaraeon Cymru er mwyncyflwyno arwynebau hyfforddi a chwarae o’r radd flaenafledled Cymru

Casgliad

Mae’r Adroddiad Blynyddol hwn yn cynnig tystiolaethsylweddol bod Undeb Rygbi Cymru wedi parhau iganolbwyntio ar yr hyn sy’n bwysig yn ystod blwyddynanodd. Rydym wedi cyflawni’r blaenoriaethau agyhoeddwyd gennym ac wedi ymdrechu i helpu rygbiCymru i esblygu a datblygu wrth i’r unfed ganrif ar hugainfynd rhagddi ac wrth i ni wynebu oes lle mae rygbiproffesiynol a rygbi cymunedol yn wynebu newidiadau sy’ndigwydd yn fwyfwy cyflym.

Wrth edrych yn fanwl ar ein cyflawniadau yn ystod yflwyddyn a ddaeth i ben yn 2014 gwelir tystiolaeth glir einbod yn buddsoddi yn y gamp yn unol â’r blaenoriaethau anodwyd yn ein cynllun pum mlynedd.

Nid oes amheuaeth nad yw sylwadau gan y cyhoedd a’rcyfryngau wedi bwrw cysgod dros y deuddeg misdiwethaf, ac mae rheini’n aml wedi ceisio effeithio ar einffocws a chuddio ein llwyddiannau. Ni allwn ganiatáu ihynny fynnu’r sylw na thynnu ein meddwl oddi ar eingwaith.

Bydd y flwyddyn nesaf yn un hynod o brysur ar bob lefel,gan fod Cwpan Rygbi’r Byd ar y gorwel ar gyfer y gêm elîtynghyd â chystadlaethau newydd ar lefel Ewropeaidd argyfer ein rhanbarthau a gwell cynghrair PRO12 Guinness.O ran y gêm gymunedol, rydym yn dechrau ar strategaethnewydd a fydd yn adfer y cysylltiadau rhwng ein hysgoliona’n clybiau. Y nod yn y fan hon yw gwella lefelaucyfranogiad a chryfhau rygbi Cymru yn gyffredinol drwyhybu rygbi ar lawr gwlad.

Mae’r ffaith bod Stadiwm y Mileniwm yn parhau i esblyguyn dyst i’n huchelgais. Mae canlyniadau’r arolwg ynghylcheffaith economaidd a gaiff eu crynhoi uchod yn dangos ynglir cymaint o gaffaeliad yw’r stadiwm i Gymru.

Edrychwn ymlaen â hyder a chyffro at y flwyddyn heriolsydd o’n blaenau, sy’n llawn cyfleoedd i rygbi Cymru.

Hoffwn ddiolch i bawb sy’n rhan o’r siwrnai hon, o’nchwaraewyr, ein cefnogwyr, ein gwirfoddolwyr, einrhanbarthau a’n clybiau i’r staff ardderchog sydd gan GrwpURC. Hoffwn roi teyrnged yn arbennig i gyflawniadauaruthrol ein Cadeirydd, David Pickering. Wrth edrych i’rdyfodol rwy’n hyderus y byddwn, drwy weithio gyda’ngilydd mewn undod a chytgord, yn gallu parhau iddatblygu a hybu ein gêm.

Diolch yn fawr iawn

Roger Lewis,Prif Swyddog Gweithredol y GrwpUndeb Rygbi Cymru Cyfyngedig


Group Chief Executive’s summary

It has proved to be a year of exceptional highs and lowsfor the WRU Group, with financial success balancedagainst protracted negotiations to conclude a new RugbyServices Agreement (“RSA”) with the four Regionscombined with difficulties over the introduction of a newNational League structure.

There is no doubt that the Extraordinary General Meetingheld in June 2014 was a significant landmark within theyear and the views and opinions of the WRU’s memberclubs served to inject a sense of balance into the Welshrugby environment.

The Group can emerge from the year far stronger andunified with the new RSA in place, a better fundedcommunity game and Premiership Division plus thereassuring knowledge that Warren Gatland will nowremain as Head Coach until 2019, all underpinned by avery strong financial performance.

The key points of YE14 are summarised below:

Community Rugby embraces the entire game outside theprofessional environment and includes our NationalLeague structures and competitions, our support systemsand initiatives along with schools and college rugby.

In Community Rugby the headlines for 2013/14include:

Clubs

• a new structure introduced for the SWALEC NationalLeagues to create more local derbies and avoid longdistance travel where possible

• 3,000 volunteers were trained on schemes aimed atimproving the administration of grassroots clubs

• the “Join the Beat” scheme hosted 122 rugby eventsacross Wales

• 183 clubs took up the offer of introducing WRU ClubWebsites to improve our communication

• the initiative to stop the payment of community clubplayers continued with 224 clubs including a pledge intheir constitutions that the practice will not take place

• a new Welsh Rugby Club Operations Manual wascreated and will be sent to all clubs

• the Natwest Rugbyforce “Creating a Sustainable Club”initiative was launched with 18 workshops to helpvolunteers share good practice



Roger Lewis, Group Chief Executive

Womens’ University Tournament



• WRU Club Safeguarding Officers hosted 46 club trainingevents to boost the protocols aimed at protecting youngand vulnerable people

• a link up with the Welsh Hearts charity to distributedefibrillator machines to all clubs has begun

• a project undertaken to create new concussionrecognition protocols for the community game

• more than 2,500 players aged between 15 and 30identified on an exiles database

• work continued on a WRU Welsh Language Policy andbi-lingual website which have now been introduced

Schools

• a new strategy introduced to align schools and clubrugby in the future

• funding provided to introduce Rugby Officers into morethan 40 schools and colleges

• a project to revamp the league and competition structureacross schools, colleges and clubs to create a coordinatedand collaborative playing structure

• more than 7,000 young people took place in WRU StreetRugby and Cage Rugby events to encourage involvementin the sport

• 2,679 U14 players took part in organised developmentsessions – 128% above targets

• the U14 Pre Dewar Shield Development Programmeinvolved 1,398 players – 155% up

• development programmes for 802 U15 players – up122%

• a National Physical Literacy Framework designed inconjunction with Sport Wales

• the School of Rugby Accreditation Scheme rolled out to45 schools

• the U18 Wednesday league achieved more TV coveragein partnership with S4C

• the Rugby Stars initiatives celebrated its third successfulseason

• the Little Stars Programme for three to seven year oldshosted 205 courses with 1,397 children attending

• the Junior Stars hosted 35 camps for 2,119 children

• more than 100 children selected to represent the RugbyStars activities at major events

• more than 300 children invited to watch the NationalTeam train at the National Centre of Excellence

• the WRU Disability Rugby Stars Programme wasintroduced with 355 youngsters attending camps

Funding

• a 13% increase in funding to the community game to£2.6m from next season.

• a £500,000 facilities grant investment in grassroots clubspayable from the 2014/15 season

• a WRU Board decision to fund a £750,000 ParticipationPoints scheme payable in the 2014/15 season

• 103 clubs benefited from the WRU Facility Grant awardof £750,000 from YE13

• a new ticket distribution scheme which can earn eachclub up to £2,000 plus rugby kit

Match Officials and Coach Development

• the WRU appointed match officials for more than 8,000community games

• a total of 567 candidates attended the Level Onerefereeing course

• 440 coaches attended Tag award courses

• 400 secondary school pupils qualified to coach at theirlocal primary feeder schools

• a new Coach Development Resource Manager wasrecruited

• an IRB National Coaching Conference was hosted inWales

Next, the Millennium Stadium, which is fully ownedand operated by the Welsh Rugby Union with all itscommercial and business management integrated withinthe Group.

The Millennium Stadium headlines for the yearinclude:

Events

• an independent survey showed the Stadium delivers£130m into the wider economy of Wales annually andsupports 2,500 full time jobs

• the report also found that 70% of the visitors to theStadium come from outside Wales


• 60,000 people took official guided tours of the Stadium– 10% up on the previous year

• the last ever Heineken Cup Final was hosted at theStadium

• hosting the opening ceremony of the Rugby LeagueWorld Cup and games between England and Australiaand Wales versus Italy

• all four Regions took part in the second Judgement Daydouble header

• the rock superstar Bruce Springsteen returned to theStadium with his Wrecking Ball tour

• charity bucket collections at the Stadium achieved the£500,000 milestone at Wales rugby international games

• the countdown to Rugby World Cup 2015 games at theStadium began with a series of events

Infrastructure

• plans to install a new Desso part grass part artificial pitchwere unveiled and are well advanced

• the Stadium achieved a Tripadvisor ‘Certificate ofExcellence’

• a new integrated broadcast cabling system wasannounced which means visiting broadcasters simplyhave to plug into the a cabling network which allowsthem to run multi-camera coverage

• a new, quicker and more accurate barcode ticket checksystem was introduced

• a “print at home” facility was introduced for fans topurchase tickets

• a new LED ribbon board for advertising was installed onthe middle tier

• a project to improve all four Stadium changing roomswas approved

• agreement for the installation of a new Stadium MedicalCentre



EGM



On to Elite Rugby, which includes all the national squads,the Regional game, the player development pathway andall staffing and support structures. This also includes thedirect funding for the four Regions in addition to the passthrough of competition money and the funding of thesemi-professional Principality Premiership Division.

The Elite Rugby headlines for the year include:

International

• Warren Gatland contracted until 2019

• Sam Warburton became the first National Dual Contractplayer

• the WRU announced a bid to host the 2018 World CupSevens

• BT returned as shirt sponsor to the Wales Sevens team

• Gullivers partnered the WRU as Welsh rugby’s officialtravel sponsor

• President’s Caps were introduced and awarded to thosewho played for Wales in certain uncapped games

• the WRU co-produced a commemorative documentaryfor ITV Wales with Barn Media on the 13 Welshinternationals who died in World War 1

• the Cardiff Blues prop forward Gethin Jenkins achievedthe 100 cap milestone

Professional and Semi Professional

• a new and ground-breaking RSA with the four Regionsuntil 2020 including the following:

• the RSA delivers more than £60m into the Regionalgame during its term

• National Dual Contracts for key players are beingintroduced

• the RSA delivers £8.7m a year to the Regions to bespent contracting Welsh qualified players

• a new senior player selection policy focusing onWales based individuals is being introduced

• a six player limit on foreign players is introduced

• Regional academies to be transferred to the Regionsthey represent

• WRU retains the right to arrange up to 13 Walesinternational games a year

• the RSA provides the right to reintroduce A teaminternational games

• Regional players will be available for Wales Sevenssquad selection

• a new European Champions Cup competition unveiled

• the Guinness PRO12 boosted as the qualification routeinto European competition

• coach development rewarded with WRU high flyersrecruited by the Regions

• a review by the Head of Rugby sets a course for greaterparticipation to put more players onto the elite pathway

• Pontypridd won the Principality Premiership League andSWALEC Cup double for the second successive season.

• Ebbw Vale won the Championship Division and securedpromotion to the Principality Premiership Division

• the North Wales team RGC1404 consolidated theirstatus in representative rugby with a third place finish inthe Championship Division

Launching the Scorch Magazine


• a 19% boost in funding to £1.5m for the semi-professional game in Wales for the 2014/15 season

• a new annual Fosters Sevens competition including thePremiership clubs and RGC1404 was introduced

Women’s Rugby

• greater involvement in the international women’s gameas I continue as the appointed chair of the Womens’ SixNations Committee

• IRB funding was used to promote participation in thewomen’s game

The financial, commercial and business affairsheadlines of the year are as follows:

• a profit before tax figure of £2.4m was posted for theyear

• the WRU achieved a turnover of £58.5m for the year

The completion of the RSA with the four Regions providedWelsh rugby with a ground breaking agreement which willprotect and nurture the professional game in Wales for atleast the next six years. The creation of National DualContracts provides the WRU with a powerful weapon tohelp keep more senior international players in Wales.

The confirmation that Sir Wyn Williams will continue asthe chair of the Professional Regional Game Board was awelcome outcome of the RSA negotiations and he willcertainly add weight to the deliberations of this importantbody.

The governance review carried out under the chairmanshipof Sir Robert Owen was completed during the year andrecommendations for change are to be presented forapproval.

Outlook for 2014/15 and the priorities for the yearahead:

During the year ahead the WRU Group will continue towork within the declared aims of our evolving five yearplan which was first introduced in 2007. It will be a yearof exciting opportunity within which we will remain alertto the wider financial and economic challenges withinwhich we operate. It is crucial that we utilise ourknowledge of the cyclical nature of our business to besteffect. The priorities we have set ourselves within the yearare all measured against the financial realities of ourbusiness. I remain confident that we will be able to delivereffectively on our remit to manage and develop thenational sport of Wales.



Opening Caerphilly Centre of Sporting Excellence



Our priorities over the next twelve months are to:

• support the National Squad in its preparations for RugbyWorld Cup 2015

• prepare to successfully deliver eight RWC internationalfixtures at the Millennium Stadium

• unveil and manage the new Desso pitch at theMillennium Stadium in time for the Autumn test matches

• utilise the new bespoke broadcast cabling system withinthe Stadium

• work with our four Regions to develop professionalrugby in Wales through the stated aims and priorities ofthe new RSA

• enhance the Principality Premiership Division through theterms of the existing Participation Agreement

• continue to encourage development of representativerugby in North Wales

• develop our Wales Sevens squad through guaranteedselection of more quality players

• introduce a new National Women’s Manager to developthe women’s game

• to put in place Rugby Department protocols andstructures which will ultimately help grow participationwithin the Community Game

• improve liaison with all our 335 members and specificallyour member clubs

• embark on formal district visits by the President,Chairman and Group CEO to improve club feedback

• introduce significant governance changes if approved bythe members

• allocate £750,000 worth of equipment to communityclubs through the Participation Points Scheme

• advance the Natwest Rugbyforce workshops to helpclubs improve their financial management

• implement the 3G Artificial Pitch CollaborationProgramme with other sports and Sport Wales tointroduce the state of the art training and playingsurfaces across Wales

Conclusion

This Annual Report offers significant evidence that througha difficult year the Welsh Rugby Union has remainedfocused. We have delivered on our declared priorities and

strived to help Welsh rugby evolve and develop as wemove further into the twenty first century and an erawithin which professional and community rugby face everincreasing rates of change.

Close examination of our achievements during YE14 offerclear evidence that we are investing in the game in linewith the priorities contained in our five year plan.

There is no doubt that the past twelve months have beenovershadowed by public and media comment which hasoften strived to obscure our focus and our successes. Wecannot allow that to dominate or distract us from ourfocus.

The year ahead will be exceptionally busy on all levels withthe Rugby World Cup on the horizon for the elite gamecombined with new European competitions for ourRegions and an enhanced Guinness PRO12. In thecommunity game we are embarking on a new strategywhich will revive the links between our schools and clubs.The aim there is to improve participation and strengthenthe whole of Welsh rugby by bolstering our grassrootsgame.

The continued evolution of our Millennium Stadium istestimony to our ambition. The economic impact surveyresults summarised above clearly show what an asset it isfor Wales.

We look forward with confidence and excitement to achallenging year ahead which is packed with opportunityfor Welsh rugby.

I want to thank everyone engaged with this journey fromour players, supporters, volunteers, Regions, clubs to theexcellent staff here at the WRU Group. In particular I paytribute to the extraordinary achievements of our ChairmanDavid Pickering. Going forward, by working together inunity and harmony, we can continue to develop and growour game.

Diolch yn fawr iawn

Roger Lewis,Group Chief Executive OfficerThe Welsh Rugby Union Limited



The Group’s business and objectives

Group activities

The Welsh Rugby Union Limited’s (“Company”) principalactivity is to promote, foster, encourage, control andimprove the game of rugby football throughout Wales.The Company wholly owns Millennium Stadium plc(“MS”), WRU National Centre of Excellence Ltd(“WRUNCE”), and WRU Supporters Club Ltd (“WRUSC”)and, collectively, the Company and these subsidiaries arereferred to as the Group.

Key performance indicators (“KPIs”)

The KPIs of the Group are:

Rugby performance

• Success of the National Squad

• Performance of the four Welsh Regions

• Performance of the Group’s Age-Grade teams

An analysis of the Group’s performance against thesemeasures is shown in the ‘Elite Rugby Review’ section ofthis report.

Participation in rugby

• Development of the elite player talent within Wales

• Participation levels in Community Rugby, includingwomen and junior numbers

An analysis of the Group’s performance against thesemeasures is shown in the ‘Community Rugby Review’section of this report.

Financial performance

• Generation of sufficient earnings before interest,depreciation, allocations and exceptional items(“EBITDA”), over the medium term, to fulfil theGroup’s objectives and obligations

• Number of and attendances at international rugbymatches, featuring the National Squad, held at theMillennium Stadium

• Provision of consistent and affordable levels of fundingto clubs and affiliated organisations to allow them toimplement long term plans to fulfil their objectives

An analysis of the Group’s performance against thesemeasures is shown below.

Dynamics of the business

The activities, both operational and financial, of eachcompany in the Group are so intrinsically linked that thereis little merit in assessing individual performance. Whilstthey are all separate legal entities and are obliged toprepare separate financial statements, it is the Group’sperformance that is the only meaningful measure.

The Group must deliver on its commercial activities to allowre-investment in elite rugby, community rugby and thestadium.

Accordingly, the Group’s income generation is paramountto delivering on its stated objectives. The key economicincome driver of the Group’s business is the hosting ofevents at the Millennium Stadium; particularly, the hostingof international rugby events featuring the Welsh team andespecially a winning Welsh team. The more matches thatare played, the greater the Group’s revenues and profitsthat are available for re-investment in Welsh rugby. TheGroup welcomed 439,000 (2013: 355,000) rugbyspectators at the Millennium Stadium for the Dove MenAutumn Series and the RBS Six Nations Championship,analysed as follows:

Strategic reportYear ended 30 June 2014

Steve Phillips, Group Finance Director

Wales in action



2014 2014 2013 2013No. of ‘000 No. of ‘000home home

matches matches

Autumn Series 4 226 4 208

Six Nations 3 213 2 147

7 439 6 355

The average attendance per match was 63,000 (2013:59,000) and equated to an average of 85% (2013: 80%)when expressed as a measure of capacity attendance.

The primary reason that the overall attendance increasedin 2014 was due to playing three Six Nations matches ascompared to the two in 2013.

The average ticket income per attendee at matches heldat the Millennium Stadium in YE14 was £41 (2013: £44).

Commercial income, including sponsorship income andhospitality income, is also critical to the financialperformance of the Group.

Within reason, the Group’s operational cost base isrelatively fixed; albeit there are incremental costs if moreGroup controlled events are staged. As a consequence,incremental events should mean incremental profits whichcan be reinvested into the game across all levels.

Financial Performance

Overview of Performance

The Group generates income from its internationalmatches (including sponsorship and broadcast rights) andincremental revenue from the use of the stadium. Thisincome meets the operating costs of the Group to allowthe majority of the surplus to be “invested” in “WelshRugby”, as follows:

2014 2013£’m £’m

Group income 58.5 61.0Business and administration (6.1) (6.0)Direct costs (13.0) (13.7)Stadium costs (5.0) (5.3)

Surplus 34.4 36.0

As analysed later on page 24, the Group earned some£58.5m (2013: £61.0m) predominantly from internationalrugby matches staged at the Millennium Stadium. Thesematches generated 55% (2013: 53%) of the Group’soverall income.

Commercial income at £14.0m contributes 24% (2013:22%) of the Group’s overall income.

Two other income streams, not generated from staginginternational rugby matches, arise from:

• Competition income which represents the incomefrom competitions including the Heineken Cup andthe RaboDirect Pro12; and

• Other events which represent events staged at theMillennium Stadium apart from rugby matchesfeaturing the National Squad - including, in the twoyears indicated above, music concerts, motorsport,the Heineken Cup Final and the Olympics.

These two forms of income amount to some 18% (2013:21%) of the Group’s income.

The remaining income arises from ancillary activities andvarious grant sources, and in 2013 also included incomederived from the British and Irish Lions’ Tour.

The business and administration costs represent the costsof managing the Group; the direct costs represent thecosts of staging both international rugby matches andother events held at the stadium; the stadium costsrepresent the costs of managing the stadium other thanthose directly attributable to events.

Wales in action



The surplus of £34.4m (2013: £36.0m) made by the Groupwhich is invested in “Welsh Rugby” can be analysed asfollows:

2014 2013£’m £’m

Operational costs- Elite rugby 4.4 4.2- Community rugby 2.7 2.7

7.1 6.9

Allocations to affiliates - Regions (Professional) 17.1 16.9- Clubs (Semi - professional) 1.1 1.2- Community rugby 4.3 4.0

22.5 22.1

Total investment in “Welsh Rugby” 29.6 29.0

The balance is analysed as follows:Surplus 34.4 36.0Total investment in “Welsh Rugby” (29.6) (29.0)

4.8 7.0

Deprecation (net of grants) 3.2 3.2Exceptional items (see Note 4) (1.6) -Interest costs 1.2 1.7Fair value gains on derivative (0.3) (0.2)financial instrumentsTax charge/(credit) 0.5 (3.3)Transferred to reserves 1.8 5.6

4.8 7.0

The allocations to the four Regions have continued toincrease by 1% (2013: 12%) to £17.1m (including thecompetition income referred to above). These allocationscover all international player release and provide financialsupport for the four Regions and reflect the ParticipationAgreement signed in September 2009.

The allocation to the Group’s semi-professional league hasdecreased slightly from the previous year and stands at£1.1m. The allocations to the Group’s community clubshave increased by 7% to £4.3m; this increase includes£0.5m for facilities grants and £0.8m for the participationpoints initiative, both of which will be paid out after theyear end. This increase follows on from the increase of 5%in YE13. The total investment in the community game is:

2014 2013£’m £’m

Operational costs 2.7 2.7Allocations 4.3 4.0

7.0 6.7

On a pre-exceptional basis, the Group generated anoperating profit of £1.7m (2013: £3.8m) from which netdebt service of £1.2m (2013: £1.7m) is deducted, the fairvalue gains on derivative instruments were £0.3m (2013:£0.2m) resulting in a profit before exceptional items andtax of £0.8m (2013: £2.3m).

Revenues

Revenues are analysed as follows:

2014 2013£’m £’m

Match income 32.4 32.1Competition income 8.9 9.2Commercial income 14.0 13.1Other event income 1.5 3.5Other income 1.7 3.1

58.5 61.0


Wales in action



Match income increased by £0.3m predominantly due toone more home match in this year’s RBS 6 Nations, offsetby lower average ticket prices for the Six Nations andAutumn Series matches and a reduction in broadcastincome. Match income can be further analysed as follows:

2014 2013£’m £’m

Autumn Series 11.0 11.8Six Nations 20.9 19.8Other broadcast income 0.5 0.5

32.4 32.1

Commercial income increased by 7% to £14.0m due toincreases in the sponsorship programme and hospitalityincome.

Other event income decreased to £1.5m; due to thereduced programme of events compared to YE13. In YE13,11 football matches were staged for the 2012 Olympics.

Operational costs

As shown in Note 2(b), the Group’s operational costs havedecreased by some 2% to £31.2m. This overall decreaseis largely due to a decrease in Millennium Stadium event

delivery costs, as a result of the reduced programme of nonWRU events.

Business and administration costs have increased by 2%to £6.1m in line with inflationary increases.

Direct costs are costs incurred directly in relation toattaining revenues and will include all National Squad costsand third party costs incurred in delivering events at theMillennium Stadium. These costs have decreased by £0.7mmainly as a result of:

• a decrease in costs of staging non WRU events, due tothe reduced events programme;

• a decrease in player costs; and

• the above has been offset by an increase in match costs,resulting from the additional home Six Nations match inYE14.

The costs in respect of elite rugby have increased by 3%to £4.4m and include managing the age-grade structures,the national 7s side, player development, referee costs,National Centre of Excellence and insurance whichcollectively amount to some 66% (2013: 63%) of the totalwith the balance of the 34% (2013: 37%) comprising staffcosts, including the staff costs of the academy structures.

The costs in respect of community rugby have remained at£2.7m. This follows on from the 29% increase in YE13.Community rugby costs include coach development,referee costs and insurance which amount to some 42%(2013: 42%) of the total with the balance of the 58%(2013: 58%) comprising staff costs.

Stadium costs have decreased by some £0.3m to £5.0mmainly due to the successful appeal against the stadium’sbusiness rateable value, which has reduced the businessrates charge.

EBITDA and net result

One of the key measures of the Group is the earningsbefore interest, tax, depreciation, exceptional items andallocation to affiliates (“EBITDA”). This is a key measure asit is the best proxy for cash generated from the Group’soperational activities. This provides the cash to fund theGroup’s strategic objectives.

The Group’s EBITDA was £27.3m (2013: £29.0m). TheGroup’s pre-exceptional profit before tax was £0.8m(2013: £2.3m); after exceptional items, a profit before taxof £2.4m (2013: £2.3m). This can be analysed as follows:

NatWest Rugby Force meeting




2014 2013£’m £’m

Company 25.7 27.3WRUNCE 0.2 0.2WRUSC 0.1 (0.1)MS 1.3 1.7Group EBITDA 27.3 29.1

Allocations to affiliated organisations (22.5) (22.1)Exceptional items 1.6 -Depreciation (net of grant release) (3.1) (3.2)

Operating profit 3.3 3.8

Net interest (1.2) (1.7)Fair value gains on derivative 0.3 0.2financial instruments

Profit before tax 2.4 2.3

Tax (0.6) 3.3

Profit after tax 1.8 5.6

Net interest expense

The Group’s net interest expense is analysed as follows:

2014 2013£’m £’m

Bank interest payable & similar 0.8 1.0Bank charges 0.3 0.2Fair value gains on derivative (0.3) (0.2)financial instrumentsInterest due to HMRC arising from 0.1 0.5settlement of capital allowancesTotal 0.9 1.5

The Group has derivative instruments that hedge themajority of the Group’s debt, as shown in note 14. Theseinstruments ensure that the rate of interest paid by theGroup will be in a defined range. Given that the prevailingLIBOR rates during YE14 were below the floor of thederivative instruments, the £0.8m shown under bankinterest payable & similar above includes some £0.2m(YE13: £0.2m) of interest cost arising from these derivativeinstruments.

The fair value gains on derivative financial instrumentsabove are a function of comparing the existing derivative

financial instruments to current market values; theseamounts are unrealised.

Exceptional items

During the year, the Group incurred charges that due totheir size and nature were considered “exceptional”. TheGroup’s definition of exceptional items includes theidentification of significant non-recurring items that enablethe “normal” financial performance of the Group to bebetter understood. As shown in Note 4, exceptional itemscomprised legal and professional costs and accelerateddepreciation on the old pitch system offset by a businessrates rebate in respect of the Millennium Stadium.

2014 2013£’m £’m

Legal and professional costs (0.2) -Accelerated depreciation on pitch system (0.2) -Business rates rebate 2.0 -Total 1.6 -

Taxation

During YE14, the Group paid to HM Revenue & Customs("HMRC") the second of three payments in respect of thehistoric tax liability that was agreed in YE13. This paymentis included in the tax paid amounts on the Group’scashflow. The third and final payment will be made inMarch 2015.

WRU Sports Medicine Conference



Cashflow and Net Debt

The Group’s net cash inflows from operating activitieswere as follows:

2014 2013£’m £’m

EBITDA 27.3 29.1Allocations to affiliated organisations (22.5) (22.1)Exceptional items 1.8 -Working capital movements 1.3 (3.3)Net cash inflows from 7.9 3.7operating activities

From this amount in YE14, the Group paid net interestcosts of £1.2m, paid £0.3m in respect of fixed assets,repaid a grant to the Compass Group of £0.1m and paidtax of £1.7m leaving a net cash increase of £4.6m.

Net debt, which is defined as bank loans, debenture loansless cash balances, as at 30 June 2014 was £62.5m (2013:£67.1m).

Net bank debt, which is bank loans less cash balances, was£24.9m (2013: £29.5m). Included within these amounts issome £10.0m which is repayable only in the event ofcertain defined events occurring.

The net bank debt position, excluding the £10.0m above,of the Group is as follows:

30 June 2014 30 June 2013£’m £’m

Loans:Term loan 10.0 12.8Revolving credit facility (“RCF”) 5.0 7.5

15.0 20.3Cash (0.1) (0.8)Net bank debt 14.9 19.5

The decrease in net bank debt during the year of £4.6mincludes a £2.8m reduction in the term loan in line withthe terms of that loan and a £2.5m decrease in the RCF.The RCF was £5.0m drawn as at 30 June 2014, £7.5mdrawn as at 30 June 2013 and had a maximum draw of£10.3m during the year. The RCF was fully repaid on anumber of occasions during the year highlighting theseasonality of the Group’s business.

As set out in Note 13, as at 30 June 2014, the Group hadunutilised facilities of £12.5m (2013: £10.0m).

As part of the banking agreements the Group has tocomply with bank covenants which require the Group to,inter alia, meet certain levels of cashflows and surpluses.This enforces normal business practices on the Group, butlimits the extent to which the Group can invest, makeallocations to affiliated organisations and access thefacilities above.

These bank covenants are typical of those applying tocommercial businesses. It is in the Group’s best intereststo comply with these covenants as a breach would be adefault of the loan agreements. The Group’s financialmanagement and controls are structured so that the Groupcomply with these covenants.

Capital expenditure

During YE14, the Group invested in some £0.3m of capitalexpenditure; the main categories of investment were asfollows:

£’m

National Centre of Excellence 0.2Other capital expenditure 0.1

0.3

The amounts shown for the National Centre of Excellenceabove include gym and medical equipment.

Balance sheet and reserves

The increase in the Group's net assets from £11.3m to£13.1m arises from the retained profit for the year.

The fixed assets of the Group reduced by some £4.8m,reflecting the capital expenditure of £0.3m offset by thedepreciation and exceptional depreciation charged in theyear of £5.1m.

Operating working capital fluctuates from year to yeardepending upon the timing of events arising immediatelyprior to the year end.

Matthew Rees returns to rugby




Principal risks and mitigation strategies

As outlined earlier in this report, the key objectives of theGroup are re-investment in elite rugby, community rugbyand the stadium.

The Directors’ assessment of the principal risks to deliveringthese objectives, their potential affect and the steps takenby the Group to mitigate these risks are set out below:

Income generation – the ability to generate incomedictates the level of re-investment the Group is able tomake in all forms of rugby. A sustained fall in incomewould lead to a reduction in financial resource availablefor re-investment in rugby.

Some 79% (2013: 74%) of the Group’s income ispredominantly derived from staging international matchesfeaturing the National Squad and the commercial activitiesassociated with the National Squad. Given its significance,the mitigation of income risk is therefore focused on matchand commercial incomes.

The Group seeks to mitigate risk to income by, wherepossible, entering into long term arrangements with itsbroadcasters, sponsors and other commercial partners.The Group’s ticket pricing strategy is focused onmaintaining a balance between the highest possibleattendances and strong financial returns. The Group’sticket prices are reviewed annually with reference tomarket conditions and the opposition faced.

As noted above, 79% (2013: 74%) of the Group’s incomeis derived from activities associated with the NationalSquad. The performance of the National Squad will havean impact on the Group’s ability to generate income,particularly over the medium to long term. The Group aimsto ensure the success of the National Squad by recruitinga world class coaching and medical team to provide thebest possible support to National Squad players, securingadditional preparation time for the National Squad playersand extensive investment in training facilities, to ensure theNational Squad have the best possible environment inwhich to train.

The provision of adequate banking facilities - theGroup is financed by a mixture of bank and debenturedebt. The continued availability of the bank debt facilities,at competitive rates, is crucial to the future prospects ofthe Group. The Group’s banking facilities are subject tocompliance with financial covenants and non-complianceof these covenants could significantly impact on theGroup’s banking facilities. Ensuring adherence to the

financial covenants forms a key part of all policy andstrategy and the Group has a rigorous annual budgetingprocess that is focused on covenant compliance. TheGroup reviews performance against this budgetthroughout the year in order to identify any potential risksto compliance. The Group is continually in communicationwith its bankers in respect of the Group’s activities andperformance.

The maintenance, physical security and insurance ofits main assets, primarily the Millennium Stadium –the majority of the Group’s income is derived from thestaging of international matches at the MillenniumStadium and should the Millennium Stadium not beavailable to host matches the Group would have to seekalternative venues, which would likely incur significantcosts and may not have similar capacity. Loss of orrestricted access to the Group’s other assets, such as theNational Centre of Excellence (“NCE”), would also have aseverely detrimental impact on the Group. The trainingfacilities at the NCE are amongst the best in the world andNational Squad performance may suffer as a result of lossof access to these facilities. The Group takes extensivemeasures to safeguard its assets. The Group employs ateam of maintenance and facility management staff whoundertake a thorough preventative maintenanceprogramme at all of the Group’s facilities. The Groupprocures comprehensive insurance policies that, in theevent of damage to assets, provide recompense forrectification of damage and for loss of earnings due tobusiness interruption.

Wales in action




A year which will possibly be remembered more for theoff-the-field challenges concerning the WRU’s evolvingrelationship with the four Regions.

The new Rugby Services Agreement (“RSA”) was beingnegotiated through a dialogue which ranged over groundbreaking rugby protocols combined with improved fundingfrom the WRU. The discussions delivered a RSA which willserve to bolster the professional game in Wales at leastuntil 2020. It was inevitable that the negotiations wouldbe detailed and protracted.

Within this difficult environment a major boost for Welshrugby was achieved with the signing of Wales Head CoachWarren Gatland until 2019.

During the year the Wales Captain Sam Warburton wascontracted to the WRU in a ground breaking arrangementwhich was a precursor to the unveiling of National DualContracts in the RSA. This was seen as a move by the WRUto identify key players who should be encouraged toremain in Wales where their careers will be managed aspart of the RSA.

The overriding positive to emerge through the negotiationsfor the RSA is a contract between the WRU and theRegions which will guarantee a supportive funding formulain return for agreed rugby protocols. Those protocols willhelp the game at the top level evolve and develop whilefocusing on the identification, nurturing and retention ofthe very best international quality players here in Wales.

The RSA is a roadmap along which all the parties involvedwill in future have a clear direction in which to travel withthe shared aim of strengthening the professional game inWales. The RSA will see the Professional Regional GameBoard retained and guarantees a structure which willstabilise the elite game below international level througha timespan which includes the next two Rugby WorldCups.

There is no doubt that throughout the year the intensityof the public debate on a variety of media platformsbecame increasingly damaging to the WRU’s reputation.The WRU took the decision to avoid participating in thispublic dialogue to remain focused on the essential privacy


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Warren Gatland



of corporate negotiations. The WRU did however make itclear that it would set out to achieve the best possiblefinancial settlement within the RSA in return for agreedrugby deliverables which would benefit the professionalgame in Wales.

At the end of 2013 the Regions announced they wouldnot be extending the 2009 Participation Agreement to itsfull term, which meant the contractual arrangementbetween the WRU and the four Regions would cease atthe conclusion of YE14.

This unsettled period in late 2013 served as a prelude towider rugby discussions which resulted in significantchanges to the organisation of competitions involving thefour Regional teams. A new European club competitionwas introduced called the Rugby Champions Cup. Animportant and associated change was a reconfiguration ofqualification which will now be based primarily onperformances in the three premier European leaguecompetitions. This means strong end of season positionsin the Pro12 competition are now crucial for the fourRegions. During the year it was announced that Guinnesswill be the named sponsors of the Pro12 for the 2014/15season.

At international level throughout the year Wales remainedcompetitive, but the high expectations of recent years werenot rewarded with tournament titles.

There was disappointment at a Regional level with noWelsh team reaching the quarter finals of the last

Heineken Cup or achieving league success in theRaboDirect Pro12.

There were encouraging appointments within Welsh rugbyas individuals such as Byron Hayward, Paul John, JarredGriffiths and Ryan Harries all moved from being WRUemployees to important posts with various Regions. Thesecareer developments were seen as examples of the WRUcommitment to develop off-the-field talent as well asplayers.

Following his appointment the new Head of Rugby, JoshLewsey, conducted a far reaching review which will serveto bolster the elite and community games.

The result of his work was the announcement of a newstructure which is described more fully in the communitysection of this report, but will have a significant impact inthe long term on the elite game in Wales. The aim of hisstrategy is to increase participation and the capacity toidentify talent across the player development structurefrom grassroots upwards.

As in recent years there was a focus on infrastructure atthe top level and it is noted that the introduction of a newartificial pitch by Cardiff Blues provided a major boost tothe playing surface at Cardiff Arms Park.

An announcement was also made to offer a fixturebetween a WRU President’s Premiership XV againstGeorgia. This offer was announced in Georgia by thePresiding Officer of the National Assembly, DameRosemary Butler, during an official visit in June 2014.

Wales in action


The WRU continued to focus on sevens rugby throughoutthe year with the team taking a complete part in the IRBinternational circuit. The WRU also announced during theyear that it would bid to host the 2018 World Cup Sevensat the Millennium Stadium. A new coach was appointedfor the Wales sevens team. Gareth Williams was anexceptional candidate selected internally so he is anotherprime example of the WRU’s continued success withinternal staff development.

The inaugural Fosters Sevens competition involving thePremiership teams was a significant new initiative for theWRU during the year.

The Group Chief Executive of the WRU, Roger Lewis,remained as chair of the Womens’ Six Nations Committeeand the WRU played an active role in ensuring thenorthern hemisphere competition remains at the heart ofthe Womens’ game.

In a radical move the WRU agreed to present President’sCaps for the first time to players who had representedWales in uncapped encounters with IRB rugby nations.

The caps were awarded at a ceremony in the MillenniumStadium and an honours board was unveiled bearing thenames of all the recipients.

It is significant that the financial year entered 2014 withinwhich the start of World War 1 was being commemorated.The WRU entered a partnership with Barn Media and ITVCymru Wales to produce a documentary focusing on thelives of the 13 Welsh international rugby players who diedduring the war.

Significant milestones during the year included the 100caps achieved by the Cardiff Blues prop forward GethinJenkins.

There was also an accolade for Wales Head Coach WarrenGatland who was awarded an OBE in the Queen’s 2014Birthday Honours List for his services to rugby.

Towards the end of the year the Cardiff Blues and Walescentre Owen Williams suffered a significant injury duringa game and the rugby world has united in wishing himwell in his recovery.


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Ospreys v Dragons



Professional – International

The Dove Men Series 2013 kicked off the season for Waleswith Warren Gatland’s side claiming two victories in theirAutumn campaign. South Africa were the first visitors tothe Millennium Stadium in November and took theopening match 24-15. Wales bounced back to beatArgentina 40-6 and Tonga 17-7 on successive weekendsbefore a final game defeat to Australia 30-26.

The victory against Argentina marked Gethin Jenkins100th Wales Cap and the Cardiff Blues prop went on tobecome Wales’ most capped player of all time in Wales’final game of the 2014 RBS 6 Nations against Scotland agame in which he made his 105th appearance. Jenkinsconcluded the 2013/14 season on 107 caps.

Four players made their international debuts during theAutumn series. Cory Allen and Samson Lee made theirfirst appearances in the victory against Argentina with 19-year-old Hallam Amos and scrum-half Rhodri Williamsearning their first caps against Tonga.

Wales’ defence of their RBS 6 Nations title began with ahome victory against Italy with tries from Alex Cuthbertand Scott Williams helping them to a 23-15 success. Adisappointing 26-3 defeat then followed against Ireland atthe Aviva Stadium. The match was a first international testfor Scarlets’ second row Jake Ball. Friday night Six Nationsaction returned to the Millennium Stadium for Wales’ thirdmatch of the tournament as they hosted France. LeighHalfpenny scored 17 points with the boot to accompanytries from Sam Warburton and George North as Walesreturned to winning ways with a 27-6 victory. Wales’ tripto Twickenham ended in defeat with Halfpenny scoring allof his side’s 18 points in a 29-18 loss. The Six Nations finale

against Scotland ended with six tries to the hosts withJamie Roberts and George North both collecting a bracealongside tries from Liam Williams and Taulupe Faletau asWales ended the campaign with a dominant 51-3 victory.

Ahead of the summer tour to South Africa the first WalesSenior Trial in 14 years was held at a packed LibertyStadium in Swansea with more than 20,000 spectators

Gethin Jenkins runs out for his 100th cap

RBS 6 NATIONS CHAMPIONSHIP 2014

Pos Team Played Won Drawn Lost For Against Points

1 Ireland 5 4 0 1 132 49 8

2 England 5 4 0 1 138 65 8

3 Wales 5 3 0 2 122 79 6

4 France 5 3 0 2 101 100 6

5 Scotland 5 1 0 4 47 138 2

6 Italy 5 0 0 5 63 172 0


watching the Probables take on the Possibles. TheProbables ran out 55-7 victors on the night with the squadto tour South Africa announced post-game.

The tour began with a 34-12 victory over the EasternProvince Kings in Port Elizabeth with Dan Lydiate leadingthe side to success. The former World Champions claimedvictory in the first test in Durban 38-16, a match that sawdebuts for Gareth Davies and Matthew Morgan. Wales,led by tour captain Alun Wyn Jones, continued their huntfor a first victory on South African soil seven days later inNelspruit. Tries from Alex Cuthbert, Jamie Roberts and KenOwens set the visitors up as they dominated the encounterbut defeat was snatched away in the final minutes as theSpringboks claimed a 31-30 victory.

Results:

Dove Men Series 2013

Wales 15 – 24 South Africa

Wales 40 – 6 Argentina

Wales 17 – 7 Tonga

Wales 26 – 30 Australia

RBS 6 Nations 2014

Wales 23 – 15 Italy

Ireland 26 – 3 Wales

Wales 27 – 6 France

England 29 – 18 Wales

Wales 51 – 3 Scotland

South Africa tour 2014

Eastern Province Kings 12 – 34 Wales XV

South Africa 38 – 16 Wales

South Africa 31 – 30 Wales


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Probables v Possibles




The Regions

Heineken Cup and Amlin Challenge Cup

The Ospreys, Cardiff Blues and Scarlets represented Walesin the Heineken Cup.

The Blues secured a second place finish in Pool 2 andpulled of an impressive 19-15 victory over eventual Cupwinners Toulon at home in the Cardiff capital along theway, but their 14 point total wasn’t quite good enough topropel them into the knock-out stages of the competition.

The Scarlets had got their campaign off to a winning startwith victory over Harlequins and also had success on theroad against Racing Metro 92, but it would be Quins and

eventual Cup semi-finalists Clermont Auvergne whoqualified from Pool 4.

The Ospreys struggled in a tough pool which featuredLeinster, Castres and eventual Amlin Challenge Cupwinners Northampton and despite beating the Frenchoutfit at the Liberty Stadium they finished bottom of Pool 1.

Newport Gwent Dragons flew the flag for Wales in theAmlin Challenge Cup, but were up against finalists Bathin Pool 2. They eventually finished third in the pool withthe highlight of their campaign coming against Bordeaux-Begles who they beat 40-24 at Rodney Parade.


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Judgement Day



RaboDirect PRO12

The Ospreys (5th) were Wales’ highest placed side in theRaboDirect PRO12, but they were closely followed by boththe Scarlets (6th) and Cardiff Blues (7th). Newport GwentDragons finished ninth, meaning both the Blues and theDragons showed progress by improving on their respectiveplacings the year before.

The Ospreys narrowly missed out on a play-off spot,securing the same 66 points which put the Scarlets in theplay-offs a year earlier, by virtue of a final day victory overConnacht. But it was the men from Ulster who beat fellowIrishmen Munster in their final league outing to pip Wales’leading lights into fourth spot.

LV= Cup

The Ospreys finished second in Pool 3 of the Anglo-Welshcompetition, but it was Bath who remained unbeaten toreach the semi-finals.

The Blues finished third in Pool 2 behind eventual winnersExeter and Sale despite claiming 10 points over their fourmatches and notching up two wins.

The Scarlets also got two wins under their belts in Pool 4but they weren’t strong enough to surpass Northampton,who also remained unbeaten.

Newport Gwent Dragons claimed a famous victory overLondon Wasps, but it remained the only one of theircampaign and they finished at the bottom of Pool 1.

RaboDirect PRO12Pos Team Played Won Drawn Lost For Against Bonus Pts Points

1 Leinster 22 17 1 4 554 352 12 82

2 Glasgow 22 18 0 4 484 309 7 79

3 Munster 22 16 0 6 538 339 10 74

4 Ulster 22 15 0 7 470 319 10 70

5 Ospreys 22 13 1 8 571 388 12 66

6 Scarlets 22 11 1 10 435 438 9 55

7 Cardiff Blues 22 8 1 13 425 538 7 41

8 Edinburgh 22 7 0 15 397 526 10 38

9 Newport Gwent Dragons 22 7 1 14 392 492 5 35

10 Connacht 22 6 0 16 371 509 11 35

11 Treviso 22 5 1 16 376 591 8 30

12 Zebre 22 5 2 15 347 559 5 29

Cardiff Blues v Harlequins


Wales U20

It was a mixed bag of fortunes for Wales U20 during theseason, both during the U20 Six Nations, where theyfinished third and at the Junior World Championship inNew Zealand.

Byron Hayward’s young side produced impressiveperformances at their Colwyn Bay home base against Italyand Scotland, and away from home against Ireland wherethey showed gutsy determination to win 16-0 in terribleconditions. They lost 16-10 to eventual Grand Slamwinners France and suffered a heavy defeat to England atKingston Park.

The side, led by centre Steffan Hughes, headed to NewZealand to begin their Junior World Championship

campaign determined to draw on the experience of thesenior players who had reached the final a year earlier.

They began positively with a 48-19 win over Fiji, but a poorperformance and result against Ireland four days latervirtually prevented the side from progressing to the lastfour this time around. However, they bounced backstrongly and produced a 13-3 victory over Grand Slamchampions France in their last pool game. They facedFrance again in the fifth place semi-final and despiteanother strong display, lost by a point 18-19. A convincing20-3 victory over Samoa ensured they finished thetournament with a win and, despite finishing in seventhplace, there were positives in terms of player developmentand exposing players to the highest standard of worldrugby at this level.


Elite rugby review

Wales U20 action



Results

U20 Six Nations

Wales U20 26 - 9 Italy U20

Ireland U20 0 – 16 Wales U20

Wales U20 10 – 16 France U20

England U20 67 – 7 Wales U20

Wales U20 43 – 15 Scotland U20

U20 Junior World Championship

Wales U20 48 – 19 Fiji U20

Wales U20 21 – 35 Ireland U20

Wales U20 13 - 3 France U20

Semi Final


7/8th place play-off

Wales U20 20 – 3 Samoa U20

Wales U18

Wales U18 enjoyed a successful season, with improvedperformances at the international Under 18 tournamentin South Africa, beating France 47-8 and with narrow 15-17 and 13-14 defeats to England and South Africa. Theyalso beat Australia Schools 26-12 at the Gnoll in Novemberand went on to beat France again in March, losing toEngland in their other pre-FIRA-AER international.

At the FIRA-AER U18 tournament in Poland at Easter,Wales beat Scotland 23-21 in their opening game despite

a late surge from the Scots. They lost to England 9-11 inthe semi-finals but beat France for a third time in theseason by 31-30 to finish in third place.

Results

U18 International tournament South Africa


Wales U18 15 - 17 England U18

Wales U18 13 - 14 South Africa U18

November international

Wales U18 26 - 12 Australia Schools

March internationals

France U18 18 - 17 Wales U18


FIRA/AER U18 tournament

Wales U18 23 - 21 Scotland U18



Welsh Schools U16

Welsh Schools U16 fell just short of beating England intheir only capped match of the season with a 22-24 defeatat the Gnoll. Head coach Simon Jones fielded two teamsat the Wellington International Festival prior to the Test,each team playing three development games over eightdays against regional and international sides.

Wales U18 action


Sevens

The 2013/14 HSBC Sevens Series proved a disappointmentfor Wales. After a promising start to the campaign, Walesfinished in 11th place on the final points table.

Wales entered the series in confident mood, havingfinished the previous two seasons in seventh place buttheir campaign was disrupted constantly with injuries tokey players.

The season began well in October in the Gold CoastSevens where Paul John’s side reached the Plate semi-finalbefore bowing out 12-7 to Kenya. Two months later Walesreached the Plate final in Dubai but succumbed 21-5 toArgentina. Wales then had to wait another five rounds ofthe World Series before reaching another final.

In Hong Kong Wales, led by Sam Cross who finished thetournament as the second highest placed try-scorer withfive tries, took a 14-7 lead at the break against SouthAfrica. Midway through the second half, South Africa hitback to snatch a 19-14 victory.

Wales then completed the campaign with a Shield finalvictory over Japan 29-12 in the Emirates Airline Glasgow7s before finishing the series at Twickenham, losing toCanada 14-17 in the Bowl semi-final.

Wales’s management had to deal with injuries to keyplayers Lee Williams, Adam Thomas, Rhys Jones and AlexWebber in a demanding season. Paul John left his post ashead coach in December to join the Cardiff Blues coachingteam. As a result assistant coach Gareth Williams steppedup as interim head coach before being given the post fulltime with a couple of rounds remaining of the season.

James Davies finished the season with 22 tries as theleading try scorer for Wales with Luke Morgan closebehind on 21. Long-standing players James Davies andcaptain Adam Thomas left the Sevens at the end of thecampaign to begin regional careers with the Scarlets andCardiff Blues respectively.


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Wales Sevens action



IRB Sevens World Series

Australia

Wales 33 - 14 Portugal

Wales 14 - 19 Canada

Wales 22 - 19 Fiji

Wales 21 - 28 South Africa

Wales 7 - 12 Kenya

Dubai

Wales 38 - 0 Spain

Wales 31 - 19 Scotland

Wales 19 - 14 Australia

Wales 12 - 33 England

Wales 19 - 24 Kenya

Wales 5 - 21 Argentina

South Africa

Wales 26 - 10 USA


Wales 7 - 48 New Zealand


Wales 21 - 33 Australia

USA


Wales 17 - 21 Kenya


Wales 12 - 7 USA

Wales 12 – 40 Fiji

New Zealand




Wales 19 – 12 Tonga


Hong Kong

Wales 7 - 42 Fiji

Wales 10 - 7 Kenya

Wales 47 - 12 Sri Lanka




Scotland

Wales 24 - 19 Kenya


Wales 0 - 45 Fiji

Wales 7 - 21 France


Wales 29 - 12 Japan

England






Wales Sevens action


Womens

Wales Women found the 2014 Six Nations tough going,with only Scotland below them in the points table whenthe competition was wrapped up.

But it could so easily have been so different. In the openinggame of the campaign Wales somehow contrived to loseagainst Italy 11-12 at the Talbot Athletic Ground. Walescompletely dominated the first half where Italy managedto exit their own half only twice. But despite totaldomination Wales only led 8-0 at halftime.

In the second half Italy hit back to stage a late win. Walesthen travelled to Ashbourne and lost to Ireland 14-6 in anevenly contested affair. Two first half penalties by teenagerRobyn Wilkins gave Wales a 6-3 lead at the break but thehosts fought back to claim the win.

Wales were then given a lesson by the French who stormedto a 27-0 victory at Aberavon. Centre Shannon Izar andwinger Marion Lievre both raced over in the dying stagesto put a flattering gloss on the final score-line for thevictors but ultimately Wales were guilty of coughing up toomuch possession in the second half and poor tacklingdidn't aid their cause either.

Wales then suffered a heavy 35-3 defeat against Englandat the Stoop before recording their only victory of thecampaign against Scotland with a 25-0 win.

Wales head coach Rhys Edwards took the opportunity toblood a number of youngsters with teenagers Elli Norkettand Robyn Wilkins both stepping up to international level.Second row Jenny Hawkins and scrum half Laurie Harriesalso featured for the first time for Wales.

On the regional front, Cardiff Blues claimed the honoursat Llandarcy when any one of three teams entered the finalday of action with a chance of victory, but underdemanding conditions it was the Blues who ruled supreme.


Elite rugby review

2014 - Women’s Six Nations

Pos Team Played Won Drawn Lost PF PA Diff TF TA Points

1 France Women 5 5 0 0 162 21 141 25 2 10

2 England Women 5 4 0 1 145 31 114 23 3 8

3 Ireland Women 5 3 0 2 137 42 95 20 6 6

4 Italy Women 5 2 0 3 57 108 -51 8 16 4

5 Wales Women 5 1 0 4 45 88 -43 5 12 2

6 Scotland Women 5 0 0 5 5 261 -256 1 43 0

Cardiff Blues Women in action




Semi-Professional Game

Pontypridd won their third consecutive PrincipalityPremiership title – and completed an historic ‘double,double’ by also retaining the SWALEC Cup, although theywere bitterly disappointed to lose to Leinster on try countafter extra time in the British & Irish Cup semi-final.

The SWALEC Cup provided the first opportunity forsilverware at semi-professional level and Pontypridd andCross Keys had swept all before them to reach theMillennium Stadium SWALEC Finals Day. Ponty arrived onthe back of a 34-10 win over Newport, a huge 55-15quarter-final win over cup kings Llanelli, and a 32-3 victoryover Aberavon while the Keys had beaten Neath, Bedwasand Cardiff away from home before narrowly beatingLlandovery 29-27 in the semis.

The Cup final was won convincingly by Pontypridd in theend, with tries from prop James Howe and centre GavinDavey, Simon Humberstone adding 11 points from theboot. Cross Keys’ Nathan Trowbridge touched down and

Dorian Jones added a penalty but Ponty’s forward powerproved too good.

In the Principality Premiership, Paul John’s side ended thenormal league season in the top spot, with CarmarthenQuins in second place, earning themselves a home drawin the semi-final play-off against Cross Keys. Keys,however, were more powerful following theirdisappointment in the SWALEC Cup final and two triesfrom captain Leon Andrews enabled the Dragons side towin 31-20 and join Pontypridd in the PrincipalityPremiership Play-Off Final at Sardis Road.

Once again, Pontypridd showed why they have dominatedthe semi-professional game in recent years and completedan emotional season – which involved the departure to theBlues coaching team of Dale McIntosh and the suddendeath of stalwart prop Stuart Wililams – with a 38-17 win,Rhys Shellard, Lewis Williams, Dan Godfrey and JordanSienawski scoring tries and the ever reliable SimonHumberstone adding 18 points.


Elite rugby review

SWALEC Cup winners Pontypridd




SWALEC CUP

Quarter-finals

Aberavon 26 - 22 Carmarthen

Cardiff 10 - 25 Cross Keys

Ebbw Vale 13 - 16 Llandovery

Pontypridd 55 - 15 Llanelli

Semi-finals

Aberavon 3 - 32 Pontypridd

Cross Keys 29 - 27 Llandovery

Final

Pontypridd 21 - 8 Cross Keys

Principality Premiership play-offs

Principality Premiership play-off

Carmarthen 20 - 31 Cross Keys

Principality Premiership play-off final

Pontypridd 38 - 17 Cross Keys

British & Irish Cup 2012/14 Competition

Quarter Final

Cornish Pirates 14 - 16 Pontypridd

Leinster 47 - 15 Munster

Bristol 39 - 24 Rotherham Titans

Leeds Carnegie 41 - 21 Plymouth Albion

Semi-Final

Bristol 25 - 30 Leeds Carnegie

Pontypridd 22 - 22 Leinster

Final

Leinster 44 - 17 Leeds Carnegie


Elite rugby review

Principality Premiership winners Pontypridd




Regional Age Grade

The Blues claimed the Regional U18 title with a 55-15 winover the Dragons to end one of the most competitiveseasons in the competition’s history.

Just seven points separated all five teams in the groupstage, with the identity of the two finalist sides onlydecided after the final round of pool fixtures.

Ironically, the last group stage match was a precursor tothe final with the Dragons downing the previouslyunbeaten Blues 28-12 at Pandy Park, which saw themedge out the Scarlets and RGC 1404 and secure a place inthe final.

However, Blues outside half Jarrod Evans guided the Bluesto the title in a final which was moved and delayed due tothe inclement conditions, scoring four tries himself andconverting five of his side’s nine tries in all.

There was no final at Regional U16 level, with seven teamsplaying each other on a home or away basis.

WRU Wednesday U18 League

Coleg Sir Gar successfully defended the title, beating Colegy Cymoedd 25-22, in a rematch of last year’s final of thetournament, which is growing in stature and profile yearon year. Coleg y Cymoedd (previously Coleg Morgannwg)were the pre-match favourites, having lost only one gameall season but Coleg Sir Gar dug deep to come back fromtrailing 19-3 just before half time.


Elite rugby review

Regional Age Grade U16

Pos Team Played Won Drawn Lost PF PA Diff TF TA TB LB Points

1 Ospreys West 5 5 0 0 118 27 91 20 5 3 0 23

2 Scarlets 6 4 0 2 145 90 55 23 14 3 0 19

3 Blues North 6 4 0 2 125 101 24 21 17 2 0 18

4 Blues South 6 4 0 2 114 96 18 20 16 2 0 18

5 Dragons 6 2 0 4 105 135 -30 17 23 2 2 12

6 RGC 1404 5 1 0 4 94 152 -58 16 26 3 0 7

7 Ospreys East 6 0 0 6 60 160 -100 10 26 1 1 2

Regional Age Grade U18

Pos Team Played Won Drawn Lost PF PA Diff TF TA TB LB Points

1 Blues 5 4 0 1 132 61 71 19 8 2 0 18

2 Dragons 5 2 0 3 94 125 -31 11 19 1 1 10

3 Scarlets 4 2 0 2 62 57 5 8 6 0 1 9

4 RGC 1404 4 2 0 2 55 86 -31 8 11 1 0 9

5 Ospreys 4 1 0 3 43 57 -14 5 7 0 2 6

Blues North U16s in action




Charities

During the year the WRU achieved a milestone andannounced that charity bucket collections at Wales’ rugbyinternationals had raised £529,000 across some 102games since the Millennium Stadium opened.

Apart from Welsh based charities which have benefittedthere have also been specific appeals such as thePhilippines' crisis when £9,000 was raised at one match in2013 when Wales played Argentina.

During the year the senior Wales squad carried outpromotional activity in aid of a range of charities includingan anti-domestic violence police campaign and an anti-racism project under the banner “Kick It Out.”

The WRU also supported St John Wales and the WelshHearts charity which helped deliver defibrillators to clubsacross Wales.

The Welsh Rugby Charitable Trust (“WRCT”) which helpsseverely injured players remains the core charity of theWRU.

The President of the WRU, Dennis Gethin, chairs the WRCTand the Duke of Cambridge is the Royal Patron.

The WRU continues its membership of the Princes’Charities Forum which involves liaising closely with anumber of UK charities to work in partnership on eventsand projects.

Sports Wales

Sport Wales Chief Executive Sarah Powell has reflected onthe past year. She said:

“With more children, young people and adults taking partin sport regularly than ever before, there’s never been abetter time to be involved in Welsh sport.

From Holyhead and Haverfordwest to Chirk andChepstow, we want to get every child hooked on sport forlife. The WRU is an important partner in this bold andambitious vision. They share our goal of creating a radicalstep change towards a healthier, more active Wales.

Rugby’s work to create a thriving club network and aworkforce that is passionate, skilled, diverse and motivatedis essential. Using their skills to build a child’s ability,confidence and improve their health and well-beingthrough rugby. Working with us at eradicating sportinginequalities, to ensure that everyone has an opportunity toplay and enjoy the benefits of sport, helping them to reachtheir own personal podium. Through offering a wide rangeof experiences and versions of the game we can captureand nurture the talent of the future. Using the great historyRugby has in Wales and the current role models to inspirethe next generation.

Diversity at all levels of the game is essential and we areencouraged to see the WRU making its first steps towardsincreased diversity on its board and we look forward toseeing this develop further. The growing strength of ourrelationship with the WRU is a positive for sport in Walesand I look forward to further collaboration in the yearahead.”


Elite rugby review

Charity bucket collections





Community rugby review

The introduction of a radical new plan to revive the historiclinks between schools and club rugby across Wales was alandmark decision of the Board during the year. The ideanow being put in place is to use the strength of the WRUto focus on encouraging thousands of school children inWales to become better players.

Under the plan, Rugby Officers (“ROs”) partly funded bythe WRU are employed at schools to focus on reviving thegame through the system now called WRU School-ClubHubs. Their brief is to foster interest in rugby amongst boysand girls while forging close links with nearby clubs toencourage life-long habitual rugby participation as early aspossible.

To facilitate this activity a revamp of the schools leaguestructures was undertaken with a renewed emphasis onWednesday rugby to “clear the decks” for clubs activity atweekends. New leagues are planned to accompany thehighly successful U18 Wednesday League to ensure moreteenagers are able to play the game competitively atschools level and are actively transferred to club rugby.This strategy is aimed at enhancing participation levelswhich, in turn, will help bolster the elite game in Wales by

delivering more talent into the system and, thereby,underpinning the long term needs of both elite andcommunity rugby.

All schools in Wales were approached and given thepositive response, the WRU decided to help fund ROs atmore than forty schools initially. The idea for the refocuson schools rugby was championed by the new Head ofRugby, Josh Lewsey, after he started his tenure with a 100day review of the game in Wales.

He said it became clear that the revival of the schools gamewas fundamental to the continued success of rugby as thenational sport of Wales. His argument was that schoolspresent a captive audience of potential players who canthen be encouraged to develop their rugby skills and beencouraged to transfer to the club game to further theirinvolvement. His strategy recognised fundamentaleconomic and social challenges while offering an optimisticviewpoint based on the potential within the schoolssystem.

The underlying concept is to refocus on schools where theplayers of tomorrow are concentrated, encourageparticipation and involvement in club rugby and retain

Rugby Stars disability course



these new rugby followers as future players, volunteersand administrators for life. The integrated schools planrefocuses the role of the WRU Participation Officers whichconcentrated on initiatives broadly outside the classroomenvironment.

To enhance the community game further a raft ofinitiatives were carried out aimed at developing the playingand club structure.

Some 3,000 volunteers were trained during the year inWRU schemes focused on improving the skill set of clubs.

In a link up with the Welsh Hearts charity the WRUfacilitated the introduction of defibrillator machines toclubs along with the appropriate training from fully trainedmedical staff. The partnership with the charity aims tointroduce the kit at all clubs in Wales.

A project was also launched during the year under theleadership of the WRU National Medical Manager, PrabhatMatheema to introduce new protocols and guidance ondealing with concussion in the community game. Work onthe project was well advanced for introduction during thesummer of 2014.

There was a significant issue of disagreement during theyear over the introduction of a newly formatted SWALECNational League structure. The new structure wasannounced to clubs during the summer of 2013 after aworking party had formulated the new leagues based onrequests and feedback from clubs. In the 2012 ClubsCensus many clubs cited travel costs and travel times assignificant issues which needed to be addressed. But after

the working party reported back and the Board approvedthe changes, concerns were raised by a number of clubs.Further changes, were adopted and the President,Chairman and Group Chief Executive visited each WRUdistrict to get further feedback.

The issue remained contentious and became a significantfactor in the call for an Extraordinary General Meeting(“EGM”) of members in June 2014. At the EGM it wasagreed to host a club ballot to gain feedback which wouldserve to assist the Board deliberations on the issue. Thisachieved a majority in favour of the introduction of thenew structure for season 2014/15 which is beingmonitored by a working party and will be reviewed at theend of the season.

The year was also marked by increases in rugby focusedactivity across the range of WRU community initiatives.

The WRU National Player Identification and DevelopmentProgrammes proved successful across all the five Regions(including the North Wales Development Region) of Wales.

At U14 level 2,679 players took part in organiseddevelopment sessions which was an increase of 663 on thelast reported year and represented a 128% success aboveset targets.

At the U14 Pre Dewar Shield Development Programme1,398 players participated which was a 155% returnagainst the target for Year 3 of the National Project.

At U15 level 802 players represented their respectiveschools which was a 122% success rate on targets. TheU16 programme was also revamped during the year.

Gilfach Goch v Merthyr




In associated activity there was progress in the design of aNational Physical Literacy Framework in conjunction withSport Wales. The WRU also partnered Swansea Universityin the biggest and most comprehensive survey of its typein Europe to monitor player development within the agegrades.

The School of Rugby accreditation scheme increased toinclude 45 schools across Wales in a project whichrecognises their support for the game. Schools competitionfinals at U11/U14/U16/U18 were all held at the MillenniumStadium. The Welsh Exiles programme identified adatabase of more than 2,500 players aged between 15and 30. At the older teenage level the Welsh StudentsGroup again ran their successful Freshers’ League betweenOctober and December.

The U18 Wednesday league continued to flourish with theWRU partnership with S4C set to increase television andwebcast coverage in the season ahead.

The WRU Rugby Stars initiatives celebrated their thirdseason with courses and camps held for children agedfrom three to fourteen.

In the Little Stars Programme for three to seven year olds205 courses attracted 1,397 children with the Junior Starshosting 35 camps for 2,119 children aged between fiveand fourteen.

More than 100 children were selected throughout the yearto represent the WRU Rugby Stars activities at theMillennium Stadium and other key locations. In partnershipwith the Urdd Youth organisation, the WRU Rugby Starsinitiative was introduced to West Wales during the year.There was also an event involving 300 children who wereinvited to watch Wales train at the National Centre ofExcellence.

A significant project saw the introduction of the WRUDisability Rugby Stars Programme with five camps beingorganised for 355 youngsters aged between five andeighteen. WRU staff undertook training through DisabilitySport Wales.

Activities aimed at encouraging young people to take upsport were enhanced with a Wales Training Day hosted atthe Millennium Stadium where more than 13,000 adultsand children watched the free session hosted by WarrenGatland and his coaches.

Fishguard & Goodwick unveil all weather sand training pitch




Match Officials

A total of 567 people attended the Level 1 referees coursewith 31 advancing through the induction process to Level2 status.

The WRU appointed level 2 and 3 referees to more than8,000 community games which serves to emphasise theimportance of the match official to the success of ourgame.

During the season there were highlights for a number ofour referees. – Richard Deacy refereed the Welsh YouthCup final between Penallta and Gilfach Goch, WayneDavies refereed the Swalec Cup Final and the Plate andbowl finals were refereed by Martyn Lewis and John Hardyrespectively.

The format and profile of the Regional age grade andcollege programme provided excellent developmentopportunities for our younger referees from the academyand development squads.

Coach Development

Tag award courses proved popular with over 34 coursestaking place with 440 coaches attending which was anincrease of 60 on the previous year.

The Rugby Leaders initiative saw 400 secondary schoolpupils qualified to deliver coaching to their local primaryfeeder schools. This was the first year for this project.

Following a review of formal qualification formats, theneed for children’s coach courses with a different formatwas identified for those who coach youngsters aged from14 upwards. Fifteen new children’s Level One courses werehosted with 340 coaches attending. Nine Level Onecourses with 200 attendees also took place. Level Twoactivity is on the upward trend with eleven courses run thisyear with 210 coaches attending which is a rise of 5% onlast year’s figures.

During the year 26 coaches were qualified at Level Threethrough courses hosted at the WRU National Centre ofExcellence.



Pontyclun v Langstone Inter schools U11 final



The WRU undertook further Level Four courses; from thenine candidates three have managed to complete this year,Byron Hayward Scarlets, Jason Strange Ebbw Vale RFC andRichard Lancaster Swansea University and Swansea RFC.The remainder will complete the course during nextseason.

In April 2014, Mike Morgan was recruited as a CoachDevelopment Resource Manager, with immediate andpromising effect.

The WRU also supports the IRB Tier Two and threecountries with visits from WRU staff to run a variety ofcourses from Level One and sevens rugby. The countrieswe have supported this year are Ukraine, Serbia, Germany,Luxembourg and Spain.

During November 2013, the WRU organised an IRBNational coaching conference with delegates from Spain,Poland, Ukraine, Portugal, Czech Republic, Russia,Netherlands, Belgium and Germany. The coaches had theopportunity to watch Wales train and attend presentationsfrom Rob Howley Wales Assistant coach and Gethin WattsNational Academy Manager.

The WRU successfully engaged with women and girls andtheir involvement at club level and colleges throughout theyear. There was a significant increase in women and girlsseeking WRU qualifications. One hundred and twenty fourattended a tag award course. This consisted of femalecollege students and women who support tag sessions attheir club. This figure represents a rise of more than 400%.

The Level One up take-up improved with forty threewomen attending courses compared with just fifteen inthe same timescale last year. A course for our nationalteam players was held with nine players attending.

Women and Girls - Community

The league structure at community level remains a focusas the WRU aims to encourage more women to take partin rugby.

The Super Cup Final at Llandovery was the pinnacle of thecommunity year. Neath Athletic secured a 36-16 victoryover Pontyclun Falcons to secure the cup. Seven Sisters hadto withstand a second half fight back from Pencoed beforeprevailing 15-13 in the Plate Final. The Bowl Final providedan entertaining encounter with Maesteg Celtic staging aremarkable second half recovery to defeat Kidwelly. Thewinners overturned a 27 -5 half time deficit to eventuallywin by a 34-31 margin. Penybanc were always in controlof the Vase final, prevailing 33-5 against Haverfordwest.

Rugby Stars

Neath Athletic v Pontyclun Falcons


SWALEC National Leagues

Ebbw Vale ran away with the SWALEC Championship forthe second successive season and this time earnedpromotion into the Principality Premiership as a result. TheBlaenau Gwent club was presented with the trophy in earlyApril after a 50-7 win over Beddau guaranteed them thetitle with 21 wins of 21 matches to that point. They endedthe season with 122 points and just one defeat – away toNarberth on the last day of the season – and completed amemorable rise back to the Principality Premiership fouryears after being relegated. Cardiff Met finished in secondplace, closely followed by RGC 1404 in third and Pontypoolin fourth.

Merthyr and Glynneath were SWALEC League One Eastand West winners and have been promoted to theSWALEC Championship. Both clubs also progressed to theSWALEC Plate knock-out stages, Merthyr beatingGlynneath 66-10 at the semi-final stage and going on tolift the trophy with a 29-26 win over Rhiwbina at theMillennium Stadium SWALEC Finals Day.

Rhiwbina, for their own part, were crowned SWALEC TwoEast winners, while Maesteg Quins won the battle withSkewen to win SWALEC Two West. Risca, Cardiff HighSchool Old Boys, Ystalyfera and Gorseinon won Three East,Three South East, Three South West and Three Westrespectively, while in Division Four, Nantyglo, St Josephs,



Womens’ domestic season launch



Gowerton and Cwmgors enjoyed victorious campaigns,while two clubs from Division Four South East contestedthe SWALEC Bowl final at the Millennium Stadium, ClwbRygbi Cymry Caerdydd seeing off Llantwit Major.

Llanhilleth fought off local rivals RTB Ebbw Vale for the FiveEast title, Treherbert won Five South Central, St Albanslifted Five South East and New Dock Stars finished top inFive West. Tredegar Ironsides and Hartridge won everygame to clinch Six East and Six South East respectivelywhile Cefn Forest won Six Central and Burry Port won SixWest.

In North Wales, Bala finished as the top club, winningSWALEC One North by two points, while Llandudno lostjust one match – 15-6 away to second placed Mold – towin Two North, and Harlech won Three North by virtue oftheir superior attacking qualities over second placed MenaiBridge.

Divisional Champions

Championship Ebbw Vale

One East Merthyr

One West Glynneath

Two East Rhiwbina

Two West Maesteg Harlequins

Three East Risca

Three West Gorseinon

Three South East Cardiff HSOB

Three South West Ystalyfera

Four East Nantyglo

Four West Gowerton

Four South East St Joseph’s

Four South West Cwmgors

Five East Llanhilleth

Five West New Dock Stars

Five South East St Albans

Five South West Ystradgynlais

Five South Central Treherbert

Six East Tredegar Ironsides

Six South East Hartridge

Six West Burry Port

Six Central Cefn Fforest

One North Bala

Two North Llandudno

SWALEC Plate

Quarter-Finals

Glynneath 19 - 13 Maesteg Harlequins

Llangennech 21 - 31 Llantwit Fardre

Merthyr 0 - 0 Amman United (Merthyr W/O)

Rhiwbina 36 - 19 Nant Conwy

Semi-finals

Glynneath 10 - 66 Merthyr

Llantwit Fardre 6 - 16 Rhiwbina

Final

Merthyr 29 - 26 Rhiwbina

Ebbw Vale SWALEC Championship winners


SWALEC Bowl

Quarter-finals

Clwb Rygbi Cymry Caerdydd 35 – 18 Nantymoel

Hartridge 15 – 30 Old Illtydians

Llandudno 24 – 10 Ystradgynlais

Llantwit Major 30 - 21 Pyle

Semi-finals

Llandudno 0 – 20 Clwb Rygbi Cymry Caerdydd

Llantwit Major 18 – 15 Old Illtydians

Final

Llantwit Major 10 - 16 Clwb Rygbi Cymry Caerdydd

WRU Youth Cup

Penallta Youth celebrated a Welsh Youth Cup victory overGilfach Goch at the Millennium Stadium with a 27-18victory. Jack Condy, captain of a very skilful Penallta Youthteam, was presented with the WRU Youth Cup by Wales’internationals Andrew Coombs and Alex Cuthbert, as histeam became custodians of the trophy for the first time.Before a sizeable crowd that offered raucous vocal supportfor both teams, Penallta Youth won a very physical battleagainst a well-coached and very determined Gilfach Gochteam.



SWALEC Plate winners Merthyr



Club Operations and Support

The support provided to clubs continued to grow via theClub Operations team. The continuation of the Join theBeat scheme involved 122 events with marketingmaterials, club flags and gazebos providing visibility for theclubs involved.

The WRU Club Websites scheme had overwhelmingsuccess with 183 clubs taking up the offer. This providessignificant assistance to the participating clubs with linksdirectly to the club audit, commission on sales from the

WRU shop, the provision of club advertising space andintegrated social media amongst the benefits.

The club development grant information continued to becollated online via myWRU with 100% of clubs submittingstatistics. The audit continued to evolve to best supportthose clubs making the greatest contribution to thedevelopment of grassroots rugby and with the link to thenew WRU Club Websites will be significantly easier forclubs going forward.

The regulation introduced in 2012/13 regarding non-payment of players continues to grow. 224 clubs have nowsubmitted their constitutions stating that they will not payplayers. 2014/15 will see the investigation of clubspurporting to be paying players continue and clubs andindividuals are urged to report transgressions.

Clubs have also made use of the Cardiff University ProBono legal service and have tackled issues such asemployment law, constitutions, incorporation andinsurance.

New for 2014/15 is the Welsh Rugby Club OperationsManual. Sent to clubs alongside the pre-season pack, themanual provides clubs with all the information they shouldrequire for the coming season, from league rules andregulations, rugby development, anti-doping, insurance,safeguarding, funding and volunteering information.Hopefully this will be a useful reference tool to assist ourclubs in their day to day operations.

The WRU continue to strive towards breaking down thebarriers between Junior and Senior sections of memberclubs.

Clwb Rygbi Cymry Caerdydd win the SWALEC Bowl

Penallta win WRU Youth Cup


Funding and Sustainability

The Club Operations Team continued to advise andsupport Clubs to maximise both local and national fundingsources, improve financial sustainability and directlyaddress identified issues, needs and opportunities.

Developments in the forthcoming season will include thedelivery of local funding workshops providing advice andsupport to Clubs on project proposals, grant applicationprocedures and funding opportunities

The implementation of the 3G Artificial Pitch CollaborationProgramme in conjunction with Hockey Wales, FAW Trustand Sport Wales will also take place in 2014.

During the year, the WRU received funding support froma range of partners, including StreetGames, PoliceCommunity Safety Partnerships and Network Rail to rollout Street Rugby/Cage Rugby across communities inWales. The sessions have been run in car parks and public

games areas and to date over 7,000 young people fromacross Wales have taken part in the activity.

The WRU was awarded funding from the InternationalRugby Board (IRB) via the Women’s Rugby World Cup(“WRWC”) Impact Programme. This funding was providedto increase the number of women and girls involved withrugby in the run up to the WRWC. As part of this initiative,focus groups with girls aged from 14 years were held toget their input into the development of the project. TheWRU ran five ‘transition’ events around Wales entitled#TRYOURGAME to give women and girls the opportunityto try rugby for the first time.

Next year the WRU will continue to align its strategies withSport Wales working towards the 2014-2019 fundingapplication. The WRU will also continue to work alongsideWelsh Government and other partners, such as WoodenSpoon to develop an apprenticeship programme tosupport the development of community rugby.



Burry Port Rugby Festival



Volunteer Support and Recruitment

During the year, the Club Operations Team increasedengagement with our volunteer workforce significantly.

Over 3,000 volunteers undertook training provided by theWRU, both direct one to one training (1,059) andthroughout training events (2,071).

Keen to establish this direct engagement and support, theClub Operations Team continued to champion investmentinto volunteer training targeting emergency aid trainingand other priorities on the community medical pathway.Emergency aid was not the only focus. Food hygiene andgroundsmanship featured regularly in the fundingapplications received demonstrating the breadth ofvolunteering in rugby.

This season saw the introduction of the NatwestRugbyforce ‘Creating a Sustainable Club’ workshop. 18workshops were held across Wales giving volunteers theopportunity to share good practice, to learn lessons fromeach other and to gain further knowledge on how todevelop their clubs. 92 clubs attended over the course ofthe season. Moving forward, the Natwest Rugbyforceworkshop system has been developed to include a

bespoke financial and club management workshop as wellas a financial mentoring programme.

Safeguarding

One of the key priorities for the Club Operations Team hasbeen to design and develop a safeguarding training planand deliver this to ensure that all Club SafeguardingOfficers (“CSOs”) have the necessary skills and support tocreate a safe and positive environment for the nextgeneration of players and volunteers. 46 club trainingevents have been delivered over the 2013/14 season.

To build on this positive engagement and ensure that thevolunteer workforce have continual professionaldevelopment, this has been supplemented by 9 furthernationally led events, where 130 CSOs have receivedfurther training in partnership with Sports Coach UK,through the Safeguarding and Protecting Children Course.

Key aims and objectives over the coming season are toensure that every rugby club in Wales has a CSO and todeliver further training opportunities for CSOs, coachingstaff and club volunteers through an online trainingpackage and face to face training.

First aid training at Pentyrch RFC


The Impact of the Stadium

A new independent survey into the economic impact ofthe Millennium Stadium revealed that it generates morethan £130m a year for the city and nation and sustainsmore than 2,500 permanent jobs. The report carried outby Econactive Ltd for the Welsh Rugby Union Groupconcluded that the financial benefits delivered by eventsat the Stadium are highly significant within the context ofWelsh tourism. It found that, on average, more than770,000 paying visitors attended the main events such asinternational rugby and rock music concerts each year. Thereport also revealed that some 70% of the visitor spend isnon-local in origin which represents a significant additionalimpact on the Welsh economy. The survey was the secondreport of its kind and clearly showed that the economicimpact of the Stadium is very substantial to Wales and isincreasing over time.

This year, close to 60,000 people also took guided toursof the Stadium. This represented a 10% increase in footfallfor the guided tours on the previous year. These tours offera unique insight into the history and infrastructure of theStadium with guests visiting areas such as the team

changing rooms to learn about how match days arestructured. The success of these tours contributed to thestadium receiving the Tripadvisor Certificate of Excellence2014 which signified that it consistently earnedoutstanding feedback from visitors.

New Projects & Improvements

During the year, the Stadium celebrated its fifteenthanniversary and significant changes and improvementseither took place or were announced which representedmajor investment in the Stadium infrastructure.

Undoubtedly one of the most significant announcementsduring the year was the plan to install a new Desso pitchsystem. The pitch surface is part grass and part synthetic,is used by most premiership football clubs and representsa step change in the playing surface at the Stadium. Thenew Desso pitch will replace the original pallet systemwhich involved laying concrete plinths and pallets of soiland root zone, on which a final turf layer was added. Thisnew pitch project will also see the latest ‘plug and play’broadcast technology introduced to the Stadium. This is avast improvement for all of the Stadium’s media andbroadcast partners and bodes well for the future. The final


Stadium review

Toulon win Heineken Cup Final



piece of the new pitch project will see the procurement ofa Terraplas pitch covering system. This durable covering ofplastic tiles will allow the full range of concerts and otherevents to take place on the pitch throughout the year. Thenew permanent pitch system will herald a vastimprovement in pitch quality and also ensures thatinternational and club football tournaments will be able totake place at the Stadium in future.

The players’ changing rooms at the venue are also amonga list of areas that have been agreed for upgrading andmodernisation. In respect of player welfare standards, itwas also agreed during the year that a new state-of-the-art medical centre will be installed within the Stadiumwhere player injuries can be assessed and treatedimmediately.

In a project more visible to fans and television audiences,a new LED ribbon board for advertising and crowdengagement was installed on the middle tier balcony area.This project saw the Stadium develop its relationship withSportseen who have become the Stadium’s officialadvertising partner. This new LED asset will maximise thecommercial and engagement impact during all games andother major events hosted at the Stadium.

Stadium Events

During the year, the Stadium staged the last ever HeinekenCup Final before the new Rugby Champions Cup isintroduced from next season. It was the seventh HeinekenCup Final to be held in Cardiff and the fifth to take place

at the Millennium Stadium since it opened in 1999. It wasquite fitting that Cardiff hosted the first and last HeinekenCup Finals. The Stadium also played host to the openingceremony of the Rugby League World Cup with twogames including England versus Australia and Wales versusItaly. Domestic rugby from Wales was celebrated at theStadium during the year with now familiar fixtures such asthe SWALEC Finals Day, Judgement Day and the hostingof the annual Varsity Match between Swansea and CardiffUniversities.

The range of non-rugby related activity held in the stadiumwas ably demonstrated with Bruce Springsteen returningto the venue in July 2013 with his Wrecking Ball Tour. Onenew venture during the year was the hosting of the W-Ales Beer Festival; this was the first time the festival, whichcelebrates real ales brewed in Wales, was held at theStadium and proved a great success. These activities werecomplimented with a full schedule of community eventswhich saw the Stadium host charities and localorganisations at various smaller-scale events during theyear. Again, this demonstrates how the Stadium isadaptable for a variety of event needs within the capitalcity of Wales.

Events at the Stadium have contributed more than half amillion pounds to charitable causes generated from bucketcollections at the venue. Over £529,000 has been donatedto charity from Welsh rugby matches alone since theStadium first opened in 1999.

Cleaning the Stadium masts


During the year, a number of promotional events werehosted at the Stadium to promote the countdown to theRugby World Cup 2015, for which eight fixtures includingtwo quarter finals will be held at the Stadium. Part of thisactivity focused on seeking volunteers to help behind-the-scenes during the tournament and also to highlight howmembership of a local rugby club will be beneficial forthose seeking to secure tickets for games.

Sustainable Development

The venue continues to lead the way on sustainability andis the first UK Stadium to reach the recertification point forISO 2012 (Sustainable Events Management). An important

new initiative is the ‘well water recovery system’ that isnow being used in the Stadium. In an effort to furtherreduce the carbon footprint of the Stadium, well waterfrom a bore hole in the ground is gathered and, inconjunction with the rain water capture system, is used towater the pitch and clean the venue.

New Management

There was also a change of senior personnel, with Lt ColMark Williams, formerly of the 2nd Battalion, The RoyalWelsh, taking over as Stadium Manager.


Stadium review

W-Ales Beer Festival




The Directors present their report and the Group andCompany’s audited financial statements for the year ended30 June 2014.

Principal activities and review of the business

The principal activity of the Group is to promote, foster,encourage, control and improve rugby football throughoutWales. This activity and the likely future development ofthe Group are reviewed in the Chairman’s Statement, theGroup Chief Executive’s Summary and the StrategicReport.

Results for the year

The results for the year are set out in the consolidatedprofit and loss account on page 72 and show a profit onordinary activities before taxation of £2.4m (2013: £2.3m).

Financial risk factors

The Group is exposed to financial risks from interestbearing assets and liabilities and interests in overseascompanies. These expose the Group to financial risksincluding foreign currency risk, interest rate risk, credit riskand liquidity risk.

• Foreign exchange riskWhere applicable, the Group mitigates foreign

exchange risk with the use of forward contracts. Asat 30 June 2014, the Group has no material foreignexchange risk (2013: £nil).

• Interest rate riskThe Group has interest bearing liabilities. As shownin Note 14, the Group’s policy is to part hedgeagainst any interest risk on liabilities by usingderivative instruments to effectively hedge theinterest rate risk. The Group has interest bearingassets which are invested at differing interest rates;these interest rates are fixed at the outset of theinvestment.

• Credit riskThe Group has no significant concentration of creditrisk. The Group has implemented policies that requireappropriate credit checks on potential creditcustomers before sales commence. Interest bearingassets are only invested with financial institutions thathave excellent credit ratings.

• Liquidity riskThe Group maintains a balance between continuityof funding and flexibility. As at 30 June 2014, only24% (2013: 30%) of the borrowings were due toexpire within five years.


Directors’ reportfor the year ended 30 June 2014

Gareth Williams, Company Secretary

President’s Cap presentation



Fixed assets

The Millennium Stadium, recorded at a carrying value inthe financial statements of £86m (2013: £90m), is aunique asset. The asset is recorded at historical cost lessdepreciation and due to the unique nature of the asset analternative use valuation is not considered appropriate. Ifthe Millennium Stadium was valued at replacement costthe carrying value recorded in the financial statementswould be c.£200m.

Directors

The Directors who held office during the year and up tothe date of signing the financial statements are listed onpage 95.

The Group’s primary charitable donation was £78,000(2013: £57,000) to the Welsh Rugby Charitable Trust. Thistrust, which is independent from the Group, was set up toprovide support to players who were injured whilst playingrugby in Wales. There were no political donations (2013:£nil).

Policy on payment to creditors

The Group and Company’s policy, concerning the paymentof the majority of its trade creditors, is to:

• set the terms of payment with those suppliers whenagreeing the terms of each transaction;

• ensure that those suppliers are made aware of the termsof payment by inclusion of the relevant terms incontracts; and

• pay in accordance with its contractual and other legalobligations.

Corporate social responsibility

The Group recognises its responsibility to the communitieswhich are affected by its businesses and regularly reviewsits policies with regard to social, ethical and environmentalmatters. Any matters in any of these categories which maymaterially affect the business of the Group are reviewedas required by the Board.

WRU Safeguarding seminar


Going concern

The Directors have reviewed the financial position of theGroup for a period of two years from the year end againstthe expected recurring operational income, expenditureand interest costs in conjunction with the Group’s bankingcovenants. On this basis the Directors consider that theGroup has more than sufficient resources to continue inoperational existence for the foreseeable future. For thisreason the Directors continue to adopt the going concernbasis in preparing the Group’s financial statements.

Statement of Directors’ responsibilities

The Directors are responsible for preparing the AnnualReport and the financial statements in accordance withapplicable law and regulations.

Company law requires the Directors to prepare financialstatements for each financial year. Under that law theDirectors have prepared the Group and Company financialstatements in accordance with United Kingdom Generally

Accepted Accounting Practice (UK Accounting Standardsand applicable law). Under company law, the Directorsmust not approve the financial statements unless they aresatisfied that they give a true and fair view of the state ofaffairs of the Group and the Company and of the profit orloss of the Group for that year. In preparing these financialstatements, the Directors are required to:

• select suitable accounting policies and then apply themconsistently;

• make judgements and accounting estimates that arereasonable and prudent;

• state whether applicable UK Accounting Standards havebeen followed, subject to any material departuresdisclosed and explained in the financial statements; and

• prepare the financial statements on the going concernbasis unless it is inappropriate to presume that theCompany and the Group will continue in business.


Directors’ reportfor the year ended 30 June 2014

Llandudno win 2 North



The Directors are responsible for keeping adequateaccounting records that are sufficient to show and explainthe Company’s transactions and disclose with reasonableaccuracy at any time the financial position of the Companyand the Group and enable them to ensure that thefinancial statements comply with the Companies Act 2006.They are also responsible for safeguarding the assets of theCompany and the Group and for taking reasonable stepsfor the prevention and detection of fraud and otherirregularities.

The Directors are responsible for the maintenance andintegrity of the Company’s website. Legislation in theUnited Kingdom governing the preparation anddissemination of financial statements may differ fromlegislation in other jurisdictions.

Disclosure of information to auditors

So far as the Directors are aware, there is no relevant auditinformation of which the Company’s auditors are unawareand the Directors have taken all the steps necessary to

make themselves aware of any relevant audit informationand to convey that information to the Company’s auditors.

Independent auditors

PricewaterhouseCoopers LLP have indicated theirwillingness to continue in office and a resolution toreappoint them will be proposed at the forthcomingAnnual General Meeting.

By Order of the Board

Gareth WilliamsCompany Secretary

Street Stars in Blaenavon



Consolidated profit and loss accountfor the year ended 30 June 2014

Pre- Exceptional Total Totalexceptional

Note 2014 2014 2014 2013£’000 £’000 £’000 £’000

Turnover 2 (a) 58,493 - 58,493 60,962

Administrative expenses 2 (b) (56,826) 1,628 (55,198) (57,133)

Operating profit before depreciation,exceptional items and allocations to affiliated organisations (“EBITDA”) 27,300 - 27,300 29,018Allocations to affiliated organisations 2 (d) (22,471) - (22,471) (22,063)Exceptional items 4 - 1,822 1,822 -Depreciation (net of grant release) 4 (3,162) (194) (3,356) (3,126)

Operating profit 3,295 3,829

Interest payable and similar charges 3 (1,190) (1,712)Interest receivable and similar income 3 20 15Fair value gains on derivative financial instruments 3 257 201

Profit on ordinary activities before tax 4 2,382 2,333

Tax on profit on ordinary activities 6 (552) 3,270

Profit for the financial year 18 1,830 5,603

There is no material difference between the profit on ordinary activities before tax and the profit for the financial year stated above andtheir historical cost equivalents.

The turnover and operating profit shown above are derived from continuing operations.

The Group has no other recognised gains or losses in the year (2013: £nil) and accordingly a statement of total recognised gains andlosses has not been presented.



2014 2013 2014 2013Group Group Company Company

Note £’000 £’000 £’000 £’000

Fixed assetsTangible assets 8 127,256 132,010 38,346 38,357Investments 9 - - 60 60

127,256 132,010 38,406 38,417Current assetsStock 10 352 188 - -Deferred tax asset 16 - - 150 199Financial assets- Debtors 11 8,060 6,071 78,554 77,416- Cash at bank and in hand 12 79 791 - 90

8,491 7,050 78,704 77,705Current liabilitiesCreditors – amounts falling due within one year 13 (28,758) (28,698) (23,563) (22,977)

Net current (liabilities)/assets (20,267) (21,648) 55,141 54,728

Total assets less current liabilities 106,989 110,362 93,547 93,145

Creditors – amounts falling due 13 (54,954) (58,100) (54,954) (58,100)after more than one year

Accruals and deferred income 15 (37,459) (39,307) - -

Deferred tax liability 16 (1,459) (1,668) - -

Net assets 13,117 11,287 38,593 35,045

Capital and reservesOther reserves 18 2,314 2,314 2,610 2,610Profit and loss account 18 10,803 8,973 35,983 32,435

Capital employed 13,117 11,287 38,593 35,045

These financial statements were approved by the Board of Directors on 19 September 2014 and signed on its behalf by:

David Pickering Roger LewisChairman Group Chief Executive Officer

The notes on pages 75 to 92 form an integral part of these financial statements.

The Welsh Rugby Union LimitedCompany Number 3419514

Balance sheetsas at 30 June 2014


2014 2014 2013 2013Note £’000 £’000 £’000 £’000

Net cash inflow from operating activities 22 7,931 3,650

Returns on investments and servicing of financeInterest received 20 15Interest paid (1,177) (1,799)

Net cash outflow from returns on investments (1,157) (1,784)and servicing of finance

Taxation (1,699) (1,743)

Capital expenditure and financial investmentPurchase of tangible fixed assets (350) (724)Grant repaid (100) (100)

Net cash outflow for capital expenditure and (450) (824)financial investment

FinancingDrawdown of bank loans 5,000 7,500Repayment of bank loans (10,308) (6,825)Debentures redeemed (29) (14)

Net cash (outflow)/inflow in respect of financing (5,337) 661

Decrease in net cash in the year 23 (712) (40)

The notes on pages 75 to 92 form an integral part of these financial statements.


Consolidated cash flow statementfor the year ended 30 June 2014



1. Accounting policies

The Group’s financial statements are prepared on the goingconcern basis, under the historical cost convention, excludingadjustments to historical cost attributable to fair valuemovements, in accordance with the Companies Act 2006 andapplicable accounting standards in the United Kingdom. TheGroup’s accounting policies, which have been appliedconsistently, are as set out below.

a. Basis of consolidation

The consolidated financial statements incorporate the financialstatements of The Welsh Rugby Union Limited and itssubsidiaries, Millennium Stadium plc, WRU Supporters ClubLimited, WRU National Centre of Excellence Limited andMillennium Stadium Experience Limited, all of which are madeup to 30 June 2014 and prepared using consistent accountingpolicies. All intergroup transactions are eliminated onconsolidation.

b. Turnover

Turnover represents amounts invoiced, excluding value added tax,in respect of the sale of goods and services. Ticket income, saleof hospitality packages, competition income and other eventincome are recognised as revenue when the related event isstaged. Revenue determined by commercial contracts, whichmakes up the majority of broadcasting revenue, sponsorship androyalty revenue and lease of hospitality boxes is recognised basedon the relevant contractual terms. Where consideration isreceived in kind, income and expenditure are grossed up on thebasis of arms’ length commercial rates.

c. Exceptional items

In order to improve the understanding of the financialstatements, the Directors have identified separately, on the faceof the profit and loss account, those items of income and chargewhich by their size, nature and/or incidence are exceptional tothe financial statements for the year. These are shown asexceptional within the categories of expenditure to which theyrelate.

d. Tangible fixed assets

Tangible fixed assets are stated at historic cost less accumulateddepreciation. Cost includes the original purchase price of theasset and the costs attributable to bringing the asset to itsworking condition for its intended use.

The tangible fixed assets of the Group, excluding land, aredepreciated on a straight line basis calculated to write down theircost to estimated residual values over their estimated usefuleconomic lives as follows:

Stadium Up to 50 yearsOther buildings Up to 50 yearsCentre of Excellence Up to 10 yearsOther Fixed assets Up to 10 years

Leasehold buildings are depreciated over the lower of 50 yearsand the remaining life of the lease.

e. Investments in subsidiaries

Investments in subsidiaries are included at cost less any provisionfor impairment.

In accordance with the Companies Act 2006, the Group hastaken advantage of the exemption afforded to certain subsidiarycompanies to be audited. The Welsh Rugby Union Limited hasgiven a guarantee to its subsidiary WRU Supporters Club Limitedunder section 479A of the Companies Act 2006.

f. Trade investments

Trade investments are valued at cost less any provision forimpairment.

g. Leased assets

Where the Group enters into a lease which entails takingsubstantially all the risks and rewards of an asset, the lease istreated as a “hire purchase arrangement”. The present value ofthe minimum lease payments is recorded in the balance sheet asa tangible fixed asset. Future instalments under such leases, netof finance charges, are included within creditors. Rentals payableare apportioned between the finance element, which is chargedto the profit and loss account, and the capital element whichreduces the outstanding hire purchase liability.

All other leases are accounted for as “operating leases” and theirrentals are charged to the profit and loss account on a straightline basis over the life of the lease.

h. Stock

Stock is valued at the lower of cost and net realisable value andconsists of finished goods purchased for resale. Where necessary,provision is made for obsolete, slow moving and defective stock.Cost is determined on a first in first out basis.

i. Current and deferred tax

The tax expense comprises current and deferred tax. The currenttax charge is calculated on the basis of tax laws enacted orsubstantively enacted at the Balance Sheet date.

Deferred tax is recognised in respect of all timing differences thathave originated but not reversed at the Balance Sheet date,where transactions or events that result in an obligation to paymore tax in the future or a right to pay less tax in the future haveoccurred at the Balance Sheet date.

A net deferred tax asset is recognised as recoverable andtherefore recognised only when, on the basis of all availableevidence, it can be regarded as more likely than not that therewill be suitable taxable profits against which to recover carriedforward tax losses and from which the reversal of underlyingtiming differences can be deducted.

Notes to the financial statementsfor the year ended 30 June 2014


Deferred tax is measured at the average tax rates that areexpected to apply in the periods in which the timing differencesare expected to reverse, based on tax rates and laws that havebeen enacted or substantively enacted by the Balance Sheet date.Deferred tax is measured on a non-discounted basis.

j. Pension costs

The Group operates defined contribution schemes.

The pension costs in respect of the defined contribution pensionschemes comprise contributions payable in respect of the year.

k. Grants

Grants receivable in respect of tangible fixed assets are creditedto the profit and loss account over the expected useful economiclives of the relevant assets to which they relate. Grants receivedbut not yet released to the profit and loss account are includedas deferred income in the balance sheet. Revenue grants arereleased to the profit and loss account in the same year as therelated expense.

l. Capitalisation of interest

Interest is capitalised on major development projects and capitalworks in progress where appropriate. Capitalisation ceases whensubstantially all the activities necessary to get the asset ready foruse are completed. Capitalised interest is amortised to the profitand loss account over the useful economic life of the asset towhich it relates.

m. Financial instruments

The derivative instruments utilised by the Group are interest rateswaps and foreign currency forward contracts. Derivatives areinitially accounted for and measured at fair value on the date aderivative contract is entered into and subsequently measured atfair value based on market price data from relevantcounterparties. The gain or loss on re-measurement is taken tothe profit and loss account except where the derivative is adesignated cash flow hedging instrument. Whilst the Directorsare of the belief that these derivatives are commercially effectivehedges, the Group has elected not to apply hedge accounting.The instruments are carried at fair value with changes in fair valuebeing recognised immediately in the profit and loss account.

Debenture loans are initially recognised at their fair value oninception and are subsequently measured at amortised cost asthey have been categorised as other financial instruments inaccordance with FRS26.

Debenture loans are considered compound financial instrumentsand, in accordance with FRS26, are bifurcated into the underlyingfinancial instrument and a premium for the right to purchasetickets over the life of the debenture. The fair value on inceptionof the underlying financial instrument is estimated as the presentvalue of all future cash flows, discounted using the prevailingmarket rates of interest for similar instruments issued by other

rugby union governing bodies. The market rate of interest forsimilar instruments is 0%, giving a fair value of the underlyingfinancial instrument that is the same as the debenture bookvalue. The residual asset value of the premium for the right topurchase tickets is therefore £nil.

n. Trade debtors

Trade debtors are recognised initially at fair value andsubsequently measured at amortised cost less provision forimpairment. They are first assessed individually for impairment,or collectively where the debtors are not individually significant.Where there is no objective evidence of impairment for anindividual debtor, it is included in a group of debtors with similarcredit risk characteristics and these are assessed collectively forimpairment based on their ageing. Movements in the provisionfor impairment are recorded in the profit and loss account.

o. Trade creditors

Trade creditors are obligations to pay for goods or services thathave been acquired in the ordinary course of business fromsuppliers. They are initially recognised at fair value andsubsequently measured at amortised cost.

p. Cash at bank and in hand

Cash at bank and in hand includes highly liquid investments thatare readily convertible into known amounts of cash and whichare subject to an insignificant risk of change in value.

q. Recognition of constructive liabilities

Where an event occurs that creates a constructive or legalobligation on the Group and it is probable that an outflow ofresources, which can be reliably estimated, will be required tosettle the obligation a liability is recognised in full in the periodwhen the event occurred.

Constructive liabilities are measured at the present value ofexpenditures expected to be required to settle the obligation. Incertain circumstances the transfer of cash to settle the liabilitymay occur in subsequent periods.





2. Segmental information

As set out in the Directors’ report, the Group has only one business segment and all income is derived from activities within the UK.The information below is provided as additional information.

Business analysis

(a) Turnover

2014 2013Turnover is analysed as follows: £’000 £’000

Match income 32,438 32,106Competition income 8,861 9,123Commercial income 13,991 13,140Other event income 1,468 3,476Other income 1,735 3,117

58,493 60,962

Other event income represents amounts receivable in respect of staging fees and other similar income arising within the MillenniumStadium for events which are not promoted by the Company. In 2014, other income includes £0.4m (2013: £0.4m) of grants receivedfrom Sport Wales, matched by expenditure included in community rugby costs, and in 2013 other income also included income derivedfrom the British and Irish Lions’ Tour.

Competition income represents amounts received from European Rugby Cup Limited and Celtic Rugby Limited in consideration for theparticipation of WRU nominated teams in the respective tournaments of those entities. To the extent that the nominated teams haveparticipated in those tournaments there is, under the terms of the participation agreements with the nominated teams, an obligationon the Group to remit any competition income, less any costs incurred by the Group in respect of the competitions, to them.

(b) Total costs are as follows: 2014 2013£’000 £’000

Operational costs (see (c) below) 31,193 31,944Exceptional costs (see note 4) (1,822) -Depreciation – net of grant release 3,162 3,126Accelerated depreciation (exceptional) 194 -Allocations to affiliated organisations (see (d) below) 22,471 22,063

55,198 57,133

(c) Operational costs: 2014 2013£’000 £’000

Business & administration 6,119 6,012Direct 12,996 13,705Elite rugby 4,355 4,228Community rugby 2,734 2,691Stadium 4,989 5,308

31,193 31,944

(d) Allocations to affiliated organisations 2014 2013£’000 £’000

These are analysed as follows:Regions – professional rugby 17,071 16,849Clubs – semi-professional rugby 1,136 1,226Clubs – community rugby & affiliates 4,264 3,988

22,471 22,063




3. Financing costs

2014 2013£’000 £’000

Interest payable and similar chargesInterest payable on bank and similar loans 818 959Interest payable on corporation tax settlement 84 547Amortisation of debenture issue costs 13 13Bank charges 275 193Total 1,190 1,712

Interest receivable and similar incomeShort term deposits 20 15Total 20 15

Fair value gains on derivative financial instrumentsInterest rate cap 32 (1)Interest rate floor (289) (200)Total (257) (201)

Total net financing costs 913 1,496

Fair value losses on derivative financial instruments

Derivative financial instruments are held for economic hedging purposes although they do not qualify as accounting hedges under FRS26. Consequently, the Group’s derivative instruments are fair valued at each balance sheet date with the net loss or gain recognised inthe profit and loss account.

4. Profit on ordinary activities before tax

Profit on ordinary activities before tax is arrived at after charging/(crediting):2014 2013£’000 £’000

Depreciation on owned assets 4,910 4,873Accelerated depreciation (exceptional) 194 -Release of deferred income (grant release) (1,748) (1,747)Net charge to the profit and loss account 3,356 3,126Rental of land and buildings 363 358Trade debtors impairment 18 12

Exceptional items NotesRebate from business rates reassessment (a) (1,989) -Legal and professional costs (b) 167 -Accelerated depreciation (exceptional) (c) 194 -Total exceptional items (1,628) -



4. Profit on ordinary activities before tax (continued)

During the year, the Group incurred charges that due to their size and nature were considered “exceptional”. In order to assist inunderstanding the Group’s results the Directors believe that it was appropriate to show separately the operating profit of the Groupbefore exceptional items on the face of the profit and loss account as additional information. Detailed commentary is shown below:

(a) Following the 2005 and 2010 rateable value assessments, the Group challenged the value ascribed to the Millennium Stadium.The Group received notification during the year that this challenge had been successful. The revised assessment resulted in lowerbusiness rates charges for the period 2005 to 2014. Refunds that have been received in respect of overcharged rates for theperiod 2005 to 2013 have been treated as exceptional income.

(b) During 2014, the Group incurred legal and professional costs that were considered exceptional.

(c) During 2014, the Group took the decision to replace the palletised pitch system at the Millennium Stadium with a DessoGrassmaster pitch system. Consequently the depreciation on the palletised pitch system was accelerated to reduce the carryingvalue to £nil. This accelerated depreciation has been treated as exceptional.

During the year, the Group obtained the following services from the Group’s auditor:

2014 2013£’000 £’000

Fees payable to Company auditor for the audit of the parent company and consolidated 27 27financial statements

Fees payable to the Company’s auditor for other services:The audit of the Company’s subsidiaries pursuant to legislation 20 19Taxation compliance services 28 28Other non-audit services 80 110

5. Staff numbers and costs

Staff numbers 2014 2013 2014 2013Group Group Company Company

The monthly average number of employees, including directorsin a service contract, during the year was:

Management and administration 60 61 32 32Direct 23 23 20 20Elite rugby 35 35 35 35Community rugby 57 57 57 57Stadium 36 39 - -

211 215 144 144

The above staff numbers do not include any players representing national teams, stewards engaged for events nor do they include thenon-executive Directors of the Company.


5. Staff numbers and costs (continued)

Staff costs 2014 2013 2014 2013Group Group Company Company£’000 £’000 £’000 £’000

The staff costs during the year were as follows:Wages and salaries 7,803 7,996 5,926 6,110Social security costs 795 883 619 704Pension costs – defined contribution schemes 688 507 523 390

9,286 9,386 7,068 7,204

In addition to the above amounts, £2.2m (2013: £2.4m) is paid as remuneration to players whilst representing the National Squad.These costs are included in Direct costs within Operational costs (see Note 2 (c)).

Directors’ emoluments 2014 2013£’000 £’000

The Directors’ emoluments, during the year, were as follows:Aggregate emoluments 378 362Benefits 24 21Company contributions to defined contribution pension scheme - -

402 383

The emoluments above include a fee of £35,000 (2013: £35,000) payable to the Chairman. The Group received £18,000 (2013:£17,000) from third parties in respect of the above emoluments. There is one Director accruing benefits under a defined contributionpension scheme (2013: none).

Emoluments of the highest paid director 2014 2013£’000 £’000

The emoluments of the highest paid director, during the year, were as follows:Aggregate emoluments 343 327Benefits 10 10

353 337

6. Tax on profit on ordinary activities2014 2013£’000 £’000

(a) Analysis of charge/(credit) in the year

Current taxUK corporation tax on result for the year 870 945Adjustment in respect of prior years (109) (3,737)Total current tax charge/(credit) (Note 6(b)) 761 (2,792)

Deferred taxOrigination and reversal of timing differences 13 (397)Changes in tax rates and laws (222) (81)Total deferred tax (209) (478)

Total tax charge/(credit) on profit on ordinary activities 552 (3,270)





6. Tax on profit on ordinary activities (continued)

(b) Factors affecting the current tax charge/(credit) for the year

The current tax assessed for the year is different (2013: different) from the standard rate of corporation tax in the UK of 22.5% (2013:23.8%). The differences are explained below:

2014 2013£’000 £’000

Profit on ordinary activities before tax 2,382 2,333

Profit multiplied by standard rate of corporation tax in the UK of 22.5% (2013: 23.8%) 536 554

Effects of:Accelerated capital allowances and other timing differences 90 212Permanent differences 247 179Adjustment in respect of prior years (109) (3,737)Effects of other tax rates/credits (3) -Current tax charge/(credit) for year (Note 6(a)) 761 (2,792)

In addition to the changes in rates of corporation tax disclosed above, further changes to the UK corporation tax rates were substantivelyenacted as part of the Finance Bill 2013 on 2 July 2013. These include reductions to the main rate to reduce the rate to 21% from 1 April 2014 and to 20% from 1 April 2015. As the changes were substantively enacted by the balance sheet date their effects shouldbe included in these financial statements and therefore deferred tax has been calculated at 20%.

7. Profit of the Company

The Company has not presented its own profit and loss account, as permitted by section 408 of the Companies Act 2006. The profitbefore and after tax for the financial year in respect of the Company was £4.1m and £3.5m (2013: £5.6m and £5.6m) respectively.


8. Tangible fixed assets

Centre of Other Other Group CompanyStadium Excellence buildings Land fixed assets Total Total

£’000 £’000 £’000 £’000 £’000 £’000 £’000CostAt 1 July 2013 138,598 3,148 1,687 37,629 5,235 186,297 39,670Additions - 153 - - 197 350 149Transfers 204 - - - (204) - -Disposals - - - - (1,508) (1,508) -At 30 June 2014 138,802 3,301 1,687 37,629 3,720 185,139 39,819

Accumulated depreciationAt 1 July 2013 48,769 937 1,057 - 3,524 54,287 1,313Charge for the year 4,058 279 105 - 662 5,104 160Disposals - - - - (1,508) (1,508) -At 30 June 2014 52,827 1,216 1,162 - 2,678 57,883 1,473

Net book valueAt 30 June 2014 85,975 2,085 525 37,629 1,042 127,256 38,346

At 30 June 2013 89,829 2,211 630 37,629 1,711 132,010 38,357

Included in the cost of the stadium are cumulative capitalised interest costs of £4.6m (2013: £4.6m). The depreciation charge includesan amount of £0.1m (2013: £0.1m) representing the depreciation of interest previously capitalised.

Other fixed assets comprise plant and machinery and fixtures and fittings. The tangible fixed assets of the Company predominantlyrelate to land as shown above.

9. Investments

The Group holds no material investments.

The Company held a £50,000 equity investment in Millennium Stadium plc and a £10,000 equity investment in WRU National Centreof Excellence Limited at both 30 June 2014 and 30 June 2013. Both investments are held at historical cost.

Subsidiary and other investments held directly by the Company and in which the Company has a beneficial interest, as at 30 June 2014and 30 June 2013 were:

Company Principal activity Country of % holding of incorporation ordinary shares

Millennium Stadium plc Stadia operation United Kingdom 100%Millennium Stadium Experience Limited Dormant United Kingdom 100%WRU Supporters Club Limited Marketing United Kingdom 100%WRU National Centre of Excellence Limited Provision of training facilities United Kingdom 100%Six Nations Rugby Limited Competition management Republic of Ireland 17%European Rugby Cup Limited Competition management Republic of Ireland 17%Celtic Rugby Limited Competition management Republic of Ireland 33%British Lions Limited Overseas rugby tours Republic of Ireland 25%

In addition to the shareholdings above the Company is one of nine members of European Professional Club Rugby, a Swiss associationwhose principal activity is managing the new European club competitions.

Given the disposition of the other shareholdings, the Group’s inability to exercise significant influence over the investments above withless than 100% shareholdings and the immateriality of their net surpluses and net assets after receipt of income by the Group in theother investments above, the Directors do not believe that these investments fall to be treated as associate companies. Fixed assetsinvestments are stated at the lower of cost and valuation.

Cardiff County Council (“CCC”) holds one share in Millennium Stadium plc; this share grants only certain rights and does not grantCCC any dividends nor any rights to amounts receivable upon winding up.





10. Stock

Group Group Company Company2014 2013 2014 2013£’000 £’000 £’000 £’000

Goods for resale 352 188 - -

11. Debtors

Amounts due within one year: Group Group Company Company2014 2013 2014 2013£’000 £’000 £’000 £’000

Trade debtors 3,735 3,132 1,588 1,347Loans due from clubs 716 771 716 771Less: provision for impairment of receivables (899) (931) (756) (776)

3,552 2,972 1,548 1,342Prepayments and other debtors 4,508 3,099 2,014 2,577

8,060 6,071 3,562 3,919

Amounts due after more than one year:Amounts owed by Group undertakings - - 74,992 73,497

Total debtors 8,060 6,071 78,554 77,416

The amounts due from subsidiary undertakings are unsecured and have no fixed dates of repayment. An interest charge at equivalentrates to the bank loan arrangements is levied on outstanding amounts due from subsidiary undertakings.

The carrying amount of debtors is a reasonable approximation of fair value and the carrying amounts of the Group’s debtors are alldenominated in UK Sterling (“GBP”).

As of 30 June 2014, trade debtors and loans due from clubs with a carrying value of £0.9m (2013: £1.0m) were impaired and providedfor. The amount of the provision was £0.9m as of 30 June 2014 (2013: £0.9m). The ageing of these debtors is as follows:

2014 2013£’000 £’000

3 to 6 months past due 73 185Over 6 months past due 836 795

909 980

The debtors determined as individually impaired were amounts in excess of 3 months past due that were owed by various categoriesof customer. These debts have not been written off and the Group is pursuing these amounts due.


11. Debtors (continued)

Trade debtors that are less than three months past their due date are not considered impaired. As of 30 June 2014, trade debtors ofcarrying value of £1.4m (2013: £0.8m) were past their due date but not impaired. These are balances from a number of independentcustomers and the credit risk on these customers is assessed as low. The ageing of trade debtors that are past due but not impaired isthe following:

2014 2013£’000 £’000

Up to 3 months past due 1,151 3993 to 6 months past due 200 210Over 6 months past due 5 210

1,356 819

Movements on the provision for impairment of trade debtors are as follows:2014 2013£’000 £’000

At start of year 931 948Debtors written off during the year (18) (29)Unused amounts reversed (14) -New amounts charged to profit and loss - 12At end of year 899 931

12. Cash at bank and in hand


Cash balance at bank 79 791 - 90

13. Creditors

Amounts falling due within one year:Group Group Company Company2014 2013 2014 2013£’000 £’000 £’000 £’000

Bank loans 7,832 10,267 7,832 10,267Trade creditors 3,075 3,038 1,480 597Amounts owed to group undertakings - - 8 -Corporation tax 1,887 2,825 1,585 2,825Other tax and social security 260 372 195 305Other creditors 202 188 202 188Accruals and deferred income 15,502 12,008 12,261 8,795

28,758 28,698 23,563 22,977





13. Creditors (continued)

Amounts falling due after more than one year:


Bank loans 17,135 20,008 17,135 20,008Debentures 37,605 37,621 37,605 37,621Derivative financial liability (note 14) 214 471 214 471

54,954 58,100 54,954 58,100

Maturity analysis:

Bank loans are due: Group Group Company Company2014 2013 2014 2013£’000 £’000 £’000 £’000

Within one year 7,832 10,267 7,832 10,267Between one and two years 2,890 2,705 2,890 2,705Between two and five years 4,245 7,303 4,245 7,303In more than five years 10,000 10,000 10,000 10,000

24,967 30,275 24,967 30,275

The Group’s term loan is repayable by fixed amounts per quarter, inclusive of interest and capital. The maturity analysis above is basedon an estimation of LIBOR by the Directors for the remaining term. If the Directors’ estimate above is incorrect then the maturity analysiswill change accordingly.

The principal terms of these loans are set out below:

Bank loans Interest and capital repayment terms 2014 2013£’000 £’000

Revolving credit facility LIBOR plus 2.50%, loan repayable on maturity date 5,000 7,500Term loan LIBOR plus 2.00%, loan repayment in instalments by 2021 9,967 12,775Tranche C Interest and capital is payable only in the event of default 10,000 10,000

or certain other defined events24,967 30,275

The principal terms of the bank loans shown above relate to the primary instrument and do not take account of derivative instruments.

Interest on amounts drawn on the revolving credit facility is referenced to the LIBOR rate applicable to the draw period. At 30 June2014 the revolving credit facility was drawn for a period of 1 month.

Interest on the term loan is re-priced every 3 months and referenced to 3 month LIBOR.

The carrying amounts of the Group’s borrowings, which include bank loans and debenture loans, approximate their fair value.

The carrying amounts of the Group’s borrowings are all denominated in GBP.


13. Creditors (continued)

Security provided on bank loans

Bank loans totalling £25.0m (2013: £30.3m) are secured by fixed and floating charges over the assets of the Company and certain ofits subsidiaries.

Borrowing facilities

The Group had £12.5m (2013: £10.0m) of undrawn committed borrowing facilities available at 30 June 2014 in respect of which allconditions precedent had been met at that date.

Debenture loans are repayable in: Group Group Company Company2014 2013 2014 2013£’000 £’000 £’000 £’000

2021 360 360 360 3602024 13,019 13,019 13,019 13,0192026 486 486 486 4862027 2,425 2,425 2,425 2,4252028 350 350 350 3502030 4,833 4,833 4,833 4,8332035 1,768 1,781 1,768 1,7812050 14,527 14,543 14,527 14,543

37,768 37,797 37,768 37,797Unamortised issue costs (163) (176) (163) (176)

37,605 37,621 37,605 37,621

All debenture loans are unsecured and bear no interest.

Bank and debenture loans repayable by instalments wholly or partly after 5 years

Bank loans, with a total value of £25.0m (2013: £30.3m), are repayable wholly or partly from the balance sheet date by instalments.Of these amounts, £10.0m (2013: £10.0m) is repayable after five years.

Debenture loans, with a total value of £37.6m (2013: £37.6m), are repayable wholly from the balance sheet date. Of these amounts,£37.6m (2013: £37.6m) is repayable after five years.





14. Borrowings and financial instruments

Treasury policy

Treasury activity is focused on monitoring working capital, managing external funding and managing interest rate risk. Treasury activityis not a profit centre and the Group neither enters into transactions of a speculative nature nor trades in financial instruments. Treasuryrisk management policies are summarised below:

• Foreign exchange risk – where applicable, the Group mitigates foreign exchange risk with the use of forward contracts.As at 30 June 2014 the Group had no material foreign exchange risk (2013: £nil).

• Interest rate risk – operations are financed through a mixture of bank borrowings and debenture loans. The Group currentlyborrows in floating rates of interest and uses derivative financial instruments to generate the desired interest profile and tomanage exposure to interest rate fluctuations. At 30 June 2014 some 76% (2013: 66%) of bank borrowing waseconomically hedged with derivatives.

• Liquidity risk – the Group’s policy is to maintain a balance between continuity of funding and flexibility. As at 30 June2014, 24% (2013: 30%) of borrowings were due to mature within five years, some 22% (2013: 24%) were due to maturebetween five years and fifteen years and some 54% (2013: 46%) were due to mature after fifteen years.

The directors believe the disclosure of a sensitivity analysis on interest rate risk is not appropriate as the interest rate cap and collaragreements, as set out below, mitigate against any material exposure.

Financial instruments

At 30 June 2014 the notional principal amounts of derivatives relating to interest rate cap and collar agreements were £11.4m and areanalysed as follows:

Instrument Notional Fair marketamount value Maturity date£’000 £’000

Interest rate cap 3.75% 11,400 34 30 June 2018Interest rate floor 2.10% 11,400 (248) 30 June 2018

At 30 June 2013 the notional principal amounts of derivatives relating to interest rate cap and collar agreements were £13.3m and areanalysed as follows;

Instrument Notional Fair marketamount value Maturity date£’000 £’000

Interest rate cap 3.75% 13,300 66 30 June 2018Interest rate floor 2.10% 13,300 (537) 30 June 2018


14. Borrowings and financial instruments (continued)

During the year to 30 June 2014, none of the Group’s derivatives qualified for hedge accounting under FRS 26 (2013: £nil). Theseinstruments are carried at fair value as analysed below:


Interest rate cap 34 66 34 66Interest rate floor (248) (537) (248) (537)Derivative financial liability (214) (471) (214) (471)

In accordance with FRS 26, ‘Financial instruments: Recognition and measurement’, the Group and Company have reviewed all contractsfor embedded derivatives that are required to be separately accounted for if they do not meet certain requirements set out in thestandard. Neither the Group nor the Company have such embedded derivatives as per FRS 26.

15. Accruals and deferred income

Grants Group Group Company Company2014 2013 2014 2013£’000 £’000 £’000 £’000

At start of year 39,307 41,154 - -Amounts repaid (100) (100) - -Released to the profit and loss account (1,748) (1,747) - -At end of year 37,459 39,307 - -

During the year some £1.7m (2013: £1.7m) was released to the profit and loss account from the grants amount shown above.

Included within the grants amount above is an amount received from the Big Lottery Fund (formerly the Millennium Commission)amounting to £28.4m (2013: £29.6m). This grant will be released to the profit and loss account as follows:


Within one year 1,196 1,196 - -Between one and two years 1,196 1,196 - -Between two and five years 3,588 3,588 - -In more than five years 22,379 23,575 - -

28,359 29,555 - -

In certain circumstances, the above grant can become repayable if the Group fails to meet the monitoring requirements of the grant.The Group is currently in full compliance with the monitoring requirements such that no monies are repayable under the terms of thegrant.





16. Deferred tax liability

Deferred tax

The movement on deferred tax is as follows:Group Group Company Company2014 2013 2014 2013£’000 £’000 £’000 £’000

Liability/(asset) at start of year 1,668 2,146 (199) (222)(Released)/charged to the profit and loss account (326) (478) 65 23Adjustment in respect of previous years 117 - (16) -At end of year 1,459 1,668 (150) (199)

Deferred tax provided/(recognised) is made up as follows:Accelerated capital allowances 1,612 1,955 - -Tax losses carried forward - (86) - -Other timing differences (153) (201) (150) (199)

1,459 1,668 (150) (199)

17. Company limited by guarantee

The liability of the members is limited. Every member of the Company undertakes to contribute such amounts as may be required (notexceeding £1) to the Company’s assets if it should be wound up while the member is a member, or within one year after a memberceases to be a member, for payment of the Company’s liabilities contracted before a member ceased to be a member. At the balancesheet date the number of members was 335 (2013: 336).

18. ReservesProfit and loss

account Other reserves Total£’000 £’000 £’000

GroupAt 1 July 2013 8,973 2,314 11,287Retained profit for the year 1,830 - 1,830At 30 June 2014 10,803 2,314 13,117

Profit and loss account Other reserves Total£’000 £’000 £’000

CompanyAt 1 July 2013 32,435 2,610 35,045Retained profit for the year 3,548 - 3,548At 30 June 2014 35,983 2,610 38,593

Company - retained profit for the year 2014is analysed as follows: £‘000

Profit before tax 4,073Tax charge (525)

3,548


19. Contingent liabilities

Group

The Group had the following contingent liabilities as at 30 June 2014:

● The Group has guaranteed the performance of some member clubs in respect of loans that the member clubs have receivedfrom Barclays Bank PLC. The amounts due are £1.2m (2013: £1.2m).

Company

The Company had the following contingent liabilities as at 30 June 2014:

• The Company has guaranteed the performance of one of its subsidiaries under the terms of grant arrangements amountingto £37.5m (2013: £39.3m).

● The Company has guaranteed the performance of some member clubs in respect of loans that the member clubs havereceived from Barclays Bank PLC. The amounts due are £1.2m (2013: £1.2m).

The Group and Company are dealing with a small number of legal claims. The Directors have reviewed all of these claims and, on thebasis of legal advice received, believe that no provision is necessary. Consequently no provision for these claims has been included inthese financial statements.

20. Commitments

Capital commitments of the Group:

2014 2013£’000 £’000

Authorised and contracted: 3,128 -

The Company had no capital commitments at 30 June 2014 or 30 June 2013.

Operating lease commitments:

At the balance sheet date, the Group had the following annual commitments, under non-cancellable operating leases:

2014 2013£’000 £’000

Land and buildingsExpiring after five years 362 357

21. Pension costs

The Group operates defined contribution schemes. The assets of the defined contribution pension schemes are held separately fromthose of the Group, under independent administration. The pension cost charge for these schemes represents contributions payableby the Group to the schemes in the year amounting to some £0.7m (2013: £0.5m). There are no material amounts included in creditorsin respect of these pension costs in 2014 or 2013.





22. Reconciliation of operating profit to net cash inflow from operating activities

2014 2013£’000 £’000

EBITDA 27,300 29,018Allocations to affiliated organisations (22,471) (22,063)Exceptional items 1,822 -Depreciation (4,910) (4,873)Exceptional depreciation (194) -Release of deferred income 1,748 1,747Operating profit 3,295 3,829

Non-cash items:Depreciation 4,910 4,873Exceptional depreciation (194) -Release of deferred income (1,748) (1,747)

3,356 3,126Working capital adjustments:(Increase)/decrease in stock (164) 3Increase in debtors (1,989) (2,020)Increase/(decrease) in creditors 3,433 (1,288)

1,280 (3,305)Net cash inflow from operating activities 7,931 3,650

23. Reconciliation of net cash flow to movement in net debt2014 2013£’000 £’000

Decrease in cash in the year (712) (40)Cash outflow/(inflow) from movement in debt 5,337 (661)Non-cash changes (13) (13)Decrease/(increase) in net debt during the year 4,612 (714)Net debt at the beginning of the year (67,105) (66,391)Net debt at the end of the year (62,493) (67,105))




24. Analysis of net debtBank debt Bank debtdue within due after

Cash one year one year Debentures Total£’000 £’000 £’000 £’000 £’000

At 1 July 2013 791 (10,267) (20,008) (37,621) (67,105)Cashflow (712) 5,267 41 29 4,625Non-cash changes - (2,832) 2,832 (13) (13)At 30 June 2014 79 (7,832) (17,135) 37,605 (62,493)

At 1 July 2012 831 (6,788) (22,812) (37,622) (66,391)Cashflow (40) (675) - 14 (701)Non-cash changes - (2,804) 2,804 (13) (13)At 30 June 2013 791 (10,267) (20,008) (37,621) (67,105)

25. Related party transactions

In accordance with the exemption afforded by FRS 8, ‘related party transactions’, there is no disclosure in these financial statements oftransactions with entities that are part of the Group.

26. Post balance sheet events

In August 2014 the Group signed the “Rugby Services Agreement” with the four Regions. This six year agreement, to 30 June 2020,outlines the allocations the Regions will receive over that period and provides an operating framework for elite rugby in Wales.



Report on the financial statements

Our opinion

In our opinion the financial statements, defined below:

• give a true and fair view of the state of the group’sand of the company’s affairs as at 30 June 2014 andof the group’s profit and cash flows for the year thenended;

• have been properly prepared in accordance withUnited Kingdom Generally Accepted AccountingPractice; and

• have been prepared in accordance with therequirements of the Companies Act 2006.

This opinion is to be read in the context of what we say inthe remainder of this report.

What we have audited

The group financial statements and company financialstatements (the “financial statements”), which areprepared by The Welsh Rugby Union Limited, comprise:

• the Balance Sheets as at 30 June 2014;

• the Consolidated Profit and Loss Account for the yearthen ended;

• the Consolidated Cash Flow Statement for the yearthen ended; and

• the notes to the financial statements, which includea summary of significant accounting policies andother explanatory information.

The financial reporting framework that has been appliedin their preparation is applicable law and United KingdomAccounting Standards (United Kingdom GenerallyAccepted Accounting Practice).

In applying the financial reporting framework, the directorshave made a number of subjective judgements, forexample in respect of significant accounting estimates. Inmaking such estimates, they have made assumptions andconsidered future events.

What an audit of financial statements involves

We conducted our audit in accordance with InternationalStandards on Auditing (UK and Ireland) (“ISAs (UK &Ireland)”). An audit involves obtaining evidence about theamounts and disclosures in the financial statements

sufficient to give reasonable assurance that the financialstatements are free from material misstatement, whethercaused by fraud or error. This includes an assessment of:

• whether the accounting policies are appropriate tothe group’s and the company’s circumstances andhave been consistently applied and adequatelydisclosed;

• the reasonableness of significant accountingestimates made by the directors; and

• the overall presentation of the financial statements.

In addition, we read all the financial and non-financialinformation in the Annual Report & Consolidated FinancialStatements to identify material inconsistencies with theaudited financial statements and to identify anyinformation that is apparently materially incorrect basedon, or materially inconsistent with, the knowledgeacquired by us in the course of performing the audit. If webecome aware of any apparent material misstatements orinconsistencies we consider the implications for our report.

Opinion on other matter prescribed by theCompanies Act 2006

In our opinion the information given in the Strategic Reportand the Directors’ Report for the financial year for whichthe financial statements are prepared is consistent with thefinancial statements.

Other matters on which we are required to report byexception

Adequacy of accounting records and information andexplanations received

Under the Companies Act 2006 we are required to reportto you if, in our opinion:

• we have not received all the information andexplanations we require for our audit; or

• adequate accounting records have not been kept bythe company, or returns adequate for our audit havenot been received from branches not visited by us; or

• the company financial statements are not inagreement with the accounting records and returns.

We have no exceptions to report arising from thisresponsibility.

Independent auditors’ report to the members of The Welsh Rugby Union Limited



Independent auditors’ report to the members of The Welsh Rugby Union Limited

Directors’ remuneration

Under the Companies Act 2006 we are required to reportto you if, in our opinion, certain disclosures of directors’remuneration specified by law are not made. We have noexceptions to report arising from this responsibility.

Responsibilities for the financial statements and theaudit

Our responsibilities and those of the directors

As explained more fully in the Statement of Directors’Responsibilities set out on page 70, the directors areresponsible for the preparation of the financial statementsand for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on thefinancial statements in accordance with applicable law andISAs (UK & Ireland). Those standards require us to complywith the Auditing Practices Board’s Ethical Standards forAuditors.

This report, including the opinions, has been prepared forand only for the company’s members as a body inaccordance with Chapter 3 of Part 16 of the CompaniesAct 2006 and for no other purpose. We do not, in givingthese opinions, accept or assume responsibility for anyother purpose or to any other person to whom this reportis shown or into whose hands it may come save whereexpressly agreed by our prior consent in writing.

Mark Ellis (Senior Statutory Auditor)For and on behalf of PricewaterhouseCoopers LLPChartered Accountants and Statutory AuditorsCardiff

19 September 2014



Welsh Rugby Union governance year ended 30 June 2014

Patron and Office Bearers:

PatronHer Majesty Queen Elizabeth II

Vice PatronHis Royal Highness The Duke of Cambridge

President Dennis Gethin

Governance of Welsh Rugby

The principal activity of the Group is to promote, foster,encourage, control and improve the game of rugbythroughout Wales. The Board of The Welsh Rugby UnionLimited (“Board”) is responsible for ensuring that theprincipal activity is managed, which it does through theWelsh Rugby Group Executive Board. The Board comprisesa non-executive Chairman, sixteen non-executive Directorsand one executive Director.

The Board of Directors of The Welsh Rugby UnionLimited

Non-executive chairman:David Pickering

Executive:Roger Lewis (Group Chief Executive)

Non-executive members:Kenneth Hewitt (non-executive vice chairman)Mal BeynonGerald Davies CBE, DLMartin DaviesGeraint EdwardsGordon EynonHumphrey EvansBrian FowlerRoy GiddingsRichard GwynnRussell HowellAnthony JohnAlan JonesAlwyn JonesAurwel MorganRay Wilton

At the Annual General Meeting 2014, David Pickering,Gerald Davies, Roy Giddings and Aurwel Morgan will retirefrom the Board. They will be replaced by AnthonyBuchanan, Gareth Davies, Chris Morgan and David Young.

Company SecretaryGareth Williams

Welsh Rugby Union Group – Executive Board

Chairman: Roger Lewis(Group Chief Executive)

Executive:Rhodri Lewis Head of Legal AffairsJosh Lewsey Head of Rugby

(appointed 30 September2013)

Craig Maxwell Head of Group Sales andMarketing

Julie Paterson Head of Group ComplianceSteve Phillips Group Finance Director Mark Williams Stadium Manager

(appointed 2 October 2013)John Williams Head of Communications Gareth Edwards hosts a Stadium tour

WRU Staff workshop


Board Committees

During the year, the Board operated three principal sub-committees to assist in its business. The role andmembership of the sub committees were as follows:

The Finance Committee, chaired by Martin Davies,comprised David Pickering, Kenneth Hewitt, Roger Lewis,Humphrey Evans, Gordon Eynon and Steve Phillips. TheFinance Committee is responsible for all financial mattersof the Group other than dealing with the Group’s auditors.

The Regulatory Committee, chaired by Mal Beynon,comprises Geraint Edwards, Brian Fowler, Russell Howell,Aurwel Morgan, Ray Wilton, and Julie Paterson. It isresponsible for disciplinary matters and the managementof all leagues and cup competitions in operation.

The Game Policy Committee, chaired by Alan Jones,comprises Roy Giddings, Gerald Davies, Richard Gwynn,Anthony John and Alwyn Jones. In addition to Josh Lewsey,non-Board members of the Game Policy Committeeincluded Mike Rein, Ian Parker, Sophie Bennett, MartynRyan, Jason Lewis, Gethin Watts and Nigel Whitehouse.The Game Policy Committee is responsible for thedevelopment of the game at all levels, including agegroups, coaching and referees.

Development of Corporate Governance

Both the Board and the Executive Board remain committedto the continuing development of governance structures,in order to meet the evolving needs of the game of rugbyunion.

The Board and the Executive Board acknowledge the valueof the principles of good governance. The Group arecommitted to adopting the principles of best practice incorporate governance. The Group will ensure that eachmember of the Board undergoes training in the role of thenon-executive Director to be delivered by an appropriateorganisation (such as the Institute of Directors). The Groupare committed to further training and development of theBoard.

During the year, the Board was presented with Sir RobertOwen’s review of the Company’s governance structures.The findings of this review and the recommendations arebeing considered by the Board.

Board and Executive Board

There is a clear division of responsibility between the roleof non-executive Chairman and Group Chief Executive.There is a detailed limit of authority protocol in place forboth the Board and the Executive Board. All ExecutiveBoard members have detailed job descriptions in additionto limits of authority.

The Board meets on a monthly basis and considers allmatters under its terms of reference which include thedevelopment and monitoring of the Group’s strategic plan,allocation of financial resources, reviewing theperformance of the Group Chief Executive and ExecutiveBoard and approval of annual budgets.

In addition, the Board considers the recommendation ofthe Board’s standing committees, whose responsibilitiesrelate to Finance, Regulatory and Game Policy as shownabove.


Welsh Rugby Union governance for the period ended 30 June 2014

WRU Staff seminar A mascot is chosen for every Wales home game



Appointments and Remuneration Panel

The Appointments and Remuneration Panel advises theBoard on the remuneration and terms and conditions ofthe Group Chief Executive and the Executive Board. Thepanel consists of the Chairman of the Board, the Vice-Chairman of the Board and the three Chairs of thestanding sub-committees: Finance, Game Policy andRegulatory. The Committee relies on expert independentprofessional advice when deemed necessary.

The Audit Panel

The Audit Panel, chaired by Martin Davies, included DyfrigJohn and Geraint Davies as non-Board members. The AuditPanel is responsible for assisting the Board discharge itsresponsibilities for accounting policies, financial reporting,internal control and risk management and liaising with theGroup’s auditors.

Remuneration and benefits of the Board

Under the Group’s remuneration policy, no fees arepayable to non-executive Board members, other than thenon-executive Chairman who receives an annual fee of£35,000.

In addition, the Board are represented on other rugbybodies including The International Rugby Board (“IRB”),Six Nations Rugby Limited, European Rugby Cup Limited,British Lions Limited and Celtic Rugby Limited some ofwhom have a policy of financially compensating therepresentatives serving on these bodies.

Registered office and advisers

Registered officeMillennium StadiumWestgate Street, Cardiff CF10 1NS

Independent auditorsPricewaterhouseCoopers LLPChartered Accountants and Statutory AuditorsOne Kingsway, Cardiff CF10 3PW

Principal solicitorsHugh James LLPHodge House114 - 116 St. Mary Street, Cardiff CF10 1DY

BankersBarclays Bank PLC3rd Floor Windsor Court3 Windsor Place, Cardiff CF10 3ZL

The Welsh Rugby Union Limited & Millennium Stadium plcMillennium Stadium, Westgate Street, Cardiff CF10 1NS

Tel: + 44 (0)870 013 8600Email: [email protected]

www.wru.co.ukwww.millenniumstadium.com

WRU AGMAmlin Cup Final



Welsh Rugby Union governance Board of Directors for the period ended 30 June 2014

Non Executive ChairmanDavid Pickering

Joined the WRU Board in 1998 as a national representative.

He is a member of The Six Nations Committee and in 2012 was appointed to the board ofRugby World Cup Ltd. He is chairman of the Board of the Millennium Stadium and a memberof the International Rugby Board Council. He also chairs the Appointments and RemunerationPanel and is a member of the Finance Committee.

He won 23 caps for Wales between 1983 and 1987 captaining the national team eight timesand played his club rugby for Neath and Llanelli. He then coached Neath RFC and later becameManager of the Wales A team and then the senior national team.

Outside his rugby involvement he retains private business interests and holds a number ofdirectorships.

ExecutiveRoger Lewis Group Chief Executive

Appointed as Group Chief Executive of the Welsh Rugby Union and the Millennium Stadium in2006 and also represents the WRU on the boards of the European Rugby Cup Ltd, Celtic RugbyLtd and the Six Nations Committee. He is also President of Cefn Cribwr RFC.

Before joining the WRU he was Managing Director of ITV Wales. Previously he was ManagingDirector and Programme Controller of Classic FM and Board Director of its parent companyGWR plc; Managing Director at EMI Records: Worldwide President of the Decca RecordCompany and Head of the BBC Radio 1 Music Department.

Non Executive Vice ChairmanKen Hewitt

Joined the WRU Board in 1993 and represents District A.

He has represented the WRU on the Board of the European Rugby Cup Ltd, the InternationalRugby Board and the Welsh Youth Rugby Union. He is currently a member of the MillenniumStadium Board and sits on the Appointments and Remuneration Panel and the FinanceCommittee. He was on the original working party for the Millennium Stadium project

He played youth and senior rugby for Cwmtillery and Abertillery before joining Abergavennywhere he coached the youth and senior sides. He was honorary secretary for the club for 20years along with a role as honorary secretary of the then Monmouthshire League.

He is a retired head teacher.



Mal Beynon

Joined the WRU Board in 1997 and represents District A.

He is Chairman of the WRU Regulatory Committee, a member of the Millennium Stadium Boardand sits on the Appointments and Remuneration Panel.

He has been an active member of Brynmawr RFC for 60 years, first as a player and then acommittee member including terms as Treasurer, Vice Chairman and Chairman. He is now aLife Member of the club.

Now retired he worked as a scaffolder before managing his own finance business.

Gerald Davies CBE DL


He won 46 caps for Wales and was a British and Irish Lion in 1968 and 1971. He played forLondon Welsh RFC and played for and captained Cardiff RFC. He was Manager of the 2009Lions on their tour of South Africa. He is a member of the Game Policy Committee.

He has been an Executive Officer with Sport Wales and a non-executive Director and Chairmanof HTV. He was also Chairman of the Welsh Youth Agency. He is an author, a rugby columnistfor The Times, a member of the Eisteddfod Gorsedd of Bards and Deputy Lord Lieutenant ofGwent.

Martin Davies


He also currently serves on the Millennium Stadium Board and is Chairman of the WRU FinanceCommittee, a member of the Appointments and Remuneration Panel, Chairman of the AuditPanel and an executive member of the Rugby Europe Committee (formerly FIRA-AER).

He is a former player for Cardiff Youth and Glamorgan Wanderers and served as Secretary ofCrawshays Welsh.

He is a retired chartered accountant and worked for Price Waterhouse Coopers (PwC), StandardChartered Banking Group and Hillsdown Holdings. He was also director of a privatemanufacturing company. He was a Cardiff councillor for 29 years.

Geraint Edwards

Joined the WRU Board in 1993 and represents District E.

He also currently serves on the Millennium Stadium Board. He is Chairman of the WRUDisciplinary Committee and is a member of the ERC Disciplinary Sub Committee. He is a formerCiting Commissioner at Rugby Europe., ERC and Six Nations level. He is a Life Member ofDunvant RFC having been a member of the club for 55 years having played for the club’s youthand senior sides for 18 seasons before fulfilling the roles of fixture secretary for 25 years andchairman for 10 years.

He is a former tool maker with ICI and Ford and was part of the Production Management teamat British Leyland for over 25 years. He is now retired.




Humphrey R Evans

Joined the WRU Board in 2002 and represents District C.

He is a former player for Aberdare RFC and since retiring from the game has served on the clubcommittee for 40 years. He is a former fixture secretary and was elected Chairman 28 yearsago. He is a member of the Finance Committee.

Now retired he worked for Unilever as a sales representative and is now a lay preacher for theUnitarian Church.

Gordon Eynon

Joined the WRU Board in 2011 and represents District H.

After playing youth rugby for Narberth, he represented Whitland RFC, Gwernyfed RFC,Breconshire, Carmarthen Quins RFC and Crymych RFC at senior level. He was head coach atCrymych for three years before becoming club secretary in 1989, a position he still holds todayand is now a Life Member of the club. He has been a District H committee member since 1995and chaired the district from 2009 to 2011. He is a member of the Finance Committee.

He is a former schoolmaster and currently runs a farm in Pembrokeshire.

Brian Fowler

Joined the WRU Board in 2002 and represents District F. He is a member of the RegulatoryCommittee.

He played rugby for St Luke’s College Exeter, Llanelli RFC, Ammanford RFC, Brynamman RFCand Tycroes RFC. He was later secretary of Ammanford RFC for 23 years.

He has been a local government officer for Carmarthenshire County Council since 1989 havingpreviously worked for the National Coal Board.

Roy Giddings

Joined the WRU Board in 1988 and represents District B. He is a member of the Game PolicyCommittee.

He is a former player for Pencoed RFC and was secretary of the club from 1963-1988. He hasbeen secretary of the East District since 1976.

He studied cost accountancy before completing his National Service in 1961 and joined theBritish Steel Corporation in 1962 as a departmental cost accountant. He later became cashierof Llanwern Steelworks until his retirement in 1999.



Richard Gwynn

Joined the WRU Board in 2011 and represents District E. He is a member of the Game PolicyCommittee.

He played for Swansea Uplands RFC and has been club secretary for 33 years. He is also VicePresident of Crawshays Welsh. He is a former WRU referee and is a former secretary of theSwansea and District Referees Society. He is a Citing Commissioner. He was treasurer of theBritish Telecom and Post Office Rugby Union (affiliated to the RFU) from 1984 to 1986.

Russell Howell

Joined the WRU Board in 1997 and represents District B.

He is a WRU representative on Rugby Europe. He became Chairman of Pentyrch RFC while stillplaying for the club. He was then club president for eight years and is now a Life Member. Healso chaired District B before being elected onto the WRU board. He is a member of theRegulatory Committee.

He is a retired haulage contractor.

Alan Jones

Joined the WRU Board in 2003 and represents District D.

He chairs the WRU Game Policy Committee, is a member of the Appointments andRemuneration Panel and was formerly a member of the WRU League Management Committee.

He played for Birmingham University and Bryncoch RFC which he also captained. He is a LifeMember of the club having been club secretary for the past 21years. He was also the club’schairman for 10 years.

He was an IT specialist for Wales Gas, BP and BT. He has also carried out volunteer work for theAge Concern charity helping elderly people learn IT skills.

Aurwel Morgan

Joined the WRU Board in 2005 and represents District D. He is a member of the RegulatoryCommittee.

He played rugby for Cwmgwrach RFC, University of Wales Aberystwyth, Aberystwyth RFC,Cardiganshire, Winchester, Hampshire, Glynneath RFC and Bridgend Sports RFC. He has beenChairman of District D and was secretary of Bridgend Sports RFC for 30 years. He is a citingcommissioner to test match level.

He is a retired lecturer in Agriculture and Head of Department at Glamorgan College ofAgriculture.




Ray Wilton

Joined the WRU Board in 1998 and represents District C. He is a member of the RegulatoryCommittee. He is also a Citing Commissioner to test match level.

He has been a member of the Tylorstown RFC committee for 30 years and represented the clubon the Mid District Committee from 1971. He became chairman of the Mid District selectors.He was also a member of the WRU’s League Management Committee.

He worked as a development engineer in the power industry and was also employed by theHoover washing machine manufacturer for 36 years.

Alwyn Jones

Alwyn joined the WRU Board in 2012 and represents District J.

He is a member of the WRU Game Policy Committee and Trustee of the Millennium StadiumCharitable Trust.

He is a member and former player, captain and secretary of Bangor RFC. He represented NorthWales as a player, and was secretary of District J for 16 years. Alwyn is currently employed byHMRC.

Anthony John

Re-joined the WRU Board in 2012 and represents District G.

He sat on the WRU League Management Committee from 1993 to 2003. Anthony is a memberof the Game Policy Committee. He is also Vice President of the Llanelli and District Rugby Union,has served as a committee member for Kidwelly RFC for 30 years, Fixture Secretary for 10 yearsand is a Trustee of the club.

He captained the Zambian National team while working in the region, and played for Loughorand Kidwelly. He worked as Site Manager for Dwr Cymru Welsh Water for 33 years.

Company SecretaryGareth Williams

He is Senior Partner with Hugh James, the largest law firm in Wales with offices in Cardiff andLondon. He is a specialist in commercial litigation and a sports lawyer.

He is also a director of Thomas Carroll Group plc.

Gareth chairs the Board of Directors of the Royal Welsh College of Music and Drama, Governorof the University of South Wales, Trustee of the Welsh Rugby Charitable Trust. He is formerly adeputy judge and Chairman of the Wales Commercial Law Association.



Roger Lewis Group Chief Executive

Roger Lewis chairs the Executive Board. He is also a director of the WRU. His biography appearson page 98.

Josh Lewsey Head of Rugby

The England, British and Irish Lions and London Wasps multiple trophy winning internationaljoined the WRU Group in October 2013 as Head of Rugby.

In addition to playing the game professionally he worked externally in a number of managementroles after graduating from Bristol University, The College of Law and the Royal Military AcademySandhurst.

Immediately following his retirement from rugby he specialised within business consulting forPwC as a management consultant leading a range of strategic change projects across varioussectors and industries. He also traded financial markets, moving to the trading floor of Citibankbefore reviewing the Equities asset class, thus earning the role of EMEA Head of BusinessAdvisory Services.

Steve Phillips Group Finance Director

Steve Phillips joined the WRU Group as Group Finance Director in January 2007.

He joined from TBI which was one of the largest regional airport owners in the world and in histen years at the company he played active roles in the acquisition of airports in Belfast, Sweden,London Luton, Bolivia, Costa Rica, Australia and North America.

He trained with KPMG and qualified as a Chartered Accountant in 1989. He was previouslyFinance Director at the Tedcastle UK Group before joining TBI as Group Financial Controller andthen Group Finance Director.

He played rugby for Amman Valley Comprehensive School, Imperial College London, Universityof London and Amman United, where he captained the first XV.

Rhodri Lewis Head of Legal Affairs

Rhodri Lewis joined the WRU Group in August 2010.

He started his legal career at the international law firm Freshfields Bruckhaus Deringer inLondon, before joining the commercial legal department at UEFA (the European footballgoverning body, based in Switzerland) working predominantly on Champions League, EuropaLeague and UEFA European Football Championships matters.

Rhodri left UEFA to become the Senior Solicitor at The FA Group and was responsible for abroad range of legal matters in relation to both The Football Association (including in relationto the 2010 FIFA World Cup) and Wembley Stadium.

He played rugby throughout his time at Ysgol Gyfun Gymraeg Glantaf and has played rugbyfor Dinas Powys, for teams in London, Thailand, Hong Kong, Australia and Switzerland and forthe University of London.

Welsh Rugby Union governance Executive Board for the period ended 30 June 2014



Welsh Rugby Union governance Executive Board for the period ended 30 June 2014

Julie Paterson Head of Group Compliance

Julie Paterson has been the Head of Group Compliance for the WRU Group since 2005.

Since joining the WRU Group in 1989 Julie has served in a number of areas across the businessdealing directly with strategic and operational issues related to the management ofInternational, Regional and Club rugby, which includes matters such as the WRU Club supportand operations teams, and liaison with other rugby governing bodies, World Rugby (formerlythe IRB) and stakeholders, partners or associates such as the Welsh Government, Sport Walesand local authorities.

Mark Williams Stadium Manager

Mark Williams was appointed as Stadium Manager for the WRU Group in October 2013.

He joined the WRU Group after a military career spanning 20 years during which he rose to therank of Lieutenant Colonel in The Royal Welsh. He served on multiple tours of duty in NorthernIreland, Bosnia, Kosovo and Iraq and he was decorated for his actions in combat in Iraq in 2007.

During his military career he held some very high-profile military appointments in both thetraining and operational environments including time as a Battalion Adjutant, CompanyCommander and Battle Group Chief of Staff with the 2nd Battalion, The Royal Welsh.

He played rugby for Neath College, Glynneath RFC and his Regiment.

Craig Maxwell Head of Group Sales and Marketing

Craig Maxwell became the Head of Group Sales and Marketing of the WRU Group in 2010after joining from Under Armour where he had been the USA based sportswear company’sHead of Sports Marketing in the UK and Ireland since 2008.

Whilst at Under Armour, Craig worked on the launch of the brand’s footwear and was integralin building the Under Armour brand across all sports in the UK and Ireland.

He had previously worked for the WRU Group between 2004 and 2008 in various roles withinthe hospitality team before becoming Group Sponsorship Manager.

He played rugby for Greenhill Comprehensive School in Tenby and for Pembroke Dock, Narberthand Tenby at the senior level.

John Williams Head of Communications

John Williams joined the WRU Group as Head of Communications in January 2007.

He was formerly Head of News at ITV Wales for nine years and under his stewardship ITV WalesNews won the coveted Royal Television Society Regional News Programme of the Year Awardfor the first time in 2003.

He began his journalistic career as a reporter on the South Wales Echo and then joined theSunday Mirror as a staff reporter working on a number of major assignments in the UK andabroad. He is an alumni of the National Council for the Training of Journalists.

His rugby began at school in Merthyr Tydfil where he was a member of the school team whichwere Dewar Shield semi-finalists. He later played for Merthyr RFC and Cefn Coed RFC.



Ian Robinson(21 February 1944 – July 2014)

Ian Roger Robinson, widely known as ‘Robbo’, was a oneclub man.

In a playing career which spanned 16 years he featured384 times for Cardiff and also played 178 games for theAthletic between 1964 and 1980.

The second row won two Welsh caps in 1974, againstFrance and England and at 6ft 6in he was the tallest lockin his day to wear the red jersey. He also represented theBarbarians and Crawshays XV.

Handel Greville (13 September 1921 – 20 June 2014)

Handel, who was 92 when he passed, had held thedistinction of being the oldest living Welsh international.

A scrum-half by trade, he won his solitary cap for Wales inthe 6-0 victory over Australia on Saturday 20 December1947.

Born in Drefach, he lined up alongside the likes of JackMatthews, Bleddyn Williams and Ken Jones for the famouswin over the Wallabies, played out in front of a 45,500strong crowd at the National Stadium, Cardiff Arms Park.

He was a former captain of Llanelli Rugby Club, who alsoplayed for both Carmarthen Athletic and Swansea andlater became president, chairman and secretary of LlanelliRFC.

William James Darch(24 Mar 1923 – 20 Jan 2014)

Dr Darch died aged 90, after a short illness. He played forWales in 1945 and last November the WRU awardedPresidents’ caps to 25 players who played in non-testmatches, including Dr Darch.

He obtained a degree and PhD from Cardiff University inthe 1940s before he went to work for BP starting his careerat Llandarcy Oil Refinery and worked his way up.

He commissioned BP refineries in Australia, Toronto andMontreal and eventually became head of BP’s world-widerefineries, which led him to become president of theconsortium that built the trans-Alaska pipeline – one of the

world’s largest pipeline systems, running 800 miles fromwells at Prudhoe Bay to the port of Valdez.

Denzil Thomas

(21 April 1921 – 17 Feb 2014)

A match winner on his Welsh debut, Denzil Thomas diedafter a long battle with Parkinson’s Disease.

His only cap was against Ireland in 1954 where his lastminute drop goal at Lansdowne Road gave Wales a slender12-9 win.

He learned his rugby at Llandeilo before playing forBrynamman, Skewen and Neath before joining Llanelli.

He also played for Bath, Cwmgors, the RAF and TenbyUnited. He was a schoolmaster in Bridgend beforespending 30 years as a Sports Master in Greenhill GrammarSchool in Tenby.

Gerry Wallace(23rd May 1945 – 6 Dec 2013)

Gerry Wallace played 259 times for Cardiff between 1965and 1975 as part of a team which boasted the likes ofGareth Edwards, Barry John and Gerald Davies in its squad.He earned a reputation as a free running forward whoscored a total of nine tries for the Arms Park team. Heplayed for Wales B and was one of the 25 playerspresented with a President’s Cap for playing against Tongain 1974.

Keith Bradshaw(7 April 1939 – 2 February 2014)

Keith Bradshaw won nine caps and scored 36 points in hisinternational career and was a key member of the teamthat won the Five Nations Championship in 1966, kickingtwo penalties as Wales beat France 9-8 in the final game.

Bradshaw, from Cefn Cribwr, was Captain of Bridgend RFCin the 1965/66 season. He made his debut for Wales in the6-6 draw with England at Twickenham in January 1966and in his second Test against Scotland scored a try,conversion and penalty as Wales won 11-3 in Cardiff.Bradshaw toured South Africa with Wales the same year.

He died, aged 74, after a long illness.

Obituaries





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The Welsh Rugby Union Limited & Millennium Stadium PLC

Millennium Stadium, Westgate Street, Cardiff CF10 1NSTel: +44 (0)870 013 8600Email: [email protected]

www.wru.co.ukwww.millenniumstadium.com

Documents

THE WELSH RUGBY UNION LIMITED Annual Report 2014...2 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2014 Financial highlights 25 Turnover Operational costs Allocations to affiliated