Ian Beattie Statement on Finance

The following statement by UKA Chair Ian Beattie relates to the publication of UKA’s 2021-22 financial year accounts: (Follow this link to view)

As Chair of UKA I am always keen to ensure that I continue to communicate with all parts of the sport at key moments for the organisation. Today is one such occasion that I think it is important I speak to you in person and provide you with a detailed update.

I have been Chair of the organisation for just over a year having started in October 2021. It is fair to say UKA has had both a challenging and exciting year.

Challenging in that we have encountered changes in leadership in key areas across the organisation and the potential disruption that can bring. Challenging in that like many sports exiting the tough conditions of the pandemic we too are still feeling the knock-on effect of those difficult few years.

But so very exciting to see our athletes competing at three major championships across one summer, enjoying successful performances and enjoying the ability to stage events once more in front of spectators.

This successful backdrop is one which will help us build for the future but for now UKA has to focus in the short term on ensuring we turn the corner from our current financial position.

The accounts we are publishing today show the organisation made a £1.8m loss in the financial year 2021-22.  There are multiple reasons that UKA finds itself in this position, but in overall terms the financial commitments made in recent years have exceeded the income that we have been able to generate, compounded by a significant shortfall in the commercial area.

The severe cost challenges from operating during the pandemic and the impact on event income has remained a factor in the 2021-22 financial year. A number of changes in staffing structures and associated payments have also added to this pressure, as have significant unbudgeted but essential costs incurred in the safeguarding area.

As a result, I as Chair, our CEO Jack Buckner and the senior team now in place at UKA have been working hard on a number of areas to ensure that we turn around our financial position, rebuild our reserves and reverse the downward trend in our finances.

It is important that I underline that these results and the plans we will put in place do not impact upon the performance team or the World Class Programme operations, which continue to be well supported by UK Sport and the funding we are provided from the National Lottery.

Some of the changes we have already implemented in the last few months includes making staff and structural changes with some high-salaried positions removed from the structure, whilst maintaining expertise and knowledge within the organisation. You will already have seen that UKA last month secured the right to host the 2026 European Athletics Championships alongside our partners in Birmingham. This is fantastic news for the sport and alongside the World Indoors taking place in Glasgow in 2024 demonstrates the trust in UKA for delivering major championships. It gives the sport an excellent platform to look forward to in the coming years.

Whilst we are unable to disclose more details at this point, we can say that we will have a new commercial arrangement to announce in the new year.  This will provide us with greater financial stability and will give us more time to rebuild the organisation, with a view to increasing our commercial income in future years.

Finally, it is worth noting that this year we have begun the transfer of some areas of activity to our colleagues within the Home Country Athletics Federations, including some areas of development work in the officials and coaches area, along with lower level competition licencing. We believe that these changes are the right way forward for the sport, placing responsibility with the Home Countries who are better placed to perform this work.

No-one likes to present a significant loss in their financial results, and we are very aware that the organisation’s reserves have reduced significantly over the last few years.  However, we are now taking the steps needed to turn this around, in what remains a very difficult environment.

I am confident we are now on track to see better results in the future and that we have the management team in place to deliver, led by CEO Jack Buckner.  I have been delighted at the support we have had from our many partners in the sport since I took on this role, and with the strong relationships we have already formed.  I look forward to working even more closely with them, and with the management team, in the years ahead.