London 2012 Produce Financial Report Showing Increased Revenue

London 2012’s sponsorship successes have allowed them to put £70 million ($112 million) on deposit with its long-time sponsor Lloyds Bank their annual financial report showed.

The organisation’s annual report and accounts, were published explaining that “as a result of the company’s commercial success in generating income ahead of target, the board approved a revised cash management policy authorising [it] to make long term deposits, so as to maximise return on its assets.

“As of 31 March 2011, the company had implemented this policy, placing £70 million ($112 million) on deposit for 18 months which is intended to be held to maturity.”

The accounts later state that “£70 million ($112 million) has been placed on long term deposit with Lloyds Bank plc”.

London 2012 can only deposits cash surpluses with Lloyds under their sponsorship agreement.

The accounts were published as the Games organiser announced that it had reached its £700 million ($1.1 billion) sponsorship target after tieing up the Westfield deal as its 44th domestic partner.

Today’s document also disclosed that, as at the March 31 year-end, London 2012 had secured £266 million ($425 million) of contractual hospitality ticketing income and client group ticket sales.

This did not include income from public ticket sales, received after the year-end.

The organisation got more than 22 million applications from nearly two million people for the 6.6 million Olympic tickets.

Costs are also increasing as it gears up for the Games with less than a year to go.

Staff costs surged from £31.3 million ($50.1 million) the previous year to £56.1 million ($89.6 million) as the organisations amped up its productivity one year before the games. The staff count more than doubled from 510 to 1,162 during the course of the year.

Spending on venues and marketing also rose sharply.

In all, operating expenses reached £208.5 million ($333.1 million) [2010: £128.3 million ($205.1 million)], compared with revenue of £238.9 million ($381.7 million) [2010: £179.5 million ($286.8 million)].

Chief executive Paul Deighton, who earned £700,000 ($1.1 million/€798,000), including a £220,000 ($351,000/€249,000) plus performance-related award, will again donate his performance award to charity.

According to the accounts, £500,000 ($799,000/€567,000) has been placed in escrow “for the bonus to be paid to the CEO post-Games provided certain employment conditions are met”.

This is said to represent “the minimum amount that could be payable post-Games”.