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Norwich City post growth in revenues

Mon 17th Oct 2011 | Money & Finance

Norwich City have revealed an increase in revenues and an operating profit of £0.5m in their latest set of accounts.

The results for the financial year ending May 31, 2011 show revenue had increased to £23.1m (£17.0m in 2010 and £18.3m in 2009 - the last Championship year) due to an improved commercial performance across all areas of the business.

With that, Norwich also posted a normalised operating profit of £0.5m (a loss of £1.7m in 2010 and a loss of £4.3m in 2009) with net indebtedness reduced to £16.8m (£20.9m 2010) partly due to the sale of the matchday orange car park.

 

£m
2011*

£m
2011

£m
2010*

£m
2010

£m
2009

Revenue

23.1

23.1

17.0

17.0

18.3

 

 

 

 

 

 

Trading Cost of Sales

(8.5)

(11.0)

(10.7)

(11.2)

(11.6)

 

 

 

 

 

 

 

 

 

 

 

 

Football Expenditure

(14.1)

(16.1)

(8.1)

(10.2)

(11.0)

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit/ (Loss)

0.5

(4.0)

(1.7)

(4.4)

(4.3)

 

 

 

 

 

 

 

 

 

 

 

 

Interest

(2.4)

(2.4)

(1.6)

(1.6)

(1.6)

 

 

 

 

 

 

 

 

 

 

 

 

Tax

3.1

3.1

-

-

0.6

 

 

 

 

 

 

 

 

 

 

 

 

Loss after Tax

0.6

(3.9)

(3.1)

(5.8)

(5.0)

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

3.0

(1.5)

1.2

(1.4)

(0.9)

 

 

 

 

 

 

 

 

 

 

 

 

Net Debt

16.8

16.8

20.9

20.9

22.9

* Excluding exceptional costs

In the accounts, the club stated its key actions taken in the business within the last 12 months include:

- Refinancing of the balance sheet
- Disposal of non-core property assets
- Significant reduction of net debt
- New equity investment to help strengthen squad and improve chance of promotion
- Significantly improved commercial performance of all areas of the business
- Achieved promotion to the Premier League
- Retained football management team and back room staff for 2011/12 season
- Recruited 8 new players in to the squad for the 2011/12 season
- Successfully completed stadium upgrades required to meet Premier League regulations

Norwich have also reported the following target results for next year-end:

• Revenue to increase by at least £40m

• Significantly increased operating profits but cash to be neutral due to the need for debt repayments and investment in assets

• Net debt to reduce by at least a further £6m

City Chairman Alan Bowkett commented: "While everyone is aware of the outstanding football performance last year, I am pleased to report this improvement has continued off the field of play. Revenues and normalised operating profit are up while net debt is down. This trend will accelerate this year."

A full set of annual accounts are due to be posted to Norwich City Shareholders next week. The Club's AGM will be held on Tuesday, November 22.

 

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