Dundee United Post Profit
Thu 25th Oct 2012 | Money & Finance
Dundee United's Annual Accounts for the period to June 2012 have revealed the club achieved a net profit of £1.449m for the year, and that the bank term loan was reduced from £5.4m to £3.93m.
A further reduction of £225,000 was made in July 2012, reducing the outstanding loan amount to £3.7m - a reduction of over 30% from 2011.
The club’s impressive financial display comes despite a tough year for Scottish football and the continuing challenging financial environment. This, along with an impressive season for the first team, ensured that revenues reflected only a small reduction of 3% to £5m.
Chairman Stephen Thompson said, "In what most people recognise as one the most difficult financial periods affecting Scottish football in many years, it is pleasing to be able to report a healthy net profit and a significant reduction in bank borrowings.”
Administration and wage costs were consistent with the prior year, although the drop in revenue and an increase in employer's NIC rate resulted in the percentage of wages to turnover ratio increasing slightly from 74% to 76%.
During the year, Dundee United made a profit of £2.135m from the transfer of player registrations. “It is particularly pleasing that the financial position has improved as a direct result of our long term investment in the club's youth development policy, which produced the receipt of significant transfer fees during the year from the sale of David Goodwillie and Scott Allan.,” added Thompson.
"It is equally encouraging that astute signings by the Manager and the introduction of further exciting youth development players not only allowed the team to remain competitive, but also provides optimism for further financial improvement.”
Dundee United’s continued financial improvement has seen the removal of an ‘emphasis of matter’ paragraph concerning the going concern status of the club. No such paragraph has been required this year, which highlights the continued efforts of the Board to reduce the club's debt and improve the working capital management of the club.
"However, I must also caution that the current and forecast economic situation continues to present challenges and whilst the Board remains committed to ensuring a team capable of producing performances on the park and entertaining the supporters, we must also ensure that a prudent fiscal policy is maintained,” Thompson stressed.
“Our supporters have responded to the recent challenges in magnificent fashion, culminating in a significant increase in season ticket sales. We must continue to work together to ensure the long term sustainability of our club. We must continue to move forward united as one."
Posted by: Aaron Gourley
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