Wigan Athletic Post First Profit in Six Years
Wed 2nd Jan 2013 | Money & Finance
Wigan Athletic have posted a profit for the first time in six years.
The figures released in their financial results for the year ending 31 May 2012 show the Lactics made a net profit of £4.3m compared with a £7.2m net loss in 2011.
Chief Executive Jonathan Jackson commented, "The results are once again encouraging and we are very pleased to report a net profit position in a very competitive environment.
“By increasing turnover and controlling costs the club is continuing to progress to a break even operating position which all football clubs are aspiring to but many are finding it difficult to achieve.”
Wigan’s EBITDA (earnings before interest, tax, depreciation and amortisation of players) was £8.9m compared with £4.9m in the previous year whilst turnover increased to £52.6m compared to £50.5m in 2011.
Net debt at the year-end including bank borrowings and loans from Chairman David Whelan and his family reduced significantly to £20.5m compared with £72.2m in the previous year.
During the year £48m of debt was converted to equity which significantly reduced the club's long term liabilities. At the same time the ordinary and preferred ordinary shares of the club were transferred to a new parent company, Wigan Athletic Holdings Limited which also holds a controlling interest in the company operating the DW Stadium.
Wigan consolidated their position finishing 15th in the Premier League last season (2011/12) whilst reducing salary costs to £37.7m compared to the previous year cost of £39.9.
Total administrative expenses including amortisation of player contracts reduced to £55.0m from £58.4m in the previous year. "We continue to maintain our position in the Barclays Premier League by significant investment in the playing squad to strengthen our position on the field in our eighth year in the top division,” added Jackson.
“In addition, major improvement of our academy and training facilities will commence this year to expand our strategic aim of consolidating and enhancing our infrastructure with increased focus on youth development.
“With significant increases in revenues forecasted for Premier League clubs from broadcasting agreements next year, the club is ideally placed to continue its organic growth and continue to compete in the highest profile and most competitive league in the world from a sound and sustainable financial position.”
Posted by: Aaron Gourley
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