Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Southampton announce £33m profit

Tue 31st Mar 2015 | Money & Finance

Southampton Football Club made a £33.4m profit for the year ending June 30th 2014 - the first full-year profit and positive balance sheet net assets for St Mary’s Football Group Limited since administration in 2009.

The club's previous annual financial results for the year ending June 30 2013 posted a net loss of £7.1m.

Financial highlights for the Group: 

  • Profit on ordinary activities after taxation was £33.4m (2013: £7.1m loss)
  • The balance sheet net assets were £31.8m (2013: £1.6m net liabilities)
  • Total revenue increased to £106m (2013: £71.8m) as a direct consequence of Broadcasting income increasing from £46.9m in 2012/13 to £79.4m in 2013/14
  • Commercial income has increased from £6.7m in 2012/13 to £8.3m in 2013/14
  • Operating costs to turnover improved to 78.2% (2013: 88.0%) while staffing costs to turnover also improved to 59.3% (2013: 65.5%)
  • Total Group wages, including players, increased from £41.4m in 2013 to £55.2m in 2014
  • Profit before player trading increased to £25.3m (2013: £8.6m). Player trading includes an exceptional cost of £6.2m relating to the impairment of player registrations   
  • Expenditure on the total training ground project now exceeds £25m and the full project cost is expected to amount to approximately £38m
  • As of the balance sheet date, the financial statements show a total debt position of approximately £50m, of which circa £19m is owed to Vibrac, £15m shareholder’s loan and a further £15m secured on the shareholder’s estate 
  • Shareholder demonstrated on going support and commitment to the club by injecting further loan of £20m after the year-end


Gareth Rogers, Chief Executive Officer, commented: “There are lots of positives to take from these financial results. Recording the first profit and positive net asset position for the first time since administration in 2009 is very pleasing. It shows the health of the club and the Group is strong and the foundations are there to be built on.

“The opening of the Staplewood Campus training ground in November was an important step for the football club. A substantial investment was ploughed into the development and the state-of-the-art facilities will further enhance the staff’s ability to maximise the potential of our first team and Academy players.  

“Our focus remains on developing significant commercial growth which will support our vision to create a sustainable business model. We have a strong business plan in place and we’re already seeing the green shoots of that plan. We believe it is possible to be a well-managed, well-structured football club that is successful both on and off the pitch.”


David Bence, Chief Financial Officer, commented: “The financial statements over the last three years show a total net cash outflow on player trading of £58m and investment in Group infrastructure of £28m (training ground and stadium projects). This cash outflow of £86m has been funded by £14m of total profit after tax over the three-year period, leaving an additional £72m to be effectively funded by an increase in the total Group debt position. 

“The maximum debt position is forecast to peak during the financial year ending June 2015, after which the debt levels will start to reduce over the medium-term.
“The profit from player trading over the summer 2014 transfer window has all been reinvested in transfer fees, player wages and additional football-related costs, in order to support the aspirations of the 2014/15 season. 

“The Group continues to improve its financial strength as evident by the net asset position of £31.8m at the balance sheet date (2013: negative £1.6m, 2012: negative £32.4m).” 

Image: Action Images / Tony O'Brien

Posted by: Kev Howland

RETURN TO LATEST NEWS SECTION

SUBSCRIBE TO THE FCBUSINESS RSS FEED

If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk

To subscribe to our range of football newsletters including news, products and jobs CLICK HERE.

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

Shrewsbury Town’s Safe Standing Crowdfunding Campaign Success

Tue 17th Oct 2017 | Money & Finance

In an historic achievement, Shrewsbury Town Football Club are one step closer to being the first club in England and Wales to introduce safe standing at their Montgomery Waters Meadow stadium,...

Average Premier League Ticket Costs £32

Fri 13th Oct 2017 | Money & Finance

The average price of watching a Premier League match costs £32 according to research released today. The Premier League, working with professional services company EY, has conducted in-depth...

FC Barcelona to become world’s top earning sports club

Thu 12th Oct 2017 | Money & Finance

FC Barcelona announced on Wednesday the financial reports that it will present at the Club’s Ordinary General Assembly on 21 October, when it will share the annual report with member delegates...

Premier League clubs must sell over 2 million tickets to earn back total transfer spend this season

Thu 5th Oct 2017 | Money & Finance

Each year, the summer transfer window is the most highly awaited time of year for football fans, and clubs alike. It's an opportunity to sign top-quality players to heighten the club's chances of...