Cup Run Boost To Maidstone Coffers
Tue 29th Sep 2015 | Money & Finance
Maidstone United’s third season at the Gallagher Stadium has seen turnover rise to over £1.3m.
Maidstone United Holdings Ltd, which groups together all the club's business activities, reported a turnover of £1,360,000 – up from £1,260,000 in the previous period.
However, gross profit on an EBITDA basis (ignoring tax, interest and amortisation) was £245,000, slightly down on the £289,000 achieved in the previous period.
The increase in turnover was principally due to one-off additional income from the FA Cup run, which included two televised matches.
Player wages were higher than in the previous period as the club sought promotion to the National League South, knowing this could bring significant grants for stadium improvements. However, when measured as a percentage of turnover, playing wages were less than 20%.
All spare cash flow from profits and from reserves has been reinvested in the extension project, which has achieved the 3,000 capacity necessary for the club to be promoted into National League South.
The need to keep expanding the stadium to comply with league requirements is likely to be an on-going challenge as the club seeks to fulfil its medium-term ambition to return to the Football League.
Club co-owner Oliver Ash said of the results: “We are pleased with the results of our third season's trading. We will continue to be prudent in order to ensure the club is secure and sustainable.
“We see in these figures further evidence of the success of the 3G model in building an attractive football and social facility, which is appreciated by thousands of local people.
“We now need to build up cash resources even faster if we are to develop the stadium further. It will be a hugely expensive project.
“In particular we now need more local companies to come on board together with our existing business partners and share the benefits from the positive image we now have as a club and business.”
Fellow co-owner Terry Casey added: “We are very fortunate to have a growing supporter base, with plenty of enthusiastic youngsters, who feel a real attachment to their club.
“This is directly due to the 3G effect, enabling them to participate fully at the stadium.
“The growth is evident from the season ticket sales which have exceeded 1,000 and the attendances for league matches which are up more than 10% on last season.
“With the fifth anniversary of our takeover approaching, we can look back with satisfaction at what has been achieved and the sound base that we have to move this club on to the next level.”
Posted by: Aaron Gourley
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