Leicester City Post Record Pre-Tax Profits
Thu 3rd Mar 2016 | Money & Finance
Leicester City’s fine run in the Premier League has been backed by a stellar performance off the pitch as the club posts record pre-tax profits of over £26m.
The Premier League’s table toppers, Leicester City have today announced its financial results posting a record pre-tax profit of £26.4m for the year ending 31 May 2015.
The much improved financial performance follows the Foxes’ first season in the Premier League for a decade in which they narrowly avoided relegation at the end of the 2014/15 season.
A return to the Premier League drove exponential revenue growth for the Club, with total income rising to £104.4m (£31.2m in 2014).
On-pitch success led to an increase in average attendances to 31,693 (2014: 25,003), which compared very favourably with other Premier League clubs and represented 98.5% of capacity being utilised. Match receipts subsequently grew to £10.6m (£6.9m in 2014).
The Club’s strategy for the summer 2014 transfer window was based on the retention of existing key players, several of whom signed new contracts, and the investment of an additional £25m in playing squad recruitment.
The increase in the size of the squad and higher levels of remuneration payable in the Premier League and under new contracts led to staff costs increasing to £57m (£36.3m in 2014).
The conversion of the entire outstanding shareholder loans into ordinary shares in November 2013 has led to interest charges for the year decreasing to £1.6m (2014: £4.2m). Remaining interest charges are mainly due to residual interest relating to the purchase of King Power Stadium in March 2013.
Speaking of the results, Chief Executive, Susan Whelan, said: “Our long-term goals for Leicester City have always been to ensure success, stability and sustainability for the Club.
“Premier League football, and the on-and-off-pitch benefits that are associated with it, are obviously central to that plan, which made prudent investment essential to ensure top-flight status was achieved and then retained.
“At a time when the Club is competing in the upper reaches of the Premier League table, it has been very important for us to consolidate the firm foundations we have put in place over the last five seasons and to ensure that we have the appropriate structures in place for the continued growth and long term development of the Club.
“This has put Leicester City in a very strong position to move forward, and our commitment to delivering success on a continuous basis is foremost in our planning.
“We know what the Club is capable of, and we will work with diligence and purpose to ensure that Leicester City will achieve success, stability and be a proud representative of its community and city.
“The Club continues to benefit from the remarkable support of our owners, Chairman Vichai Srivaddhanaprabha and Vice Chairman Aiyawatt Srivaddhanaprabha, and the King Power Group of Companies.
“The wonderful way our supporters and the people of the city have embraced their vision and welcomed them as part of their community has strengthened both their passion for the Club and their determination for it to succeed.”
Posted by: Aaron Gourley
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