Wolves post pre-tax profit of £9.1m
Fri 25th Feb 2011 | Money & Finance
Wolverhampton Wanderers Football Club have released their financial information for the year ending 31st May 2010.
The results show the Midlands club generated a pre-tax profit for the year, after player trading and net interest, of £9.1m. This is compared to a loss of £4.9m in the previous financial year.
Turnover for the reporting period finished at £60.6m compared to £18.3m during the previous Championship Season. This uplift in turnover can be primarily attributed to central Premier League deals, including television rights and sponsorship, and Wolves' own commercial activity, including the enhanced value of the main sponsorship agreement with Sportingbet.com.
Additional ticket revenues from increased League match attendances (an average of 28,366 compared to the previous year's Championship average of 24,153) and good receipts from the Carling Cup contributed towards a further uplift in turnover.
Operating costs were higher than in the previous year due to an uplift in the player wage bill, as well as increased trading costs in line with higher commercial sales.
Jez Moxey, Wolves Chief Executive, said: "We are pleased to announce our annual results which, as in previous years, we shared first with our fans at an official Fans' Parliament meeting. It was a huge success for our young, developing team to finish in 15th place in the Premier League in our first season back in the top flight.
“I'd like to thank Mick, the players and everyone connected with the Club for all their hard work behind the scenes, which underpinned this achievement. I'd also like to pay tribute to the fans for their support, both home and away. They embraced the underdog spirit and played a major role in our top flight survival.
"Our financial results reflect the successful balance the Club struck between sound financial management and continuing investment in players and off the pitch infrastructure.
“We have said many times before that we will not be irresponsible and fall into the dangerous trap of over stretching the Club. Chairman, Steve Morgan, has outlined a long-term vision for the Club's overall development and has clearly stated that this won't be at the expense of sensible investment in new players.
“However, during the year under review, the Club broke its transfer record to sign Kevin Doyle, along with a number of other International players, which we believe was good business.
"Developing home grown talent remains a key part of our strategy and the number of internationals within our Academy ranks is an indication of the quality of players coming through. However, as always, it will be a challenge for these players to break through into a team striving to maintain its place in, arguably, the best football league in the world.
"A few weeks ago, we made the exciting announcement that the Club will begin redevelopment of Molineux Stadium at the end of this season, beginning with the Stan Cullis Stand.
“This is part of our long-term vision of improving the quality of the match day experience, bringing fans closer to the pitch, introducing new facilities and, in time, increasing capacity. We intend to fund phase one of the redevelopment out of our existing cash flow, meaning that our financial stability will remain strong.”
The results showed the Club's holding company, (WW (1990) Ltd) had a very strong balance sheet with net assets totalling £70.5m. The figure reflecting the capital investment made by Steve Morgan on acquiring the business, as well as the value of the property assets of Molineux Stadium, Aldersley Arena and the Sir Jack Hayward Training Ground at Compton Park.
The clubs strong financial performance has enabled the club to drive through with its plans to redevelop the Molineux Stadium.
“The directors remain totally committed to a strategically important medium to long term redevelopment project for Molineux Stadium,” read a club statement.
“The Stadium will be rebuilt in phases starting at the end of season 2010/11 with the redevelopment of the Stan Cullis (North) Stand.
“A new two tier stand with 7,700 seats, new corporate facilities, a megastore, museum, family information centre and improved disabled facilities will be built in its place.
“The new stand will open for the start of the 2012/13 season but the asset will be capitalised as constructed. It is expected that the value generated from the much improved facilities and capacity will be in excess of that generated by the existing stand.
“When the redevelopment project of the Stadium is finished it will enhance the asset value of the business, increase seating capacity, bring the stands much closer to the pitch to enhance match day atmosphere and provide first class amenities for supporters.
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