Wolverhampton Wanderers have posted a profit of over £5m in their latest accounts.
The club’s headline financial information shows a pre-tax profit of £5.831m for the year ending 31st May 2016 compared to the equivalent figure to May 2015 of £731,000.
Wolves’ finished 14th in the EFL Sky Bet Championship before owner Steve Morgan sold the club to Chinese consortium, Fosun Group in July 2016.
Profit growth was attributed to the £7.4m increase in the profit on the sale of players’ registrations – namely the transfers of Richard Stearman to Fulham in the summer of 2015 and of Benik Afobe to AFC Bournemouth in January 2016.
Although the pre-tax profit again benefitted from the release of part of the exceptional onerous contract provision made in 2013, after the relegation to League One, this figure in the year under review was only £2.6m compared to £6.7m in the year to May 2015.
Turnover for the year rose to £27.25m from £26.4m. This was primarily due to the increased central distribution relating to the new television contract and an increase in match facility fees received.
Whilst the average home league attendance fell to 20,157 the net income shortfall produced (£250,000) was mostly offset by an increase in commercial income (£200,000).
The year to May 2016 will be the last in which Wolves receives a parachute payment in relation to their Premier League membership that ended in May 2012.
The receipt in the year to May 2016 was £10.8 million. Part of this shortfall will be offset by qualifying for an increased EFL (English Football League) distribution in the year to May 2017.
The Balance Sheet at the end of May 2016 remained strong with net assets of £55 million and net current liabilities little changed from the previous year end at less than £2 million.
The development of the facilities at the club’s Compton Park Training Ground continued and in the year under review floodlights were installed and pitch improvements made.
Image: Action Images / Ed Sykes