St Mary’s Football Group Limited has today published its audited annual results for the year ending June 30th 2014.
A profit on ordinary activities after taxation was recorded at £33.4m. The accounts show the first full-year profit and positive balance sheet net assets for the Group for the first time since administration in 2009.
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).”