Bluedell 5,356 Posted February 17, 2010 Share Posted February 17, 2010 (edited) Summary The club made a profit of �£13.1 million in the first 6 months to 31st December 2009. Sounds good, but is it really? Yes, on this occasion, itâ��s bloody good. If we compare this yearâ��s operating profit (thatâ��s the profit before accounting for the sale of players and interest) then it has increased by an incredible �£22 million. Turnover An increase in turnover of �£17.7 million, due to our qualification in the Champions League accounted for most of this increase. This increase is at the upper end of expectations, and shows how important qualification was to the club. The commonly held view that the Champions League being worth �£10m is shown to be a vast under-estimate, and shows why a league win is so vital again this season. Take out the Champions League income and we would be looking at a loss of over �£4 million for the half year, and perhaps a loss of �£8 million for the full year, which shows that we have still a long way to go before we are in the position of breaking even without European football. Costs Operating Costs are down by �£3.6 million. A large part of this is due to lower wages being paid and fewer players but there will also be savings in other areas. Costs have been reduced by over �£138,000 per week. Amortisation Amortisation is the write-off of the cost of buying players, which is done over the period of their contracts and it has fallen from �£4.4 million to �£3.7 million. The second half of the year should see if fall to around �£3.2 million following the sale of Mendes. Given that we have not been buying any players, it would be expected that future yearâ��s charges would be even lower. Profit on the sale of players Last year we made profits of �£6.2 million, principally on the sale of Carlos Cuellar. We have not made the same level of profit on our sales since 1st July 2009 and we are showing a profit of �£678,000 presumably mainly on the sale of Barry Ferguson and Charlie Adam. However we might have expected it to be slightly higher but it is surprising that it is this low, as the sales of Ferguson and Adam were at reportedly higher sums, with presumably very little value in the balance sheet. Interest Interest payable to the bank is �£677,000, which is more than half of what it was in the previous year, primarily due to lower interest rates. Second half of the year It should be noted that all the Champions League income has been accounted for in these 6 monthsâ�� results, irrespective of when the cash is received from UEFA, and therefore the results in the second half of the year will be worse. It appears that Pedro Mendes was sold for around the value that the club had him in the books so there should be little profit or loss on the deal. The second half of the season could see the club making a loss of around �£4.5 million (depending on the level of bonuses paid out for hopefully winning a few trophies!), so we could end up with profit of �£8.5 million for the full year. The debt Unfortunately the interim accounts do not show a balance sheet or the debt as it is not required to under the reporting rules that the club operates under, so we are not told where the debt currently stands. Although we have accounted for all the Champions League income in our profit, it is understood that some of the cash is not received until the end of the season and we get a large proportion of the season ticket money before the end of the last financial year, and there are other issues which means that debt does not move in line with our profit, so it would be wrong to assume that our debt has fallen by �£13 million. I would not be surprised if our current level of debt had not fallen. Conclusion A slightly better set of results than I certainly expected and it is good to see that we are heading in the right direction, but they also highlight our continued reliance of Champions League football, which will become harder to qualify for in future years given the lowering of our co-efficient so a sense of caution about our future is still required by everyone. Edited February 17, 2010 by Bluedell 0 Quote Link to post Share on other sites More sharing options...
maineflyer 0 Posted February 17, 2010 Share Posted February 17, 2010 Is there any sign of comparative income other than CL - ticket sales, merchandising, etc? 0 Quote Link to post Share on other sites More sharing options...
OnlyOneAmoruso 0 Posted February 17, 2010 Share Posted February 17, 2010 Bluedell - Aren't season ticket sales taken into account in June accounts? Are you expecting a �£4.5m loss even with that? 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,356 Posted February 17, 2010 Author Share Posted February 17, 2010 Is there any sign of comparative income other than CL - ticket sales, merchandising, etc? Absolutely no analysis of income or costs are given in the interim accounts. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,356 Posted February 17, 2010 Author Share Posted February 17, 2010 (edited) Bluedell - Aren't season ticket sales taken into account in June accounts? Are you expecting a �£4.5m loss even with that? The season ticket cash is accounted for evenly thoughout the season, based on home games. I haven't sat down to work out how many home games we have had compared to last year, but if we take in �£20m in season ticket sales for 20 hiome games and we have played 10 of them last year then we would account for �£10m of the income. Edit: And a thanks to Boss for pointing out my initial estimate of the debt was on the low side. Edited February 17, 2010 by Bluedell 0 Quote Link to post Share on other sites More sharing options...
maineflyer 0 Posted February 17, 2010 Share Posted February 17, 2010 Absolutely no analysis of income or costs are given in the interim accounts. Thanks. I thought it would be limited but can't seem to get the link to work. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,356 Posted February 17, 2010 Author Share Posted February 17, 2010 Thanks. I thought it would be limited but can't seem to get the link to work. Use this instead. http://www.plusmarketsgroup.com/PLUS_news_story.shtml?NewsID=1655971&ISIN=GB0007237380/GBX/PLUS-exn 0 Quote Link to post Share on other sites More sharing options...
26th of foot 5,859 Posted February 17, 2010 Share Posted February 17, 2010 I have an idea to bring this situation to a quick and satisfactory conclusion. The couple that won �£56million in the Euro-Lottery, why don't we ask them for a tap? 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,356 Posted February 17, 2010 Author Share Posted February 17, 2010 I have an idea to bring this situation to a quick and satisfactory conclusion. The couple that won �£56million in the Euro-Lottery, why don't we ask them for a tap? Perhaps they went to the wrong school? 0 Quote Link to post Share on other sites More sharing options...
maineflyer 0 Posted February 17, 2010 Share Posted February 17, 2010 Use this instead. http://www.plusmarketsgroup.com/PLUS_news_story.shtml?NewsID=1655971&ISIN=GB0007237380/GBX/PLUS-exn Cheers BD - I see it now. 0 Quote Link to post Share on other sites More sharing options...
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