First Team
Match Report | Rangers 1-1 Dundee United
23rd November 2024
Dundee United's Annual Accounts for the period to June 2008 reveal a net profit of £834k - an improvement of £1.8m on the prior year and the first time the Club has recorded a profit since 1997. The figures confirm the continuing improvement in the Club's financial position and represent a massive improvement of £3.7m on the equivalent figures going back to 2003.
The improvement in profitability resulted from an increase in turnover, which included improved revenues in the SPL and the CIS Cup, and from transfer activity. Gains on player sales netted some £897k, while reaching the CIS Cup Final contributed around £400k (net) after bonuses and expenses. A top six finish in the SPL resulted in a much improved distribution of place money and higher gate receipts.
Net administration costs remained under control at £677k (2007- £657k), while wages rose to £3.38m (2007 - £2.58m) reflecting increased performance related football payments. The wages to turnover ratio was 57% (2007 - 64%).
Bank borrowing at the end of the year was drastically reduced by a total of £1.4m from the previous year figures. During the year a permanent reduction of £500k was made to the bank term loan, reducing it from £6m to £5.5m. As at the end of June, the bank overdraft was just £115k compared with £1.02m as at the same date in the prior year figures, making a total reduction of some £1.4m in borrowings to the Bank at the year end. (Since the end of the year a further reduction has been made to the term loan, and both the revised term loan facility and overdraft facility have been renewed by the Bank)
Chairman Stephen Thompson said, "We are delighted to announce these results which, as projected, show such considerable improvement on recent years. We are particularly pleased that this increase in profitability has allowed us to make permanent reductions in our bank term lending and to reduce our reliance on overdraft facilities at the end of the year. While the extent of our overdraft will, of course, fluctuate throughout the year as a result of normal cash flow issues, it helps greatly to start from such a low position at the beginning of the year.
"While undoubted and considerable progress has been made in the Club's financial position, I would caution that the financial climate for Scottish football is still a very difficult and challenging one. We do not expect that the current year to June 2009 will reflect the exceptional results seen in these figures but nevertheless, against a difficult and changing financial landscape, we hope to continue to reduce bank borrowings and ensure that the Club remains sustainable. It is worth noting that the Thompson family did not have to subsidise expenditure during the year to June 2008 and, at this stage, there is no requirement to do so in the current year. Nevertheless, the family has renewed its pledge to provide financial support to the Club should it be necessary."
The improvement in profitability resulted from an increase in turnover, which included improved revenues in the SPL and the CIS Cup, and from transfer activity. Gains on player sales netted some £897k, while reaching the CIS Cup Final contributed around £400k (net) after bonuses and expenses. A top six finish in the SPL resulted in a much improved distribution of place money and higher gate receipts.
Net administration costs remained under control at £677k (2007- £657k), while wages rose to £3.38m (2007 - £2.58m) reflecting increased performance related football payments. The wages to turnover ratio was 57% (2007 - 64%).
Bank borrowing at the end of the year was drastically reduced by a total of £1.4m from the previous year figures. During the year a permanent reduction of £500k was made to the bank term loan, reducing it from £6m to £5.5m. As at the end of June, the bank overdraft was just £115k compared with £1.02m as at the same date in the prior year figures, making a total reduction of some £1.4m in borrowings to the Bank at the year end. (Since the end of the year a further reduction has been made to the term loan, and both the revised term loan facility and overdraft facility have been renewed by the Bank)
Chairman Stephen Thompson said, "We are delighted to announce these results which, as projected, show such considerable improvement on recent years. We are particularly pleased that this increase in profitability has allowed us to make permanent reductions in our bank term lending and to reduce our reliance on overdraft facilities at the end of the year. While the extent of our overdraft will, of course, fluctuate throughout the year as a result of normal cash flow issues, it helps greatly to start from such a low position at the beginning of the year.
"While undoubted and considerable progress has been made in the Club's financial position, I would caution that the financial climate for Scottish football is still a very difficult and challenging one. We do not expect that the current year to June 2009 will reflect the exceptional results seen in these figures but nevertheless, against a difficult and changing financial landscape, we hope to continue to reduce bank borrowings and ensure that the Club remains sustainable. It is worth noting that the Thompson family did not have to subsidise expenditure during the year to June 2008 and, at this stage, there is no requirement to do so in the current year. Nevertheless, the family has renewed its pledge to provide financial support to the Club should it be necessary."
