FIXTURE INFORMATION | DUNDEE UNITED B V DUNFERMLINE ATHLETIC B
26th November 2024
Dundee United's Annual Accounts for the period to June 2013 reveal a net profit of £319k for the year, underpinned by a 7% increase in turnover and significant reductions in wage costs and administration expenditure. The accounts also show a £325k reduction in the bank term loan.
Despite a challenging financial environment, turnover was increased by £349k to £5.390m and strict cost controls generated savings of £144k (13%) in administration costs. The Club also made significant progress in reducing overall wage costs, with a 15% reduction on the prior year, from £3.823m to £3.262m. This resulted in the percentage of wages to turnover ratio dropping from 76% to 61%. This is in line with the forecast made at the publication of the last annual accounts.
During the year, the Club made a profit of £595k from the transfer of player registrations. At the end of the year the term loan had been reduced to £3.605m, from a peak of over £6m, with a further reduction scheduled to be made in 2014. Bank interest paid was reduced from £206k to £175k.
Chairman Stephen Thompson said, "Scottish football continues to face challenging economic conditions and this is not anticipated to ease in the near future. This is why it is so vitally important that we continue to align the cost base of the Club to its available revenue streams. We also consider it equally important to continue to invest in our youth system as the development of young talent is considered crucial to our long term strategy and sustainability. It is particularly pleasing to note that both of these key strategic objectives have directly contributed to the Club returning a healthy profit for the second year in a row (and for the fourth year in five) and that, just as importantly, the number of young players being developed and introduced into the first team has increased significantly in the last year. This has led to some vibrant performances this season - and a record number of half season tickets sold - and provides optimism for further financial improvement in the future."
Since the 2013 Accounts were completed, the Club reached an agreement with its bankers to close off its debt position. The negotiated terms included a payment of £1.45m to settle all borrowings and accruals due to the Bank at the date of the agreement, with any further payments contingent on the receipt of any transfer proceeds received up until 31 August 2015, during which time the Bank will be entitled to a reducing percentage share of these proceeds. The total amount due to the bank at the date of entering the agreement was £4.7m. The potential full payment under the terms of the agreement will be between £1.7m and £4.1m, depending on the Club's performance in the transfer market.
The Chairman added, "A considerable amount of work went into securing this financial restructuring agreement with the Bank; an agreement which, in our opinion, might not have been possible had we not made such significant progress in recent years and had not been able to demonstrate that there was scope for further contingent payments in the arrangement. These of course may never arise, but the fact remains that the receipt of transfer fees is a strategic objective of the Club and underpins the significant investment we make in youth. Very importantly however, the Club now holds total control over any such transfer negotiations.
"Related to this restructuring will be a greater focus on our community involvement and, subject to the necessary permissions, we intend to transfer our interest in our all weather facility at Gussie Park to UNITED for ALL Community Trust, a registered charity, to provide improved recreational facilities for the local community. Building on the work we have undertaken to date, this will allow greater inclusion of all areas of the local community to promote enhanced health and wellbeing, through participation in sport and related activities."
Despite a challenging financial environment, turnover was increased by £349k to £5.390m and strict cost controls generated savings of £144k (13%) in administration costs. The Club also made significant progress in reducing overall wage costs, with a 15% reduction on the prior year, from £3.823m to £3.262m. This resulted in the percentage of wages to turnover ratio dropping from 76% to 61%. This is in line with the forecast made at the publication of the last annual accounts.
During the year, the Club made a profit of £595k from the transfer of player registrations. At the end of the year the term loan had been reduced to £3.605m, from a peak of over £6m, with a further reduction scheduled to be made in 2014. Bank interest paid was reduced from £206k to £175k.
Chairman Stephen Thompson said, "Scottish football continues to face challenging economic conditions and this is not anticipated to ease in the near future. This is why it is so vitally important that we continue to align the cost base of the Club to its available revenue streams. We also consider it equally important to continue to invest in our youth system as the development of young talent is considered crucial to our long term strategy and sustainability. It is particularly pleasing to note that both of these key strategic objectives have directly contributed to the Club returning a healthy profit for the second year in a row (and for the fourth year in five) and that, just as importantly, the number of young players being developed and introduced into the first team has increased significantly in the last year. This has led to some vibrant performances this season - and a record number of half season tickets sold - and provides optimism for further financial improvement in the future."
Since the 2013 Accounts were completed, the Club reached an agreement with its bankers to close off its debt position. The negotiated terms included a payment of £1.45m to settle all borrowings and accruals due to the Bank at the date of the agreement, with any further payments contingent on the receipt of any transfer proceeds received up until 31 August 2015, during which time the Bank will be entitled to a reducing percentage share of these proceeds. The total amount due to the bank at the date of entering the agreement was £4.7m. The potential full payment under the terms of the agreement will be between £1.7m and £4.1m, depending on the Club's performance in the transfer market.
The Chairman added, "A considerable amount of work went into securing this financial restructuring agreement with the Bank; an agreement which, in our opinion, might not have been possible had we not made such significant progress in recent years and had not been able to demonstrate that there was scope for further contingent payments in the arrangement. These of course may never arise, but the fact remains that the receipt of transfer fees is a strategic objective of the Club and underpins the significant investment we make in youth. Very importantly however, the Club now holds total control over any such transfer negotiations.
"Related to this restructuring will be a greater focus on our community involvement and, subject to the necessary permissions, we intend to transfer our interest in our all weather facility at Gussie Park to UNITED for ALL Community Trust, a registered charity, to provide improved recreational facilities for the local community. Building on the work we have undertaken to date, this will allow greater inclusion of all areas of the local community to promote enhanced health and wellbeing, through participation in sport and related activities."
