DUNDEE UNITED RECORD £1.2M PROFIT FOR 2014

Dundee United’s Annual Accounts for the period to June 2014 reveal a net profit of £1.218m for the year, an increase of some £900k on the prior year and the fourth time the Club has reported a profit in the last five years. This represents a significant improvement when compared to the previous 12 years, a period when the Club recorded only one profitable year. This year’s figures include an exceptional gain relating to the exit of banking arrangements with the Bank of Scotland. Two player transfers were transacted subsequent to the end of the financial year and the profits arising from these sales will be recognised in the financial statements for the year to June 2015, ensuring a further profit in that period. The profit for 2014 was underpinned by a 3% increase in revenues to £5.6m, reflecting improvements in league placing and Scottish Cup income, both of which helped to counter the loss of European participation and the commercial benefits of the Dundee derby matches evident in the prior year figures. Before the application of exceptional items, the accounts reveal that the Club made a gross profit of £991k (2013: £817k) and an operating loss of £114k (2013: £100k) after administrative and other expenses. Interest payments were reduced from £174k to £110k while wages increased to £3.5m from £3.3m, largely due to improved performance payments. As a result of the latter, the wages to turnover ratio increased slightly to 63% from 61%. Chairman Stephen Thompson said, “While pleased to report significant profitability again, the Directors recognise that this most recent financial performance was made possible by the arrangements put in place to buy out the bank debt. “Looking ahead, we expect to record a further profit in the current year as a result of effective player trading, which is an integral part of our strategy to identify, develop and manage young players and provide them with the best opportunities to succeed within the Club and the football sector generally. This aims to achieve footballing success for Dundee United and the opportunity for players to improve and, where appropriate, enhance their earnings elsewhere. “While this mutually beneficial strategy has resulted in a significant increase in trading income and contributes greatly to profitability going forward, we must also ensure that operating costs are kept under strict control.  However, we must also strike a balance between managing costs and delivering a team capable of competing at the highest level in Scottish football and in these respects we consider the period to June 2014 a success”. The Club is currently re-investing a significant part of the profit made in the year to the redevelopment of its Gussie Park community facilities opposite Tannadice. The key feature of this will be a new full size FIFA 2* rated 3G synthetic pitch which will form the centre piece for the Club’s Academy coaching and its wider community activity. It is expected that the new facility will be open in March 2015.