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FINANCIAL HIGHLIGHTS 2015-16

Posted: Tue 20 Dec 2016
Author: ITFC

Club to show a loss of £6.6 million for the year

The statutory accounts ofIpswich Town Football Club Company and its subsidiaries will be filed at Companies House in due course. The financial highlights below are extracted from the Club’s draft consolidation accounts. 

 

The Club is due to report a loss before tax of £6.6m (2014-15 £5.5m profit) for the year. 

 

Profit and loss account


Year ended

Year ended

30 June 2016

30 June 2015

£ 000

£ 000

Turnover

                16,284

         16,414

Cost of sales

(19,673)

(18,977)

 

 

 

 

Gross loss

(3,389)

(2,563)

Administrative expenses

(2,336)

(2,137)

Depreciation and amortisation of players' registrations

(997)

(1,460)

Other operating income

                    157

              153

 

 

 

 

Operating loss

(6,565)

(6,007)

Profit on disposal of players and other assets

                    603

         12,150

 

 

 

 

(Loss)/profit before interest and tax

(5,962)

            6,143

Interest receivable and similar income

                        - 

                   2

Interest payable and similar charges

(679)

(677)

 

 

 

(Loss)/profit  on ordinary activities before tax

(6,641)

           5,468

 

 

 

 

Key performance indicators

 

 

2015-16

2014-15

League Position

7th

6th

Average League Attendance

18,959

19,603

Season Ticket sales

14,017

13,595

Wage Costs

£16.57m

£15.97m

Net Player Trading *

£0.4m

£11.4m

 

*Profit on sale of player registrations less amortisation charge.

 

Turnover Analysis

 

£000s

2015-16

2014-15

Gate receipts

  6,500

  6,500

Commercial income

  4,434

  4,847

Football League including TV & radio fees

  5,350

  5,067

Turnover

16,284

16,414

 

Gate receipts remained at the same level as last season with a lucrative share of gate from Manchester United in the League Cup compensating for the play off semi-final receipts and higher attendance in 2015/16.  Our attendance remained higher than that of the Championship for 2015-16 of 17,578 (2014-15: 17,863).

  

Commercial revenue was lower than 2014-15 due mainly to the outsourcing of the match day public catering operation in 2015/16 whereby the Club received a royalty based on turnover.  Corporate sales and sponsorship were also slightly down on last year, however Merchandise sales exceeded 2014/15 building further on the success of the change of kit supplier to Adidas in 2014.

 

Football League income was higher than last year due to an increase in the basic award distribution.

 

Cost base

 

Direct costs increased from £19.0m in 2014-15 to £19.7m due mainly to player wages and associated agent fees as further funds were invested in the squad to challenge for the play off positions.

 

Administrative expenses increased from £2.1m to £2.3m in the season 2015-16 as a result of a re-measurement of the Football League Pension Deficit (in accordance with Financial Reporting Standard FRS102) and general cost increases.

 


The Club's funding position


The table below shows the analysis of net debt as at 30 June 2016.  ITFC is not in debt to any financial institution.

 

 

As at

 1 July 2015

 

Movement

As at

30 June 2016

 

£ 000s

£ 000s

£ 000s

Bank cash

             987

          (896)

                91

Loan Notes 2026

(38,490)

-

(38,490)

Other group loans (non-interest bearing)

(40,342)

       1,414

(38,928)

Convertible loan notes

(1,297)

          163

(1,134)

Preference shares

(8,052)

-

(8,052)

Net debt

(87,194)

          681

(86,513)