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LOYALTY PERIOD EXTENDED
29th April 2024
Dundee United’s Annual Accounts for the period to June 2004 confirm that financial recovery is underway with the Operating Loss reduced by £1.2m (42%) to £1.497m and the Net Loss reduced from £2.9m to £1.9m.
Turnover was increased by almost £800k and the Cost of Sales was reduced again, this time from £4.957m to £4.514m. After adjustments for exceptional items, the true cost of sales is calculated at £4.060m, compared to £4.315m in 2003. The players’ wages to turnover ratio was reduced from 78% to 66%, despite paying higher bonuses due to a top six finish in the Premierleague. Admin Expenses showed a marginal increase of £24k to £864k but reflected the overall strict cost control in this area which has seem Admin Expenses reduced from levels of £1.3m in 2002 and £1.4m in 2001.
Dundee United Chairman Eddie Thompson said, “When we announced our results for June 2003, I advised that a three year financial recovery plan was in place and that we projected that losses would be reduced by almost £1m in the first year of this. I am pleased to report that, despite widely acknowledged ongoing financial pressures affecting Scottish football, we have met our first year targets.
While I am pleased to report such progress, there is clearly much more to be done if we are to return the Club to profitability. While the Board of Directors continues to work very hard to control costs, income is very much dependent on the performance of the team. While this has been disappointing this season so far, we nevertheless are still projecting a further reduction in losses for the year to June 2005.
It is important to mention that we enjoy a good relationship with our bankers who remain very supportive and share our confidence in the long term financial stability of the Club.”
