Saints reap Premier League riches but count cost of Staplewood and transfer spending (From Basingstoke Gazette)
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Saints reap Premier League riches but count cost of Staplewood and transfer spending
The impact of Premier League promotion has been revealed by the latest set of Saints accounts – but there are also warnings in amongst the figures.
Documents filed today with Companies House reveal that the period the accounts cover – 2012/13, Saints’ first back in the top flight after promotion with Nicola Cortese at the helm as executive chairman – saw turnover increase by 213 per cent to £71.8m.
Broadcasting income (£46.9m), match day income (£16.9m) and commercial income (£6.7m) all increased as expected, while there was also good news as club’s wage to turnover ratio reduced to 65 per cent from 102 per cent.
However, there has been a significant development in the upgrading of the Staplewood training ground facility, which is now expected to cost an eye watering £30m, around double what was initially understood to have been slated for the project.
Also the club’s lavish spending in the transfer market has left them with £27m still to pay in fees with £22m due in 2014/15 alone.
Saints remain buoyant about future growth opportunities, as underlined by chairman Ralph Krueger, but the new board have struck a cautionary note over the finances they have inherited.
Profit before player trading increased to £8.7m but with an overall net loss of £7.1m. Player trading included a one-off exceptional cost of a £2.1m impairment charge to write off the carrying value of certain players.
The loss before interest and tax has reduced to £6.6m while total group wages, including player wages, increased to £47.1m in 2013 from £28.7m in 2012.
There was also an explanation for the loan facility with British Virgin Islands company Vibrac. A £5.6m loan was taken out in September 2012 to enable the club to take advantage of a lower transfer instalment payment by paying earlier, and so reduce overall cash outflows and liabilities.
The figures also confirm that the Liebherrs have invested £52.7m since buying Saints with £37.9m of this having been converted into equity shares.
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