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CLUB STATEMENT: Annual accounts update

23 November 2015

CUFC have reported a pre-tax profit for the latest financial year

Carlisle United have reported a pre-tax profit of £432,490 for the latest financial year.

The annual accounts for the 12-month period up to last July show that the club had a trading loss of £655,596. The overall profit was due to a £1.1 million loan from Story Homes Ltd being written off.

The figures are contained in the financial statement for 2014/15 for Carlisle United AFC (1921) Limited, which runs the club. They will be presented to shareholders at the company's AGM at Brunton Park on 17 December 2015.

Relegation from League One in 2013/14 was the biggest single factor for the trading loss. This meant the club received £362,000 less from the Football League and FA Premier League for being in League Two last season.

Total income dropped £490,000 from £3.55 million to £3.06 million, while total expenditure was reduced by £190,000 to £3.72 million (before interest) from £3.91 million.
The reduced income also included a major reduction in prize money and gate receipts from cup competitions, down from £184,000 to £33,000 because of early exits from all knockout competitions last season. 

Commercial income fell by £43,000, while income from player sales was down by £55,000. These accounts pre-date the sales of Brad Potts and Kyle Dempsey last summer.

Expenditure on player and coaching staff wages rose by £225,000, which included severance payments for manager Graham Kavanagh and his assistant David Irons. Expenditure on non-playing wages dropped by £70,000.

Travel and accommodation expenses went up from £69,000 to £83,000 in a southern-dominated League Two. Agents' payments rose from £15,000 to £32,000.

Attendances actually increased to 4,375 in League Two last season from 4,243 in League One in 2013/14. They continue to rise this season.

The accounts to be released next summer for 2015/16 will include a £93,000 bill to pay in corporation tax on the Story Homes loan. The loan had originally been for £1.7 million but had been reduced to £1.1 million via re-payments and sponsorship deals over several years.

Finance director Suzanne Kidd, who was appointed after the accounts period ended on June 30 this year, said: "The write-off of the Story Homes loan has turned the accounts around and cleared the way for investment in the club, which we are pursuing both locally and internationally.

"A trading loss had been anticipated following relegation and the financial penalties that brings, plus poor cup results and the cost of a change in management, but the board has continued to support the new manager in re-building the squad. 

"And we are taking action to address all the issues that resulted in the trading loss. We have appointed a sales and marketing director and commercial income is growing, while results on the pitch have improved in both the league and cup competitions. Supporters have continued to back the club in increasing numbers, not least through the new Family Zone in the East Stand, and we are extremely grateful for that loyalty during this period.

"We have made a substantial profit in the first quarter of the current financial year, buoyed by the Liverpool cup tie and player sales, which will produce further payments in the future, and we are confident as we go forward in the current financial year."

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