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CLUB: Financial results for 2015/16

31 March 2017

Accounts for year ended 30 June 2016 show profit of £40,000

The audited accounts approved by the directors on 28 March 2016 show Carlisle United Association Football Club (1921) Limited achieved a profit after tax of £40,434 for the year ended 30 June 2016. 

This Company carries out the trading activities of Carlisle United and holds the EFL share.  The accounts have been filed at Companies House.

The year showed an improved financial performance, an improved ‘on field’ performance, but was also marked by the major impact of another devastating flood, in December 2015, which stopped normal trading for some seven weeks.

An operating profit of £52,881 (including increased depreciation) was earned in the year. This was mainly due to increased ‘football fortune’, firstly from cup runs in both the EFL League Cup and FA Cup as we progressed to round three and round four respectively, and also income from player sales.

As a result, total turnover increased by £1.35m to £4.41m (2014/15: £3.06m) as commercial income, ticket sales, TV and prize money all went up, though associated costs also increased.  We are pleased to report recurring turnover, excluding football fortune, also increased by 10%. 

In addition, and importantly, the overall recurring financial contribution made by the Club’s business activities increased.  It is this that determines, in large part, the ongoing level of funds available for spending on player costs and other football expenses which the Club can afford without relying on cup runs, player sales or other one-off funding. It is a key objective to grow this to improve the viability and sustainability of the Club.

The football fortune and improved recurring financial contribution together allowed us to increase football spending in 2015/16 on wages and salaries, player loan fees, travel and accommodation far beyond what was otherwise affordable from the Club’s own resources. In 15/16, EFL data shows the Club spent 96.1% of its available salary cap and ranked 8th overall in L2 for total spending on player costs.

The floods of early December 2015 completely stopped the business while the administration offices, equipment, pitch and some hospitality areas were submerged and, as a result, we were unable to carry on the with the business from our home at Brunton Park. Three home games were played in Preston, Blackburn and Blackpool and we were very grateful for the help and support of these football clubs.

The Football side of the Club operated from our training facility at Creighton Rugby Club and the administration, sales and management operated out of one room in the Pioneer Foodservice offices, while the ticketing and retail operations moved to a unit in the Cumberland Building Society, which was generously donated. We are extremely grateful for all the help and assistance offered to the Club from local businesses and supporters during that time.

The effort, dedication and support of all staff was fantastic as they pulled the Club through some of its ‘darkest hours’. With everyone working together, and with the support of fans, we were able to relay the pitch and provide playing facilities to get the business moving again by Saturday 23 January 2016, just seven weeks later, which was an unbelievable achievement. Thank you to everyone.

The Club’s primary books and records suffered severe damage in the flood. This meant a reconstruction was required which has taken some time and has been both difficult and time consuming for our finance team. This naturally delayed the accounts preparation, audit and filing.

It took another nine months to complete full restoration work at the stadium and, in doing so, we have moved administration, ticketing and accounting operations to a first floor location to give some flood resilience for the future.  As a result of the changes arising from the flood we have revalued the Club’s properties. We are pleased to report this revaluation resulted in an increase in the value of freehold property of £1.62m.

As a result of the trading and revaluation, the net assets increased to £5.22m (2014/15: £3.56m). The amounts due to directors for historic loans provided to the company remain unchanged and the amount due to Pioneer Foodservice has reduced at the same rate as in previous years.

Notices for the AGM of the Company will be issued shortly with a date of 31 May 2017 provisionally set aside.

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