The 95/96 accounts have just been released and it's fair to say that they don't make very reassuring reading...
The financial year 95/96 represents a severe setback from the previous
year. The operating performance was especially disappointing given the
signs of progress during the previous year.
Shareholders will be well aware of the traumatic year on the football
side of the club. Relegation was a bitter pill despite the flourish at
the end of the season. Whatever the reasons for a very poor football
year overall, the fact remains that for much of the season we struggled,
albeit with appalling injury problems.
We saw costs on the playing side increase as we attempted to maintain
the momentum of the encouraging previous season. The lack of short term
return on this in most areas was disappointing, and obviously had an
effect on the revenue generation opportunities. Contrasting the last
third of the season with the first two thirds provides a vivid example
of the difference a degree of success can make.
March saw a major change in the club with Graham Taylor's return and a
number of management changes including a further strengthening of the
youth side of the club. The last part of our season and financial year
was characterised by a renewed sense of purpose but against a backcloth
of two major issues - a reversal of our football fortunes (with the
financial implications of relegation) and a requirement to examine the
financial base of the club.
We have collectively had a tough year which has seen us struggle
commercially, financially and on the field. The changes made during the
season have been important and offer some realistic prospect that our
fundamental problems tackled. Frankly, given our industry position and
our financial position, they have to be addressed urgently and I am
determined that they will be addressed.
In a difficult year it is heartening to be able to thank our
shareholders, supporters and staff for their support and efforts. It is
already quite clear that our early efforts are bearing fruit and I look
forward to a better year 1996/97.
5 February 1997
The figures are as follows...
|Income Analysis 95-96|
|46,000||Transfer fees net|
|361,000||Other football income|
|Cost Analysis 95-96|
|515,000||Admin, finance & tax|
|792,000||Other football expenses|
A simple bit of subtraction ought to tell you that the figures mean that the club made an operating loss (before tax) of
stlg 1,265,000 during 95/96.
* The average player's wage is stlg 43,000
$ The average staff wage is stlg 22,200