Tottenham Hotspur report profits

The Premier League club has reported a profit of £1m for the six months ended 31 December 2004. Turnover reported £32.9m a slight decreased last from the £33.2m of the comparable period the year before. Operating profit before player trading was £5m, a margin of 15% and an increase of 51.7% on the period before. Match day revenues were £0.7m lower and broadcasting revenue decreased by £0.5m compared to the previous year reflecting the lower value in the first year of the new Premier League contract. Merchandising revenue increased by 21% due to the launch of the new home kit in July 2004 and improved results on pitch. The improvement in operating profit was largely due to a £2m fall in operating expenses to £27.9m which was due to the decreased number of home cup games in the period and does not reflect the increased salary costs that will occur as a result of new signings by the club. Amortization of players increased by 7.3% to £5.9m, but this increase was more than offset by a profit of £2.2m on player trading compared to a loss of £3.0m the year before. In consequence of its activities over the six months, the club turned a loss per share of 2.9p in the six months ended 31 December 2003 into earnings per share of 0.6p for the six months ended 31 December 2004. There was an improvement in club’s balance sheet with net debt at the club falling to £9.3m at 31 December 2004 compared to £17.1m at the same date in 2003. The improvement was due to £15m raised from shareholders through a Convertible Redeemable Preference Share issue. Daniel Levy, chairman, said, “The results show an improved operating profit, which reflects the club’s ability to generate cash . This, coupled with the new funds raised last year, enabled us to invest in the squad and work towards attaining the right mix of players for the first team squad, the reserves and the academy.”

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