Dundee United reports losses

The Premier League club reported a reduced net loss at £1.89m for the year ended 30 June 2004, down by 34.3% from £2.88m the year. Turnover increased by 23.5% mainly due to improved television money distributed from the Scottish Premier League. Operating expenses fell by 4.5% to £4.92m reflecting management efforts to control costs and there has been a considerable reduction in the club’s administrative function. There is no longer a chief executive position and such functional roles carried out by such a position have been allocated to other directors. The crucial ratio of player wages to turnover fell from 78% in 2003 to 66% in 2004. Businesses owed money when club went into administration are to be paid just two-and-a-half pence in the pound. Letters have been sent to ordinary creditors - who were due more than £1.1 million in total - as part of the Company Voluntary Arrangement (CVA) agreed last May. The final figure was described by the administrator as 'unsurprising' but some small businesses have been left out of pocket. The agreement of a CVA - a technical device for debt restructuring - 11 months ago meant that the club avoided a deduction in league points but denied trade creditors most of the money owed to them by the club. Administrator Tom Burton made it clear there would be 'minimal prospects' of a return to creditors. Creditors listed when the club went into administration ranged from local firms due just a few pounds to football clubs owed six-figure sums.

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