Bolton Wanderers reports smaller profit

Burnden Leisure plc, the parent company of English Premier League club Bolton Wanderers, has reported a pre-tax profit of GBP 300,000 as of June 30, 2006, compared to a pre-tax profit of GBP 3.86 million the year before.

The smaller profit comes from a cost increase because the club competed in European matches for the first time in its existence.

Group turnover, reflecting growth, was up 3 percent to GBP 54.8 million compared to GBP 53.1 million in 2005.

Football turnover also increased 3 percent to GBP 45.9 million compared to GBP 44.5 million in 2005. This increase was from gate receipts from UEFA Cup and domestic cup matches, along with broadcasting profits from the club's eighth place finish in the Premier League and an increase of live television appearances.

Hospitality income grew 9 percent to GBP 2.5 million, while sponsorships and advertising rose by 13 percent to GBP 3.3 million.

Merchandising and licensing sales increased 2 percent to gain GBP 1.7 million, this partly due to sales of two new shirts.

The company's growing events business, which included two concerts by Coldplay at the arena, an "Evening with Donny Osmond," and "Player of the Year" at the Premier Suite, increased profits by 21 percent to GBP 2.1 million.

Operating costs were up almost 12 percent to GBP 37.6 million reflecting the need for improvements in the playing squad.

The De Vere Whites Hotel, a major banquet and conference center that is located in the Reebok Stadium's Woodford Group Stand, grew profits of 3 percent to GBP 8.8 million.

According to a club statement, investment is a key ingredient and it has continued to put its money into training, medical and sports science facilities at Euxton and Reebok Stadium.

The club has also completed a major renovation of the Superstore at Reebok Stadium, creating an enhanced retail environment for followers.

"It is again pleasing to report continued progress across the business. During the past few years, we have all enjoyed the success of the football team and, at the same time, have been able to develop our business in line with our strategic goals," said Allan Duckworth, Chief Executive of Burnden Leisure.

"Investment in people and infrastructure, however, will remain our priority, along with evolving our key strategic partnerships.

"During the past year, we secured tenure of a forty-acre site less than a mile from the Reebok Stadium, which we plan to develop into a new Academy for the Football Club. This project fully reflects our long-term commitment to youth development as a key element in strategy for Football. Our top priority is to develop Bolton Wanderers into an established and successful Premiership Club, but it is important to develop our commercial and other business activities as well, in order to provide the means to achieve our football objectives."

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.