6:02pm Thursday 24th July 2008
By Gordon Simpson
SAINTS have this morning announced the club is expected to make a pre-tax loss of about £5m for the financial year.
The board of parent company Southampton Leisure Holdings provided the Stock Exchange with a trading update, prior to releasing its financial results for the year ending June 30, 2008.
Saints' share price fell from 30p to 27p this morning in the wake of the announcement, a decline of ten per cent.
Finance director David Jones said: "The Company has seen a number of management changes during the financial year and with the preliminary announcement of the year's results to 30 June 2008 not due for 10 to 12 weeks, we thought it would be appropriate to provide all stakeholders with an indication of the financial results for the year just completed.
Click here for the full statement
"With the loss of the parachute payment from the Premier League and reduced ticket and commercial income, revenue for the year is expected to be around £14m with a loss before tax of around £5m."
The update said the results would "show an increase in the level of borrowings, which has necessitated extensive discussions with the company's bank and loan note hold."
However, it said both were remaining supportive of the current board's approach to the future.
PLC board chairman Rupert Lowe said: "The directors are aware that this is clearly not sustainable and are concentrating on reducing costs, however the directors remain hopeful about the prospects for the forthcoming season.
"Jan Poortvliet and Mark Wotte are very excited about what will be a young dynamic team determined to play fast and attractive football.
Watch the interview with Rupert Lowe - click here
"I hope everyone involved with the club will get behind Jan, Mark and the team."
Football club chairman Michael Wilde added: "This close season has proved to be a difficult time for the new board, with many major decisions needing to be taken both on the football and operating sides of the business.
"It has been important to act swiftly to arrest the financial decline of the company and we believe we have made major strides in this direction over the period since regaining control.
"Significantly, the board have also committed itself to the adoption of a new direction for the football club, which has been designed to stabilise, sustain and protect its long-term financial future whilst still allowing the club to remain competitive in football terms.
"We firmly believe that the future rests with our talented youngsters who, supported by experienced role models, will help create a team ultimately capable of competing at the highest levels.
"Management, coaching and playing staff are all fully supportive of the board's new approach and we are all looking forward to the new season with renewed enthusiasm and pride."
Southampton Leisure Holdings expects to release its audited accounts in October.
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