Saints finances statement in full

4:00pm Thursday 24th July 2008

Comments (13)   Have your say »

SAINTS chairman Rupert Lowe has today revealed that the club's finances for the year ending June 2008 are "radically worse" than they were 12 months earlier.

Saints this morning issued a stock market announcement stating they were expecting to announce a £5m loss when the audited accounts are released in the autumn.

The club followed that up by handing out a further, longer statement to media at their Staplewood training ground this afternoon.

The statement read: "The Board of Southampton Leisure Holdings Plc is today providing a Trading Update prior to the release of its financial results for the year ended 30 June 2008 and in advance of the start of the 2008/09 football season.

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 years results to 30 June 2008 not due for 10 to 12 weeks, the board have decided that it would be appropriate to provide all stakeholders with an indication of the financial results for the year just completed.

"With the loss of the parachute payment from the Premier League and reduced ticket and commercial income, revenue year on year looks to have dropped to around £14m and with the club's costs base this forecasts a gross loss of around £8m and an operating loss before player trading of around £13m.' PLC Chairman Rupert Lowe added: With the year completed likely to show income down by over 35% and player and coaches wages rising by over 15% year on year the operating loss was all too predictable.

"We expect to report a substantial loss before tax of around £5m, (after player trading and interest charges) and this is despite a profit on disposal of players amounting to over £12m.

"This is clearly not acceptable or sustainable.

"With the last financial year now completed, the new board felt it was right to make this update as the figures are radically worse than those reported for the year to 30 June 2007.

"Sadly this financial legacy has meant we have had to take some tough decisions to immediately change the business dynamics of the club, and with little spare family silverware left to sell, we are, as we will continue to concentrate on, reducing the costs at operating levels.

"The financial results will show an increase in the level of borrowing which has necessitated extensive discussions with the company's bank and loan note holder, both of whom are supportive of the board's approach to returning the company to financial health.

"Whilst the figures are disappearing, the club is quietly optimistic about the prospects for the forthcoming season.

"Despite our financial position, Jan Poortvliet and Mark Wotte are very excited about what will be a young dynamic team determined to play fast and attractive football. 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 an ew 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 PLC expects to release its audited accounts in October.

More Rupert Lowe reaction in tomorrow's Daily Echo.