Grimsby Town release 2017 financial accounts marking £1m profit and £600k increase in turnover
8th November 2017
Grimsby Town FC have released their financial report for 2017 - marked by a £1-million pre-tax profit and a £600,000 increase in turnover.
In the 12 months leading up to May 31, the club's turnover reached £3.26-million, compared to £2.64-million in 2016.
Sparked by the club's return to the Football League, the additional revenue has allowed the club to invest in both the first team and Youth academy structure, while also reducing historic debts.
Full details of the report can be viewed on the club's official website: www.grimsby-townfc.co.uk
A club statement, released in conjunction with the report, read: "The club continues to invest prudently in the first team and management staff in order to play at the highest level possible and progress and plans for relocation to the new community stadium.
"An operating surplus for the year has enabled a further reduction of the club's historic external debt that arose before the collapse of ITV Digital.
"Specifically, a £300k repayment to the bank eliminating the company's bank loan.
"Comparing debt of 15 years ago, the club had historic debts of circa £2-million which threatened the club's existence. This was owed to the HMRC, the bank and past directors. A sum in today's value would be well in excess of £3-million.
"Cumulative trading losses over the same period in time have in the main been finances by an increase in the issued share capital.
"Currently, the club's total indebtedness is significantly less than £2-million, demonstrating the prudent management of the club's financial affairs.
"This sum should not be confused with the accumulated tax losses of £5.3-million disclosed in the accounts.
"Often onlookers have confused this sum of £5.3-million to be the club's indebtedness, which it is not.
"These tax losses have been accumulated over 30 years, and include tax allowances for capital expenditure, such as converting Blundell Park to an all-seater stadium, and the construction of the Findus Stand, and income that is not subject to tax.
"They remain in the accounts and available to offset against future profits.
"Additionally, the club has invested substantially in the infrastructure for the Youth academy and training facilities, in the form of changing rooms, technical equipment, staffing levels and the overall facilities."
News Courtesy: www.Humberbusiness.com