C+P From Club Site WATFORD ANNOUNCE £1.3M PROFIT Watford Leisure PLC ("Watford Leisure" or the "Company") Unaudited Interim Results for the six months ended 31 December 2006 Chairman's Statement General overview I am pleased to be able to announce the results for the six-month period ended 31 December 2006 of a profit on ordinary activities of £1,330,289 versus a loss of £438,947 last year. The period under review has seen Watford Football Club take their place in the Premier League which has led to a significant increase in both revenues and costs.To compete at the highest level, we have had to carry a larger playing squad and undergo considerable investment in the club's infrastructure. I am also pleased to be able to report that Watford Football Club has been successful in qualifying for the semi finals of this year's FA Cup where we will face Manchester United at Villa Park on 14 April 2007. Off the pitch, we have also begun a significant three-year stadium redevelopment project that will see a tremendous improvement to our ground and an overall matchday revenue increase. Financial Results The profit on ordinary activities after taxation was £1,330,289 (2005: £438,947 loss) . Turnover for the first six months of the year was £14.million (2004: £4.8 million) - an overall increase of £9.2 million. The results reflect the higher revenues and costs attributable to Premier League status which are necessary at this level whilst retaining our desire to have a sustainable club and business. As well as receiving significant monies from the Premier League all commercial activities of the club reported an increase in revenues £1.2 million higher than last year. Cost of sales increased year on year by £5.4 million of which £5million related to higher footballing costs and £400,000 to the increased levels of commercial activity. Demands on the administrative side of the business increased in all areas and as a result administrative costs rose by £896,000. Performance of the Team Competing at the higher level has been a challenge for the squad but they are still in with a slender chance of retaining their place in the Premier League for next season with eight matches left in this campaign. Alongside this league success, we also managed a creditable run in the Carling Cup competition, eliminating Accrington Stanley and Hull City before being knocked out on penalties by Newcastle United. The team has reached the semi finals of the FA Cup for the fifth time in its 125-year history with wins over Stockport County, West Ham United, Ipswich Town and Plymouth Argyle.We will be looking for our second ever appearance in the final of the competition when we take on Manchester United next month. Performance of the Football Management Team In Adrian Boothroyd, Watford Football Club uncovered a young manager who has quickly become one of our most coveted assets. His current contract ties him to the club until at least June 2010 He is supported by his backroom staff including assistant manager Keith Burkinshaw, technical director **** Bate and player coaches Alec Chamberlain and Malky Mackay as well as his team of medical, scouting and performance analysts. People In any company, people are always the essential ingredient - the difference between success and failure. And in professional football, this statement is particularly true. The Watford supporters, match day staff, catering staff and administrative staff, as well as our playing and football management personnel, all have pivotal roles to play in our on-field and off-field success. During the period that this report covers there have been several notable highlights.I would like to thank everyone concerned for their steadfast commitment to the Watford cause. Other Developments and Future Prospects Following promotion to the Premier League, we examined our priorities and ways of working and confirmed our aims of establishing Watford FC as a top-ten Premier League club with a high impact player talent base, operating as a sustainable business whilst also acting as a true partner with our community. This 'Vision 2010' has already been set in motion and will see the club continue to lead the way in engaging with all elements of the local community, providing sensibly-priced tickets for top level football and playing a leading role in the redevelopment of the west Watford area that houses the club in the next few years. Working in conjunction with a number of partner agencies, including the mayor, town council, East of England Development Agency and the neighbouring hospital, the redevelopment of Vicarage Road will only be the first step of an eventual £750 million project that reinvigorates the town. The redevelopment of our Vicarage Road Stadium is a key strategic goal for the Company. For when it is achieved it will give us facilities that can be used every day of the week by a wide range of corporate organisations and individuals. Finally, I am pleased to report that we are stepping up our efforts to work with members of the local community. In this regard, our Trust and Community operation leads the way and is reaching out to increasing numbers of children and adults. In April 2006, we appointed a new Community Director, Julian Winter, who joined the club from a similar position at Sheffield Wednesday.His job is to continue the excellent work of the Trust and to move it forward to a wider audience in terms of participation and partnership development and to assisting in the club's stadium development programme. This work was reflected when the Trust won the prestigious Sportsmatch Best Overall Grassroots Scheme 2006 and Best Community Scheme at the same event. We have a focused Board and staff that is committed to delivering these objectives. GRAHAM SIMPSON Chairman 31 March 2007
Huge jump in turnover not reflected in the profit. Whilst I appreciate all the benefits of the league status will not be shown in those figures, I hope some of these Director loans etc have now been paid off. Otherwise I have serious concerns over this substanability plan, if we t/over an extra £10million yet only make an extra 900k something isn't right.
I'm not an accountant but that seems reasonable, a bit low but not a serious concern is it? that's 9% which is an acceptable return isn't it?
Before the doomsayers get going I'd just like to point out the following: - these are only half year results - Sky money and Young money are being paid in installments - debt was already significant - costs have risen (ie building of new press 'facility') - spent quite a bit on player fees - staff wages will have increased Anyway, I'm no accountant but these figures look good to me, though I'd think the June figures will be more indicative of anything. Where's Paddy when you need him...
You think. Work it backwards. Look at last seasons turnover, costs and net result. Compare that to the same six month period this year. If and it is if large sums have been now paid off then it would be a lot rosier than it appears, my concern on that no reference is made to the discharge of those debts in the statement so i believe it unlikely they have been cleared.
I thought that Simpson said the debts had been paid/cleared (can't find the article/email though)? A positive aspect is that a lot of the money has been re-invested (e.g into the stadium), which should (hopefully) yield better financial returns in the future.
:]] :]] :]] :]] :]] :]] :]] :]] :]] :]] :]] I just got in, turned my computer on, saw £1.3million or something, WENT COMPLETELY F*****G MENTAL (dropped my drink on the carpet), logged straight onto here in search of something and to vent then saw "stand by for kingjames" Ive been laughing uncontrollably for ten minutes and i think ove also slightly wee'd myself! Quality.... im going to go away now and re-assess my entire life as me thinks ive been taking things way too seriously recently!!!!!!!!!!!!!!!!! BUT IN THE MEANTIME, thank you for making me laugh (i needed it) .
Not sure.. I know what you mean... he might be laughing, nervously, hysterically... ..he could be on the verge of having a breakdown!! Someone needs to keep an eye on him!
Most of the Premiership money won't come in until the second half of the season... Sale of AY, Premiership 'prize' money, extra revenue from the Cup run etc. Most of the expenses are spread evenly throughout the year (salaries primarily) while the income is concentrated in the second half of the season. Thus, I would expect our expenses to remain broadly the same, while our income should rise by around $10M. THAT should allow us to pay off some debt, although the likelihood is that we will make a loss next year, especially if we win promotion again (those danged bonus payments !). One question... if we get promoted next year, do we still get the parachute money for the following 2 seasons ?
It escapes me now but the players salaries are paid either in one or two installments as opposed to monthly / weekly like a normal occupation.
Player wages are paid twice a year, as confirmed by big Sam's son who is mates with my friend, something to do with tax.
most investors would be happy with 10% profit per year , anything higher than that is a bonus .Some would argue that if we were making more than that per year as profit , that not enough was being re-invested back into the club. Have the one off bonuses paid for promotion been included in the figure , if so that would account for extra profit (1% loss of profit for every 140,000 paid).
I think some other things like players transfers have to be taken into consideration here,we have spent 750k kabba,smith 500k Shittu £1.6m Hosks and williamson £1.2mill and other players as well which would mean we have proberly spent around £5mill in the T/M Also the £2.5mill up front for stadium redevelopment,buying of Red lion. So to me that profit margin is pretty good,also remember we may not make a loss next season as the prem parachute payments may cover the turnover we lose through the gates. we still have other games to take into consideration this year and a cup semi-final receipts. We are looking very healthy now,plus Youngs income of around £650,000 a month.
The % drops of the gate receipts for the Semi Finals. They put both games together and "pool" the money. First they pay all the venue and associated costs. Then 5.5% gets divided up between affiliated associations. After that you are left with a total that is then split again. The FA takes 25% and 10% goes in to the pool. The remaining 65% is ten split equally amongst the four competing clubs.
I think the fee for Kabba was £500k but could rise to £750k. Can't believe he's fulfilled any requirements for extra fees though! Shittu's fee is rising based on appearances. Don't forget: Francis - £1.25M Priskin - undisclosed but rumoured to be around £1M Plus, sign-on-fees ... we've signed close to 15 players this season, so sign-on-fees must be a substantial amount.
PROFIT, WATFORD - have these two words ever been in the same sentance before on an actual basis? One must also take into account, accounting policy - for example an item that is reflected in the balance sheet is either an aset or a liability - thus creating a net worth or worthless in most cases in football. The profit and loss account is purely based on trading income and expenditure, such as gate money, sky receipts, merchandise sales etc etc and such costs as Development, Media room and ground improvemnets go to fixed assets and diectors loans being repaid are not reflected in the profit and loss, but reduce the liabilty and obviously if unpaid then the money is still in the bank - interest payments on loans do however hit the profit and loss. I haven't scrutinised the accounts as I am happy they reflect a profit for the half year and remeber they are also unaudited. I am not sure how much the freehold is ow worth, especially if the development gets its full planning permission. If this has increased substantially then this could be revalued and show a healthy balance sheet as in the future if we were to move to a new stadium the freehld would be up for grabs. On the other hand that may be all bullshyte a i am not sure or cant remember if the joint development meant we sold the freehold on, if i recall we sold a small bit. Watford 0 Manure 0 AET (Watford win on penalties 5-4)
lets just hope, they dont **** the funds away , just like last time. we will soon find out, if they have learnt the lessons from a few years ago
This entire string makes my head hurt. Can Jobr, Siggy or Paddy please elaborate, using apples and conkers instead of monetary figures and accounting terms?
The words have been used together before Paddy, but with a third in front -Negative. The Kabba transfer along with Hoskins, Williamson etc. wouldn`t show in these accounts which were for the period ending last December. Talking about assets and liabilities columns - where would you place Francis? My view is for the capital paid he is a liability, whereas Mahon (who came from Brentford for petty cash) is still an asset. Reminds me of an old colleague who when doing annual staff appraisals used to explain this to his employees - aiming to shift them from the liability column - either to asset - or out! Would be an interesting exercise with our players two columns - taking into account purchase price, performance to date, potential etc.
