Everton have released their accounts for 2012/1, reporting a pre-tax profit in their latest financial accounts thanks to improved revenues across all areas in the 2012/13 season.
PRESS RELEASE: Everton Football Club today released its Annual Report and Accounts for the 2012/13 season, reporting improved revenues across all areas, continued investment in the playing squad, reduced borrowings and further reductions in its cost base.
Everton Football Club is well placed to capitalise on the new Premier League broadcast deal after the 2013 Annual Report and Accounts revealed its turnover had increased by 7.3% to £86.4m due to increased commercial revenues (up by £2.3m) and a strong Barclays Premier League campaign that resulted in a 6th placed finish, generating an increase in broadcast revenue (£2.9m) and improved gate receipts (£0.7m).
The Club made an operating profit of £0.7m before player trading, compared to a loss of £6.4m in the previous 12 months. There was also a small decrease in borrowings for the period of £0.7m, and a decrease in other operating costs from £22.7m to £21.8m.
The Club continued to invest in the playing squad with the permanent re-signing of Steven Pienaar, the arrivals of Steven Naismith, Kevin Mirallas, John Stones and Bryan Oviedo, alongside awarding new contracts to Leon Osman, Phil Jagielka, Sylvain Distin, Seamus Coleman and Tim Howard.
Profit on player sales increased to £15.6m (Jack Rodwell, Joseph Yobo, Tim Cahill and others) from £14.1m in 2011/12, and with the inclusion of amortisation of player contracts (£10.6m compared to £12.9m a year earlier), the financial results show a £10.7m swing in net profit from a £9.1m loss in 2011/12 to a £1.6m profit in 2012/13. The figures published do not take into account the new Premier League broadcast deal that began in August 2013.
Chief Executive Robert Elstone said: â€œThe Board has consistently demonstrated its commitment to competing at the highest level, in the best league in the world. We continue to invest in a young playing squad through the acquisition of key talent and the excellent work of our Academy. This commitment to youth has been supported by the extension of contracts for many of our experienced performers, all of which continues to sustain a high value in our playing squad not represented on our Balance Sheet. Away from the pitch, I am also pleased that we have seen growth in all revenue streams, reductions in our cost base and debt levels slightly reduced. Itâ€™s a very solid financial position that means we are well placed to take advantage of the new Premier League broadcast deal, already flowing through into our 2013/14 numbers.â€
Highlights of this yearâ€™s report include:
â€¢ Turnover increased by almost £6m
â€¢ Gate receipts increased by £0.7m to £17.5m
â€¢ Broadcast revenue increased by £2.9m
â€¢ Other operating costs reduced by almost £1m and down 8.4% from 2009/10
â€¢ Operating profit before player trading of £0.7m versus £6.4m loss in 2011/12
â€¢ Net profit swing of £10.7m
â€¢ No increase in borrowings
Speaking in the Annual Report and Accounts, Chairman Bill Kenwright said: â€œEach year, when I sit down to carry out my review of the previous year, I focus on whether our Club is in a better position than it was a year ago.
â€œAnd while we have undoubtedly gone through a period of change, the answer can only be a resounding yes.
â€œOn and off the field we continue to push forward on every front, led by the values and ethos that infuse every person and every aspect of the Clubâ€™s life.â€