Hammers announce further losses

  • by Staff Writer
  • Monday, 16th January 2012

WH Holding Limited have announced an operating profit of £6.8million in the club's latest set of accounts - but overall losses of £18.6million.

In the latest set of accounts, released today, WH Holding Limited - the parent company of West Ham United FC - confirmed the trading profit in the latest set of figures which cover the period from June 201 to May 2011.

However the club's overall losses (prior to taxation) equate to £18.57million - figures only sightly better than the previous year which saw the club record a loss of some £21million.

The club's level of debt to the banks is recorded as having dropped from £44.9million to £38million during that period, whilst the club's overall debt was reduced from £112.7million to £91.2million.

In order to further reduce the level of debt, the club have made 'significant overhead savings' of £3.2million per annum since May 2009 - a year prior to the club's purchase by David Sullivan and partner David Gold - whilst overheads have been reduced by 15%.

David Sullivan, writing in his Chairman's statement also confirmed that the club had spent £10.7million (gross) on transfer fees since the club were relegated in May 2011 - although with player sales, that figure drops to just £2.5million (net).

To download a copy of the accounts, click here

WH Holding Ltd 2011 Accounts: highlights

The good news...

* Group turnover up from £71.7m to £80.5m
* Match receipts up from £16.9m to £18.8m
* TV and sponsorship money up from £38m to £46.3m
* Board of Directors' renumeration (total) down from £637,000 to £557,000
* No dividends will be paid to the directors
* Operating profit up from £1.4m to £8.4m
* Wage/turnover ratio reduced from 70.2% to 68%

...And the bad

* Overall loss of £18.6m - down from £20.6m in 2010
* Staff costs (wage bill) up from £53.6m to £55.7m
* Player's wage bill up by £8million
* Value of tangible assets (Boleyn Ground, training grounds) down from £75.6m to £73m
* Average home gate down from 33,100 to 32,800 (down from peak in 2006/07 of 34,600)
* Bank debts total £38million (down from £44.9m)
* Overall debt to creditors £91.2 (down from £112.7m)
* Group's profit/loss account stands at -£142,450,000

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