Aberdeen FC Announces Profit
Aberdeen Football Club has announced an operating profit of £130,000 before non-cash items and interest for the twelve months ended June 30th 2005.
The Annual Report for year ending 30 June 2005 shows a turnover of £7.178 million, which is an increase on 2004's figures despite the centenary income of the previous year.
It also shows losses after interest reduced to under £1m which is less than half of those posted two years ago and under a third of the losses reported in 2001.
Commenting on the results, Pittodrie Executive Director Duncan Fraser said: "At the outset we set the target of operational breakeven, being operating profit before depreciation and amortisation of assets. In setting this goal we recognised that if the Club is to move forward it needs to demonstrate that it can live within its means.
"Of course this still leaves the ongoing issue of debt servicing, however we need to take one step at a time and ensure that the core product of football is allowed to develop apace. The fact we achieved this goal for the first time since the Club became public in 1995 gives us hope for the future."
It is no coincidence that good results on the pitch translated to good performance off it. Fraser added: "The key turnover increases were in ticketing and broadcasting income as a direct result of the team's performances on the park. Our average SPL gate rose from 10,559 in 2003/04 to 13,614 in 2004/05."
The key wages-to-turnover figure - the best indicator to how healthy a financial state a football club is in - shows a reduction from 68% in 2003/04 to 58% in 2004/05. However, this does not include the summer transfer activity which saw Jamie Smith, Steve Lovell, Barry Nicholson and Steve Crawford brought in presumably at the top level of the Pittodrie wage structure.
The Club has confirmed that its Annual General Meeting will take place in Pittodrie Stadium's Richard Donald Suite at 7pm on Tuesday November 29th.