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Blackburn Rovers post profit
BLACKBURN Rovers have posted an annual pre-tax profit of £4.3m – thanks to a host of player sales.
Rovers recorded an operating loss of £9.6m before player trading in the year ending June 30, 2012 – around £5m more than they did a year earlier.
But the club’s latest accounts reveal that activity in the transfer market raised £14.1m thanks to money received for the sale of players such as Phil Jones, Chris Samba, Nikola Kalinic and Yakubu.
That allowed Rovers to make a profit for the year, while the club’s net debt was reduced from £26.3m to £24.5m.
In contrast, a year earlier Rovers had posted an annual pre-tax loss of £18.6m after spending a net £13.8m on player trading. The club sold Jones to Manchester United midway through June 2011 but the £16.5m fee was to be paid in instalments, with some of the payments included in this year’s balance sheet.
Kalinic joined Ukrainian side Dnipro in August 2011 for a reported £6m, while Rovers sold Samba to Anzhi Makhachkala in February for a fee believed to be between £7m and £9m.
Yakubu moved to China in June to sign for Guangzhou R&F for £1m, having been bought from Everton for a similar fee 10 months earlier.
The purchases of Scott Dann and David Goodwillie last summer, for fees said to total around £10m, were also included in this year’s balance sheet.
It was confirmed that, since the balance sheet date, Rovers entered into transfer agreements that will cost the club a net £6.8m.
That will include money spent this summer on players such as Jordan Rhodes, Leon Best and Dickson Etuhu – as well as fees to be received for the likes of Junior Hoilett and Steven Nzonzi.
Turnover fell this year from £57.6m to £54.2m, with an increase in broadcasting revenue offset by a reduction in prize money as Rovers finished 19th in the Premier League and slipped out of the top flight.
Commercial revenue fell by £1.8m, partly due to the end of the club’s shirt sponsorship deal with Crown Paints.
Contingency plans have been put in place should Rovers be unsuccessful in their promotion bid this season, while the club are also preparing for the introduction of Financial Fair Play rules to English football.
A year ago owners Venky’s gave assurances that they would continue to fund Rovers and they have reiterated that stance in a statement accompanying this year’s accounts.
The club’s current banking facilities are with the State Bank of India, having switched from Barclays since last year’s accounts.
“The company will require significant funding in addition to the current facilities available to the company,” a statement read.
“The directors have received confirmation from the ultimate parent company (Venkateshwara Hatcheries Pvt Ltd) that it has sufficient funds and is willing to provide such additional financing, as may be required to fund BRFC to the extent necessary for the company to continue to trade and to pay its liabilities as and when they become due.
“The directors have also considered the potential impact on the company’s cash flows were BRFC not to regain its FA Premier League status and have identified mitigating actions that would manage the cash flow requirements of the company in such circumstances, and in any event have received confirmation of support from its ultimate parent company.”