Town Record £3.17 Loss
By Aston
November 9 2005
Ipswich Town PLC has today announced a loss of £3.17million for the financial year 2004/2005, but Town Chairman David Sheepshanks has reassured fans that player sales will not be needed this season.
The loss is actually slighter smaller than budgeted for under the terms of the CVA which Town entered after going into administration in 2003, the loss partially offset by the sale of Darren Bent to Charlton.
Town chairman David Sheepshanks: “The Club's finances are stable, under control and there is no financial pressure to sell any player this season.
“Although it is never pleasing in business to report a loss, supporters should not be alarmed by the headline figure reported.
“Twelve months ago we alerted shareholders to the fact that the financial year to June 2005 would be a tough one. Along with our commitment to the last of the Premiership player contracts and buoyed by extra income from loan note holders and increased gate revenue, the Club invested in strengthening Joe Royle's squad as we pushed for promotion. In the end though, as we all know, we narrowly missed out.”
Chief Executive Derek Bowden added: “As expected we are reporting a loss for the year.
“Within the context of our CVA plan, a sizeable loss was always forecast for the year when our parachute payments ended. The plan allowed for this and all payments due under the CVA have been met.
“Whilst the profit and loss account and balance sheet are clearly important within a football club, the management of cash is crucial. With no overdraft facility this Club must remain cash positive at all times, which was the case for 2004/05 and is forecast to continue for the season ahead.”
Town are targeting to break even in 2006-2007 and Town’s overall debt is £35.75 million, not £60 million as reported in a tabloid newspaper.
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