Carlisle United have earned a net profit of £0.4m in the first six months of the year, it has been revealed.
This has been driven by £0.45m from player sales and £166,000 from an additional unexpected, exceptional Premier League grant.
However, at this stage any profit is expected to become an overall estimated full year forecast loss of circa £0.4m, by the year end.
This estimate is subject to a number of income and costs uncertainties in the second half of the year.
The figures have been given by chief executive Nigel Clibbens who has delivered, to the official club website, an update on United’s financial state.
He says: “We must continue to be a self-funded club, day-to-day. We must pay for our football spending, including funding our recovery in the league and the January window, from our own cash, not third-party money.
“This model remains unchanged after the ending of takeover talks, and in practice has been the case since before 2019.
“This financial model makes our financial position and prospects important, especially as we are now in the transfer window. It is important fans understand this, and that can only be the case if we are open and transparent as possible about the realities we face.
“This is also important to counter the misinformation, inaccurate reports and hearsay that fans can pick up and come to believe, especially on social media.
“I therefore continue to consistently and honestly lay out the financial facts of the club, no matter what is happening on or off-the-pitch.”
Clibbens revealed that United have earned £175,000 from season tickets (which is expected to become circa £350,000 for the full year). This is unchanged from the last ‘normal’ season unaffected by COVID.
Match ticket income is £325,000 so far. This is better than budgeted and proving resilient as fans continue to back the team – as also shown by the gate numbers.
The final year expectation is circa £575,000, but is driven by on-field performance, support and COVID in the remainder of the year. No ticket system issues have been suffered and a normal reliable service has resumed after the initial early season IT outages.
Retail continues to be strong with sales to December 31 being the best since 2016/17.
Catering operations are now profitable. It is a priority to increase catering income in the second half of the year. New ideas to improve further, and feedback, are still most welcome.
Commercial income remains challenging. Overall, commercial is recovering slowly after the COVID lockdown.
Hospitality bookings are improving and encouraging with new capacity now in place after the reopening of the Sponsor’s Lounge.
Business costs and overheads are increasing, incurring significant additional extra stewarding costs on match days to deal with potential fan safety issues and Covid.
This is taking much needed cash that can be better spent elsewhere, and increases the ongoing trading loss. Stadium costs are up again due to power costs and spending on repairs and renewals.
Football spending is up due to a 20 per cent increase approved in June last year, as the club invested in the squad in the last window. Further increases will follow after the January window as the club supports Keith Millen.
United have earned £0.45m income in the first half of 21/22 from player sales. The club has earned just £0.1m from EFL Papa John’s Trophy prize money and cup games.
Without the Trophy prize money the cup income would be minimal this year. This cup cash is important to help pay bills and fund player recruitment.
United will receive circa £0.33m of additional Premier League grant support in 21/22 (with £166,000 received in the first half year).
However, the club have unplanned exceptional costs from higher COVID compliance, COVID postponements and the costs from a change of manager.