Carlisle United remains in profit – despite ‘the worst season on the field for many years’.
The club has released its financial results for the year ending June 30 2022 and they show that its profits dropped by a staggering £364,000 – from £397,000 to £33,000.
However, the club said, it was its third successive year in profit and the third year without debt or shareholder funding. United ended the year with £1.58 million of cash in the bank and total debt levels slightly reduced and Football Net Debt of £1.26m.
The club paid out £2.93m in staff costs – including players – up from £2.39m in 2020/2021. This figure includes termination payments made to staff leaving the club.
Carlisle United said the rise reflected a return to ‘normal’ trading.
Its total football expenditure was £2.25m – up from £1.87m in 20/21 and lower than the £2.03m spent in 2019/20. This includes all player costs and other football expenditure in the first team – including travel, football IT, medical, scouting, director of football, and all other first team football staff and coaches. It is the club’s total spending on Football.
The figures also reveal that it had the best income performance for a decade – business turnover and professional game income netted it £3.62m, compared to £2.19m in 2020/2021.
Its professional game income was £1.63m (20/21: £1.58m). This comprises EFL distribution £631,000 (20/21: £606,000), Premier League Solidarity £480,000 (20/21: £465,000), EPPP Academy grant income of £452,000 (20/21: £452,000) and LFE Academy education grants £70,000 (20/21: £56,000).
Other headline figures included:
- Player transfer receipts: £606,000 (20/21: £1.35m). This includes cash received from deals in 21/22 and also from prior years.
- Net assets: £5.4m (20/21: £5.3m) at 30 June 2022. This includes £7.46m attributable to stadium fixed assets.
- Debtors receivable for player sales: £211,000 (20/21: £213,000) at 30 June 2022. These will be collected in 22/23 and beyond. This excludes other contingent add-on amounts or possible sell-on income, which is not certain.
- Total debt: £3.15m (20/21: £3.16m) at 30 June 2022. No new debt advances or debt repayments were made to Purepay Retail or Pioneer Food Group in 21/22. The change in the year comprises additional accrued interest less debt repayments to the EFL and the overdraft reduction.
- Football Net Debt £1.26m (20/21: £1.57m) This is an indicator used by UEFA to measure financial risk. It is total borrowings plus transfer creditors less cash less transfer debtors receivable.
Chief executive Nigel Clibbens said: “The filing of the audited annual accounts and detail being made public now is very much historic. However, the key financial headlines have already been shared in detailed financial updates given to fans since the year end.
“The 21/22 financial results show a profit for the third year in succession and show us in a sound position day-to-day.
“The underlying trading of the club continued to hold up despite the worst season on the field for many years.
“All the exceptional adverse financial effects of coronavirus from 20/21 reversed as trading returned back to normal.
“Player transfer income was again important. Alongside Cup income, this remains a crucial element of our funding and operating model each year.
“A full and detailed explanation of 21/22 results is contained in the annual accounts along with comprehensive financial and operating information. This is part of the commitment to be transparent about the club’s finances and the issues and challenges we face.
“At June 30 2022, we had more cash in hand than the prior year and no creditor pressure or debt repayments scheduled for 22/23, except for small amounts to the EFL.
“We are pleased that we were able to get through a turbulent season on the field and continue to be well-placed financially day-to-day.
“All our PAYE and VAT liabilities continue to be paid up in full and on time. We also recognise the club faces uncertainties and challenges going forward. The position of the loan from Purepay Retail Limited had not changed at June 30 2022 compared with the previous year end, and at the date of approval of the accounts was still unchanged.
“After a turbulent 2021/22 season, the appointment of Paul Simpson on a long-term contract aimed to bring stability and a platform to develop the playing squad and improve football results in a sustainable way. This will take time to repair the issues of the past, but we are very pleased with the progress since.
“We have increased our player cost spending in 2022/23 again, after the increase in 2021/22, along with increased spending on other football costs as we invest in football staff and operations.
“This reflects the need to compete on the pitch after the serious problems in 2021/22 to support the manager and his plans.”
