Warning attached to record profits

DUNDEE UNITED: Tannadice accounts show net profit of £3.94 million

A historic profit for Dundee United came with a stark warning when the Tannadice club announced details of their annual accounts yesterday.

The good bit was the confirmation that the last financial year has produced a net profit of £3.94 million.

The not so good bit, however, was the revelation that had it not been for the millions brought in through the transfer market they would be looking at an £800,000 loss.

The near-£4 million profit for the period to June 2015 is an increase of some £2.7 million on the previous year.

This represents the largest profit since the club was founded in 1909 and also the fifth time they have reported a profit in the last six years.

The substantial profit includes the millions accrued from the sales of Ryan Gauld, Andy Robertson, Gary MackaySteven and Stuart Armstrong.

The gain so far on all those transfers has been £4.86m once agent fees, payments to other clubs and other payments have been shaved off.

A statement from United read: “These figures continue the significant improvement when compared to the previous 12 years, a period when the club recorded only one profitable year.

“The profit for 2015 was underpinned by a 4% increase in revenues to £5.82m, reflecting positive on-field performance with the club securing a top-six finish for the eighth consecutive year and a second consecutive domestic league cup final in reaching the 2015 League Cup final.

“Successful player trading enabled the club to reduce its net debt, which stood at £7.3m in 2007, to £1.28m in a further step in the club’s strategy to reduce net debt.”

United are of course in a perilous position in the Premiership and next year’s accounts are likely to have an entirely different look to them.

They will factor in the sales of Nadir Ciftci, Ryan McGowan and John Souttar but also the pay-offs of manager Jackie McNamara and his coaching staff, as well as diminishing returns from success on the pitch.

Moreover, United’s footballing “assets” aren’t of the same value as in previous years. There aren’t any of the current crop who could be expected to command a sevenfigure sum these days.

And the warning in the statement is clear.

“It is noted that the club continues to spend more than it generates in income,” it continued.

“The operating loss for the year was £799k and only successful player trading can sustain such losses.

“Much work continues to be done on identifying and implementing reductions in operating expenses and the value of this work should be reflected in forthcoming results.”