Millwall reveal increased turnover in latest accounts
Fri 19th Nov 2010 | Money & Finance
Millwall Football Club yesterday announced that its results for the last financial year (ending June 2010), reveal that operational losses had been reduced, turnover up and that a share offer is planned to cut borrowings.
The Championship club’s accounts showed turnover increased by 15% to £7.5 million (from £6.5 million), which helped to reduce operational losses by 22% to £3.4 million (from £4.4 million).
Financing costs continued to rise over the year, but the club has announced an Open Offer to all shareholders, which, if fully subscribed, will significantly reduce borrowings and therefore reduce interest charges.
The Open Offer is expected to raise a maximum of £11.2 million, before expenses, if all shareholders take up their entitlements, allowing the club to repay up to £8 million of outstanding loans.
Chairman John Berylson commented:
"The purpose of the Open Offer is to strengthen the balance sheet of the Company, allow existing loans to be reduced substantially and to provide working capital for the football club.
"During this season 2010/11, we will increase our revenues by at least 65% as a result of higher attendances and commercial sponsorships but most significantly a greater share of The Football League central TV and sponsorship revenues.
Of course there will be additional cost, primarily an increase of our playing staff wages and increased operational cost of running games at The Den. However, with sound financial management we should again be able to continue to reduce operating losses. Nevertheless it is paramount that the team has the financial support to be able to compete at a higher level and a successful Open Offer would be a big step forward in terms of achieving this."
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