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Town Announce ÂŁ5.2m Pre-Tax Loss - Ipswich Town News

Town have announced a loss before tax of ÂŁ5.2 million in the year to the end of June 2018.

Ahead of this evening’s PLC AGM in the Sir Bobby Robson Suite shareholders were given a sheet outlining the financial highlights of the overall club for the year to June 2018.

The PLC owns 12.5 per cent of Ipswich Town Football Club Co Limited and consists of the club's shareholding prior to the takeover 11 years ago with Marcus Evans owning the other 87.5 per cent.

The club made an operating loss of £8.39 million in the financial year 2017/18, while making £3.84 million from player sales, the initial fees received from Bristol City for Adam Webster - £3.5 million minus Portsmouth’s sell-on share - and £750,000 from Barnsley for Kieffer Moore with the sales of Martyn Waghorn and Joe Garner made after the end of June 2018.

In the previous financial year Town made a loss before tax of ÂŁ4.3 million and an operating loss of ÂŁ7.8 million, having received ÂŁ4.1 million from player trading.

The club’s overall debt has grown from £89.26 million to £95.50 million, owed almost entirely to owner Evans’s other companies - the increase an additional £6.383 million in non-interest-bearing intra-group loans - with MD Ian Milne having previously outlined the position.

"This is no third party debt," he told TWTD in November 2014. "The money that an owner has put into a club, he’s never going to see that back, unless maybe it goes up [to the Premier League]. But even then I doubt he’ll see that return.”

Town’s turnover in 2017/18 was down slightly from £17.24 million in the year to June 2017 to £17.13 million.

The wage bill, by far the club’s biggest outlay, was £18.53 million, 108.17 per cent of turnover, up from £17.78 million during the 2016/17 season.

Gate receipts were down from ÂŁ5.13 million in 2016/17 to ÂŁ4.7 million last season having been ÂŁ6.5 million in 2015/16, while commercial income was down very slightly on the year to June 2017 at ÂŁ4.350 million from ÂŁ4.352 million.

The average attendance was down from 16,980 in 2016/17 to 16,272 last season (the 2015/16 season’s was 18,959), while season ticket sales were also lower in 2017/18 at 10,144 having been 12,022 the previous season.

"Gate receipts were down on last season due to lower attendances,” the highlights document explains. "Cup receipts were also lower than last year as 2016/17 included a share of the gate from the replay at Lincoln City [rather than just a single third round tie as in 2017/18].

"Commercial revenue remained at a similar level to last year despite no major stadium concerts in the summer (2016/17 included Elton John). EFL income was higher than last year due to an increase in the basic award distribution.”

Regarding costs, it adds: "Direct costs increased from ÂŁ21.4 million in 2016/17 to ÂŁ22 million due mainly to player wages and associated agent fees as further funds were invested in the first team squad and also our academy.

"Administrative expenses decreased from £2.3 million to £1.6 million in the season 2017/18 as a result of a refund of historic policing costs following a legal settlement which was partly offset by an increase in the club’s share of the EFL’s pension scheme deficit.”

The financial highlights can be found in full on the club site here.

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