Town have announced a loss of £7.156 million in the year to June 2014, down from the previous year’s figure of £9.776 million. The club’s overall debt rose from £82.437 million to £86.008 million.

The figures were revealed to shareholders at this evening’s PLC AGM in a sheet outlining the financial highlights for the year 2013/14. The PLC is made up of the pre-takeover shareholders and owns 12.5 per cent of the club with Marcus Evans owning the rest.

Wage costs were down from £15 million in 2012/13 to £13.9 million, while the club lost £500,000 on net player trading. Aaron Cresswell’s sale to West Ham will feature the following year’s accounts.

Gate receipts were down to £4.981 million from £5.084 million in the previous year, while commercial income also dropped slightly from £4.153 million to £3.892 million. Overall, turnover dropped slightly to £13.550 million from £13.843 million.

The increase in debt relates to £3.840 million in loans from other areas of the Marcus Evans Group, while the club has received £168,000 in payments from the loan notes taken out after administration in 2003.

Town’s debt is almost wholly owed to companies also owned by Evans with the club not in debt to any financial institution.

Regarding Town's cost base, the statement adds: “Direct costs reduced from £17.8 million in 2012/13 to £16.7 million due mainly to lower player wages and associated agent fees.

"Administrative expenses have also reduced from £2.6 million to £2.1 million in the season 2013/14 as the club continues to make cost savings and efficiencies wherever possible in off-field operations in an effort to reduce ongoing losses and maintain compliance with the League’s Financial Fair Play rules.”

MD Milne has previously confirmed that Town’s results are within the required FFP parameters: “We’ll be within FFP. We won’t face any embargoes."

Milne and manager Mick McCarthy were quizzed by around 200 shareholders in the Sir Bobby Robson Suite.

McCarthy was warmly welcomed by shareholders, delighted with the team’s current position second in the Championship.

PLC chairman Roger Finbow praised the Blues manager, his assistant Terry Connor, owner Evans and Milne for improving not just the side’s performance but also the overall mood around the club which he says is a much happier place these days, both on the field and off it.

McCarthy took most of the questions, while Milne was mainly asked about ticketing issues. One questioner asked if telephone sales could be reintroduced, while another felt matchday prices were too high.

Milne said the current online and in-shop arrangement was working well and that the club is happy with its pricing structure, pointing to Saturday’s crowd of close to 22,000.

Having answered his questions, McCarthy thanked those present for the impressive support on matchdays and left to watch the Blues’ FA Cup opponents Southampton lose 2-1 to Manchester United on TV.

The formal business of the evening followed with Finbow and Liz Edwards both re-elected to the PLC board unanimously.

Photo: Action Images

dirtyboy added 22:32 - Dec 8 Progress, no doubt people will want Evans to stick his hand in his pocket in January and forget he's propping up a 7m loss. Cresswell money balances books nicely, increased crowds recently, few more appearances on TV, decent draw in FA Cup all points to that loss coming down further. All good signs that we're being run properly.
10

theblueginger added 22:57 - Dec 8 Liz Edwards still hasn't realised she is involved with Ipswich Town and not Tottenham Hotspur! Overall good news. I can imagine the wage bill going down again slightly for next season. Added to the Cressy Sale, a likely influx from either Mings or DMG in the next year, and the increasing attendances and shirt sales, Town's finances look promising. Yes we are in 86 Million debt, but as explained it is owned to MM, not any banks who will be calling it in anytime soon or charging interest. This Milne chap is growing on me. He seems in control and has been confident for a while of Town making ffp, which we have done without much bother in the end. He generally comes across well. If there are three areas to improve: The first would be directing a little more money to ensure we meet Cat 1 Academy status/ I still think phone sales would be beneficial, and as mentioned before, improvements to the hospitality would noticeably improve matchday takings in the long run.

5

StowTractorBoy added 23:46 - Dec 8 Could anyone more clever and knowledgeable than me explain what will happen in the event of Marcus Evans pulling the plus on us. Will the Club owe the money to the Marcus Evans group even though he/it owns the majority of it. Alternatively if he does leave us (heaven forbid) does he take the debt with him and hope to sell the Club to recoup his losses. Thank heavens we do have Mr Evans as I think we are very lucky when you look at other Clubs who have chosen the wrong owner, Portsmouth being the saddest case.

4

bramey_blueboi added 03:35 - Dec 9 StowTractorBoy If Evans was to sell his shares then the new buyer would be purchasing his shares plus the debt. But in the event if Evans was to just up and leave and nobody replaced/bought his shares then yes, he could take the issue to court in which we'd have to set up some sort of agreement to pay him the money back or in the worst circumstances if we were unable to pay, we'd most probably enter liquidation

1

krizz00 added 07:21 - Dec 9 "commercial income also dropped slightly from £3.892 million to £4.183 million" I think we can live with upward drops!
1

battyblue added 07:41 - Dec 9 We should soon be seeing what the clubs are going to get punished for breaking the FFP rules last season if anything.
3

Generic added 07:41 - Dec 9 The 3.8 billion in loans is more troubling though ;-)
0

Jackie added 08:38 - Dec 9 If the quadrillions in gold that are sitting in se asian and switzerland gaining interest were given back to the people of planet earth by the world bank, this wouldn't be an issue. just sayin.
3

gazzmac4 added 08:44 - Dec 9 All sounds more promising doesnt it? The loss per year decreasing is another positive indication that we are being run properly. I think there are still tweaks to be made here and there; ticket prices maybe and a little look at match day experience but i for one am much more comfortable with how the club is doing off the pitch than i have been previously. The MD's and Evans took some stick but we seem to be on an upwards curve so long may it continue. Evans must be chuffed that while he and his team work well off the field, McCarthy continues to work wonders on it! Not sure about the rest of you but this season has been my most enjoyable for many a year! See you all at Bolton on Saturday! COYB's!

4

StowTractorBoy added 09:42 - Dec 9 Thank you Bramey. Quite frightening really - lets hope we can get to the promised land this season.
1

PhilTWTD added 09:48 - Dec 9 Transposed figures sorted and comma replaced!
0

Paulblue62 added 09:55 - Dec 9 This shows how lucky we are to have an owner such as Mr Evans and also how important it I we get out of this league. Mick will be careful when we go up and Mr Evans can have some of his money back.
3

Razor added 10:28 - Dec 9 blueginger-------why the cheap shot at Liz Edwards? Any justification for this and do you actually know how many hours she puts in for this football club? Thought not---an apology is due but say no more.
-1

PhilTWTD added 10:30 - Dec 9 bramey_blueboi That's not a realistic scenario. ME effectively owes the money to himself, so unlikely it would ever end up in court in that manner. If he were to sell the club he would almost certainly have to take a big hit.
2

JimInGreensboro added 12:51 - Dec 9 Oh, cry M.E. a river. Quick primer on corporate finance: this sort of "debt" is actually a capital debenture that generates positive equity in the value of the investment. For example, if one buys a loom, one owes money for the loom, but makes far more on the products produced by the loom. Buy a factory for the loom, and the factory, itself, gains equity and presents both an appreciating (equity) and depreciating (tax) asset. In other words, where the public read "debt", Evans reads "investment".

3

braveblue added 16:39 - Dec 9 Why is everyone congratulating Milne and the club? Ticket income down and commercial income down. In terms of business performance these are poor results only saved by some cost cutting. The downward income trend is worrying and yet you can't but a ticket by phone!!!!'
1

maninashed added 17:18 - Dec 9 StowTractorBoy The £30 million plus he inherited when he bought the club cannot be passed on as part of the deal to let him buy the club. This was mainly loans from Norwich Union for building the stands. Marcus paid off this debt at 20p in the pound and is cleared. However the debt remains in the Ipswich accounts at the original amount. I have no idea about the circa £10m a year that has accrued to the debt since.

1

paulnstar added 19:08 - Dec 9 86 million in debt and Marcus evans does not own the entire debt , how does that make financial sense to keep pumping money in and keep getting more debt , evans must want his money back at some point and I don't see how a measley 2 million pounds in instalments for cresswell helps the debt ,some of that going to tranmere .Can see a Portsmouth situation arising in the future here .not good

-1

cornishblu added 20:54 - Dec 9 http://www.bbc.co.uk/sport/0/football/30395895 .....means we miss any sanctions .....as MM has previously said now let's see how well the FA apply their own rules and penalise the clubs that overspend.....make the playing field much more level than it is now.....or for FA do I also read FIFA!!!!!
1

Blogs 295 bloggers

Ipswich Town Polls