Portsmouth announce £1.36m losses following League One return

Pompey have posted a £1.36m loss following their return to League One.

Saturday, 30th March 2019, 9:30 am
Updated Tuesday, 2nd April 2019, 11:25 pm
Pompey have today revealed £1.36m losses following their first season back in League One in 2017-18.

But the deficit has been covered by Tornante’s £10m investment following their August 2017 takeover.

The Blues have released accounts for the year ending June 30, 2018, following their filing at Companies House.

These reflect an overall loss of £1,368,344 – an increase on £507,629 losses posted the previous year.

Sign up to our Portsmouth FC newsletter

The i newsletter cut through the noise

However, net assets are now recorded as £12.62m, a figure which includes Tornante’s immediate £10m investment following their August 2017 takeover.

While turnover has risen to £8.89m, representing an increase of £1.34m from the previous year.

Meanwhile, earnings before interest, depreciation and amortisation (EBITDA) reveal a loss of £565,273.

And, by the close of the balance sheet, Pompey had £3.33m in the bank, with £7m having been transferred back to Tornante’s bank account to earn more advantageous interest for the club when not currently required.

Under further scrutiny, the accounts show £2.79m has been spent on essential work to Fratton Park’s infrastructure, the figure also including purchasing strategic assets.

Cost of sales have increased by £1.06m, a figure largely attributed to increased player wages, with match-day, Academy and other football costs also included.

In addition, administration expenses rose by £666,197 to reach £3,801,635.

These contain one-off administration costs of £184,000 in relation to the club’s own legal fees during the Tornante purchase. Also included in the administration expenses are general Fratton Park repair costs, architect/surveyor fees and other costs relating to stadium development work.

In terms of profit, the £8.89m turnover was influenced by a rise of £526,341 in financial distributions by the Football League, reflecting Pompey’s presence in League One following promotion.

There were also notable increases in gate receipts (up £718,229), hospitality (up £163,964) and broadcasting income (up £112,381).

Elsewhere, Pompey spent £741,357 on player recruitment during the period, a figure which includes agent fees.

Broken down, around £500,000 in transfer fees were paid for Luke McGee, Brett Pitman, Dion Donohue, Oli Hawkins and Ronan Curtis.

Anton Walkes’ arrival from Spurs occurred after June 30, 2018, so is not included in such sets of figures.

In terms of income from player sales, this totalled £475,660.

It includes defender Tom Davies’ August 2017 switch to Coventry City for an undisclosed fee.

However, the vast bulk reflects the sell-on clause activated following Adam Webster’s transfer to Bristol City in June 2018.

Finally, there was a spend of £12,103 in protecting the club’s trademarks, a process which continued beyond the period covered.