Aberdeen Football Club plc release Annual Report for the Year Ended 30th June 2014
Aberdeen Football Club plc today announces its annual results for the year ended 30th June 2014.
After the year end the Club reached agreement with the key debt holders and the bank to restructure its debt and share capital. Some of the necessary steps have already been completed and, subject to shareholder approval, the remainder will be completed this year. It is expected that net debt will be reduced by £14.49m.
As part of this restructuring local businessman Willie Donald and his wife Elaine will become shareholders in the Club. Also as part of the restructuring the Aberdeen FC Community Trust will receive a sizeable shareholding.
Aberdeen Football Club Chairman Stewart Milne stated "The period covered in this report has seen a significant change in the fortunes at Aberdeen Football Club given the team's success in lifting the League Cup. The work ethic, attention to detail and man-management skills of Derek and his management team have yielded significant dividends that they and the players can be rightly proud of".
With regard to the restructuring he stated "The negotiations have been ongoing for a number of months now and these arrangements will I believe be transformational for the Club. The Club are indebted to Willie and Elaine for the role they have played in this. If the final steps are approved at the AGM we will have a strong balance sheet and the debt servicing burden will be removed allowing us to drive forward on training facilities and the plans for the new stadium with much greater confidence in our ability to raise the additional investment needed".
Willie Donald stated "Our family recognises that we have been fortunate to have grown our business in a city and region that has benefitted from the impact of the energy sector over the last 37 years. We decided some time ago that we wished to give something back to the community, we see the football club as a vital and central part of the community, and indeed the whole North East of Scotland and see this investment as an excellent opportunity to deliver our objective".
Club Chief Executive Duncan Fraser stated "Stewart Milne Group and Aberdeen Asset Management, by agreeing to convert debt to equity, have been pivotal in making this restructuring happen. It was only possible to agree this restructuring because the Club has demonstrated it can operate at a break even position. Having taken many hard decisions over the years we intend to continue the strategy of only spending what we can afford and maintaining an appropriate wages to turnover ratio.
"The overall turnover increased from £7.85 million to £11.158 million, as the Club finished third in the SPFL, won the League Cup and reached the semi-final of the Scottish Cup, compared to eighth in the SPL, the fourth round of the League Cup and the fifth round of the Scottish Cup.
"Wages increased from £5.256 million to £6.084 million as a direct result of much higher performance bonuses being paid to the playing and management staff. The consequent wages to turnover ratio has dropped from 67% to 55% which in terms of industry averages is an excellent result."
The Club's AGM will take place on Monday 15th December 2014 in the Aberdeen Asset Management Lounge at 7 p.m.