Investment: Aston Villa shares fall as wages jump
Wednesday 27 January 1999
The club - currently joint leader of the premiership - saw its shares dive 12.5p to 680p, after the club declared first-half profits flat at pounds 2.2m despite a steep rise in gate receipts on the back of its strong performance on the pitch. Profits after trading were pounds 11.6m reflecting the surplus booked on the sale of the player Dwight Yorke.
Analysts estimate that the wage bill is running at around pounds 17m this season compared with pounds 12.5m in 1997/98.
"The pounds 2m extra they have made this half has gone straight into players' pockets," one analyst complained.
Mark Ansell, the finance director, said yesterday that it is inevitable that costs will rise as the club seeks to build a first class team.
"There is a lot of talk about a European super league. People may talk first about Manchester United and so on but in the next breath, it will be Aston Villa," he said. "We are playing a game which is longer than the next six months."
Paul Wedge at Collins Stewart, the stockbroker, which has gone negative on football stocks generally, said yesterday that this is a "big if", but one that would pay off if Villa succeeds.
"We don't see any profits growth in the next two years, unless they go into the champions league. But if they do that, they could be worth pounds 9m to pounds 10m."
The dividend is unchanged at 2.2p.
- 1 'Kidnapped boy may have been abused and murdered by VIP paedophile ring,' say police
- 3 Girl, 7, gets Tesco to remove 'stupid' sign suggesting superheroes are 'for boys'
- 4 This letter from a reader explains why women can’t play football
Black Friday 2014: Opening times for Asda, John Lewis, GAME, PC World and Argos
Miss Honduras Maria Jose Alvarado's stylist Luis Alfredo Garcia is found stabbed to death
Dr Lam Hoe Yeoh: Voyeur doctor jailed for eight years after using network of hidden cameras to film patients, colleagues and friends on the toilet
'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
Scientists predict green energy revolution after incredible new graphene discoveries
Ukip says babies born to immigrants in the UK should be classed as migrants – which would include Nigel Farage’s own children
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Exclusive: UK approved £7m Israeli arms sales in six months before Gaza conflict
iJobs Money & Business
£6000 - £60000 per annum + Bonus and Benefits: Ampersand Consulting LLP: UI De...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
Negotiable: h2 Recruit Ltd: A rapidly expanding, global Software/ SaaS Vendor ...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...