Wigan 'encouraged' by results despite increased losses
Monday 20 February 2012
Wigan's net loss rose by £3.2million last season but chief executive Jonathan Jackson believes the club's overall results are "encouraging".
Although the deficit for the 12 months ending May 21 2011 was up to £7.2m, for the first time in five years the Latics reported a profit in earnings before interest, tax and other associated areas.
Figures released today show turnover increased by 16% to £50.5m on the back of an improved Premier League broadcasting contract while salary costs remained stable.
The club's net debt was almost unchanged at £72.2m, although more than half of that has since been converted to equity and therefore virtually written off what was owed to chairman Dave Whelan.
"Despite the increase in net loss the results overall are encouraging," said Jackson in a statement.
"By increasing turnover and controlling costs at the same levels as the previous year the club is continuing to progress to an annual break-even position.
"We continue to strive to maintain our position in the Barclays Premier League by significant investment in the playing squad whilst at the same time employing prudent financial management to ensure the club's long-term stability.
"This position would not have been possible without the continued financial support of chairman David Whelan.
"The post year-end conversion of debt to equity has significantly strengthened the club's financial position and has, to a very significant extent, written off the debt owed to Mr Whelan.
"The club cannot continue to make losses every year and we are continuing to shape all aspects of the club to ensure the long-term future remains positive both on and off the pitch."
Profit before earnings before interest, tax, depreciation and amortisation of players was £4.9m, compared with a loss of £2.9m in the previous year.
The wage bill, Wigan's most significant expenditure, rose by only £500,000 to £39.9m but while transfer spending dropped by £300,000 to £14.6m, profit from sales dropped to £2.3m from £13.3m the previous year.
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