Manchester Uniteds owners have been under constant fire since they arrived and we are finally starting to hear some less damning stories in the media. What the detractors cannot argue with is the numbers behind their ownership. I blogged about the Glazers earlier this month and I said then that I didn't see much reason to complain. Well it seems that they are running a pretty tip-top outfit from the latest financial reports ahead of the Singapore IPO 2 tier float.
United’s gross debt stands at £458.9m and the club paid £51.2m in interest payments to bond holders in 2010-11, equivalent to 46 per cent of annual profits.
Interest payments and other costs such as amortisation of player contracts and depreciation reduced the pre-tax profit to £29.7m.
The commercial growth saw cash reserves boosted to £150.6m at the end of the financial year, reducing the club’s net debt to £308.3m, the lowest since the Glazer’s bought the club in 2005. The Glazers also bought back £63.8m in bonds issued in the 2009 re-financing.
The cash reserves may have altered since the end of June but the figures released today do include the £52m spent on Phil Jones, David de Gea and Ashley Young in the summer transfer window.Manchester United have posted record operating profits of £110.9 million for the past financial year.
The club have also recorded a record revenue of £331.4 million - an increase of £45 million from last year and passing £300 million for the first time - according to figures for the year ended June 30, 2011.
United, who won the Barclays Premier League title and reached the Champions League final during the period, have also recorded a commercial turnover of £103.4 million.
The latest results come as the club considers a plan to raise up to £614 million by floating on the Singapore Stock Exchange.
The figures contrast with those of last year when losses hit a record £83.3 million, largely due to the costs of a bond issue.
The 15.7% rise in commercial revenues is hugely encouraging for the club and does not include a new £10 million-a-year training kit sponsorship deal with DHL.
The Singapore floatation is being considered by the Glazer family, the club's owners, as a means of addressing debts.
Net debt is down to £308.3 million from £376.9 million, according to the new figures.
It is thought the flotation could be completed by the end of the year.
United, having struggled to sell corporate boxes last year, have also enjoyed an increase in match day turnover from £100.2 million to £108.6 million.