Motherwell Football Club has posted a record turnover and profit in its financial results for the year ending 31 May 2018.
In season 2017/18, the club achieved a Ladbrokes Premiership finish of seventh place and, for the first time in 67 years, reached both domestic cup finals.
The additional income from the runs to both the Betfred Cup and William Hill Scottish Cup finals, together with effective player trading, resulted in an unprecedented financial year for the club.
Turnover for the year increased significantly to £6.84m, a jump of £2.65m from the previous year. Despite an increase in costs, the club were able to produce a profit for the year of £1.72m, a record number, and a £1.9m jump from last year’s loss of £181,000.
There were notable increases in gate receipts, sponsorship and advertising, commercial and other associated income generated by the club, predominantly on the back of player trading.
There was also a modest increase in broadcasting rights, emanating from an improved league position.
The club, along with its fellow Premiership counterparts, continued to benefit from significant UEFA solidarity payments as a result of Celtic’s progression into the UEFA Champions League group stages in 2017/18. The payments received were in line with the previous year.
The club has continued to trade effectively in the transfer market, with yet more increased income from player trading, training compensation and sell-on fees.
A total of £1.03m was received, an improvement of £481,000 on the previous year. This came primarily from the sales of defender Ben Heneghan to Sheffield United and, in January, striker Louis Moult to Preston North End.
Costs for the year increased by £1.35m. Staff costs made up the majority of that increase on the previous year, through a combination of increased player bonuses in light of improved performance in both the league and domestic cups, a modest increase to the playing budget with a view to an improved position on the park and the introduction of Project Brave.
The latter brings the requirement for more full-time staff within the youth academy, ensuring the club retains its spot at the elite level of player development in Scottish football.
Other cost increases, for example across staff, stewarding, power, light and heating, reflect the increased workload from improved performance, with more games played at Fir Park.
The club has also invested significantly in improvements to the stadium, namely the full replacement of the old roof on the John Hunter Stand, the installation of a new scoreboard in the South Stand, as well as the upgrading, decorating and modernisation of the Davie Cooper, Centenary and Millennium Suites.
During the course of the 2017/18 season, the club also introduced a brand new online ticketing system, which launched in time for season ticket renewals in May, and commissioned the building of a new club website, launched shortly after year end.
In addition, the club continued to invest heavily in the playing surface, with the introduction of a hybrid grass/synthetic warm-up area behind both goals.
This, together with the investment in a talented staff group, has resulted in the Fir Park pitch being formally recognised as the best in the Scottish top flight, a much-improved position from several years ago.
The club has also reduced its debt owed to Mr John Boyle and Mr Les Hutchison by a combined £545,000 over the year.
Even with these results, the club still needs to look at its operating model to ensure its medium and long-term financial viability. The directors are carrying out a fundamental review of our finances to ensure that the club continues to operate in as financially prudent a manner as possible.
Shareholders are invited to attend the club’s Annual General Meeting (AGM) on Monday, 17 December 2018, starting at 7pm in the Millennium Suite, Fir Park.
Any shareholder who would wish either a printed or e mailed copy of the audited accounts please send a request to email@example.com or telephone 01698 338007 before close of business on Tuesday 11 December 2018.