Arsenal Holdings plc: Financial results

Arsenal Holdings plc results for the year ended 31 May 2010

ARSENAL'S PROPERTY BUSINESS DELIVERS SIGNIFICANT REDUCTION IN DEBT

• The completion of sale of 362 (2009 - 208) private apartments at Highbury Square and the social housing site at Queensland Road generated £156.9 million of revenue from property (2009 - £88.3 million) and allowed the Group to repay £129.6 million of bank loans.
• The Group's property business is now debt free and generating surplus cash for the Group. The overall level of Group net debt had been reduced to £135.6 million (2009 - £297.7 million) at the balance sheet date.
• Group turnover increased to £379.9 million (2009 - £313.3 million) boosted by the income generated from property sales.
• Operating profit (before depreciation and player trading) in the football business was £56.8 million (2009 - £62.7 million) after increased wage costs.
• Operating profit in the property business was £15.2 million (2009 - £7.8 million) reflecting the sales activity at Highbury Square.
• Profit from player trading of £13.6 million (2009 - £2.9 million).
• Group profit before tax was £56.0 million (2009 - £45.5 million) and profit after tax was £61.0 million (2009 - £35.2 million).

Commenting on the results for the year, Peter Hill-Wood, non-executive Chairman, said:

"The most pleasing aspect of these results is that the returns generated in the property business during the year, particularly at Highbury Square, have allowed us to repay £130 million of bank loans and significantly reduce the Group's overall net debt. We now have a debt free property business which is accumulating surplus cash as further unit sales are made at Highbury Square and which has three further property assets to realise over the next few years."

Ivan Gazidis, Chief Executive, said:

"The competitive landscape makes it ever tougher to achieve success on the field and standing still is simply not, and never has been, an option for the Club. It is important that we continue to develop a vibrant and robust business with sufficient revenues to sustain success. The Group has made good progress over the last year and I am excited by the opportunities which we have in front of us."

• Click here for the full financial report (336k .DOC)
• Click here for the full financial report (271k .PDF)

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial information differs from legislation in other jurisdictions.

[Friday, September 24, 2010]

Print this page Email to a friend