North End turnover eaten up by wages

North End owner Trevor Hemmings
North End owner Trevor Hemmings

Preston North End’s increased turnover in the last financial year was swallowed up by staff wages.

The Lilywhites have filed their latest set of accounts with Companies House for the year ending June 30.

They show that turnover was up by 27% to £13.5m.

However, wages, social security costs and contributions to pensions also increased by 27% to £13.5m in 2016/17.

Total staff costs were equivalent to 100% of the turnover.

Pre-tax losses were reduced by 35% to £2.9m.

The report which accompanied the accounts, again stressed the importance of the support of North End owner Trevor Hemmings.

In their report, the club’s directors said: “Turnover for the year was £13.5m, which was £2.9m higher than the previous year, mainly due to increased central distribution income from the Premier League and the English 
Football League.

“In addition, the income from FA Cup gate receipts was higher.

“Average attendances were 12,611 for 2016/17 compared to 13,007 in 2015/16.

“Season ticket numbers were 7,606 in 2016/17 compared to 7,723 for 2015/16.

“Cashflow continues to be adverse as the club has contracted a squad with wages which are high in comparison to its revenue.

“The company has therefore been reliant on the financial support of its shareholder.”

Hemmings’ involvement with North End goes back to the early 1970s, with him buying the club in 2010.

Last season, PNE got £6.8m from Premier League and Football League distributions, and from televised games.

Turnover from season and matchday ticket sales climbed by 13% to £3.7m.

Included in that 
figure was the FA Cup clash with Arsenal in January which drew a 22,185 crowd.

At a fans’ forum at Deepdale last month, North End’s chief executive John Kay told supporters that in the last 
financial year, Hemmings had put £5m into the club.

It was anticipated that £5m would be needed from the owner this financial year.

Season ticket sales for this campaign were 8,254, with North End this week having launched a ‘Deepdale Dozen’ offer which gives supporters the chace to watch 12 games for the price of 10.

That offer starts with the Nottingham Forest match on December 23.