Manchester United today posted record operating profits of £110.9million for the year ended June 30, 2011.
The club have also recorded a record revenue of £334.1million, an increase of £45million from last year and passing £300million for the first time. That £334.1million in revenue beat the previous record of £313m that Arsenal had previously announced.
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.
United, having struggled to sell corporate boxes last year, have also enjoyed an increase in matchday turnover from £100.2million to £108.6million.
The rise in turnover was driven by a £22m (37%) increase in commercial revenue, which exceeded the £100m barrier for the first time at £103m. Commercial growth was driven by the first year of the new shirt sponsorship deal with AON, and will increase again in 2011-12 following the £10m-a-year training kit sponsorship agreed by DHL last month.
While turnover increased so did costs, with increased player wages and bonuses contributing to a £35m increase in operating expenses, which rose from £185.2m in 2009-10 to £220.5m in the year to June 2011.
Staff costs rose by £21.2m, £9.7m of which was paid in bonuses and the remaining £11.5m in increased wages.
For an in-depth look at United’s financial numbers check out Andersred.