Freddy Not Concerned About Loss

Last updated : 28 October 2005 By Footy Mad - Editor

Newcastle chairman Freddy Shepherd today revealed his hope that a "major investment" in players, capped by the £17million signing of England striker Michael Owen, will deliver success for the club's patient fans.

Newcastle's preliminary results, for the year ended July 31, 2005, were released on Friday showing a profit before interest and taxation of £4.5million, down £4.3million on the previous year.

Shepherd admitted cup progress last season - Newcastle reached the FA Cup semi-finals and the UEFA Cup quarter-finals - had been offset by the club's 14th-place finish in the Premiership which was "below the level we demand".

Operating profit for the year, before player amortisation (devaluation) and trading, was down from £20.4million to £6million while total operating loss for the year was £9million compared to a profit of £8.3m the previous year.

Player trading during the year resulted in a net profit of £13.5million, compared to £0.3million the previous year, thanks in main to the sales of Jonathan Woodgate, Craig Bellamy, Aaron Hughes and Andy O'Brien.

Group turnover during the year was £87million, down from £90.2million the previous year, and operating expenses were up from £69.7million to £80.9million.

Match revenues were up 4% from £33.9million to £35.3million due to three additional home games, sponsorship revenues were up 1% from £9.3million to £9.4million and revenues from catering were up 28% from £5.3million to £6.8million.