CARDIFF CITY REPORT PROFIT DESPITE FALL IN TURNOVER.
Cardiff City have returned to the black at the pre-tax level helped by owner Vincent Tan's decision to write off more than £13m owed to him, accounts published on Companies House today have revealed.
The results for Cardiff City Football Club Ltd show turnover fell to £37.6m in the year to 31 May 2015 from £79.9m in 2013/14 following relegation from the Premier League. Gate receipts also dipped with average attendances down to 21,147 from 27,440.
The Bluebirds incurred an exceptional cost of £3.2m relating to relating to the "change of football and senior management" following the sacking of manager Ole Gunnar Solskjær during the season and appointment of Russell Slade as his replacement.
However, Cardiff reported a pre-tax profit before player trading of £3.8m in 2014/15, compared with a £11.7m pre-tax loss the season before.
This was aided by profit from transfers, with the club posting a loss prior to player trading of £5.9m, reduced from £6.6m in 2013/14.
The Bluebirds also reported exceptional income of £13m relating to the discharge of an amount owed to Vincent Tan.
Tan recently announced plans to convert the remainder of the club's £40m debt to equity over the next five years, in line with the maximum permitted Financial Fair Play regulated figure of £8m per year.
In their report accompanying the results, the directors said 2014/15 had been one of consolidation after "disappointingly falling short" of the goal of an immediate Premier League return. Cardiff finished 11th in the Championship last season.
The loss before player trading was put down to "increased Premiership player related costs of 2014 not decreasing in line with the fall in revenue".
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