£409,048 Profit for Hereford United

Hereford United have announced an excellent profit of £409,048 for the year ending May 31 2008. These are by far the best results for a long time. It is the fifth consecutive year that the club has traded profitably.

Turnover increased to £2,364,228.

"Success on the field helped achieve those figues," commented chairman Graham Turner.

"However once again player transfers have been a significant factor.

"I feel that the Club following good business pratices and prudent spending will be in a better position to withstand any financial crisis that will hit the sport over the next three seasons."

At the end of the period the club had net liabilities of £243,250. This debt includes the £1M+ owed to the developers.

Assets included £939,063 in the bank. The club received £53,486 from investment income.

Wages and salaries rose to a figure of £1,264,661, up from £1,006,903. The average number of people/players employed went up from 26 to 28.

Tranfer fees received were £269,139. However transfer and loan fees payable rose to £118,989 from just £20,000 the previous year.

The club has clarified the position regarding the leases and possible work on the stadium.

'Hereford City Council owns the freehold of the ground, Richardson Developments have been assigned the leases, HUFC 1939 and HUFC 1982 have mirrored under leases and pay rent directly to Richardson Developments.

'HUFC 1939 and HUFC 1982 are responisible for repair and renewal of the ground and its facilities.

'HUFC 1939 and HUFC 1982 have negoiated a Joint Venture Agreement with Richardson Developments to redevelop the ground incorporating Commercial and Spectator facilities. The repayment of the two loans and accrued interest is incorporated in the Joint Venture Agreement. The loans are due to be repaid out of the proceeds gained from the Joint Venture going ahead in the future.

'In view of the current economical climate there are no immediate plans for work to commence therefore the loans are repayable after more than one year.'

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