Losses down, revenues up at Preston North End

CHAMPIONSHIP football club Preston North End slashed its losses as revenues grew nearly 30% in the six months to the end of December.

PNE, which continues to be supported financially by multi-millionaire Lancashire businessman Trevor Hemmings through his investment company Guild Ventures, cut its pre-tax loss by half from £4.76m to £2.3m.

Thanks to increased levels of central funding and revenue streams coming from the first time from the new Minerva Health Club and Invincibles Pavilion, turnover rose to £5.2m from £4.03m.

The club managed to rein in its costs as total wages and salaries, rose just 2% to £5.84m – but this still exceeds its turnover.

Preston said during the period its had secured a new £1m bank loan – on top of the £1.2m overdraft facility it uses – while major shareholder Guild Ventures had advanced a further £1.3m of loan funding. Guild’s support has continued in the second half of the year.

Chairman Derek Shaw said despite the tough economic environment, which has seen many corporates cut hospitality sponsorship budgets, the club was doing well in this regard.

“While the economic climate has continued to be challenging, we have maintained good working relationships with the majority of our corporate sponsors.

“With the addition of the new stand, we have also been entertaining record numbers of hospitality clients at games during the current season.”

Mr Shaw said the decision to sack team manager Alan Irvine had not been taken lightly, nor been easy, but had been made in the best interests of the club.

He explained: “In a competitive league, and with the major shareholders lending the group considerable sums to funds its operations, the board felt it had to act swiftly.”