Fleetwood Town post losses of £6m in latest financial accounts as club remains dependent on owner Andy Pilley
Fleetwood Town’s latest financial accounts show the club posted losses of almost £6m during the 2018/19 season.
The accounts, which are made up to June 30, 2019, show losses of £5.95m, up drastically from the previous year when they posted a small profit of £64,020.
Total losses were £15m, up from £9m in 2018.
Fleetwood continue to be financially reliant on the input of owner and director Andy Pilley, the accounts said.
“The company requires continuing financial support from its director, Andy Pilley, fellow group companies and other companies controlled by him,” the accounts read.
“Pilley has indicated that he is willing to provide such continued financial support for the foreseeable future.”
The accounts also showed that £17m was owed to Pilley’s group companies, up from £12.5m the previous year.
“Assurance has been given that these loans will not be recalled until the company is in a position to repay them,” the accounts add.
Turnover decreased by 14 per cent from £6.3m in 2018 to £5.4m in 2019.
This was linked to player sales, as Amari’i Bell and Devante Cole had been sold to Blackburn Rovers and Wigan Athletic respectively during the previous year.
The accounts cover the 2018/19 campaign, when Fleetwood finished 11th in Joey Barton’s first season as manager.
The club employs 50 playing staff and 165 non-playing staff, with their collective salaries amounting to £6.29m, down from £6.49m the previous year.
“The club continues to invest in the long-term future, namely signing 11 young scholars ready for the 2018/19 season,” the accounts say.
“During the season, some of them had involvements in first-team football to support their development.”
The implications of Brexit on the club were also discussed.
“Following the UK leaving the European Union in January 2020, uncertainty has increased surrounding the outlook of the UK economy,” the accounts say.
“Although at present there appears to be minimal impact on consumer confidence, this uncertainty may ultimately impact on market confidence and as a result could potentially impact on the demand and price for products and services, which in turn may affect revenue, profit and cashflow.”
The Highbury club also say they are “taking steps” to mitigate the financial impact of the current coronavirus pandemic.
“At the time of filing we are faced with the coronavirus,” the accounts go on to state.
“While no-one can predict the extent of the impact this will have, the company is taking steps to protect against the worst effects.
“This includes eliminating unnecessary meetings and travel, preparations in case employees need to work from home, implementing improved hygiene processes and protecting the company’s liquidity.
“The company is monitoring the situation daily.”
The principal risk to the business is poor on-field performance which could result in relegation to League Two.