Shrimps make profit in promotion season

Saturday, 28 May 2022 10:25

Morecambe FC made a pre-tax profit of just over £725,000 in their 2020/21 promotion winning season.

The published accounts for the year to May 31^st, 2021, show a pre-tax profit of £725,355, and a net profit of £392,666. This was in contrast to season 2019/20, where the Club recorded a loss of before tax of £317,713.

The whole of the 2020/21 season, Morecambe’s fourteenth as a Football League Club, was played behind closed doors, due to government covid-19 restrictions, and only limited crowds were allowed for the Shrimps’ play-off games, including the final at Wembley.

The season ended with the club claiming its highest ever league position and represented its fourth year operating a Category 3 Academy.

Writing in the Club’s Strategic Report, Co-Chairman, Graham Howse, said: ‘’The Club achieved its highest ever finish in the football pyramid in 2020/21, culminating in victory in the Play-off Final to gain promotion to League One. Good cup runs were achieved in both the FA and EFL Cups before defeats in the 3rd Round of both to Premier League opposition.

‘’This marked a season which exceeded the expectations of all those concerned with the club and most outsiders, built on the solid foundations put in place in the previous 13 years as a Football League club.

‘’The key elements to the company’s strategy for growth are: to continue to invest in our staff, both footballing and non-footballing and facilities; further develop, our retail, commercial and hospitality business to help diversify income streams and margins; and enhance awareness and the reach of our brand.

‘’Achievements during the 2021/22 have followed on from this, with performances and victories against some of the largest and strongest teams not only in League One but also the country has helped the club maintain its League One status, whilst enjoying a FC Cup run culminating in playing Tottenham Hotspur away from home in the 3rd Round.

‘’The club’s performance against the odds throughout 2020/21, rounded off by victory in a Wembley Final enhanced awareness of the brand both locally and nationally. The continued strategy of ensuring that the club is run on equitable and fair grounds in dealings with both its own employees, supporters and the wider footballing community ensured that its existing reputation was only enhanced by success on the field.’’

‘’The Directors believe that (the re-appointment of manager Derek Adams) has resulted in a management structure and playing staff capable of challenging at this level. Off the pitch, the company has invested in non-footballing staff to embrace the demands placed upon it by operating in League One. The Board is confident that in all aspects the club are better placed now to compete and remain at this level.

‘’The directors believe that the company will be able to continue to operate and meet its obligations over the next 12 months.’’

The accounts show Morecambe FC with ‘tangible fixed assets’ of just over £7.5m, with the Club’s Net Equity valued at around £4.5m.

The accounts also show existing borrowings of almost £2m, including director loans, a bank loan of £387,675 (2020: £560,646), and a £119,800 interest free loan from the EFL repayable in instalments, with the final payment due on 1 April 2024.

The Club benefited from a government grant of £448,610, while player sales netted £121,000.

Bond Group Investments Limited own 80% of the company's share capital and are the ultimate controlling party of the business.

You can read the accounts in full here