Dean Hoyle says a reduction in annual losses to £4m is a sign Huddersfield Town are getting ever closer to standing on their own feet financially.
The £4.02m figure revealed in the accounts for the 12 months to May 31 is down by £1.67m on that for 2011-12.
It reflects Town’s promotion to the Championship – and as manager Mark Robins prepares for tomorrow’s key home clash with Yeovil, owner-chairman Hoyle says the value of retaining second-tier status cannot be overstated – and the club-record £8m sale of striker Jordan Rhodes to Blackburn in August 2012.
That deal helped Town record a best-ever profit on player sales of £7.11m (up from £2.36m and not including Jack Hunt’s £2m move to Crystal Palace).
Income rose from £7.39m to £11.23m, helped by a rise in money from the Football League and TV (£4.39m as opposed to £1.08m) and improved commercial income (1.51m compared to £1.37m).
And for the fifth successive year, there was an increase in underlying recurring turnover (excluding one-offs like cup runs and TV), this time by 59% to £10.42m.
Underlying contribution (the club’s ability to pay for its football activities and stadium independent of shareholder support) was £5.47m (up 79%) with rent and other contributions payable to Kirklees Stadium Development Limited £887,000 compared to £838,000 the year before (the figure excludes matchday stewarding).
The flipside of playing in the Championship was a big rise in football expenditure, up 61% from £8.09m to £13.05m, the figure including salaries for players and staff (£11.8m), agents’ fees, scouting, recruitment, travel, IT, analysis and medical costs.
There was £1.07m of capital expenditure investment, primarily on the Canalside training complex, with the figure for investment in transfers £2.22m (up from £1.86m and not including James Vaughan, Jonathan Hogg and Adam Hammill).
The overall total asset value of player registrations was £1.98m, which the club say is considerably below resale value.
Hoyle said: “2012-13 ended on a high note, with the retention of Championship status.
“The changes and progress made in the first season back in the Championship after 11 seasons should not be underestimated.
“That success marked a major step forward on the field and allows us to continue moving forward in many different ways.
“Getting the club back on track is a long-term job. Lots of hard work and a considerable amount of money have been put in to get us to this point, but the club is moving closer each year towards standing on its own feet.
“This is because of the combination of lower losses from Financial Fair Play rules, our own improved commercial trading plus crucially increasing cash from player trading.
“This reduces the reliance on me as an individual and that is of course good for everyone seeking a vibrant and sustainable club.
“Adjusting to life in the Championship has been tough but also exciting. I remain fully committed to the club.
“Buying and selling players, the wages we can afford and the cash burden on me mean tough decisions have to be made.
“It has brought me huge pride to lead the club in the Championship and see Canalside develop and I am looking forward to continuing the journey.
“The support I receive from the fans as chairman is second to none and always greatly appreciated in return.
“I will always be honest, work in the best interests of the club and give it everything.”
Town chief executive Nigel Clibbens said: “The level of overall losses were as expected and planned for.
“The headline reduction is, in large part, due to the record- breaking sale of Jordan Rhodes and non-recurring income from cup runs and TV, offset by contract termination costs and additional player wages.
“We are progressing well in reducing the level of recurring losses and the level of shareholder support needed to run the club. Our development reflects our commitment to implementing the plan.
“In the year, Dean Hoyle’s continuing funding of transfers for new players, higher football expenditure and the completion of enduring projects like the training ground at Canalside has once again been very significant, but critically this was accompanied by retention of our Championship status.”