Newcastle United plc Report Record Profits - 11/10/2003

Last year's successful season led to record profits and turnover for the club in the year to 31 July 2003. Turnover was up from £70.9m to £96.7m. Pre-tax profits were £4.37m compared with losses of £3.08m last time. At the operating level, before player amortisation and trading, profits were £27.6m as against £48,000. Participation in last year's Champions League competition had added £19m to turnover, reflected in income from television and broadcasting almost doubling to £41.7m. The club's wages-to-turnove ratio was 47 per cent, below the 50 per cent limit recommended by accountants Deloitte and Touche. A final dividend of 2.04p was recommended, leaving the total for the year unchanged at 3.07p. Whether this year's so far less successful season will yield such good results remains to be seen, but in the short term the shares closed up 5p at 36.5p.

The club also revealed that it is in negotiations with producer Lawrence Bender about featuring in a trilogy of football-related Hollywood films. Chairman Freddy Shepherd said that the film would give the club 'enormous publicity' in new markets such as Asia.