Profits Slump at Newcastle - 30/10/2005

Newcastle United saw its profit to disappear in the year to 31 July 2004 as television and broadcasting revenues fell by 17 per cent to £27.9m and it suffered exceptional operating expenses of £5.41m. The club finished a disappointing 14th in the 2004-5 Premiership campaign. Chairman Freddy Shepherd said, 'The level of overall performance achieved fell below the standards we set for ourselves.' The opening of 'Shearer's sports bar' did help to boost catering revenues by 28 per cent from £5.3m to £6.8m. Pre-tax profit collapsed from £4.22m to £16,000 on turnover of £87.1m, down from £90.5m. The operating loss after exceptionals was £8.97m, compared with £8.28m profit in the preceding year. Despite this news, the shares remain unchanged at 46p, valuing the club at £67m.