Planet Swans ArchivesWhile the club saw an increase of 44 per cent in general commercial income, Swansea still lost £1.28m on a turnover of £2.095m. Ninth Floor chairman Alan Wix also confirmed that while preparations for the club’s flotation on the AIM were complete, they would delay the float until market conditions were suitable.
The flotation, which led to the sacking of former chairman Steve Hamer, was planned first for last May and then put back until this month. “The football club had a very successful year gaining promotion to Division Two through winning the Division Three championship,” explained Wix. “The club saw an increase of 44 per cent in general commercial income.
However, overall income from ticket sales was considerably lower than the previous year without the benefit of the previous season’s extended FA Cup run. “Overall, turnover was therefore broadly constant at £2.095 million (1999 £2.042m) and pre-tax losses were £1.282m (1999 £1.152 million).
“Regarding the proposed move to a new 25,000-seater stadium at Morfa in the summer of 2002, Wix added: “While this project has taken much longer than originally anticipated, I do believe that we are now able to plan our future with confidence. “The football club is currently in detailed negotiations with Swansea Rugby Club and Swansea Council on the ownership and management structure of the new stadium.
“As presently envisaged, the new developments will provide for a 25,000 all-seated stadium with 28 executive boxes and an executive restaurant seating approximately 300 people. “On the basis of current projections no external finance by the football club is thought necessary for the new stadium, after taking into account available grants, the sale of commercial sponsorship rights and the proceeds from the disposal of our existing lease on the Vetch Field.
“The football club is benefiting from the increased income which is payable to a Division Two club on centrally negotiated media deals and has also seen a significant increase in season ticket sales.Cash flow has been substantially improved due to the receipt of advance payments on the new three-year league television deal and the receipt of advance payments on the centrally negotiated internet deal. “The company has not been required to support the football club for the first half of the season.
Support will be available in the future, if required.”Ninth Floor, who recently de-listed from the full London Stock Exchange in favour of the AIM, confirmed profits on ordinary activities before taxation of £664,000, taking into account the profits from the sale of Silver Shield of £2,557,000 and a provision of £500,000 for unresolved differences on a net asset warranty claim.
While Wix predicts a bright future for Ninth Floor, shares in the company have dropped dramatically recently.
