Shares in [Manchester United Plc (NYSE:MANU)](https://www.proactiveinvestors.co.uk/NYSE:MANU/Manchester-United-Plc/) traded higher on Friday as the struggling football giant told investors that it ‘remains in compliance’ with the Premier League’s Profit and Sustainability Rules (PSR).
United said it was also in compliance with UEFA’s Financial Fair Play Regulations.
After a tough season on the pitch, its worst campaign for around 50 years, which included missing out on all European competition next season, there had been growing speculation that United would fall foul of the league’s financial rules.
Such a situation would have potentially resulted in the club starting next season with a points deduction, further hobbling its sporting and financial fortunes.
United, however, gave a ‘better than feared’ appraisal of its financials for the three months ended 31 March (its third financial quarter). Prompting the shares to climb in New York.
The shares were up 13% changing hands at $15.58 in Friday’s trading.
Revenue increased 17.4% year-on-year to £160.5 million, and it reported earnings (adjusted EBITDA) of £51.2 million, which marks a 273.7% year-on-year improvement.
The company posted an operating profit of £700,000, compared to a loss of £66.2 million in the same period last year.
United told investors its guidance for fiscal 2025 has ‘tightened’ as it forecast revenue between £660 million and £670 million, with earnings (adjusted EBITDA) seen between £180 million and £190 million.
The financial numbers (which don’t intentionally do irony) also noted that investment in United’s playing squad had resulted in £15.5 million more spending on intangible assets.
United’s debt continues to stand at $650 million – but currency moves in the quarter meant that, in British pounds, the ‘non-current’ debt had reduced to just over £500 million from £511 million at end of the last quarter.
The club retains a revolving credit facility, and current borrowings increased to £212.3 million from £143 million.
It had £73.2 million of cash and equivalents at the end of the quarter (on 31 March).
“We had a difficult season in the Premier League, which we all know fell below our standards and we have a clear expectation of improvement next season,” chief executive Omar Berrada said in a statement.
Barrada, meanwhile, also talked up the club’s plans to invest in infrastructure, including the ongoing redevelopment of the training complex, a project to build a new stadium and the regenerate the surrounding area.