Man United chief executive Omar Berrada has spoken at length about the Premier League club's latest financial results after recording a £13.3million profit
Manchester United co-owner Sir Jim Ratcliffe (L) looks on next to chief-executive Omar Berrada
Manchester United co-owner Sir Jim Ratcliffe (L) and chief-executive Omar Berrada are tasked with turning the club around
(Image: Getty Images)
Everything you need to know about Manchester United's latest financial results
Despite missing out on lucrative European competitions this season, Manchester United reported a £13.3 million operating profit for the first three months of the campaign. This represents a significant financial recovery compared to the £6.9 million loss the club recorded during the same period last year.
Total revenue for the period dipped slightly by two per cent to £140.3 million, largely reflecting the men's team's absence from the Champions League. On the pitch, the men's side currently sits sixth in the Premier League, while the women's team is competing strongly in third place.
Chief executive Omar Berrada claims the results highlight the resilience of the business as they continue a major transformation of the club. He argues that difficult decisions made over the past year have successfully created a lower, sustainable cost base for the future.
Financial concerns remain visible as the club's gross debt has risen to a record high of £749.2 million. This figure combines the debt from the Glazers' original leveraged takeover and a growing reliance on a revolving credit facility.
The club's available cash balance has dropped dramatically compared to the figures reported in September of last year. The reserves fell from approximately £149.6 million down to £80.5 million during this reporting period.
A wide-scale redundancy scheme overseen by Sir Jim Ratcliffe's Ineos group resulted in one-off costs of £8.6 million during the quarter. However, these cuts contributed to a £6.6 million decrease in employee wages and benefit expenses compared to the previous year.
Sponsorship revenue fell by over nine per cent to £47 million, primarily because the club has been without a training kit partner since the deal with Tezos ended. To address this, club sources suggest that positive talks are currently taking place with potential new partners.
There were minor decreases across commercial, broadcasting, and matchday revenue streams due to the current lack of European football. Despite these challenges, Manchester United confirmed they are still on track to record total annual revenues between £640 million and £660 million.
READ MORE: Manchester United confirm first quarter financial results as 'difficult decisions' explained