ANNUAL ACCOUNTS 2021 SUMMARY

As announced by the Club on Friday, the AGM will be held at Tannadice on 25 February 2022. Ahead of the event, Finance Director Derek Bond has reported the following:

The year to 30 June 2021 was heavily affected by the COVID-19 pandemic that continues to disrupt business and the associated negative impact on match day and non-match day income of an estimated £4.2m of lost revenue culminated in a £2.3m operating loss. 
The reduction on operating loss from 2020 of some £0.9m was buoyed by continued loyalty from our supporters and was enhanced by a successful business interruption insurance policy claim that will continue to recoup further losses incurred due to the Scottish government restrictions that have impacted on the current season as well. £1.9m has been received so far from our insurers.

Any severe impact on the Club’s cashflow was eased by the Scottish government providing the Club with a debt facility of £2.8m in February 2021. The loan is interest free and repayable over 21 years after an initial 18-month payment holiday.

The loyalty and continued support of our fans was again demonstrated over the financial year with an ongoing commitment to buy season tickets for season 2020/21 despite the uncertainty around attending matches. It unfolded those fans were unable to attend any matches and were due £1.1m in credits. While these credits are provided for in full in the accounts, the Board are delighted to report most season ticket holders, totalling 1.0m, chose to waive their rights to credit.

The Board were also extremely grateful to a number of supporters who made significant cash donations to the Club during the year and also the Dundee United Supporters Foundation donating £0.1m as part of a commitment from the club to enhance and develop Gussie Park into a fitting Academy hub and facility for the excellent community work undertaken by the Dundee United Community Trust. 

Significantly, the Board made the decision to fulfil employee contracts and remain committed to our Academy vision despite the continued financially difficult environment created by Covid-19 in Scottish Football. The Board continue to view the Academy as a fundamental pillar of the Club’s future success.

Total wages increased by only 7% (£0.3m) despite the Club operating in the Premiership and this was in no small part accredited to staff and players agreeing a wage cut during the challenging period when no income was coming in.

As we hopefully come out of the impact of Covid-19, the Board are very excited at the high quality of young players now becoming available for the first-team. 13 Academy graduates have made first-team appearances this season, all while the Club maintains a place in the ongoing fight for top six position and hopefully more. We see this as a fitting endorsement that the substantial investment in the Academy over the last three years is now beginning to bear fruit.

The Board is confident looking forward that the Club is in a strong position both on and off the field as it continues the journey despite the pandemic. The investment in the playing squad, staff and facilities have continued alongside strengthening existing and forming new commercial partnerships and the infrastructure is in place for the club to become a sustainable model for the future as we continue to pursue success.