Maidstone United have announced financial results for their fifth season back in the town.
Maidstone United Holdings Ltd, which groups together all the club’s business activities, reported an annual turnover to 30 June 2017 in group companies of £1,718,355, up from £1,535,598 in the previous period. Accounting profit was £211,736 – this is the fifth consecutive year in which the club has recorded a profit.
Turnover increase was steady year-on-year and reflected increased attendances and ticket prices following promotion to the National League in 2016, as well as steady contribution to revenues of company sponsorships and advertising, room hire for events, hiring fees for the 3G pitch and academy revenue.
Player wages and ancillary expenses were higher than in the previous period as the club sought to consolidate its National League status, while remaining prudent with regard to overall income. When measured as a percentage of turnover, playing and management wages remained below 30%.
All spare cash flow from profits and from reserves has already been reinvested in The Genco Stand project, which has provided the 4,200 capacity necessary for the club to play in the National League.
The need to keep expanding the stadium to comply with league requirements is likely to be an on-going challenge, as the club seeks to fulfil its medium-term ambition to return to the English Football League.
Club co-owner Oliver Ash said: “We are delighted with the results of our fifth season’s trading. It is no mean feat to be able to declare a fifth consecutive year of profitable operation in a business sector notorious for unsustainable business models. We will continue to be prudent in order to ensure the club is secure and self-sufficient for the foreseeable future. We see in these figures further evidence of the success of the 3G model, which has enabled the club to maintain an attractive football and social facility, which is appreciated by thousands of local people.
“Our disadvantage with regard to other competing clubs is that our stadium has been built from scratch over six years. It is too small every time we push for promotion. We now need to build up cash resources even faster if we are to develop the stadium further in order to be eligible for promotion to the EFL.
“The next phase of development, for which we expect to apply for planning permission early this year, will be a very expensive project to develop the South End. We now need more local companies to come on board, together with our existing business partners, and share the benefits of the positive image we have as a club and business.”
Fellow co-owner Terry Casey added: “We look back on the last five years with an immense sense of pride. To still be turning a profit during a period of unprecedented growth is some achievement and that’s been made possible by our wonderful supporters and an effective business model, which includes the 3G pitch and venue hire.
“Match day attendances and season tickets sales are up year-on-year and we thank all the fans for their loyal support.
“The next challenge is never far away but we must ensure the club continues to be in good shape and find ways to generate the funding needed to move on to the next level.”