Ebbsfleet United announce pre-tax losses of £2.6m in 2018 and 2019 and suffer relegation in 2020

EBBSFLEET UNITED have made a pre-tax £2.6 million loss in 2018 and 2019, accounts at Companies House reveal.

 

The Stonebridge Road club suffered relegation from the National League to National League South in 2020 – the year when the coronavirus health pandemic brought football to a halt.

In 2018, the club had 60 staff (including 38 players and player management) and splashed out £2,116,640 in wages.

In 2019, the club had two fewer staff (35 players and player management) and splashed out £2,045,091 – an average yearly salary of £35,260 for all staff.

The club lost £2,622,613 in 2018 and £2,661,073 a year later, accounts dated up to 30 May 2019 reveal.

The club’s turnover has increased, however.  Turnover in 2018 was £909,399, while a year later it increased to £918,007.

The club banked £104,935 in Central Income, £628,174 in Matchday operations, £155,486 in Commercial Activities and Other income came to £29,412.

“The club continued to attract a large array of sponsorship and this increased throughout the season,” said director Dr Abdulla Al-Humaidi in his statement, dated 15 July 2020.

“Central income consists of funding received from the Vanarama National League via seasonal instalments, a one-off solidarity payment from the Premier League and a smaller play-off pool payment.

“Matchday income consists of ticket revenue, matchday restaurant, seasonal hospitality, perimeter advertising, programme sales and associated programme advertising, along with mascot packages.

“Commercial income relates to non-match events, sponsorship, both seasonal and matchday packages and player kit sponsorships.

“Operating expenses are predominantly associated with team operations and matchday costs, including stewarding, staffing, away travel and medical equipment costs.

“The club continues to strive to become a member of the EFL, via promotion from Vanarama National League and significant funds continue to be provided by the owner in pursuit of this ultimate goal.

“The impact of the coronavirus on our income was unfortunately becoming clear, so we paused publication (of these accounts) in order to share some of those preliminary impacts.

“Effectively the Covid-19 outbreak saw all revenues to the club cease outside of the central funding distribution from the National League.

“This was mitigated by the Government Job Retention Scheme which covered 80% of contracted staff wages, however fixed costs of utilities, maintenance, insurances and contracts remained.

“The club also carried the burden of 20% of the wage obligations over and above the Job Retention Scheme relief.

“The club took advantage of the holiday period for VAT and HMRC  PAYE payments and is negotiating payment plans with HMRC for those liabilities to ease cash flow burden going forward.

“Whilst the cessation of revenues was a substantial reduction of income for the club, with the majority of the wage bill contracts ending during the lockdown period under furlough, this has minimised the financial impact to the club."

Parent company Kuwaiti European Holding Company, which is also controlled by Dr Al-Humaidi, financially supports the club.