Chairman Mark Ogren predicts future Dundee United profit despite £2.5m loss
- Published
Dundee United chairman Mark Ogren believes the club will return a profit in 12 months' time, despite announcing losses of £2.5m for the last year.
The Tannadice side revealed their wages to turnover ratio has risen to 132% in the period to June 2021.
But the figures don't include the sales of Lawrence Shankland and Kerr Smith, and Ogren says the board is "confident looking forward without the detrimental impact of Covid-19 that the club will be in a much stronger financial position."
American businessman Ogren says the financial projections suggest the club "will no longer be reporting significant operating losses."
United's accounts also show that they received a £1.9m insurance pay-out from their business interruption policy, with £1.5m of that received after the financial year closed, and with the expectation of more to come.
Thomas Courts' side are currently sixth in the Scottish Premiership, 12 points clear of rivals Dundee at the foot of the table, and Ogren admits his club can not afford to suffer another relegation as they did in 2016.
"Due to the principal activity of the company, the revenues of the business are inherently linked to the on-field performance and success of the football team," said Ogren.
"The performance of the team in previous years led to the company making significant financial losses, which have required substantial investment to maintain the company as a going concern.
"The principal risk to the business is therefore the possibility of the team being relegated to the Championship again.
"The owners and board are committed to providing the required funding and infrastructure in the club to maintain it as a competitive team and going concern in the Premiership."