Southend report £2.65m losses for year to July 2024

Southend United were founded in 1906

Southend United have reported a pre-tax £2.65m loss for the 12 months to the end of July 2024.

The financial report covers the period which ended just 12 days after the Custodians of Southend United (Cosu) consortium bought the National League club from previous owner Ron Martin.

It states "the sale documentation provided for payments of up to £12m through companies in the control of Ron Martin's family".

The loss was £100,000 down on the previous 12 months, but the club's annual turnover fell from £2.93m in 2023 to £2.52m.

The report also states that as part of the change in ownership, "intercompany loans totalling £19.4m were written off and these were taken directly to equity".

The sale to Cosu, headed by Australian businessman Justin Rees, was finally completed nine months after Martin put the club up for sale.

The incoming board decided the club should remain at Roots Hall, their home since 1955, despite it being "not fit for purpose in the modern era" and work is ongoing to upgrade the stadium.

Last December, in an interview with BBC Essex, Rees said losses of "just under" £2m were anticipated in the 2024-25 financial year.

He added: "We're finding the right balance, structure versus flexibility.

"Getting the takeover done was particularly stressful, but we're in the position we want to be in now and we're doing a lot of work. Every day there is something going on - we're trying to propel the club forward and getting the club where we all think it should be."

At the time, Southend were 14th in the table under boss Kevin Maher, but are now seventh before Monday's match at Gateshead.

A draw or better will ensure they remain in the play-off places and in with a chance of regaining the English Football League (EFL) status they lost in 2021.