Wolves announce £7m drop in profits

Wolves today announced a near £7m drop in profits on last year – but they remain £2.2m in the black.

The club made £2.2m for the year ending May 31, 2011 – down from £9.1m on the previous year.

The pre-tax figure is after player trading and net interest, and takes into account signings such as £7m record buy Steven Fletcher, Stephen Hunt, Adam Hammill, Steven Mouyoloko and Jelle Van Damme, as well as loan signings Michael Mancienne and Jamie O'Hara.

The club also re-signed a number of players on long-term deals. Operating costs increased to £37.9m compared with £29.8m in 2009-10 – mainly due to players' wages – while turnover rose to £64.6m, compared to £60.4m during 2009-10.

This rise in turnover is mainly due to the new Premier League three-year deal, including TV rights and other deals.

At year end the club's holding company, (WW (1990) Ltd) boasted net assets of £72.7m, which includes Molineux and the Sir Jack Hayward Training Ground. Transfer market valuations of players aren't included.

Wolves chief executive Jez Moxey said the club was now focusing on its two main investment projects, the £18m Stan Cullis Stand and the £6m upgrade of their Compton Park training ground, with the eventual aim of ploughing additional funds into the first team.

The aim of the new academy is to compete for the best youngsters in the country by creating a Premier League 'Category 1' Football Academy, while the stand, which will open in time for the start of next season, will boast much-improved facilities including the WV1 restaurant and bar, as well as a club museum to bring in added revenue.

Moxey said: "These are solid results, which reflect the club's strong financial health. We're committed to running the club on this firm financial footing, while continually looking to invest in the first team.

"The investments in infrastructure have both been made with the future success of the first team in mind. Our aim to become a 'Category 1' Premier League Football Academy puts the club in a good position to secure the best young talent in the face of intense competition from other teams."