Queen of the South makes a pre-tax profit of nearly £720,000
Queen of the South made a pre-tax profit of nearly £720,000 last year despite the Covid-19 crisis.
Government grants to fight the pandemic and a six-figure sell clause with Lyndon Dykes for his move from Livingston to Queens Park Rangers have helped the club significantly.
It posted a pre-tax profit of £719,000, up from £81,200 the previous year.
However, the board have warned that the club is “likely” to post a six-figure loss in the current financial year as pandemic restrictions continue to impact the running of the club.
In a season and financial review to shareholders, the board also revealed that the Doonhamers’ 4G synthetic pitch is due for replacement soon.
The statement read: “We have benefited enormously from Lyndon Dykes’ move from Livingston to Queen’s Park Rangers and international recognition.
“Through a clause in the contract, the club received a six-figure sum as a share of the costs, which secured our immediate future for some time.
“We also received £500,000 in government support through the SFA at the end of 2020 in recognition of having to negotiate behind closed doors all season.
“With further support from local government for closed facilities and long furlough periods, this
enabled the club to post a very large profit for the year.
“Under all circumstances, we are likely to lose a six-figure sum in the 2021/22 season, barring new windfall revenue.
“We now have a very strong balance sheet and significant cash reserves, but with a need to renew the current pitch imminently and the challenges of running a full-time team with the current attendances, we remain focused on maintaining the budget.”
The council added that hospitality remains a ‘tough sell’ for supporters as they are reluctant to book in large groups with isolation rules changing at short notice.
Government grants totaled £590,200 with a further £82,369 given to the club for the furlough scheme.
The AGM, which will be held on Monday February 7, will once again take place online.