Accounts reveal £41m debt removal

Wednesday yesterday revealed their first set of club accounts since Milan Mandaric took over the club as chairman last year.

The accounts confirmed the removal of over £41 million in debt and shows the club in a much healthier position off the pitch than they were just over a year ago.

Mandaric, the former owner of Leicester City and Portsmouth, saved the club from administration in 2010.

A club statement, issued yesterday, read: 'This year's accounts reflect the change of ownership following the acquisition of the club by UK Football Investments LLC in December 2010.

'The main highlight that we are pleased to report is the removal of over £41m of debt from the club. Last season, as part of the takeover strategy, our operating losses were offset by the waiver of the intercompany debt (of £21.4m) and although no money changed hands, the accounting treatment saw the eventual profit reach £15.8m.

'As well as a major overhaul of the business both on and off the field, we are also able to report the net assets of the business at the end of May 2011 were a healthy £11m compared to the net liabilities of £31m reported at the end of May 2010.'

It continued: 'The trading figures are generally disappointing, a mixture of relegation, supporter dissatisfaction and the general economic downturn saw falls in revenue across all areas of the business.

'Looking forward, the business is now in a robust financial position and whilst we still have some way to go to achieve our plans, the financial strength of the new parent company, together with the enthusiasm, commitment and changes made by our chairman, is driving the club in the right direction.'

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