Norwich City: Transfer dealings result in 拢23.6m pre-tax loss, but turnover reaches club record
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Norwich brought in Dean Smith as head coach during the 2021-22 season
Norwich City have announced a pre-tax loss of 拢23.6m for the 12-month period ending 30 June 2022.
The figure was largely the result of transfer activities, with an operating profit of 拢3m before they were taken into account.
A revised version of the club's annual report says turnover was up to 拢133.9m from 拢57.2m as a result of promotion to the Premier League in May 2021.
The Canaries were relegated back to the Championship last season.
Despite that, executive director Zoe Webber said: "We are proud of our progressive approach, and we remain committed to fulfilling our ambition to become a stable, sustainable, and successful Premier League club.
"Our record total income of 拢141m is by far the highest in the history of the club and is testament to our collaborative approach."
She continued: "In the Premier League we competed against bigger spending clubs with more resources and greater commercial appeal. The challenges of competing at this level are huge, but they are not insurmountable.
"The club has the fanbase, the infrastructure and the staff to be able to do that. We must find a way."
Norwich have been promoted to the top flight three times in the past eight years, but been relegated back to the Championship after a single season on each occasion.
The club recently added American Mark Attanasio, owner of MiIlwaukee Brewers, to the board after he agreed to buy Michael Foulkes' 15.9% minority stake.
And Webber said: "He shares our long-term vision and will work tirelessly with us as we focus on achieving our objectives."
The report shows that Norwich made zero profit on players sales compared to a 拢59.6m profit on the previous 12 months, but wages as a percentage of turnover fell from 116% to 88%.
The turnover figure was a club record after the total for 2020-21 was "severely impacted" by the Covid pandemic.
Finance director Anthony Richens said: "The club are proud of the results as they highlight the resilience of the financial model in withstanding the impacts of Covid-19."
Norwich are currently third in the Championship and will be at home to Luton Town on Tuesday as they look to bounce back from a 2-1 defeat at Watford, who were also relegated from the Premier League in May.
In her conclusion to the report, Webber said: "In assessing the appropriateness of the going concern assumption, the club has produced cash flow forecasts that extend to the end of the 2026-27 football season.
"The forecasts have been produced based on the most prudent scenario of the club remaining in the Championship throughout that period.
"Under all these reasonably foreseeable scenarios, based on the cashflow forecast, the expectations of player trading and the availability of external financing as required, the club can meet its liabilities as they fall due."