Allamhouse, the parent company of Hull City owners Assem and Ehab Allam, saw pre-tax profits fall from £52.7m to £4.3m during 2018, according to the latest set of figures filed this morning.
The annual accounts for Allamhouse Limited, which encompasses City, the engineering firm Allam Marine, the Stadium Management Company (SMC) and property development interests, revealed income fell almost £60m, from £184.2m to £124.7m.
City’s fall in turnover from £89.2m to £52.7m during the year ending December 31, 2018 underlined the huge reduction in income as a Championship club but the engineering arm of the business also saw its turnover fall from £90 to £68.3m.
The strategic report, signed off by Assem Allam last month, outlines that a fall in overall profit from £46m to £3.1m was “principally due to the football club moving from the Premier League to the Championship and much reduced Sky money together with decreased ticket prices and attendances.”
Unlike the figures for 2017, which included a five-month spell in the Premier League, these latest accounts cover a full 12-month period in the Championship.
Parachute payments in light of relegation from the top-flight have continued to ensure a profit but the lack of significant player sales predictably saw income slashed in 2018.
City had cashed in on assets such as Harry Maguire, Sam Clucas and Andy Robertson during 2017 but the following 12-months brought in no significant money through outgoing players.
The accounts nevertheless state: “The directors believe careful control over the finances and appointments should lead to long-term success at the club. The group has a very low gearing and is well positioned for the future.”
Staff costs for Allamhouse fell from £48.4m in 2017 to £30.5m in 2018, with City’s wage reductions accounting for the bulk of that.
Allamhouse accounts showed £28.6m was held as “cash at bank and in hand” at the end of the last calendar year, up from £11.4m the previous year.
The SMC saw turnover fall from £4.6m to £3.4m, bringing a loss of £2.5m for the 12-month period. City’s falling attendances will have had an impact but the strategic report stated that the loss was “in line with expectations due mainly to the tenancy agreement with the rugby club (Hull FC).”
The accounts also reveal "directors emoluments" of £185,000. Assem and Ehab Allam are the only listed directors in line for a share of that payment.
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