English Premier League soccer champions Manchester United have reported record full-year profit and revenue, strengthening its hand ahead of a planned $1 billion flotation in Singapore later this year.
The club, which intends to start pre-marketing for the initial public offering later this month, said earnings before interest, tax, depreciation and operation rose to £110.9m in the year to end June from £101.2m the year before.
JP Morgan, which has been appointed as a global co-ordinator for the IPO, had forecast the club would make EBITDA of £114m this year.
Sources have told Reuters that England's most successful club hopes to raise as much as $1 billion from the IPO through the sale of around 25-30% of the club.
However, that valuation has been met with scepticism from some commentators.
The club said total revenue increased to £331.4m, up £45m on the year incorporating a 27% rise in commercial revenue boosted by the club's 80m pound shirt sponsorship deal with Aon Corp, which took effect last year.
Net debt fell to £308.3m from £376.9m a year earlier.
Sources have told Reuters the Glazer family, who bought the club in 2005, are planning to use some of the proceeds from the IPO to reduce the club's debt, a burden that has made the American owners deeply unpopular with some fans. The Glazers are targeting an IPO by the end of October, sources said.
