Assem Allam business empire was hit with a £46 million drop in turnover because of Hull City Football Club’s season spent in the second tier of English football last season.
Following the club’s relegation form the Premier League in May 2015, the Allamhouse Ltd holding company, which is the parent of Allam Marine, the Tigers and the stadium management and property development companies of Allam, reported the financial downturn.
In the year up to December 31, 2015, the holding company reported a £146 million turnover, which was down from £192 million in the previous 12 months, while profit before tax also fell to £9.4 million from £18.3 million.
These results were accompanied by a strategic report which said the group’s engineering arm, Allam Marine, had suffered a 20% sales drop but had still continued to make strong profit.
Similarly, Allamhouse’s property development operation enjoyed a rise in profite before tax, with plans in place to undertake more work on the existing range of assets.
However, following Hull City’s relegation to the Championship, sales were impacted in a negative way as the club spent the second half of the financial year (2015) in the second tier of English football.
Subsequently, Hull City suffered a substantial decrease in turnover from £90 million to £65 million.
Allamhouse also operates the KC Stadium for both Hull City FC and rugby league side Hull FC, in conjunction with the Hull Arena for mixed sporting and entertainment events.
The company stated in the report: Improvement of the stadium facilities has continued, with in excess of £2.5m being spent on infrastructure.
“At a trading level, sales were down by 20 per cent due to the football club moving into the Championship.”
However, Hull City have since been promoted back to the Premier League thanks to their Play-Off Final victory over Sheffield Wednesday in May this year, which has resulted in Allamhouse Directors being optimistic about the future of the group.
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