Sir Jim Ratcliffe’s brutal cost-cutting measures have WORKED: Man United chief lauds club’s positive financial results after co-owner ruthlessly wielded the axe

Manchester United chief executive Omar Berrada claims that the latest financial results show the true benefit of the club’s ‘transformation’ off the pitch.

United’s second quarter figures show that operating profit is up to £19.6million compared to £3.1m in the same quarter last year, even though the team are not playing in Europe for only the second time in 35 years and went out of both domestic cup competitions at the first hurdle.

It means that United’s total operating profit over the first two quarters and six months of this financial year is £32.2m compared to a £3.9m loss last year.

Berrada believes that the painful decisions under Ineos to axe 450 jobs and overhaul the business model is now starting to pay off, both in terms of the balance sheet and the club’s performance on the pitch.

Employee benefit expenses were again down £7.4m to £75.1m due to what the statement described as ‘the impact of headcount reduction programs implemented during the prior year’.

Berrada said: ‘We are now seeing the positive financial impact of our off-pitch transformation materialise both in our costs and profitability.

‘We continue to take a football first approach and invest in both our men’s and women’s first teams. On the pitch our men’s team sits fourth in the Premier League and our women’s team are second in the Women’s Super League, as well as reaching the League Cup Final and the quarter final of the UEFA Women’s Champions League.

‘Today’s results demonstrate the underlying strength of our business as we continue to push for the best football results possible for our men’s and women’s teams.’

Wednesday’s financial results also show that total revenues for the quarter are down to £190.3m from £198.7m last year, with matchday revenue down £2.5m to £49.5m due to fewer games, commercial revenue down £6.6m to £78.5m, and broadcasting revenue slightly up £0.7m to £62.3m.

‘Exceptional items’ were zero which means Ruben Amorim’s £10m payoff will be taken into the third-quarter results after he was sacked in January. Exceptional items in the same quarter last year included the £14.5m compensation to Erik ten Hag and his staff.

United’s previous financial results in December made grim reading with the overall debt up to a record £1.29billion, and the total financial debt rising to an all-time high of £749.2m.

According to the latest figures, the net debut from the Glazer takeover is unchanged at £481m, but net finance costs from servicing United’s overall debts were down to £13.9m compared to £37.6m in the first quarter.