United signings hit Plc profits

PROFITS at the world's richest soccer company Manchester United dropped by 34% last year as the company spent heavily on new players.

However, the market reacted well after the company announced pre-tax profits for the six months to January 31 of £20.3m, slightly ahead of analysts' forecasts. The club's shares rose as much as 4.7%.

First-half net income was £14.0 million, down 40% from the year-earlier period as gains from player sales declined.

The club's shares rose as much as 4.7%.

Merrill Lynch analyst Andrew Burnett, who rates the stock a buy, said: "The company has achieved growth against our forecasts on all fronts."

Mr Burnett raised his full-year pretax profit forecast to £44.5 million from £40.1 million.

The company has strong Irish ties where first team captain is Roy Keane and Irish business man JP McManus and John Magnier are the company's largest shareholders through their company Cubic Expressions with a 10.37% stake.

Rupert Murdoch's BskyB is the second biggest shareholder.

The possibility of a takeover has kept the share price buoyant as high profile investors have come on board.

Malcolm Glazer, a US billionaire sports businessman, has bought a 2.9% slice of the club, he also owns reigning Super Bowl champions Tampa Bay Buccaneers.