Man U set to score record profits

MANCHESTER United's new chief executive, David Gill, will unveil record profits this week amid persistent reports that the world's richest football club is a takeover target.

Shares in the Premier League champions jumped by nine% last week after Financial Mail revealed that US billionaire and Millennium Dome owner Philip Anschutz was interested in buying the Old Trafford club.

That took United's stock market value to more than £500m - its highest level in more than two years.

United has been on bid alert since Irish racing tycoons John Magnier and J. P. McManus began stakebuilding. They are now United's biggest shareholders with an 11.4% holding.

Other investors have also been busy buying. Last week Malcolm Glazer, owner of the Tampa Bay Buccaneers American football team, revealed he now owned a stake of more than 3%.

United has been rocked by the close season transfer of England captain David Beckham to Real Madrid and the sudden departure of chief executive Peter Kenyon to Russian tycoon Roman Abramovich's Chelsea this month.

But Gill, the former managing director at United, will try to reassure investors that it is business as usual.

Analysts at investment bank Dresdner Kleinwort Wasserstein are forecasting profits before player transfers of £38.4m for the year to July, against £32.3m in 2002. Sales are seen rising from £146m to £169m.

Apart from winning its eighth league title in 11 years, United also benefited from long runs in cup competitions, which boosted gate receipts and TV revenue, plus income from an American tour.

Gill is also expected to update investors on talks to renew United's £30m shirt sponsorship with Vodafone, which runs out next year, and give some clue about when a new managing director will be appointed. Despite hefty payments made to United under BSkyB's TV deal with the Premier League, match day revenues - mainly from ticket sales - remain the club's biggest source of income.