Annual accounts

[Liam AAS]

Ye20 & ye21 released. Has anyone been through them yet?

 

[Spaceman Spiff]

Ye20 & ye21 released. Has anyone been through them yet?

Yeah they were gone through by a few people and discussed in the main takeover thread in chit chat. Debt a bit lower than expected, a £1.1 profit on player transfers in one of the years and Roots Hall rent down to nil plus management fees down to nil. Those were the highlights from what I remember.

 

[The Big Dady]

Found this interesting

 

[Tangled up in Blue]

Unfortunately no. They rent out the catering units. Buying a football Program would help.

Unfortunately there didn't appear to be any on sale when we bowled up about 30 mins .before the start of our last home game with Wealdstone.

 

[JD]

Club accs filed yesterday.

£2.7m loss from July 21 to 22.

Oooof.

 

[Shrimpercloud]

A large part of the loss is down to 'Loss on disposal of fixed assets' of £835K. We disposed of £835K worth of Long Leasehold property for no money.

Any ideas what this could have been?

 

[Blue Yonder]

A large part of the loss is down to 'Loss on disposal of fixed assets' of £835K. We disposed of £835K worth of Long Leasehold property for no money.

Any ideas what this could have been?

Could the dome have been bought on some kind of lease finance arrangement or does leasehold property mean bricks and mortar ?

 

[Firestorm]

Could the dome have been bought on some kind of lease finance arrangement or does leasehold property mean bricks and mortar ?

The dome is mentioned un in the 2022 accounts page 7

 

[Firestorm]

Have the Directors told the truth in this bit ?

 

[Firestorm]

Turnover in 2021 season was down 592k
170 drop in Prem League Support 900k drop in player trading
80k increase in tickets 300k increase in food (2021 covid figures)



Loss of 2.7M for the year From 1M prev season)

Operating Loss 481K From 321k
Admin expense 2.1M From 863K
Other Income 9K From 262k
Interest 159K From 82K

What is the 1.2M extra admin ?
835 reduction in assets as above Post
75k drop in intangible assets
70K drop in current assets


And there is The annual 470K expense to Group company again ,

 

[Firestorm]

The accounts if anyone is interested

 

[LBBlue]

Turnover in 2021 season was down 592k
170 drop in Prem League Support 900k drop in player trading
80k increase in tickets 300k increase in food (2021 covid figures)



Loss of 2.7M for the year From 1M prev season)

Operating Loss 481K From 321k
Admin expense 2.1M From 863K
Other Income 9K From 262k
Interest 159K From 82K

What is the 1.2M extra admin ?

Way back in 2016, Martin Dawn transferred £835k costs that they had incurred on the planning an design of the new ground to the football club. These cost were included as Fixed Assets. Now that there is no longer going to be a new ground those costs can no longer be included as fixed assets and have had to be written off. That is charged as an expense to the profit and loss account and is part of the increase in Admin expenses,

835 reduction in assets as above Post
75k drop in intangible assets
70K drop in current assets


And there is The annual 470K expense to Group company again ,

The £470k is not an expense to group companies, it is the increase in what the club owe to group companies. That is the extra cash that Ron’s companies have put into the club to cover part of the gap between income and costs.

Ron’s companies have not charged the club anything in 2021/22 and in fact even on the years that they did, it was effectively paid for by a loan to the club from Ron’s companies anyway.

 

[Holy Joe]

Have the Directors told the truth in this bit ?


View attachment 32113

Interesting - how does that get picked up by the 'authorities'? Who even are the authorities on accounting accuracy?

 

[LBBlue]

Interesting - how does that get picked up by the 'authorities'? Who even are the authorities on accounting accuracy?

The implication of that statement being inaccurate is that the Club would be trading whilst insolvent. The Directors of a company can not allow it to trade whilst insolvent, the risks being that they could be liable for company debts etc, and would have to put the company into Administration or Liquidation. This has never been in Ron’s interest hence he has always said that SEL would continue to fund the club.

The External Auditors sign off the accounts on that basis. Otherwise I presume they would qualify the accounts flagging the company is insolvent.

 

[Holy Joe]

The implication of that statement being inaccurate is that the Club would be trading whilst insolvent. The Directors of a company can not allow it to trade whilst insolvent, the risks being that they could be liable for company debts etc, and would have to put the company into Administration or Liquidation. This has never been in Ron’s interest hence he has always said that SEL would continue to fund the club.

The External Auditors sign off the accounts on that basis. Otherwise I presume they would qualify the accounts flagging the company is insolvent.

Yeah - in previous years that would be an acceptable statement. But this year it is fact that the parent company has stopped funding the club - so the statement is clearly false - isn't it?

I know these are 2022 accounts - but they need to take into account material post accounting date events as well don't they?

 

[LBBlue]

Yeah - in previous years that would be an acceptable statement. But this year it is fact that the parent company has stopped funding the club - so the statement is clearly false - isn't it?

I know these are 2022 accounts - but they need to take into account material post accounting date events as well don't they?

Point taken - but Ron got a load of cash into the club in 23/24. We also don’t know how the consortium get their cash into the club and what basis it will appear in the accounts. Ron could still have course convinced the auditors he would still as a very last resort stop the club from going under. The alternative is still insolvency if not a going concern

 

[Holy Joe]

Point taken - but Ron got a load of cash into the club in 23/24. We also don’t know how the consortium get their cash into the club and what basis it will appear in the accounts. Ron could still have course convinced the auditors he would still as a very last resort stop the club from going under. The alternative is still insolvency if not a going concern

Maybe post takeover - someone could give the accounts police a little nudge - I can see it's not in fans interest to highlight it too much at the moment

 

[kentblues]

The issue here would come under “wrongful trading” when directors carry on trading after there is no reasonable prospect of a company avoiding liquidation (being closed down). There also becomes a pivot to a focus on the interests of creditors.

Note the test is reasonable…not a high bar

Based on the continuing external support from Ron’s companies and then the consortium, and given the development in the background, I very much doubt a charge of wrongful trading would see the light of day.