SUFC Accounts

[rlb999]

This shows a 2.4m loss from champ > div 1.

What were the figures from the promotion season before? ie. div 1 > champ.

 

[Beefy]

Interesting. There was a shortfall of 44% in gate receipts as a consequence of relegation, but wages only dropped by less than 10% and "other expenses" actually rose by 30%.

Exactly. Turnover dropped by 36% and yet wages only went down by 8%. That's exactly how football clubs get in trouble. Regardless of whether the 06/07 numbers were artificially high in the first place due to the level that we were playing at, the numbers don't lie.

Do the Accounts breakdown who the Creditors are?

 

[Mick]

Exactly. Turnover dropped by 36% and yet wages only went down by 8%. That's exactly how football clubs get in trouble. Regardless of whether the 06/07 numbers were artificially high in the first place due to the level that we were playing at, the numbers don't lie.

Do the Accounts breakdown who the Creditors are?

Given it's just about the largest figure in this year's accounts, I think it ought to !!

 

[Mick]

So I won't be able to retire from the dividends from my 6 shares then :(

Southend shares have never paid a dividend. That isn't going to change any time soon.

 

[Beefy]

Given it's just about the largest figure in this year's accounts, I think it ought to !!

Well I guess that they would. It's the key figure. Who do we owe all of this money to? Is it mainly long-term liabilities (Directors/Group loans), HMRC, or external lending with the Banks?

 

[Firestorm]

Directors loan accounts 150,000 (0 -2007)
Bank loans / Overdraft 234,015 (0-2007)
Amount owed to associate company 1,000,000 (1,000,000 - 2007)
Trade Creditors 1,118,155 (792430 - 2007)
Parent undertaking / fellow subsidiaries 1,161,732 (1,009,129 - 2007)
Tax / Social security 888,459 (1,304,646 - 2007)
Other Creditors 37,932 (15,794 - 2007)
Accruals and deferred income 1,878,212 (1,751,975 - 2007)
(expenses not yet invoiced , probably vat on the back end of the season etc)

total creditors due within one year 6,468,505 (5,873,974 -2007)

 

[Smiffy]

Directors loan accounts 150,000 (0 -2007)
Bank loans / Overdraft 234,015 (0-2007)
Amount owed to associate company 1,000,000 (1,000,000 - 2007)
Trade Creditors 1,118,155 (792430 - 2007)
Parent undertaking / fellow subsidiaries 1,161,732 (1,009,129 - 2007)
Tax / Social security 888,459 (1,304,646 - 2007)
Other Creditors 37,932 (15,794 - 2007)
Accruals and deferred income 1,878,212 (1,751,975 - 2007)
(expenses not yet invoiced , probably vat on the back end of the season etc)

total creditors due within one year 6,468,505 (5,873,974 -2007)

Sorry mate, I'm not the most clued up when it comes to accounts.

Is this statement suggesting we are to pay £6.4m back to the various creditors over the next year?!

 

[Reg Martin]

Sorry mate, I'm not the most clued up when it comes to accounts.

Is this statement suggesting we are to pay £6.4m back to the various creditors over the next year?!

I think the answer is yes in theory though not quite as dramatic as it sounds as practice large sums look like money owed to RM that are very similar to previous year:
Amount owed to associate company 1,000,000 (1,000,000 - 2007)
Parent undertaking / fellow subsidiaries 1,161,732 (1,009,129 - 2007)

The two big sums I think we will have to pay over are (or were as these figures are 12 months old already):
Trade Creditors 1,118,155
Tax / Social security 888,459

I'm not sure about the other large entry which is
Accruals and deferred income 1,878,212
May include money from season tickets for 8-9 that were sold in 7-8 financial year. I think its just an accounting technicality to transfer expenses (or income) from one financial year to another

 

[Beefy]

That's exactly what it is. The proportion of season ticket money relating to matches which haven't taken place yet (which considering our year-end is August is almost all of them) actually show as a liability in the balance sheet and are released into the Profit & Loss Account over the course of the season. If we were to see Management Accounts half way through the year, for example, I'd expect to see that figure reduced by about 50%.

My work exposes me to accounts on a daily basis although I'm still a complete novice when all's said and done and therefore I'm sure someone else will be able to give a better analysis of those figures. The increase in external lending is slightly worrying but overall that liability sheet could look worse as most of the lending is to RM and the associated companies. So long as we can meet that tax bill we should be ok.

 

[Mick]

That's exactly what it is. The proportion of season ticket money relating to matches which haven't taken place yet (which considering our year-end is August is almost all of them) actually show as a liability in the balance sheet and are released into the Profit & Loss Account over the course of the season. If we were to see Management Accounts half way through the year, for example, I'd expect to see that figure reduced by about 50%.

My work exposes me to accounts on a daily basis although I'm still a complete novice when all's said and done and therefore I'm sure someone else will be able to give a better analysis of those figures. The increase in external lending is slightly worrying but overall that liability sheet could look worse as most of the lending is to RM and the associated companies. So long as we can meet that tax bill we should be ok.

Given that this is the position at almost a year ago, it would be nice to think that all the trade creditors we owed a year ago have been paid; similarly any tax liabilities that have become due should have been settled. Perhaps the club could confirm that?

 

[Reg Martin]

Given that this is the position at almost a year ago, it would be nice to think that all the trade creditors we owed a year ago have been paid; similarly any tax liabilities that have become due should have been settled. Perhaps the club could confirm that?

even if they have then there will be new liabilities for trade creditors and tax liabilties relating to 2008/09 and probably for similar amounts

 

[Beefy]

Yeah, it gives us an idea of the level of tax that we're looking at as a Club. I doubt it'll change a huge amount year on year.

 

[Medway Blue]

I believe the club lost c.£1m through the combination of the stadium plans being called in by the govt. for an enquiry and various changes to the initial plans (retail space, etc.). No doubt there have been sly payments to the council and another party or two by RM/parent companies to get the land/support needed to push the stadium through. I should think this would come under administration costs.

Could someone tell me, in layman's terms, what the football club's total debt and debt minus assests figures are, as well as a break down, if known, of to whom money is owed and when it has to be repaid by? Has to go into Football Manager :)

 

[Shrimpador]

A couple of interesting things I picked up having a read through:

Mr Van Wezel and Mr Markscheffel have lent the club £150k. Not sure they should expect to get that back in a hurry...:unsure:

The share issue only raised £300k less £100k costs = £200k! Not quite the £1.3m hoped for!!

Also we seem to have an overdraft of £250k now compared to cash in the bank of £900k the year before – I thought Geoffrey King said the club never had an overdraft when he was quizzed about the PFA loan?!
Given all this is from July ’08, July ’09 accounts are not going to be pretty with a similar sized squad/wages and lower gate receipts this year…..

James the SB – Ron will be covering the stadium costs through other companies so you won’t see any of that lot in the SUFC accounts