CCFC Ltd Accounts (2 Viewers)

[oldskyblue58]

Have just downloaded the accounts for CCFC CCFc(H) and SBS&L. Will provide a summary of each. These are initial thoughts so may well add to later.

CCFC Ltd

Is owned by CCFC H Ltd but the ultimate ownership is stated as SBS&L

Directors report
"the potential to reach League 1 playoffs and the Championship cannot be totally discounted, as a priority the Board will work towards securing a sound financial platform"
- I read that as we are setting up for survival not a push for the play offs, so some may want to reel in their expectations of League 1
- it states 2012 results are likely to be similar to 2011, losses of 6 or 7m (what have they been doing ? why weren't costs addressed earlier?)
- Will operate within existing facilities - (no new money then)
-No agreement on rent
-wages savings dependent on some of the players signing new agreements
- SISU loans have given assurances about not calling in the loans for 12 months, they intend to look for further finance but there is no guarantee of further finance

Profit & Loss
Turnover up by around £1m at £10.2m - match receipts down £440k commercial income up £1.41m
no overall decrease in costs in 2011 compared to 2010
They pay out more in wages than they have income ! that's before any other costs !
Interest paid is up by £340k - (would guess it is due to increase in third party loans)
Amortisation of players contracts is down by £300k
£72k profit on player sales in year 2010 was £4.7m .... means sales income from players disposals was £86k
losses up from £3.1m to £6.7m (without player sales losses 2010 were £7.8m)

Balance sheet
The company now has £54.9m more liabilities than assets

notes to accounts
- no directors paid by CCFC in 2011 or 2010
- number of employees up from 94 to 108
- the club paid out £876k for new players in that year
- squad valued at £1.9m at 31/05/11 per accounts
- Current assets (items the club can more easily turn into cash are down from £878k to £314k
- current liabilities up from £49.9m to £57.2m (only good thing in that is that £52.2m is owed to other members of the group)
- other loans is up from £870k to £2.81m (this is the loans on the season tickets)
- apparently ARVO has an interest in the shares of the group not just a charge on the assets

Not good reading overall. The club is deep in a mess and any expectations of a return to glory any time soon should be put to bed now. That's a brief summary

 

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[Sub]

so how long before fisher comes out and says SISU are doing there best and are making CCFC better ???:jerkit::jerkit::jerkit: by the looks of things we are we and truly screwed get ready for a relegation dogfight again

 

[skyblueman]

Bloody Hell... thought it was going to be bad... but this is just truly dreadful.. and that's last years accounts!!! Can you imagine what they are going to look like a year from now?? No... neither can I because SISU are going to HAVE to do something .... get rid or walk away

 

[Ashdown]

In a mess, thats the understatement of the year..................if that was any other normal business then it would have gone bankrupt by now................debts of over £50 million............losses increasing, it just doesn't add up !!

 

[Brighton Sky Blue]

OSB, the CCFCH accounts show a loss of £9m, up from £100k in 2010. This is solely attributable to an increase in 'administrative expenses' from £3m to £12m-what's covered by that pretty vague term?

 

[stupot07]

Just a quick question - why do they only have submit accounts that are already a year old? Surely they will know exactly what the losses are in 2011-12 financial year?

I still don't understand where the £6.7m losses have come from? Did it say what the wage bill was?

 

[Ashdown]

Thats the same for any business Stupot. Yes they should have an idea of this years figures but are under no obligation to publish for a long time yet.

 

[skybluealan]

Can we not contact crimewatch or something

 

[SkyBlueJohnso]

so things are going from bad to worse and no sign of improvements on the financial front!!!

 

[Brighton Sky Blue]

There are equally disconcerting comments made in the accounts for CCFC Holdings.

 

[SonofErnie]

We've made a loss of £6.7m on a turnover of £10.2m. How on earth has that happened, because it makes no sense to me ?

What is the breakdown of the £17m of costs that is driving this loss as it seems to be the mysterious increase in admin costs (400% !!!) that's driving this. Without that increase we'd be in profit, or am I missing something ?

 

[oldskyblue58]

We've made a loss of £6.7m on a turnover of £10.2m. How on earth has that happened, because it makes no sense to me ?

What is the breakdown of the £17m of costs that is driving this loss as it seems to be the mysterious increase in admin costs (400% !!!) that's driving this. Without that increase we'd be in profit, or am I missing something ?

They havent dealt with the cost issues SoE. In 2011 they paid out more in wages and staff costs than they had in income before even paying the rent etc. No wonder ACL Charity and Council have little sympathy for them after seeing these figures!

 

[SonofErnie]

They havent dealt with the cost issues SoE. In 2011 they paid out more in wages and staff costs than they had in income before even paying the rent etc. No wonder ACL Charity and Council have little sympathy for them after seeing these figures!

How is it possible for the owners to sign off the ongoing viability of the club, when patently it isn't (viable). Furthermore, how come the league are happy with this ?

 

[skyblueman]

as long as the owners say to the board they are going to make up the short-fall then that's fine - think Chelsea, Man City etc - if they don't have that assurance then the directors are legally obliged to call in the receivers else they are personally liable for over-trading

 

[oldskyblue58]

Good question and without seeing what TF & Co have told the auditors or League I cant answer really SoE. I have to assume they have put together a plan that the club can live within for at least the next 12 months. They would have to say this is what was but this is what will be and drive through a very tough budget & plan.......... think we all need to understand the only way the club survives is by addressing the costs are driving those down, the biggest cost is wages and that will impact on what the club can achieve on the pitch. There wont be any new money from what I can see

 

[Ashdown]

To me and most ordinary people its all smoke and mirrors, high level accounting using a variety of vehicles to put up a smokescreen over the true income and expenditure on the balance sheet.
This administrative expense..................is it to cover a loan to the club to cover 2011-12 overspend. If it is, how the hell have they failed to reduce costs with the butchery that has gone on with the squad??
It appears that as even in smaller business, debts are now being loaded against a seperate entity that owns CCFC and that surely will be disposed of in time along with the club.

 

[skyblueman]

OSB still can't see that any plan would be able to reduce the club's operating profit to break-even without having to make the reassurances that any short-fall would be met externally - whatever the plan was back then it sure as hell didn't factor in a drop to League 1

 

[Brighton Sky Blue]

The accounts in all 3 cases refer to cost cutting measures and external funding being the only measures possible to keep the club afloat. The willingness of SISU and ARVO investors to provide yet more loans is the only thing stopping SBS and L (and hence, CCFC H and the club itself), from going bust. The club relies on the holding company, which relies on its own holding company, which relies on SISU and ARVO to remain solvent.

 

[oldskyblue58]

Not going to get too hung up on whether SISU will put more in or not ............ they certainly have not guaranteed to...... the only written undertaking refers to intentions and first and foremost intention not to call loans in.

TF will have to minimise the need to go cap in hand to SISU - that will mean selling players and working within the clubs means. That has to be the first actions, I would suspect there will have to be some funding from SISU investors but we shouldnt look at that as guaranteed.

What we as fans have to take in is what that approach means to how the club operates on and off the pitch. There will not be loads of money to spend on players or players wages. Players will be sold and free or perhaps less talented players brought in. Everything and everyone at CCFC is in the shop window. All costs are being looked at to be reduce, the timing of spending will be crucial too, as will length of contracts.

At the moment the Directors, Auditors and FL have enough assurance from CCFC to go forward but it is going to be a very harsh rocky road over the next few years

 

[Brighton Sky Blue]

It's fair and well saying that costs need to be cut, but the other side of the coin is attracting increased revenues going back into the club. Ticket sales and merchandise should be at the core of this strategy and there is absolutely zero incentive being given for fans to want to put their money in.

 

[sky blue john]

It doesn't matter what we do however many tickets are sold or however many players are sold.
We will never cut enough costs to fund yearly admin charges of 9million.
We are being taken for ride!!

 

[The Reverend Skyblue]

admin charges of 9 million, does it mean they are paying themselves way over the odds ? or am i being thick.
Also if they are costcutting, why have the employee numbers risen so much? hence the increased admin charges, or am i being thicker again.

The Rev

 

[Brighton Sky Blue]

The main rises in employees down as from temporary staff (it refers to stewards in this). No idea where the £9m has come from.

 

[Godiva]

The main rises in employees down as from temporary staff (it refers to stewards in this).

The commercial income is up £1.4m - that may account for some of the 14 additional staff.

 

[oldskyblue58]

The increase is a one off Rev and it is in the CCFC H accounts not CCFC. It relates to money that CCFC H have put into CCFC that they do not think CCFC can repay so they have provided for that and written the debt of £8.441m down. It is a bit misleading really.

The employees would be an average over the year of people registered to work for them ..... not all would be paid every week or month (which would be the same when looking at CCFC H accounts)

 

[Godiva]

admin charges of 9 million, does it mean they are paying themselves way over the odds ? or am i being thick.
Also if they are costcutting, why have the employee numbers risen so much? hence the increased admin charges, or am i being thicker again.

The Rev

Didn't OSB say the £9m was due to a write down? So not real money.

 

[sky blue john]

Can we have some more of this not real money so we can get some players!!

Sorry for the attempt at humour.

 

[wingy]

No paid directors ,who would they be ,does anyone do anything for nothing?

 

[Brighton Sky Blue]

A way to think of it is that SBS and L owe £35m to SISU and ARVO, CCFCH owe an extra £15m, and the club owes an extra £22m. The structure is such that the club is fed by the holding company which is fed by SBSL, which itself is largely fed by SISU. As such, the debts to third parties are roughly equal to the 'in house' debt originating from SISU investors.

 

[Sterling Archer]

Am I right in thinking all the above points to us more than likely going into admin?

 

[wingy]

Didn't OSB say the £9m was due to a write down? So not real money.

Does that mean any of it can't filter through the Boardroom

 

[oldskyblue58]

I think there is a grey area (at least one) in respect of CCFC and CCFC H

I agree that funds seem to be channeled down from SISU investors to SBS&L to CCFC H to CCFC

Looking at the CCFC accounts it says it owes group members £52.2m an increase of £8,441,360 from last year which is the amount written down in the CCFC H accounts. That should in theory leave £43.7m in the CCFC H accounts owed to them by CCFC - there is no such figure in CCFC H debtors. This must mean that over the years CCFC H has made 100% provision to write down the monies owed to it by CCFC Ltd. (got to ask why it has not been disclosed in previous accounts <SISU and before>)

CCFC H then owes SBS&L £47.3m which has increased by £7.7m since 2010 - that would be equivalent to £2m from ARVO and £5.7m from SISU........... which is pretty much the amounts they each put into SBS&L in the year

So it is wrong I believe to think CCFC owes £52.2m plus CCFC H owing £47.3m

................the important figures are the amounts owing in the SBS&L accounts £43.7m .......... of which SISU are owed 29.7m and ARVO 2m, plus finance on tickets £2.2m, Money in advance from Prozone purchaser £3.5m and more normal creditors totalling £6.3m at 31/05/11

Have tried to keep it simple but to be honest even my head is spinning with it !!

 

[Brighton Sky Blue]

The admin expenses being cited in the CCFCH accounts would thus imply money coming from the holding company to the club. Such an astronomical increase does raise a few big questions.

 

[Ashdown]

In short, the debt is ridiculous and never to be repaid in full
No wonder SISU couldn't attract co-investors
I'm still not clear about this administrative write down/off
We are paying an alarming amount of interest on loans
the council should shun advances from these sharks for the real estate
ST and other fans revenue is a drop in the ocean
There will be no funds for player investment
Coventry City football Club could be saddled with these money movers and shakers for years
On turnover of over £10 million and with a team of academy kids how can we realistically be still losing money

How could we have been mismanaged so badly, for the debt we are in you can't believe we hadn't paid for our new stadium.

 

[Brighton Sky Blue]

More to the point, anyone wanting to take the club over would also presumably need to acquire the two parent companies which it belongs to, and settle their debts on top of the club's. This would require a ridiculous level of negotiation, paperwork, and most of all, financial backing, to achieve.