oldskyblue58
CCFC Finance Director
Will try to stick to the facts disclosed in the accounts. This is a summary of the main points so wont include every little detail
Will also do the points from the Group not individual companies
- SBS&L owns 90.1% of Otium which owns CCFC H and CCFC Ltd (both of which are to be wound up)
- Directors report discloses the following that loan payments £1.18m are to Ticketus and are the final payments on that arrangement, To invest in Academy, Group under performed, first priority is sound finances not promotion, need to own a stadium
ARVO have put more money in but repayable December 2014. ARVO also taken £500k in non voting ordinary shares and £1.484m in non voting non redeemable preference shares. Since 31/05/13 Otium has acquired the assets and some liabilities of CCFC H and CCFC Ltd
- Audit Report. Includes a paragraph by the auditor highlighting the concerns about Going Concern (that doesn't mean the Group isn't in their opinion but there are doubts). Usual information about written confirmations from shareholders (includes ARVO) of intentions not to call loans in and to provide further finance. There is no contractual certainty that the funding is available however or that the loans wont be called in. There is therefore a material uncertainty that may cast doubt as to being a going concern
- Profit & Loss
- turnover £6.6m down from 10.8m in 2012
- direct operating costs 2.41m down from 2.52m
- staff costs 6.96m down from 9.91m in 2012
- administrative expenses (ie overheads) 4.14m down from 5.35m
- profit on sale of player registrations 1.65m (includes Turner I think)
- interest payments have increased from 1.26m to 1.81m
- tax charge £59,378
That leaves a loss for the financial year of £7,155,140 compared to £4,003,493 in 2012 - worse than I had guessed
- Balance Sheet
Fixed assets now stand at £554,088 compared to £1.9m in 2012. So at that point very little reportable contract value
current assets are 1.8m
the longer term debt (ie what was due to SISU investors and ARVO) has been reclassified from long term to due within 1 year. Makes an initial look at the accounts seem worse but seems to conflict with the intention not to call the loans in for the foreseeable future
- net current liabilities 45.2m at 31/05/13 in 2012 it was 9.1m (discrepancy due to reclassification of the debts to nearly all under 1 year)
- The Balance sheet shows a negative of 44.7m compared to 37.7m in 2012 like for like
Cash Flow Statement
Reveals that the Group received new loans (ARVO) of 5.4m in the year
Notes to the Accounts
- there is a detailed note regarding the going concern. Highlights the intention to fund and the forecasts and assumptions on income
- Turnover split as 2,996,143 match receipts and 3,575,626 commercial income (2012 3,550,702 and 7,275,282 respectively)
- operating lease costs in respect of property were 1,195,702 in 2013 compared to 1,659,021 in 2012. This will not all relate to the Ricoh some will be other rented sites such as for the Academy
- wages. Total costs down from 10,199,054 to 7,039,560 in 2013 (some is included in direct costs so that's why figure above slightly different). Total employees are 122 players and management, 41 admin and commercial 375 stewards (2012 was 102,45,and 362 respectively)
- remuneration paid to third parties for directors services 246,250 (total paid direct and indirect last year was 497,739)
- Interest charged on loans in year was 1,805,686 compared to 1,257,132
- there were player additions of £112,616 and contract disposed of had an original value of £4,750,000 (that is not what they got or the profit)
- the notes disclose that in that financial year the remaining amount in the Escrow account 315,218 was drawn down (the knock on from that is that in the year they paid 315k plus £10k per game x 23 = 545k in lease & licence and match day fees. (the rest was in the 2012 year end covering April & May 2012) )
- loans from SISU investors total 28,554,312 compared to 28,554,706 in 2012. So no additional funds from them. Interest of 456,667 is included in the accruals (creditors) relating to these loans (2012 was 256,667)
- ARVO loans stand at 11,653,000 (6,275,000 in 2012 was in CCFCH). Interest included in the accruals (creditors ie charged but not paid out by 31/05/13) was £1,328,417 (in 2012 accounts it was 218,893). There is also a further loan from ARVO £1.75m that remains unchanged from 2012. Interest on this second loan has been accrued at 233,333 in 2013 (2012 33,333)
- borrowings have gone up from 37,939,236 in 2012 to 42,132,865 and are all now due within 1 year
- at 31/05/13 there were no capital commitments
- since 31/05/13 the group has signed transfer agreement with net proceeds of 0.4m
- since 31/05/13 the group has drawn down a further 2.808m from ARVO. ARVO has option to take up 12.5% of the issued shares in payment
the bare bones
7m loss, 44.7m in the hole and concerns as to whether going concern unless further funding provided and loans not called in
worrying
Will also do the points from the Group not individual companies
- SBS&L owns 90.1% of Otium which owns CCFC H and CCFC Ltd (both of which are to be wound up)
- Directors report discloses the following that loan payments £1.18m are to Ticketus and are the final payments on that arrangement, To invest in Academy, Group under performed, first priority is sound finances not promotion, need to own a stadium
ARVO have put more money in but repayable December 2014. ARVO also taken £500k in non voting ordinary shares and £1.484m in non voting non redeemable preference shares. Since 31/05/13 Otium has acquired the assets and some liabilities of CCFC H and CCFC Ltd
- Audit Report. Includes a paragraph by the auditor highlighting the concerns about Going Concern (that doesn't mean the Group isn't in their opinion but there are doubts). Usual information about written confirmations from shareholders (includes ARVO) of intentions not to call loans in and to provide further finance. There is no contractual certainty that the funding is available however or that the loans wont be called in. There is therefore a material uncertainty that may cast doubt as to being a going concern
- Profit & Loss
- turnover £6.6m down from 10.8m in 2012
- direct operating costs 2.41m down from 2.52m
- staff costs 6.96m down from 9.91m in 2012
- administrative expenses (ie overheads) 4.14m down from 5.35m
- profit on sale of player registrations 1.65m (includes Turner I think)
- interest payments have increased from 1.26m to 1.81m
- tax charge £59,378
That leaves a loss for the financial year of £7,155,140 compared to £4,003,493 in 2012 - worse than I had guessed
- Balance Sheet
Fixed assets now stand at £554,088 compared to £1.9m in 2012. So at that point very little reportable contract value
current assets are 1.8m
the longer term debt (ie what was due to SISU investors and ARVO) has been reclassified from long term to due within 1 year. Makes an initial look at the accounts seem worse but seems to conflict with the intention not to call the loans in for the foreseeable future
- net current liabilities 45.2m at 31/05/13 in 2012 it was 9.1m (discrepancy due to reclassification of the debts to nearly all under 1 year)
- The Balance sheet shows a negative of 44.7m compared to 37.7m in 2012 like for like
Cash Flow Statement
Reveals that the Group received new loans (ARVO) of 5.4m in the year
Notes to the Accounts
- there is a detailed note regarding the going concern. Highlights the intention to fund and the forecasts and assumptions on income
- Turnover split as 2,996,143 match receipts and 3,575,626 commercial income (2012 3,550,702 and 7,275,282 respectively)
- operating lease costs in respect of property were 1,195,702 in 2013 compared to 1,659,021 in 2012. This will not all relate to the Ricoh some will be other rented sites such as for the Academy
- wages. Total costs down from 10,199,054 to 7,039,560 in 2013 (some is included in direct costs so that's why figure above slightly different). Total employees are 122 players and management, 41 admin and commercial 375 stewards (2012 was 102,45,and 362 respectively)
- remuneration paid to third parties for directors services 246,250 (total paid direct and indirect last year was 497,739)
- Interest charged on loans in year was 1,805,686 compared to 1,257,132
- there were player additions of £112,616 and contract disposed of had an original value of £4,750,000 (that is not what they got or the profit)
- the notes disclose that in that financial year the remaining amount in the Escrow account 315,218 was drawn down (the knock on from that is that in the year they paid 315k plus £10k per game x 23 = 545k in lease & licence and match day fees. (the rest was in the 2012 year end covering April & May 2012) )
- loans from SISU investors total 28,554,312 compared to 28,554,706 in 2012. So no additional funds from them. Interest of 456,667 is included in the accruals (creditors) relating to these loans (2012 was 256,667)
- ARVO loans stand at 11,653,000 (6,275,000 in 2012 was in CCFCH). Interest included in the accruals (creditors ie charged but not paid out by 31/05/13) was £1,328,417 (in 2012 accounts it was 218,893). There is also a further loan from ARVO £1.75m that remains unchanged from 2012. Interest on this second loan has been accrued at 233,333 in 2013 (2012 33,333)
- borrowings have gone up from 37,939,236 in 2012 to 42,132,865 and are all now due within 1 year
- at 31/05/13 there were no capital commitments
- since 31/05/13 the group has signed transfer agreement with net proceeds of 0.4m
- since 31/05/13 the group has drawn down a further 2.808m from ARVO. ARVO has option to take up 12.5% of the issued shares in payment
the bare bones
7m loss, 44.7m in the hole and concerns as to whether going concern unless further funding provided and loans not called in
worrying
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