Ben Boycott has published/recorded the following report and video re. the accounts:
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Interesting. As always, I will await the translation into real terms, by those with more knowledge of financial goings on than me.
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I await the much smarter people then me but the headline figure of "A loss of £1.783 million " certainly is a bit of a shock and shows how far behind we were left by previous leaders that they’ve had to spend so much just to make us (hopefully) a functioning league 1 team.
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Interesting points:
- Drop off of nearly £1m in revenue (albeit from an elevated position). With the investment in off the field stuff, and the on-field success this season, they’ll be looking for a major uplift in revenue in this year
- Writing off some value off the stadium, suggesting it was overvalued
- Significant capital investment - something we’d have never seen under JB
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I’m not concern at all by these.
The Locker was nearly all cost and no revenue for that period. We performed poorly in cup competitions. We didn’t flog anyone nor benefit from sell-ons. And the depreciation in the value of Bescot is hopefully a one off.
You look at what has happened this season and I think we’ve mitigated a lot of that - not least more punters paying more to get in every week which makes a huge difference. A dabble in the cups with prize money and the Locker now hopefully generating significant match day revenue.
Don’t know if that closes the gap completely but it’s a significant mitigation especially with only the Hutchinson money coming by way of a transfer upside.
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Mmmmm perhaps paving the way for Jellis, Barrett, and Williams to create transfer income.
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I’m thinking a promotion would go a long way to balancing, if that’s what you want to do. Don’t forget our new owners aren’t the old owners’ pension fund so accounting will look very different. We are too used to Uncle Jeff’s “well run club”, and that got us nowhere good.
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I think their values have plummeted since January, especially Barrett.
Anyone got a link to the financial statements, rather than just the comments about them?
There’s a link at the bottom of the statement for more detailed information Belph.
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The link is there. I will be interested to hear what you think of them.
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Not an account but not concerned about these results and the rational given by Ben seems to show the investment hence results were managed
Those who previously ranted about spending to accumulate don’t now go over the top about making a loss, we are better on and off the pitch
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My thoughts Acuman, well said…
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We were on the road to nowhere making £11k profit every year. About time we played by the same rules as everyone else.
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@milansaddler it was the road to nowhere but not making a loss in that sense is a gain. As in it’s football you ain’t lost a fortune !
I like the explanation that comes with this news. Very good. Very clear and in terms we can understand.
I’d be keen to know a few things.
- The long term route to profitability for WFC. At what point does -1.7m become £0 ? Or plus £11k ….
- So where / how does this debt sit now. How is it serviced / repaid / plugged etc
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That yearly announcement of tiny profits was masking that the club was a couple of million in debt throughout that time.
I only skim read the announcement but I’m sure there was a bit in there about some of the £1.7M (about £400K) being used to pay off the main debt?
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I presume the £400,000 figure includes the mortgage payments on the loan for the ground.
Also, the club had no assets under Bonser - the assets were all his.
Now we have assets, but we also have the borrowings associated with those assets, which have a negative effect on the P&L.
Financial statements have to be viewed together in order to get a full picture.
P&(L)
Balance sheet
Cash statements.
Clearly the club would pretty much have known these results last May as they will produce monthly management accounts. Looking at the P&(L), it’s no wonder that they hiked the prices for this season, given the reduction in revenue and the increase in costs.
Expect the next accounts will look healthier.
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@Belphegor would a business restructured like we have typically report such a huge loss ? Would you say this is plausible and without cause for concern
Think BB needs to get Elon Musk and his teenage whiz kids over and form our very own DOGE ( Department of General Expenditure )
Sure he will save us Trillions in the long term