Thought it deserved its own thread:
Back in profit then
Looking forward to our resident business experts and financial wizards having another round of willy-waving, whilst picking the report apart.
bit harsh mate. we need to understand whats going on as best we can
Why did you even come to the thread then?
Oh yeah, it was to have a boring pop.
Because I’m interested in what the club has to say.
You’ve got it, nothing to do with your post. I’ll stick with another boring pop
Ground cost in the region of £7m, just as many on here said (like myself) and not the £20m touted by others.
And only £1m than Geoff Dance offered 10 years ago (or more). So when accounting for inflation, it’s about the right price, JB really must have wanted to move on
Of which £3.8 million is a loan, the rest capital investment.
I can’t quite work out how that £7m is amortised in the numbers. I was interested in seeing whether any mortgage repayments would be more or less than the rent.
I was expecting it to be roughly equal with benefit getting bigger Year by year as the rent was indicised.
I need another boring person to spot it.
I’m totally illiterate when it comes to balance sheets and annual accounts etc. can someone explain (in plain English) exactly what the accounts mean to ordinary fans please?
So could I. I cannot work out what the mortgage payments are from what I have seen there! All I know is that the rent we used to pay would be approaching half a million per year with the recent high inflation.
Sorry, wouldn’t want to talk about numbers on the accounts thread (God forbid) and be accused of Willy waving
Go on @el_nombre wave your Willy
Possibly cos, as I suspected at the time, it’s not a mortgage, it’s a loan, difference being it’s a loan to the business rather than against an asset.
I’ve only taken a moment to look at the figures, but I’m sure I spotted the loan amount in there. Similar to previous loans, I guess the yearly repayments will be summarised somewhere in the accounts
I’m sure there was a debt amount in the middle somewhere that was just over £4 million.
It s because no depreciation is charged on the land acquired ( which is normal in accounting) but the club’s calculation of the depreciation that should be charged on the stadium is questionable. The accounting policy is that we charge a depreciation rate of 2% per annum on the stadium. As we did not own the land before it would appear we should have charged depreciation of 2% x £5.047m = £100,940 whereas we only charged £46,000 in the accounts.
The same happens with the training ground depreciation. The amount charged of £15,000 suggests that we have a 50 year lease with Essington Council based on the cost incurred on the training ground.
The depreciation charged has always been an easy way for the club to show a profit by not charging enough. They say its because the stadium/training ground is maintained to such a high standard that there is effectively no depreciation to be charged - I’ll leave those that visit the ground to measure that.
With regards the land loan there is £3.819m left on the loan at 31st May 23. Unfortunately there are two loans in existence ( including a small historic loan) so its not quite possible to be exact on the repayments. Total capital repayments on the loans look like they are £248,000pa and so I would say we have taken a loan over 20 years to repay. The company would be paying interest on the outstanding amount as well which I would estimate at £155,000 based at 4% so the capital and interest payments on the loan are roughly the same as the rent was but we are paying the capital off in that.
I have answered that as an Accountant not a CEO?