I’ve had a quick look at the accounts, and it looks like we furloughed around £600k’s worth of staff, and our commercial income dropped by around £850k.
May be misreading it, but that might be indicative of just how poor our commercial set up is, irrespective of what LP says and irrespective of how hard people work.
For every £ we spend on non-footballing staff (i.e those that were furloughed), we make roughly £1 - £1.20 in revenue, and given that furlough was what, 80% of salary, it may be a worse ratio than that.
Probably like most people, all that accounting stuff doesn’t make much sense to me but can someone confirm I have the following right:
We brought in 4,208,000 but the cost of the running the club was 4,804,000 meaning we were 596,000 in debt.
The club then took a government loan to cover this of 618,000 which left us with 22,000 profit for the year, then 9,000 was due in interest on loans which leaves the 13,000 profit?
So despite all the measures apparently taken by the club in making staff redundant and help from fans, commercial partners and directors we still lost over half a million quid thereby increasing our debt by another 618k?
Great, no excuses then going forward about Covid impact. We lived to nil, and now we have a decent attendance for this league, and other clubs should be going out of business any day now so we should be shooting up the league!
The company received grants of £618000 via the furlough scheme, which are not loans and therefore not repayable (and hence in the P&L figures).
Separate to that is a £500,000 loan which will be on the balance sheet and will be repaid over a period of time. Any interest on that loan will be a cost to P&L.
So from this part of the statement it appears as at the end of that accounting period on 31st May 2021, the club has total debts of £2.362m, up from £1.900m the year before?
I’d have presumed it was in the ‘Other Operating Income’ line, however the £618k in there is exactly the amount the club received for the furlough scheme so where would the not insignificant amounts from the Adebeyo/Jules sales and compensation from Vale for Clarke etc show?
Perhaps I have misunderstood the Chairman, but I was under the impression from his video updates that one of the reasons other clubs are about to fail is because they all borrowed money to survive, unlike ourselves who had steered a course that we didn’t need to do so.
It now transpires that we have indeed borrowed half a million quid from the Government!
Have I misunderstood, or has the Chairman been saying one thing in his “justification” of our position of strength relative to all of the clubs about to go under and something quite different in the released statements today?
16th consecutive profit! What on earth are we all moaning about on here.As long as we make the news for our yearly profits it doesn’t matter what league your in.
