Unaudited loss as of 31 May 2006

400 thou.

 

Assuming that's BFC, how does it compare with our loss as of 31 May 2005?

 

£1.25 Million 31 May 2005

 

Paid for by the sale of Flinders then?

 

RE: Paid for by the sale of Flinders then?

I think that will fall into year end 31 May 07. <u>If</u> Jax figures are correct thn club's accumulated deficiency at 31 May 06 will be £5.3m. I stress this is if Jax is correct.

 

Straight out of Mr Shepherds Chronicle Comments page 3

 

So we're almost £6million in debt then?

happy days...

 

good time to tell us

on the eve of a new season

 

RE: So we're almost £6million in debt then?

If this years loss is correct, then liabilities exceed assets by £5.3m.</p>

Difficult give details as the accounts filed for 31st May 05 are abbreviated and give very little detail. I have to point out that there is nothing wrong with BFC filing this type of accounts as they are a small company and it is normal for most small companies to file accounts of this nature. </p>

Accounts do read that the company is dependent on the support of a third party, that the third party is willing to give this for the forseeable future and that the third party has personally guarenteed the bank overdraft. I think we can work out who the third party is.</p>

All the information given above apart from this years unaudited loss figure is a matter of public record at companies house.</p>

 

RE: Managing expectations?

The club is on a long road back to financial stability. I think it is sometimes forgotton that we were in admin just over 2 years since and it was a spend spend policy that put us there.</p>

 

RE: Managing expectations?

most fans are willing to except we are sking. the club only has itself or cryne to blame. "box office" players will haunt them all season.

And its the way we look so poor trying to bring players in. we tried him and him nad this didnt work and so and so turned us down. As i have said before we look very micky mouse when tryng to sign players

 

RE: So we're almost £6million in debt then?

BFC Dave, you seem to know your stuff so can you put this in layman's terms?  During 05/06 our debt increased by £400k, taking total debt up to £5.6M?  So we are still bleeding despite the play-off of last season?

 

RE: So we're almost £6million in debt then?

I assume that the playoff money has been included. </p>

The rate of loss is diminishing 2005 £1.3m 2006 £400K.</p>

This year we have lost some of the players whose contracts were negotiated under PR which I assume were more than the players we have just signed both in number of personel and value of contract. There will more gate income this year more TV. This year we may make a profit which will start to eat into the deficiency. The return to financial stability will not happen overnight (unless we get to the prem) it's a bit like trying to turn around an ocean going liner in mid stream.</p>

We are in a division of teams with prem parachute payments, also clubs going **** or bust and also clubs that are trying to get the finances right. Sheff Utd have been the later and it has taken them years to turn it around.</p>

This is only my opinion but I don't think the short term fix is worth jepordising the long term future of the club.</p>

 

RE: So we're almost £6million in debt then?

I sincerely hope we're not continuing to structure the club based on League 1 conditions, cos for sure we'll end up back there if thats the case.

 

Rightly or wrongly, I read the figure as being good news

My initial reaction was that this was a big step towards profitability and, as has been pointed out by BFC Dave and others, there are several reasons to believe that this trend will continue next season under the stewardship of GS.

 

RE: So we're almost £6million in debt then?

I believe that when clubs have sorted out which players they want to keep then the loan market will become awash.</p>

I think patience is needed, after all from a financial view point PC GS etc don't seem to have let us down yet. Do they ?</p>

 

RE: Rightly or wrongly, I read the figure as being good news

It will because the club will bw run within a budget. This will take years.</p>

To all out there, at the end of 2002/03 we were an Issiah Rankin goal away from the bottom league, with a very uncertain future. Anyone want to go back there ?</p>

 

RE: So we're almost £6million in debt then?

I guess the question is, at what point do you start to refinance?  Maybe GS &amp; Co. believe they need to get back in the black first and foremost, then think about a refinancing plan which may allow them to take on new loans at more attractive rates than would be the case whilst still in debt? 

Of course the risk to that strategy is we keep losing, attendances fall and we get relegated again.  The alternative is to have a strategy a la cardiff (although it doesn't have to be that extreme) which is to go for it lock, stock and barrel, the risk being if it doesn't pay off, you may well end up in administration.  A more exciting proposition for the fans perhaps, but definitely short sighted.

I hadn't appreciated we were nigh on £6M in debt and this is still getting bigger, we haven't even stemmed the losses, never mind started eating away at the debt.  I understand fans frustrations but maybe Gordon's strategy is bang on - get on top of the debt and turn the big ship around then plan your advance.

 

RE: So we're almost £6million in debt then?

I would imagine they want to at least get back into profit, if not out of debt, before raising investment.