Bluedell 5,329 Posted December 1, 2011 Author Share Posted December 1, 2011 can't see why the tax case has any bearing on the accounts for 2010/2011...... It has to do with the audit report as Craig mentions. I believe that the auditors would need to qualify their accounts if they believe that the company may be unable to trade for the following 12 months. They don't just look at the results for the year but also look forward. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,329 Posted December 1, 2011 Author Share Posted December 1, 2011 and no particular sign of any investment by Mr whyte that I can see. Could be contained within the £2.9m increase in creditors? 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,329 Posted December 1, 2011 Author Share Posted December 1, 2011 (edited) However, I think the most important thing to note is that Amounts falling due within one year have gone up from £27.8M and now stand at £49.1M; whereas Amounts falling due after more than one year have gone down from £37.9M to £20.3M. I suspect that this reflects the fact that we no longer haver the BOS Term Loan that we were paying off at £1M/year and now owe that money to Mr Whyte or his company. Correct. Whether that is good or bad news might depend on your view of banks and your view of Mr Whyte.He is of course committed to writing that debt off if we win the big tax case, if not he becomes a creditor in the administration. My personal opinion is that I would rather know I have to pay of a million a year but others may not agree. Win the case and get the debt written off or pay £1m a year? Lose the case and owe our shareholder or lose the case and owe a bank? I'd take the former (on the face of it) in both cases. I do not think that not having the backing of a bank is good because we may need loans or working capital in future and at the moment it is not clear where that would come from. The bank were not giving us any more loans or working capital. I am a little unclear about the figures for Cash at bank and in hand from the way have been copied on here but it does appear that we do not need an overdraft at the moment, should be able to pay our debts as they fall due (so why all the court cases?) and hopefully the cash in hand £8.8M or £14.8M? is not in a biscuit tin. The cash on hand was £8.8m. Given this presumably included a large chunk of season ticket money then i appears that we do need an overdraft, as it seems that we have monthly outgoings of £3.5m with minimal income. Edited December 2, 2011 by Bluedell 0 Quote Link to post Share on other sites More sharing options...
craig 5,195 Posted December 1, 2011 Share Posted December 1, 2011 It has to do with the audit report as Craig mentions. I believe that the auditors would need to qualify their accounts if they believe that the company may be unable to trade for the following 12 months. They don't just look at the results for the year but also look forward. Correct BD. For an unqualified opinion they would have to be convinced that the club would survive at least a further 12 months (to the next audit report). They could sign off the accounts just now, but it would likely be that they would have a qualified (bad) audit report due to going concern issues. 0 Quote Link to post Share on other sites More sharing options...
Stimpy 0 Posted December 1, 2011 Share Posted December 1, 2011 Correct BD. For an unqualified opinion they would have to be convinced that the club would survive at least a further 12 months (to the next audit report). They could sign off the accounts just now, but it would likely be that they would have a qualified (bad) audit report due to going concern issues. Would this be due to the tax case then? Not signing it off because we could enter admin? What is yours and BD's opinion on the whole accounts? It doesn't look great but I'm not sure if it's anything to shit our pants over? Would trading well with merchandise, matchday tickets etc be of extreme importance until July? 0 Quote Link to post Share on other sites More sharing options...
rbr 1,247 Posted December 1, 2011 Share Posted December 1, 2011 The cash on hand was £8.8m. Given this presumably included a large chunk of season ticket money then i appears that we do need an overdraft, as it seems that we have monthly outgoings of £6.5m with minimal income. sorry Bluedell I must have missed this , but how is this figure so high , we dont have outgoings of £78 million per year surely 0 Quote Link to post Share on other sites More sharing options...
Zappa 0 Posted December 1, 2011 Share Posted December 1, 2011 It has to do with the audit report as Craig mentions. I believe that the auditors would need to qualify their accounts if they believe that the company may be unable to trade for the following 12 months. They don't just look at the results for the year but also look forward. Is it just me or is it pretty scary to think that we only just broke even in these accounts with a huge amount of revenue coming in from Europe last season? I'm sure the reported amount was over 15 million, so what sort of picture does that paint looking forward when we have virtually no European money this season? 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,329 Posted December 1, 2011 Author Share Posted December 1, 2011 The cash on hand was £8.8m. Given this presumably included a large chunk of season ticket money then i appears that we do need an overdraft, as it seems that we have monthly outgoings of £6.5m with minimal income. sorry Bluedell I must have missed this , but how is this figure so high , we dont have outgoings of £78 million per year surely Typo. Should be £3.5m. 0 Quote Link to post Share on other sites More sharing options...
BrahimHemdani 1 Posted December 1, 2011 Share Posted December 1, 2011 can't see why the tax case has any bearing on the accounts for 2010/2011...... Because it's a potential liability that arose prior to that year end. 0 Quote Link to post Share on other sites More sharing options...
Zappa 0 Posted December 1, 2011 Share Posted December 1, 2011 There's quite a few unanswered questions here. To anyone knowledgable about finances and accounts willing to speculate based on the figures available: How are the club's finances likely to look next summer if say £10m isn't brought in in the January transfer window? 0 Quote Link to post Share on other sites More sharing options...
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