Accounts 2012 - £1.36M Loss

[glasgow sheep]

Can't see anything on the fishal site.  This is nicked from Mad, posted by Redross.

Not sure how the turnover rose, but good to see. Losses down on last year but still not great.

Major point is that the shareholders have, if I understand this correctly, written off the loans the have given afc.  Suspect they had to in order to keep us solvent.

Underlying issue is the poor performance on the pitch which probably accounts for the losses in terms of prize money and crowds.

 

Quick read of it shows the following

 

S.Milne says the period covered in the report to be "the most tumultuous in the history of Scottish football" Really ?

 

Clubs net assets are less than half of its called up share capital so will have to be discussed at the AGM

 

Shareholders loans to the club stand at £5.75 million in aggregate and the shareholders now wish to make these loans permanent and therefore convert the loans into a new class of Prefernce Shares. This would in time remove liabilities from the balance sheet of £5.75 million

 

Turnover rose from £7.462 million to £8.337 million

 

Sales of Aluko, Foster and Grimmer included but not Fyvie by the look of it.

 

Wages down sligthly from £5.093 million to £5.018 million. But, after adjusting for termination payments showed an increaase of £255,000 due to the wage bill from the new inhouse club shop in the figures for the first time since 2004 and additional players arriving in January 2012 to cover for injuries and invest in the team for the new season.

 

Wages to turnover is 60 per cent, in line with industry expectations and unchanged from last year

 

During the year £68,000 was paid as compensation for loss of office presumably for W.Miller

 

The loss for the year was after taxation £1,365,000 (2011 £2,116,000)

[glasgow sheep]

Annual Report can be accessed here:

 

http://www.afc.co.uk/staticFiles/de/b9/0,,10284~178654,00.pdf

 

[glasgow sheep]

I make our total debt £16.8M 

£11M re-payable within a year

£5.75M being converted to shares

[manc_don]

Thats a kind of scary figure 

[Superstar Tradesman]

All those decades of cost cutting have obviously paid off.

 

What we should do is build a £20m stadium out of town that nobody wants.  That'll solve it.

[KGB]

Good news on the debt front. Well done MIle and Aberdeen Asset Management in writing off nearly £6 million between them

http://www.bbc.co.uk/sport/0/football/20516243 

[mizer]

Indeed good to see that figure wiped off the debt but its still fair whack of debt.

[manc_don]

Credit where credit is due, that is a great gesture from them and a great boost for the club.  Certainly I think it's a signal of intent to the fans, or i hope it is anyway.

[Edinburghdon]

Credit where credit is due, that is a great gesture from them and a great boost for the club.  Certainly I think it's a signal of intent to the fans, or i hope it is anyway.

 

Agree with you there, wonderful gesture from Milne/AAM, effectively cutting the debt by 1/3.  Hopefully that'll keep people from getting on Milnes back for a while.

 

 

[TENEMENTFUNSTER]

Agree with you there, wonderful gesture from Milne/AAM, effectively cutting the debt by 1/3.  Hopefully that'll keep people from getting on Milnes back for a while.

 

 

 

It is a start. A very good one but just a start nonetheless.

[Kowalski]

You could say that its the least they could do considering they got us into the debt in the first place!

[dave_min]

You could say that its the least they could do considering they got us into the debt in the first place!

 

Indeed.

[glasgow sheep]

DST take on things:

 

The DST Board have reviewed the Annual Report of the club for the year to 30.06.12 and, in common with most other football clubs, the figures do not make great reading.

 

Despite gate receipts going down by 12.8%, turnover increased mainly due to the club shop now being run in house and increased TV monies from two cup semi-final appearances. With operating costs remaining at the same overall level as the previous year the annual net loss was reduced to £1.365million from £2.116million. The Director’s Report states that “The Board will primarily concentrate on achieving an operating breakeven position in the short to medium term”

 

The debt owed to the bank remains the same at £10.82 million, and was due for repayment on 30^th November 2012, but the accounts state that “At the date of signing the negotiations are well advanced and the directors are confident that the negotiations will be satisfactorily concluded”.

 

Stewart Milne Group (SMG) provided an additional loan of £1.25million during the year. The long term loans from SMG and Aberdeen Asset Management (AAM) now total £5.75million but it is proposed at the AGM to pass a resolution to issue £5.75million preference shares (with no dividend rights) to replace these loans. DST welcomes this commitment from SMG and AAM which will boost the net assets as the loans will now become share capital.

 

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The auditor’s report draws attention (through an emphasis of matter paragraph) to the £2.657million to date spent on development costs for the new stadium which is shown as an asset on the balance sheet. The Chairman’s report states that “much of the work relating to Loirston and Calder Park remains relevant which is why the Board continues to hold as an asset the development costs to date”. DST remains concerned, as the ageing stadium is costly to maintain and funding has to be found for a New Stadium.

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[/size]In a recent survey by PKF of 62 UK football finance directors, 58% admitted they were dependent on one or more principle shareholder to keep the club afloat. AFC are no different as the continued support of the major shareholders is critical to the long term survival of the club, along with the support of the bank.

 

Many of you, as shareholders in the club, will have received your annual report for the year ended 30^th June 20102.  If not, then hopefully the above was a useful summary.

 

The Trust Board are arranging a meeting with Duncan Fraser to discuss the financial results. We should be grateful for any comments you have on the accounts and for any questions that you have on the figures.