Their Financial Results

jaws73

jaws73

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What can FF Acoountants and Fiananciers read into these figures announced today and what it means for them if this season goes tits up for them?

26 Oct, 2020 16:37
Announcement of Results for the year ended 30 June 2020

- Group revenue decreased by 15.8% to £70.2m (2019: £83.4m)

- Operating expenses including labour decreased by 7.3% to £80.5m (2019: £86.9m)

- Gain on sale of player registrations of £24.2m (2019: £17.7m)

- Acquisition of player registrations of £20.7m (2019: £6.2m)

- Profit before taxation of £0.1m (2019: £11.3m)

- Year-end cash net of bank borrowings of £18.2m (2019: £28.6m)

Unsurprisingly, Covid-19 has had a material detrimental effect on the financial results and the year ended 30 June 2020 saw revenue fall to £70.2m (2019: £83.4m) and profit before tax fall to £0.1m (2019: £11.3m). As discussed in more detail in the Strategic Report, this was largely attributable to the value destructive impact of the pandemic across many aspects of our business. Nevertheless, these results are satisfactory in the circumstances at hand. Our year end cash net of bank borrowings was £18.2m (2019: £28.6m). Post year end we also took the opportunity to increase our existing revolving credit facility from £2m to £13m to provide a further buffer should it ever be required.

The governmental restrictions imposed to protect public health continue to have a negative financial impact on the football industry. Our hard work and measured approach to investment in recent years has provided a degree of protection, but given the inherent uncertainty of the current environment, we must proceed and invest with a degree of caution. Nevertheless, we remain confident in the fundamentals of our football model and since the Balance Sheet date we have strengthened our player squad. Following the year end, we invested in the registrations of Vasilis Barkas, Albian Ajeti, David Turnbull and brought in loan signings Shane Duffy and Diego Laxalt. We also extended the loan of Mohamed Elyounoussi. Moreover, we have retained all of our key players from last season.
 
jaws73 said:
The governmental restrictions imposed to protect public health continue to have a negative financial impact on the football industry. Our hard work and measured approach to investment in recent years has provided a degree of protection, but given the inherent uncertainty of the current environment, we must proceed and invest with a degree of caution. Nevertheless, we remain confident in the fundamentals of our football model and since the Balance Sheet date we have strengthened our player squad.
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I.e we're not giving Neil any more cash to spunk on useless shite, so don't ask us.
 
Godrup99 said:
I'm horrific with financials but the last few sentences are turd polishing
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Yes, I highlighted the bit in red and underlined it as their latest 'acquisitions' will be on the wrong side of the balace sheet since the results were announced with little income forthcoming.

I am beginning to think that they are really desparate for this (supposed) 10 in a row to cash in big time on merchandise for it. I really don't think they foresaw any possibility of them not winning the title this year - for financial reasons they might be bricking it and that alone could see the LB dumped after a couple more reverses.
 
jaws73 said:
What can FF Acoountants and Fiananciers read into these figures announced today and what it means for them if this season goes tits up for them?

26 Oct, 2020 16:37
Announcement of Results for the year ended 30 June 2020

- Group revenue decreased by 15.8% to £70.2m (2019: £83.4m)

- Operating expenses including labour decreased by 7.3% to £80.5m (2019: £86.9m)

- Gain on sale of player registrations of £24.2m (2019: £17.7m)

- Acquisition of player registrations of £20.7m (2019: £6.2m)

- Profit before taxation of £0.1m (2019: £11.3m)

- Year-end cash net of bank borrowings of £18.2m (2019: £28.6m)

Unsurprisingly, Covid-19 has had a material detrimental effect on the financial results and the year ended 30 June 2020 saw revenue fall to £70.2m (2019: £83.4m) and profit before tax fall to £0.1m (2019: £11.3m). As discussed in more detail in the Strategic Report, this was largely attributable to the value destructive impact of the pandemic across many aspects of our business. Nevertheless, these results are satisfactory in the circumstances at hand. Our year end cash net of bank borrowings was £18.2m (2019: £28.6m). Post year end we also took the opportunity to increase our existing revolving credit facility from £2m to £13m to provide a further buffer should it ever be required.

The governmental restrictions imposed to protect public health continue to have a negative financial impact on the football industry. Our hard work and measured approach to investment in recent years has provided a degree of protection, but given the inherent uncertainty of the current environment, we must proceed and invest with a degree of caution. Nevertheless, we remain confident in the fundamentals of our football model and since the Balance Sheet date we have strengthened our player squad. Following the year end, we invested in the registrations of Vasilis Barkas, Albian Ajeti, David Turnbull and brought in loan signings Shane Duffy and Diego Laxalt. We also extended the loan of Mohamed Elyounoussi. Moreover, we have retained all of our key players from last season.
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They made nonprofit and also all their new signings aren’t in this years financials. Christ with figures like this Lennon will be there for life!!
 
The key is how they have funded the purchases when they made no money. Previously they sold Tierney's & Dembeles. They must have taken on debts since to keep it going.

They have cut the wage bill a little but the new signings will surely be earning a fair amount especially Duffy who is rumoured to be on £2m a year.

Unless they take on debt or do a share issue they will have to sell to balance the books.
 
JD1872 said:
How have they managed to spend £20m on players while weakening their team?
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Didn’t you read, they retained “all” their key players from last season.

Apparently Forster wasn’t key to their performances last season. Bark as form say otherwise though. Ha ha
 
jaws73 said:
Yes, I highlighted the bit in red and underlined it as their latest 'acquisitions' will be on the wrong side of the balace sheet since the results were announced with little income forthcoming.

I am beginning to think that they are really desparate for this (supposed) 10 in a row to cash in big time on merchandise for it. I really don't think they foresaw any possibility of them not winning the title this year - for financial reasons they might be bricking it and that alone could see the LB dumped after a couple more reverses.
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And more blatant corruption.
 
B Ferguson 6 said:
Am I reading that right.

those figures don’t even include the substantial fees they’ve spunked on mediocrity in the latest transfer window?
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Profit and loss only includes gains or losses on players sold.

Players purchased have minimal effect on profit and loss with the exception of an amortisation fee.
 
Don't be surprised if they have a share issue soon.
They got permission for it from shareholders at their last AGM.
 
They are reliant on champions league money, every time that they fail to qualify they somehow manage to sell one of their players for £20m
 
Sasa said:
The profit before tax of £0.1m is a misnomer.

INCLUDED within that number is the gain on sale of players of £24.2m.

So without player sales, they ran a £24m LOSS.

No champs league money this year again, they need to shift some players.
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And they’ve sold nobody this summer, if we win this league they are in big trouble, expect every dirty trick in the book to be used this season.
 
Sasa said:
The profit before tax of £0.1m is a misnomer.

INCLUDED within that number is the gain on sale of players of £24.2m.

So without player sales, they ran a £24m LOSS.

No champs league money this year again, they need to shift some players.
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Apparently Christie, Ajer, Ntcham and Eduaord all enter the last year of there contracts next summer.

I think they will look to sell in January.
 
Sasa said:
The profit before tax of £0.1m is a misnomer.

INCLUDED within that number is the gain on sale of players of £24.2m.

So without player sales, they ran a £24m LOSS.

No champs league money this year again, they need to shift some players.
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Who have they sold for that chunk of dough?
 
So they've over £10m less than last year but still a tidy £18m as of June. So why have they upped their tic limit by £11m??? Expecting a few compo claims in Pete???
 
Gents, I’m an accountant and have experience previously with football clubs.

That £24.2m gain on player sale is Kieran Tierney. That’s about it id imagine.

According to google his fee was £25m.

He would have been valued on their books at his agents fee. Which is next to nothing.

When you come up through the ranks of the kids - like I think he did - he has no value. He wasn’t bought. Therefore he is valued at a nominal fee, usually his agents fee.

So they’ve made a £100k operating profit after making around £25m on the sale of Tierney.
 
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