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.
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.