Quote Saddened!="Saddened!"I see they are discussing our financial meltdown on other forums. Apparently in fighting with Eamon criticising the club's management for their commercial failure.
Spending 78% of revenue on salaries and not increasing turnover.
We're doomed apparently. Anyone have an (unbiased) analysis to share with us?'"
For good reason to!
I always dread this time of year when our accounts are published.
I was hoping that the loss was mainly down to the revaluation of KR. Unfortunately, I’ve just downloaded the accounts and the £1.38M is trading losses. There was the further £1.62M write down loss giving a total loss for the year of £3.01M.
It doesn’t take a genius to know that these losses are unsustainable.
However, the club generated cash of £341K and managed to reduce its net debt from £1.16M to £0.94M which is encouraging. The company though did owe Eamonn’s company £4.3M which shows the level of support he and his co-investors have given and continue to give.
Without their great financial support and at current attendances, we would be a financial basket case.
Obviously, as is said in the accounts, 2011 will be another year of substantial losses especially with reduced revenues from lower attendances at the stobart stadium.
The only way out of this mess is twofold 1) the directors have indicated converting a substantial part of their loans from debt to equity and 2) for US the fans to really show our support at the new stadium and try to double our attendances!
Come On You Saints!!