Why are the financial results late?

[Weston Saint]

I posted this a few weeks back, and it is still something that I can imagine is causing us problems:

 

 

The Annual Report and accounts do indeed relate to the financial period, which on the whole was before Lowe & co returned. But these reports also include a forward looking perspective, namely the concept of Going Concern (i.e. the concept that assumes that the Club will continue in business in the foreseeable future).

 

I wouldn't be at all surprised if there was much heated discussion between the Board, the Auditors and the Bank about this issue.

 

Signing off last years numbers won't be the issue, it will be convincing the auditors that we are a going concern that is probably causing us problems.

 

 

 

BTW, they aren't "late" as in overdue, as although in normal seasons they were often out in September, last year they came out late November (although that delay also probably had a lot to do with the SISU offer, Going Concern issues, forcing the Executives to jump etc etc etc).

 

Agree with all that particularly the "going concern". Unless SLH can secure some working funds we are done for. But I am pretty sure it can be sorted short term.

[saint1977]

Should read:

 

£16m went out the door in our first year down (if you exclude the one off parachute payment) and even now we're still losing money hand over fist.

 

PS Granty sort out the editing problem.:smt110

 

That sums it up - Lowe's building of the Staplewood White Elephant and the associated recruitment and severance costs that went with the personnel. It looks more like the People's Palace in Bucharest every day and is having a similar impact on SFC's future.

 

Of course the SMS mortgage doesn't help but we do need a stadium to play in and we know the fanbase is big enough when we haven't got a hated board in place. Lowe is an idiot, why didn't he get Cowen involved who knows his limitations and has a better acumen than Rupert IMO to help out Wilde? At least if Rupert had taken a back seat it might not have divided the fans so fatally.

[saint1977]

No, not really.

 

You put it off until the last minute because:

 

a) It completely shafts lots of other people;

 

b) There is a chance (hah!) that someone could find some money somewhere in the interim.

 

The only caveat is that if it is completely inevitable it would certainly be best to get it over with in time to ensure there is no point penalty next season. I can't believe it is that much of an inevitability though. NO ONE will benefit from it.

 

That's pretty much what Coventry were going to do and the SISU offer was accepted minutes before Cov were going to go in. I'd imagine that the board will delay it as long as possible but the Bank may take that decision out of Lowe/Askham/Wilde's hands. Certainly Rupert can't say "If anyone wants to buy the club they'll have to come up with £25m", it wasn't your club to start with Lowe and it certainly isn't now.

[saint1977]

Agree with all that particularly the "going concern". Unless SLH can secure some working funds we are done for. But I am pretty sure it can be sorted short term.

 

Thing is though Weston, and you seem better informed than most on this site, how short is "short-term"? Given that the current board seem to have no strategy whatsoever for increasing income, if slashing costs isn't really working in the medium-term by itself, how long before the bank call time? Hate to think what happens then, I really do. If some people think Administration is an easier option, be careful what you wish for. League 1 and kicked out of SMS - doing a Rotherham would be a very gloomy scenario indeed but not impossible.

[John D]

PLC accounts have to filed with Companies House within 7 months of the financial year end so for SLH this will be end of January.

 

As others have mentioned I think the preparation of the a/cs on a going concern basis is potentially a stumbling block. We have had a "matter of emphasis" statement re going concern in the last 2 accounts and things have got worse since. As an ex auditor and based on the limited info I have I would not allow them to be prepared on a gc basis. Admittedly I have no inside knowledge so this could be well wide of the mark.

 

There may be some quick sales in january to try and generate some cash to allow us to continue on a gc basis and to get Barclays support.

 

Alternatively they could be hoping for a run of wins to allow them to get them out when the mood is more upbeat or Dave Jones the FD may have lost some of his staff in cutbacks so is having to type them up himself!! Perhaps he can't afford a printer. Think it was last years accounts that originally still had tracked changes on them.

[Weston Saint]

Thing is though Weston, and you seem better informed than most on this site, how short is "short-term"? Given that the current board seem to have no strategy whatsoever for increasing income, if slashing costs isn't really working in the medium-term by itself, how long before the bank call time? Hate to think what happens then, I really do. If some people think Administration is an easier option, be careful what you wish for. League 1 and kicked out of SMS - doing a Rotherham would be a very gloomy scenario indeed but not impossible.

 

I am not really sure what "short term" means. I suspect it will be until the end of this financial year. If we survive financially I can state without doubt we will still have a very bumpy financial ride for the next couple of years.

[hughieslastminutegoal]

And while on the subject of Rupert Lowe and soul legends can I just say Levi Stubbs RIP.

 

Ah I remember hearing it in the summer - Rupert Lowe to Michael Wild: "Reach Out, I'll be There" and Michael Wilde's response: "Loving You is Sweeter than Ever".

[saint1977]

I am not really sure what "short term" means. I suspect it will be until the end of this financial year. If we survive financially I can state without doubt we will still have a very bumpy financial ride for the next couple of years.

 

Thanks WS, you are certainly not going to be wrong in your analysis either. Trouble is, this could be a best-case scenario as well!

[Amesbury Saint]

Lowe has to line up the final nails in Wilde's coffin before the AGM can be announced. ......

 

 

is that still happening?