Derby County Accounts 13/14

[ramblur]

Thinking about our impairment,we may well have saved nearly £300k in amortisation for 14/15 to partially offset the new arrivals.

[i-Ram]

I'd better explain this interest situation.Although interest on investor loans was never actually payed,it was charged to P/L over the years.The subsequent waiver of the £1m+ accumulated interest charges meant that these earlier charges to P/L had to be reversed (in total).Now normally the interest charge for the year (stadium +HP interest) would be c£500k,but because of this £1m+ credit in 13/14 ,the net effect on interest would have been a c£500k credit,i.e. reducing the loss.

Now because this waiver can't be repeated in 14/15,we already have a £500k negative impact on interest (thus increasing loss v 13/14) ,but it doesn't end there as the interest charge for 14/15 has to be introduced.Now I can't say that this will be £500k as before,because there may have been a change in the stadium loan,hopefully reducing interest.

What we can say however is that the adverse swing v 13/14 will be £500k + whatever interest 14/15 brings (if no change in 14/15 interest v 13/14, then the adverse swing in 14/15 would be c£1m (thus matching the positive swing in 13/14.)

To put it another way,if interest hadn't been waived,then our 13/14 headline loss would have been £8m,as opposed to £7m. 

I'm losing interest if the truth be told.

[ramblur]

Change your bank.