Derby County Accounts 13/14

[ramblur]

Believe me davenport,it's mighty difficult to explain such complex matters in a way the layman could understand.I often wish someone  would take over and give me a rest,particularly with my autoimmune system attacking me right,left and centre now.I can guarantee that if anyone experienced a typical week of my existence these days,he or she would be absolutely shocked,and I'm not being melodramatic here. A good friend recently told me that I wasn't living anymore,just existing to suffer.She was probably right,but I can't afford to think along those lines.

Contrary to what I guess most posters impressions of me are (and I bet we all draw up our identikits),I'm actually a cheery,fun loving guy and it's this attitude that a nurse said would pull me through,on the last day of a long hospital stay last autumn.

In fact I caught out a consultant today with a joke (some may have heard one about a cat drinking petrol).I had a really good guffaw and got the reward of the possibility of four weekly visits to a place 70 miles from home.Expensive joke that.Now if I get hold of that cat.......

[ramblur]

Interesting to see that of the £5m increase in sales, £2.5m is down to increase in TV revenues. I guess that's a combination of an improved deal, more appearances on the TV and of course the play offs. I would think that this would increase again in 2015 given that we've had more games (I think) on and should have at least 2 games in the play offs. Gate recepits also increased £800k, I'd expect this to increase again as attendances have been consistently high this season.

Worrying though is the wages levels, this has increased £4m on the previous year. Thinking back, the main ins were Martin, Ward, Wisdom, Bamford, and Thorne, and of course, McClaren who will probably be on quite a bit more than Clough was (likewise his staff).

This season though, we will see the effect of the new contracts offered to most of the senior squad, Thorne's wages, Ibe, Bent, Ince, possibly Christie, Albentonsa, and then loan fees on top. It's likely we will need another cash injection to cover losses next season.

​If you look at the directors' report,most of the £2.5m is down to the play offs.I'm starting to think the final yielded somewhere in the £1.5m-£2m range.Pure guess though. I think the £4m wage increase may include the Clough and staff compo,which (hopefully) won't be repeated this year. I noticed that Admin/Marketing staffing had increased by 8,but these appeared to be part timers.

[ramblur]

​I haven't looked at any accounts before this year, but I think I understand what you're saying. I presume that when the US investors came in, Global Derby was set up to buy shares in Gellaw, as I presume the US Investors wanted a clean/new company they owned to buy the original x% of the shares, rather than a US company buying UK shares off Pearson, which may create more complicated tax issues (I think that's exactly what you've said there!)

Companies House has now acknowledged recepit of the holding company accounts, will be interesting to review these ones too.

​My brain hurts-I'm not even sure what I said now (must return to it tmw)! Yep,I noticed this at CH as well.

[deano180]

Keep up the good work ramblur, it's much appreciated! 

[Diag Ram]

​If you look at the directors' report,most of the £2.5m is down to the play offs.I'm starting to think the final yielded somewhere in the £1.5m-£2m range.Pure guess though. I think the £4m wage increase may include the Clough and staff compo,which (hopefully) won't be repeated this year. I noticed that Admin/Marketing staffing had increased by 8,but these appeared to be part timers.

​There's £867k in the P&L for "changes to management/coaching staff," The layout isn't great but I think that is part of the £4m increase in note 4. Another £200k is in respect of increased director's remuneration (note 5), so that would explain just over £1m of the £4m. I would have thought that Wisdom, Martin, Bamford would probably have been on a fair whack, they came from Premier League clubs, rather than most of Clough's signings who were SPL or League 2. It's a greater risk but with it comes greater reward. Eventually.

Out of interest, I downloaded Forest's accounts, the figures are quite alarming, if there's enough interest I'll post about these, trying to compare them to Derby's where relevant.

[Tombo]

Ok,sorry mate.I'm just dog tired and getting a bit grumpy too. Now what's all that in Chinese?

​I didn't mean to undermine your work when I said that. Don't mind me, I'm sure I'll get to grips eventually when it gets important. Maybe someone cleverer than me will decipher it and explain it at some point.

I appreciate the detective work, even if I don't get it

[rammieib]

Ramblur - random question but do the accounts anywhere single out the cost of policing for a season? (Season being the financial year the accounts cover)

thanks

[ramblur]

Global Derby accounts are now out and I can finally resolve the mystery of the £6.77m -it did,as I thought,relate to the summer window. These accounts were signed off at a much later date(30 March),so PBSE within covers both transfer windows.We sold players for net proceeds of £264,577 and made purchases (all inclusive) of £7,918,096,which means that in the Jan window we made additional sales of £145,500 (mainly Coutts,I guess) and additional purchases of £1,141,039 (Shotton,Albentosa,Warnock?).

Don't know if I'll be posting any more now as these accounts are quite complicated and need a very clear head. 

[ramblur]

Ramblur - random question but do the accounts anywhere single out the cost of policing for a season? (Season being the financial year the accounts cover)

thanks

​No rammieib,the accounts don't itemise policing costs.However,if you're particularly interested you could make application to the Derbyshire Constabulary to disclose same under the Freedom of Information Act.

[ramblur]

At first glance it now appears that nothing is now owed to the ultimate parent company (the investors),so no loans after all.There appears to have been a very large issue of Global Derby shares during the year,bought by the ultimate parent company (or maybe exchanged for debt,hence the zero debt now).On this basis I must apologise to our owners for making assumptions based on the DCFC/Gellaw results only.

I'm going to have a devil of a job unraveling all of this,as it appears quite complex.I didn't bother downloading GS Derby accounts last year,as I didn't think there'd be anything of interest there (although a large debt to the owners was shown,which I've got from the comparitive figures shown in this year's accounts). Grrr,I'm going to have to download 12/13 now as well to trace all of this through.Just what I wanted.

These accounts don't seem to make any mention of the Barclays debenture,so we may have a long wait there.

[Diag Ram]

Happy to lend a hand, I am supposed to be an accountant after all

[ramblur]

When the club reported on the accounts,I noticed that a fan on 'comments' asked how the income could have gone up £5m,the wages £3m (though it looks like this figure excluded compo),and yet the loss was virtually the same. I've gone through the ups and downs and here are the results:-

Firstly the income side. Turnover up £4.74m, Fixed asset profit £98k, Windfall from waived interest £1.069m. Total £5.907m

Expenditure. Wages up £4.337m,Impairment of players' regs £581k, Reduced profit on sale of players' regs £173k, Compo £867k.  Total £5.958m .

There'll be other changes that aren't itemised in the accounts,but the above shows up the main reasons.

​Having said on page 6 that I expected compo to be part of the wages figure,I now find that I've effectively duplicated it in the "Expenditure " side above,as it will have formed part of the wages increase. Consequently,the total should be revised to £5.091m ,so apologies for this.

I must admit that I was surprised that my original totals were so close to each other,given that a decent chunk of expenditure is just part of global figures.Hence the balance required is hidden within these figures.

[ramblur]

Keep up the good work ramblur, it's much appreciated! 

​Thanks deano.

[ramblur]

​I haven't looked at any accounts before this year, but I think I understand what you're saying. I presume that when the US investors came in, Global Derby was set up to buy shares in Gellaw, as I presume the US Investors wanted a clean/new company they owned to buy the original x% of the shares, rather than a US company buying UK shares off Pearson, which may create more complicated tax issues (I think that's exactly what you've said there!)

Companies House has now acknowledged recepit of the holding company accounts, will be interesting to review these ones too.

​Yeah,having recovered a bit now,that's the gist of what I said.

[ramblur]

Meant to mention this earlier - a stadium revaluation was carried out in 2013,but as a result of same it was decided that the current asset figure in the accounts was still appropriate,so no changes were made.

[ramblur]

​I didn't mean to undermine your work when I said that. Don't mind me, I'm sure I'll get to grips eventually when it gets important. Maybe someone cleverer than me will decipher it and explain it at some point.

I appreciate the detective work, even if I don't get it

​Thanks Tombo.As I said,I was very tired last night (I'm even going back to bed again shortly ,because I've not yet recovered) and a bit grouchy,so it's ok.

[ramblur]

Having looked again at the holding company's accounts,I can now confirm that £24,502,138 shown owing to the parent company in 12/13 has now reduced to zero in 13/14,a large allotment of Global Derby (UK) Ltd shares made during the year having more than covered this amount.Hence funding has come from the investors via equity in Global Derby and has arrived within DCFC in the form of equity.

There's nothing else of  much interest to fans in these group accounts as the vast majority of it relates to DCFC activities already covered . For any who download the Global Derby accounts and wonder why the loss in the consolidated P/L statement is £1.8m less than the DCFC loss,the difference is represented by the write down of negative goodwill.This arises within the group (in Global Derby,going back to acquisition), but not within DCFC.

[Chris_D]

Global Derby accounts are now out and I can finally resolve the mystery of the £6.77m -it did,as I thought,relate to the summer window. These accounts were signed off at a much later date(30 March),so PBSE within covers both transfer windows.We sold players for net proceeds of £264,577 and made purchases (all inclusive) of £7,918,096,which means that in the Jan window we made additional sales of £145,500 (mainly Coutts,I guess) and additional purchases of £1,141,039 (Shotton,Albentosa,Warnock?).

Don't know if I'll be posting any more now as these accounts are quite complicated and need a very clear head. 

​So this confirms loans are definitely not included then, the additional £1.1m in Jan can't include Ince, Lingard and Bent, it's too low once you take into account the £500k-odd Albentosa cost, plus the Warnock and Shotton undisclosed deals.  

[ramblur]

I suppose it's time for a very brief summary.As I mentioned before,the net assets position is now very healthy and I'd imagine we must have one of the strongest (if not the strongest) balance sheets in the Championship.Furthermore,as at 30/6/14 the net book value of intangible assets (players' regs) stood at £2.634m,way below the value of the squad as at that date (the figure will obviously increase this year due to the hefty additions).

Although with this set of owners I feel I don't particularly need to, I've again looked at the amount owing to the Revenue at the year end,£1.444m (£400k up on previous year).At any given point in time any company will usually owe amounts to the Revenue,and our figure looks very reasonable in relation to the scale of the activities.The increase will be explained by the increase in wages (more PAYE/ENIC) and increase in advance S/T sales (more VAT),in the main.

Ploughing increased revenues back into the playing side means that our losses are settling at a consistent level.The only possible concern here would be if there were to be a deterioration in results,possibly leading to a fall in revenues.If this were to happen,would we be able to cut expenditure as quickly as revenues fell? However,any club faces this every season.

As far as next season goes,I'll try and wear the hat of one of our investors.If we'd gained promotion,little to be said.Should we stay in the Championship,I might look at what's been invested to date (I think the £9m next year will take working capital to around £50m,with acquisition on top) and start to think about the ND situation down the road-it's frightening how quickly spending can stack up. In that context I might think to myself that a lot of loot has gone into the Academy and Development Squad,and it's about time some of these should feature,rather than calling on expensive loans.I might also think that any major purchases should be self financed from sales.But,there again,I'm not an investor!

 

[ramblur]

​So this confirms loans are definitely not included then, the additional £1.1m in Jan can't include Ince, Lingard and Bent, it's too low once you take into account the £500k-odd Albentosa cost, plus the Warnock and Shotton undisclosed deals.  

​That's right Chris,loans (by definition) aren't purchases.I've never believed them to be included.