Global Derby News

[ramblur]

​At those issue prices that is £55.9m of new equity into the club?

Now i read somewhere that a load of outstanding loans had been converted into equity leaving only the mortgage on the stadium outstanding - with your copious analyitical brain Ramblur, did you manage to pick apart how much of the equity was "new" funds and indeed whether we have any of that cash left after funding the 2014-2015 season?

My accounting analysis is a bit rusty - i'm a trained actuary myself and we had to do a bit of this stuff as part of qualification but that was a while ago for me so if I have shown ignorance please bear with me.

​I make it £61,979,417 for ordinary shares + £12m for preference shares. Total cost of acquisition (including AP buyout) was c£16m. The £12m may (or may not) have been used to pay off the bulk of the stadium loan.As this return only goes up to 30/11/14,it's very difficult to draw any conclusions about 14/15,let alone 15/16. All I know is that the £12m appears to have come in between 1/7/14 and 30/11/14, that £5m  cash was shown on the GD B/S as at 30/6/14, and that the 13/14 Gellaw accounts state that £9.4m had been transferred to DCFC after the 13/14 financial year end. One would assume that the £5m formed part of this,and that a further £4.4m must have come from the owners,assuming that the £12m was stadium loan related.

The debt to equity conversion you talk of represented the bulk of the £28m+ share,which was issued during 13/14.

Sorry I can't help further,but you're always playing 'catch up' with these documents -if I knew what equity had been issued up to the current date,things might be different (but even then it might give no indication as to 15/16 funding- it seems to me that funding nowadays initially comes in as loans,in tranches as and when required,and is then converted to equity at the end of the financial year).  

[Van der MoodHoover]

​I make it £61,979,417 for ordinary shares + £12m for preference shares. Total cost of acquisition (including AP buyout) was c£16m. The £12m may (or may not) have been used to pay off the bulk of the stadium loan.As this return only goes up to 30/11/14,it's very difficult to draw any conclusions about 14/15,let alone 15/16. All I know is that the £12m appears to have come in between 1/7/14 and 30/11/14, that £5m  cash was shown on the GD B/S as at 30/6/14, and that the 13/14 Gellaw accounts state that £9.4m had been transferred to DCFC after the 13/14 financial year end. One would assume that the £5m formed part of this,and that a further £4.4m must have come from the owners,assuming that the £12m was stadium loan related.

The debt to equity conversion you talk of represented the bulk of the £28m+ share,which was issued during 13/14.

Sorry I can't help further,but you're always playing 'catch up' with these documents -if I knew what equity had been issued up to the current date,things might be different (but even then it might give no indication as to 15/16 funding- it seems to me that funding nowadays initially comes in as loans,in tranches as and when required,and is then converted to equity at the end of the financial year).  

​indeed so - loan then conversion (on a significantly more modest scale) is how i fund Mrs Hants' small business.

Its an interesting exercise trying to marry up the numbers to the public statements but agree that its probably not worth tying ourselves in knots over. Any idea who owns the 1 £28m share? Is that some sort of "golden share" that place any restrictions on the club?

[ramblur]

​indeed so - loan then conversion (on a significantly more modest scale) is how i fund Mrs Hants' small business.

Its an interesting exercise trying to marry up the numbers to the public statements but agree that its probably not worth tying ourselves in knots over. Any idea who owns the 1 £28m share? Is that some sort of "golden share" that place any restrictions on the club?

​North American Partners own that share-the issue of 1 share at a massive premium was just the most efficient way of dealing with the loan conversions. No restrictions.

[ramblur]

I may need a radical rethink on something I said some time ago re the £9.4m injection this year,which I thought to be too much for working capital requirements. Although 13/14 only required £3.7m,there would have been some big changes in 14/15.Firstly,the cash deficit on operations will almost certainly have increased substantially,and it looks as though there may have been a significant capital spend on the Academy (the non capital element,eg coaches wages,would feature in the cash deficit).The biggest change,however (and the one I hadn't thought through earlier) will be in net payments on player instalments.With a spend approaching £8m,if you imagine the League levy has to be paid up front (and possibly agents' fees) and then even split what's left (the actual fees) equally over 2 years,you've still got a spend of over £4m,with little on player sales to offset.Allied to this,we owed other clubs £2.069m at the start of 14/15,whilst only being owed£187k on sales.

All in all,the £9.4m now looks reasonable in its entirety.

 

On another note,I've just done a couple of quick calculations.

The net asset value shown in DCFC is £27.183m as at 30/6/14. If you add on the £5m cash shown on the Global Derby B/S you get £32.183m. If you then divide this by the number of GD ordinary shares in issue,you get a net asset value (DCFC) of £2.68 per GD share.

If you divide the total issue proceeds £61.979.417  by the number of ordinary shares issued,11.988.953, you get an average issue price of £5.17. 

As I've said earlier,some of this can be explained by undervalued players,but a lot will be down to the financial repercussions of Jewell's reign.

Although a relatively small number of ordinary shares were issued after 30/6/14,I've ignored them for the purposes of the calculation,as their effect is negligible.

[Van der MoodHoover]

 

....but a lot will be down to the financial repercussions of Jewell's reign.

 

​which is a polite way of saying a near financial meltdown created by advancing future parachute payments to justify "investment" in playing assets that turned out to be near worthless?

[ramblur]

I've no intention of going into that one again