Financial Results 2015/2016

[ramblur]

Just a final point. I had an exchange of views somewhere with G STAR RAM (which I can't find) over the £52m of new share capital (confirmed in the accounts).I pointed out that some of this may well have been advance funding for this year.A rise in cash of c£9m during 15/16 seems to confirm this. The cash element of the loss plus capital payments came in at just over £42m.

The sun is blazing in the land of Erin and there's a good game to look forward to.Haven't felt this good in ages.

[G STAR RAM]

Ok I've had a brief read through. A few points:-

The transfer record was broken 3 times in 2015. So Butterfield must have been in excess of Ince for transfer fee.

Re Clements sacking "A poor run of form, however, from the team in early 2016 saw him lose his job..."

Turnover up across the board on substantial revenue streams (ticketing, commercial, tv and league related) so someone somewhere is doing a good job!

Circa £6m spent on pitches, undersoil heating, and floodlights.

Loan of £12m for the mortgage cancelled. (This has 'artificially' reduced out reported loss).

Key performance indicators are league position and attendances. Interesting!

Employees up from 225 to 251.

Compensation payments made to 'key management' was £283k. Definitely surprised by this! 

Directors pay down from £450k to £195k. The previous year would have included the Americans so it would appear the £195k is Rush only.

Impairment loss on a debtor of £400k...probably Forest!

Our bank exposure is down to £3m.

£52m investment from MM via conversion of loans to share capital.

A further £29m funding received this season.

It appears Hendrick sale was for £9.6m (can't remember if anyone else has been sold).

Fees for Vydra (£8.5m) and Anya/Nugent (£5.5m)

 

 

 

[ramblur]

26 minutes ago, G STAR RAM said:

 

£52m investment from MM via conversion of loans to share capital.

 

 

 

 

That might be a bit misleading to some.What actually happens (same thing happened with the Americans) is that Mel funds the ongoing cash flow requirements during the year via short term loans and then at some point converts to share capital.This means that the cash flow statement will show new debt/new debt repaid in full/new share capital.

On a different point,I wrote somewhere that I thought we might need to cull up to as much as £10m in wages/amortisation combined for 18/19 (if still in this division). The published results haven't altered my view on this. What I should have pointed out,however, is that some of these cuts could happen in 18/19 itself,i.e. spread over 2 years and therefore less demanding.

I noticed Gary mentioned that it might be unrealistic to expect to move out all players surplus to requirements straight away and talked of "attrition". I don't know what contracts expire at end of next year and even then it would need to be players he didn't want.

Footnote:- There was only one paid director in 14/15,which must have been Rush

[G STAR RAM]

16 minutes ago, ramblur said:

Footnote:- There was only one paid director in 14/15,which must have been Rush

Did not have 14/15 to hand but had it in my head there was a period of overlap (where it was Rush/Glick for part year). So average directors would still have been 1. Can't remember when Rush was appointed.

Quite a pay cut for him this year then unless he is paid through other companies?

 

 

[ramblur]

5 minutes ago, G STAR RAM said:

Did not have 14/15 to hand but had it in my head there was a period of overlap (where it was Rush/Glick for part year). So average directors would still have been 1. Can't remember when Rush was appointed.

Quite a pay cut for him this year then unless he is paid through other companies?

 

 

Pay of highest paid director in 14/15 equated to total directors' emoluments ,so there was only one director.Perhaps Rush is getting free/heavily discounted shares?

Apart from the £3m Co-op loan,the other £555k is shown as owing,long term, to group undertakings.As I'm growing weary of this business,I won't be looking at other companies in the group,so I'll have no idea what this is all about.Might have the makings of a mini rabbit though.

I posted some time ago that I thought a charge document in favour of Barclays might indicate new bankers,and the accounts now confirm this.  

[G STAR RAM]

1 minute ago, ramblur said:

Pay of highest paid director in 14/15 equated to total directors' emoluments ,so there was only one director.Perhaps Rush is getting free/heavily discounted shares?

Apart from the £3m Co-op loan,the other £555k is shown as owing,long term, to group undertakings.As I'm growing weary of this business,I won't be looking at other companies in the group,so I'll have no idea what this is all about.Might have the makings of a mini rabbit though.

I posted some time ago that I thought a charge document in favour of Barclays might indicate new bankers,and the accounts now confirm this.  

I noticed the other day a new company called Derby County Football Academy (or something along them lines had been incorporated).

[ramblur]

3 hours ago, G STAR RAM said:

I noticed the other day a new company called Derby County Football Academy (or something along them lines had been incorporated).

Was aware of its existence,but could never be bothered to look at it.

Going back to your earlier post,although PBSE shows disposal proceeds of £9.667m,I'm pretty certain Shotton and Albentosa were sold for fees during the period covered,so it seems to me the Hendrick fee may have been a lot less than some thought,perhaps enhanced by add ons.

[davenportram]

4 hours ago, G STAR RAM said:

Did not have 14/15 to hand but had it in my head there was a period of overlap (where it was Rush/Glick for part year). So average directors would still have been 1. Can't remember when Rush was appointed.

Quite a pay cut for him this year then unless he is paid through other companies?

 

 

Hang on your talking about an overlap in the 14/15 accounts for Rush joining, he was announced I. september 2012 and started his job in January 2013

 

http://m.bbc.co.uk/sport/football/19625997

[angieram]

22 minutes ago, ramblur said:

Was aware of its existence,but could never be bothered to look at it.

Going back to your earlier post,although PBSE shows disposal proceeds of £9.667m,I'm pretty certain Shotton and Albentosa were sold for fees during the period covered,so it seems to me the Hendrick fee may have been a lot less than some thought,perhaps enhanced by add ons.

Was Hendrick included in these figures? We didn't sell him until this season.

[PodgeyRam]

1 hour ago, ramblur said:

Was aware of its existence,but could never be bothered to look at it.

Going back to your earlier post,although PBSE shows disposal proceeds of £9.667m,I'm pretty certain Shotton and Albentosa were sold for fees during the period covered,so it seems to me the Hendrick fee may have been a lot less than some thought,perhaps enhanced by add ons.

Don't think Hendrick is part of these figures as he was only sold last summer. 

Dawkins and Sswenkambo will be included in that as they were both sold, although I can't imagine it was for much. 

The Academy, if my memory serves me right, has only three directors - Mel Morris, Sam Rush and Darren Wassall. Makeogh of that what you will.

[G STAR RAM]

3 hours ago, davenportram said:

Hang on your talking about an overlap in the 14/15 accounts for Rush joining, he was announced I. september 2012 and started his job in January 2013

 

http://m.bbc.co.uk/sport/football/19625997

I wasn't stating as fact, was saying I can't remember when Rush became a director

[G STAR RAM]

2 hours ago, angieram said:

Was Hendrick included in these figures? We didn't sell him until this season.

Yes but the figure we are discussing is including in 'post balance sheet events' ie after 30 June 2016.

[ramblur]

3 hours ago, angieram said:

Was Hendrick included in these figures? We didn't sell him until this season.

Members often seem to have a problem understanding this,so I'll have another go trying to explain it. Although the accounts run up to 30 June,they're usually 'signed off' towards the end of November.There's a facility called 'Post Balance Sheet Events' which allows the company to report on any significant events between July 1 and signing off,which always includes the summer transfer window.

I remember looking at the DET years ago,and if you turned the paper on its side (back page) you'd find a column headed 'Late News', so the paper had been prepared before the late news was added.Bit like that,I suppose  

[angieram]

16 minutes ago, ramblur said:

Members often seem to have a problem understanding this,so I'll have another go trying to explain it. Although the accounts run up to 30 June,they're usually 'signed off' towards the end of November.There's a facility called 'Post Balance Sheet Events' which allows the company to report on any significant events between July 1 and signing off,which always includes the summer transfer window.

I remember looking at the DET years ago,and if you turned the paper on its side (back page) you'd find a column headed 'Late News', so the paper had been prepared before the late news was added.Bit like that,I suppose  

That's helpful, thank you. I hadn't understood that.

[ramblur]

3 minutes ago, angieram said:

That's helpful, thank you. I hadn't understood that.

My pleasure-don't ever be afraid to question things;best way to learn!

[Diag Ram]

On 4/8/2017 at 09:48, ramblur said:

I would just add that ,although that whopping £27.424m operating loss becomes the starting point for this year,the Hendrick/Martin transactions (mainly),allied to FFP exemptions which now appear to be running at over £5m,almost certainly mean that we'll again be under the £13m FFP threshold.

I was always pretty certain in my own mind that Pearson would have to sell big before any signings,which probably explains why they came relatively late.

Anyhow,that's me done and dusted for the accounts.Ah,this is the life.

Good point well made, although I would point out that the amortisation of player expenditure will probably be significantly higher next year. I'm surprised it's so low this year. If we assume that the £32m on the balance sheet will be written off over the next four years, then I would expect £8m of amortisation before the purchases of Vydra etc. This will offset the £9m gain made on Hendrick. Then of course there is the wages increase that comes with new players, although hopefully we have offset that slightly by offloading Martin's wages when he went to Fulham. 

 

[G STAR RAM]

1 minute ago, Diag Ram said:

Good point well made, although I would point out that the amortisation of player expenditure will probably be significantly higher next year. I'm surprised it's so low this year. If we assume that the £32m on the balance sheet will be written off over the next four years, then I would expect £8m of amortisation before the purchases of Vydra etc. This will offset the £9m gain made on Hendrick. Then of course there is the wages increase that comes with new players, although hopefully we have offset that slightly by offloading Martin's wages when he went to Fulham. 

 

@Diag Ram any thoughts on the compensation to key management?

[Diag Ram]

Actually, having reflected, it looks like what the club are doing is they are writing down the cost down to a value they expect a player to be worth at the end of a contract, so the £8m is a maximum value.

[G STAR RAM]

2 minutes ago, Diag Ram said:

Actually, having reflected, it looks like what the club are doing is they are writing down the cost down to a value they expect a player to be worth at the end of a contract, so the £8m is a maximum value.

At the end of a contract a player is worth £0 as they can leave for free.

[G STAR RAM]

Which players left us (either sold or contract expired) between 1 July 2015 and 30 June 2016?

Or could someone point me in the direction of a site to get this information please?