CornwallRam Posted February 25, 2012 Share Posted February 25, 2012 [size=3]I’m on a seven hour train journey from Leeds to Cambourne.[/size] [size=3]I’m bored and only have a sporadic internet connection so I can’t look up the figures.[/size] [size=3]I was just musing on GSE’s ‘miraculous’ financial management. Are we now less encumbered by debt than we were when they took over? Clearly, in absolute terms we are. We were around £31m in debt and are now, probably, around £19m in debt - £12m or so less. Seems pretty good that.[/size] [size=3]However, when a bank judges a customer’s credit worthiness they examine income. A customer with a salary of £50k can easily afford a £10k loan, whereas, a customer earning £10k may well struggle to repay a £5k loan. In absolute terms, the first customer would be more in debt, but still in a much better position.[/size] [size=3]Apart from cutting the debt, GSE have presided over a huge cut in turnover. Obviously there is the end of the parachute payments , but also attendances have fallen considerably, with (I would expect) a corresponding fall in revenue from merchandise and catering (I am informed that the catering contract has a clause where the payments vary in line with attendances, so less people in, less money from Delaware).[/size] [size=3]So, what does the debt look like when it is taken as a percentage of turnover? Are we really in a better position now than then?[/size] [size=3]P.S. I don’t know the answer, but I’m hoping that certain people on here can keep me entertained by discussing itJ[/size] [size=3] [/size] Link to comment Share on other sites More sharing options...
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