SBS&L accounts 2011 (1 Viewer)

[oldskyblue58]

These accounts pull together the performance of the whole group. As such are probably more important than singling out CCFC or CCFC H. Group accounts exclude any trading or balances existing between the group companies so give a truer value of the entity as a whole

Brief comments

Directors report
Prozone didnt get sold until after year end - strange I thought it went in March 2011
cost cutting mentioned again ccfc identified as a principle risk to business (no surprise there then )
similar disclosures in audit report as other companies regarding going concern

Group Profit & Loss
Split between continuing and discontinued operations. Discontinued is the Prozone element which made a loss of £182K
The rest of the group lost £15m after a write down of goodwill totalling £6.4m which was the goodwill on CCFC & CCFC H that SISU funds bought into
interest paid is up from £554k in 2010 to £1.033m in 2011
actually got some tax back - £30k

Group Balance Sheet

Fixed assets down because of write off of goodwill £6.4m, the reduction in the Ryton Freehold £122k, write off of player contracts £1.7m and plant depn of £358k
Current assets down from 4.2m to 3.8m
current liabilities up from £10.9m to £11.9m
overall the group owes £33.99m more than it has assets (2010 was £17.88m owed) of which £29.7m owed to SISU investors and £2m to ARVO

Cash flow statement
says that SBS&L received £11m in new loans in year and repaid £1.5m on loans in same period (2010 it was £3.5m and £864K)

Notes to accounts

Same going concern notes - there is no guarantee to new funding only an intention plus the shareholders and other funders (ARVO etc) have confirmed their intention not to call loans in
Total employees up from 457 to 610 overall wage bill very similar to 2010 at £12.48m
only directors pay is as disclosed in CCFC H accounts - pretty much RR
paid £1m on interest on "other Loans"

Group companies are
CCFC H (100%) - shares held by otium
CCFC Lrd (100%)
Arena 2001 ltd (100%) - non trading and being wound up I think, shares held by ccfc h
Otium Entertainment Group (100%)
Rhapsody Funding Ltd (100%) Dormant non trading
Prozone Group (100%)
Prozone Sports (99.38%)
Prozone media (100%)
Prozone Sports international (100%)

SBS&L had £731k in the bank at 31/05/11 overall the group had £1.9m including £500k in rent bond

SISU investment funds were owed £29,679,942 (2010 24,099,055) an increase of £5.5m - no interest was charged on this debt

ARVO were owed a loan of £2m

The purchaser of Prozone had also advanced £3.5m in respect of the sale so thats technically a loan at 31/05/11

Total group borrowings were £34.5m compared to £28.4m in 2010

Majority shareholding is held by investments managed by SISU Capital Ltd

ARVO has charge on CCFC & CCFCH assets and owns shares in CCFC H

Thats the brief summary

not a pretty picture is it ..... complete mess and at 31/05/11 SISU were owed £29.7m

 

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[Godiva]

Thats the brief summary

not a pretty picture is it ..... complete mess and at 31/05/11 SISU were owed £29.7m

No, not pretty at all, but we all expected this.

Just so nobody are confused:
The accounts are more than a year old - pretty much the status known to sisu as they forced RR out and took control themself.
The reallity in the newly published accounts should be paired with the cost savings last season.
Now we know why AT had no money - well, we knew it, but now it's on print.

It really is the next set of accounts that will show the effect of the cost savings last season.

 

[stupot07]

I'm totally confused.

We owe £30m to Sisu
Ccfc are £51m in debt
Ccfc holdings are £43m in debt.

How much are we actually in debt?

Ps thanks for the info OSB

 

[Brighton Sky Blue]

So-the ultimate holding company owes £34m, the bulk to SISU and a fraction to ARVO, which itself has a shareholding (albeit minority) in CCFC Holdings. More to the point, this debt has ballooned by £16 million, of which £5.5m can be attributed to an extension in the SISU loan. Thanks a lot for the summary OSB, I'm trawling through the actual documents myself at the moment

 

[oldskyblue58]

I would have expected that Godiva except for a statement in the CCFC acounts

Management continue to work on improving the cost base whilst improving revenue earning capacity, in the next financial year management anticipate a similar result for the underlying business to that achieved in the current year

I do not think the real cost savings will kick in until the 2013 accounts - for the life of me i cannot comprehend why it takes so damn long to address the fundamental core issues of our finances !

 

[oldskyblue58]

I'm totally confused.

We owe £30m to Sisu
Ccfc are £51m in debt
Ccfc holdings are £43m in debt.

How much are we actually in debt?

Ps thanks for the info OSB

no probs stupot

..... ignore the debt figures on CCFC and CCFC H it is really just moving money around the group..... the key debt figures are what SBS&L owe

 

[Brighton Sky Blue]

no probs stupot

..... ignore the debt figures on CCFC and CCFC H it is really just moving money around the group..... the key debt figures are what SBS&L owe

Any idea what the £9 million increase in administrative costs of CCFCH can be put down to?

 

[oldskyblue58]

Any idea what the £9 million increase in administrative costs of CCFCH can be put down to?

they made a provision against the sum that CCFC owed to CCFC H of £8.4m ...... didnt think ccfc could or would repay so wrote it off

 

[blueflint]

cheers osb all i needed was more depressing news but knew it was coming :blue::blue::blue:

 

[Diehard Si]

Thanks OSB. Was hoping to look myself today but totally snowed under at work. Interesting reading your post anyway.

One thing people might need pointing out to any non accountants reading re the £30m balance sheet liabilities > assets is that was always going to be the case. We were in a mess when SISU took us over, so when they bought us they paid off our creditors and all the monies were then owed to them. They couldn't just magic it away. That and our negative reserves will be with us until we trade profitably and turn it positive. It's not a positive point, but it is at least a cushioning blow that of that £34m, only about £2m to £3m is owed to the outside world.

Oh and PS... As OSB said,these are really the best accounts to look at for a picture of the club as a whole, the individual company accounts mean very little without knowning the ins and outs. This is what you need to pay attention to.

 

[wingy]

So OSB many thanks for your break down of where we were. Its still early and i'm sure your still ruminating over the implications to this point ,but is there a chance of a projection to our current point ,or better still to next year ? Probably too many variables?

 

[oldskyblue58]

So OSB many thanks for your break down of where we were. Its still early and i'm sure your still ruminating over the implications to this point ,but is there a chance of a projection to our current point ,or better still to next year ? Probably too many variables?

Sorry got to dodge that one wingy........... your guess for the future is as good as mine. As far as the accounts to 31/05/12 go i think we can be fairly certain they will for CCFC be pretty much the same, CCFC H will disclose any more provisions against amounts channeled to CCFC so again more of the same. The CCFC accounts state as much and you would expect a decent book keeping function at CCFC etc so they should have a good idea

SBS&L should in theory be better because it will include the disposal of Prozone. However as a group then I think the SBS&L group will stay as is because the profit on Prozone should match the football club losses......... but it is only a very sketchy guess

 

[wingy]

Was thinking in terms of squad reduction 33%,income same or a little better,season ticketsGood shirt sales,doubling of prem money +£1m. ABs decent run to Xmas etc might improve losses,Obviously coming season Squad size further 17% reduction ,income likely 50% of last.