oldskyblue58
CCFC Finance Director
The financials. Will summarise then make a few points
Turnover up - improved
Gross Profit up - improved
Gross margin up - improved
other income up - improved
administrative expenses down - improved
Operating profit before exceptional & other shareholders 2017 £499K loss 2016 £3.772m - improved
exceptional costs down - improved
operating loss 2017 £1.384m 2016 loss £6.212m - improved
Finance costs down - improved
loss for year 2017 £3.809 2016 £6.370 - improved
Lease value up - improved
Stocks up - positive possibly but is cash tied up
trade and other debtors up - positive but is better in cash
Loans & borrowings up - negative
deferred tax up - only a negative if lease actually sold at that value it isnt payable otherwise
deferred income long term down - could be positive or negative
trade creditors and other creditors down - positive
current loans and borrowing up - negative
deferred income current up - could be positive
Cash flow shows 1.5m deficit 2017 in 2016 £279 surplus - negative
Looked at it like that then still heading right direction
Forget the fingers being pointed at the audit report most of those comparatives are positive. The key one however is the last one which shows a squeeze on cash flow. (however we know that the shareholder has put in £1.1m). That is their biggest problem, cash flow, that will be softened by the shareholder having make sure enough is kept on deposit for interest payments if the company cant, under the new bond terms
Revenue in total is up. But some areas show there is still room for improvement. This seasons crowds have dropped off and they havent got a home semi final so there will be some revenue to catch up in 2018. Central distributions from RFU have gone up 1.1m this year The Ricoh deal was a rolling deal it is now a two year deal so thats money they can rely on.
Wage costs are down basically less employees.
in the year they spent 1.64m on fixed assets mainly furniture fittings & equipment
The debtor book has grown - so they are owed 600K more than last year
Borrowings are up 5.2m . The Bond has not changed Richardson put it 3.8m the rest mainly over draft facilities
Creditors are down 2.9m mainly because trade creditors & accruals have fallen but what is owed to HMRC has doubled
Make of it what you will but whilst I think they are finding it tight they are not about to go bust any time soon whilst Richardson is prepared to stump up. Following the new bond agreement then even the pressure on interest payments would appear lessened and the basis of calculation of the EBITDA covenant has been relaxed to include shareholder contributions will ease the pressure too. Their biggest issue is cash flow same as many sports clubs, but ...............
Final thought, they need cash flow, they now have a tenant who has no obvious alternative ground option in Coventry, who it is common knowledge have expectations of sizeable transfer funds (Maddison Wilson etc) who are still taking them to court.........................
Turnover up - improved
Gross Profit up - improved
Gross margin up - improved
other income up - improved
administrative expenses down - improved
Operating profit before exceptional & other shareholders 2017 £499K loss 2016 £3.772m - improved
exceptional costs down - improved
operating loss 2017 £1.384m 2016 loss £6.212m - improved
Finance costs down - improved
loss for year 2017 £3.809 2016 £6.370 - improved
Lease value up - improved
Stocks up - positive possibly but is cash tied up
trade and other debtors up - positive but is better in cash
Loans & borrowings up - negative
deferred tax up - only a negative if lease actually sold at that value it isnt payable otherwise
deferred income long term down - could be positive or negative
trade creditors and other creditors down - positive
current loans and borrowing up - negative
deferred income current up - could be positive
Cash flow shows 1.5m deficit 2017 in 2016 £279 surplus - negative
Looked at it like that then still heading right direction
Forget the fingers being pointed at the audit report most of those comparatives are positive. The key one however is the last one which shows a squeeze on cash flow. (however we know that the shareholder has put in £1.1m). That is their biggest problem, cash flow, that will be softened by the shareholder having make sure enough is kept on deposit for interest payments if the company cant, under the new bond terms
Revenue in total is up. But some areas show there is still room for improvement. This seasons crowds have dropped off and they havent got a home semi final so there will be some revenue to catch up in 2018. Central distributions from RFU have gone up 1.1m this year The Ricoh deal was a rolling deal it is now a two year deal so thats money they can rely on.
Wage costs are down basically less employees.
in the year they spent 1.64m on fixed assets mainly furniture fittings & equipment
The debtor book has grown - so they are owed 600K more than last year
Borrowings are up 5.2m . The Bond has not changed Richardson put it 3.8m the rest mainly over draft facilities
Creditors are down 2.9m mainly because trade creditors & accruals have fallen but what is owed to HMRC has doubled
Make of it what you will but whilst I think they are finding it tight they are not about to go bust any time soon whilst Richardson is prepared to stump up. Following the new bond agreement then even the pressure on interest payments would appear lessened and the basis of calculation of the EBITDA covenant has been relaxed to include shareholder contributions will ease the pressure too. Their biggest issue is cash flow same as many sports clubs, but ...............
Final thought, they need cash flow, they now have a tenant who has no obvious alternative ground option in Coventry, who it is common knowledge have expectations of sizeable transfer funds (Maddison Wilson etc) who are still taking them to court.........................
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