Club Accounts

[BeaverWatcher]

For the year end May 2024 are now out.

Headline figures

575k spent on the ground, not over 1 million quid.
Loss 1.1 million.
Ramayana 1.4 million investment converted in to shares but not shown as share transfer on co. House, yet.
350k shows as owing to Ramayana at year end.
Increase in ft employees from 21 to 46.

Link https://find-and-update.company-informa ... ng-history

[geedub]

Interesting that somebody goes to the trouble to get the accounts filed on the very last day before the deadline but still nobody bothers to file the missing issue of equity shares form...

[Tony]

As expected, a substantial loss incurred in the year to 30 May 2024 and when added to the loss made by Ramayana Ventures, nearly £800,000, you can understand why the abrupt handbrake turn at the end of the season. All for 9th place. At least the owners were spending their own money. Breaking down the limited information available in the abridged accounts, the club incurred a loss before Depreciation of £1,151,771. It spent a further £628,111 on infrastructure, a total of £1,779,882. This was financed by a net increase in trade creditors of £14,232, a share issue of £1,396,59, a decrease in own cash balances of £33,035 and an intracompany loan £327,032, a total of £1,756, 658 (the figures should balance each other but the general picture is clear on how the losses and capex spending were financed). As noted above the employee number shot up to 46 from 21 but I suspect this included a lot of Academy lads who were brought in to replace volunteers. They would not be full time and probably only a small part of the total wage bill. We can only guess at the size of the player budget and associated costs of the additional full time staff brought on board but clearly a substantial increase on previous seasons.

So what of the current financial year? We'll not know until this time next year but the only information released by Ramayana was the conversion of intracompany loans into equity at the back end of 2024. This might just be the £350,000 loan shown in this balance sheet in which case there would be no further cash injection. However, Ramayana may have injected further loans into the club. There are no filings at Companies House to suggest any more transactions regarding new equity raising so this is currently an unknown.

[EastTerracer]

Seems to confirm that the brothers played loose with the investors money. Apart from some ineffective and probably expensive hires, it is still very difficult to see how £600k+ was spent on infrastructure.

[JimS]

....
At least the owners were spending their own money. ....

Are you sure this is true?

Or have they effectively used the money of others to build up a debt which is now owed to them?

[EastTerracer]

....
At least the owners were spending their own money. ....

Are you sure this is true?

Or have they effectively used the money of others to build up a debt which is now owed to them?

I don't think the brothers put much, if any, money in. Maybe they took some out though.

Myself and Stefano are not wealthy, don’t have capital. But we’re very good at building a story that makes sense for people to bring capital into, because they believe in our skill set and our playbook.

(https://www.cityam.com/theyre-the-real- ... ghs-story/)

[geedub]

....
At least the owners were spending their own money. ....

Are you sure this is true?

I think the point is that the club hasn't racked up any third-party debt/borrowings (as far as we are aware). The losses and infrastructure investment have all been funded by cash invested in Ramayana by the ownership group.

[Tony]

Correct.

[JimS]

....
At least the owners were spending their own money. ....

Are you sure this is true?

Or have they effectively used the money of others to build up a debt which is now owed to them?

I don't think the brothers put much, if any, money in. Maybe they took some out though.

Myself and Stefano are not wealthy, don’t have capital. But we’re very good at building a story that makes sense for people to bring capital into, because they believe in our skill set and our playbook.

(https://www.cityam.com/theyre-the-real- ... ghs-story/)

Blimey the jails are full of people who obtained money like that!

[RogerSW]

Not very transparent, highly risky.
Good for us to make all contingencies.

[HamptonLifer5]

https://x.com/KieranMaguire/status/1896 ... 48725?s=19

Here's a tweet/X post which has brought up our finances for last year. Been a few comments on it.

[EastTerracer]

I tipped off Kieran Maguire some time ago that he might want to look into HRBFC finances. I wonder if he will now do that. I can't see the comments as I deleted X. Anything interesting ?