The Auditor's comment relates to a point I made in an earlier post regarding the strengthening of the balance sheet through the addition of new assets (stands) and the basic solvency test.
Without the addition of the asset then the short term liabilities and cah flow difficulties over the past year would have made it difficult to demonstrate that, in lieu of a credible increase in income, the club was solvent. The comment specifically shows (understandably) that the Auditors have concerns that the value of the asset cannot be realised in the short term to act as a liquid asset (to offset liabilities coming due).
The current month on month P&L (and resulting run rate) is needed to understand whether this is an improving situation which through further reduction in expenditure and increase in income can be controlled.
The lack of external debt is a positive in relation to all this however I view it telling in terms of cash flow that we decided to move Oakley on in the last window.
I would add that the current board are in many ways dealing with the hand they have been dealt with. Removing the remaining large wages off the books (and I would ask whether we are still paying Foran?) will assist however I'm not convinced that this will balance things out. In simple terms further injection of cash is likley to be needed over the current finacial year
Winning the Scottish Cup again or at least getting to the Semis where the attendance monies are pooled would be a major help......