Healthy Finances

[Kingsmills]

The club have reported a pre tax profit of£220,000 for the financial year to 31st May. Turnover is up from £2,741,738 to £3,262,813.

A top six finish this season or a cup final, preferably both, could see turnover of four million pound next time around.

[kencar]

I guess the comp we get for Brew put us into the black  :003:

[Guest kingkojak]

the club must have done alright out of last years cup run - despite the said cup run being rather cr*p the replays were aired live on sky so surely they mustve racked some spondoolachs in from that! 

[Heilandee]

Well done to all involved in the running of ICT,what a great position to be in with the current state of Scottish Fitba

:022:

Jealous as feck DSC  :007:

[Kingsmills]

The two live SKY matches would certainly have helped.

[caley100]

I wonder how our turnover compares to Scumdee Utd?  wonder what profit they made last year?

[Kingsmills]

Their turnover will still be twice ours. I doubt if they show a profit though.

[Scotty]

I guess the comp we get for Brew put us into the black  :003:

At the end of the day we finally got about 200k for CB - paid in installments (is it all in the accounts ?). So if you remove those payments and the two SKY ties we are still falling a little short. I havent received my shareholder copy yet but do we still have any Pittodrie payments or such like in there ?

bottom line, it sounds like we are walking the fine line between profit/loss but that is far far better, I suspect, than many of the other teams. The interesting numbers to see will be the wages/turnover ratio as that is usually a good indicator of the health of the operation.

[Yngwie]

Wee bit disappointing that the underlying business appears to be lossmaking. Looks like we'll have to generate some transfer fees each season to balance the books.... :007:

[Kingsmills]

I don't think that we need to regard the SKY payments as an extraordinary item any more.

While it wouldn't be prudent to budget for such payments I would like to think that we could now aspire to feature once or twice a season.

[+Tree]

Wee bit disappointing that the underlying business appears to be lossmaking. Looks like we'll have to generate some transfer fees each season to balance the books.... :007:

The underlying figures are not as bad as might first be thought.

In addition to a good amount of the expenditure being 'performance' related - i.e. the players bonuses, failure to proceed in cups, etc would result in lower expenditures as well.

Other 'one off' exceptional items will also be included, from recollection this will include payments in relation to elements of the undersoil heating which I think were noted by DS at one point as being held over into the next FY, as well as costs associated with the football licensing requirements.

What also needs to be known is how much of the Tulloch £400k is include in the income stream, as this figure was a maximum to cover a number of the one-offs. This amount may well have been reduced due to the very good performance and it is clear from a number of sources that the playing staff budgets have been significantly increased (this decision will be based on an objective assessment of this years income and will exclude cup income as this is not guaranteed and is viewed therefore as a bonus).

[Kingsmills]

In addition at least part of the cost of upgrading the floodlighting system will be included in these accounts which will be, without doubt, the healthiest in the SPL.

Whilst the profit and loss account looks healthy the balance sheet remains pretty thindue to the club owning few assets, on the other hand there are only limited liabilities.

[The Mantis]

Although we featured on Sky, the cup 'run' was appalling by our standards, going out in the 4th round to some nonentities from Maryhill (see Foxy thread  :015: :015: :015:)

[Kingsmills]

Otherwise we would have ben at least another £160,000 to the good.

[caleyboy]

I think we should all wait and see what the balance sheet shows. Great to see the company in profit and I hope this trend continues. However, football is a very speculative business and we need a solid base of retained profits because our only assets are the players. Mr Sutherland departs on a high note leaving the new chairman a very big target but I'm sure he has the qualities to get our turnover up and improve the profit margins.

[Kingsmills]

In our case the balance sheet is not a particularly helpful barometer of financial health. The profit nd loss acount is far more important.

[+CaleyD]

The £400k Tulloch investment went straight to the Trust that owns the stadium and would therefore not appear on the club accounts.

[caleyboy]

The £400k Tulloch investment went straight to the Trust that owns the stadium and would therefore not appear on the club accounts.

Interesting - I understood the tulloch money was going to the club and not the trust.

[Kingsmills]

I many respects that doesn't matter as the club have directly benifited from the investment.

[caleyboy]

I many respects that doesn't matter as the club have directly benifited from the investment.

Sorry for being so thick but how has the club benefited from the money going to the trust?

[Kingsmills]

Because the trust put it towards the erection of two new stands.

[+CaleyD]

The point I was trying to make is that our increased turnover has nothing to do with the costs of the stands or the money supplied to cover those costs.  I may be wrong, but I believe the club did make a payment from their own bank account towards the new stands (something like £200k rings a bell).  So depending how that has been written off against the accounts we would have actually shown a higher operating profit if it was not included.  All in all it just adds to how healthy our finances really are when we were able to shoulder such capital expenditure and still turn a profit.

It's no suprise when you see how well we are doing on the financial front that the Bank of Scotland provide all their football club customers with David Sutherlands business plan as the blueprint for making a club pay.

[caleyboy]

Because the trust put it towards the erection of two new stands.

I understood that we were leasing the stands from one of David Sutherland's companies. Please correct me if I am off track here.

[+CaleyD]

The Charitable Trust that owns the stadium owns the new stands and we lease the whole thing from them.