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RiG

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I hope there is some decent substance to the hydro pump, battery farm and freeport chat, because it all sounds like pie in the sky stuff to me.

 

My (very limited) understanding is that the Going Concern comments from the auditor should scare us a bit.

 

As a caveat, I think all full-time clubs that are not in the Premiership and who don't have a wealthy backer are really struggling right now. Costs are up for lots of different reasons and income is not really going up much unless you get promoted.

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2 minutes ago, hislopsoffsideagain said:

My (very limited) understanding is that the Going Concern comments from the auditor should scare us a bit.

That was in the 2021 accounts as well but our future projections were based on commercial parking opportunities and commercial events being realised. How did those concerts go again...?

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7 minutes ago, RiG said:

That was in the 2021 accounts as well but our future projections were based on commercial parking opportunities and commercial events being realised. How did those concerts go again...?

This time around it's the auditors raising concerns. I think that suggests the auditors would not sign off the accounts without their worries being noted. That's not a good sign, I believe.

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Where the hell do we go from here because, apart from a rich owner buying the club or investing in the club, i have I'm stumped!!

I see on Twitter from the Narey geezer that there are projects such as a battery farm (which he isn't confident will get planning approved) and other projects and one of the replies was that supposedly Roy McGregor's bro was being muted. last

The last thing this club needs is administration or another relegation so hopefully we can pull away from that which then gives us no need to sack the management team which would be a plus.

For a guy that is a natural in silence I really hope Mr Gardiner has ideas and not crap ones like the concerts! 

 

I am deeply concerned now though I know it's part and parcel of football now, I'm fairly certain we aren't the only club in this situation!

 

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Allegedly, 3 directors have submitted resignations but these have not yet been processed as the auditors would not have permitted 'going concern' status without them in situ.

Trade debt has increased by about £250k, outstanding tax liability has increased by £120k and director loans sit at around £800k (which would explain the need to keep them in place).

Anyone remember how much debt we had when the stadium was sold off previously?  With nearly £2million of debt, we must be at about that stage again?

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1 hour ago, hislopsoffsideagain said:

This time around it's the auditors raising concerns. I think that suggests the auditors would not sign off the accounts without their worries being noted. That's not a good sign, I believe.

The club have also (had to?) change auditors 

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I can’t open the file for some reason so just going by the comments to date.

There is a limit to the number of years the same Audit firm can sign off accounts, a safeguard to stop them becoming too close so impartiality remains.

I’d need to read the going concern comment before passing a view, but it sounds like our liabilities exceed the value of our assets and we are dependent on the loans from the Directors.

Now more than ever is the time the CEO and Chairman need to be open with fans, and get us on board with their future plans.

A wealthy investor is unlikely so we need to explore and maximise all opportunities (not concerts!) which includes becoming the community club we say we are but, as we all know, we’ve never really been.

The product on the pitch needs to be good, and hopefully the Supporters Trust Survey will result in the full match day experience being enhanced.

A cup semi final (or even final….) would certainly boost interest and awareness, but that will be a bonus if it happens.

It is also hard to see any real sellable assets in our squad at present. We need someone to be the new Ryan Christie, so hopefully some of our youngsters develop quickly: Nicolson or Cairns maybe?

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2 hours ago, CaleyTennis said:

Where the hell do we go from here because, apart from a rich owner buying the club or investing in the club, i have I'm stumped!!

I see on Twitter from the Narey geezer that there are projects such as a battery farm (which he isn't confident will get planning approved) and other projects and one of the replies was that supposedly Roy McGregor's bro was being muted. last

The last thing this club needs is administration or another relegation so hopefully we can pull away from that which then gives us no need to sack the management team which would be a plus.

For a guy that is a natural in silence I really hope Mr Gardiner has ideas and not crap ones like the concerts! 

 

I am deeply concerned now though I know it's part and parcel of football now, I'm fairly certain we aren't the only club in this situation!

 

"The Narey geezer"...

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Idiots guide to the going concern stuff in the accounts:

- The directors believe the club can survive for at least 12 months from now and have prepared cash flow forecasts that support that view.

- The auditors reviewed those projections and the assumptions within them, and agree that the club can be considered a going concern.

- However, they caveat this by drawing attention to ‘material uncertainty’ on this, because there is doubt as to whether   the club will achieve its projections. This uncertainty could be, for example, because anticipated new income streams might be delayed or not materialise at all, or any of the other assumptions in the forecasts might fall a bit short and that could be sufficient to leave the club without enough money to meet its liabilities. This material uncertainty matter was in last years accounts too.

- The auditors also noted that they understand that the directors will continue to provide financial support to the club when necessary. There is nothing to suggest that there are any binding commitments/guarantees from the directors though, but the directors would have to be very brave or stupid to do so, so that’s hardly a surprise.

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1 hour ago, STFU said:

Not true.

Happy to stand corrected. I based my comment on my own experience, but turns out it only applies to certain PLCs, which clearly excludes ICT:

https://www.icaew.com/groups-and-networks/local-groups-and-societies/london-ds/london-accountant/news-and-opinion/may15-auditor-rotation

Meanwhile the Glasgow tag has picked up on it:

https://www.dailyrecord.co.uk/sport/football/inverness-ct-future-significant-doubt-29338575?1=

Edited by Robert
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One has to take into account that the accounts refer to the 2021/2 season which was only slightly impacted by the Covid pandemic.  Normal income streams therefore returned and one would expect financial figures to be improved from the previous Covid ravaged season.  But they are not.  There is much to be concerned about. 

The accounts show a loss before tax of £835K and net current liabilities (debt) of £1.71M which is up a staggering 70% from the previous year and from the last Covid free year in 2018/9

Whilst the new auditors accept that the Club Directors are right to proceed on a going concern basis given the stated plans for addressing the financial position, they do have "material concerns" about the position.  Yngwie  explains the position very well above.   One also has to question why the club felt it necessary to appoint new auditors.

The report states that the financial projections are reliant on uncertain sources of income and operational cost savings.  The club will presumably not make operational cost savings if it pays more on player wages.  Clearly projections would be altered in the unlikely event of us getting promoted, but assuming we don't, then there seems to be little chance we can offer much to encourage players like Robbie Deas to sign a new contract or to bring experienced and proven players in.

It also states "the company remains reliant on player trading, new funding streams and the continued financial support of its directors, shareholders and supporters".  Just where is the prospect of making decent sums for player trading just now?  Much of our squad will be out of contract at the end of the season and can simply sign for another club with us receiving nothing.

If what STFU says is correct and 3 current Directors have already in effect resigned, then that is extremely worrying unless their departure is linked with the arrival of others who can put in significantly more money than the retiring directors have in the past - and they have put in quite a bit. 

The continued support of shareholders is far from guaranteed when the club is in blatant breach of its Articles of Association having failed to hold an AGM since September 2021.  There has been no AGM since the previous year's accounts were published last February and they, like the 2021/2 accounts just published, were submitted to Companies House on the absolute deadline for submission.

The continued support of supporters is also far from guaranteed when crowds are clearly falling and many season ticket holders are saying that they are unlikely to renew for next season.  If the Club wants to galvanise the fans in support of the Club, then it should be looking to work constructively with the Supporters Trust.  Sadly, it only engages grudgingly and fails to capitalise on what the Trust could do if only supporters could see the Club working constructively with the Trust.

It is unfortunate that the accounts have been submitted to Companies House without any statement on the Club's official website.  This again shows contempt for shareholders and supporters.  Perhaps now that the submission has been made, there will be a statement and a date set for the AGM, but in the meantime, the Club has to understand that their lack of communication, their lateness in filing the accounts, the change in auditor and their failure to hold an AGM in due time, all point to a suspicion that they have something to hide.

The football club doesn't belong to the Directors and the management, it belongs to the shareholders and the fans.  We will still be here long after they have gone.  Despite the Club's long term distancing themselves from the shareholders and supporters, there still remains a lot of goodwill towards the club - but it is palpably disappearing.  If the current Directors and management want to benefit from the goodwill which remains and re-kindle that which it has lost, they need to change their ways and change them soon.  Either that or make way for others who actually understand that the supporters are the heart and soul of the football club.

The accounts for 2021/2 and for previous years, together with other documents can be viewed on the Companies House website.

 

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7 minutes ago, STFU said:

We can't say we weren't warned about Scot Gardiner.

We haven't started losing money since Gardiner arrived. It's been an issue before his time as well. Granted some of the schemes to generate additional revenue outside of football, whilst admirable, have largely fallen completely flat and "core" revenue generation methods (i.e. supporters) have been forgotten about or neglected leading to an utterly desperate situation but he's not the only person to blame here (though I think a lot does fall on his shoulders). Hard to see anything other than part time football for us in the next year or so.

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10 hours ago, Yngwie said:

- However, they caveat this by drawing attention to ‘material uncertainty’ on this, because there is doubt as to whether   the club will achieve its projections. This uncertainty could be, for example, because anticipated new income streams might be delayed or not materialise at all, or any of the other assumptions in the forecasts might fall a bit short and that could be sufficient to leave the club without enough money to meet its liabilities. This material uncertainty matter was in last years accounts too.

 

Who'd have thought sticking with a manager for 2 seasons who has presided over horrific winless runs in a league where our player quality and budget is at a level where everyone acknowledges we should be top 2 or 3 clubs with strong favoritism for promotion.

Before anyone jumps in with this injuries crap, the fact that any business is willing to stand by for 18 months watching its leadership fail not once but twice by repeating the same patterns is alarming.

The standards shown historically across the club have slipped dramatically and now mediocrity is seen as acceptable.

 

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25 minutes ago, RiG said:

We haven't started losing money since Gardiner arrived. It's been an issue before his time as well. Granted some of the schemes to generate additional revenue outside of football, whilst admirable, have largely fallen completely flat and "core" revenue generation methods (i.e. supporters) have been forgotten about or neglected leading to an utterly desperate situation but he's not the only person to blame here (though I think a lot does fall on his shoulders). Hard to see anything other than part time football for us in the next year or so.

We always had an average £250k hole which needed plugged every year, and people who were willing to do so.  But losses now are at levels which we've not seen for a long time and are beyond previously proven sustainable levels.  What's worse is the mounting debt.

However, what we were actually warned about in regards to Scot Gardiner is that he would treat everyone with utter contempt and alienate the fanbase...which is exactly what he has done.  Our current situation is a byproduct of that.

I also disagree with previous comments about there still being some good will left.  After the concert fiasco, there's not many businesses in town who have a good word to say about the club, and as can be seen, not many fans either.

Out of interest, can you tell me which of Scot Gardiner's schemes have not failed?

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Its hard to know where to start having read through the accounts!  Ok we all know that football clubs have a hard time to balance the books, but these seem to go beyond that.

Personally, I do think Scot Gardiner, if in not wholly responsible for this mess, then a good part responsible.

Last years accounts were signed off with the promise of funding coming via the concerts, this was spearheaded by SG and we all know the mess we ended up in thanks to that.  Not only did it not make any money for the club but the damage it did to the reputation of the club with the local businesses will take a long time to heal.

SG was brought in to the club to basically manage the non-football side of the business and although the club were making losses prior to his arrival, was that not the whole point of investing in a CEO to reverse these losses?

Now this years pie in the sky to get the accounts signed off is Red John and a battery farm.  But there does not seem to be any time frames for when or even if these ventures will ever show any income for the football club.

Yesterday when the accounts went into the public domain, it would have been good if the club had issued a statement to explain things, reassure the fans, explain a bit more about all these things that are supposed to be happening to keep the club trading.

The silence from the club is just as worrying than the actual accounts. 

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26 minutes ago, STFU said:

We always had an average £250k hole which needed plugged every year, and people who were willing to do so.  But losses now are at levels which we've not seen for a long time and are beyond previously proven sustainable levels.  What's worse is the mounting debt.

However, what we were actually warned about in regards to Scot Gardiner is that he would treat everyone with utter contempt and alienate the fanbase...which is exactly what he has done.  Our current situation is a byproduct of that.

I also disagree with previous comments about there still being some good will left.  After the concert fiasco, there's not many businesses in town who have a good word to say about the club, and as can be seen, not many fans either.

Out of interest, can you tell me which of Scot Gardiner's schemes have not failed?

These eye watering losses kicked in as soon as we were relegated (Nareystoepoker has a good tweet summarising the most recent losses). Parachute payments, and later COVID grants, softened the blow but it's clear that these losses were mounting up long before Gardiner arrived. That said, a lot of criticism is definitely justified and I don't disagree with your comments about the alienation of the fanbase and the farce that was the stadium gigs. I also agree that local businesses being burnt will haunt us for many a year to come and I believe that's why Grassa has been brought back to try and repair some of the damage. We've had a lot of hot air and very little substance over the last couple of years at least.

As for your final query about what schemes have not failed I cannot think of one that has been a roaring success. The only ones that could maybe be passed off as a win would be small scale bob a jobs around the ground where local businesses maybe spruced up parts of the stadium in return for a free plug on the club website and social media but that is obviously no help to us whatsoever in the grand scheme of things. 

Edited by RiG
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