Could it be that the money is for works done at the ground, and the SMC own the bits installed on Tigers Ltd's land? For example, if they installed a multi gym, they would own the machines, but not the room it stood in.
Yes, that would be the case but £2,661,235 is an awful lot of equipment. Under "Future developments" they have the following capital expenditure: New LED lighting system for £1.9m - I suppose that is plant and machinery - already paid New pitch at KC - no cost stated - that must be land and property but there's no land and property in the accounts - no mention of being paid 2 brand new pitches at the training ground for £2.5m - I would have thought that would be land and property unless they can be easily taken up and put somewhere else - already paid This still leave the question of whether the above is future developments or actual expenditure. There's no large amounts of prepayments in the accounts.
HCST examination of the accounts: http://hullcitysupporterstrust.com/hull-city-201415-accounts-some-highlights-observations/?
Have I got it wrong, I thought the £11.5M included the cancelling of bad debt provision following the Allams' left hand saying it would give the right hand the money it owed it after all, where last year they didn't give that guarantee? I didn't really think that was something to include in a profit figure for a basic gist as it's more numbers on paper than the club actually turning that profit.
What cancelling of bad debt provision? there wasn't one in the accounts as far as I knew You seemed to take the figure of gross profit before overheads but gross profit has overheads deducted to arrive at net profit before tax
There was something about £6M+ owed by the SMC having a provision made last year, that due to guarantees made this year got fed back in. I'll see if I can find the note I mean when I get home. I may have misread as I've only had chance to skim it so far.
Notes to accounts/6. Exceptional items. The Provision against amounts due due from SMC appears to be a writeoff (loss) last year and a profit this year to reverse it. The reasoning given underneath it suggests it was a bad debt provision they'd made unless there's some other provision type to cover it. I should have said £5M though when I was talking about our real profit.
Normally yes. I didn't realise that hadn't been dealt with in my absence given when I saw it compared to when it was sent, and the lack of anybody saying anything about it on here.
So your calculation is as follows: Turnover £84.1m Gross profit £4.2m Admin expenses -£5.6m =Operating loss -£1.4m Profit on transfers £9.0m Reversal of provision (because of guarantee) £6.3 =£13.9m Interest receivable £0.3m Interest payable -£2.6m =Profit before tax £11.5 TAKE OUT Reversal of provision above -£6.3m Recalculated profit before tax £5.2m I can see where your figure comes from and why you do it because you are thinking the provision and the reversal of the provision distorts the two years profits
