Accounts are now available for GFC Holdings Group Ltd., which is the overall holding company. Anyone can download these from the Companies House website at a cost of £1.00. GFC Holdings Group Ltd. is 100% owned by Paul Scally, and consolidates the accounts of Gillingham Football Club Ltd (of which PS ownes 75%) and Priestfield Developments Ltd., which I believe is the company that owns the ground, though someone might like to confirm that. It's important to note that these accounts are for the year to 31st May 2011, and so the effect of the deal to re-sell the ground back to the club is not reflected in these accounts. We'll have to wait another 12 months to see that. First let me say I'm not an accountant, and so there might be matters in the accounts of greater importance than I can see at first glance, but overall there isn't anything of great drama to report. The bottom line is that the trading loss was reduced from £597,00 in 2010 to about £82,000 last year. Gross profit was down from £750k to £584k, but there was also a huge reduction in administrative expenses from £1.24m to £592k. The overall debt of the Group is £13.55m. What I can't reconcile at the moment is that a £607k profit is shown on disposal of fixed assets (which includes players), but that the value of players registrations shows disposals of £220k, and I can't see where the other £380k comes from. It may be that the £607k includes additional payments for performances of past players (eg Matt Jarvis). And, for the record, PS received an income of £195,770 (£173,913 in 2010) and Mrs. Scally's remuneration (a source of some debate last year) went down from £20,779 to £13,281. So, all in all, last year wasn't too bad, despite the fact we went into the year with a League 1 squad (and wages) playing in League 2 and didn't have any exceptional income from a Cup or League Cup run. I'll try to answer any requests for more information, but those would be better directed to an accountant after investing your £1.00 in the Companies House website - the government will be pleased to receive your donation!!
Tim - thanks for the update, I was wondering when we would see the accounts for last season. The bit I do not quite understand is the overall debt of the group for that financial year, £13.55m. I cannot remember what it was for the previous year, despite having previously seen the accounts. Just wondered if someone can explain if we are reducing our debt. The reason I ask is because I still have great concerns for this season. Where did all this money come from to bring in the new signings pre season and subsequent signings since. Is it all linked in some way with the transfer of the ground back to the club. I suppose if I am honest what I am really asking is there a hidden investor. I hasten to add this is nothing more than a personal thought. Albeit I have not forgotten about the deal with our new caterers, hence something financially we will not see published for another year.
The debt is an ongoing situation. The main factor that affects it from year to year are increases or decreases in overdrafts or loans (which would have financed the trading loss). In fact the overall debt increased in 2011 to £13.558m from £13.283m in 2010. The balance sheet shows Shareholders Funds at -£1.963m, which effectively means that if the club were wound up on 31st May last year and all assets realised at book value and all creditors paid off, there would be a shortfall of that amount. The largest part of the debt would appear to be the mortgage (or loan) which I presume was taken out to fund the purchase by Priesfield Holdings of the ground. That would appear to be £10.1m. This is set off against a vaulation in the accounts of £10.1m of 'Freehold Property'. This is why the effect of the buy-back of the ground is going to interesting to see in next years accounts, and I think next year it will be worthwhile looking at the individual company Financial Statements. As I mentioned, these are statements at 31st May last year, and the real changes happened after that. There may be other documents that have been registered with Companies House regarding loans, debentures, changes in shareholders etc., (which would be available to view on payment of the relevent fees) but to be honest unless there's a compelling need to find these things out I can't see the point. It would be of interest, but ultimately of no real consequence. If there were a hidden investor then if the details were not registered with Companies House the arrangement would be between the investor and PS on a personal basis, as any direct investment would have to be registered, and the impression I get is that PS is very careful to ensure compliance with UK company law.
Don't think you'd be in trouble for making those comments. As I've said, I've not investigated all the documents (and records from all 3 companies would need to be looked at), and we know there have been some significant changes since 31st May.
