Today the Gills released their accounts up until 31st May 2012. Apparently for 2011-2012 we made a profit of £2,458,796! Also our total recognised gains for the year was £4,408,796 which included Unrealised surplus on revaluation of properties for £1,950,000. Financially we look the best we have done in years and as those accounts were only up to 31st May, it wouldn't include the extra funding we gained from the sale of Gazzaniga and add ons from Jarvis. It may however include the add-ons for Bertrand's 1st Cap for England and him playing more games for Chelsea. Moral of the story though. We are in the money
I don't get any of this accounting, maybe some one would like to try and explain. We might have made a profit 2011/12 but where has the debt gone and please don't tell me player add ons and sales.
Scally and two of the directors founded a new company They have made a loan of around 3 million into the club which has cleared the bank debt. They also returned the stadium to the club. This means our only 'debt' now stands with Scally and the other two directors, it will be at a lower rate (if not 0%) interest and is far safer than a bank loan as unless they suddenly decide they want to walk payments can be at a minimum. What it seems to mean in real terms is the following - Any buyout of the club would be more expensive for a buyer as they would need another 3 million to payout the loan, rather than have the ex owner and two ex directors as the only creditors to the club! That is the only negative.
well from what I can remember, last year we still had an outstanding debt of around £3.5m but we made a profit of around £50,000. This was due to Scally selling the stadium to Priestfield developments and then re-selling it back to the club for a much lower rate. I think the Lindley group also took on the remaining amount of debt themselves when they secured the catering deal with us. That is from my understanding where the debt has managed to clear itself. Concerning the Bertrand deal we originally received £125,000 for him straight away. We would then earn another £100,000 for every ten appearances he made up until 40 appearances. We would also receive another £100,000 bonus for Bertrand if he was to ever be capped by England. Totalling the transfer to £625,000. Like I said thats my take on the accounts so I hope that helps Brb Also Heres the link for the accounts http://www.gillinghamfootballclub.com/news/article/gfc-release-company-accounts-544877.aspx
Several more questions if I may: Where do these forecasts of 3 or 3.5 million debt come from? Are we sure that is or was the total sum of debt? What happens to any subsidiary in the event of anything happening to a UBO/Controlling Parties? Are there any guaranteed liabilities against Gillingham Football Club? Thanks guys.
Well the Balance Sheet shows that we currently owe our Creditors £2,020,309 however this total will fall to £1,800,000 after one year (reasons unknown to me) but the clubs current liabilities are only £800,303. This is due to current assets such as stock, debtors to us and the cash in the bank clearing £1,220,006 of the creditors fees. We made a total loan of £1,800,000 of which £1,701,146 is still currently outstanding. This loan appears to co-inside with what throwoff said about a loan from the directors as there doesn't seem an immediate need to pay it back. According to all of these statistics together the Net Debt section part of the Cash Flow Statement shows we have a total current cash of £377,437 (as of 31/5/12) which was £294,327 at the same point in 2011 however at that time we owed £3,683,424 to the bank overdraft having a net debt of £3,389,097 at 1/6/11. This meant at 01/06/2011 we had a total debt of £3,458,659. As we no longer owe money to the bank through the overdraft as our Cash flow this year was significantly higher, the only money we owe will be to the directors concerning the loan that drops to £1,800,000. So taking that into account, the total amount of cash we currently have in the bank and the amount we have started paying back, our total debt at the moment is £1,422,563. So we do currently have some debt, however we only owe money to our Directors and no outside parties. Hope that clears up some more queries for people
The Gills PegLeg - thanks - any knowledge of, or answers to #7 and my last two questions? ps. I thought I should also add I have seen this write up on our debt as well, I do not normally promote other sites but if it is in the interest and knowledge of Gillingham Football Club and gives more insight to understanding then why not... http://gillsconnect.com/s/Gills_New..._WAVED_HIS_WAND_AND_GILLS_ARE_IN_PROFIT.html?
brb - to answer your last two questions, Im afraid I can't find anything in the accounts to know if anything happened to the UBO/Controlling party. However im sure Mr Scally does have some measures in place if anything did happen. I personally suspect that he may pass on the duties to Mr Quarrington our director with the highest amount of debt owed to by the club from that £1.8million loan. (That is my personal opinion so I can't back that claim up). Our current liabilities work out as £800,303 which is just for the creditors who gave the loan to the club which drops to £1.8million. Them being the members of Three Directors Ltd.
As I see it the overall picture has actually become more complicated. Certainly GFC looks financially more secure thanks to a) the transfer of responsibility for the bank overdraft (which was about £3.5m and I believe not arranged on a formal basis) to Larchpoint Ltd. (director Paul Scally) b) the transfer of the ownership of the ground back to the club, I believe funded by a loan from Three Directors (directors Anderson, Quarrington and Scally) However if you look at the consolidated accounts of GFC Holdings Group Ltd, which is 100% owned by PS and represents the PS intererest of 75% of GFC plus 100% of Priestfield Developments (which previously owned the ground prior to its transfer back to GFC and still has an outstanding loan of £10.85m) you will see that the net debt of that group has been reduced from about £13.5m to about £10.5m, in other words roughly the amount of the overdraft (which has been transferred to a company outside the Group), less restructuring costs which are given as £858,796. However PS now apparently has the responsibility for the old overdraft in a company that is outside GFC Holdings Group. What has Larchpoint has done to finance or amortise that debt? Therefore it seems to me as if the overall financial position remains broadly the same, except that all the financial restructuring means that it is very difficult to establish what the actual trading profit (or loss) of GFC was in 2011/12. On the plus side GFC is in financially better shape than it has been for many years, but one has to wonder what PS is actually trying to achieve. The accumulated debt of the club is now in the name of other companies over which he has significant or overall control (Priestfield Developments, Three Directors and Larchfield), so would he be prepared to let the club go and sustain the losses that his apparently unsecured (the £1.8m loan notwithstanding) other commitments amount to? I'm not suggesting that this is shuffling around the deckchairs on the Titanic, but I'm afraid I really can't get as excited as some people seem to be about the miraculous profit that the club has declared. Accountancy considerations aside I have good confidence in the current directors and management to take the club forward under a stable and affordable programme, but I really can't see the £10m+ debt going away in a hurry, and that needs to be funded, by someone, somehow.
Thank you itstimupnorth, I knew someone would be able to oblige with answers and my silent thoughts in regards to a broad park figure in the range of -10 million quid somewhere in the corporate tree, I think part the problem is supporters reflection is on Gillingham Football Club accounts as published on the O/S, whereas surely to get a complete picture you have to look at all subsidiaries through to the controlling party Let's hope there are clearer indications from the future planned annual meeting.
Absolutely not, would not do that fella. Sorry if it came across like that. If there was ever any dig it would be at source of media or any publicity outlets that can be very influential. My free will beliefs, choose to question and not just look at what people like to tell us. There has been much talk throughout many sources but most appear to overlook the complete picture or at least question for understanding. You have a PM.
Actually I reckon the amount of PS's personal potential financial loss resulting from the financial restructuring of the Gills (GFC Ltd.) is about £12.5m, calculated simply as £9.05m which is the difference between what he paid GFC for the ground, and what he received when he sold it back to the club last year, plus the GFC overdraft for which he has taken responsibility under the arm of Larchpoint. Whilst I don't have to hand the accounts of the time when the ground was sold I presume that the £10.1m that GFC received for the ground went into the GFC bank, so the club has had the benefit of that money, and I also guess that much of it went to settle the costs of the stadium redevelopment. The £9.05m is a loss for PS on the books of Priestfield Developments, and the overdraft appears to be a 'gift' as far as GFC is concerned. Whilst I don't have the accounts of Larchpoint to hand I would guess that that amount is also showing as a book loss. This is money for which GFC (as a company) no longer has any responsibility to repay. So, the GFC accounts now look a great deal healthier than for many a year, which can only be a good thing. I hope that there will be no repercussons relating to Priestfield Developments from the fact that the ground was sold to GFC for £1.05m, and then as near as makes no difference immediately revalued at £3m, as it could be argued that Priesfield Developments undersold the stadium. I want to make it clear that in making my comments on the various accounts I am not seeking to critisise PS in any way. In fact I think he has been very open inasmuch as far as I can judge the companies that are involved in some way or another with GFC and the historic debt are all UK Limited Companies, whose accounts and statutory records are openly available (on payment of a modest fee to Companies House). However I am intrigued to know why the debt has actually remained on the books of various other companies, rather than just either written off or converted into share capital of GFC. Also, just out of interest, it would appear that no interest is payable on the £10.1 loan (now £9.05m) that was taken out by Priestfield Developments to buy the ground. The accounts do state that security has been given to the creditors for that amount. As the ground is no longer an asset of the company I can only presume that the security is personal. So, at this point, I'll just throw a thought into the ether, that one or some of these companies will have an active involvement in any process relating to the development of a new stadium for GFC......
Just out of interest and I honestly do not know, how much do we estimate that the ground is worth for sale as development that Priestfield sits on? Would I be wrong to assume the stadium itself would be worthless as mere bricks and mortar for bulldozing. Finally what is the estimated cost of building a new 18,000 stadium?
