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Millers Banter: Unofficial Rotherham United Fans Forum / Message Board → Football / Sport / RUFC Related → Financial Results to 30th June 2015
 

Topic: Financial Results to 30th June 2015

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Millers4Ever
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Financial Results to 30th June 2015
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The point is also made that only 4 months of games occurred during the 6 month period.

So in 6 months we have lost £732,000 v a profit over previous 12 months of £167,000.

"Next years accounts will show a full year's financial results instead of six months".


******** Remember figures are for 6 months and comparatives are over the previous 12 months. :-

Turnover £5,181,477 - down 53%
Gross Profit £635,393 - down 75%
Admin Expenses - £1,367,568 - down 42%
Operating Loss £732,175 from profit last year of £170,706
Net Current Liabilities £976,982 - worse by 152%
Reserves - £1,225,084 - worse by 142%

Match Receipts £1,191,016 - down by 54%
Commercial Revenue £1,473,430 - down 52%
"Other" Receipts £213,929 - down by 87%
Wages and Salaries £2,900,771 - down by 40%

Strikes me that turnover for a full year will be about the same. The fact that we made a profit albeit small in the previous 12 months and we have made a £732k loss in 6 months doesn't perhaps bode well. I wonder what the effect of the 88 players have had on this figure and exactly what Redders has to play with in January. Match receipts and commercial receipts look on par but I wonder if anyone can shine a light on the figure for "Other" receipts?

Who would want to own and run a footy club eh?

IN TS we trust



 



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ian
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Yes , disturbing figures.

Gross turnover is a worry. second season in the championship and 53% down! As you suggest its likely to remain similar over the next period. Indeed, its how it will be and as the Beatles will sing countless times at this time of year "let it be".

It backs up what most of us know (and I personally dislike admitting) that success is much more attractive to some than being at a higher level with better football and higher prestige.

I have to agree too that the high turnover of players, a portion of the financial loss, and Evans departure look far from coincidental.

You are right to suggest that generally this kind of financial operating loss applies to almost every football club most of the time.

So, on balance perhaps this figure isnt very disturbing. The aim could never have been to make a profit as this would be naive in the extreme. We do however need to support the idea that a sustainable loss is ok.

UTM

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mellowmiller
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As far as I can tell these figures are pointless, it's like comparing apples and pears.
Of course all the categories look worse as they are taken from a much shorter period of time.
I doubt if the 6 months' figures include season ticket revenue for example.
Let's wait until we have a proper 12 months comparison before rushing to judgement.


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Millers4Ever
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ian wrote:

Yes , disturbing figures.

Gross turnover is a worry. second season in the championship and 53% down! As you suggest its likely to remain similar over the next period. Indeed, its how it will be and as the Beatles will sing countless times at this time of year "let it be".

It backs up what most of us know (and I personally dislike admitting) that success is much more attractive to some than being at a higher level with better football and higher prestige.

I have to agree too that the high turnover of players, a portion of the financial loss, and Evans departure look far from coincidental.

You are right to suggest that generally this kind of financial operating loss applies to almost every football club most of the time.

So, on balance perhaps this figure isnt very disturbing. The aim could never have been to make a profit as this would be naive in the extreme. We do however need to support the idea that a sustainable loss is ok.

UTM

Ian, I don't think you have may have noticed that these figures are for 6 months and the comparatives cover the previous 12 months?

As mellowmiller implies, it is sort of comparing apples with pears though I don't necessarily agree with him entirely. Perhaps if we gauge the figures on  50% basis we get nearer to the truth.

For me, the areas of concern are :-

Gross Profit

Operating Loss

Net Current Liabilities

The plunge in Reserves

Mellowmiller is correct in so far as we cannot make a proper judgement and all will be revealed when we have a full set of accounts to 30/06/16. But I have always been wary of any business I have been looking at that decides to change its' accounting year end for no logical reason. OK they say it is to tie in with the football season. Really? Since when did a football season finish in June? Perhaps we can stretch to play off finals but we will not be appearing in those year on year so I don't buy that one at all. This sort of accounting practice in my experience is a forerunner to worse than expected results and news. We shall have to wait and see. I suspect but hasten to add, do not know or have any evidence to suggest this, that whatever Evans did or did not do may have been a contributory factor in re aligning the year end. I don't know what others think?

I believe there is enough evidence in the accounts to suggest we may be struggling a little and if we are to end up making a million in losses, is that sustainable without additional investment? Hard for TS to accept another investor I'm sure but it may be the only way we can survive in the Championship. I have said all along that I don't think TS is wealthy enough to bank roll RUFC alone. His only chance is to take a chance and gamble on staying in the Championship by making even more investment into stadium and players - but that is risky. Different if we had G&C site to develop and reap the rewards of but there seems to be no progress on that one. You have to question why the stadium capacity increase was not followed through, it all went quiet on that front - maybe it was because the figures by themselves did not stack up - without additional unwanted risk premium being incurred to the Stewart family. TS of course has taken big risks already. How did he know that we could achieve crowds averaging over 10,000 as we did last season. He didn't but still took the risk of investing in a new stadium etc when we were only League 2 and seeing crowds of 3000 +. TS is a risk taker and has probably been one all his life, building a very successful business. But this is football and I'm only suggesting this as I don't know but perhaps the Championship is a step too far. Get it wrong here and the losses could be huge. Maybe they are much easier to manage in say League 1.

We have had a ball so far, will it continue ?

 

 

  



-- Edited by Millers4Ever on Wednesday 23rd of December 2015 06:31:17 PM

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ian
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I was and still am assuming perhaps.

I expect it will be a big loss-biggest we have had at 'year end' since TS took the reigns. There are some big number potentials in the figures that another 6 months wont make up for. It wont be 500k but I wouldnt be surprised to see 300k.

I do think that TS has changed direction by appointing Redfern and perhaps that side of things is not a gamble as SEs approach was clearly more expensive and did not guarantee results.

You make some interesting punts on the overall direction the club can go in. TS, I agree, must be a risk taker, but how much is that based on Good market conditions both previously and therefore for any future direction. As you say, the G&C site is a potential windfall but it remains idle.

The income seems to have gone down based on attendances and one assumes sales in the shop, hospitality and all major sponsorship deals tied up. Its hard to gage TS assests and his attitude to other investors. There are some other wealthy people around RUFC ...The debt leverage is a concern whichever way it goes as I dont know if we can expect a return to the championship quickly. Then what! crowds dwindle further...

As we all know it comes to do basics: Invest to stop the product decline or let go and sink to a natural level and...what? You hint at this scenario and I would think TS cant contemplate it. Who can in Football? In any case we arent at do or die just yet and there is reason to hope if we can stay up again.








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Exetermiller
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I see it as very selective re the time period, you have to say what's the point? There's always a point to publicly revealing figures, and its a Board of Directors job, where there's scope to publish what they want to be heard.

The message is loud and clear here. The manager and Operations Director were given far too much of a loose leash, and spending was beyond our means. This is exactly what the different direction is, Evans wanted to throw more at it, the Board said you've had it all. The speculation has been right all along - at least with this selective announcement of figures wants us to think that way as that's what they're designed to do.

I think the board have dramatically overstated what potential revenue is in this league just to make ends meet and not be a laughing stock on the pitch, this is backed up by the selling of the stadium name, a total reversal what TS said he would do, hence all the 4 stands having naming rights.

The 2 other jokes include the stadium being called what it is, say what you like but there's no way the popular name was New York over the Foundry. The board thought they could make marketing links and I bet that's gone t!ts up too. The 2nd joke was the car boots, does that even run any more?

I've been saying for months the pot's dry and with the current financial backing I think they know they're powerless to do anything other than cut costs and ghost back into L1 where we can make a living

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ian
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As above. Tend to agree.

Not sure Im ready for the Whiskey and Razors thought just yet.

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Andy Monium
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I quite like poring over financial statements. I've been doing it for years.
If you want to become a millionaire buy a football club.









Providing you are a billionaire in the first instance.

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