Madejski Sold out and failed again

[multisync1830]

credit safe report sorry it's munged

THE READING FOOTBALL CLUB LIMITED - 00053703
Following

Rating
57
1-100
B
A/E
Credit Limit
£60,000 Contract Limit
£5,350,000 Status
Active DBT
5 Industry DBT
20 Payment Trend
Summary Directors/Shareholders Financials Event History Group Structure Media Solutions
Profit & Loss Balance Sheet Capital & Reserves Other Financial Items Cash Flow Miscellaneous Ratios
Profit & Loss
Date Of Accounts 30/06/13 (%) 30/06/12 (%) 30/06/11 (%) 30/06/10 (%) 30/06/09
Weeks 52 (%) 52 (%) 52 (%) 52 (%) 52
Currency GBP (%) GBP (%) GBP (%) GBP (%) GBP
Consolidated A/cs N (%) N (%) N (%) N (%) N
Turnover £59,265,980 301.7% £14,753,324 -14.3% £17,209,653 -37.8% £27,665,455 7.6% £25,716,994
Export - - - - - - - - -
Cost of Sales - - - - - - - - -
Gross Profit - - - - - - - - -
Wages & Salaries £46,171,340 73.9% £26,551,113 45.4% £18,265,995 0.8% £18,124,214 -29% £25,517,404
Directors Emoluments £517,350 341.5% £117,167 - - - - - -
Operating Profit -£2,899,044 86.7% -£21,827,099 -104.4% -£10,676,089 -540% -£1,668,123 86.2% -£12,119,034
Depreciation £1,878,450 8.7% £1,728,007 -2.8% £1,778,432 -2.3% £1,819,386 -0.9% £1,835,634
Audit Fees £24,750 20.7% £20,500 - £20,500 - £20,500 -37.9% £33,000
Interest Payments £589,087 355.7% £129,258 0.6% £128,482 -74.6% £505,306 22.4% £412,670
Pre Tax Profit -£2,338,832 80% -£11,718,912 -133.2% -£5,026,156 -369.3% £1,866,077 -50.2% £3,744,062
Taxation - - - - - - - - -
Profit After Tax -£2,338,832 80% -£11,718,912 -133.2% -£5,026,156 -369.3% £1,866,077 -50.2% £3,744,062
Dividends Payable - - - - - - - - -
Retained Profit -£2,338,832 80% -£11,718,912 -133.2% -£5,026,156 -369.3% £1,866,077 -50.2% £3,744,062
Balance Sheet
Date Of Accounts 30/06/13 (%) 30/06/12 (%) 30/06/11 (%) 30/06/10 (%) 30/06/09
Tangible Assets £31,739,858 5.1% £30,188,409 -0.7% £30,397,748 -8.5% £33,223,338 -1.6% £33,766,524
Intangible Assets £8,454,688 189.8% £2,917,905 -9.5% £3,225,175 -2.5% £3,307,861 -40.4% £5,548,996
Total Fixed Assets £40,194,546 21.4% £33,106,314 -1.5% £33,622,923 -8% £36,531,199 -7.1% £39,315,520
Stock £144,086 17.1% £123,042 -45.8% £227,119 -21.5% £289,363 -12.1% £329,092
Trade Debtors £1,312,598 -32.8% £1,952,515 2% £1,914,149 -49.9% £3,819,660 -66.3% £11,328,024
Cash £722,690 -88.6% £6,312,972 602.3% £898,847 -66.5% £2,679,869 999.9% £3,625
Other Debtors £1,282,913 48.5% £863,878 -4.3% £902,886 11.5% £809,585 -7.4% £874,456
Miscellaneous Current Assets 0 - 0 - 0 - 0 - 0
Total Current Assets £3,462,287 -62.6% £9,252,407 134.7% £3,943,001 -48.1% £7,598,477 -39.4% £12,535,197
Trade Creditors £1,996,739 19.4% £1,671,744 -9.5% £1,848,084 24.1% £1,488,794 -28.8% £2,091,984
Bank Loans & Overdrafts £4,501,194 999.9% £26,934 -71.8% £95,349 - £95,349 -98.5% £6,263,162
Other Short Term Finance £5,181,057 -43.4% £9,150,336 -12.6% £10,474,915 -4.9% £11,019,285 -7.9% £11,958,195
Miscellaneous Current Liabilities £14,413,469 13.7% £12,676,224 64.5% £7,708,147 3.3% £7,459,542 -25% £9,943,984
Total Current Liabilities £26,092,459 10.9% £23,525,238 16.9% £20,126,495 0.3% £20,062,970 -33.7% £30,257,325
Bank Loans & Overdrafts and LTL £45,288,641 13.9% £39,744,658 48.9% £26,700,107 -5.7% £28,301,228 -16.4% £33,861,804
Other Long Term Finance £40,256,531 1.4% £39,717,724 167.4% £14,856,005 -7.4% £16,039,158 6.8% £15,013,952
Total Long Term Liabilities £40,787,447 2.7% £39,717,724 49.3% £26,604,758 -5.7% £28,205,879 2.2% £27,598,642
.
Capital & Reserves
Date Of Accounts 30/06/13 (%) 30/06/12 (%) 30/06/11 (%) 30/06/10 (%) 30/06/09
Called Up Share Capital £750,000 - £750,000 - £750,000 - £750,000 - £750,000
P & L Account Reserve -£30,498,073 -8.3% -£28,159,241 -71.3% -£16,440,329 -44% -£11,414,173 14.1% -£13,280,250
Revaluation Reserve - - - - - - - - -
Sundry Reserves £6,525,000 - £6,525,000 - £6,525,000 - £6,525,000 - £6,525,000
Shareholder Funds -£23,223,073 -11.2% -£20,884,241 -127.9% -£9,165,329 -121.4% -£4,139,173 31.1% -£6,005,250
Other Financial Items
Date Of Accounts 30/06/13 (%) 30/06/12 (%) 30/06/11 (%) 30/06/10 (%) 30/06/09
Net Worth -£31,677,761 -33.1% -£23,802,146 -92.1% -£12,390,504 -66.4% -£7,447,034 35.5% -£11,554,246
Working Capital -£22,630,172 -58.6% -£14,272,831 11.8% -£16,183,494 -29.8% -£12,464,493 29.7% -£17,722,128
Total Assets £43,656,833 3.1% £42,358,721 12.8% £37,565,924 -14.9% £44,129,676 -14.9% £51,850,717
Total Liabilities £66,879,906 5.8% £63,242,962 35.3% £46,731,253 -3.2% £48,268,849 -16.6% £57,855,967
Net Assets -£23,223,073 -11.2% -£20,884,241 -127.9% -£9,165,329 -121.4% -£4,139,173 31.1% -£6,005,250
Cash Flow
Date Of Accounts 30/06/13 (%) 30/06/12 (%) 30/06/11 (%) 30/06/10 (%) 30/06/09
Net Cashflow from Operations £2,819,080 125.9% -£10,888,415 - - - - - -
Net Cashflow before Financing -£6,815,432 -5.3% -£6,469,466 - - - - - -
Net Cashflow from Financing -£1,526,045 -112.8% £11,883,591 - - - - - -
Increase in Cash -£8,341,477 -254.1% £5,414,125 - - - - - -
Miscellaneous
Date Of Accounts 30/06/13 (%) 30/06/12 (%) 30/06/11 (%) 30/06/10 (%) 30/06/09
Contingent Liability YES - YES - YES - YES - YES
Capital Employed £17,564,374 -6.7% £18,833,483 8% £17,439,429 -27.5% £24,066,706 11.5% £21,593,392
Number of Employees 428 16.6% 367 -7.1% 395 - 395 3.1% 383
Auditors MYERS CLARK
Auditor Comments The audit report contains no adverse comments
Bankers BARCLAYS BANK PLC
Bank Branch Code 20-71-03
Ratios
Date Of Accounts 30/06/13 30/06/12 30/06/11 30/06/10 30/06/09
Pre-tax profit margin % -3.95 -79.43 -29.21 6.75 14.56
Current ratio 0.13 0.39 0.20 0.38 0.41
Sales/Net Working Capital -2.62 -1.03 -1.06 -2.22 -1.45
Gearing % -195 -190.30 -291.30 -683.70 -563.90
Equity in % -66 -53 -26.70 -10.10 -13
Creditor Days 12.26 41.24 39.08 19.58 29.61
Debtor Days 8.06 48.17 40.48 50.25 160.33
Liquidity/Acid Test 0.12 0.38 0.18 0.36 0.40
Return On Capital Employed % -13.31 -62.22 -28.82 7.75 17.33
Return On Total Assets Employed % -5.35 -27.66 -13.37 4.22 7.22
Current Debt Ratio -1.12 -1.12 -2.19 -4.84 -5.03
Total Debt Ratio -2.87 -3.02 -5.09 -11.66 -9.63
Stock Turnover Ratio % 0.24 0.83 1.31 1.04 1.27
Return on Net Assets Employed % 10.07 56.11 54.83 -45.08 -62.34


Key financials

Year to date 30/06/2013
Turnover £59,265,980
Pre Tax Profit -£2,338,832
Shareholder funds -£23,223,073
Employees 428
Year to date 30/06/2012 30/06/2011
Turnover £14,753,324 £17,209,653
Pre Tax Profit -£11,718,912 -£5,026,156
Shareholder funds -£20,884,241 -£9,165,329
Employees 367 395
Mortgage Details
Mortgage Type:
Date Charge Created: 16/08/13
Date Charge Registered: 22/08/13
Date Charge Satisfied: -
Status: OUTSTANDING
Person(s) Entitled: VIBRAC CORPORATION;
Amount Secured:
Details: CONTAINS FIXED CHARGE.CONTAINS FLOATINGCHARGE.FLOATING CHARGE COVERS ALL THE PROPERTY OR UNDERTAKING OF THE COMPANY.NOTIFICATION OF ADDITION TO OR AMENDMENT OF CHARGE.

[Uke]

IIRC Bolton are >£120m in debt.

£-167,954,288

Quite a plummet since 2009

http://companycheck.co.uk/company/00043 ... financials

[Uke]

This graph shows the Anton effect on RFC

http://companycheck.co.uk/company/00053 ... financials

[kwik-silva]

credit safe report sorry it's munged

I don't understand anything I just read.

[MmmMonsterMunch]

This graph shows the Anton effect on RFC

http://companycheck.co.uk/company/00053 ... financials

So that ties in with us borrowing against the parachute money then.....

I wonder if the net worth calculation includes parachute money we are yet to receive? I can't really tell from that. If it does, then it would appear we are indeed pretty fcuked.

[winchester_royal]

This graph shows the Anton effect on RFC

http://companycheck.co.uk/company/00053 ... financials

So that ties in with us borrowing against the parachute money then.....

I wonder if the net worth calculation includes parachute money we are yet to receive? I can't really tell from that. If it does, then it would appear we are indeed pretty fcuked.

It doesn't. If it was to be included anywhere it would be in the 'asset' coloumn, and it clearly isn't included in there as it only shows around £3m.

[winchester_royal]

Interesting how we've only valued our assets (players) at 3.5m. Oddly conservative, when you consider we valued our 2009 squad at over £12m.

[MmmMonsterMunch]

This graph shows the Anton effect on RFC

http://companycheck.co.uk/company/00053 ... financials

So that ties in with us borrowing against the parachute money then.....

I wonder if the net worth calculation includes parachute money we are yet to receive? I can't really tell from that. If it does, then it would appear we are indeed pretty fcuked.

It doesn't. If it was to be included anywhere it would be in the 'asset' coloumn, and it clearly isn't included in there as it only shows around £3m.

To be quite honest, there was no need for the club to go down the Vibrac route unless Anton wanted some quick cash. It doesn't make for good reading!

If the Vibrac loan is secured on the stadium that would certainly tie up with some of the mortgage type rumours on here? Pure speculation on my part though obviously.

[MmmMonsterMunch]

Interesting how we've only valued our assets (players) at 3.5m. Oddly conservative, when you consider we valued our 2009 squad at over £12m.

Current assets less cash is actually less than that: £2.7m

Not sure the players would even be shown as current assets from an accounting point of view anyway. I suspect the remaining £2.7m is actually debtors.

[winchester_royal]

Vibrac loans are secured against future parachute money. Presumably we needed to go down that route because we didn't have the cash to cover the necessary summer spending and therefore brought the cash flow forward (no doubt at a fair premium), personally I don't see the issue with it, and it's not that easy for Anton to take money out the club without it being included in the accounts so personally I think that's just scaremongering. We're in the position we are because we accumulated a massive wage bill to facilit8 AZ's glamour signings and just don't have the income stream to match, hence the debt. Don't think there's anything more sinister in it than that.

Don't forget we were making 6/7m pound losses a season in the championship before AZ came along on a far tighter budget than we're on now. No surprise to see that we're struggling to make the figures add up.

[winchester_royal]

Interesting how we've only valued our assets (players) at 3.5m. Oddly conservative, when you consider we valued our 2009 squad at over £12m.

Current assets less cash is actually less than that: £2.7m

Not sure the players would even be shown as current assets from an accounting point of view anyway. I suspect the remaining £2.7m is actually debtors.

Yes you're right:

The cost of players’ registrations, including agents’ fees, is capitalised
and amortised over the period of the respective players’ contracts in
accordance with Financial Reporting Standard 10 ‘Accounting for goodwill
and intangible assets’. The transfer fee levy refund received during the
year is credited against additions to intangible assets.
When a playing contract is extended, any costs associated with securing
the extensions are added to the unamortised balance (at the date of
the amendment) and the revised book value is amortised over the
remaining revised contract period.

[MmmMonsterMunch]

Vibrac loans are secured against future parachute money. Presumably we needed to go down that route because we didn't have the cash to cover the necessary summer spending and therefore brought the cash flow forward (no doubt at a fair premium), personally I don't see the issue with it, and it's not that easy for Anton to take money out the club without it being included in the accounts so personally I think that's just scaremongering. We're in the position we are because we accumulated a massive wage bill to facilit8 AZ's glamour signings and just don't have the income stream to match, hence the debt. Don't think there's anything more sinister in it than that.

Don't forget we were making 6/7m pound losses a season in the championship before AZ came along on a far tighter budget than we're on now. No surprise to see that we're struggling to make the figures add up.

Hmmm..necessary summer spending? Didn't amount to much did it?!

[winchester_royal]

Vibrac loans are secured against future parachute money. Presumably we needed to go down that route because we didn't have the cash to cover the necessary summer spending and therefore brought the cash flow forward (no doubt at a fair premium), personally I don't see the issue with it, and it's not that easy for Anton to take money out the club without it being included in the accounts so personally I think that's just scaremongering. We're in the position we are because we accumulated a massive wage bill to facilit8 AZ's glamour signings and just don't have the income stream to match, hence the debt. Don't think there's anything more sinister in it than that.

Don't forget we were making 6/7m pound losses a season in the championship before AZ came along on a far tighter budget than we're on now. No surprise to see that we're struggling to make the figures add up.

Hmmm..necessary summer spending? Didn't amount to much did it?!

Now now, the signing of Drenthe was massive moment for this club. Announced us to the world stage as a future footballing power, building on our already growing reputation thanks to our fruitful partnership with Marussia.

[loyalroyaldaz]

It doesnt show there because those accounts are upto the end of June last year.
The Mortgage that was taken out last August as i was told was for the outstanding parachute payments amounting to £36M.
The creditcheck site shows it as a Mortgage and not a loan so make of that what you will.
Does anybody honestly think we wouldnt have spent a penny on January transfers, Baird, Sharp etc if we had that £36M sitting in the bank?!
So you ask "where is it"?

You decide

[winchester_royal]

Nowhere does it say that we took out £36m. We knew that we'd borrowed against the first set of parachute payments, and for obvious reasons. We don't have anything close to the revenue stream to pay our enormous wage bill. Do you seriously think that Anton could pay himself a £36m dividend without anyone noticing? Do you genuinely believe we'd have been able to keep the club running without that money?

Of course it's not 'sat in the bank', it's been used to cover a massive operating loss.

[MmmMonsterMunch]

It doesnt show there because those accounts are upto the end of June last year.
The Mortgage that was taken out last August as i was told was for the outstanding parachute payments amounting to £36M.
The creditcheck site shows it as a Mortgage and not a loan so make of that what you will.
Does anybody honestly think we wouldnt have spent a penny on January transfers, Baird, Sharp etc if we had that £36M sitting in the bank?!
So you ask "where is it"?

You decide

There isn't anything to decide. That chart clearly points to a massive long term loan being taken out. The net worth has nosedived whilst the liquidity of the club remains relatively stable (CA-CL), ergo a long term liability has been taken out.

Edit - Sorry not making myself clear there. Not sure we'd take out a huge loan to cover the normal operating losses TBH Winch.

[loyalroyaldaz]

Of course we could of. Parachute payment was £48M over four years so maybe we had £12m of it at the beggining pf last season?

Multisync seems clued up on this stuff what is his view?

I know mine and you believe i am talking shit but can offer no explanation as to what this mortgage is !

[winchester_royal]

It doesnt show there because those accounts are upto the end of June last year.
The Mortgage that was taken out last August as i was told was for the outstanding parachute payments amounting to £36M.
The creditcheck site shows it as a Mortgage and not a loan so make of that what you will.
Does anybody honestly think we wouldnt have spent a penny on January transfers, Baird, Sharp etc if we had that £36M sitting in the bank?!
So you ask "where is it"?

You decide

There isn't anything to decide. That chart clearly points to a massive long term loan being taken out. The net worth has nosedived whilst the liquidity of the club remains relatively stable (CA-CL), ergo a long term liability has been taken out.

Edit - Sorry not making myself clear there. Not sure we'd take out a huge loan to cover the normal operating losses TBH Winch.

We made a £3m loss last season, and that was with c. 30m in TV revenue. We had to cover that 'hole' somehow.

Could be talking complete nonsense of course, and there's no evidence as to the size of the loan we took out, but I'm not sure how else they'd have covered it.

[winchester_royal]

Of course we could of. Parachute payment was £48M over four years so maybe we had £12m of it at the beggining pf last season?

Multisync seems clued up on this stuff what is his view?

I know mine and you believe i am talking shit but can offer no explanation as to what this mortgage is !

It's impossible to explain anything without the full accounts. All that credit check says is that we have some mortgage with Vibrac, it doesn't specify the amount thus offering no evidence to support your claim of a £36m bunk off.

Also, given that parachute payments are paid at the end of each season, it hardly seems likely that we had £12m sitting in the bank at the start of the season, especially when the accounts at the end of July show only £700k cash.

[MmmMonsterMunch]

From a business as usual point of view it just wwouldn't make sense though. They would just build up the accumulated losses as most other clubs do.

Much as it pains me to say it it does whiff of someone trying to get hold of quick cash. I desperately hope I am wrong!