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[Archived] Rovers Accounts 2009/10

AndyNeil

By AndyNeil
in Football Messageboard Archive

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Balwer Uefa Europa League

Balwer

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I will add my thanks, very grateful to be able to look at the numbers. Hughesy makes a good point, that was one of the first things I noticed too. One other thing I will note is the repayment of the parent undertaking loan note. Essentially that was the inter-company loan (interest-free) given to us by the Walker Trust over the past few years in small installments. In 2009 the balance was 5m however the club repaid 1m of this during the season. For reference we only paid 875k of bank debt back during the season and the overall debt balance actually increased. For a club that trades very close to the wind in terms of both profit and cash this is not an insignificant number. If this were a business my company lent to we would probably be a little concerned at what is effectively a dividend payment at a time when the club is unable to reduce it's debt burden.

Of course the Walkers were looking to actively sell, and wanted to recoup as much of that amount as they could (new owners wouldn't inherit parent company loans) so I can understand why they did it. Bit sneaky in my opinion though.

Anyway will let Philip or someone else do a full assessment if they choose to do.

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philipl World Cup

philipl

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I will add my thanks, very grateful to be able to look at the numbers. Hughesy makes a good point, that was one of the first things I noticed too. One other thing I will note is the repayment of the parent undertaking loan note. Essentially that was the inter-company loan (interest-free) given to us by the Walker Trust over the past few years in small installments. In 2009 the balance was 5m however the club repaid 1m of this during the season. For reference we only paid 875k of bank debt back during the season and the overall debt balance actually increased. For a club that trades very close to the wind in terms of both profit and cash this is not an insignificant number. If this were a business my company lent to we would probably be a little concerned at what is effectively a dividend payment at a time when the club is unable to reduce it's debt burden.

Of course the Walkers were looking to actively sell, and wanted to recoup as much of that amount as they could (new owners wouldn't inherit parent company loans) so I can understand why they did it. Bit sneaky in my opinion though.

Anyway will let Philip or someone else do a full assessment if they choose to do.

Hello Balwer,

I think you will find it wasn't repaid. Under the nominal terms of the loan, some of the debt was repayable within twelve months so the £5m appears split in two places- short and long term.

The same goes for bank debt- if you add the bank loan and the overdraft together, it comes to the £16.1m of cebt which the Venky's took on and transferred from Rovers to Venky's London Limited. That then opens the question of the security for the debt as it was secured against all the assets of Rovers.

If that security is still there, Rovers as a company are still vulnerable.

When I get the chance I will do an analysis.

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Balwer Uefa Europa League

Balwer

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Hello Balwer,

I think you will find it wasn't repaid. Under the nominal terms of the loan, some of the debt was repayable within twelve months so the £5m appears split in two places- short and long term.

The same goes for bank debt- if you add the bank loan and the overdraft together, it comes to the £16.1m of cebt which the Venky's took on and transferred from Rovers to Venky's London Limited. That then opens the question of the security for the debt as it was secured against all the assets of Rovers.

If that security is still there, Rovers as a company are still vulnerable.

When I get the chance I will do an analysis.

In the cashflow statement on page 23, in the financing section, the total outflow for 2010 is 1.839m. 875k to repayment of bank loan, and 1m outflow to movement in loan from parent company (the 2009 figure for this entry was an inflow of 3m).

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philipl World Cup

philipl

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In the cashflow statement on page 23, in the financing section, the total outflow for 2010 is 1.839m. 875k to repayment of bank loan, and 1m outflow to movement in loan from parent company (the 2009 figure for this entry was an inflow of 3m).

Yes you are correct- I should have looked at the numbers in detail rather than a quick glance a while ago.

I have spotted where I went wrong- the debt owing to the Trust is still £5m. What I hadn't spotted was that the debt to the Trust had in fact increased to £6m last year and that £1m increase had been paid off this year. I had always had the number in my mind as flat lining at £5m.

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Rover9 Premier League

Rover9

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Thanks FernhurstRover an interesting read as ever, some positive's in there with the wage to turnover being reduced but that has been spiking up and down over the past couple of years and shows the importance of league placement and TV appearance to a club such as ours.

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Hughesy World Cup

Hughesy

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also a lot of player payments are staggered in instalments so some may have been from the previous year and some may come out/in this year.

Hopefully the venkys personal wealth may help our deals - especially if they offer the full amount on completion, unlike these staggered payments

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