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Review of the Annual Accounts of Wycombe Wanderers Football Club Ltd

Review of the Annual Accounts of Wycombe Wanderers Football Club Limited (Formerly Wycombe Wanderers Football Club plc)

The Report and Financial Statements issued relates to the year ended 30 June 2009, and was signed off by the Directors on the 20th October 2009. In reviewing the accounts the Trust have taken into account the decision made on the 6th July 2009 to alter the structure of the Company, which affected the voting rights and the capitalisation of the Company.

Share Capital and Reserves

As a result of the decision to amend the voting rights by creating a block of £100,000 voting shares and to change the called up share capital of £1,260,900 to non voting shares.

The Shareholders deficit changed from the 30 June position of a deficit of £4,594,851 ( 2008- £3,901,320) to a deficit of just £1,594,851. You will recall that this is something the Trust lobbied for and has achieved.

This deficit is covered by Directors Loans, currently £3,976,097 and the Financial notes explain that these loans are interest free and have no fixed terms for repayment and that they are ranked as unsecured creditors of the company. This is also in line with the agreement we negotiated to ensure the club remained solvent and had the ongoing funding commitment from Mr Hayes.

Chairman’s Report

The chairman’s report highlights the reduction of the annual trading loss from the 2008 loss of £1,665K to the 2009 sum of £ 694k. This dramatic reduction did not indicate any reduction in staff, the administration staff numbers remain constant. The breakdown of Turnover shows that overall the increase was just 2.3%, although this does show an increase of 8% in gate receipts, the reduction in Food and Beverage was down on the remarkable increase of the previous year. Commercial activities failed to grow and the initial success of the team on the field produced broadcasting revenue which covered the deficit from the other revenue streams. From a reading of the accounts it is not possible to establish a trend in the control of expenditure on specific areas of operation, although the Chairman’s report highlights the following: Costs within the Football department were slightly lower than previous despite significant promotional bonuses that were paid following automatic promotion. Administration costs fell by 5% as the focus remained on controlling costs. Staff costs increased by £463,720. This includes Directors remuneration for qualifying services of £49,070. It is assumed that this relates to the departure of the CEO.

The Future

To summarise the trading result for the year was far better than anticipated following the 2008 results. However the reduction was provided by factors which will most likely not repeat to the same extent in 2010. Broadcasting revenue £ 213,134 probably less than £100,000 Disposal of Players £902,102 these are one offs Gate Receipts £27,362, Likely to be less In addition there will be increased cost on the Administration side with the appointment of Mr P Harrison, as well as the anticipated contribution by WWFC Ltd to the proposed New Stadium feasibility study. The removal of Mr Peter Taylor and the appointment of Mr Gary Waddock is another financial cost not applicable in 2009 but we are seeing the benefits currently !

The published results for 2009 do not provide any indication that the company plans to operate in the future within its revenue, and therefore it will continue to require additional funding from its new controlling owner . The drive for a new Stadium had appeared to be the only initiative, but with the arrival of the new CEO and our renewed involvement at Board level we are actively working with the Club Board to see what can be done to enhance income and reduce costs. The club has to move towards being self financing and run at the very least at break-even , we will be working with the FD to see what timescale this can sensibly be achieved within. Within the Notes to the accounts there is a comment on related party transactions which indicate that the Company provided goods and services to London Wasps Holdings Ltd of £677,200. There is no equivalent indication of the cost of the services provided. The financial performance of both WWFC and the Wasps remains weak. The long term uncertainty of continual funding for both Clubs and the intention to finance a new Stadium are questions that share/stakeholders need to receive clearer assurances. These accounts do not provide the answers but give a starting point from which to work.

The Trust will be extremely active in influencing change in activity and reporting – the new era of openness will be good for the club as a whole.

posted in news | 27.11.2009. 10:19

Comments:

#1 Out in the cold 18.01.2010. 12:57

Re 'The Future', will the Trust Board give its assurance to members and to fans in general that it will ONLY give backing and support to any planned stadium relocation provided that it is demonstrable, with no doubt at all, that such a move will be financially beneficial to WWFC? i.e. that WWFC will be certain to generate higher revenues and profit by being in the new stadium than could be achieved at Adams Park.

If WWFC is not able to clearly and unquestionably demonstrate that revenue and profit will be increased by relocating the stadium, will the Trust board give its assurance that the Trust board, including Trust appointed directors of WWFC, will vote against such a move? Also to do whatever is necessary to ensure that WWFC's 'Owner' stands by his previous very public comment that 'A new stadium will only happen if it is clearly beneficial to Wycombe Wanderers'.

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