The board have received and approved the audited accounts and are pleased to publish financial results for the year ending 31 May 2017.
The results for the year show a loss of £354k. The turnover at £4m and costs, other than player wages remains almost static from that experienced in the 2016 accounts.
The losses require to be funded and the company received advances of £785k from its main shareholder FPS, making an aggregate of £1,277k. It is the intention for these advances to be turned to share capital. The board intend to issue additional shares to a value of £1.5m and this will make FPS the holder of 75% of the equity. FPS have also indicated they will transfer their shares to Dark Blue Properties Limited. This is the company which is undertaking the development of the new stadium. Dark Blue Properties is owned jointly by John Nelms and Tim Keyes.
The company expect to make additional losses in the current year and in each of the subsequent years until a new TV deal generates more money for all the clubs in the SPFL. The size of these losses will depend on field success and the level of support from fans. The club can currently bank on a core home support of around 3,500 and increase of 1,000 is a target that would put the Club essentially into a breakeven position.
The club believe they underperformed in 2016/17 season, failing to make the top 6.
The change in managers in 2017, has brought a change in the style of play. This necessarily meant the changing of playing personnel and this brings with it costs of an enlarged playing squad. It is hoped the size of the first team squad can be reduced next season. The directors believe continuity in the management of the club is the route to success.
On a more positive note the club are reaping benefits from its academy. The development squad is now providing a supply of players to the first team, something which has not been available to us for a number of years. The results of the development squad have been good and the quality of the other academy teams continues to improve.
The club has also been unlucky with a number of players suffering serious injury ruling them out of action for prolonged periods. This position is one over which. We have no control but the number and severity of the injuries brings with it costs both in treatments but as importantly in additional wages for replacement players.
The club have the commitment of its major shareholder that funding is available to us until we moved to new stadium and beyond and they provide a vital lifeline to ensure a viable and successful football club.
For Abbreviated Account 2017 – click here
