?22.9m net debt - a further ?2.9m will be required during the 2010-11 season to survive

(and f**k the f**k off cricket)

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Today Norwich City Football Club released their accounts for the financial year, which ended on May 31, 2009.

Key points of note:

- Sales revenue was down to ?18.2m (?19.2m 2008) largely due to reduced Football League income
- Loss after taxation increased to ?5m (loss ?2.3m 2008) driven by fall in sales revenue and lower gains on player sales of ?0.9m (?3.5m 2008)
- Net indebtedness increased to ?22.9m (?18.8m 2008)
- Club received cash injection from Directors of a further ?3.1m
- Directors negotiated further securitisation and banking facilities from Axa and Lloyds Banking Group until at least the end of 2009/10 season
- Board confirmed therefore it is not necessary nor its intention to sell any leading players in the current transfer window, furthermore, the Board is attempting to strengthen the squad with the support of its lenders.
- Board has appointed leading financial sport experts Deloitte as advisors. In addition international property consultants King Sturge have been appointed to advise on property matters.
- Although cash forecasts show the Club can operate within existing banking facilities until the end of the current season, a further ?2.9m will be required during the 2010-11 season either through additional funds coming into the Club or further deferment of interest and capital payments to lenders.



?m
2009


?m
2008
Revenue 18.2 19.2
Trading cost of Sales (13.0) (14.2)
Football Expenditure (10.5) (9.6)
Operating Loss (4.1) (1.2)
Interest (1.6) (1.6)
Tax 0.6 0.5
Loss after Tax (5.0) (2.3)
EBITDA* (0.8) 1.9
Net Debt 22.9 18.8

City Chairman Alan Bowkett said: "As we forecasted, trading in 2009 was difficult. I am pleased to say that we are operating within forecast for the current season. Naturally, we have had to undertake substantial restructuring decisions. What is particularly pleasing is the support of AXA, Lloyds Banking Group and our significant shareholders."

"However there remain balance sheet matters which need to be addressed.

"We have full financing facilities until at least the end of the season, time to address our balance sheet issues with top class advisors and we have meritorious business models going forward where we are cash positive both in League One and the Championship, which is of course where we aim to be as soon as possible."

* Earnings before interest, tax, depreciation and amortisation

Posted By: Ralf Scrampton, Jan 7, 16:05:26