2004 - 2005 NCFC Accounts - a reminder

NCFC ACCOUNTS - AN OVERVIEW.

2004 - 2005 - Use of funds
---------------------------------- ?m

Generated by the club during the season
(profit and loss) 6.1

Add back depreciation charged to the
profit and loss but is not a cash movement 1.2

Add back provision charged to the profit
and loss but is not a cash movement 0.5

Writing off of Geoffrey Watlings loan 1.5

Squeezing working capital 2.5

Increase in Bank loans etc. 2.5

Total - Funds in 14.3

Cash paid re player registrations
(Intangible Fixed Assets) 4.7

Tangible Fixed Assets 6.9

Writing off of Geoffrey Watling's loan 1.5

Redemption of B Preference shares 0.5

Increase in cash balances 0.7

Total - Funds out 14.3
----------------------

2004 - 2005 Transfers - player regisrations (Intangible Fixed Assets)
------------------------------------------------------ ?k.
Additions per note 12 of the
2004-2005 Annual Report 5726
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Charlton 250
Ward 250
Jonson 700
Safri 500
Helveg Free
Doherty 750
Galacher Free
Ashton 2500
Sub total 4950
Add ons 776
Total 5726
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Of the ?5.7m, ?4.7m cash had been paid by 31st May 2005. That leaves ?1m outstanding related to the above. Most of that ?1m should relate to Ashton as 50% of his basic ?2.5m would have been paid on the day of his transfer and the remaining 50%, i.e., ?1.25m paid during the following twelve months. Some of the second ?1.25m would have been paid by the 31st May 2005.

Given that on page 7 of the 2004-2005 Annual Report, the club refers to '?1.8m remained outstanding at the year end' then presumably there is another ?800k of adds that is payable after the 31st May 2005. The ?1.8m should be in the Creditors (falling due within one year) on page 29 - probably part of the ?3.2m trade creditors figure.

2004 - 2005 So what did NCFC spend ?6.9m on Tangible Fixed Assets ?

?k
Jarrold stand - 3rd floor fillout 1300
NU Community (Corner infill) stand 2800
FITC - new facilities 260
New press facilities 100
Colney 140
Carrow Rd. pitch (900 - 250 prior year) 650
Plant and machinery 519
Motor vehicle 10
No detail in the Accounts 1093
Total 6872
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The debt position as at 31st May 2005

If you put receipts in advance (such as season tickets, corporate box money the business club money etc,), ?6.6m, to one side as it will usually exist the following year so long as we keep renewing our tickets etc. with the deferred grant income
(this is cash that has been received and is gradually written into the Profit and Loss Account over a period of time), ?2.1m., then the debt position can be analysed as below:

Currents Assets ?11,047k
Current Liabilities (?8,918k) ?2,129k

Hotel money (announced post 31st May 2005) ?1,100k

Net Liabilities 2006/7 (?2,598k)

Net Liabilities 2007/8 - 2009/10 (?6,735k)

Net Liabilities Beyond 2009/10 (?10,408k)

Total (excluding receipts in advance) (?16,512k)

( ) = debt

In addition to the ?16.5m, the club has an obligation to pay an estimated ?0.5m over the next four years regarding work associated with the sale of land to
Taylor Woodrow Plc. (note 20 pg 32 of the 2004 -2005 Annual Report) ?0.5m has been charged to the 2004-2005 Profit and Loss Account but the cash has not yet been paid.

The club has also capital commitments (note 30 pg 37 of the 2004 - 2005 Annual Report) of ?0.5m re the Corner infill stand (aka NU Community stand) and ?0.83m re 'Internal fit-out projects'.

Furthermore if the club gets promoted to the Premiership, ?1.2m of B Preference Shares
may be redeemed by their holders.

Debt structure

a) Re Jarrold Stand
On one tranche the interest rate is 7.67% and on the other tranche its 7.24%

Capital repayments
05/6 ?661k
06/7 ?714k
07/8 - 09/10 ?2463k (average ?821k pa.)
Beyond 09/10 ?10271k

b) Finance related to Laurence & Scott land purchase
Interest rate : LIBOR + 2%

Capital repayments:
?695k (due by Dec 2006) and ?2,537k (due by Dec 2008) = ?3,232k

c) Finance related to the Corner infill stand (aka NU Community stand)
Interest rate : LIBOR + 2%

Capital repayments:
Tranche A: ?1,200k (when taken out)
Payable : 05/06 ?300k
06/07 ?300k
07/08 ?300k
08/09 ?150k

Tranche B: ?1,100k (due by Dec 2008)


Don’t forget the value of the spare land !
While the above debt looks large, the club owns land that’s in the books, I think at ?4m (ex Laurence & Scott land), they also bought land off the City Council for ?0.9m and they have the remainder of the land acquired by Chase which is not being used for flat development. So that’s probably ?6m worth in total. This doen't include the ground itself or Colney.

Posted By: Financebod, Oct 29, 08:55:29