Hey Delia please open your handbag until the parachute money comes in

05/6 NCFC Finances - forecast of what cash is available
A) Lets assume the capital commitments per note 30 on page 37 of the 2004-2005 Accounts:

Corner infill (aka NU Community) stand ?500k
Internal fit out projects ?830k

and say ?200k of the provision for utility services
re land sale to Taylor Woodrow (per note 20, page 32
of the 2004-2005 Accounts) has to be paid in 2005-2006 and is matched against the net transfer fees
of ?1.65m per note 35 on page 40 of the 2004-2005
Accounts. Resulting in say a ?100k surplus

B) Lets assume that the ?660,848 re Loan notes repayment (mostly used re Jarrold stand & refinancing existing debt) and the ?300,000 re bank loan repayment (the bank loan used to finance the construction of the NU Community stand) can be funded out of one or more of the following :

a) Existing working capital
b) The hotel deal money (?1.1m is due to the club but we dont know the timescale)
c) Up to ?500k from Wigan re Francis
d) ?250k from Wigan if they stay in The Premiership

The ?660,848 and ?300,000 figures come from note 17, page 29 of the 2004-2005 Accounts.

C) So we are left with the following forecast :

Reduction in FA and league income ?19.2m
Say reduction in commercial income ? 0.5m
say reduction in profit from catering ? 0.1m
sub total ?19.8m
----------- ----------

Say 30% reduction in wages & salaries ?5.0m
Say reduction in cash paid re transfer ?4.7m
04/5 profit post interest pre tax
adjusted for depreciation and
G. Watling loan ?8.9m
sub total ?18.6m
----------- ----------

?18.6m - 19.8m (?1.2m)
Outstanding re transfer registrations
per top of page 7 (?1.8m)
Parachute receipt ?6.0m
Surplus from A) above ?0.1m

FORECAST AMOUNT AVAILABLE FOR
TRANSFERS & WAGES ?3.1m
-------------------------------------------- --------

***HOWEVER - the ?3.1m is financed by the
parachute receipt which I believe is not received
until the end of the season!!!
------------------------------------

Posted By: Financebod on October 31st 2005 at 08:29:35

Posted By: Financebod, Oct 31, 13:47:11