Sign in to follow this  
Percy Johnston

Saints Announce 2013-14 Profit

Recommended Posts

SJFC has today published its annual accounts for the financial year ending 31 May 2014. Headlines are as follows:

  • A profit for the year of £258,861 (compared with a loss of £192,767 in 2012-13).
  • £1,526,916 balance carried forward into the year commencing 1 June 2014 - though this figure is effectively reduced by c £122,000, as some hefty upcoming payments to creditors (mainly PAYE and VAT) will be greater than income from debtors.
  • The Chairman's statement explains that around £200,000 is being spent on upgrading floodlighting (for the benefit of TV) and resurfacing the all-weather pitch. There is also reference to (unquantified) general maintenance costs for McDiarmid Park and surrounding grounds - now 25 years old.
  • The Chairman repeats his determination to encourage local children to follow their local team, highlhgting ongoing family pricing policies, and also speaks of his pleasure at the progress of the Youth Academy - "there is no doubt that this is the way forward for the club".

Thoughts?

Share this post


Link to post
Share on other sites

SJFC has today published its annual accounts for the financial year ending 31 May 2014. Headlines are as follows:

  • A profit for the year of £258,861 (compared with a loss of £192,767 in 2012-13).
  • £1,526,916 balance carried forward into the year commencing 1 June 2014 - though this figure is effectively reduced by c £122,000, as some hefty upcoming payments to creditors (mainly PAYE and VAT) will be greater than income from debtors.
  • The Chairman's statement explains that around £200,000 is being spent on upgrading floodlighting (for the benefit of TV) and resurfacing the all-weather pitch. There is also reference to (unquantified) general maintenance costs for McDiarmid Park and surrounding grounds - now 25 years old.
  • The Chairman repeats his determination to encourage local children to follow their local team, highlhgting ongoing family pricing policies, and also speaks of his pleasure at the progress of the Youth Academy - "there is no doubt that this is the way forward for the club".

Thoughts?

 

Haven't read them but based on what you've said, that's a £250k profit which includes any monies gained for winning the Scottish Cup, a decent run in the League cup and a few European games. It's not a lot when you consider that's pretty much as good as it gets.

Share this post


Link to post
Share on other sites

It certainly goes to show something we all knew, that we have over stretched ourselves in previous seasons. Once you cover last years losses alone there is only £66k to cover the costs of the £200k bill Steve talks about, so obviously our "rainy day fund" will be dipped into.

Whilst I don't agree with every decision Steve has made lately, least May's valuation and Tommy Wrights contract situation, I do agree that ultimately infrastructure and youth development should be invested in while we have the opportunity. No one wants to see the club sort seating or lighting, it is a necessary part of being a football club.

Tesco coming in and buying our land while building us a nice new stadium would come in handy about now!

Share this post


Link to post
Share on other sites

I think I am right in thinking that gate, tv and prize money for the Scottish cup is not included there. This will show in accounts for 14-15, and s brown will appear vindicated for his prudence.

Edited by St. Paddy

Share this post


Link to post
Share on other sites

I think I am right in thinking that gate, tv and prize money is not included there. This will show in accounts for 14-15, and s brown will appear vindicated for his prudence.

 

It'll be in this set of accounts...I can't see how they couldn't include that income.

Share this post


Link to post
Share on other sites

It certainly goes to show something we all knew, that we have over stretched ourselves in previous seasons. Once you cover last years losses alone there is only £66k to cover the costs of the £200k bill Steve talks about, so obviously our "rainy day fund" will be dipped into.

Whilst I don't agree with every decision Steve has made lately, least May's valuation and Tommy Wrights contract situation, I do agree that ultimately infrastructure and youth development should be invested in while we have the opportunity. No one wants to see the club sort seating or lighting, it is a necessary part of being a football club.

Tesco coming in and buying our land while building us a nice new stadium would come in handy about now!

 

I agree with this post. I would make the argument though that the first team can't suffer in the interim whilst we are bringing through the young guys. If we end up relegated (which is a long way off, I know) the amount of money we can realistically bring in from tv revenue, league placings, cup runs etc diminish massively. It may only be for one season, but it would seriously affect our finances if that were to happen. If Tommy thinks we're a couple short, we should trust him to bring in a couple of players. It may cost us a bit of money, but it could result in us going up a couple of places in the league. £110k expenditure (going by SB's fag packet maths from his interview a few weeks ago) to bring in £160k extra (£80k per league place) seems like a good risk/reward yield to me.

Share this post


Link to post
Share on other sites

It'll be in this set of accounts...I can't see how they couldn't include that income.

Did SB not say that money wasn't due to arrive until later on in the summer? The accounts go to the 31st of May I think, so I don't think they can include them in these accounts as they haven't yet received it.

Share this post


Link to post
Share on other sites

I'm pretty ertain that you would still need to include it (even though you hadn't physically received the money) as the event happened before the year end. Maybe there's a way of including it in 14/15 but I don't think so.

 

Maybe it says in the notes or something. Percy can maybe clarify?...

Share this post


Link to post
Share on other sites

Did SB not say that money wasn't due to arrive until later on in the summer? The accounts go to the 31st of May I think, so I don't think they can include them in these accounts as they haven't yet received it.

 

I'm pretty ertain that you would still need to include it (even though you hadn't physically received the money) as the event happened before the year end. Maybe there's a way of including it in 14/15 but I don't think so.

 

Maybe it says in the notes or something. Percy can maybe clarify?...

Unfortunately from a transparency point of view, the published accounts don't make it clear where any of the income is sourced from (other than a statement from S Brown which says that c 25% of the club's income comes from 'non-football' sources).

 

On one hand, it would seem unlikely that revenues from the cup final on 17 May would have been calculated and paid over by the 31 May year end. This could account for some of the quite large "debtors" figure shown of £572,135 (i.e. money owing to the club). But on the other hand, the "debtors" figure for 2012-13 was an even larger £684,471.

 

So who knows? Perhaps a shareholder attending the Club's AGM on 29th August could ask about these things and let everyone know?

Share this post


Link to post
Share on other sites

Once the accounts appear on companies house I will download them and do a quick analysis.  Not showing as of today.

 

Any income upto the end of May should be included, regardless of whether it was paid or not.  As Templar noted unpaid payments would appear under debtors.

Share this post


Link to post
Share on other sites

Once the accounts appear on companies house I will download them and do a quick analysis.  Not showing as of today.

 

Any income upto the end of May should be included, regardless of whether it was paid or not.  As Templar noted unpaid payments would appear under debtors.

I am sure SB said ,late May or June that he didn't know what Saints would get for final after SFA deducted their 40% so how can they be in accounts.

Share this post


Link to post
Share on other sites

But he would know the amount when accounts were finalised, and signed off bythe board,  for the year end 31st May 2014 and that income stream would be included.

 

 

I am sure SB said ,late May or June that he didn't know what Saints would get for final after SFA deducted their 40% so how can they be in accounts.

Share this post


Link to post
Share on other sites

I am sure SB said ,late May or June that he didn't know what Saints would get for final after SFA deducted their 40% so how can they be in accounts.

 

The accounts will have been worked on during June and July so, even if he didn't know at the end of May (or June), the club will know by the time the accounts were put together.

Share this post


Link to post
Share on other sites

The accounts will have been worked on during June and July so, even if he didn't know at the end of May (or June), the club will know by the time the accounts were put together.

That sounds fair enough.

Another thing struck me though. Should we be aiming for a profit. Should it not be invested in the infrastructure annually so that the tax man doesn't grab a big chunk of our annual profit.

Share this post


Link to post
Share on other sites

With no league sponsor, poor TV deal and no income from Hibs, Hearts and Rangers fixtures, it is the time for financial prudence. If ever a year to invest in infrastructure and youth rather than signings like Fallon or Iwelumo then this is it. Whilst staying in the Spfl is not a given, there must be less risk of going down this year.

Share this post


Link to post
Share on other sites

That sounds fair enough.

Another thing struck me though. Should we be aiming for a profit. Should it not be invested in the infrastructure annually so that the tax man doesn't grab a big chunk of our annual profit.

Generally, previous years' losses can be offset against current year's profit, reducing tax to nil if they're big enough.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this