Seems to me that they are doing OK Barry.BarrygoestoBolton wrote:I'm not going to speculate on the motivations of Sharon & Nick, but here are a few initial observations on the statutory accounts – some of this may repeat comments by others. Please excuse me if that's the case!
I see they were signed on 28th June, so probably lodged with Companies House on time – as I understand it CH always take a few days to put lodged documents on the site.
Unless I have misunderstood the wording, the audit has not been ‘qualified’ – a good thing!
The loss has come down a lot from the previous year - £1.467m down from £3.850m.
A lot of this is old news as it appeared in the post-balance sheet notes for the 2019/20 accounts.
For example, we already knew that an agreement had been reached with the Eddie Davies Trust to write off £2.75m of debt upon payment of £2.75m and a further £250k on promotion.
As Sluffy has commented, my assertion about the way the Future Fund works was correct – the £5m loan was provided 50% by the FF and 50% by shareholders (note 18). This loan, which was always convertible, was actually converted into shares in October 2021, as was a further £7.5m of loans.
Again, as I suggested, but could not be certain until now, the shares issued in January 2022 were not issued at £1 each, which was their nominal value – I assume the CH document contained an error. I just couldn’t see why the price would have dropped between those October and the following January. It turns out they were issued at a price of £8.485 – the same price as the non-discounted shares issued in October 2021 (the FF and other convertible shares were, as is required under the FF scheme, issued at a 20% discount).
I haven’t had a good look at the creditor situation yet, but I’d note a couple of points. The accounts refer to Loan One (note 18) for £2.5m. There is no mention of interest as the loan sits at the same value as last year. The latest administrator’s report for BWFC2019, note 5, reported a loan of £3,064,213 inclusive of interest, owed to Mr Warburton, secured on freehold land at Lostock adjacent to the training ground. It might be fair to assume that these are one and the same, albeit with the interest missing for whatever reason. The accounts also note that ‘…surplus land at Academy Way, Lostock, Bolton.’ has been sold. Interesting?
Otherwise, although I haven’t done all the sums yet, I’m fairly sure the increase in creditors is simply the shareholder loans and convertible loan note for the FF deal, all of which have now been converted to equity. Obviously, after that, the two big outstanding loans are the Warburton loan and the PBP loan, the latter having Michael James involvement.
A quick look at the creditors falling due after 12 months shows Other Creditors at £9.840m, of which the two loans mentioned above come to £9.688m, so very much the lion’s share. Of the £8.179m Other Borrowings, £7,368,205 was the FF loan and a shareholder loan, both of which were converted into equity, as were the Loan Notes shown at £4,777,362.
I can’t see that there is enough detail to comment on the state of the administration other than in respect of the two large secured loans, but I’ll have a better look through when I’m less busy. One problem is that the administrator’s report for BWFC2019 was issued for year-ended 26th January 2022, so it might be difficult reconciling this with the FVW accounts that run to different dates.
The FF is a match-funded loan so it made total sense to take advantage of it and it makes a huge difference if your main creditors are in essence supporting your efforts. Maybe the next period will shed a little more light on how it's going? - I suspect there have been quite a few developments since then.
And I totally agree with your assessment of the scale of the challenge of promotion to the Championship - but that said, they seem to be giving it a go without going daft on expenditure and encouragingly, they've recruited some young players with potential rather than paying top dollar for the finished product.
There is clearly little sentimentality in their recruitment decision making - they're strictly business from what I can see.