The 2010 Accounts - a review

[qprdad]

I have now reviewed the 2010 accounts, which were published earlier today, and have summarised them in the same way as I did last year:

QPR Football & Athletic Club Limited (Club) is a wholly owned subsidiary of QPR Holdings Plc (Holdings).

Holdings published accounts, which include both Holdings and Club – I therefore only summarise Holdings, which includes Club as follows: all values are £000 i.e. £8,600,000 (8.6 million is written as £8,600)

Turnover - £14,380 (2009 - £14,822)
Cost of Sales - £24,256 (2009 - £25,633)
Administration costs - £5,998 (2009 - £6,563)
Player registrations - £2,307 Profit (i.e. income, not a cost) (2009 - £218 Profit)
Interest received - £0 (2009 - £63)
Interest paid - £131 (2009 - £1,731)
Corporation Tax paid - £0
Overall loss for the year £13,698 (2009 - £18,824)

On the balance sheet, all the assets are:

Player Registrations - £3,902 (2009 - £6,693)
Land and Buildings - £20,720 (2009 – 21,250)
Plant & Machinery - £253 (2009 - £229)
Fixtures & Fittings - £39 (2009 - £15

Stock - £316 (2009 - £269)
Trade debtors - £2,867 (2009 - £866) … this is money owed to the club
VAT - £0 (2009 – £16)
Other debtors - £341 (2009 - £231)
Prepayments - £548 (2009 - £78)
Cash in bank £944 (2009 - £217)

TOTAL of ASSETS £29,930 (2009 - £14,530)

On the balance sheet, all the liabilities are:

Loans - £275 (2009 - £500)*
Overdraft - £4,790 (2009 - £3,295)
Trade creditors - £3,461 (2009 - £4,358) …money the club owes
Tax - £2,212 (2009 - £1,466) (tax on players / staff wages and VAT)
Accruals and deferred income - £3,969 (2009 - £4,911) (mostly season tickets paid for in advance i.e. the club owes the value of the games not played)
Other creditors - £18,600 (2009 - £nil)* This is a loan from Sarita Capital of £8,600 and £10,000 from Amulya Property.

Both the Sarita and Amulya loans are interest free and repayable on demand. The loan from Amulya has a fixed charge over the Freehold of LR stadium as well as an option to acquire LR in settlement of the loan.
The overdraft is also secured on LR stadium.

TOTAL of LIABILITIES due in less than one year - £33,307 – (2009 - £14,530)

Add to this loans due after one year - £10,980 (2009 - £21,103)*
Trade creditors - £110 (2009 - £0)

TOTAL LIABILITIES - £44,397 (2009 - £35,633)

*Loans etc in the accounts include the following:

£8,600 – Sarita Capital Investments
£10,000 – Amulya Property Limited
£9,906 – Sarita Capital Investments
£2,247 – Sea Dream Limited
£1,435 – Bernie Ecclestone personally
£346 – Football league
£2,000 – A Calliendo personally

Bernie was appointed as a director on 17th February 2011, GP, Bruno Michel, Marco Rapini and Comical Ali all resigned as directors on 16th February 2011

During the year, the company made payments of £40k to Moorbound Limited which is controlled by GP. GP owes the company £215k in loans to him from the company.

The company issued new shares for £5,000m to the existing shareholders.

Please feel free to ask me any questions if you are not sure about anything.

[Tarbie]

Bloody hell..........that is not good reading!

Better make sure we get promoted!!!!!

[qblockpete]

less of a loss than last year?

Does it say if Mittals still earn what kind of steak (pun)

[Tarbie]

less of a loss than last year?

Does it say if Mittals still earn what kind of steak (pun)

Think ur missing the point a bit Pete. The real worry is that the clubs liabilities heavily outweigh the assets.......i.e. we are insolvent.

More worrying than that, debts that need to be repaid in the next 12 months are also greater than the clubs worth. As such we require a major injection of cash just to keep the club out of administration.

[qprdad]

less of a loss than last year?

Does it say if Mittals still earn what kind of steak (pun)

Yep, less of a loss than last year, but still doing a lot of dough!

I don't know what %ages the orange donut has; how many shares that Amit / Family has, or how many shares BE has acquired.

I looked into the shareholding last year, and large chunks of shares are owned by Companies, whom are registered all over the world, so quite difficult to track down who holds what %ages.

[G.T.P]

Think ur missing the point a bit Pete. The real worry is that the clubs liabilities heavily outweigh the assets.......i.e. we are insolvent.

More worrying than that, debts that need to be repaid in the next 12 months are also greater than the clubs worth. As such we require a major injection of cash just to keep the club out of administration.

now where can i get them 'think positive and be positive' c.d's casual80 recommended to me?

[Tarbie]

now where can i get them 'think positive and be positive' c.d's casual80 recommended to me?

Not being a doom monger mate, just stating a fact having reviewed the accounts. If we don't go up or get investment from somewhere I don't see any outcome other than administration in the next 12 months.

[vblockranger]

Both the Sarita and Amulya loans are interest free and repayable on demand. The loan from Amulya has a fixed charge over the Freehold of LR stadium as well as an option to acquire LR in settlement of the loan.
The overdraft is also secured on LR stadium.

worrying bit...

[moon_safari]

2 things to take into account.
Premier lg have said will make it nearly impossible for a team to go into admin while in prem.
And from 2012 Prattinis rule of only spending your income comes into affect.
When we get into the prem will have to try and follow blackpools blueprint and profit will be made.
And if we were to go down straight away 14 m loss turns into a 2 m prof with a 16 m parachute payment.

[Tarbie]

2 things to take into account.
Premier lg have said will make it nearly impossible for a team to go into admin while in prem.
And from 2012 Prattinis rule of only spending your income comes into affect.
When we get into the prem will have to try and follow blackpools blueprint and profit will be made.
And if we were to go down straight away 14 m loss turns into a 2 m prof with a 16 m parachute payment.

Good points well made, as I said.............better make sure we get promoted!!!!

[Magic]

Looks like we'd better get promoted then..

[qprjames]

2 things to take into account.
Premier lg have said will make it nearly impossible for a team to go into admin while in prem.
And from 2012 Prattinis rule of only spending your income comes into affect.
When we get into the prem will have to try and follow blackpools blueprint and profit will be made.
And if we were to go down straight away 14 m loss turns into a 2 m prof with a 16 m parachute payment.

Thats only if you want to be in Europe. Also it doesn't stop owners 'giving' the money to the club. Wont really change anything for us.

[G.T.P]

Not being a doom monger mate, just stating a fact having reviewed the accounts. If we don't go up or get investment from somewhere I don't see any outcome other than administration in the next 12 months.

i know your not mate. i said all this a few weeks back, and that promotion this season is so vital otherwise we could go into administration, and i got called up and told off by a happy clapper today.


check here

http://www.wearetherangersboys.com/forum/showthread.php?t=91072&page=4

[QPRbob]

Both the Sarita and Amulya loans are interest free and repayable on demand. The loan from Amulya has a fixed charge over the Freehold of LR stadium as well as an option to acquire LR in settlement of the loan.
The overdraft is also secured on LR stadium.

worrying bit...

That's why the Orange One, Inch High and the Mittals are in it for, IMHO

[PedalR]

Yeah but don't the balance sheets of 90% of clubs look equally or more horrific than ours? I don't know much about finance but I do know it's a waste of time trying to apply normal or sensible business principles to football.
In my simple world we currently have some reasonably benign owners propping us up and we're on the verge of prem' £millions.... can't actually think of any club I'd swap our situation with tomorrow.