Thetownend.com

According to Sam have been published.

Fall in deficit of around 10 million. STFC Ltd listed as going concern.

Is that good or bad? I have no fucking idea

I'll wait until Pieman dissects it... he makes it understandable for us idiots.

That all sounds good. Presume they'll be available through the website or something?

http://thewashbag.com/2013/11/13/swindon-towns-201213-accounts-cause-for-concern/

The going concern doesn't sound good but as others have said we need Pieman's feedback before we can be sure.

The reduction in the deficit is clearly a good thing.  Andrew Black's parting gift.  He dropped a few balls during his tenure but, on this point, he deserves our thanks.  A lot.

Of more concern is the going concern qualification the auditors have given to the financial statements.  In the real world, this would be a major cause for concern.  (If the company you worked for issued a set of financial including a statement like this, you would probably start looking for a new job.)  But this is STFC and the murky world of football finance.  It could mean something, or nothing.  I think we should let Si expand.

The Washbag also has a quick fire reaction piece on this.

For those too lazy to click the link sent by Sam

Edit: They've asked we not copy and paste their content, which is fair enough, so removed content and link added for the inconvenience of the impossibly lazy. Bazza. x

http://thewashbag.com/2013/11/13/swindon-towns-201213-accounts-cause-for-concern/

Wonder if this is why he was shovelled out the door somewhat unceremoniously this week? Shortfall in the projected targets maybe?

They only go to May 31st don't they? Didn't mean a direct link between publication of the accounts and his departure per se, more just musing out loud really :)

:no:
Don't think so. That would only have given him three months to hit those goals as accounts only go to May 31. Running costs down since then.

Power on a Power trip?

So...Murrall goes, worst result ever in the FA Cup, Ranger goes awol....and a set of accounts calling into question the continued viability of the club....time for the panic button....nah just another week  :beers:

FUCK ME!

It's not a concern in the context that you take it.

Does anyone know anything about this Steve Anderson that Power has brought on board?

Also after the Notts County game I heard a story about us owing a load of money to Adidas, someone's mentioned it to Sam on Twitter today so wondering has anyone else heard anything about it?

Anderson worked with Power at his company Cre8 according to Sam Morshead

I heard the Adidas rumour too, no stock coming in until they were paid apparently.

Apparently Mccrory didnt know this new bloke was coming in??

Isn't the biggest concern the massive fall in the amount of cash the club has. Which could tally with them finding it difficult to pay suppliers.

Lummy.

Maybe true, but maybe not.  A balance sheet is a snapshot (in this case, taken at the close of business on May 31st 2013).  Without knowing what the material cashflows were during that period, it's very difficult to know whether the club is/was struggling to meet its commitments.  Entirely possible that there were material cash inflows in the days that followed the balance sheet date.  We don't know.

The fact it uses the word 'concern' does concern me. If it said we're a going unconcern the I would sweep it under the carpet. :)

Everyone will have differing opinions of the old regime, but had they not written off that £10million or so I guess that £4 million deficit would look a lot, lot worse...as The Washbag says those accounts are up to 31st May 2013, and we know the wage bill has been slashed in half, so it'd be good to know or get comments from the board in relation to how we're getting on now. Won't be pressing the panic button, I'm off to The Winchester...

I've always understood "going concern" to mean a company that has the necessary means to carry on operating for the foreseeable future. In other words it hasn't gone bust. It would be more of a worry if STFC wasn't a going concern.

 :hmmm: if we've got cashflow problems then Wonga might help us out like Newcastle.

Cre8 presumably isn't the Swindon based media studio?

Spot on.

As in "indicate the existence of a material uncertainty which may cast significant doubt abut the companies ability to continue as a going concern"

That on the face of it sounds worrying. But I speak for a position of ignorance. It may be we have since secured sufficient funds or reduced costs to supersede this. Plus it may be standard jargen which is legal arse covering by the auditor. Si Pie where for art thou.

Lummy, indeed!  That would explain why Black wasn't willing to hang on until the end of the season. 

The accounts end not long after the board took over, so they wont have had much effect on them. Next years accounts will be a better indicator.

You have to remember that the balance sheet extract is showing the clubs assets, liabilities and capital at a given point of time I.e. The year end. The p&l represents activity over the financial year. The cash holding is irrelevant, the biggest figures to note are the large drop in creditors and the reduction in the accumulated loss, as well as the share capital increase. Overall, it's a vast improvement compared to the previous year.

I won't be able to access the abbreviated accounts until tomorrow but it's unlikely they will tell us much.

Worth pointing out that the 'Emphasis of Matter' statement by the auditors refers to the Going Concern Note (note 1) of the accounts. I'd guess that this probably says something along the lines of the company being reliant on the continued support of the shareholders/directors to ensure the company can continue to trade whilst the business is in transition and cost control measures are implemented etc. It may reference the loss of an investor and the directors seeking new investment (which iirc would fit in with the timeline of events).

Had the previous sets of accounts been audited (from the Fitton/Black era) there would be an emphasis of matter statement. So we have accounts which are unqualified by the accountants but they have modified their opinion with an emphasis of matter statement. In more simple terms, the auditors are happy that the accounts present a true and fair view and adhere to the requirements, but they wish to draw attention to the fact that technically the company cannot fund itself. Hardly groundbreaking stuff.

There are certain things which still don't stack up in my mind (not to do with the accounts) which have certainly resurfaced this week.

What doesn't stack up for you Si?

So it seems that Power is the owner after all? that's my opinion on how it looks, was that Fredi person right all along?

With Jed not knowing about this new guy and the fact he's part of the failed company cre8, it seems a bit fishy right?

A p&l extract would be more interesting to me. I would like to see things minus all the shareholder changes etc

Sangita Shah is the first thing. Board member? Not according to anything official. Why the need for an audit? Forensic accounting was taking place around the time Lee Power surfaced.

Murrall resigns at the time the audit is signed off.

All could to point to a recently completed deal, the audit was probably a necessary part of the deal. I doubt the full accounts will ever be circulated as these would have that as a post-balance sheet event.

I wondered what the point of Sangitha Shah was tbh. Seemed a waste of time having her. Could have been just to make up numbers whilst the club was being sold off to Power.

This is the stuff....time to batten down the hatches, don the the tin hat and break out the sandbags?

https://www.youtube.com/watch?v=eHR3OPBMvOM

Now officially appointed as of yesterday.

Maybe they forgot to appoint her previously

What is interesting... That the new board want this 'audit'. Very keen to over explain and go on about this audit. Also making sure that there is a commentary so us farmer folk can understand it. I'd say, again, an attempt to over explain and possibly justify certain decision making.  If I am not mistaken the old board / owners gave STFC a clean slate pretty much so why is this required? You can bandy about sentences like 'we haven't had an audit since 1784 so we want to see exactly what is going on' all you like. It's clear what is going and what has been going on, and it must have been clear with due diligence before agreeing to buy the club. By all means conduct an audit for yourselves. If something is relevant to us fans then let us know. But this transparency is almost going too far. I'm looking forward to seeing Steve Anderson's creative approach to accounting brings to the party. As Jed has stated 'not a lot of clubs do an audit'. Then why should we? I find is STAGGERING that someone with a past like Lee Power would want an audit. And why not just publish the full audit and let us ask questions instead of telling us what to think? And will this audit have information on the growing number of people owed money by STFC? Will they provide a commentary on that? I am not an accountant, but there are quite a few savvy STFC fans that will have their say on this.

Because they want a set of audited accounts, most likely.


Is it? Would it? Jed admitted the timescales to purchase the club were extremely restrictive which didn't allow thorough due dilligence.


In what way? Surely transparency must be welcomed. I really can't understand why there should be any concern about accounts being audited. You can't hide anything in an audit - quite the opposite actually.


Because it's the only true way that you know the accounts given are true and independently verified. Other clubs don't do it because they're not obliged to under law and because the cost is often prohibitive.


Why? Perhaps having a few prior businesses go up the swanny has made him a bit wary about future business transactions and he's being ultra cautious about what he's committing his money to.


Because it's the auditors job to highlight any inconsistencies and discrepancies. Are you qualified as an auditor?


Probably not, but it would most likely highlight any creditors that haven't been accounted for in previous accounts.

I'm not trying to defend Lee Power at all. I have absolutely no clue as to what his agenda is and why he's involved with out football club. I understand people being suspicious because of our chequered history, but really, questioning the ethics of having an audit done just seems rather... odd.

Your last line Sam is the important one.
You have no idea of his agenda...untill he explains it forums and the such will be filled with people who want to know whats going on.
A man pulling the strings of a football club dosn't have to be popular...but at least be transparant and inform the people who support the club a small idea of what is going on.

Were people so vociferous when Andrew Black and Sir Martyn Arbib were extremely quiet about their involvement with the club?

Black spent a long time in the shadows before he actually spoke in public.

#POWEROUT

Power dosn't have to speak in public....do as Black did and appoint someone like Jeremy Wray to do the talking for you.
Jed talks a good game and has done well i reckon...but you get the feeling he is beginning to feel like the rest of us and saying....any chance of letting me know what your plans are Mr Power.

Qué  :hmmm:

Thanks to Samdy for breaking up the original wall of text into a format that's easier to digest. I'd have missed this little gem otherwise.

Difficult to see black in the shadows.

Keeping with the spokesman theme and more particularly the Iraqi connection of Andrew Black's last Chairman, Sir William Patey, here would be a good spokesman were he still living:

http://www.youtube.com/watch?v=yfAeMtcURg0&feature=player_embedded

Get the audit done a year after Power and Anderson have had time to get fruity with the excel spreadsheet and I'll supply the a4 paper and ink refills for it faster than you can say 'dodgy abacus'.

So fiddle the accounts and then get auditors, people trained and qualified to examine, analyse and question every single little minutiae, to prove they've not done anything dodgy. Riiiiiiiiiiiiiiight.

It just seems when people want transparancy and get it they are still not happy.

My point being I'd see the audit as more relevant if it actually showed something for a decent period of time with the new brigade in charge. I'd be surprised if Jed and LP are still here in a year.

A lot of people said Jed et al would be gone by the start of this sesason but they haven't.

Not I. Most of the original lot have left though. But, I will call at least one of them will be gone before the end of this one. If they are still here I'll stand corrected but I can't see it happening.

That's a fair shout.

IMO the accounts will look far better after the takeover, eg. Lower wages, investments (training pitch - if it happens)

(http://25.media.tumblr.com/tumblr_lq4xodNj961qb49yqo1_400.gif)

Seriously? There's being healthily sceptical and then there's just finding excuses to try and hate the new board. I'm not saying they're utterly squeaky clean and are the best we've ever had, but frankly I've yet to see anything that says they're not that's actually believable or not fro  a disgruntled ex-employee with a grudge. Far as I see it, they're doing well for the club in the difficult situation they've come into.

People keep going on about Power running the club and not knowing what his plans are but as far as anyone knows Jed is majority shareholder so how is Power running the show surely it is Jed running the show with Power having a minority shareholidng (if any ?)

Well yes.

I'd still like to know how a new finance guy was installed seemingly without Jed's knowledge.

Exactly, said that at the time, it implies that Jed isn't the owner/major shareholder at all. And it may be that Power isn't either, but if not then he seems to be acting as if he is (or for whoever is)

Is the new finance guy a director? I suppose we'll find out in 2 month's time if so

So,  Lee Power is 'The Puppet master'? Does he have a white cat? I hope he does. And a secret island. Can't be truly evil witho a white cat and secret island.

Do say anything bad about him.  He has a tank full of sharks in the depth of his volcano waiting for you.

*With frikin lasers on their heads.

Just coz...

http://www.youtube.com/watch?v=xnKhsTXoKCI

Back to transparency then...