http://www.truststfc.co.uk/news_item.php?id=1111The Swindon Town FC accounts for the 2005-06 season have finally been completed and once again show a familiar story of massive debts and ongoing losses.
The headline loss for the year was £732,485, down from £1.3million the previous year, but this figure was only achievable as a result of £600,000 of additional income from the sales of Sam Parkin to Ipswich and Rory Fallon to Swansea. Without the profit from player sales, the headline loss would have been almost identical to the previous year.
Costs were trimmed from the previous year with administrative expenses down from £1.4 million to £1.25 million, while cost of sales fell from £3.4 million to £2.9 million. This was offset by a fall in turnover from £3.5million to just under £3.2million as the team were relegated to the bottom division.
Interest payments continued to rise to £381,059 or around 12% of the turnover for the period. In other words, for every £8 of income, £1 was required just to pay interest on the clubs mountain of debt.
Regarding the CVA, the accounts state :
"In August 2002 the company entered into a five year Company Voluntary Arrangement (CVA). A final payment of £900,000 payable by June 2007 has not been made, and as a consequence the CVA did not successfully complete in August 2007."
It goes on to say :
"The company is currently in the process of being acquired by new investors. Once the sale is completed the new investors will provide sufficient funding to pay the final CVA instalment. However, should the completion of sale not take place, the company will seek approval from its CVA creditors to delay the CVA completion for sufficient time to keep the company trading and to secure alternative funding."
