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Post by alwaysnextyear on Feb 18, 2017 12:53:22 GMT
As I have said on many occasions, the biggest problem over many years at WCFC has been the complete lack of financial transparency. Successive Board's actions towards its shareholders have been nothing short of disgraceful, and they have repeatedly failed in their Director's duties. The lack of AGM's serve only to attract suspicion, and serve to prevent any financial scrutiny and question asking of the Club's accounts as should be the right of shareholders at AGM's.
The only times shareholders have got to know anything about the club's finances are when EGM's have been called and the Boards positions have been challenged, and the Board in order to try and preserve its status, present some cobbled together amalgamation of bare financial details for the previous few years. The EGM's of 2008 and 2016 are cases in point.
The Club's accounts filed at Companies House used to be the full set at least until 1986, ie the full income and expenditure details were included. Since the club began to lose money hand over fist, the various Boards have chosen to submit an abbreviated version ( as is their choice if they want to ) , ie basically just the balance sheet and any share movements. Without AGM's being held, shareholders are kept in the dark as to income and expenditure ( the interesting parts ), which itemise how any profit or loss has been arrived at. AGM's should always be held as soon as possible after year end ( after the accounts have been audited and signed off ) , so that the accounts are relevant to recent events. When eventually anything has been presented at EGM's such as in 2008 and 2016, how can anyone ask questions about the finances of 4 or 5 years previous, when they do not have the full income and expenditure statements to look at, plus remembering what events took place in which financial year ?
This is what promotes suspicion. what is there to hide ?
Having examined the balance sheet movements lodged at Companies House, from 1990 to 2015, the club ( with the exception of 4 seasons ) has made a loss every year, which make the current Board's plea for financial prudency laughable, I hasten to add. Basically the Club lost ever increasing amounts from 1990 onwards, against a bank overdraft secured against St George's Lane. This got increasingly worse until the bank called the debts in, leading to the sale of SGL.
The key years in our recent financial history are those since 2006 ie the pre and post sale of SGL years when not surprisingly, AGM's were not held ! The abbreviated balance sheets enable any annual profit or loss to be calculated based on the movement in the cumulative profit and loss figure for the prior year. They make interesting reading, and one would love to see the full accounts and transactions since 2011 relating to the sale of SGL, the final year leaving SGL in 2013, and those that relate to the actual receipts of the cash in re the sale.
The cobbled together finances presented at the 2016 AGM, gave limited information and were cleverly presented. For example, the Income and expenditure summary sheet stated a " TRADING " profit/ loss amount. This amount is vastly different to the actual amount in the balance sheet.
31.05.13 - The last season at SGL - the " TRADING " loss was stated at 43,175, the balance sheet movement was a loss of 188,942.
31.05.14 - First season at Aggborough - the " TRADING " loss was stated at 26,085, the balance sheet movement was a loss of 705,651
31.05.15 - the Coventry season - the " TRADING " profit was stated at 2,184, the balance sheet movement was a profit of 27,392
The balance sheet movement is the key figure as that reflects what the club is worth.
According to the accounts as at 31.05.15, the club was worth £ 652,076 of which £ 155,005 was shareholders funds. This is important to remember as if the club was to wind down, this 155 k should be responsibly given back to the shareholders, thus it needs to be ignored for day to day running. This leaves 497k.
The Boards's summary presented at the EGM estimated a loss for 31.05.16 of £ 120, 407. This would then leave 377k prior to this season. The accounts for 2016 are due to be filed at Companies House by the end of this month, so is it just coincidence that despite years of financial ineptitude, the Board are now panicking ? I await those accounts with eager anticipation.
With the recent flurry of Boardroom statements ( albeit totally lacking in numbers ) about our only just realised financial crisis, it begs the question how much are we losing in 2017 from the 377 k ? What's left after this season ?
Rather than the Board issuing bland " no choice left " statements encouraging " working together ", perhaps they ought to explain to shareholders how and why they've let this situation develop ?
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Post by creaner on Feb 18, 2017 13:28:08 GMT
“When they forced Khruschev out, he sat down and wrote two letters to his successor. He said – ‘When you get yourself into a situation you can’t get out of, open the first letter, and you’ll be safe. When you get yourself into another situation you can’t get out of, open the second letter.’ Well, soon enough, this guy found himself in a tight place, so he opened the first letter. Which said – ‘Blame everything on me.’ So he blames the old man, it worked like a charm. He got himself into a second situation he couldn’t get out of, he opened the second letter. It said – ‘Sit down, and write two letters.'”
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Post by Brooksiders Return!! on Feb 18, 2017 14:33:29 GMT
As I have said on many occasions, the biggest problem over many years at WCFC has been the complete lack of financial transparency. Successive Board's actions towards its shareholders have been nothing short of disgraceful, and they have repeatedly failed in their Director's duties. The lack of AGM's serve only to attract suspicion, and serve to prevent any financial scrutiny and question asking of the Club's accounts as should be the right of shareholders at AGM's. The only times shareholders have got to know anything about the club's finances are when EGM's have been called and the Boards positions have been challenged, and the Board in order to try and preserve its status, present some cobbled together amalgamation of bare financial details for the previous few years. The EGM's of 2008 and 2016 are cases in point. The Club's accounts filed at Companies House used to be the full set at least until 1986, ie the full income and expenditure details were included. Since the club began to lose money hand over fist, the various Boards have chosen to submit an abbreviated version ( as is their choice if they want to ) , ie basically just the balance sheet and any share movements. Without AGM's being held, shareholders are kept in the dark as to income and expenditure ( the interesting parts ), which itemise how any profit or loss has been arrived at. AGM's should always be held as soon as possible after year end ( after the accounts have been audited and signed off ) , so that the accounts are relevant to recent events. When eventually anything has been presented at EGM's such as in 2008 and 2016, how can anyone ask questions about the finances of 4 or 5 years previous, when they do not have the full income and expenditure statements to look at, plus remembering what events took place in which financial year ? This is what promotes suspicion. what is there to hide ? Having examined the balance sheet movements lodged at Companies House, from 1990 to 2015, the club ( with the exception of 4 seasons ) has made a loss every year, which make the current Board's plea for financial prudency laughable, I hasten to add. Basically the Club lost ever increasing amounts from 1990 onwards, against a bank overdraft secured against St George's Lane. This got increasingly worse until the bank called the debts in, leading to the sale of SGL. The key years in our recent financial history are those since 2006 ie the pre and post sale of SGL years when not surprisingly, AGM's were not held ! The abbreviated balance sheets enable any annual profit or loss to be calculated based on the movement in the cumulative profit and loss figure for the prior year. They make interesting reading, and one would love to see the full accounts and transactions since 2011 relating to the sale of SGL, the final year leaving SGL in 2013, and those that relate to the actual receipts of the cash in re the sale. The cobbled together finances presented at the 2016 AGM, gave limited information and were cleverly presented. For example, the Income and expenditure summary sheet stated a " TRADING " profit/ loss amount. This amount is vastly different to the actual amount in the balance sheet. 31.05.13 - The last season at SGL - the " TRADING " loss was stated at 43,175, the balance sheet movement was a loss of 188,942. 31.05.14 - First season at Aggborough - the " TRADING " loss was stated at 26,085, the balance sheet movement was a loss of 705,651 31.05.15 - the Coventry season - the " TRADING " profit was stated at 2,184, the balance sheet movement was a profit of 27,392 The balance sheet movement is the key figure as that reflects what the club is worth. According to the accounts as at 31.05.15, the club was worth £ 652,076 of which £ 155,005 was shareholders funds. This is important to remember as if the club was to wind down, this 155 k should be responsibly given back to the shareholders, thus it needs to be ignored for day to day running. This leaves 497k. The Boards's summary presented at the EGM estimated a loss for 31.05.16 of £ 120, 407. This would then leave 377k prior to this season. The accounts for 2016 are due to be filed at Companies House by the end of this month, so is it just coincidence that despite years of financial ineptitude, the Board are now panicking ? I await those accounts with eager anticipation. With the recent flurry of Boardroom statements ( albeit totally lacking in numbers ) about our only just realised financial crisis, it begs the question how much are we losing in 2017 from the 377 k ? What's left after this season ? Rather than the Board issuing bland " no choice left " statements encouraging " working together ", perhaps they ought to explain to shareholders how and why they've let this situation develop ? Such a sensible and pragmatic post, I presented these figures at a Trust open meeting, and was rounded upon for presenting inaccurate figures. The 2014 figure is so large due to the payment to SMD of around 600,000, so the underlying trend in balance sheet movement is around £100,000 loss per annum. The P&L from previous accounts shows that however hard the club tries to increase income from playing matters, there's an overiding increase in cost of sale which offsets increased income. Its very clear from the numbers that the business can only survive if there is an influx of income from off the pitch matters, non-football matters. however, playing in exile has made this much more difficult. I have sympathy for the Board in this predicament. But saying that, one has to question what efforts have been done to overcome these issues? When we were at Aggborough, we had access (at a cost) to facilities that could and should have been used for fundraising, and not just fundraising by the same 500 fans, but putting on events that could attract people from around Kidderminster who might have had no interest in football. We used to hold golf days, obviously not at SGL, and gentlemens evenings, again not at SGL. What has happened to these events? The situation is, that the Board are able to forecast losses at least a year in advance, and if they are aware that they are likely to lose a further £100,000+ next season, then they will need to start the season with at least £280,000 cash and shareholders funds, or they are in a position where they know that they will be trading insolvently. If they are aware that there will be a loss of say£120,000 this season, this leaves about £250,000 left. Whether we accept it or not, the reality is that WCFC Ltd. is a business, it is a limited company with has to comply to normal business trading laws. A football club is a complex business, with this additional stakeholder group called supporters in the mix, which makes it very difficult to run as a limited company. In other businesses, these supporters are known as customers, and normal business rules dictate that a business should maximise the return on their customer base, i.e. the customer is the cash cow. Tesco don't give you a clubcard so you save money, they give it you so you the customer provide masses of data for their business, for them to make business decisions, so they can optimise customer spend, and at the same time retain customer loyalty, even though most customers know that they are still getting subtly ripped off every time they shop! Could a football club do the same? Unlikely, as in the case of a football club, the customer, the fan, has an emotional interest in the business. Its a strange dynamic, and its a reason why the Limited company model doesn't work for football clubs, unless there is a generous benefactor in the background. The Chairman is right when he says that share investment should be the way to generate income into the club, but our constitution does not allow for this, its not an appealing proposition for investors, and every business needs investors. Thats why the Supporters Trust, together with Supporters Direct have worked to develop the Community Benefit Society model, which changes the role of supporter from customer to member, and the emotional attachment becomes an investment opportunity. CBS models can attract investment from outside sources, from businesses who wish to make ethical investment in community projects as well as supporters who wish to make a more altruistic investment. Some clubs have woken up to this business model, unfortunately the Worcester City board have not. The Supporters Trust, together with like minded shareholders, have tried very hard, in as many ways as we can, to encourage the Board to consider this business model, but ultimately, we have had to stand aside and allow the Board to continue with their business model unfettered. It is obviously disappointing to see this present financial situation being played out, especially as it was predicted, and fully expected. |
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Post by alwaysnextyear on Feb 25, 2017 18:35:43 GMT
I see that the latest accounts for 31.05.16 were filed with Companies House yesterday, and are awaiting processing- takes 5 days. I can't wait to see how bad it all is.
I'm sure that Hampson is sorting out an AGM to explain his stewardship of the Club's finances to shareholders as I write ! Presumably that can also be the moment when he explains to shareholders his sudden conversion to a CBS believer.
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rob
Reserve Teamer
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Post by rob on Feb 27, 2017 22:58:03 GMT
There is a history of the club accounts here....just type 'Worcester City football' in the search to get accounts and shareholdings etc from 1982 onwards free of charge...I assume the current accounts will shortly be issued here as well. Click on 'filing history' beta.companieshouse.gov.uk/ |
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Post by alwaysnextyear on Mar 1, 2017 11:24:52 GMT
WOW ! SURPRISE, SURPRISE ! THINGS ARE A LOT WORSE THAN WE'VE ALL BEEN LED TO BELIEVE !
The abbreviated accounts for 31.05.16 ( which let's remember contained the Sheffield United cup run match ) have just been processed at Companies House. I speculated previously about how bad things might be, but even I didn't think that they were this bad.
My latest speculations were based on the limited " cobbled together 5 years in one go " information figures cleverly presented by Anthony Hampson at the EGM on 7th July 2016 held at the Whitehouse Hotel, where Hampson's figures were estimating a loss for the year ended 31.05.16 of £ 120,407. Remember that this is over a month after the actual year end. If only it was just the 120k ! The accounts filed with Companies House show a loss of £ 155,512 - more than 35 k than that shown to the shareholders by Hampson a full month after the year end. How can this be so ? What financial controls exist, if any ?
What this means in reality are that we are in far worse a position than the Chairman has led everyone to believe.
Based on Hampson's 31.05.16 estimated loss of 120k , remembering that shareholders funds ( 155 k ) would need to be responsibly returned in the event of a winding down, the club appeared to be worth 377k prior to this season. In actuality it was worth 35 k less at 342 k.
The actual worth as per the accounts at 31.05.16 is £ 496,714 ( less £ 155,155 of shareholders money ) leaving us starting this season with £ 341,559. Forgetting what Hampson presented and said, these are the facts, which begs the questions,
1. How does the Club lose 155 k in a season where we had a cup run ( with the Board's estimated income of 87 k included ) ?
2. How big is the loss for this season 31.05.17, where we have had no cup run ? 200k ? Make your own number up - the Board do !
3. If it is 200k for this season, then next season is most definitely our last, as the cash will run out and the shareholders will need repaying.
4. How and perhaps more pertinently, why have the Board allowed this to happen ?
5. What's happened to Hampson's share investment strategy ? In the last 2 financial years shares issued have totalled £ 200 !
6. Why did the Board sanction signing on so many players this season, including paying a fee for Connor Hughes barely 3 months ago, against this financial backdrop ?
7. Where's all the SGL money gone ?
8. When's the next AGM, Anthony ?
It does however continue to explain why the Club's attitude to regular shareholders AGM's has been so disgraceful. It's only when the Board's positions have been challenged at the EGM's of 2008 and 2016, that any financial information appears.
To a cynic, Hampson's sudden conversion to a CBS believer smacks of one desperate last throw of the dice whilst still attempting to maintain some public appearance of control, as opposed to his latest happy clappy, let's all work together pronouncements. Hampson and Layland have been on the Board for over 8 years, Wilcox over 5 years. How and why have they allowed this to happen ? One for Geoff Berkeley ?
In the style of previous Chairmen, he's overseen the financial ruination of WCFC. It must be in the job description.
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Post by adycrean on Mar 1, 2017 12:49:42 GMT
That is a great post alwaysnextyear - if an extremely depressing one
My biggest frustration in this long running saga of mismanagement is what has happened since the sale of SGL and the failure of Nunnery Way. Even after those 'mishaps' - we had a decent size cash asset that needed to be cared for, and probably ring-fenced. The fact is has been seemingly squandered so quickly (in spite of two decent cup runs) is just tragic.
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Post by Noboddy aka Lord Ealing on Mar 1, 2017 12:56:47 GMT
"is just tragic" - or corrupt? Where has the money gone? Why has the board clung on to power for so long? Could these two questions be related?
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Post by greenman on Mar 1, 2017 15:32:56 GMT
As one of only a handful of shareholders at the AGM who voted against the re-election of Hampson, Wilcox and Layland those who voted for them have only themselves to blame for the fiasco that has followed their election. I would suggest at the next AGM shareholders may wish to think again before raising hands in favour of the aforesaid Directors.
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Post by alwaysnextyear on Mar 1, 2017 15:59:24 GMT
greenman - Sorry to disappoint you, but I strongly suspect based on past Board actions, that there won't be any more AGM's for shareholders to think about. That is of course, unless Anthony Hampson is sorting one out ?
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Post by greenman on Mar 1, 2017 16:26:50 GMT
Methinks perhaps time to call for another EGM?
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Post by alwaysnextyear on Mar 1, 2017 19:16:05 GMT
Seeing as it appears that Anthony Hampson is now such a convert to the CBS idea, he'd have to call one anyway to change the Club's constitution !
Which is fortunate, as it would also give him the opportunity to explain to shareholders, why he is now so much in favour of something that he was so vigorously opposed to less than 12 months ago, when he was all for no change and increased shareholder investment !
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steves
Squad Member
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Post by steves on Mar 1, 2017 19:23:59 GMT
Seeing as it appears that Anthony Hampson is now such a convert to the CBS idea, he'd have to call one anyway to change the Club's constitution ! Which is fortunate, as it would also give him the opportunity to explain to shareholders, why he is now so much in favour of something that he was so vigorously opposed to less than 12 months ago, when he was all for no change and increased shareholder investment ! To be fair to him, can't believe I said that, he was never outright opposed to it, and did say at the EGM that the ground planning would need to be a forerunner to becoming community owned. |
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Post by alwaysnextyear on Mar 1, 2017 19:33:37 GMT
Well he was that opposed to it, that he continued with the notion that running the club unchanged with massive losses each season was the way forward !
Perhaps the 155 k loss for 2016, and a who knows what ( 200 k ? ) loss for 2017 , with a now near critical dwindling bank balance has swung the issue ?
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Post by Brooksiders Return!! on Mar 1, 2017 20:48:56 GMT
Hampson hasn't ever said that he is in favour of CBS, only being community owned. In fact, if you cast your mind back to the fans forum at Aggborough when he read his statement, he completely dismissed CBS, saying that it was only suitable for a corner shop. He was in favour of CIC, even though he didnt really have any idea what it was. A CIC is a limited company with a community interest!
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steves
Squad Member
Posts: 180
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Post by steves on Mar 2, 2017 18:45:21 GMT
Hampson hasn't ever said that he is in favour of CBS, only being community owned. In fact, if you cast your mind back to the fans forum at Aggborough when he read his statement, he completely dismissed CBS, saying that it was only suitable for a corner shop. He was in favour of CIC, even though he didnt really have any idea what it was. A CIC is a limited company with a community interest! I didn't know that, thanks. Really makes you suspicious doesn't it.... |
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Post by Dodger on Mar 3, 2017 6:04:38 GMT
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Post by alwaysnextyear on Mar 3, 2017 10:24:02 GMT
Whilst it's very bad news, they are the facts, and I'm pleased that the Worcester News has run the story - thanks Geoff. It just highlights how the Club has been run which has been a continuation of the spend, spend , spend days of the previous regime, both pre and post SGL sale.
I'm not surprised at all by " Chairman Anthony Hampson has not responded with a comment on the club’s financial position", but I was surprised to read of the 2016 accounts AGM being called for June 29.
By then, the Chairman should have a very good idea of what the 2017 season's figures are. Without a cup run this season, I dread to think.
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Post by creaner on Mar 9, 2017 22:52:28 GMT
Whilst it's very bad news, they are the facts, and I'm pleased that the Worcester News has run the story - thanks Geoff. It just highlights how the Club has been run which has been a continuation of the spend, spend , spend days of the previous regime, both pre and post SGL sale. I'm not surprised at all by " Chairman Anthony Hampson has not responded with a comment on the club’s financial position", but I was surprised to read of the 2016 accounts AGM being called for June 29. By then, the Chairman should have a very good idea of what the 2017 season's figures are. Without a cup run this season, I dread to think. June 29 does seem a long way off. |
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Post by Brooksiders Return!! on Mar 10, 2017 0:30:32 GMT
I'll wager that that won't be happening on June 29th
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dragon
First Teamer
Posts: 355
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Post by dragon on Mar 13, 2017 19:24:26 GMT
Reading through this thread, it occurs to me that whilst `Perdiswell` is seen as the panacea for all our ills, it seems most unlikely that WCFC will EVER be able to make ends meet at the level of competition in which we now compete. Leaving aside all the politics of the moment, I am struggling to recall a time in the last seventy years when we were doing any more than keep our head above water. We needed a friendly against a Stanley Matthews X1 in the early fifties to see a season out and even in the glory days of the Liverpool conquest, the Board and the Supporters Club were at each other`s throats.
If ever a town/city`s football fans deserved a new start via a phoenix club it is Worcester at this time. If- and it`s a big - Perdiswell ever becomes a reality, WCFC should have nothing to do with it. Pride must have its fall and the sooner the blinds come down on this sad lot the better !
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Post by Tim Munslow on Mar 13, 2017 19:54:43 GMT
Good job you weren't running the country during WWII.
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Post by Noboddy aka Lord Ealing on Mar 13, 2017 20:49:41 GMT
Interesting to mention WW 2 Tim. After seeing the way the supporters responded to the whole sorry ground sale saga - the apathy; the fear of standing up to bullies; the sickening respect for authority - I've no doubt that if the Wehrmacht had marched down the High Street most of the population would have saluted.
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dragon
First Teamer
Posts: 355
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Post by dragon on Mar 13, 2017 21:41:53 GMT
I doubt if either of you were around in WW11 to know what the spirit was like. In the meantime the WCFC nonsense continues !
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Post by Noboddy aka Lord Ealing on Mar 13, 2017 21:57:48 GMT
Sieg heil!
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Post by Tim Munslow on Mar 14, 2017 10:46:33 GMT
I was born in 1942 and evacuated to Devon, so I do know a little of what WWII was like.
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Post by Noboddy aka Lord Ealing on Mar 14, 2017 13:05:55 GMT
"I was born in 1942 and evacuated to Devon..." from Worcester Tim? How much more dangerous was Worcester than Devon?
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Post by alwaysnextyear on May 1, 2017 10:43:13 GMT
Geoff Berkeley's article in the Worcester News stated that the AGM for year ended 31.05.16 ( the 155 k loss ) would be held on Thursday June 29th. Is this happening ?
As the Chairman doesn't speak to the fans or shareholders about anything, Geoff, can you ask him to confirm ? With John Jordan having stepped down as Company Secretary, who is now going to organise it ?
With the loss having gone from Hampson's estimated 120 k loss to an actual 155 k loss for the year, plus the 200 k ( ? ) for 2017, Hampson's words ( but naturally no actions ) should be interesting.
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Post by creaner on May 1, 2017 11:35:07 GMT
Geoff Berkeley's article in the Worcester News stated that the AGM for year ended 31.05.16 ( the 155 k loss ) would be held on Thursday June 29th. Is this happening ? As the Chairman doesn't speak to the fans or shareholders about anything, Geoff, can you ask him to confirm ? With John Jordan having stepped down as Company Secretary, who is now going to organise it ? With the loss having gone from Hampson's estimated 120 k loss to an actual 155 k loss for the year, plus the 200 k ( ? ) for 2017, Hampson's words ( but naturally no actions ) should be interesting. I spoke to John Jordan at a recent game who confirmed all club board meetings are in the diary, including the AGM. Who is capable of organising it if John isn't there is a different matter. |
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Post by alwaysnextyear on May 14, 2017 11:58:44 GMT
This is the last thing left for Hampson to reveal. After giving us relegation followed by demotion, our financial situation is eagerly awaited. What do we know ?
At 31.05.16, after losing 155k for the 2016 season, the value of the club as per the abbreviated balance sheet at Companies House was 497k which included 155k of shareholders funds.
As the 2016 season 155 k loss appears to have included 87 k of FA Cup ( Sheffield Utd ) income, what will the loss be for 2017 ? At best 200 k , at worst 300 k ? When will Hampson be making a statement about the finances ? One for Geoff Berkeley to chase up ?
Hampson has said that one more season at steps 2 and 3 would have finished us off. The club sought a 2 level demotion.
It must be really bad. Why does he carry on ? Why indeed ?
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