The "Albion 2012 financial results" thread

[Northstandite]

Getting 20% of their revenue isn't THAT poultry, remember Azure have to pay for the goods they sell too and workers, so their profit might be around £4m, therefore we are getting over 25% of their profit which sounds fair.

That's not the point.

The retail prices of everything from mar bars to burgers to beer are far far in excess of anything you'd pay anywhere else ie standing in a cold room and not in a plush surroundings.

The margin over food/drink/catering payroll, would be many fold that of a cafe or bottom end restaurant.

That margin is shared by Azure and Brighton, and it looks like Barber acted partly to give us a greater share of that super profit.

£1.25m in the vast catering op, is awful, and is obviously one of the areas Barber's addressing.

 

[Bozza]

Missing the point there.

The retail prices of everything from mar bars to burgers to beer are far far in excess of anything you'd pay anywhere else ie standing in a cold room.

The margin over food/drink/catering payroll, would be many fold that of a cafe or bottom end restaurant.

That margin is shared by Azure and Brighton, and it looks like Barber acted partly to give us a greater share of that super profit.

You're either forgetting or just not mentioning that Azure paid a hefty 7 figure fee to have the contract at the Amex.

 

[AZ Gull]

You're either forgetting or just not mentioning that Azure paid a hefty 7 figure fee to have the contract at the Amex.

In which case, where is that fee reported in the accounts? Does the 1.25million "Catering Commission" income represent the sum total of this fee and any profit-share from the contract?

Also, can anyone identify where all the revenue from conferences, banquets, functions etc is reported? I think many would have expected this to represent a pretty sizeable figure; I'm guessing they would be under either "Operations and transport" or "Other income", but at 400k and 127k respectively they don't seem very significant?

 

[El Presidente]

I've just downloaded the accounts of the holding company.

Hidden away in the small print are a few nerd points:

1: Uncle Tony effectively wrote off £40 million of the loans due to him by converting it into shares on 29 September 2012. The total investment by TB in both shares and loans comes out at about £145 million, and this is BEFORE the Lancing project is bankrolled.
2: Total spent on players in the two years to 30 June 2012 is about £6.1 million (CMS £2.5 million, Buckley £1.0 million, Hoskins £500k, Greer £250k, Vincelot £125k are ones that we know about, so it suggests that KLL, Noone, Harley and the others cost a grand total of £1.7 million)
3: It looks as if we could receive a further £380k from the sale of Elliott Bennett if certain conditions are satisfied.
4: It looks as if we could have to pay Posh up to a further £515k in relation to CMS (and perhaps KLL too).
5: Total stadium cost is just over £101 million, (this is prior to the expansion of the Amex) and that the club had committed to spending a further £9 million on the expansion costs. The training ground costs are separate to the above (I think).

 

[Pavilionaire]

I can see that by increasing the capacity the club have scope to squeeze another £4million turnover from ticketing, merchandise and catering, and the Amex shirt deal would help too. The key though is the "Other Expenses" of running the Amex and, to what extent, these were one-off or recurring.

You realise what just one season in the Prem would do for this club. I read about the possible £1.5million bonus for Gus if he'd joined Reading and kept them up, I wonder what bonus he's presently on if he takes us up, because £2million would be worth it. It could blow a few Prem relegation-threatened teams out of the water in the future.

 

[El Presidente]

Another nerdy point to note is that there is no depreciation charge on the stadium. If the Albion are writing it off over (say) 50 years then the loss would be £11.1 million.

 

[Mellor 3 Ward 4]

Another nerdy point to note is that there is no depreciation charge on the stadium. If the Albion are writing it off over (say) 50 years then the loss would be £11.1 million.

Sorry, im being being thick.

How can depreciation on the stadium not be mentioned in the accounts?

Surely the stadium should be written down/0ff over a period of time, say 25 years?

Does depreciation should reduce the losses made?

 

[m20gull]

Sorry, im being being thick.

How can depreciation on the stadium not be mentioned in the accounts?

Surely the stadium should be written down/0ff over a period of time, say 25 years?

Does depreciation should reduce the losses made?

It will do - in the notes it says "the directors consider the stadium to have still been in the course of construction during the year and therefore no depreciation has been charged in these financial statements"

 

[AZ Gull]

Sorry, im being being thick.

How can depreciation on the stadium not be mentioned in the accounts?

Surely the stadium should be written down/0ff over a period of time, say 25 years?

Does depreciation should reduce the losses made?

Depreciation is a charge to the profit/loss account, so it will widen the loss. However, it is a non-cash charge, so it is added back in on the cash-flow statement.

 

[tinycowboy]

I've just downloaded the accounts of the holding company.

Hidden away in the small print are a few nerd points:

1: Uncle Tony effectively wrote off £40 million of the loans due to him by converting it into shares on 29 September 2012. The total investment by TB in both shares and loans comes out at about £145 million, and this is BEFORE the Lancing project is bankrolled.
2: Total spent on players in the two years to 30 June 2012 is about £6.1 million (CMS £2.5 million, Buckley £1.0 million, Hoskins £500k, Greer £250k, Vincelot £125k are ones that we know about, so it suggests that KLL, Noone, Harley and the others cost a grand total of £1.7 million)
3: It looks as if we could receive a further £380k from the sale of Elliott Bennett if certain conditions are satisfied.
4: It looks as if we could have to pay Posh up to a further £515k in relation to CMS (and perhaps KLL too).
5: Total stadium cost is just over £101 million, (this is prior to the expansion of the Amex) and that the club had committed to spending a further £9 million on the expansion costs. The training ground costs are separate to the above (I think).

I'm way too late for this party, but only just back from holiday. A few more points (sorry if they've already been mentioned):

- Cashflow for the year was positive, but only because TB paid for the capital expenditure (ie stadium improvements) instead of the club paying - what's owing to him therefore went up, although this was subsequently reduced by the £40m mentioned above (the conversion of loan to share capital happened on 24th September 2012). If he hadn't contributed, cashflow would have been negative, around £19m
- As has been mentioned, there is no depreciation of the stadium at all - this policy is to be reviewed. As land value appears historically to have been £5.3m, that leaves a lot of potential depreciation (total value of the stadium is £101.0m) over the next ten to 20 years. However, the land may be worth much more now that a precedent of building on it exists. I'm not familiar with the "fair play" rules - it's possible that depreciation and amortisation are not included in the assessment of a club's losses
- There is no expectation of profitability (or, more accurately, of taxable profit - the two may not necessarily be hugely different) in the foreseeable future. Hence no recognition of deferred tax assets
- Another £9.1m on top of the normal running costs will be required for Phase 2 expansion of the stadium (presumably already spent by now) and the Falmer Retained Land project (don't know what this is, but I'm sure I could google it) - presume that TB will pay for this as well
- TB now owns 91% of the club, up from 77% as at 30 June 2012

 

[The Birdman]

Haven't read all the thread but the costs of the park and rides the subsidised travel and the extra stewards at all these locations must cost the club a lot of money it's a shame that we don't have enough parking at the ground even the coach park for some games is becoming overcrowded (blame the sky crews)

 

[The Large One]

Haven't read all the thread but the costs of the park and rides the subsidised travel and the extra stewards at all these locations must cost the club a lot of money it's a shame that we don't have enough parking at the ground even the coach park for some games is becoming overcrowded (blame the sky crews)

The car parks at the University are under-used.