Lukers1 Posted April 11, 2013 Share Posted April 11, 2013 Taken from a update this morning. Preston North End need £4m injection Preston North End will need almost £4m to meet its cash requirements to keep the club afloat until next March, according to its latest annual report. Writing in newly filed accounts for the club's parent company, auditors said they would have to ask shareholder Trevor Hemmings or their backers for £3.7m in extra capital. This was based on the assumption that their current banking facilities and shareholder loans were renewed when they expired in summer 2013, auditors said. Chorley-based Hemmings, who also owns racehorses and property development company Northern Trust, has bankrolled the club since setting up Deepdale PNE Holdings in 2010 to take the then-listed club off AIM. The latest accounts for Deepdale PNE show the company ended the year to 30 June 2012 with £27.6m in parent company and related party loans, including £4.5m from Hemmings, which had risen to £32m by the end of March 2013. The report added: "The company has prepared detailed cash flow forecasts....these show the group and company do not have facilities in place to fund projected cash requirements over the next 12 months. "This assumes that the current bank, shareholder and other loan facilities are extended for a further period when required. The support of the ultimate shareholder has been evident for many years. "In common with many clubs in League One, Preston are likely to continue making operating losses and suffering net cash outflows." Revenue for the year to 30 June 2012 was £6.18m, down from £10.7m (pro rata £9.17m) in the 14 months to 30 June 2011, while a 2010/11 pre-tax loss of £18m (pro rata £15.4m) dropped significantly to £7.34m a year later. During the year, directors of Deepdale PNE Holdings agreed to waive £10.8m of the inter-group balance which pushed Preston North End Ltd out of the red and to a pre-tax profit of £3.5m. They were relegated from the Championship to League One at the end of the 2010/11 season and the club currently sit in 15th position. The report added: "Cashflow continues to be tight as the club carries a squad with wages which are too high in comparison to its revenue. "The group has therefore continued to be reliant on the financial support of its shareholder." Quote Link to comment Share on other sites More sharing options...
lookers87 Posted April 11, 2013 Share Posted April 11, 2013 Source... And the perils of running clubs at this level...Bury aren't the only one requiring a cash injection quickly... Preston need £4m.... http://www.insiderme...st_news_tracker Quote Link to comment Share on other sites More sharing options...
another fan Posted April 11, 2013 Share Posted April 11, 2013 (edited) Another sign of the state that TRUE FOOTBALL clubs are in ( yes I am having a dig at the greedy Premier League ) At the risk of attracting flak, should we not appreciate that the current owner(s) have kept our Club alive Edited April 11, 2013 by another fan Quote Link to comment Share on other sites More sharing options...
bluehobbit Posted April 11, 2013 Share Posted April 11, 2013 yep we should be grateful we still have a club and one which if the new stand gets built and earns some more revenue 24/7 could be relativly healthy. There have been understandable frustrations with some things that have gone on though and some people have really reacted negatively to some of corneys comments over the last few years Surely the FA should be looking at stuff like this and trying to get money to spread through out the leagues - but they wont they just want to eat prawn sandwiches in at perm games and fly around the world for nowt. Quote Link to comment Share on other sites More sharing options...
c.hill12 Posted April 11, 2013 Share Posted April 11, 2013 Although the new stand would be a huge step forward, it isn't the be all and end all. We have to find tenants for all the space 1st and fill the boxes. Quote Link to comment Share on other sites More sharing options...
al_bro Posted April 11, 2013 Share Posted April 11, 2013 Although the new stand would be a huge step forward, it isn't the be all and end all. We have to find tenants for all the space 1st and fill the boxes. Exactly. There is plenty of competition in the area for the conference facilities, and the gym. It will definitely bring in more income, but not enough for the club to break even. Had it been bigger it would have generated more income from larger retail areas. SC may have a little less to dig out of his pocket. Quote Link to comment Share on other sites More sharing options...
Guest Scratch2000uk Posted April 11, 2013 Share Posted April 11, 2013 I get the feeling it's their ultimate goal (the greedy league) Is to rid the country of all the smaller clubs and get the next generations just supporting the greedy league as there will be no little clubs left to compete. A bit like Tesco have done with all the small shops. Quote Link to comment Share on other sites More sharing options...
Guest Scratch2000uk Posted April 11, 2013 Share Posted April 11, 2013 Trouble seems to follow that fella Risdale, doesn't it? Quote Link to comment Share on other sites More sharing options...
Roger Ritchie Posted April 11, 2013 Share Posted April 11, 2013 It's a sad day for football when possible trouble means bankruptcy and not a group of young males having a dance off on the clubs carpark. Quote Link to comment Share on other sites More sharing options...
BP1960 Posted April 11, 2013 Share Posted April 11, 2013 I get the feeling it's their ultimate goal (the greedy league) Is to rid the country of all the smaller clubs and get the next generations just supporting the greedy league as there will be no little clubs left to compete. A bit like Tesco have done with all the small shops. There's Tesco Express, a bit like Premiership clubs taking over clubs like the Latics and running them as B sides. Quote Link to comment Share on other sites More sharing options...
RoytonLatics Posted April 11, 2013 Share Posted April 11, 2013 There's Tesco Express, a bit like Premiership clubs taking over clubs like the Latics and running them as B sides. And a lot like rugby league......the end is nigh! Quote Link to comment Share on other sites More sharing options...
Hands on Posted April 12, 2013 Share Posted April 12, 2013 I just don't get it! Why should we be given any money other than that which is generated by our own activity? The truth is that leagues 1 and 2 can not break even and something has to change. The market value of Fratton Park has been agreed at £3m. Our new stand will cost more than that but the ground is only worth development value less the cost of clearing the site. We have to have an owner prepared to provide a stadium but we can't expect them to pay for the football team when the fan base is not there - in the long run team after team will go bust. 5 years or 10 years leagues 1 and 2, if they exist, will be semi-professional. Quote Link to comment Share on other sites More sharing options...
OLDHAMADE Posted April 12, 2013 Share Posted April 12, 2013 I know we need a new stand but a new build is going to look mightily out of place unless the other 3 sides are given a much needed make over Quote Link to comment Share on other sites More sharing options...
c.hill12 Posted April 12, 2013 Share Posted April 12, 2013 if a club is run properly it CAN make a profit. Look at Walsall and franchise. Both in our league and both recently posted profits. Pretty sure it's Walsall's 8th year running turning a profit aswell. Quote Link to comment Share on other sites More sharing options...
Ritchierich Posted April 12, 2013 Share Posted April 12, 2013 There is only one reason football clubs are going bust left right and centre and that is wages. PNE, like Portsmouth and every other stupid football club pay players too much and put them on long term contracts regardless of what division they are in It is basically collective scuicide and the greedy league couldn't give a xxxx Quote Link to comment Share on other sites More sharing options...
leeslover Posted April 12, 2013 Share Posted April 12, 2013 It's a sad day for football when possible trouble means bankruptcy and not a group of young males having a dance off on the clubs carpark. That's how I read it as well. I was getting ready to rumble before I saw it was just ired old business news. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.