As ever I am indebted to Rugger Guy for providing me with his expert analysis on matters financial.
I sent him the unaudited interims of Rangers International Football Club (RIFC).
They can be read here on Sevco’s website.
So this is what my egg chasing buddy sent me:
Phil you have asked me to provide some commentary on the interim accounts of RIFC.
There is a degree of consistency in relation to last year’s numbers:
- The accounts are not audited.
- There is no balance sheet.
- There are no notes to support the numbers.
I personally would be loath to passing comment on numbers which have effectively been prepared from internal management accounts. Accordingly, it is highly unprofessional to rely on this published profit and loss count and Mr King’s statement.
There are a small number of points worthy of comment.
Loans at the end of December 2017 are now £17.7m. This is a further loan of £1.8m after the year-end. This excludes the recent loan which was secured from the subsidiary of Close Brothers, which was of the order of £3m, before finance costs.
Operating expenses are reported as £3.5m higher than last year. Allowing for player registrations which increased over the summer, the increase over last year is a further £1m.
In summarising, I would not rely on these numbers as being accurate as they have not been audited, but what is clearly evident is that the degree of financial indebtedness continues to rise sharply and the outlook is very challenging indeed.
So that’s his expert take on this creative effort.
“I would not rely on these numbers as being accurate”.
Ouch!
I really can’t add anything to that.
It needs stressed, these are NOT accounts as they are not complete financial statements. 2 items of note, although nothing may be accurate in these “management numbers”.
1. As Rugger guy points out, loans increased 1.7M. Assume this is Alasdair Johnson kicking in funds to meet 2 month end wages. Validates Phil’s previous reporting? Why loans are even mentioned release without having a balance sheet available is very odd.
2. The revenue data is highly suspect. If accurate, it would suggest that newco somehow managed to increase annual revenues by +20%. Year end accounts 1 year prevous had income of 16M and then full year accounts to 30/6/17 stated total of 29.2M. Means that 6 months of income represented 55% of full year.
If same story held for these accounts (and you would expect them to if legit) then the full years numbers on next accounts at 30/6/18 would be approx. 35.2M. 29.2 to 35.2 would be a 6M jump (+20%) from 2017 to 2018. Highly unlikely given there was no change in football circumstances.
King ‘s lawyer argued in court that he was ‘impecunious’ but the court found he effectively controlled trusts which he denied having any control over. The latest news is that said trusts are available to give Dave the cash to buy Sevco shares. If, as is being parroted in the MSM, the shares are worth more than 20p (excuse me while I wipe the tears of laughter from my face) then Dave, or, ahem, the trusts surely can’t lose? As yet, DCK, the lyin’ King, GASL, Glib and Shameless.com have not opted to sell their shares, but everyone else must be itching to dump them, not least since they can buy more when Dave attempts to pump the fans for more ‘warchest’ funds…. you really could not make this up.
So what happens next? Well, apart from Sevco finishing behind Hibs, trophyless, with mutiny in the dugout, the dressing room and the board room, nothing much. Media still likely to tell us all is well, SFA will turn a blind eye and it will take an administration event to change any of that.
King deserves another label. The King Doon the Water (or up the Swannee), the Old Pretender, the King without a pot to piss in… you choose. Any sensible Sevco fans should be thinking, how do we rid ourselves of this gowk? And every fan of every other fans must be thinking… more of the same please, this is pure comedy gold. Brilliant.
With master Murts in charge I am not so sure Sevco will finish in the European places come the end of the season.
Thankfully we have drawn them in the Cup semi. That kills them for that pace too.
HH
Rangers sites claiming that Celtic bloggers are eating humble pie after they asserted that Dave King had no funds with which to make an offer for the shares. I think history will show that Dave King in fact stated this himself in his Affidavit to the Court of Session via his Silk. Perhaps the Rangers sites should be declaring that once again King is caught in a glib and shameless lie.
Why is Chris Sutton not on BT Sport for the Motherwell v Sevco match?
Alex Rae, You can tell he is a hun eh?
PMSL
I met Chris Sutton at Brackley Town’s Annual Dinner on Thursday evening.
An absolute gentleman. A very entertaining after dinner speaker too.
He was
Lol unaudited accounts from King and his chisling friends you couldn’t make it up .That’s like asking an alcoholic to watch your bags that are full of drink you ain’t going to see that again and neither is anyone mug that put money into klan King and Kerchiing they go together don’t you think.
I got a lovely apology from SKY over them saying Rangers were “demoted” to the bottom tier.
I’m never deleting this email.
Love to see a copy of that……………and frame it lol.
Already posted to James Forrest blog re this.
Re unaudited accounts they show nothing other than they made a bigger loss than last period due to some unexplained increase in expenditure. So many questions. However main thing is absence of a balance sheet. This would be far more telling and Phil’s Rugger Guy would tell you this where the bodies are buried eg Loans, when due, secured, etc. Creditors ie people they owe money to, how much, when is it due to be paid (ie how much is outstanding). You can manipulate the P & L by reducing paid amount and increasing creditors. Just a small sample of what needs. Accounts virtually meaningless collection of numbers.
Re offer this was to be made by DK and others. In RIFC site DK says that he got a result after TOP relented and agreed that a company under his control could make the offer. Not up on TOP rules but R9 seems to imply should be made by same person who made original offer. All publicity around court case seems to reinforce this.
The payment is coming from a family company, Laird Securities by way of a £13m dividend. This presumably is due to DK personally otherwise there would be no entitlement to it from RIFC. If this is so and share issue falls and no one wants to sell their shares he is £13m to the good. How does this equate to his having no money as per court pleadings. Perjury?
Re EUFA licence audited accounts for last year prepared as going concern. God enough for a licence. End of, nothing to see, move on.
I thought they were finished, no way there’s time to do a prospectus no way they can show accounts, he hasn’t got that kind of money, cold shoulder now a certainty etc etc etc
Are they fucked?
Phil, I beliebe Rugger Guy’s more telling comment is “… it is highly unprofessional to rely on this published profit & loss count & Mr King’s statement.”
Damning the SFA, indeed.
It would be great if some investigative journalist could get a hold of balance sheet!
I concur with Rugger Guy , need the balance sheet.
One last comment.
Phil’s piece from yesterday (Thursday) makes much more sense now that DK has published the share offer intended to comply with the Takeover Panel. Apparently, the offer will remain outstanding for a period of time so as to allow sufficient opportunity for current shareholders to accept the offer, and the offer will also extent to any newly issued shares between now and when the offer period expires. So if any of the Directors wish to cash out, they have their opportunity to get all their cash (including their ‘soft’ loans!) back if the debt for equity swap is completed before King’s offer expires. Given the UEFA licensing issue, this offer may be more expensive for DK than advertised as RIFC have to proceed with haste to get into FFP compliance before they are punished by UEFA. DK has £13M ringfenced for the offer, but if there is a massive share dilution, that may not be enough to fully fund the offer. Is this why there was panic in the Blue Room yesterday? Will the interim accounts that were just published impact the share price for the share offer and make DK’s takeover offer more expensive due to more people willing to sell?
It also looks like the offer is conditional upon DK and the 3 Bears reaching 50% voting rights and DK can terminate the offer if that threshold is breached. That seems a little dodgy to me, but I am not familiar with the U.K. securities law. Regardless, anyone who wishes to sell their shares will be well advised not to wait or DK may rescind the offer!
The rule on making an offer to all once you go over 30% is that it can be conditional on getting intentions to sell of 50% +1 in total.
However as soon as you get intent to sell of more than 50% it goes unconditional.
Various people have done the sums and if the Easdales sell with the other institutional shareholders who wrote off their investment years ago they will reach 50% no problem.
sevco penny a smack arcade FC.
Phil
I suggest you Refer Rugger Guy to Annex VII of UEFA FFP para 3 and ask him if in his opinion these accounts represent a “fair presentation” of the financial situation at TRFC.
That is what SFA have to consider before they grant a licence,
Why does everyone assume that the interim accounts that Rangers have to produce for outsiders are the same ones they are supplying to the SFA.
So correct me if I’m reading the documents incorrectly:
1) accounts not audited = SFA must refuse UEFA license?
2) the “intended” bid is being funded by money Laird is due in April?
3) TOP will not be satisfied as no prospectus produced by today and no detailed accounts = cold shoulder/contempt of court?
4) using Laird isn’t the same as King/Noal complying with court = cold shoulder/contempt?
5) Kings daughter becomes a new concert party member and must make her own bid for shares?
I’m am sure Phil is all over this… but a point of intrigue to me is in section 6 of the offer document
https://media.rangers.co.uk/uploads/2018/03/RIFC-Mandatory-Offer-Announcement.pdf
seems like the offer is being made by some sort of subsidary/element of NOAL called Laird, and that they are funding it from some sort of ‘dividend’… to quote the above document
“The cash consideration payable under the Offer will be funded using the receipt of dividends to be declared on 4 April 2018 totaling Rand 217,904,049. This amount would convert to £13,074,842.90 at the exchange rates prevailing on the date of this announcement. The dividends will be ring fenced for the purposes of the Offer.”
What part of Kings empire could be paying that “dividend” to Laird ……next Tuesday….. I smell shite
Didn’t his lawyer say he was pink lint? Perjury?
So accounts have been produced which will no doubt be waved through by the SFA and funds lodged to cover costs should any shareholders decide to take the 20p. Anti climax or what. Kings still here, Sevcos still afloat and no cold shoulder. So much uninformed speculation. What a load of pish it’s all turned out to be.
What I take from this is “So what?”
As Rugger Guy tells us in Points 1-3, this is the same as in last year’s unaudited figures. Yet last year’s were accepted. So, what?
Sky Sports is reporting that King has made a share offer to all the other share holders.
This is coming across as King now complying with the Take Over Panel.
But where are the necessary £11 million and share prospectus?
Has he complied or is he just hoping that a quick ‘Hi everybody do you want to sell your shares?’ will be enough to satisfy TOP and the football authorities?
This is all seeming very sinister or am I being paranoid?
Seems dodgy, I think he might be at it. The prospectus was supposed to have been prepared, offer made, and money in escrow by now, instead he’s produced an advert announcing his intention to make an offer.
when the split comes how will the spfl allocate teams to play at ibrokes 3 times , to enable 19 of, home and away fixtures , this divi infers that sevco played many of their 2 away fixtures to less difficult opposition , how intriging .
Does this mean I’m going to need a bigger bookcase?
This mob should never be given a European licence but we all know they will be…
We love Rugger Guy..!
Genuine question:
Why would king release this nonsense?
He is merely underlining the fact that there is not an accountancy firm in the land that can audit these accounts and make them look any way presentable, freemasonry or no freemasonry.
Surely he has just nailed sevcos coffin lid shut!
What accounts go to the taxman, surely with a warning on their accounts an audit would be a certainty ?
Two things come to mind….
Just as well the Govan ferry is no more for if some of this crew where at the wheel they’d never have the accuracy to make the north bank if it were…. iceberg ahoy….!!!
Wow. Well he left it to the last possible moment but King is close to putting good money where his mouth took him.
The announcement isn’t yet the official offer document mind but even now he can’t tell the truth. The TOP said either King or NOAL could make the offer months ago but the statement tried to spin a massive defeat as some sort of victory.
I see the PR is out in force already with the 27 p price on the trading platform. It won’t have any impact on the institutional investors and is a meaningless figure but I bet you’ll see it quoted time and time again.
I for one would like to see the breakdown of the debt numbers that rugger guy mentioned purely for the benefit of those who constantly call this blog the Donegal bloggers bullshit (being from Donegal I love those fuckers having to eat their words). It makes the most interesting of reading, but to make it bitesize to point it out to the west coast nuggets, the east coast nougats and the rest of them with their limited capabilities of reasoning would be good..
Happy Easter Phil
Also worth noting that interim accounts, even from Celtic, are never audited. In any business. It’s a big undertaking to do a full audit, and absent unusual circumstances (takeover, lawsuit, etc) it’s almost always done just once for the full year accounts.
To my eyes it looks like 100% of the increased losses is attributable to amortization of player registrations (transfer fees). That is a non-cash charge in the current period, but the reality is that the cash was shipped out the door last summer during Pedro’s spending spree prior to Progres in Luxembourg.
Most of those players were bought on instalments just before the last financial year ended. You can’t exactly match up the cash effect to the accounts, but if you look at p44 of the accounts they added £10 million to the book value of their squad last year. That should be equate to their total transfer spend, stripped of the Level 5 spin. Then according to p48 £3.4 million has to be paid in real cash this year and another £4.5 after that, suggesting that they only paid £2 million up front last June.
Ah the accounts don’t worry about them nothing to see now move along .And then we have deadline day for King the Chisler and as usual the press radio tv you name it all are all on a sponsored silence again when it concerns the bennys . I wonder what hasbeen will be rolled out to put a positive spin on a defeat to motherwell this weekend to the village idiots to buy season books .No doubt the evening shark jump will gladly help out with an EBT rep standing with massive bit of cardboard with details of phone number and how to purchase the pawn tickets oops sorry season tickets.
If he believes the figures aren’t accurate why does he comment on the amount of debt?
Thanks for the link, but I feel dirty just by being on that site.
Hi Phil
Don’t make good reading loans now stand at £21m.
Will this pass muster at sfa and uefa? for a license
Bet you they’ll be given one
HH
OUCH ! , I like that, sounds painful and to some it will be.
One might think “verisimilitude”
Mr King has also made 13 million share offer.
Their £10m warchest was actually £3.6m,isn’t that what they paid for Pena according to our wonderful media .