Return to profit????

[trendylfj]

I have to say that I am pleased to see that we only lost £1.86 million last year - a much-improved situation from the previous years when the club played behind closed doors and lost £5.9M, but ask myself what will it take to return to profit. We can't keep going losing money every year. If the reports I read some time ago are to be believed, we owe £30M approx. I don't know if that is true or when it needs to be repaid but if we can't make a profit when we win the title we have some hard selling to do somewhere. I haven't read the balance sheet so if someone can enlighten me I would be grateful.

[TigerFeetSteve]

Of the £1.86mil lost over £1.1mil was depreciation of assets.

So operating loss of only in the region of £700k I think is pretty good.

The loss includes payments against loans from my understanding. So we're paying our loans off on time I think.

A good thread on our situation written by a fellow fan is here.
https://twitter.com/spkeene/status/1588 ... BrFHg&s=19

[CrumblingTerrace]

Loans and overdrafts are £18.1m (p.5 of the Annual Report). The two biggest chunks are from HSBC and government (DCMS).

The HSBC loan of £7.1m is being repaid, but that'll get tougher. It's linked to the Bank of England base rate so the interest rate will have increased significantly over recent months.

The DCMS loan of £6.9m isn't being repaid yet. We have an interest-free period until March 2023, so we'll see that impact next year's accounts.

[sk 88]

Loans and overdrafts are £18.1m (p.5 of the Annual Report). The two biggest chunks are from HSBC and government (DCMS).

The HSBC loan of £7.1m is being repaid, but that'll get tougher. It's linked to the Bank of England base rate so the interest rate will have increased significantly over recent months.

The DCMS loan of £6.9m isn't being repaid yet. We have an interest-free period until March 2023, so we'll see that impact next year's accounts.

Yes, we also have £2m of "loan notes" from Peter Tom/Tom Scott bearing 5% and apparently due to be redeemed within the year.

We also paid £2m of tax which was delayed from the periods of the lock down, this was included in the £30m debt figure (which was actually all liabilities) mentioned higher in the thread. Our balance on taxes owed is still slightly higher than pre-covid but as we now run our own shop we will be paying more VAT so timing differences etc will mean a higher carrying figure.

We definitely need to get back into "cash positive" or profits before depreciation being higher than interest payments asap. As we're effectively a non-profit organisation we don't need to make an accounting profit from which to pay a dividend but we do need to generate more cash than we use over the medium term.

[CrumblingTerrace]

The report mentions the first bit of revenue coming in from the hotel. I can't recall what the deal was with its construction... what exactly does the club own?

[sapajo]

The report mentions the first bit of revenue coming in from the hotel. I can't recall what the deal was with its construction... what exactly does the club own?

The club own the land the Hotel sits upon and charges them ground rent for the privilege.

[CrumblingTerrace]

Thanks, @sapajo.

[sapajo]

Thanks, @sapajo.

Your most welcome

[Dr H Flashman MBE]

https://www.bbc.co.uk/sport/rugby-union/63569866
I saw this on the BBC. I was under the impression that Exeter were very solvent. It appears that there are a lot of financial issues surrounding even the most apparently stable clubs.