SHAREHOLDERS OF GILLINGHAM QUESTION FINANCIAL INFORMATION DELAY

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The Supporters Trust (GST) for the League One club issued a press release expressing their concerns over the lack of financial information released by the club.

The club became de-listed from trading last year after financial problems arose, leaving its shareholders without a financial statement concerning the 12-month period ending May 31, 2005. Also, there has not been a date set for the Annual General Meeting (AGM) during which a club’s financial numbers normally are officially released.

Last year, the club avoided going into administration and a 10-point deduction in league standings after coming to an agreement with the Bank of Scotland. The club posted a net debt of GBP 9.2 million, but club chairman Paul Scally said at the time “our debt isn’t based on poor trading.” He blamed the club’s financial troubles with the collapse of broadcaster ITV Digital in 2002.

In February, the club sent a statement to shareholders indicating that the total overdraft was near GBP 10 million and that technical problems were responsible for holdups in the release of financial information. The statement also said debt restructuring plans were at an advanced stage with the bank and that a date for the AGM would be set in March.

Six weeks after releasing the statement, the club still has not released and financial information of set an AGM date, leading to the GST’s press release which read, in part: “So, how much longer do we wait for news? How long before the club explain how they will continue to finance interest payments, which must exceed fifteen thousand pounds per week at today's rates, on match attendances barely exceeding six thousand?”

The statement was in reference to the club’s decline in attendance at the 10,600-capacity Priestfield stadium, down 23 percent to 6,588 per game, compared to 8,528 last season.

The club is currently fourth from the bottom in the league standings.

“Supporters repeatedly ask how a new stadium can appear so high on the club's agenda, when there is such an urgent and pressing need for improvement on the field of play, particularly over the vital coming weeks? These are the questions supporters want answered, and are the issues we are told cause them greatest concern, yet the response from the club is nothing short of lamentable.” the release went on to say.