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Gillingham will release financial report
England - 08 May, 2006
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League One club Gillingham has set a date for an Annual General Meeting (AGM) to consider the club’s financial accounts for the years ended 31 May 2004 and 31 May 2005, taking place 13 June at the Preistfield stadium.
The Supporters Trust for League One club Gillingham (GST) issued a press release a few weeks ago expressing concern about the club’s financial stability. Formerly a listed club, the delisting decision by Gillingham’s board left a number of individual fan shareholders waiting for the annual statement of the club’s trading for the twelve months ending 31 May 2005.
The club has put the profit and loss account, but not the balance sheet, on the club’s website. In the year ending 31 May 2005, turnover fell by 12 percent from GBP 8.48 million to GBP 7.48 million, while administrative expenses rose by 14percent, reaching GBP 2.07 million.
The result was to transform an operating profit of GBP 104,412 in the year ending 31 May 2004 into a loss of GBP 1.22 million the next year. Player wages rose by GBP 300,000 in spite of the fall in turnover.
“If the season ending May 2004 was not a challenge, the 2004/05 season represented by far the most difficult year for the Company during my 10 years as Chairman, both on and off the field of play,” chairman Paul Scally said.
The season ended with relegation from the Championship League after five years and, Scally said, “So too ended the playing careers at the club of a number of senior players as it became obvious that changes ahead were needed, or in some cases salary demands would not be affordable going forward.”
After finance charges, the pre-tax loss for the year was GBP 1.8 million compared to a loss of GBP 354,145 the year before. The loss per share increased from 0.75 pence to 3.82 pence. Scally said that money-saving measures had been put into effect and that should reduce the losses in the current financial year. Profits are forecast for the three following years.
The Supporters Trust for League One club Gillingham (GST) issued a press release a few weeks ago expressing concern about the club’s financial stability. Formerly a listed club, the delisting decision by Gillingham’s board left a number of individual fan shareholders waiting for the annual statement of the club’s trading for the twelve months ending 31 May 2005.
The club has put the profit and loss account, but not the balance sheet, on the club’s website. In the year ending 31 May 2005, turnover fell by 12 percent from GBP 8.48 million to GBP 7.48 million, while administrative expenses rose by 14percent, reaching GBP 2.07 million.
The result was to transform an operating profit of GBP 104,412 in the year ending 31 May 2004 into a loss of GBP 1.22 million the next year. Player wages rose by GBP 300,000 in spite of the fall in turnover.
“If the season ending May 2004 was not a challenge, the 2004/05 season represented by far the most difficult year for the Company during my 10 years as Chairman, both on and off the field of play,” chairman Paul Scally said.
The season ended with relegation from the Championship League after five years and, Scally said, “So too ended the playing careers at the club of a number of senior players as it became obvious that changes ahead were needed, or in some cases salary demands would not be affordable going forward.”
After finance charges, the pre-tax loss for the year was GBP 1.8 million compared to a loss of GBP 354,145 the year before. The loss per share increased from 0.75 pence to 3.82 pence. Scally said that money-saving measures had been put into effect and that should reduce the losses in the current financial year. Profits are forecast for the three following years.
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