New Balance Sheet

[BigFatPie]

Here;

https://x.com/theboygosling/status/1...HIguMs7uVNF98Q

I’m no accounting expert but isn’t liabilities going up from £10m to £13m quite a bad thing?

[OP67]

Here;

https://x.com/theboygosling/status/1...HIguMs7uVNF98Q

I’m no accounting expert but isn’t liabilities going up from £10m to £13m quite a bad thing?

Yes it is if the brothers decide to stop the funding. Hard to see how we can be "sustainable" anytime soon as Palmer told us all isn't it. I guess what he ment was to have no extra loss.

[Chicken Balti Pie]

So liabilities have increased by £3m, but what has also increased is tangible assets also.

Now when you consider that the new sound system cost £500k plus other new investments such as the container bar as well as the new LED advertising boards, the increase of liabilities will be offset in future by further growth that these will allow.

Also, this isn't a statement of profit or loss, just merely the liabilities and assets of the club. They'd be silly to invest actual pounds and pence, it's safer to put the money in as a loan hence why the liabilities have increased

[Evesham Pie]

Unfortunately small company accounts give you bugger all meaningful information really but I'm a little surprised that the loss implied by the movement in P&L reserves is £2.7m, up from £1.7m in 2022. I had expected the loss to reduce given smaller squad, better crowds. promotion etc in the 22/3 season.

As already mentioned, financial sustainability looks some way off based on this.

[Evesham Pie]

The other interesting thing is in note 12, Financial Commitments. It states that the maximum potential liability to other clubs for a share of the transfer profit if Notts sell un-named player(s) is £22,500. I assume this mainly relates to Macca, so if he does leave in this window or the summer then there isn't much of the transfer fee that will have to be paid to Gateshead.

Given the overall state of the finances though I think its unrealistic to expect all of any transfer fee to be recycled into the squad.

[sinophile]

I'm no expert, but a couple of points. Firstly the Balance Sheet is at a given point in time, in this case 30th June 2023. It's already 7 months out of date. We don't know how much the club owes now. In any case, as the Balance Sheet shows what the club owns (it's assets) and where the finance came from to pay for those assets(the liabilities), if the owings are not being claimed immediately, or in the near future, there is no issue.

Secondly, it is a not a statement of profitability. That is shown in the profit and loss account which reflects a period for a year leading upto its date of production. Sustainability is different to profit, although any business would need to be profitable in the long run, whenever the long run is.

[60YearsAPie]

Sustainability is different to profit, although any business would need to be profitable in the long run, whenever the long run is.

How do you define sustainability? Notts County FC Ltd is sustainable as long as our owners lob in approx £3m each year to cover our losses?

[sinophile]

You would have to ask the owners, or their representatives, exactly what they mean. It was the word that was used at the fans' forum. I guess it is something along the lines of meeting their objectives whilst satisfying their stakeholder's needs. Profit may not be the main objective, it could be a totally different objectives. Large businesses will publish their objectives, I'm not sure Notts do.

[1955pie]

The other interesting thing is in note 12, Financial Commitments. It states that the maximum potential liability to other clubs for a share of the transfer profit if Notts sell un-named player(s) is £22,500. I assume this mainly relates to Macca, so if he does leave in this window or the summer then there isn't much of the transfer fee that will have to be paid to Gateshead.

Given the overall state of the finances though I think its unrealistic to expect all of any transfer fee to be recycled into the squad.

I can't see note 12 or any other note.
Is this something that is only available through X?
If so, could someone please kindly post it?
Thank you.

[BigFatPie]

The other interesting thing is in note 12, Financial Commitments. It states that the maximum potential liability to other clubs for a share of the transfer profit if Notts sell un-named player(s) is £22,500. I assume this mainly relates to Macca, so if he does leave in this window or the summer then there isn't much of the transfer fee that will have to be paid to Gateshead.

Given the overall state of the finances though I think its unrealistic to expect all of any transfer fee to be recycled into the squad.

Is there any significance in the fact that our owners put money into the club rather than in creating extra shares like they do at somewhere like Lincoln?