TUFC Ltd accounts y/e 30/6/22

Hi Pete.

Yes, these balances are pretty small in the scheme of things.

We will find the interesting stuff when TUFC Ltd’s accounts come out.

As you will know, although much of the local media does not, Torquay United is NOT owned by GI or by Toklon.

The club is majority owned by Riviera Stadium Ltd which is owned by Clarke Osborne personally not via GI.

Companies have to report on “related party transactions” - that is transactions between companies controlled by the same person.

GI, which is controlled by Clarke Osborne via Toklon, charged TUFC a management fee of £30k in 2020/21, but nothing in 2021/22. In addition, GI charged on expenses (i.e. costs incurred by GI but relating to TUFC) of £7,886 in 2021/22 compared to £4,315 the previous season.

Up until June 2021, cumulative fees and expenses had racked up to £99,662 unpaid.

That would have increased to 99662 + 7886 = 107548, but we must have paid off £41,514 of this to leave £66,034 still owing as at 30 June 2022.

This is effectively a trade creditor - that is monies owed for services provided.

It is not the same as the loan from RSL which was £3.6million on 30 June 2021 and on 31 March 2022.

We will find out whether that loan has increased in the three months to 30 June 2022 in a week or so when TUFC Ltd publish their accounts.

We will also find out whether the slowing in loan growth from the owner is due to greatly reduced losses or to debt being incurred elsewhere.

Riviera Stadium Limited, in addition to lending TUFC Ltd £3.6m, had lent £129k to GI, but GI repaid £110k of this in the year. No relevance to TUFC.

If money go before all ways do lie open....W.S.

With apologies blindpew..I am guessing Shakespeare was thinking of Wrexham at the time.

Well the answer to that is a very emphatic "debt being incurred elsewhere".

After 9 months with no increase in the debt to RSL, it suddenly grows by a whopping £670k in three months! Money lost in three months, or rejigging of who the money is owed to?

In addition, "bank loans and overdrafts" up £301k to £643k. I had guessed that last year's balance, although stretching the definition of bank loan, was a Sport England Covid Loan. If so, it is disappointing if we have drawn on this so heavily in a season unaffected by covid. I can't think who else would advance such a sum as a "bank loan or overdraft". Answers on a postcard.

More worrying still is that current liabilities have increased by £217k.

So £670k from RSL + £301k other loans + £217k working capital to fund a loss of nearly £1.2m.

Further than we have ever been from sustainability. Growing the overhead base whilst actively discouraging customers does not appear to be working well.

Previous owners have funded losses incurred on their watch by writing off monies owed. Very worryingly, we now have a huge amount of debt other than that owed to the owner himself.

That could be a blocker to anyone hoping to keep alive the 102-year-old-company. So many people have worked so hard to pull it through so many crises in all that time.

Hope for the best. Prepare for the worst.

Begs the question, what are they actually spending the money on?

At the other end of the food chain Wrexham reported a loss of 3 million...although they did purchase the ground so it's a bit misleading.
Also...an interesting article in the Guardian this week about the financial struggle of players outside the top tiers....nice photo of a Torquay player featured.