Two days after announcing un-audited profits of £5.2m for the first six months of the season Sevco have returned to Close Brothers for funding to see out the season.
In business terms Close Brothers are most definitely the lender of last resort with prohibitive interest rates and loans provided with heavy security.
Exact details of the current loan have still to emerge but a year ago the stadium Wi-Fi, catering facilities and iconic Albion Car Park were included in the loan deal.
Another secured pay day loan over the big hoose that Chas Built????. pic.twitter.com/K66uFI1yd0
— David Low (@Heavidor) February 28, 2019
After stellar profits in accounts & hugely successful share issue.
They need to mortgage assets again?
Surely not!
*Ahem*
— Judging EBTs:guilty (@AitkensDrum) February 28, 2019
The fact that the accounts are unaudited is no big deal (they are only interim half year accounts). The fact that there’s no balance sheet or cash flow is. Without them the profit/loss account is meaningless.
— Just one more thing (@johnjh67) February 28, 2019
Taking out the loan with Close Brothers suggests that none of the current directors are prepared to provide any more soft loans.
Money from seven Europa League ties created the un-audited profit for the period to 31 December but that won’t be repeated in the second half of the season with Jermain Defoe and Steve Davis adding to the massive wage bill.
Sports Direct have two outstanding actions against the company relating to their retail contract, after before formed in 2012 Sevco remain with Metro Bank who provide trading facilities for start-ups but no overdraft option.