Stewart Robertson has told a select group of Sevco fans that the club will be in profit next year.
If the club’s Managing Director is true to his word it will mark one of the greatest turnarounds in football history for the club that has posted increasing losses since formation by Charles Green in 2012.
In their last published accounts, to the year 30 June 2020 the company announced loses of £15.9m on a turnover of £59m. Accounts for the 20/21 season have still to be posted but are expected to be in the region of £30m which would represent a monthly loss of around £2.5m.
Increasing revenue and decreasing expenditure is the obvious route to sustainability but with Kemar Roofe and John Lundstrum signings contracts in the region of £40,000 per week there hasn’t been any suggestion of the club spending less despite the whinging of Steven Gerrard.
On-message Ibrox website Follow Follow reports:
MEETING WITH RFC DIRECTORS
After the Club 1872 we went to a meeting with Chief Executive Stewart Robertson, Ross Wilson from the football department and James Bisgrove from Commercial for a lively, but truncated because of the time, presentation and discussion.
As noted above, Robertson stated simply that because of their behaviour the club didn’t currently had a relationship with Club 1872. On the other hand he expected the club to move into profit next year and the opening of the new Edmiston Club to put the seal on our 150 celebrations.
A recent share issue aimed at bringing in £6.5m only raised £4.5m from supporters before costs are deducted.
This month Dave King is due to have a £5m loan repaid which in turn would require the club to repay a £3.2m interest free loan from the Scottish Government from earlier this year.
Sports Direct have still to get a decision on the level of compensation due following breaches of contract over the kit deal with Hummel/Elite Sport in the summer of 2019.
In 2017 the Ibrox club paid Sports Direct £3m to negotiate a new deal that retained matching rights to future contracts with Mike Ashley’s firm.
Dave King wants his £5m loan repaid by October.
I wonder where the other £1.75m will go – that is, if the offered shares are fully subscribed. pic.twitter.com/MWVPbWUw5x
— GrandOLTeam (@JBLuvsCeltic) June 1, 2021
1.conditions are no loans to be paid to directors 2. no dividends to be paid
Dave King is waiting on repayment of a £5m loan by 31st of October this year, if that sum is repaid the company will have to repay the Scottish Government their £3.2m loan at the same time.
— Gerry (@gerrydoc10) June 22, 2021
The liabilities are the key: HMRC, Dave King loans and Close leasing plus any other lenders. @Pmacgiollabhain blog one of the share offerings was to pay the water, electric and gas bills.
— Celtic SC©®™ (@Celtic67Fins72) October 5, 2021
The only thing that collapsed like a pack of cards was Dave King’s Sebata company in South Africa.
752M Rand revenue & 289M operating profit in 2019 to 34M revenue & 116M operating LOSS in 2021.
No wonder he needs his £5m loan repaid & wants £13m from C1872 for his shares. pic.twitter.com/f8aHD885t7
— GrandOLTeam (@JBLuvsCeltic) October 16, 2021