The Grimsby Town Football Club Plc is issuing this brief statement to complement the publication of the financial statements for the year ended 31st May 2017.
The Club continues to invest prudently in the first team and management staff in order to play at the highest level possible and progress plans for relocation to the new community stadium.
An operating surplus for the year has enabled a further reduction of the Club’s historic external debt that arose before the collapse of the ITV Digital.
Specifically, a £300K repayment to the Bank eliminating the company’s bank loan.
Comparing debt of 15 years ago. The Club had historic debts of circa £2 million which threatened the Clubs existence. This was owed to the HMRC, the Bank and past directors. A sum that in today’s value would be well in excess of £3 million.
Cumulative trading losses over the same period in time have in the main been financed by an increase in the issued share capital.
Currently the Clubs total indebtedness is significantly less than £2 million, demonstrating the prudent management of the Clubs financial affairs.
This sum, should not be confused with the accumulated tax losses of £5.3million disclosed in the accounts.
Often onlookers have confused this sum of £5.3million, to be the Clubs indebtedness, which it is not.
These tax losses have been accumulated over 30 years, and include tax allowances for capital expenditure, such as, converting Blundell Park to an all seater stadium, and the construction of the Findus stand, and income that is not subject to tax.
They remain in the accounts and available to offset against future profits.
Additionally, the Club has invested substantially in the infrastructure for the Youth Academy and training facilities, in the form of changing rooms, technical equipment, staffing levels and the overall facilities.
You can view the current accounts here.