Appraisal of Dulwich Hamlet Football Club Ltd abbreviated accounts for the year ended 30 September 2016
In line with objective 3 of our 2016-18 objectives, the Supporters’ Trust is here to ensure that Dulwich Hamlet Football Club is a transparent and well run football club. In order to prepare the club for fan ownership it is vital that we scrutinise any publically available financial information and continue to push for any information that is not readily available to support the understanding of this public information.
On 29th June 2017, Dulwich Hamlet Football Club Ltd filed abbreviated accounts with companies house for the year ended 30 September 2017. The company is within its rights to file abbreviated accounts since it satisfies at least two of the required criteria, namely a turnover of less than £10.2m, £5.1m or less on the balance sheet or 50 employees or less.
A set of abbreviated financial statements need only disclose a Balance Sheet and notes to the Balance Sheet. The accounts were filed on time, and do not require an audit.
With the above in mind, we were able to perform a limited review of the financial statements, noting the following key features:
There doesn’t appear to have been any fixed asset investment in plant and machinery through this entity during the period. Without full knowledge of the breakdown of assets held by the company, it is difficult to say whether the assumed useful economic life of 20 years for these assets is generous or realistic.
Current Assets (Debtors £17.6k, Cash £12.6k)
Debtors and cash have both increased from the prior period. Without any requirement to disclose any further information on these balances, there is little to be gained from this.
Creditors < 1 Year (£493k)
It is creditors and retained losses where the most significant movements are noted. £173k has been added to the current creditor balance, due to be repaid within one year, with £147k being the increase in retained losses in the period. Again, without further clarity on what the balance is comprised then there is little to be gained from this movement, other than to say that the continued losses of this entity are increasing the level of debt being owed to another party. The terms to which this debt is held and the likelihood of it being called for repayment are unknown, but given that it resides in ‘current creditors’ it is a fair assumption that the debt could be repayable on demand.
Having said the above, the accounts have been prepared under the going concern basis, which considers that the entity will continue to exist under the support of its directors and creditors.
With the limited information available, there are a few key questions that need to be taken away from the review of this set of accounts:
1. What is attributing to the increased debt/further losses during the period?
2. Who is this debt owed to, and what are the formal terms of this debt?
3. Given that we are shareholders in the company, should we not be receiving full accounts, rather than the abbreviated set filed at Companies House? When can these be made available to us?
DHST will follow up on these outstanding questions in due course.