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Ruud Krol

Annual report and financials

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Ruud Krol

going in the right direction

 

https://www.heartsfc.co.uk/news/article/annual-report-financial-statements-1?fbclid=IwAR1yepYs4VlkIwjz-APpM1pPx5jjOQenWRhKiG5sImgrC7owbKga4Qg0Wtc

 

Today Heart of Midlothian PLC published its Annual Report for the year ended 30th June 2019.

Financial Year 2018/19, once again, brought with it both challenges but also significant achievements, as we move ever close to becoming the largest fan-owned football club in the UK. We remain focussed on achieving our long-term objective of building a financially stable operation, with the infrastructure, vision and people, in place, to ensure the on-going successful development of our Club. Once again, we have recorded a strong financial performance, while continuing to invest for the future, both on and off the pitch.

Our Tynecastle Redevelopment Project continued apace during the year, seeing a number of new facilities completed and open for business. We completed all Ground Floor works to the Main Stand including our Media Room and Police Room, and very importantly our new splendid Changing Rooms, in readiness for our first home game of the new 2019/20 season, in July 2019.

Hand-in-hand with completing ground-floor facilities, we turned our attention to completing our magnificent 3rd Floor facilities, including our superb Skyline Lounge. These facilities have been described by many as “the best in Scottish Football”.

As a football club, external focus is, of course, always on the performance of our First Team. Unfortunately, our success on the pitch for the 2018/19 season did not reach the level to which we aspire as disappointingly we finished in 6th place in the Ladbrokes Premiership for the second year in succession. During the year we continued to make a significant investment in our playing squad and while our final league position was disappointing, we did achieve success in both the League Cup and Scottish Cup. A League Cup semi-final at BT Murrayfield, watched by over 28,000 Hearts supporters, followed later in the year by a Scottish Cup final at Hampden in May 2019, supported by over 21,000 Hearts fans, allowed us to finish the season on a positive note. 

From a financial perspective we have once again achieved our major objective which was to grow our revenues profitably. In particular, our turnover increased by over 20% from £12.1m to £15.1m. This resulted partly from growth in our commercial income, aided by the new facilities in our main stand and as a result of our successes in both the League and Scottish Cups. 

In summary, it was another challenging year both on and off the pitch, however, we continued to focus on our core values and have delivered a very positive financial performance. This bodes well for the future.

 

Key 2018 / 19 Highlights:

·       Turnover in excess of £15m

·       31% increase in income from Commercial activities

·       12% increase in gate receipts

·       Operating profit of £1.6m

·       Over £500k gain on sale of players

·       Strong balance sheet with net assets of £17.5m

·       9 Academy players signed professional contracts in season 2018/19

·       Investment in the community continues through our Community Football and Heritage Departments and our charity Big Hearts

·       Launch of Innovation Centre, delivering Digital Education and Business Support in the local community.

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Vlad Magic

Apologies Barrack posted same

 

Mods please delete or merge.

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Icon of Symmetry

Looking rosey in the garden. Pleasing.

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highlandjambo3

Any vermin looking in, just one word for you.....................  SMUG.

 

 

Actually make it 4 words for you, add FTH 

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allystrachan

Imagine what we could do if we can get the football side performing & we start selling out each week.

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Coco

£3.25m from benefactors including £1m for player wages.  There is something not quite right with the club depending on this sort of income I fear.  Who is it from and what are they getting for it?  5 years ago this amount could have bought all the assets of the club.

 

£0.7m of short term funding from Bidco - suggests cash was tight.

 

Outside of donations roughly a £400k loss despite the big rise in turnover.

 

Presuming Levein is highest paid director - compensation rose to 178k from 141k - illustrates how it might not be easy to get a high earning manager

 

 

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Footballfirst

They are still some funding concerns, primarily from the redevelopment.

 

Benefactors again provided £2.25m with another £1m for the playing budget.

 

Bidco provided further short term funding.

 

FOH contributions are down by about 8.5%

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Prof

Very good financials with turnover well up and importantly gate receipts up. For the doubters, Anne Budge is doing a fantastic job at restructuring our club for long term viability. 

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Steve_Jersey_HMFC

Well done Dr Budge 

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Sir Gio
2 minutes ago, Coco said:

£3.25m from benefactors including £1m for player wages.  There is something not quite right with the club depending on this sort of income I fear.  Who is it from and what are they getting for it?  5 years ago this amount could have bought all the assets of the club.

 

£0.7m of short term funding from Bidco - suggests cash was tight.

 

Outside of donations roughly a £400k loss despite the big rise in turnover.

 

Presuming Levein is highest paid director - compensation rose to 178k from 141k - illustrates how it might not be easy to get a high earning manager

 

 

The money from benefactors allows us to carry on regardless of extraordinary circumstances that will be beneficial themselves and already are

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soonbe110
3 minutes ago, Coco said:

£3.25m from benefactors including £1m for player wages.  There is something not quite right with the club depending on this sort of income I fear.  Who is it from and what are they getting for it?  5 years ago this amount could have bought all the assets of the club.

 

£0.7m of short term funding from Bidco - suggests cash was tight.

 

Outside of donations roughly a £400k loss despite the big rise in turnover.

 

Presuming Levein is highest paid director - compensation rose to 178k from 141k - illustrates how it might not be easy to get a high earning manager

 

 

All will be revealed soon I suspect. 
Yes, we don’t pay our manager a lot of money in football terms and his £178k last year almost certainly included a bonus for cup final. 

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Footballfirst

The highest paid  (now ex) "director" received £178k, up from £141k.

 

Not exactly value for money.

Edited by Footballfirst

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Icon of Symmetry
8 minutes ago, allystrachan said:

Imagine what we could do if we can get the football side performing & we start selling out each week.


Plus £1.4m FoH cash on top of that.

 

:pleasing:

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Footballfirst
1 minute ago, Icon of Symmetry said:


Plus £1.4m FoH cash on top of that.

Only £1.32m last year. I suspect that contributions have fallen further since the year end.

Edited by Footballfirst

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CJGJ
6 minutes ago, Footballfirst said:

The highest paid  (now ex) "director" received £178k, up from £141k.

 

Not exactly value for money.

That would be the man who led us to a semi final and final …….money from which far exceeded his income

 

I get the point but you should also look at the full picture

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Thought Police

Budge really has done a remarkable job with the business side of the club.

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Captain Canada

Apparently we ended last season on 'a positive note'  I know I'm nitpicking but losing a cup final was far from positive in my opinion. 

 

Great financial results and fantastic to see further progress on that front while so much has been invested in the infrastructure and new signings. 

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luckydug
1 minute ago, CJGJ said:

That would be the man who led us to a semi final and final …….money from which far exceeded his income

 

I get the point but you should also look at the full picture

Indeed !

Would the extra salary not be bonuses for reaching the later stages of cup competitions ?

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Icon of Symmetry
8 minutes ago, Footballfirst said:

They are still some funding concerns, primarily from the redevelopment.

 

Benefactors again provided £2.25m with another £1m for the playing budget.

 

Bidco provided further short term funding.

 

FOH contributions are down by about 8.5%


8.5% drop is a bit concerning right enough. Sad that people felt that way. Oh well, just have to try and boost that again. 

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Footballfirst
2 minutes ago, luckydug said:

Indeed !

Would the extra salary not be bonuses for reaching the later stages of cup competitions ?

I would expect hat to be the case.  I don't suppose that there will be any clawback this year for leaving us languishing in the bottom six.  

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Irufushi

8.5% is pretty poor. I’d guess a large amount of that was levein protesters .

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EIEIO
19 minutes ago, soonbe110 said:

All will be revealed soon I suspect. 
Yes, we don’t pay our manager a lot of money in football terms and his £178k last year almost certainly included a bonus for cup final. 

Isn't that just his DoF salary? Managers salary will be hidden in staff costs pool.

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Notts1874

It's amazing how some people interpret things. We have known about the benefactor money for a minimum of two years, maybe more and have spent accordingly.

 

Great set of accounts. Turnover up. Profit posted. Only concern is the FOH drop off but since most linked that to Levein I'm sure that's already going back up.

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GinRummy
7 minutes ago, Icon of Symmetry said:


8.5% drop is a bit concerning right enough. Sad that people felt that way. Oh well, just have to try and boost that again. 


They should have an email marketing campaign and try to get the numbers up. 

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Icon of Symmetry
Just now, GinRummy said:


They should have an email marketing campaign and try to get the numbers up. 


Should definitely be trying to campaign for more one way or another.

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Newton51

How much did we get for big Laff?

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Footballfirst
4 minutes ago, Icon of Symmetry said:


8.5% drop is a bit concerning right enough. Sad that people felt that way. Oh well, just have to try and boost that again. 

I suspect that the current numbers will be worse as the first few months of the financial year saw pledges sustained at the level of the previous year before the drop kicked in, leaving an average drop of 8.5% or £10k per month.

 

It is likely that pledges will have continued to fall in recent months in line with team performances and the uncertainty about the manager's position. 

 

The bottom line is only a delay of a month or two to the transfer of the majority shareholding. 

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Natural Orders

Who are the benefactors?

 

doesn’t sit well with me relying on this 

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Cruyff Turn
3 minutes ago, Natural Orders said:

Who are the benefactors?

 

doesn’t sit well with me relying on this 

Why? The benefactors are clearly loaded and must be Jambos. 

 

It’s like having the best of both worlds, fan ownership and a sugar daddy.

 

I’m no complaining. 🤷🏼‍♂️

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Notts1874
5 minutes ago, Natural Orders said:

Who are the benefactors?

 

doesn’t sit well with me relying on this 

First name starts with M👍.

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Disco Dave
5 minutes ago, Natural Orders said:

Who are the benefactors?

 

doesn’t sit well with me relying on this 

I dont get the impression we are relying on it. They aren’t asking for anything in return so its a no lose situation from the club’s perspective.

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Bridge of Djoum
1 minute ago, Notts1874 said:

First name starts with M👍.

Maulary Martin.

 

 

Legend.

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GinRummy
7 minutes ago, Natural Orders said:

Who are the benefactors?

 

doesn’t sit well with me relying on this 


If someone offers you large amounts of money for free you take it. Imagine the criticism if it was offered and we knocked it back.

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Maroonjam
40 minutes ago, Coco said:

£3.25m from benefactors including £1m for player wages.  There is something not quite right with the club depending on this sort of income I fear.  Who is it from and what are they getting for it?  5 years ago this amount could have bought all the assets of the club.

 

£0.7m of short term funding from Bidco - suggests cash was tight.

 

Outside of donations roughly a £400k loss despite the big rise in turnover.

 

Presuming Levein is highest paid director - compensation rose to 178k from 141k - illustrates how it might not be easy to get a high earning manager

 

 

The player donation will be for players like Whelan who is only here for a year and was only signed because we can get that income. So I'm not concerned from that side as won't be an ongoing cost past 1 year. 

Short term loans / bridging finance is common and as long as it was paid back then served its purpose. 

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GinRummy
3 minutes ago, Notts1874 said:

First name starts with M👍.


Mikey Stewart.

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Bridge of Djoum
Just now, GinRummy said:


If someone offers you large amounts of money for free you take it. Imagine the criticism if it was offered and we knocked it back.

And wants nothing in return.

 

 

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Igglepiggle

Two things of note for me:

1. FoH amount dropping by 8.5%, definitely need to get this back up

2. What happens with the benefactors' donations when control is passed to FoH?

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Fourcandles
2 minutes ago, Disco Dave said:

I dont get the impression we are relying on it. They aren’t asking for anything in return so its a no lose situation from the club’s perspective.

 

Not the case, If as reported 3.25million was received from benefactors which resulted in a profit of 1.6 million then we are relying on it?

 

.

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ramrod

If I've read it correctly without the benefactors input we would have made a 400k loss and FOH contributions down 8.5% ? 

Even given the rise in turnover don't see the results as tremendous tbh . 

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kila
Just now, Fourcandles said:

Not the case, If as reported 3.25million was received from benefactors which resulted in a profit of 1.6 million then we are relying on it?.

 

How much of that is being spent on the new stand?

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Icon of Symmetry
13 minutes ago, Footballfirst said:

The bottom line is only a delay of a month or two to the transfer of the majority shareholding. 


I’m not massively concerned about that to be honest. More concerned about losing the £1.4m advantage we would have over other clubs once the transfer is made.

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Sexton Hardcastle

Budge proving the clowns wrong.

 

Again.

Edited by Sexton Hardcastle

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Notts1874
2 minutes ago, Fourcandles said:

 

Not the case, If as reported 3.25million was received from benefactors which resulted in a profit of 1.6 million then we are relying on it?

 

.

Nope. We knew the money was coming in and have spent accordingly. We ain't relying on it. It was budgeted for. Just like it will be next year.

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Bridge of Djoum
1 minute ago, Notts1874 said:

Nope. We knew the money was coming in and have spent accordingly. We ain't relying on it. It was budgeted for. Just like it will be next year.

Is the correct answer.

 

Actually, no. The titans of business of JKB know more than  a very successful entrepreneur and her advisors and other board members. 

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GinRummy
Just now, Bridge of Djoum said:

Is the correct answer.

 

Actually, no. The titans of business of JKB know more than  a very successful entrepreneur and her advisors and other board members. 


Exactly. It’s going well. Working to a budget, increasing turnover. 
 

A well run, secure, growing business at long last.

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jambobob61
11 minutes ago, Bridge of Djoum said:

And wants nothing in return.

 

 

Think of it like a marriage, you put everything in and get nothing in return!

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Jodami

It's wrong to criticise anything to do with benefactors. The fact that people are giving the club money is all down to Budge and the board and they deserve enormous credit. I have been critical on other threads about their football knowledge and recruitment methods but the job they have done rebuilding the reputation of the club and improving facilities is magnificent. Outstanding effort and they are handing over an operating company that is in great shape. 

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MoncurMacdonaldMercer
2 minutes ago, Bridge of Djoum said:

Is the correct answer.

 

Actually, no. The titans of business of JKB know more than  a very successful entrepreneur and her advisors and other board members. 

 

footballfirst seems like a poster to be listened to on such matters (plenty past evidence of folk trusting his opinion)

 

have a wee re-read of some of his posts in this thread and compare them to the other 'experts' (hint - im not referring to the "titans of business " here)

 

 

 

 

 

 

 

 

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skinnybob72

It wasn't so long ago that our turnover was <£10m - an increase of 50% in a short space of time is very impressive (although I'm aware that £3.25m came from the benefactors).

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