Morecambe Football Club post Â£830k loss
Morecambe Football Club has posted an Â£829,832 loss in the 2014/15 financial year '“ almost double that of the previous 12 months.
Shrimps directors described the loss as “disappointing” after publishing the club’s 2014/15 accounts.
In 2013/14, the club posted a loss of £445,465 and in 2012/2013 a loss of £793,776.
A plan is in place to reduce costs and the directors hope to break even by the end of May 2017.
The directors say that a reduced loss will be achieved through additional income from the Football League and cost-cutting. The 2014/15 loss was blamed on no repeat of the money-spinning Capital One Cup run of 2013/14, when the Shrimps gained a lucrative TV match with Newcastle United.
There was also a planned rise in player wages in 2014/15 and the cost of terminating player contracts at the end of the 2015 season.
The directors hope a new office block and hotel, dependent on new investment into the club, would bring the company into profit.
Financial projections are based on the club’s receipt of a bridging loan of £180,000 before May 31 and the need for an additional short-term bridging loan of £200,000, as well as “the negotiation of a satisfactory repayment profile of other sources of finance received.”
The £200,000 loan had not been finalised as accounts were published but the directors were confident talks would be concluded by the end of July 2016 “with a positive outcome for the club.”
Mark Dixon, general manager, said in the report: “The company has traded at a loss during the year and has been reliant on the support of the directors in providing loans to maintain cash flow of the business.”
On March 8 it was announced the club was for sale and the club say there has been a “very positive” response and discussions are ongoing with a number of interested parties.
Mr Dixon said in the report: “Directors have a reasonable expectation the company will have adequate resources to continue in operational existence for the foreseeable future and continue to adopt the going concern basis in preparing the reports and financial statements.”
The Visitor approached Morecambe Football Club for a statement but they did not wish to comment.