Season 2013-14 » Opinion » Fan Articles Annual Report & Accounts 2013 By Joe Beardwood 30/01/2014 Comments (34) jump Shareholders today received the report and accounts for 2013 - now an 80 page book compared to the 32 pages from previous years. Turnover is up to a record £87m yielding a net profit of £1.6m. The accounts continue to highlight the dependence on player trading with a £15.6m profit for the year against £14.1m in 2012 and the combined £26.4m profit on player trading in 2010 and 2011. Summary Attendances were up by nearly 10% and gate receipts recovered to the 2011 level of £17.5m Overall turnover was up to a record level of £86.4m (an increase of 7.3% on last year), helped by a £2.2m increase in commercial revenues and £2.9m increase in media. Earnings before interest, tax, depreciation and amortisation (EBITDA) BEFORE player trading was £1.5m – and with player trading included this figure was £17.1m EBIT excluding player trading showed a £9.8m LOSS against the £19.2m LOSS in 2012. Interest paid by the club on loans was £4.2m Overall Profit before Tax was £1.6m – the first profit declared since 2005, and compares to the overall loss of £9.1m in 2012. Cash flow before investment was £313k negative and before financing £339k negative although overall cash flow was positive at £8.7m due to the addition of a new loan of £10m Net debt remains at just over £45m The overall company balance sheet shows net liabilities of £42.7m and compared to the net asset position of £434,000 in 2005. The wage bill remains unchanged at £63m Click for 5-year view [PDF] Share this article Reader Comments (34) Note: the following content is not moderated or vetted by the site owners at the time of submission. Comments are the responsibility of the poster. Disclaimer Shane Corcoran 1 Posted 30/01/2014 at 16:29:21 It's so difficult to read all of this at work and I haven't had time to read the notes but one part that everyone should be worried about is the Creditors Due Within One Year.I'll dig a little deeper later. Linda Morrison 2 Posted 30/01/2014 at 16:49:02 Shane is the Creditors due within a year the bank? Shane Corcoran 3 Posted 30/01/2014 at 16:57:54 Linda it's broken down as follows:Bank Overdraft £2,312,000Bank Loans £19,836,000Leases £44,000Trade Creditors £6,455,000Tax Man £8,127,000Accruals & Deferred Income £21,648,000My next point is I have no idea what the £21.6M accruals and deferred income is. Ajay Gopal 4 Posted 30/01/2014 at 17:04:21 2 things that stand out for me: (1) Debt ('Net Current Liabilities') remains stubbornly high, hardly a dent.(2) Purchase of players is more or less funded solely by sale of players (15099 outgoing players - 14526 incoming players). That is why the loan & academy strategy seems to be the only way forward at the moment, until the new TV deal kicks in. However, taking into consideration that a number of players have been sold (Fella, Jela, Anichebe) this year against fewer player purchases this year, I expect that there would be small 'war chest' available to Martinez this window or the next.Hmmm.. not as great a financial report as I was hoping to see. I expected to see a big drop in the debt situation, or will we see that in the next year?NB: To those who say that BK & the other shareholders have not invested a single penny beyond the purchase price, the shareholders have seen the value of their investment reduce by 70.748 million, which they would have to write off from their personal guarantees were the club to 'go under' tomorrow - not that there is much chance of that happening, hopefully! Wayne Smyth 5 Posted 30/01/2014 at 17:26:20 My gut feeling is that creditors due within 1 year are mainly composed of player/staff salaries for the next 12 months. Shane Corcoran 6 Posted 30/01/2014 at 17:32:04 Wayne, it's detailed in Note 15 and in my post above. Patrick Murphy 7 Posted 30/01/2014 at 17:30:28 As Shane pointed out that Creditors due within a year figure circa £58m would I assume have to be paid before end of May this year and that is what the surplus of money received from transfers will go towards paying? Lyndon Lloyd 8 Posted 30/01/2014 at 18:05:36 Patrick, I believe the bulk of that figure, which has grown by about £7.5m over the last 5 years, is, I imagine, serviced by the rolling credit facilities that we hear about every year. David Chait 9 Posted 30/01/2014 at 18:24:44 Silly question but can some please link to the financials... I would like to read the detail – and for the life of me, I can never find them on the official site. Patrick Murphy 10 Posted 30/01/2014 at 18:32:19 Thanks Lyndon, I can add and subtract but accounts no matter how simple people say they are always provide a challenge for me. Denis Richardson 11 Posted 30/01/2014 at 18:51:57 Shane - would deferred income not be made up mostly of cash received last year for early season ticket sales for this season. I.e. its not really a true liability as as soon as this season starts it goes away (then to be repeated next April/May again etc).As for the bank loan due within a year, we have a history of taking out loans most years to repay other loans, so presume these will be rolled over again.To be honest I'm surprised we made a profit but was not expecting a massive improvement on the debt side. However, this years' accounts should be much much better due to the increased TV money (about 20m!) and the sales of Fellaini, Anichebe and Jelavic, all for a massive profit as well as getting Moyes, Neville etc off the wage bill. Moyes alone was 4m a year!Club's been temporarily saved by the sky money, hopefully we won't piss it all away on a huge increase in players wages. Ian Bennett 12 Posted 30/01/2014 at 19:08:34 Accruals and deferred income, will be cash that we have received ahead of when it will be recognised. Think kit bag or Chang giving us £9m up front for the next 3 seasons. £9m in the bank, but we see through £3m going through revenue for each year for the 3 years. The deferred entry on the balance sheet is hooking up those future amounts. Or it is amounts we have incurred like player loyalty expenses but have still have yet to pay in cash terms. I.e. League position bonus. The players will be due it, but we might not have paid at the year end. I.e. After 31.5.2013. Large creditors like these can be seen as bad. Let me explain. When they are paid, the overdraft will increase. If it is deferred income, Chang, then giving us cash up front, will probably mean the overall deal is discounted. The above sounds a bit washy washy. However the balance sheet will be dictated by good cash flow management and meeting the terms of the loan covenants etc. Anyway, results are better than I expected. The big question for me, is where's the arteta money, bill, and how many lawnmowers have we got now.... Ian Bennett 13 Posted 30/01/2014 at 19:22:15 Sorry Dennis, yep season ticket sales ahead of 2013/14 will be the bulk. Keeps the reported overdraft in a lot better health. Graham Mockford 14 Posted 30/01/2014 at 20:02:44 Good summary as ever Joe.You are the Joe Beardwood that was at the Co-op for a time? Robin Cannon 15 Posted 30/01/2014 at 22:55:50 Really highlights my biggest concern.We don't, relative to a lot of other clubs in the Premier League, actually have particularly high debts.But we still don't seem to be doing anything other than simply servicing them. Our debt level never actually decreases; and it's a continual weight around the neck of the club.While I appreciate that our revenues aren't massive compared to some other clubs, if we never do anything other than service the interest payments then we cripple ourselves long term. Jason Heng 16 Posted 30/01/2014 at 23:42:20 The interest we pay every year is worth a decent player every time. Mark Taylor 17 Posted 31/01/2014 at 00:16:05 Ajay 188I don’t think the shareholders are down £70m. At least half of that could be recouped by selling Barkley whose asset value in our accounts is virtually zero. I think the rest of Everton FC squad might be worth rather more than £30m, no?There’s no news in these accounts. They are the accounts of a board who are happy for upper mid table finishes and a relatively steady ship till a buyer comes along. If they cut the price they want )allegedly around £150m), maybe they’d finally have a taker and still make a small profit…. Adam Fenlon 18 Posted 31/01/2014 at 01:08:03 David Chait it is at http://www.evertonfc.com/ Eric Myles 19 Posted 31/01/2014 at 04:32:39 Ajay, it is the board that is responsible for any perceived loss of value of their investment, but considering they only paid £20mn for their shares they will not lose any money as they have put none into the Club. Phil Walling 20 Posted 31/01/2014 at 08:43:55 These sort of results repeated year after year should be good enough to see Everton remain in the Prem until the twenties and Bill, Woods and Earle through to old age. Carter has already reached it.A bright future for all is in prospect. Phil Johnson 21 Posted 31/01/2014 at 10:19:43 Can anyone explain what the new loan of £10 million is. I understood that we took a new 1 year loan out each year to provide working capital however looking back we did not take any new loans last year and the 2 years preceding that were only 5 million and 9 million. Shane Corcoran 22 Posted 31/01/2014 at 10:35:47 Gradually making my way through the accounts and you will see in Note 16 (the narrative part) that since the accounts were published the Club have made a total repayment of debt of £ 15.635m.That will explain where a lot of the Fellaini/Anichibe money has gone.Phil, where do you see this new £ 10m loan? Shane Corcoran 23 Posted 31/01/2014 at 10:38:57 Scratch that, the loan that was repaid was replaced by a new one. Linda Morrison 24 Posted 31/01/2014 at 10:38:41 Shane, I read a report in yesterday's local press that the accounts did not include sales of players Fellaini & Anichebe. When I read that it explains somewhat to me why Roberto is talking about having no money worries about adding to the squad in the summer. Patrick Murphy 25 Posted 31/01/2014 at 10:38:43 Shane it is in 6 lines up from the bottom of the OP. Patrick Murphy 26 Posted 31/01/2014 at 10:44:47 But Linda according to somebody on the other Accounts thread the balance between players bought and players sold during the last window is only circa £5m profit - which may mean that the loans of Barry, Lukaku and Del Boy have not come cheap. Although these figures are not included in the published accounts the details have been included in Note 24 I think it was. Shane Corcoran 27 Posted 31/01/2014 at 10:45:46 Linda, that is what we hope and the notes in the accounts do seem to suggest that the bank repayments shouldn't eat significantly into it.I just wish he'd spend some today. Shane Corcoran 28 Posted 31/01/2014 at 10:54:03 Joe Beardwood, can you tell me where the £10m new loan on the Cash Flow is taken from? Bobby Thomas 29 Posted 31/01/2014 at 19:04:55 I think more than likely it will be the Vibrac loan from the BVI Shane, seems a permanent fixture now. Bobby Thomas 30 Posted 31/01/2014 at 19:58:16 We have got to do something, sooner or later we have got to progress the club. As things stand, with this board, in the ground as it is, this is as good as it gets for us. And if this, below, comes off, can you imagine what things will look like and what the reality will be. Our ground, as it is, and a redeveloped 55k over the road with a shitload of corporate? Game over.http://www.telegraph.co.uk/sport/football/teams/liverpool/10607548/Liverpool-aim-to-submit-planning-application-for-Anfield-redevelopment-before-end-of-season.html Amit Vithlani 31 Posted 01/02/2014 at 12:59:24 Thank you Joe, excellent summary. Michael Kenrick 32 Posted 01/02/2014 at 17:48:54 This statement by Paul Roberts caught my eye, not least because oit was off topic on the other tread: "The best news of the week was about our balance sheet." Can you elaborate a little bit of that, Paul? Our financial situation doesn't look that different from recent years, although some things seem to be ge continually getting worse. So how come it's "The best news of the week"??? Please explain. Amit Vithlani 33 Posted 01/02/2014 at 18:45:05 Paul Roberts says "the best news of the week was about our balance sheet". Eh? I must be reading a different set of accounts but from what I can see, we are still £45m in debt and are borrowing from Peter to pay Paul (overdraft reduced by borrowing from other sources). Paul Roberts 34 Posted 02/02/2014 at 16:08:27 This is great news. Put in context with virtually every other PL club, it shows that careful management leads to stability. Add Your Comments In order to post a comment, you need to be logged in as a registered user of the site. » Log in now Or Sign up as a ToffeeWeb Member — it's free, takes just a few minutes and will allow you to post your comments on articles and Talking Points submissions across the site. 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