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Venky's make Rovers financial promise

Venky's make Rovers financial promise

Rovers owners Venky's have given assurances over the future of Blackburn Rovers after some rather alarming financial figures were recently published.

An annual balance sheet was published showing that a pre-tax loss of £18.6 million was made during the last year, most of which was under Venky's reign, which represents a huge increase of just under £17 million compared to the previous year in the loss department.

Furthermore club debt is up to over £26 million which is high considering the revenue streams available at Rovers and with the wage/turnover ratio still standing very high at around 85% the figures are not for those with a nervous disposition.

But despite all this, the Indian owners have re-iterated their desire to fund Rovers and provide financial backing as and when it is needed.

A club statement reads - "As part of the directors` assessment of going concern they have prepared detailed cash flow forecasts for 18 months to the end of June 2013."

"These forecasts indicate that the company will require significant funding in addition to the current facilities available to the club.

"The amount of additional funding required will be dependent on the net proceeds of any player trading and availability of bank facilities. (Ed - Basically try and make a profit off the selling of players which is a bit of a cop out.)

"In view of this the directors have received confirmation from the ultimate parent company (Venkateshwara Hatcheries Pvt Ltd) that it has sufficient funds and is willing to provide such additional financing as may be required.

"The company is currently operating within its facilities provided by Barclays, which are due for renewal on June 30, 2012.

"The directors have started discussions with Barclays regarding the renewal of these facilities when they expire and based on these discussions the directors are optimistic these facilities will be renewed on acceptable terms and conditions."

A LOT OF WAFFLE in that statement.

It is however getting to the stage where Venky's need to stop rinsing their credit agreement/bank facilities and put their money where their overly keen mouth is spouting.

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Writer:Mikey Delap
Date:Tuesday December 27 2011
Time: 10:02AM

Comments

0
"Such additional funding as may be required" is utterley meaningless. There's not an ounce of comfort in this statement. Forget the manager - Venky's need to go for Blackburn to survive. And until they go we are sliding in only one direction.
petfel
27/12/2011 11:26:00
0
Mikey, you have omitted to mention that the Venky's have already put in a further £10 million in addition to the purchase price through buying un-issued shares. I'm not criticising your report, just setting the record straight.
Ewoodrover
27/12/2011 14:25:00
0
Ewoodrover - thanks dude good input :)
Mikey Delap
28/12/2011 09:24:00
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