The last three seasons have seen losses reported of £185k, £185k and £600k despite the team delivering exceptional league success. The year ending in May 2014 suffered as a result of poor distributions from the SPFL due to a lack of sponsorship, little income from cup competitions and a significant medical bill (12 player operations) according to the two page report made available to shareholders.
Leeann Dempster and Stuart McCall were thanked for their service before the report focussed on the state of club finances. The familiar tale of this season’s poor cup form and the “realisation that a top 6 league position was highly unlikely” combined with reduced season ticket and commercial revenues made it clear that a fresh injection of funds was needed.
The Well Society’s discussions with Les Hutchison resulted in “a sizeable, interest free loan to the club” to help in the transfer of the club from John Boyle to the Society. John’s shares were sold to Les for £1 and the club has since received a loan of £650k “repayable (to Mr Hutchison) in bi-annual instalments with the final amount payable in December 2019).
Now that John Boyle’s ownership has ended the board expressed grateful thanks for his support over the years and urged everyone who loves the club to engage as we move to “real community ownership”. The club still has a loan of £340k from Mr Boyle and that debt is also to be repaid by 2019.
The accounts reveal a disappointing drop in gate receipts, down from £1.7M in 2013 to £1.3M in 2014 and a £100k drop in money from UEFA. Transfer income rose to £300k last year and in July 2014 a further £145k was received. (presumably some of that followed Murphy’s move to Sheffield United in January 2013 but the rest is a mystery....)
One final line of interest appears in the notes to the accounts, “An agreement was reached with Mr Boyle which will see him explore and manage the possibility of developing land held by the company in exchange for a set profit share % on any successful outcome”. It looks like a relationship with the former owner will continue.