Kilmarnock FC's debt rises to £9.8 M

Jan 11 2013 by Craig Robertson, Kilmarnock Standard

Kilmarnock FC’s total debt went up last year despite a rise in takings.

The club are now £9.8million in the red— an increase of £83,000 from last season.

And profit for 2011-12 was just £11,384 - down from £186,597 the year before.

That comes amid a cash boost from the League Cup win and what chairman Michael Johnston described as a “wonderful year of football”.

The financial performance, to the year ending May 31, 2012, is detailed in the accounts released to shareholders.

These show the club’s turnover went up by almost £300,000 to £7.413m, a figure made up of £5.1m from footballing activities and £1.9m from the Park Hotel.

But administrative costs rose by £400,000 to a total of £6.411 million.

The spending is set out in the document over several areas. The largest proportion of expenditure is the SPL club’s wage bill for players and football staff, 64 in total, which came to £3.539m.

Across the business, there are 200 employees, the cost of which was up £100,000 to £3.868 million.

The report states that sole director Michael Johnston (left) received no emoluments during the year.

The biggest chunk of the club’s outgoings went to the servicing of bank loans and overdrafts, other loans and hire-purchase contracts.

According to the accounts, the club has net debt for these of £9.843m, a rise from £9.760m the year before.

The 2012 figure is made up of net bank overdrafts of £3.298m and debt to loans was approximately £6.5m.

The club paid £255,294 on interest and charges for the debt. That’s a rise from £140,165 the year before.

The accounts state that the bank has security over all land and property owned by the club.

Once the club’s outgoings are taken into account, they are left with a profit of £11,384 before tax.

The accounts show that a re-evaluation of the stadium was carried out, which sees it valued at £11.3million, and that the hotel has a net worth of £4.442m. Added to the value of other items such as fixtures and fittings, the total net value of the club’s fixed assets is £15.871 million.

The accounts will be put before shareholders at an AGM on January 24.