Some of the documentation connected with Hereford United's proposed CVA was released today. Here's a brief look.
The proposal contains over 50 pages worth of facts, figures and explanation.
In essence the reasons for the proposal is that 'it aims to preserve the business of the Company and provides for full repayment of all creditors'.
The current majority shareholder is Scrooby Ltd which is owned by Thomas Agombar Snr. Agombar is said to have wanted to be a 'Football Director like several of his friends'.
Agombar said he knew nothing about development potential at Edgar Street until he 'overheard' a telephone call during negotiations to buy the shares.
A meeting was arranged with the 'main fan reprersentaives, but the directors did not attend because they were told the fans would not be there'.
A cash flow projection has been prepared. The main assumptions are:
200 season tickets will be sold
500 to 600 other tickets will be sold on match days
Several large companies are interested in sponsorships. 'The amounts being discussed are in excess of £250,000'
Profits appear low at the 'several bars and meeting areas'
Website should be drawing more advertising income
The proposal confirms £20K has been lodged with the Southern League
There follows a section about the Football Creditors. They total £126K and have 'already been made' or 'are due to be made' by Mr Agombar.
In the non-preferential creditors section there is confirmation that Scrooby Ltd, another of Agombar's companies took on' the amount due to Mr Keyte.' This is stated to be £262,570.
Other loans include one from Jabac Finance Ltd of £75,000
As regards how the creditors will be paid it appears the first payment, of £86,545, will go to the Nominee and Supervisor's fees on September 14th. In essence it is said this is because of Southern League Rules which state the the first payment has to be made within 28 days of the approval of the CVA. However this money will need to be found by Agombar who will then claim it back as a creditor.
The toal amount to be paid back assuming the CVA goes ahead is stated as £931,305. However this figure is not definite as claims are still being examined.
To July 25th, Agombar's Athelston Ltd has paid out £79,815 including £2500 to David Keyte for staying on as a non excutive director for one month.
There are about 100 creditors and 715 shareholders.
The estimated deficiency is £1,412,369.
The amount of share capital is £473,008.
An estimated cashflow projection for the coming season suggests income of £1,033,900.
Season tickets £29,000
Turnstile Sales £158,000
Sponsorship £250,000
Programme Advertising £23,000
Programme Sales £23,700
Suite Revenue £492,000
Corporate Hospitality £38,200
Return Of League Deposit £20,000
Expenditure:
Wages £129,000
Office Wages £86,400
PAYE/NI £53,850
Grounds Maintenance £18,000
Travel To Away Games £9,200
Medical Equipment £1,800
Stewards £1150
Club Secretary £23,400
Rent and Rates £49,992
Electric/Gas/Water £34,200
Bar Costs £319,800
Telephone £4,200
Programme Costs: 16,590
VAT Payable £56,410
Net Profit To CVA equals £216,000