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HUST RESPONSE TO INFORMAL SHAREHOLDERS MEETING HELD ON FRIDAY 29th SEPTEMBER 2023
HUST welcomes the
Football Club’s attempt to disclose more financial data to its
shareholders. We thank the Club Chairman, Chris Ammonds, for his candour
and new approach.
HUST acts as guardian
of 289,000 shares in the Club and is its largest shareholder. We take a
view on that basis. One of our key roles is to hold the Club accountable
for its actions and we need to voice our grave concerns for the future
viability of Hereford FC.
The reported pre-audit
loss of £45,000 for 2022-23 comes on the back of an excellent FA Cup run
which, even if we believe the stated figure of generating an additional
net £81,000, would have again delivered a six-figure loss. Large
deficits, three years in a row, gives rise to why HUST tabled over 30
questions to the last Club AGM, in January 2023 (for which we did not
receive satisfactory answers at the time).
HUST welcomes the
initiatives the HFC board has implemented to cut costs. Reducing the
total team budget for the 2023/24 season by approx. £100,000, plus an
additional estimated efficiency saving of £30,000 across the business, is
an excellent start.
Given the substantial
losses incurred to date, we applaud the turnaround to bring the Club into
balance. However, our concern remains that the Club is “at risk” due to
the lack of reserves and another loss in the current year will result in
the Club running out of free cash by April 2024. We call on the Club
to do more.
Based on the
information provided at the meeting, we insisted there be more frequent
and timely updates on Club finances, in light of the totally unacceptable
loss of £628,000 in the past 4 years. We are heartened that both
the Chairman and Finance Director promised more open financial reporting.
Something HUST has been pushing for, for some time now.
HUST will continue to
campaign for full accountability on behalf of ALL members, Bulls
supporters and other stakeholders, to push the Club to deliver:
1) A promised savings
plan
2) A minimum forecast
surplus of £45k - £50k for season end 2023/24
3) Transparency with
regular updates on finances and to be upfront about any situation that
challenges a return to the above surpluses
We now call on all supporters
to do what they have always done best. We all own a piece of Hereford FC
so let’s get behind Paul Caddis and the team and keep day to day monies
flowing into the coffers. Supporters have worked hard to keep football at
Edgar Street. There can be no doubt that we are living through times of
uncertainty both socially and economically. Football is not immune to
these outside events. Our Club must not be allowed to falter now.
The FA Cup win over
Cambridge City on Saturday was an uplifting start to move the Club
forward and unite fans. Another home draw in the next round against
Rochdale FC, is a positive step in the right direction.
HUST Chairman Richard
Tomkins said, "At such a critical time for the future of Hereford
FC, this home match against ex Football League opposition is as exciting
as it gets! We played out some real crackers against 'Dale in the old
days. So come and support the Bulls and let's generate a special Edgar
Street atmosphere!"
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