The “Chairmans’ Chat” is intended to be a quarterly initiative, recently introduced by Chairman Jon Hale, in response to criticisms voiced by some shareholders at the last AGM.
Specifically, the lack of communications / consultations in relation to changes introduced by the HFC Board, particularly during Rob Crawford’s period as Chairman. In contention were a number of specific “grievances”. These included bringing the AGM forward at short notice, this was subsequently changed following shareholder representations. Secondly, the requirement for all questions at the AGM to be submitted in advance, and finally the withdrawal of a previous privilege, initiated in 2015-16, which was the inclusion of a copy of the “Profit and Loss account” with shareholders AGM documentation.
The meeting was held in the HFC Boardroom last Saturday after the match against Alfreton.
In Attendance
Jon Hale (HFC Chairman) together with Directors Mike Langford, Joanie Roberts and Tony Taylor, with General Manager Jamie Griffiths and Team Manager Josh Gowling. The Chairman offered apologies for absence on behalf of HFC Financial Director Peter Churchus for a reason explained to the meeting.
A number of HFC shareholders were in attendance, including HUST Chair, Richard Tomkins.
The Chairman addressed the meeting, thanking those present for attending and he repeated that the subject of “communications” arising from discussions during the previous AGM, was the reason he had initiated the quarterly meeting with shareholders and he went on to update shareholders.
The following is to be regarded as a resume of his address and not a verbatim record.
1 The Board are forecasting a six figure loss, for the current financial year, and this was reported as due to the following:
A: Match attendances lower than forecast due to the continuing effects of Covid
Poor start to the season on the pitch
Loss of “high revenue” matches over the festive period
Players costs exceeded budget due to additional players required to cover injuries.
B: The initial costs of bringing the bars “in house” had exceeded that originally anticipated.
C: Increase in admin staff and associated IT costs.
D: Essential building repairs undertaken to the entrance into Radfords bar.
E: A dispute with the previous ticketing system provider, forced a change very recently. Going forward costs will be reduced.
F: The Chairman thanked HUST for their continued fund raising and the £20k handed over this season in return for shares.
2 Looking forward to next season Hale said that the club cannot forecast crowds higher than this season and the assumption will be that the team is eliminated at the first round of competitions.
The Board are committed to providing the same playing budget for next season. This is to be achieved by increases in match day ticket prices. Current season ticket price will remain except for the increase to cover two additional home matches.
A 'Squad Builder 22/23' fund has been
launched to try and increase the playing budget. Anything over £25,000 raised
will go to the playing budget. So if £50,000 is raised the playing
budget will receive another £25k.(BN has asked for clarity on this point)
There will be a new playing kit for next season and it is to be hoped this will increase income from shop sales.
Stadium Fest will take place early in June this year and in May next year.
The HFC Board are confident about their plans but because of the lack of reserves there is a need for caution about commitments made to players and the need to take account of the possible decline in attendances during the season.
The Board will review the 'Squad Builder' campaign, similarly, if season ticket sales are better than forecast then the board will review budgets to enable manager Josh Gowling to recruit the best possible squad to for next season.
Hale made the point that it is in the hands of supporters to give an early indication of their support for next season and that the level of support will determine the squad we will see on the pitch when the season starts.
From the floor a question on the success of the 'Squad Builder' fund to date, the Chairman replied from the last count it was about £4,500.
PR will be increased in respect of the 'Squad Builder' fund. Gowling suggested the club made a video to promote it.
From the floor discussions around this point included the possibility, given recent RPI and NI increases, plus increased energy costs, that any increase in admission prices may be counter productive.
Hale acknowledged the point and repeated that no final decision had been taken and the board will continue to review the ticket pricing options.
In terms of protection, at least 50% of the budget must be allocated to non- contracted players but adjustments could be made subject to income.
Hale again repeated that it is in the hands of supporters to support the club if it is to survive and succeed.
From the floor it was stated that nine years ago fans didn’t have a club to support, people have very short memories, without supporters through the turnstiles it is going to be very difficult for the club to move forward.
4 The 2022 AGM is to be held on 13 Oct 22, and close to that date in future years. The Chairman confirmed that the previous requirement for all questions to be submitted in writing and in advance of an AGM would be discontinued. However, advance questions are welcome and will ensure a comprehensive and accurate reply.
5 The Chairman repeated the need to support the playing budget as much as possible with contributions to the clubs 'Squad Budget' initiative. This had proved very successful with other clubs (Chester FC was one club identified) raising considerable sums of money. Assurances were repeated that every penny donated would be added to the playing budget.
6 HUST Chair Richard Tomkins asked, given the losses of last year and an anticipated similar loss for the current year, was the Chair able to inform the meeting the state of current cash reserves? The Chair replied he did not have an accurate figure to hand.
7 From the floor a question was raised about whether the HFC Board had reconsidered their decision not to provide shareholders with a copy of the “profit and loss” account given this had been accepted practise from the first set of accounts in 2016 until two years ago. The Chairman replied that the board would not be changing the decision.
8 From the floor a question was raised about the current lease on the stadium.The Chairman confirmed there were no discussions taking place with Herefordshire Council in relation to the lease to the stadium at the present time.
9 Another question asked about recently announced funding from the Premier League. Taylor made reference to the current ground improvement grants associated with the Premier League. Apparently, any bid, would need to be submitted before the end of the season and would require a significantly longer lease than HFC have at present. Therefore, an extension is unlikely to happen before the end of the season so, in his view, “before we get to a Board meeting, it looks a bit of a dead duck”.
10 The Chairman closed by drawing specific attention to the work and dedication of General Manager Jamie Griffiths who had integrated well into his new role and was proving to be particularly effective. He was to be congratulated on his achievements.
The meeting ened at 6pm.
BN would like to thank several shareholder for their help in producing this report.