Quote: Sal Paradise "I would imagine these transactions relate to the genesis of whole formation of the Tykes - you know like I do that a set of accounts tells us what the issuer wants us to see. Especially for private limited companies - disclosure requirements are pretty minimal. '"
They are however there are still only limited ways one can fudge between two related companies without it being disclosed in the related party note.
Quote: Sal Paradise "I am not for one minute suggesting anything improper has taken place only that the need for Caddick to support the Tykes appears to have wained in recent years - which is the point I made in the original post, something you have also agreed is probable.'"
I have? Given Leeds RUFC Ltd has sod all in the way of fixed assets or long term liabilities or provisions, the timing difference between losses and cashflows is probably quite small. Therefore the losses being made are likely to be a decent approximation of the amounts the benefactor has been required to stump up.
The company has made the following pre tax losses (ignoring Caddick etc loan write offs and Leeds Met subsidies)Nah, going concern would be boxed off from an audit point of view by a letter of support from Caddick Group plc, as disclosed in the Going Concern policy. The cash was transferred presumably because Leeds RUFC Ltd had spent all theirs and needed it to pay the bills!
If I were auditing this lot I would ask why Leeds CF&A Ltd haven't provided against the £1.7m owed at their year end by an insolvent company. Since that hasn't been the case my guess is that Caddick group has provided guarantees to PKF that Leeds CF&A will not lose out either way and provision has therefore instead been made in Caddick Group plc; not sure how that would stack up but it's the only way I can see provision being avoided in the Rhinos' accounts.
Therefore rather than anything sinister, Leeds CF&A are just the chosen instrument from whence the cash comes this year. i.e. this is a supporting transfer of cash, not a subsidy (but will interest be paid on the loan....?)
Quote: Sal Paradise "GH ringing season ticket holders who hadn't renewed'"
That kind of thing has been going on for years - never get a phone call from Barrie Mac?
Quote: Sal Paradise "the sacking of the RU bods due to potential lack of funds '"
I doubt Caddick actively [ienjoys[/i ing his cash into the wind so perhaps pruning of this loss making venture is a good idea?
Quote: Sal Paradise " the scaling back of the southstand development'"
Wait and see what happens on that one, GH is playing a multi-sided game of chess between the planners, local residents and fans.
Quote: Sal Paradise " and the lack of recruitment in the RL side.'"
So you say.
Quote: Sal Paradise "On December cash - I would say Leeds have 9,000 season ticket holders with half being kids so £1m - however how much of the renewals is done before Xmas especially those with kids? I would suggest corporate sponsorship and sky monies represents a far bigger revenue stream and it is unlikely that money will come in before the start of the season. Add to that revenues from games which will be 250k a game minimum and I would suggest December cash balance will be quite low compared to March to September?'"
It's hard to say without asking to see the books but I would note that the first year the company had an October year end Accruals and Deferred Income was £1.1m whereas the last time it was a December year end (the previous accounting period) the equivalent figure was £2.7m. This perhaps gives some indication of the level of pre calendar year end renewals.
