Quote: Mrs Barista "It means that by making profit, we've reduced our liabilities. There is nothing in the accounts to show how much of this is due to the directors, but Rule has said the directors' loans have been repaid. I'm not really sure what your point is. The directors loaned the club money. The club has made some money since and it sounds like the directors loans have been repaid.'"
My 2 points were:
1. People were saying the loans hadn't been repaid
2. How had they been repaid? Was it a reduction in stock, conversion to shares, cash injection, increased borrowing from elsewhere or from generated profits?
I'm guessing you're saying from profits generated so I was really asking if the level of profitability was equivalent to the reduction in debt which I think you've confirmed. Looking at your figures though, creditors have fallen by over £1m. Have we generated that much profit? Or is there a way of repaying debt without borrowing from elsewhere or showing an equivalent profit?
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