KPMG issues going concern warning on Liverpool FC
Football club's parent company suffered a £42.6m loss last year
Football club's parent company suffered a £42.6m loss last year
Liverpool FC’s parent company has been warned about it ability to trade as a
going concern by its auditors KPMG, and told it needs to refinance its £350m
debt before 24 July.
KPMG issued a going concern statement in its audit of the Kop Football
Holdings which owns the club.
Co-owners George Gillett and Tom Hicks are negotiating a refinancing deal
with Bank of Scotland. Another option could be equity financing.
‘The group has credit facilities amounting to £350m which expire on 24 July
2009. The directors have initiated negotiations to secure the replacement
finance required by the group and these negotiations are ongoing,’ said the
statement.
‘These conditions, along with other matters explained in note 1 to the
financial statements, indicate the existence of a material uncertainty which may
cast significant doubt on the group’s and parent company’s ability to continue
as a going concern.’
The warning came with the news that Kop Football Holdings suffered a £42.6m
loss last year. But Liverpool itself produced a record turnover of £159.1m for
the year ending July 2008 and a net profit of £10.2m.
The holding company is in the red due to interest payments on the debt it
amassed in order to buy the club in February 2007. Interest payments accounted
for £36.5m of its losses.
More about:
The numbers you crunch tell a story. Your expertis...
15yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleKPMG was initially fined £30 million, but the penalty was subsequently decreased by 30% due to its cooperation throughout the five-year investigation ...
View articleAfter cooperating with the inquiry, the firms and partners received a reduction in fines Read More...
View articleThe FRC has said the admitted failings were "rudimentary and should not have occurred" Read More...
View articleKPMG's settlement of the £1.3bn legal claim highlights longstanding weaknesses in the audit sector, experts say Read More...
View articleThe big four auditor is being penalised for “conspiracy to corrupt and a failure to prevent bribery” Read More...
View articleThe sanctions relate to the firm’s audit of Conviviality PLC between 2017 and 2018 Read More...
View articleAudits for Eddie Stobart’s 2017 and 2018 accounts found errors dating back several years Read More...
View articleThe FRC has fined KPMG UK £700,000 and reprimanded KPMG UK’s former senior partner for Manchester, Nicola Quayle for a “failure to apply sufficient pr...
View article