City made a loss of £ 2,237,719 in season 2018-19 compared to a loss of £ 1,089,485 in 2017-8 (13 month period). The primary reason for this is a huge increase in wage costs from £K 4,429 to £K 5,334 an increase of £K 905 (20%.) There was a much smaller increase in sales income from £K 5,285 to £K 5,390,an increase of £K 105 ( 2%).
The training ground cost so far has been capitalised, and there has been no depreciation charge so far, so having no impact on the profit and loss account.
The liquidity position of LCFC is a concern at the year end with net current liabilities showing a negative figure (£k 2,236) .This has been subsequently partly financed by large new investment in the current season. The club has also relied as a source of finance ,the use of part of the following campaigns season ticket money, both last season, and I would argue, a knock-on effect to the current one.
There was a cash outflow of £K 1,937 for the year,even though there was an injection of £K 1,206 from new share investment.This cashflow figure has been adjusted for the £K 2,300 held by Impfinity at last year end.While this technically was a debtor,I have treated this as cash for this analysis,which for all intents and purpose it is. In addition to the underlying trading loss,the biggest cash outflows were £K 1,313 on fixed assets. This includes £K 546 on players (Transfer fees/signing on fees ect ). Also included is £k 767 on other fixed assets which includes another £K 514 on the training ground as well as £K 253 other assets.
The Board is trying to reduce the wage bill in an attempt to reduce the underlying loss. This includes the recruiting and development of younger players that can be sold on for a profit