GFC Holdings Ltd restored to Companies Register | Vital Football

GFC Holdings Ltd restored to Companies Register

Wayne.Kerr

Wayne.Kerr

Vital Champions League
The group consists of three companies: GFC Holdings [parent co]; GFC Ltd and Priestfield Developments Ltd. Plus, there is the associated compny Priestfield Developments Ltd owned jointly by Scally, Quarrington and Anderson. Gillingham Football Club Ltd is owned roughly 75%[?] by GFC Holdings and 25% by fans and the public at large. GFC Holdings is wholly owned by Scally.

According to the financial statements as at May, 2017, the GFC group has a negative net equity of almost £6m made up mainly by a bank loan from Barclays £9.05m; Three Directors Loan £1.8m and Creditors and director's loan £1.6m offset by intangible assets [goodwill etc] £1.5m, net book value of stadium etc £4.2m and a debtor of £1.5m [presumably amount due from Centerplate].

Priestfield Developments Ltd was struck off the Register voluntarily; so, it's unclear as regards which company now 'owns' the £9.05 bank loan.

The group is mortgaged to the hilt and is running up a significant annual interest expense.

Gillingham Football Club is more or less running on an even keel due in part to revenue supplemented by player sales. The football club does not bear the cost of loan interest.

So, selling Holy for £12m would make a huge difference but, as we know, it's pure speculation.
 
Wayne.Kerr said:
The group consists of three companies: GFC Holdings [parent co]; GFC Ltd and Priestfield Developments Ltd. Plus, there is the associated compny Priestfield Developments Ltd owned jointly by Scally, Quarrington and Anderson. Gillingham Football Club Ltd is owned roughly 75%[?] by GFC Holdings and 25% by fans and the public at large. GFC Holdings is wholly owned by Scally.

According to the financial statements as at May, 2017, the GFC group has a negative net equity of almost £6m made up mainly by a bank loan from Barclays £9.05m; Three Directors Loan £1.8m and Creditors and director's loan £1.6m offset by intangible assets [goodwill etc] £1.5m, net book value of stadium etc £4.2m and a debtor of £1.5m [presumably amount due from Centerplate].

Priestfield Developments Ltd was struck off the Register voluntarily; so, it's unclear as regards which company now 'owns' the £9.05 bank loan.

The group is mortgaged to the hilt and is running up a significant annual interest expense.

Gillingham Football Club is more or less running on an even keel due in part to revenue supplemented by player sales. The football club does not bear the cost of loan interest.

So, selling Holy for £12m would make a huge difference but, as we know, it's pure speculation.
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Wa
 
I thought last times Scally faced the shareholders he said this figure had been written off. I was there but cannot remember what he said word for word though.
 
Billy Goatham said:
Wayne surely you must know that most people on this forum deny the existence of the 9.05m loan ??!!
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That's up to them but, unless the accounts are wrong or Barclays have forgiven the loan, it's a reality. Now, I realise that the accounts only go to May, 2017 but, had the loan been discharged since then and seeing as those accounts were only published recently, there would have been a post-balance sheet event noted in those accounts.
 
wxgill said:
I thought last times Scally faced the shareholders he said this figure had been written off. I was there but cannot remember what he said word for word though.
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Why is that not reflected in the financial statements? I think the words 'wool' and 'pulling' come to mind.
 
Is the debt, if it is real, tied to the club or is it a totally separate entity?
 
wxgill said:
Is the debt, if it is real, tied to the club or is it a totally separate entity?
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The debt is REAL!!!!!! not IF!!!!!! You've looked on the Companies House website; look at the 'charges' on on the Register. It's there in black and white, a floating charge on the assets of Gillingham Football Club Ltd. How is this so difficult to understand?
 
PDL had the debt - nothing else - then was wound up. No other group companies show the debt now so it’s been written off. Simples.
 
beanhead said:
PDL had the debt - nothing else - then was wound up. No other group companies show the debt now so it’s been written off. Simples.
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Rubbish, it's shown in the consolidated balance sheet of GFC Holdings Ltd, as at end of May 2017.
 
DurhamGills said:
GFC is not liable for the debts and the debt is not secured against the ground
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According to the details of the charge recorded on the companies Register, Barclays in entitled to a fixed and floating charge over the undertaking and all property and assets present and future, including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant & machinery [of Gillingham Football Club Ltd]. Would you like to rethink your statement?
 
Not one person on here has mentioned that the debt was to Bank of Scotland NOT Barclays.

Gills owed £13m to BOS.

To get rid of BOS they accepted £5m cos we had no money and it wasn't worth chasing an insolvent small league club.

We raised a new loan for £4m from Barclays + a million from the directors.

I always thought that the residual £9m would still be with BOS and written off after 6 years. It seems that Barclays then had it instead.

But I remember that a few years ago Scally stated that we had no bank loans - I believe this meant that additional directors loans + some large transfers, managed to pay off the Barclays loan of £4m. I don't think Scally see's the £9m as a real loan that will ever be paid back - it will be written back at some stage. After all it would be terrible publicity for Barclays to have made a huge gain - the loan not costing them anything in the first place.
 
There does seem to be a bit difference between what Scally has been saying and the detail in the accounts .This could be a good reason why Scally wasn't at the supporters meeting a few nights ago .If Wayne is right Scally has for whatever be reason tried to hide the debt it appears .It makes no sense to do so as I see it .The full story may one day be told but I doubt it will be Scally who tells it .
 
Arthurly said:
Not one person on here has mentioned that the debt was to Bank of Scotland NOT Barclays.

Gills owed £13m to BOS.

To get rid of BOS they accepted £5m cos we had no money and it wasn't worth chasing an insolvent small league club.

Arthurly said:
We raised a new loan for £4m from Barclays + a million from the directors.
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The debenture from Barclays was delivered on October 4, 2011.

The consolidated accounts show a bank loan of £9.05m. I doubt if it's with BOS as all charges have been satisfied and there is no post balance sheet note or indeed any note that the loan has been or will be written off.

I always thought that the residual £9m would still be with BOS and written off after 6 years. It seems that Barclays then had it instead.

But I remember that a few years ago Scally stated that we had no bank loans - I believe this meant that additional directors loans + some large transfers, managed to pay off the Barclays loan of £4m. I don't think Scally see's the £9m as a real loan that will ever be paid back - it will be written back at some stage. After all it would be terrible publicity for Barclays to have made a huge gain - the loan not costing them anything in the first place.
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All debentures and legal charges with Bank of Scotland were satisfied on August 20, 2011.
 
Agreed Wayne. Read my post I'm not disputing that. Gills didn't pay £13m to Bank of Scotland to satisfy their debt !!!!


'I always thought that the residual £9m would still be with BOS and written off after 6 years. It seems that Barclays then had it instead.'
 
Arthurly said:
Agreed Wayne. Read my post I'm not disputing that. Gills didn't pay £13m to Bank of Scotland to satisfy their debt !!!!


'I always thought that the residual £9m would still be with BOS and written off after 6 years. It seems that Barclays then had it instead.'
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No problem - I knew nothing more until the latest accounts were posted on the Companies House site in the last few days. I was looking to see if the loan had been reduced but not so it appears. Still not sure what will happen to Priestfield Developments Ltd.
 
Can anyone explain why Scally would want to hide this debt ?
If we had this debt over the last 18 years the interest would have been massive over that period. The whole thing doesn't add up .If anyone has a answer is would be interested to read it .
 
chris who said:
Can anyone explain why Scally would want to hide this debt ?
If we had this debt over the last 18 years the interest would have been massive over that period. The whole thing doesn't add up .If anyone has a answer is would be interested to read it .
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If you look at the accounts, the loans are there for all to see. The GFC group has paid interest for the years to May 31, as follows: 2017 - £66,000; 2016 - £116,000; 2015 - £101,000; 2014 - £63,000 and so on.

The GFC Group has cumulative losses of over £8m; so, clearly the business was not sustainable without a huge cash injection either by way of loans or further issue of shares.

The Group has a significant consolidated negative net worth but by cutting its cloth to suit and more or less breaking even by increasing revenue by selling players, it is able to service the loan. Relegation could be a proverbial spanner in those works.

While the interest is being paid and we don't get relegated or suffer some other untold event, the bank isn't going to foreclose on the loan is it? The outstanding loan is £9m and the ground maybe worth £4m.

So, unless a new investor arrives or we get really big bucks for a player I can't really see how a new stadium is possible. Perhaps others no better or have a different slant on things.
 
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