GTFC Accounts - Chairmans Statement

Expenditure

Administrative costs have increased by just over £470K. The two principal reasons for this are the costs directly associated with playing the two Coca Cola cup games and costs directly associated with the play off final. These costs include additional policing and associated security costs, together with the costs directly associated with the sponsorship income generated from these games; for example, sponsorship packages, printing and other miscellaneous expenditure.

The other significant cost increase during the season were wages, which apart from additional match day staff that were required for the reasons stated above, is more or less exclusively as a result of an increase in players wages.

The full cost of these additional wages is not reflected in these accounts, as players were brought into the club during the season and the additional costs of some of these players will also be borne during the current season.

Overview

Although the Club showed a healthy operating profit it can be seen from the above that this in essence is more or less solely attributable to the two home Cup games against Premiership opposition and the club's appearance in the Division 2 play offs. Although additional income was generated from the home league matches, this in itself was not a significant contribution to the improved results, and when taking inflation into account, I would suggest that this has not kept pace with the increased costs of operating the club; particularly when taking into account the reduction in income per head for the season tickets.

Other than contributing towards the increased wage costs and covering the costs directly associated with staging the Cup games, the profit generated from this year's trading has been fully absorbed by the company to assist the directors in servicing the debt to the Inland Revenue and funding the costs that are necessary to move the new stadium project forward.

Even though over £160k has been raised from the issue of new shares, at the end of the financial year the company's debt situation had actually worsened by some £100k, this being supported by additional loans and other commitments from the directors during the current financial year."

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