Accounts 2020

[ardenwasp]

In process of being released. Bottom line is:

Results for the Wasps Group summarised below reflect the impact of COVID-19 on the Wasps Group, combined with the prior year cash injection of £12.5 million of funds received by Wasps Holdings as part of the Premier Rugby Limited commercial deal with CVC Capital Partners and a £4.1 million increase in the valuation of the "P-Shares" that Wasps Holdings holds in Premier Rugby Limited:

·      as at 30 June 2020, full year revenue decreased year-on-year to £22.2 million, compared to £34.5 million for the year to 30 June 2019 (Wasps Holdings: £9.9 million (2019: £14.8 million); ACL: £3.0 million (2019: £5.1 million); and IEC Experience Limited: £9.3 million ( 2019: £14.6 million));

·      operating loss of £8.75 million, compared to an operating profit of £8.4 million in 2019;

·      EBITDA loss (operating loss before taxation, finance costs, depreciation and amortisation) of £6.5 million, compared to a profit of £10.7 million in 2019 (a decrease of £17.1 million from the financial year ended 30 June 2019);

·      valuation of the Ricoh Arena at £51 million and P-Shares at £13.9 million, unchanged from the 2019 valuations; and

·      consolidated senior net debt at £37.3 million (mainly owed to Wasps Finance), compared to £31.4 million in 2019.

Board going out to the bondholders to seek changes to the conditions of the bonds - info here https://www.londonstockexchange.com/news-article/WAS1/launch-of-consent-solicitation/14709706

To be honest I don’t know much about the figures but it was surely to be expected given the pandemic.

[Heathen]

Small extract from the consultation document :

The Wasps Group fully intends to continue to meet its obligations under the Bonds to pay interest as it falls due and to refinance the Bonds on or by their scheduled maturity.

Stephen Vaughan, Chief Executive Officer of Wasps Holdings Limited, commented:

"The Wasps Group had a good start to the year up until the impact of Covid-19 and the temporary closure of the Ricoh Arena in line with Government health restrictions from 21 March this year. Since then, we have taken a number of mitigating actions to preserve cash, reduce costs and maintain liquidity to limit the impact on the business. We are now asking bondholders to support the amendment to certain leverage and cashflow covenants attached to the Bond in light of the ongoing restrictions. The approval of these Proposals will also give the Wasps Group the flexibility to access additional liquidity, if required.

"We continue to tightly manage our costs and have a comprehensive reopening plan for when restrictions are lifted with extensive COVID-secure operating protocols.  The Wasps Group fully intends to continue to meet all of its obligations under the Bonds. We firmly believe that the Proposals are in the best interests of all of our stakeholders, and will help the Wasps Group to emerge in a more robust financial position."

RATIONALE FOR THE PROPOSALS

The Issuer and the Guarantors are making the Consent Solicitation for the following reasons:

·              to amend the financial covenants under the Bonds to take into account the significant impact of COVID-19 on the Wasps Group and the on-going financial impact of operating in a COVID-19 environment;

·              to enable the Wasps Group to access additional liquidity that is required to allow it to continue to trade as a going concern while the Government's public health restrictions to control COVID-19 remain in place;

·              to enable the Wasps Group to improve its financial strength through the acceleration and implementation of its development plan for the Ricoh Arena and surrounding land and facilities; and

·              to facilitate the Wasps Group's plans to refinance the Bonds on or by their scheduled maturity date in May 2022,

[Dgwasp]

Obviously not cheerful reading, however I don't think there will be any clubs that can offer that in the current climate and given the gravity of losses in previous accounts where Covid hasn't had an impact they don't seem as bad as I though they might do.

The bond seems like it is still an issue hanging over us but it sounds like they are taking sensible precautions to manage this.

[Neils]

Not too pleasant reading but understandable. BUT, faint chance, I hope reporters remember that this is for a Group not just a sports club.

[Bloke in North Dorset]

I think this is the key, although I am not an accountant:

· to enable the Wasps Group to access additional liquidity that is required to allow it to continue to trade as a going concern while the Government's public health restrictions to control COVID-19 remain in place;

Many a profitable business goes bust for lack of cash flow and I'd imagine that cash is in very short supply for all clubs.

[Heathen]

Yep - cash is king.

[Shugs]

I'm not worried about the covenants. Every man and his dog are breaching them left, right and centre. As mentioned above cash flow is the key. Without cash you're done. That said I don't think we're anywhere near that and I've always had the feeling a coherent plan around refinancing the bond was in place. Some bunce from the government would help the short term cash flow.

[hookender]

As long as you get your interest do you really care?  In 2022 all that’s going to happen is a new bond offering will be made for however much is needed and as long as bait is sufficient someone will bite (some slippery fish in a Barnet pond will be hungry enough).