Wasps accounts to June 2020

[ardenwasp]

Just released on the offy, presumably to tie in with CCFC announcements. Ouch, but not unexpected.

https://www.wasps.co.uk/media/7793/wasps-holdings-limited-ye-30-06-2020.pdf

[PestNproud]

From a quick glance, doesn't look terrible, all things considered.

Left wondering 'What might have been?', as some of the underlying trends appeared to have started promisingly before pandemic struck.

Certainly don't smell fear or retrenchment, which is positive/reassuring, so hopefully relatively cheerless for our knockers. Particularly like the optimism about vying for the league title again this season!

Even the bond situation not presented as concerning as might be imagined (refinancing discussions referenced). Even relegation and other risks brushed off each with mitigation options. Derek Richardson waived £1.6m interest. Auditor reappointed, which is another positive, albeit with a 'going concern' flag particularly tied to dependence on Derek (he is committed for the 'foreseaable future', though not in a legally binding fashion). £54m of accumulated losses jumps out at me -- handy if/when profitability secured -- and the even larger negative equity (eek!), though latter actually improved.

The board of directors of the Group and Group’s ultimate shareholder are committed to making the Group financially viable, including initiating a series of projects to increase both matchday and non-matchday (e.g. conference and exhibitions, hotels and concerts) revenues and manage costs accordingly.

Undoubtedly devil in the detail, but no reference to CCFC/SISU, HMRC investigation, or EU review that I could spot.

[hookender]

From a quick glance, doesn't look terrible, all things considered.

Even the bond situation not presented as concerning as might be imagined (refinancing discussions referenced). Even relegation and other risks brushed off each with mitigation options. Derek Richardson waived £1.6m interest. Auditor reappointed, which is another positive, albeit with a 'going concern' flag particularly tied to dependence on Derek (he is committed for the 'foreseaable future', though not in a legally binding fashion). £54m of accumulated losses jumps out at me -- handy if/when profitability secured -- and the even larger negative equity (eek!), though latter actually improved.


Undoubtedly devil in the detail, but no reference to CCFC/SISU, HMRC investigation, or EU review that I could spot.

Have been thinking , before accounts published, that despite the problems of debt, Covid etc , the position of Wasps is not all doom and gloom .

I thought it was noticeable that despite obvious problems with cashflow for any business ,Wasps have not asked for anything unreasonable in respect of monies upfront for season tickets compared to some clubs who seemed to be asking for 2 years  with a possible refund back (hankering after a donation). From this I can only presume board are confident of riding situation out.

 The position re the bond? From November when VV was considering buying at around 30/35p it is now 65/68p and is just a stock market type bet. I’m sure DR could have bought up at that low price  (or indeed Wasps Holdings ltd) to redeem early and only cover a 35m debt for 13m . Equally the interest rate is only similar to directors loan at Leicester.

 Position re CCFC and HMRC not commented on ? Though published same day ,this is an historical document and whilst it alludes to future prospects it shouldn’t take them into account. At least the possible extra income of one should cancel the potential liability of the other.

 Despite the obvious problems with our figures and present climate, I still remain optimistic that we will still be watching a Wasps side in the years to come.

[SteveTodd]

From a quick glance, doesn't look terrible, all things considered.

Even the bond situation not presented as concerning as might be imagined (refinancing discussions referenced). Even relegation and other risks brushed off each with mitigation options. Derek Richardson waived £1.6m interest. Auditor reappointed, which is another positive, albeit with a 'going concern' flag particularly tied to dependence on Derek (he is committed for the 'foreseaable future', though not in a legally binding fashion). £54m of accumulated losses jumps out at me -- handy if/when profitability secured -- and the even larger negative equity (eek!), though latter actually improved.


Undoubtedly devil in the detail, but no reference to CCFC/SISU, HMRC investigation, or EU review that I could spot.

Have been thinking , before accounts published, that despite the problems of debt, Covid etc , the position of Wasps is not all doom and gloom .

I thought it was noticeable that despite obvious problems with cashflow for any business ,Wasps have not asked for anything unreasonable in respect of monies upfront for season tickets compared to some clubs who seemed to be asking for 2 years  with a possible refund back (hankering after a donation). From this I can only presume board are confident of riding situation out.

 The position re the bond? From November when VV was considering buying at around 30/35p it is now 65/68p and is just a stock market type bet. I’m sure DR could have bought up at that low price  (or indeed Wasps Holdings ltd) to redeem early and only cover a 35m debt for 13m . Equally the interest rate is only similar to directors loan at Leicester.

 Position re CCFC and HMRC not commented on ? Though published same day ,this is an historical document and whilst it alludes to future prospects it shouldn’t take them into account. At least the possible extra income of one should cancel the potential liability of the other.

 Despite the obvious problems with our figures and present climate, I still remain optimistic that we will still be watching a Wasps side in the years to come.

There hasn't really been anything to buy into the bond below 40 pence, when it was as low as 28 pence, I tried to buy £20k, then £10k, then £5k and I couldn't even buy £2k's worth. I wasn't even offered any price to buy, nothing! I had to wait a while (weeks) until it went up to 40 pence when I bought another £40k, and when I did the price moved upwards. There is no way that DR could have bought anything significant at a low price, the price quote changes (or no offer to buy at all) for large amounts.

[hookender]

Yes I was just implying that if he had wanted to he could have bought in to reduce liability later. You must be pleased with your gain!

[SteveTodd]

Yes I was just implying that if he had wanted to he could have bought in to reduce liability later. You must be pleased with your gain!

Well I am not unhappy with my position, but it still has to play out well, my average weighted price is 59.2 pence, and if it goes to the wire, my running yield would be about 10%, so I should be OK, but I am not taking anything for granted. Obviously I would love the bond to be redeemed at 100 pence, and it might be, but it could also be offered and accepted much lower, if Wasps don't get additional investment.