Hartlepool United release accounts for first season outside Football League - including details of deal struck between John Blackledge and Raj Singh
Hartlepool United have released their financial results for the year ending July 2018, the first season outside the Football League.
The financial picture at the Super 6 Stadium today is a world away from 12-months ago when Pools were beset by financial problems, the club's very future at stake before Raj Singh took charge.
Singh has recently celebrated a year in charge at Pools, the Teesside businessman having took ownership of the club in April 2018 with the club in a much healthier and stable financial position.
The club’s accounts cover the period from July 1 2017 to July 31 2018, the first season in the National League, so only include the first three months of Singh's tenure.
The finances, as of July 2018, show Pools had carrying amount of tangible assets of £229,412. The total equity was £1,167,233.
The accounts state: “At the period end the company had net current liabilities of £249,661 and net liabilities of £1,167,233.
“The going concern basis of the company depends on continued financial support from Clarence 18 Limited, the immediate parent undertaking, which has undertaken to provide financial
support to the company to the extent necessary for a period of at least the next 12 months.”
The accounts provide details of the £1.7m deal struck with former owner John Blackledge, of Sage Investments Limited, and the schedule for repayment, partly dependent on the on-field
The club accounts note: “During the period Clarence 18 Limited, the company's immediate parent undertaking, provided loans and paid expenses to the value of £848,435 on behalf of the
company. The full amount remained outstanding at the period end.
“During the period the former shareholders of the business, Sage Investments Limited, consolidated the amounts owed to it by the company totalling £1,727,181 into a formal loan
“The repayment of the loan in terms of timing and amount is dependent upon the on-field success of the football team.
“The directors have calculated the fair value of the likely amounts payable under the agreement and have reflected a total liability of £330,000 at the year end.
“The balance of £1,397,181 has been treated as a capital contribution from the previous shareholders and is shown in equity.
“At 30 June 2017, the company was owed £334,991 by companies controlled by former shareholders, and owed £1,142,313 to companies controlled by former shareholders.”
In an exclusive interview with the Mail earlier this month, club president Jeff Stelling revealed the debt Pools owe Raj Singh - and the former owner.
“People will not know this but the former owner John Blackledge played a massive part in saving Hartlepool United,” said Stelling
“The deal was 48 hours from collapse. Had he not agreed to get money back further down the line, we would not have been able to take the club off his hands.
“If he’d asked for his £1.7million there and then, the deal would have been off. But thankfully, at the 11th hour, he agreed to our proposal and we could get the deal done.
“Without Raj Singh and his money, 90% plus of which is his, there would be no football club.”