First Division side Queen of the South have published their latest accounts, which have shown losses of more than £1 million, which have raised ‘significant doubt’ over the ability to continue in its current setup.
The figures for the Dumfries side covered the year, ending 31st May 2010, however this was before a number of postponements due to the horrendous weather that hit our game this season, and which have reportedly put ‘severe pressure’ on the club’s finances.
Despite this, the Doonhamers directors have stated there are ‘plans in place’ which they believe can return the club to making a profit.
Over the past few years the Dumfries side has received welcome revenue boosts from their run to the Scottish Cup Final in 2008, and their involvement in Europe the year after.
However despite tha high, the club’s financial situation has plummeted as their latest accounts show a record loss of £1.2 million in 2010, compared with around £750,000 the year before.
The club’s net assets have also fallen from £500,000 to a mere £82,000 in the same period.
The financial statement added, “The unaudited results of the current year indicate that there will be a further significant loss for the year ending 31 May 2011 which could result in the company’s balance sheet showing net liabilities at that date.”
It seems that the directors’ plans to return to profit-making, is to dispose of some property that the club own, however given the current financial state of the property market, they would not make as much money as they would have several years back.
However they recognise that if the circumstances do not change there will be a ‘material uncertainty which casts significant doubt upon the company’s ability to continue as a going concern.’
David Rae, the Doonhamers Chairman earlier in the season highlighted the problems at the club due to the lack of income from a significant run of postponed games due to the weather, which prompted a supporters campaign to raise funds to help their side.
The group named ‘Save our South’ has to date generated several thousand pounds for the club, helping the beleaguered First Division side out.
Source: BBC News