Community action celebrated but funding shrinks at HadcaHarrogate Spring Water publishes annual results as expansion verdict loomsHarrogate Convention Centre reports ‘significant growth’ — but keeps figures secretHarrogate Town post £2.5 million loss

Harrogate Town lost £2.5 million last year — more than double the amount it lost the previous year.

The club’s financial statement for the year ended June 30, 2023 appeared on the Companies House website today.

The 12-page statement does not include a copy of the profit and loss account, which it says “the directors of the company have elected not to include”.

But it reveals the club made a loss of £2,475,345 compared with £1,168,631 in 2022.

It also highlights the club’s ongoing dependence on chairman Irving Weaver, who owns 86% of shares.

It says despite the £2.5 million loss and net current liabilities of £2.7 million, the directors have prepared cash flow forecasts “which indicate that, taking account of reasonably possible downsides, the company will have sufficient funds, through funding from its controlling shareholder, R I Weaver, to meets its liabilities as they fall due for that period”.

It adds:

“Those forecasts are dependent on R I Weaver not seeking repayment of the amounts currently owed to him, which at 30 June 2023 amounted to £2,458,074, and providing additional financial support during that period.

“R I Weaver has indicated his intention to continue to make available such funds as are needed by the company, and that he does not intend to seek repayment of the amounts due for the period covered by the forecasts.”

The financial statement added that no interest had been charged on the £2.5 million owed to Mr Weaver — and that the club owed him £4.4 million in 2022.

The statement also revealed the club employed on average 66 staff in 2023, compared with 55 in 2022 — an increase of 20%.

Simon Weaver, Irving’s son, has steered Town to within four points of a League Two play-off place this season with five matches to go.

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Masham brewery Theakston returns to profit

Masham brewery T&R Theakston has reported a return to profitability in its annual report and accounts for the year ending December 31, 2022.

The family-controlled business, which has been brewing beers in Masham for almost 200 years, recorded a pre-tax profit of £18,000 for the period, compared with a £2,000 loss the previous year.

Turnover increased by 14% to £6.7 million in the same period, despite what the accounts note as a third successive year “affected by external events”.

Staff numbers grew from 28 to 30 and dividend payments to shareholders rose from zero to £100,000.

Fellow Masham firm Black Sheep Brewery was sold by administrators to London investment firm Breal Group for £5 million in May in a pre-packaged deal that left creditors owed £3 million.

Black Sheep’s sales fell from £19 million in 2019 to £14 million last year, which resulted in a £1.6 million loss, with the company blaming covid and sudden rising costs.

Theakston’s accounts highlight the difficulties facing brewers, which include a 40% increase in barley prices following Russia’s invasion of Ukraine.

The company said it ceased all trade with Russia, which was its largest export market, following the invasion.

Covid, inflation and the cost of living crisis have also hit the sector hard.

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The report’s strategic review by the directors said:

“We were forced to pass most of these cost increases on in higher prices, but pricing in the off trade did not fully recover the increased costs and hence margins in this channel were squeezed.

“While customers have been largely understanding, consumers have squeezed disposable incomes. Our pubs customers are caught between increased supplier costs, increased running costs of their own and less affluent consumers, so we are very mindful of keeping price increases to the minimum we can afford.”

Theakston has changed its sales model by broadening its supply routes to the on trade and by spreading its interests beyond beer by launching a cider and whisky as well as new ales.

Simon Theakston, joint managing director of T&R Theakston, said:

“With a healthy balance sheet and secure financial arrangements, we remain focused on growing our revenue and are excited about some of the upcoming opportunities to forge new partnerships and bring innovative new products to market.

“We have made a good start to the year and, as a result, the board of directors is confident that as trading conditions continue to improve and the economy stabilises, we will see a steady improvement towards pre-pandemic levels of profitability.”

Staff sent home as Knaresborough housebuilder seeks urgent investment

A housebuilder based near Knaresborough has reportedly sent its staff home this afternoon after reports it was urgently seeking investment.

Ilke Homes is said to have told several hundred staff not to come into work at its Flaxby factory until further notice.

They have reportedly been told they will be paid, and will be called back in when the company finds an investor. Managers will continue to work in the 250,000 sq ft factory next week.

The company, which manufactures modular homes, was reported by industry publication Building to have been seeking a new investor this week.

Last week, Companies House began action to strike Ilke Homes off the register of companies because it was late filing. It discontinued the action two days later.

The company said it had been given an extension until the end of this month to file its accounts, during which time it was aiming to secure new funding.

Chief financial officer Patrick Bergin told Building:

“We can file, the accounts are ready, [but] the final conversation with the auditor is around whether they include a caution in the audit report that references the severe but plausible downside scenario.

“I’m shooting for the cleanest outcome.”

The Stray Ferret has attempted to contact Ilke Homes but not had a response.

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Harrogate Town post £1.2 million loss

Harrogate Town posted a £1.2 million loss in their second season in the English Football League.

Newly-published accounts for the year ending June 30, 2022 also reveal the club’s dependency on chairman Irving Weaver, who owns 75% of the club’s share capital, increased.

The club owed Mr Weaver £4.4 million, compared with £3.7 million the previous year.

This year’s figures follow a £1 million loss the previous year.

The accounts say:

“The company will have sufficient funds, through funding from its controlling shareholder R I Weaver, to meet its liabilities as they fall due.

“Those forecasts are dependent on R I Weaver not seeking repayment of the amounts currently owed to him.

“R I Weaver has indicated his intention to continue to make available such funds as are needed by the company, and he does not intend to seek repayment of the amounts due for the period covered by the forecasts.”

The accounts also show the number of staff increased from 35 to 55 in what was the club’s first season in the EFL with fans allowed back in the ground after covid.

The Wetherby Road club’s land and buildings are valued at £4.3 million as opposed to £3.91 million a year earlier.

Town’s fortunes on the pitch have improved lately, with an upturn in results easing them away from the relegation zone.

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The club said in a statement:

“We have spent the last 18 months investing in the club for the long-term future including the re-structuring and strengthening of the team, developing the stadium and facilities to a standard fit for the EFL and to give our supporters a better match day experience, plus, the launch of our academy.

“We have exciting plans for the future with the growth of our player development centres, our Women and girls teams as well as many more initiatives to benefit supporters as we continue to grow as a club. We would take this opportunity to thank all our stakeholders for their continued support”

Cyber-attack contributes to major Harrogate district firm posting £4.1m loss

A major Harrogate district employer has posted a pre-tax loss of £4.1 million after one of its most difficult years ever.

Boroughbridge-based Reed Boardall, which employs 800 staff, grew turnover by 6.2% In the year to March 2022 from £69.8m to £74.1m. But the temperature-controlled food storage and distribution business sustained a £4.1m loss compared with £705,000 profit in the previous year.

The company faced a raft of industry challenges, including rising fuel and energy costs, covid and driver shortages. But it also had to contend with other issues, including a cyber-attack.

Chief executive Marcus Boardall said:

“Our financial performance was adversely affected by Reed Boardall being the victim of a criminal cyber-attack, resulting in our IT systems being out of operation for six days.

“The costs associated with the interruption, loss of revenue and subsequent recovery, were substantial. The situation was exacerbated by bad debt as one of our largest transport customers was placed into administration, although the contract has been taken over by a major retailer.”

Mr Boardall added:

“There’s no question that it has again been a very difficult year for the industry. We have seen the challenges of rising employment costs and inflation forcing up prices for most operators, while coping with continued disruption as a result of reduced staff levels due to covid, along with the problem of driver shortages.

“Looking to the future, the pandemic disruption appears to be settling, and we are starting to bear the fruits of the proactive initiatives we have undertaken to establish our own in-house team of drivers – for example, over the last year, we have trained over 20 new recruits from scratch at our own academy, enabling them to become qualified drivers.”

Mr Boardall said he was “confident that better times are ahead”, adding:

“We have established a strong position in the marketplace and we will continue to prove the success of our single site strategy where we are able to serve all our customers’ needs efficiently.

“I would like to thank our 800-strong team and loyal customers for their continued support as we continue on our growth journey.”

‘Resilient performance’

Based on a 55-acre site just outside Boroughbridge, Reed Boardall has grown to become one of the largest temperature-controlled food distribution businesses in the UK.

With a fleet of 200 vehicles operating 24 hours a day, year-round, it delivers 12,000 pallets of frozen food daily from manufacturers across Britain, Europe and further afield to all the UK’s best-known supermarkets. It also provides blast freezing, picking and packaging services.

Finance director Sarah Roberts said:

“Given the myriad of pressures on the business over the last 12 months, we have once again put in a resilient performance and are pleased to say that we are now on a much more even keel.

“Having completed the multi-million pound expansion of one of our cold stores in spring 2021, we have the largest and most modern facility of its kind in the UK. With a capacity of 168,000 pallets, we have continued to see volumes rise since the year end.

“We have also secured additional business in the new financial year and our ability to adapt to an ever-changing industry is enabling us to attract new customers with very specific requirements while still ensuring their integration into our operations complements our existing customer base.”

 

 

Harrogate Town made £1m loss in first Football League season

Harrogate Town posted a loss of £1 million during its first season in the English Football League.

The club secured professional league status for the first time in its history in 2020 after winning the National League play-offs.

Town then played its entire 2020/21 season in League Two behind closed doors due to the covid pandemic.

According to accounts filed with Companies House, the club published a loss of £1.019 million for the 12 months to June 2021.

The club said it was not alone in struggling through the pandemic and added that growing its fanbase now that spectators are allowed into stadiums was “a priority”.

The accounts added that the club’s cash flow forecast for the next 12 months was dependent on Irving Weaver, chairman and majority shareholder, not requesting £3.7 million he has currently put into the club in order for it to meet its liabilities.

The accounts said Mr Weaver “does not intend to seek repayment of the amounts due for the period covered by the forecast”.

A spokesperson for Harrogate Town said:

“As with all sporting venues, entertainment and hospitality organisations, the club has had a challenging time during the pandemic with not being able to operate fully so we are obviously still playing catch up.

“As you would expect, as a relatively new league status club, and with fans allowed in for the first time this season since being promoted into the league, we are still growing our fan base and that will remain our priority.

“We have lots going on behind the scenes and will be announcing details of all new developments as soon as we are in a position to do so ahead of the new season but we are still in the planning and negotiations stages on various projects.”

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The club is currently in the process of improving facilities at the EnviroVent Stadium on Wetherby Road following promotion to the English Football League.

Last month Town officials applied to Harrogate Borough Council to build a new clubhouse at the stadium to meet demand from increased fans on match days.

Meanwhile, a new ticket office and turnstiles at the EnviroVent Stadium were approved by the council in April 2021.

Harrogate council accounts to be signed off after months of delays

The annual audit of Harrogate Borough Council’s accounts for 2020/21 is set to finally be signed off after months of delays.

Accountancy firm Mazars was due to receive draft financial statements from the council by a deadline of last July, but this did not happen until three months later on October 25.

The delays were blamed on the impacts of the pandemic, local government reorganisation and the launch of the council’s new leisure company.

Mazars senior manager Diane Harold presented an audit completion report to councillors last night when she said the majority of councils across the country had missed a further deadline for publishing their accounts in full.

Speaking at a meeting of Harrogate Borough Council’s audit and governance committee, she said: 

“The statutory deadline was the end of November – and the majority of local authorities unfortunately did not achieve that so Harrogate was not alone.

“I would like to highlight the significant cooperation from management that I have had, and the pressures that they have faced.

“That is not to take away from the fact that this is now March, but to recognise there has been a lot of effort to get to this stage.”

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Ms Harold added the accounts should now be signed off by Mazars “this week or next at the latest”.

Risks highlighted

The audit completion report from the firm details a number of areas which have been highlighted as risks, including “errors” and “inconsistencies” in the council’s valuation of its property and equipment.

The report also said there is a risk that the council’s 2021/22 accounts will not be approved before the authority is replaced by the new North Yorkshire Council in April 2023.

The report added: 

“We have had the full cooperation of management, however, there have been continued delays in responding to queries, in particular in October and November 2021, due to pressures on officers arising from multiple factors, including the impact of the pandemic, local government reorganisation and also the new leisure company.

“Based on arrangements in place for the 2020/21 audit, there is a risk that the 2021/22 financial statements will not be approved by 31 March 2023 i.e. before local government reorganisation.”