Preston NE seeks funding for lean summer months
CHAMPIONSHIP football club Preston North End has again extended its loan from multi-millionaire Lancashire businessman Trevor Hemmings, to cover wage costs.
Guild Ventures, which is owned by Mr Hemmings and has a 28% shareholding in the club, has advanced £550,000. The money will be used to meet the cost of players’ wages due this month.
It said that further loans would be required during the summer months, when revenues will fall dramatically because no games are being played.
Chairman Derek Shaw said: “The company is grateful to Guild Ventures Limited for this loan. The Company continues to incur operating losses and anticipates that further funding will be required prior to the commencement of the new 2010/11 football season in August 2010.
“The company is, therefore, currently considering ways with Guild Ventures to secure this funding.”
The club has resorted to a string of payments from Guild Ventures since December 2008 and now owes the company £13.28m, including interest.
In March it reported that its pre-tax loss had been halved to £2.3m from £4.76m, as revenues grew nearly 30% to £5.2m in the six months to the end of December.
The club has reined in its costs as total wages and salaries rose just 2% to £5.84m – but this still exceeds its turnover.
