Inverness Caledonian Thistle report loss of over £588,000 in last financial year
INVERNESS Caledonian Thistle has reported it has made a loss before tax of £588,053 in the last financial year.
The League One club has finally published its accounts for the year ending May 30, 2023 on Companies House, one month overdue, where it confirmed it has made a six-figure loss.
But the club says it is in discussions with interested parties to attract new investment to ensure it is financially sustainable in the future.
Inverness Caledonian Thistle have previously said it has engaged in talks with an insolvency practitioner should its attempts to attract new investment fail.
It comes after suffering blows to major projects which failed to generate new investment. This included its planned Battery Energy Storage Facility project at Fairways, which was estimated would have earned the club £3.4 million, was rejected by Highland Council. However, the decision has been appealed with the Scottish Government.
Statkraft also pulled out of a deal worth between £1.4 million and £1.7 million over five years to the club, for a park and ride at the Caledonian Stadium for the Red John Hydro Scheme at Loch Ness.
The report says that the club is in talks to attract new investment and along with operational cost savings, is confident its future is financially viable.
It reads: “As a result of the club’s relegation to League One and certain financial initiatives not coming to fruition, the directors continue to address the financial challenges the club faces - this has included changes at board and senior management level.
“The directors are currently in dialogue with interested parties who are looking to invest in the future success and financial sustainability of the club by providing permanent equity funding via a share purchase.
“The directors are also enacting a significant cost restructuring project which will provide cost savings to the club, while also offering opportunities to improve the club’s future development.
“Notwithstanding the inherent unknown impacts of playing in League One, the directors believe they have taken the required actions to ensure the immediate financial stability of the company and continue to monitor its financial position closely. The directors are optimistic that a new investor will be in place within the short term.
“Cash flow forecasts have been prepared by the directors, which recognise the ongoing challenges faced by the company. Whilst the forecasts are inherently uncertain, the directors are confident that additional investment, combined with operational costs savings will secure the financial viability of the company and ensure it meets its debts as they fall due.”
Full Companies House report can be read here.
