LIVERPOOL’S parent company, owned by Tom Hicks and George Gillett, suffered a £42.6m loss last year – mainly due to interest payments on the debts the Americans took on to buy the club.
In the annual accounts released last night, Liverpool’s accountants have also warned that remaining uncertainty over refinancing the £350m debt before the July 24 deadline “may cast significant doubt on the group’s and parent company’s ability to continue as a going concern”.
Although Hicks and Gillett say they are confident of securing a refinancing deal, the figures reveal that the financial success of the football club is being swallowed up by the cost of servicing the parent company’s loans.
The accounts for the year ending July 2008 showed Liverpool made a £10.2m profit, but the parent company Kop Football (Holdings) Ltd made a substantial loss of £42.6m, mainly due to interest payments totalling £36.5m.
The clubs accountants KPMG LLP also expressed a warning in their notes in the filed accounts.
The accountants said: “The group has credit facilities amounting to £350m which expire on 24 July, 2009. The directors have initiated negotiations to secure the replacement finance required by the group and these negotiations are ongoing.
“These conditions...indicate the existence of a material uncertainty, which may cast significant doubt on the group’s and parent company’s ability to continue as a going concern.”
The club’s turnover was a record £159.1m compared to £133.9m the year before, with a profit of £10.2m.
That was reflected by a similar turnover for Kop Football (Holdings) of £164m – most coming from the football club – but with an overall loss of £42.6m.
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