‘Fal­si­fied’ in­for­ma­tion

Nuneaton Telegraph - - FRONT PAGE -

WASPS au­di­tors have cast a shadow of doubt on the fu­ture of the club af­ter its ac­counts re­vealed it is re­ly­ing on share­holder cash to stay afloat.

And bosses at the rugby club were also slammed af­ter “fal­si­fied” in­for­ma­tion was pro­vided con­cern­ing a fi­nan­cial ir­reg­u­lar­ity that saw the ac­counts de­layed by more than three months.

In­de­pen­dent au­di­tors as­sess­ing the group’s ac­counts for the year up to June 2017 say there is “ma­te­rial un­cer­tainty” over whether Wasps can con­tinue as a “go­ing con­cern”. Wasps Fi­nance Plc is re­ly­ing on share­holder sup­port from Ir­ish mil­lion­aire owner Derek Richard­son to be able to meet its on­go­ing cash flow re­quire­ments and bond covenants, ac­cord­ing to the re­port.

But it stressed the club had enough cash to con­tinue op­er­at­ing for the “fore­see­able fu­ture” an that direc­tors were “sat­is­fied that ex­ist­ing share­holder sup­port will con­tinue”. Mr Richard­son has pre­vi­ously bankrolled the club to the tune of mil­lions of pounds prior to the move to Coven­try in 2014.

The au­di­tors re­port said: “If share­holder sup­port should not be forth­com­ing, the Group would have in­suf­fi­cient cash with­out se­cur­ing ad­di­tional fund­ing to meet its on­go­ing li­a­bil­i­ties, which in­clude the pay­ment of in­ter­est to the Com­pany.”

It added: “These 15 month fore­casts show that the Group con­tin­ues to be de­pen­dent on the fi­nan­cial sup­port of its share­holder, Derek Richard­son, with fi­nan­cial con­tri­bu­tions needed to fund on­go­ing cash flow re­quire­ments and to meet bond covenants.

“The direc­tors are sat­is­fied that ex­ist­ing share­holder sup­port will con­tinue to be forth­com­ing... How­ever, as this let­ter of sup­port is not legally bind­ing, the direc­tors have drawn at­ten­tion to the risk that share­holder sup­port is not forth­com­ing in dis­clos­ing a ma­te­rial un­cer­tainty re­lat­ing to go­ing con­cern in the ba­sis of prepa­ra­tion to the fi­nan­cial state­ments.”

Wasps Fi­nance plc was set up to han­dle the £35 mil­lion bond scheme launched to fans in April 2015.

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