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Statement: Working capital

1 November 2013

Wycombe Wanderers, together with Wycombe Wanderers Trust, are pleased to confirm that the next stage of achieving financial stability is ready to be announced.

Having already raised short-term working capital, the next round of funding will be the generation of permanent capital.

Following the Trust AGM when it was explained that the club was well on its way to a breakeven model, the Trust agreed that a re-organisation of the share capital of the club, dealing with the extension of the shares in the club and the existing shareholdings, would be undertaken.

The club currently has a mix of voting and non-voting shares. The Trust has agreed in principle (and will ratify at the next meeting) that the club will extend its capital bases from 1,260,900 non-voting shares and 100,000 voting shares to create 2,500,000 shares overall that will all be voting. The exact voting structure will need detailed explanation but the existing non-voting shares and new issues will come with a revival of voting rights.

It is still envisaged that it may take several years to raise this extra £1.2m, but the plan is that at least £250,000 will be raised by the end of the current season.

This is in line with Portsmouth and AFC Wimbledon, for instance, who have already issued shares and have enjoyed substantial take up, raising very significant sums of working capital in the process.

The Trust, having taken ownership of the club and overseen an operational turnaround, maintained league status and moved towards the breakeven and sustainable model, now sees raising working capital as the final piece of the financial jigsaw. Raising these sums over a period of time should be both affordable and give the club ample security to operate within the erratic nature of football club cash flows.

As this restructuring is delivered, the period of financial uncertainty and turbulence will be expected to reduce. If successful, our need to sell players could be a thing of the past. However, as deals come and opportunities arise, we will not shy away from doing the right thing, not only in the best interests of any player concerned but also to secure the long term financial security of the club.

Trust chairman Trevor Stroud and football club chairman Don Woodward have already agreed to commit to £250 pa for four years payable monthly. If all Trust members were able to do this we would have £1m – we know it will not be that simple, but the process has started.

.colin@wycombewandererstrust.com The Trust will be calling a meeting of its members shortly, at which time more detail will be announced and the process for signing up to the scheme will be explained. If, in the meantime, anyone is willing and able to make a commitment or prepared to place amounts in Escrow, subject to acceptance of final terms and conditions, then they should contact Colin Treacher at

 


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