Save Isle Of Wight

[Bryn]

 

I very much appreciate you comment. I did mention in message 235 that my business knowledge stemmed from when I had just left school and was 16 years old - a clue to how far back was that I named Eric Langton, Jack Parker and Ron Johnson as at that time my favourite riders.

However,I see no justification business wise why the successful arms of a company should continually support the one that makes continuing losses (although I would love to see an exception made to keep IoW speedway active). In harsh business terms it's "pouring good money after bad" so to speak.

A business parallel is that companies close down those stores in their group that fail to make a profit - they don't hive the profits from the successful ones to keep the deadwood afloat.

And I see no justification in your comments bearing in mind you're not a shareholder of the company that was set up by speedway fans with the prime intention of ensuring the continuance of speedway racing at Smallbrook thus leading to the conclusion in many shareholders minds I'll wager that if speedway were to cease at the venue, then there's no point in Island Speedway (IOW) Ltd continuing to operate.

[Halifaxtiger]

 

I very much appreciate you comment. I did mention in message 235 that my business knowledge stemmed from when I had just left school and was 16 years old - a clue to how far back was that I named Eric Langton, Jack Parker and Ron Johnson as at that time my favourite riders.

However,I see no justification business wise why the successful arms of a company should continually support the one that makes continuing losses (although I would love to see an exception made to keep IoW speedway active). In harsh business terms it's "pouring good money after bad" so to speak.

A business parallel is that companies close down those stores in their group that fail to make a profit - they don't hive the profits from the successful ones to keep the deadwood afloat.

 

As Bryn has said, the sole aim of the company was to ensure the continued existence of the speedway on the Island. As such, any income stream available to the company would be used to that purpose. The circumstances you have stated just don't apply.

 

That's why I am confused. If the company is viable, why has it been necessary for the chairman to pour in £100k and why is there a threat hanging over the continued participation of the Islanders in the NL ?

[John Leslie]

I've had a look at the filed accounts of Island Speedway (IOW) Ltd at Companies House.

 

Obviously it's only a small company, just running speedway, and therefore doesn't require an audit and only needs to file basic abbreviated accounts, so there isn't much information available (i.e. just a balance sheet, no P&L account).

 

The last accounts filed were to 28/2/13 (so they cover the 2012 season).

 

These show that the company has assets of £19,230 and was insolvent to the tune of £113,861 at that date.

As I say, there is no P&L account available to the public, but deducting one balance sheet from the previous would suggest IOW Speedway made a loss of £29,703 in the year to 28/2/13 (£3,754 loss in the previous year, £3,076 in the year before).

 

 

 

So the modest losses up to the 2011 season seemed sustainable, but what happened in 2012 to cause a £30k loss? Has there been a similar loss in 2013? Was there a big rent increase? or some other big expense incurred?

Edited January 11, 2014 by John Leslie

[Lord Skid]

 

As Bryn has said, the sole aim of the company was to ensure the continued existence of the speedway on the Island. As such, any income stream available to the company would be used to that purpose. The circumstances you have stated just don't apply.

 

That's why I am confused. If the company is viable, why has it been necessary for the chairman to pour in £100k and why is there a threat hanging over the continued participation of the Islanders in the NL ?

IOW should never be in the NL, just needs someone to go in who knows how to run a decent operation, hang on, there's not many of them about now, Pratt Louis Silver, type person is what's needed, not a Manager who looses other peoples money.

Interesting that the Chairman pours in 100k, but is getting paid!!

Also, not sure how the Council will react if Speedway stops, as they were always very favourable when it comes to the complex being a good attraction on the Island, whereas it looks like it's becoming an Industrial estate, with taxi firms etc running from the place.

[Vince]

I've had a look at the filed accounts of Island Speedway (IOW) Ltd at Companies House.

 

Obviously it's only a small company, just running speedway, and therefore doesn't require an audit and only needs to file basic abbreviated accounts, so there isn't much information available (i.e. just a balance sheet, no P&L account).

 

The last accounts filed were to 28/2/13 (so they cover the 2012 season).

 

These show that the company has assets of £19,230 and was insolvent to the tune of £113,861 at that date.

As I say, there is no P&L account available to the public, but deducting one balance sheet from the previous would suggest IOW Speedway made a loss of £29,703 in the year to 28/2/13 (£3,754 loss in the previous year, £3,076 in the year before).

 

 

 

So the modest losses up to the 2011 season seemed sustainable, but what happened in 2012 to cause a £30k loss? Has there been a similar loss in 2013? Was there a big rent increase? or some other big expense incurred?

Could it be that the other revenue streams were separated from the Speedway? I have no idea but if all that is on offer to any potential Promoter is the Speedway with none of the sites other activities it seems possible.

[Guest]

And I see no justification in your comments bearing in mind you're not a shareholder of the company that was set up by speedway fans with the prime intention of ensuring the continuance of speedway racing at Smallbrook thus leading to the conclusion in many shareholders minds I'll wager that if speedway were to cease at the venue, then there's no point in Island Speedway (IOW) Ltd continuing to operate.

 

That's it then. I withdraw my written support of what happens to the IoW. Just let fate take it's hand. I have endeavoured to be supportive and as always seem to be stymied into a corner where I need to defend myself all the time.

If you carefully read - as I am sure do other Posts people are asking similar questions to mine.

For my part, I was trying to stimulate interest into the IoW affair - I now see that's something not to be encouraged. So be i then.

Edited January 11, 2014 by Guest

[Ray Stadia]

I've had a look at the filed accounts of Island Speedway (IOW) Ltd at Companies House.

 

Obviously it's only a small company, just running speedway, and therefore doesn't require an audit and only needs to file basic abbreviated accounts, so there isn't much information available (i.e. just a balance sheet, no P&L account).

 

The last accounts filed were to 28/2/13 (so they cover the 2012 season).

 

These show that the company has assets of £19,230 and was insolvent to the tune of £113,861 at that date.

As I say, there is no P&L account available to the public, but deducting one balance sheet from the previous would suggest IOW Speedway made a loss of £29,703 in the year to 28/2/13 (£3,754 loss in the previous year, £3,076 in the year before).

 

 

 

So the modest losses up to the 2011 season seemed sustainable, but what happened in 2012 to cause a £30k loss? Has there been a similar loss in 2013? Was there a big rent increase? or some other big expense incurred?

If a company is insolvent to the tune of over £113k, isn't the company bust? Sorry Bryn, not trying to rub salt in the wounds, unless I am misunderstanding the terminology?

[John Leslie]

If a company is insolvent to the tune of over £113k, isn't the company bust? Sorry Bryn, not trying to rub salt in the wounds, unless I am misunderstanding the terminology?

 

Not necessarily. The company is bust if it cannot meet its liabilities as they fall due.

Within the company's liabilities of £148k there may well be a loan from a generous benefactor which he has no intention of calling in at the moment. (others have talked of someone pumping in over £100k).

 

It's only like Manchester City. They would be bust if it wasn't for the rich Shiek's pumping in hundreds of millions. The only difference is that the Sheik has turned his loans into shares so their balance sheet doesn't become massively insolvent.

[Bryn]

 

Not necessarily. The company is bust if it cannot meet its liabilities as they fall due.

Within the company's liabilities of £148k there may well be a loan from a generous benefactor which he has no intention of calling in at the moment. (others have talked of someone pumping in over £100k).

 

It's only like Manchester City. They would be bust if it wasn't for the rich Shiek's pumping in hundreds of millions. The only difference is that the Sheik has turned his loans into shares so their balance sheet doesn't become massively insolvent.

As I've stressed several times I'm not an accountant so forgive me for asking JL but it's obvious you're in a position to answer! My simple query is would 'loans' appear in filed accounts given to company shareholders or not together with any relevant details e.g. amounts, when made, by whom and length of loan?

I can confirm once again that the company, i.e. Island Speedway (IOW) Limited holds a long term lease on the entire site (I believe there's still 44 years left on that lease), receiving income from other activities in addition to speedway.

Edited January 11, 2014 by Bryn

[The Doctor...]

 

That's it then. I withdraw my written support of what happens to the IoW. Just left fate take it's hand. I have endeavoured to be supportive and as always seem to be stymied into a corner where I need to defend myself all the time.

 

Perhaps maybe then it's time to ask yourself why ? It always seem to be you doesn't it ?

[John Leslie]

As I've stressed several times I'm not an accountant so forgive me for asking JL but it's obvious you're in a position to answer! My simple query is would 'loans' appear in filed accounts given to company shareholders or not together with any relevant details e.g. amounts, when made, by whom and length of loan?

 

I'm only working from very limited Companies House information from 28/2/13. I'm not a shareholder so I've no access to any fuller info. (In fact my only involvement with IOW is that I've been there as a spectator the odd time, think the place is great, and wouldn't like to see it close).

 

The abbreviated balance sheet at 28/2/13 shows current liabilities of £129,252 and long term liabilities of £18,546. Any loans would be included in these figures. I would expect a full copy of the accounts, which shareholders would see, to have notes which give some kind of breakdown of these figures.

 

From here I'm only guessing, but I would imagine that the company couldn't continue to trade if these creditors suddenly demanded to be paid their £148k, so I'd guess that a significant proportion of the £148k is owed to someone who isn't looking to be paid anytime soon (if at all) - This leads me to the conclusion that a generous benefactor is supporting the company with a loan.

 

Like I say though. I have no inside information, so I'm only interpreting the limited Cos. House info as I see it.

[Bryn]

Thanks for that JL and I can confirm that shareholders have not been provided with any additional info to that from Companies House which you have interpreted.

[Halifaxtiger]

 

Perhaps maybe then it's time to ask yourself why ? It always seem to be you doesn't it ?

 

 

 

If you don't like his posts, put him on ignore.

 

Better than being personally abusive.

[Guest]

 

That's it then. I withdraw my written support of what happens to the IoW. Just let fate take it's hand. I have endeavoured to be supportive and as always seem to be stymied into a corner where I need to defend myself all the time.

If you carefully read - as I am sure do other Posts people are asking similar questions to mine.

For my part, I was trying to stimulate interest into the IoW affair - I now see that's something not to be encouraged. So be i then.

 

 

 

Perhaps maybe then it's time to ask yourself why ? It always seem to be you doesn't it ?

 

 

 

 

 

If you don't like his posts, put him on ignore.

 

Better than being personally abusive.

 

 

As Voltaire said: "I disapprove of what you say, but I will defend to the death your right to say it."

Except it would seem on the BSF these days!

[jim the whipper]

 

I very much appreciate you comment. I did mention in message 235 that my business knowledge stemmed from when I had just left school and was 16 years old - a clue to how far back was that I named Eric Langton, Jack Parker and Ron Johnson as at that time my favourite riders.

However,I see no justification business wise why the successful arms of a company should continually support the one that makes continuing losses (although I would love to see an exception made to keep IoW speedway active). In harsh business terms it's "pouring good money after bad" so to speak.

A business parallel is that companies close down those stores in their group that fail to make a profit - they don't hive the profits from the successful ones to keep the deadwood afloat.

The sole intent of normal business is to make cash profit , IOW speedway Ltd , seems to have been set up purely to finance speedway racing at smallbrook , so the other income streams are not carrying a failing part of the business , they are ensuriing the continuation of the reason the business was started

[Guest]

 

I very much appreciate you comment. I did mention in message 235 that my business knowledge stemmed from when I had just left school and was 16 years old - a clue to how far back was that I named Eric Langton, Jack Parker and Ron Johnson as at that time my favourite riders.

However,I see no justification business wise why the successful arms of a company should continually support the one that makes continuing losses (although I would love to see an exception made to keep IoW speedway active). In harsh business terms it's "pouring good money after bad" so to speak.

A business parallel is that companies close down those stores in their group that fail to make a profit - they don't hive the profits from the successful ones to keep the deadwood afloat.

 

 

The sole intent of normal business is to make cash profit , IOW speedway Ltd , seems to have been set up purely to finance speedway racing at smallbrook , so the other income streams are not carrying a failing part of the business , they are ensuriing the continuation of the reason the business was started

 

That's an excellent response to mine Jim. We have really got down to the nitty-gritty now of the company purpose in regard to IoW.

And I don't apologise for making a return to the debate again...!!

[The White Knight]

 

 

 

That's an excellent response to mine Jim. We have really got down to the nitty-gritty now of the company purpose in regard to IoW.

And I don't apologise for making a return to the debate again...!!

 

 

Nor should you. It's what the Thread is about.

[The Doctor...]

 

If you don't like his posts, put him on ignore.

 

Better than being personally abusive.

 

Why should i mess about with that ? it's not acceptable for him to ride roughshod through the forum as it is, and i cetainly won't be giving him more leeway by putting him on block or ignore, or whatever this forum offers to deal with people like him.

 

I noticed my factual post was reported as personal abuse and therefore edited by the mods. No problem with that mods.

 

Anyway, i'm off out for a walk soon...coffee gustix ?

[SCB]

IF someone could provide 10k for the airfence would the club run? I ask because potentially I may know of company in a position to do some sponsorship. I dont know at what level but I'm not mentioning it unless I know the club will run. feel free to PM if preferred.

Anyone? If someone could confirm ASAP as I'm seeing someone in the morning who may be able to help.

[Deano]

Anyone? If someone could confirm ASAP as I'm seeing someone in the morning who may be able to help.

 

Have you PM'd the OP? Might get an answer quicker. Fingers crossed you get an answer before tomorrow.