Football Management

Commentary on the management of over 160 English football clubs by Dr John Beech, winner of the FSF Writer of the Year Award 2009/10 Twitter: @JohnBeech Curator of Scoop.it! Football Finance

Preston North End shares suspended

Posted by John Beech on May 14, 2010

Preston North End is being reported on the ShareCast website thus:

AIM-quoted PNE, which is managed by Sir Alex Ferguson’s son Darren, has received a winding up petition from HM Revenue and Customs and shares in the Championship football club have been suspended.

More here and here.

The Lancashie Evening Post is reporting that the debt is one for £400,000 to HM Revenue and Customs, that sum being PAYE from April’s wage bill (A).

The reporter, David Seddon, says “I understand that several Football League clubs were hit with similar orders by HMRC at the same time as North End. But Preston are the only PLC of that group of clubs and have therefore had to go public due to stock market rules.”  Watch this space!

PRESTON LATEST – 4 June 2010

Trevor Hemmings, who already owns 28% of the shares in the club through his company Deepdale PNE and has already loaned the club £13m, has now raised his shareholding to 51% (A). His takeover now requires formal approval by the other sharehol

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3 Responses to “Preston North End shares suspended”

  1. Allan Brown said

    Another club feeling the pinch after a stadium development

  2. http://www.londonstockexchange.com/exchange/prices-and-news/news/market-news/market-news-detail.html?announcementId=10519633

    The salient quote from that statement is:
    If the Offer is not accepted by sufficient PNE Shareholders (determined at the discretion of the Offeror) then the Offeror and Guild have indicated that the financial support provided by Guild will be withdrawn and no financial support will be provided by DPNE. The Board believes that without continued financial support from Guild, the Board would almost certainly have to conclude that there is no reasonable prospect of avoiding an insolvent liquidation, in which event the Group would cease to trade and would be forced into some form of insolvency procedure. As PNE Shareholders are already aware, HMRC has issued a winding up petition against the Company’s subsidiary for failure to pay PAYE and National Insurance contributions. Without a further injection of capital from Guild the Group has no way to meet this obligation.

    Looks as though Hemmings is basically pressuring the other shareholders into accepting his 5p per share offer (the price on the day they were suspended was 95p) by saying he will stop funding the club’s losses.

    Supporters were offered shares in £1000 bundles when they floated, and are now being asked to accept £50 for these shares or have their club wound up…

    • John Beech said

      Many thanks for that Steve.

      The Stock Exchange link is interesting too with respect to debt levels – almost £30 million, a very high level for a Championship club. I also note that this includes “£8,280,000, which was utilised to construct the new Invincible Pavilion Stand“. Yet again, a new stadium proves problematic.

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