A second consecutive million-pound loss for Morecambe

The Shrimps posted a pre-tax loss of £1,194,057 which followed on from a deficit of £1,269,916 a year earlier.

It was a year which saw the Shrimps finish 15th in the club’s first season back in League Two, in addition to reaching round three of the FA Cup.

Their turnover dropped from £5.26m to £4.94m, with the football-related revenues bringing in £2.98m as opposed to £3.33m the year before.

Income generated by the club shop, hospitality and corporate offerings was £1.512m, a slight drop to the £1.602m in 2023 – despite the club shop taking £22,000 more in that time.

Player sales also increased by more than £90,000, with £332,000 coming in; up from £241,250.

In terms of staffing levels, Morecambe’s workforce decreased from 215 to 203 and the total wage bill dropped from a little more than £4m to £3.5m.

Fixed assets, both tangible and non-tangible, have reduced to £7.95m from a little more than £8m, while net assets went down from £4.98m to £3.8m

The accounts also show a figure of £3.1m being owed to creditors – a rise of £1m from the £2m in 2023 – with £275,000 in interest charges.

The strategic report included within the accounts also contains a warning as to the club’s future financial wellbeing.

That comes amid a protracted sale process – which is due to reach the 1,000-day milestone in May – along with the club’s fight to stay in the EFL.

The report reads: “The directors have prepared projections up to 31 May 2026. The projections indicate that, during the year ending 31 May 2026, further funding of between £950,000 and £1,650,000 will be required.

“This range takes account of various assumptions, including the league status of the club for the 2025/26 season. The projections also assume there will be no repayment of loans due to the company’s key lenders.

“Post-year end, the company has agreed formal loan terms with certain key lenders who were owed £775,000 at 31 May 2024. Under these terms, the loans are now repayable five years from drawdown, so will be repayable between April 2028 and May 2029.

“There are no formal loan terms with the majority shareholders, who were owed £1,338,243 at 31 May 2024. This balance has increased to £1,535,971 as at the date of approval of these financial statements.

“At the date of approval of these financial statements, the majority shareholders continue to explore the sale of their shares in the company and the board are confident that they will not seek repayment of their loan balance.

“The board are confident that additional funding will be made available for the company to continue to operate and meet its obligations as they become due over the period to 31 May 2026, whether this be from the current majority shareholders or other key lenders, or by way of new investment following the conclusion of the sale process.

“Whilst the directors believe that the company will be able to continue to operate and meet its obligations over the next 12 months, the impact of the ongoing sales process and requirement for additional funding which is at the discretion of the key lenders naturally brings uncertainty as to future ownership, financing and investment.

“However, the uncertainty around the future ownership, financing and investment constitutes a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern and, therefore, to continue realising its assets and discharging its liabilities in the normal course of business.”