Hearts of Oak records nearly GH¢1m loss, assets decline by 43% in 2011
Accra Hearts of Oak Sporting Club Limited has recorded a staggering loss of GH¢975,745 for the financial year, which ended on August 31, 2011.
The loss will be of great concern to the followers of the oldest existing Club in the country, after the giant-breaking decision to float their shares on the stock market.
The huge loss was revealed on Tuesday at the Annual General Meeting (AGM) of the Club in Accra, the first ever since the Club went public.
The lack of sponsorship, notably the absence of a headline sponsor following the discontinuation of the marriage with telecommunications outfit, MTN, largely affected the finances of the Club, despite making a modest profit of GH¢11,354 for the 2010 financial year.
From the comprehensive income statement, the total revenue by the Club was GH¢1,326,359, almost twice the general and administrative expenses – GH¢2,302,284 representing a drop of 26 percent.
Explaining further to the Club’s total share of 5,116,033 owned by 1,622 shareholders, each made a loss of GH¢84.12, as against GH¢0.9788 profit the previous year.
Togbe Afede XIV, Chairman of the Club announced that the total assets of the Club also declined by 43.5 percent from GH¢2,122,688 in 2010 to GH¢1,198,610 in 2011 mainly due to the losses.
“Total liabilities also increased by 1.4 per cent from GH¢3,628,274 in 2010 to GH¢3,679,941 in 2011. Shareholders Fund, however, increased from GH¢1,505,586 in 2010 to GH¢2,418,331 in 2011,” he added.
Responding to the state of the Club’s finances, the Chairman explained that several measures are being considered to arrest the situation that the Club is currently engulfed in.
Togbe Afede announced that discussions are being held with various organizations in the area of sponsorship ranging from platinum to bronze categories to beef up the Club’s finances and agenda.
“The Club’s future growth is essential as we aim to drive increased investment into the team to provide the best opportunity for success on the pitch.
“Our objective is to leverage the Hearts brand and derive maximum benefit from sponsorships. We will strive to have multiple sponsorships with both sports kit manufacturers and other companies.”
The Chairman also commended the various stakeholders for their support over the years’ and urged them to rally behind the Club in their quest to move the Club forward and to meet its past glory.
Source: GNA