Prior to Monday's Board meeting at which James Aughterson presented a revised Budget and Cash flow forecast for the 2010/11 season, James met with Peter Sheppard for 3 hours to run through the figures and ensure that nothing material had been overlooked. Peter Sheppard confirmed his agreement with James's figures.


The nature of Woking FC's seasonal cash flows is that the summer months are the strongest with season tickets, sponsorships, programme and pitch-side advertising income for the season all largely coming in over the summer. Once October arrives the pattern is that we face net month cash outflows through to the end of April, when the next season's funds start to boost the bank balance. The costs for the forthcoming season are fairly well known as nearly all the players are on contracts through to the end of the season and, in our experience, it is unrealistic to expect to be able to make any significant savings in this regard once the contracts are signed.


The cash flow forecast James presented to the Board showed cash running out in October and the position then deteriorating each month through to April 2011 before improving slightly in May and June 2012. The projected deficit at the end of April 2011 was nearly £200k and this is the figure Chris Ingram subsequently agreed to underwrite. James reported to the Board that his assumptions were largely conservative and various events such as a cup run, improved commercial performance and the Harry Arter tribunal fee could improve the situation somewhat. However, the likelihood of this averting the need for a significant cash injection this season was considered negligible to non-existent by both James and Peter Sheppard.


The Directors were asked whether they could suggest a solution to this problem and none was forthcoming. At this stage the Board was in the position that they knew it was almost a certainty that funds would run out before the end of the year without any real prospect of raising the funds to cover the deficit. Company Law requires directors to act in such circumstances to primarily protect the interest of current and future creditors and the plan was to obtain the advice of an Insolvency Practitioner on Tuesday.


Having received the cash flow forecast with the Agenda for the Board meeting on Sunday night, Peter Jordan, David Taylor and Jane Spong met privately with Shahid Azeem before the Board meeting. Due to the shocking nature of the finances they asked him to offer his resignation and he agreed to do so.


Chris Ingram met with the directors (including Shahid) after the formal Board meeting had closed and was asked whether he would underwrite the 2010/11 cash deficit to enable the club to avoid taking Insolvency advice. After consideration, Chris agreed to do so on Tuesday morning.


Whilst the 2010 accounts have yet to be prepared, they are expected to show a loss of at least £150k and a net deficit on the Balance Sheet. The accounts will undoubtedly show a major deterioration in the club's position compared with 31 May 2009. The club was debt-free; it no longer is. This unbudgeted loss was funded by Peter Jordan (£100k) and Shahid (£30k). It is true that the club has made big losses in prior years. However, this was always with the prior knowledge (since 2002) that Chris Ingram had agreed to provide the funding before the season started. Most professional football clubs in England make losses, presumably on the basis they have funding in place to cover the budgeted losses. To keep incurring losses with no confirmed funding would have potentially exposed the directors to personal liability for the club's debts.


Now that we have Chris's commitment to underwrite the budget we have the chance to reconsider the club's future ownership and funding strategy without its very existence being at stake. Graham Baker has been informed that he won't be asked to make savings on the playing side in the current season. Staff at the club have been assured that their salaries are in the budget and the funding is there to pay them through to 31 May 2011. Suppliers can trade with the club with confidence they will be paid.


- The Board of Woking Football Club.