The debt, despite what you say KPB, cannot simply keep rising. The increase of T/O matters little if the entity isn't producing a profit. ROLLO is spot on there.
If the investment bond was loan stock (essentially an unsecured loan) which, given the coupon / yield percentage paid out, I would suggest it is. If the debtor payments cannot be maintained, the firm will be placed into administration with assets and all stocks frozen. The bond holders cannot liquidate their investment and will be at the back of the queue when all assets are sold.
So, with their debt increasing, if Pests were to be placed into administration, then the likelihood of the investor receiving their investment back is diminishes with the more borrowing the organisation takes on.
As I said at the start, I would be very, very concerned if I were a Pests supporter.
- On the board
But so long as the rest of the commercial business at the Ricoh continues and Wasps rugby maintain a Champs Cup place they'll have decent enough income.
Regular accounting and reporting to their regulator should keep things in check, but as a guy on the Wasps site says 'when you buy a house with a mortgage you don't expect to be able topay it off after a couple of years...all they've done is borrow a bit more for double glazing and a new car.....but they've had a pay rise so can afford it. But as ever...YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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King Prawn Bhuna