Post by Deleted on Nov 18, 2017 19:54:01 GMT
Nov 18, 2017 19:51:18 GMT @westwindy said:
I don't enjoy being in the position of constantly being quoted on this issue and I wish someone else would take a look at the 2016 accounts and give an opinion. But I have to disagree with Bluebeard because the information is all in the accounts to be able to calculate what Dwane Sports charged.
We know the MSP Capital loan was £ 2, 730 000 at 30.6.15 and it still stood at £ 2, 730 000 when it was repaid on 16.2.16. The interest rate on that loan was disclosed in the 2015 accounts as being 1.2% per month. So, at 1.2% interest per month compound, in the 7.5 months from 1.7.15 to 16.2.16 the amount of interest payable to MSP in the 2016 financial year was £ 255 000.
The total loan interest shown in the 2016 accounts is £ 435 000 so deducting the £ 255 000 paid to MSP Capital leaves £ 180 000 payable on other loans.
The accounts state that the previous directors and shareholders waived the interest on their loans and bonds and since the only other loan was the one from Dwane Sports the £ 180 000 interest must have been payable to them
The amount of the loan taken up by Rovers on 16.2.16 (used to pay off the previous directors and shareholders loans and bonds) was £ 6,200 000 and by the end of the financial year the amount owing on the loan was £ 7,200 000
If interest of £ 180 000 was charged by Dwane Sports on a loan of £7,200 000 over 4.5 months (16.2.16 - 30.6.16) then in a 12 month period the amount would be £ 480 000.
£ 480 000 as a percentage of £ 7,200 000 is 6.66% so the annual rate is 6.66%