The board of Directors of Accra Hearts Oak have bemoaned the clubs inability to improve its financial performance over the last financial year, recording a whooping loss of 38.16% of the shareholders funds.
In the Board chairman’s report delivered to the shareholders at the 6th Annual general meeting, the board presented a financial report that did not look good in the dight of the shareholders, who have continuedly lost their shareholding funds over the years
“The club’s financial performance, in spite of all the efforts put in by the management to improve it, remained poor in the year under review.” Togbe Afede stated.
The report indicated that Revenue for 2022/2023 was Gh¢4,654,266, about 15.3% higher than that of the previous year of Gh¢4,036,982. Total Income was Gh¢7,548,567, a little over 37% higher than the previous year’s figure of Gh¢5,507,939. Direct expenses increased from Gh¢6,749,581 in 2021/22 to Gh¢8,485,743 representing 25.72% increase. General and Administrative Expenses increased from Gh¢2,358,820 in 2021/22 to Gh¢2,647,987, a 12.26% increase. Annual Finance Cost increased due to the capitalization of unpaid interest as well as additional loans from GT Bank and SIL. The end result of these was a loss before other comprehensive income of Gh¢21,573,707 compared to a loss of Gh¢17,072,888 during the 2021/22 financial year, being a 26.36% increase in terms of losses.
The club also recorded that “Total Assets was Gh¢34,441,394 compared to Gh27,239,612 at the end of 2021/22, an increase of 26.44%. There was a 40.32% increase in Total Liabilities from Gh¢83,768,668 at the end of 2021/22 to Gh117,544,157 at the end of 2022/23 as a result of the ongoing projects and increasing operational costs. Total Shareholders’ Funds decreased by 38.16% from (Gh¢56,529,056) in 2022/22 to (Gh¢78,102,763) at the end of 2022/23.
