Highlanders continue to struggle with a massive debt and have been warned that that they could become technically insolvent if the issue is not resolved.

The club’s latest financial standings were released at the recent Annual General Meeting (AGM) held in Bulawayo.

Presenting the financial state, treasurer, Donald Ndebele, indicated that total liabilities now stood at $793 215. Highlanders have a cumulative loss of $630 648.

An audit by PNA Chartered Accountants revealed that the debt Highlanders has could eventually make it difficult for the club to continue operating.

Stated a report which was read at the AGM:

“Without further qualifying our opinion we draw attention to Note 13, which describes a condition where the current liabilities of Highlanders Football Club exceed its current assets by USD 631 345.

The football club also has a cumulative loss of $ 630 648 .These along with other matters as set forth in Note 13 indicate the existence of a material uncertainty that may cast significant doubt on the club’s ability to continue as a going concern”.

In 2016, Highlanders realized a total of $120 476 from gate takings, while $51 673 came from their TV deal with Supersport, and $375 877 from Banc ABC.

Despite being the oldest, biggest and most successful club in the country, together with Dynamos, both teams have continued to struggle financially as they depend on few revenue streams, such as gate takings .

The two clubs have been hit with a further blow with principal sponsors Banc ABC reducing their package for 2017.

Comments

comments