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Hemmings & Co keeping North End afloat
Preston North End would not survive without the support of its major shareholders, according to chairman Derek Shaw.
The Lilywhites' supremo said only the generosity of multi-millionaire Trevor Hemmings and the Friends of Preston North End (FPNE) consortium, which includes Shaw, is keeping the club afloat.
It unveiled losses of 9.17m, which includes the drop in value of its players, yesterday and an operating loss of 5.94m due to soaring player wages.
The chairman admitted that the Championship outfit is struggling to meet the demands of its supporters as it bids to reach the Premier League.
He said: "It is becoming increasingly difficult to continue to meet the
expectations of fans who want the club to be competing for promotion every year.
"Of course, we all want to see this level of success, however, the competition from the relegated Premier League sides and their financial resources makes this extremely difficult.
"We have once again been heavily reliant on the assistance of our major shareholder, Guild Ventures (Hemmings' investment vehicle) for continuing financial support.
"Without this we certainly could not continue to compete with the cost of the squad we have maintained, which remains well in excess of our total football income."
Just hours before announcing their financial results to the Stock Exchange yesterday, the club announced that it had negotiated a one-year extension on the deadline to repay 8.5m of loans to Hemmings' Guild Ventures investment vehicle and a further 1.5m to FPNE.
Debt expert warns clubs – see Frifay's Evening Post
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Weather for Preston
Tuesday 07 February 2012
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Temperature: -6 C to 4 C
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