Torquay United AFC is continuing the important work of strengthening the Club’s balance sheet and putting the Club on a firmer financial footing for the future.
As part of that process, the Club has completed a series of transactions involving Big in Business Limited, the company through which the Bryn Consortium holds its majority shareholding in Torquay United.
The first step has been to capitalise £1.062m of previous loans made by Big in Business Limited into the Club. In simple terms, this means that money previously shown as a debt owed by the Club has now been converted into shares. This is positive for the Club because it removes that debt from the balance sheet and reflects the long-term commitment of the Club’s majority shareholder.
Big in Business Limited is also advancing a further £300,000 to support the Club’s working capital ahead of the new season. This amount will also be capitalised into shares, meaning it will not remain as debt in the Club.
Michael Westcott, Co-Chairman of Torquay United AFC, said: “Capitalising these loans is an important step in reducing the Club’s debt burden and strengthening the balance sheet. It gives Torquay United greater flexibility as we look at the medium and long-term financing of the Club, particularly as we embark on future-proofing Plainmoor and developing and investing in new areas across the football club. All seven members of the Bryn Consortium remain committed to preserving the long-term sustainability of Torquay United and ensuring the Club is built on firmer foundations for the future.”
Following these transactions, the Club’s shareholding is updated as follows:
| Shareholder | Number of shares* | New shareholding |
| Big in Business Limited | 2,890,968 | 86.15% |
| Torquay United Supporters Trust | 395,062 | 11.77% |
| Other legacy shareholders | 69,696 | 2.08% |
*Note that there are different classes of shares, however all shares rank equally except for TUST’s shares which have enhanced rights as explained below.
In order to complete the process properly and meet legal requirements, formal voting documents have been sent by post to more than 600 historic shareholders of Torquay United AFC. These documents relate to the resolutions required to approve the creation and issue of the new shares.
A copy of the letter sent to shareholders can be viewed here.
Historic shareholders receiving the documents should note that the resolutions have now passed, with both Big in Business Limited and Torquay United Supporters Trust voting in favour. The letter had explained that the resolutions would pass once shareholders holding more than 75% of the Club’s shares voted in favour, and that Big in Business Limited and TUST together held sufficient shares to meet that threshold.
The Club recognises that these transactions reduce TUST’s percentage shareholding in Torquay United AFC. However, it is important to stress that through its shareholding TUST retains its protected position within the Club’s governance, including its two director positions and the heritage protections that safeguard the Club’s identity, colours, name and home.
The Board remains committed to working closely with TUST and its members. As part of that, the Club will also work with TUST on the issue of further shares to TUST connected to future supporter investment through the Forever Yellow Fund.
Nick Brodrick, Chairman of Torquay United Supporters Trust, said: “TUST recognises the commitment and investment being made by the Bryn Consortium to strengthen Torquay United and support the Club’s long-term future. The Forever Yellow Fund gives supporters an important route to invest in the Club through TUST, while also helping supporters influence how that capital is deployed across the Club. We look forward to continuing to work constructively with the Club and the consortium to protect and build Torquay United for the long term.”
Supporters who want to play their part in strengthening the Club for the long term are encouraged to support the Forever Yellow Fund and help TUST continue to invest in Torquay United’s future.
Any shareholder with questions about the letter should contact samb@torquayunited.com.
