DORCHESTER Town’s shareholders will decide at an AGM on Thursday, December 11 whether they want to set the wheels in motion for their club to become a Community Benefit Society (CBS).

With that in mind, Echosport questioned board member David Martin about some of the key areas involved in the process.

The Magpies’ secretary also responded to queries surrounding the club’s current financial position.

Some supporters have expressed concerns over the club’s financial situation. What state of health are the club’s finances in?

The club is no different than most clubs at our level of football who struggle with finance and will face cash-flow problems sometime during a season.

At the start of the season, a club can budget quite accurately for expenditure but income is more volatile and relates to success on the pitch.

The club is up to date with all its commitments to creditors – the concern is generating income going forward.

The finances are micro-managed on a daily basis.

A majority of clubs at our level have a benefactor(s) funding the club, which Dorchester does not have.

What are the key financial figures over the last few seasons in terms of operating profits or losses?

In 2011/12 the club lost £11,877, in 2012/13 it made a profit of £35,355 and in 2013/14 it made a profit of £11,883.

Why has there been such a big reduction in turnover?

The reduction in turnover is due to a general reduction in income all around.

Losing to Shortwood in the FA Cup in 2013/14, compared to beating Plymouth on TV in 2012/13, had a big impact.

Considerable effort has been put into fundraising by several people but the money just does not seem to be there.

The local economy seems to be behind the national economy in growth.

How much historic debt does the club still owe?

It depends what you mean by historic debt. The club had an arrangement with Carlsberg which came to an end, fully settled, in October 2014 and an arrangement with npower over utilities going back three years, which will come to an end in February 2015.

Other than that all trade creditors relate to the current period.

Why are there still so many creditors despite the previous chairman saying a good deal of the historic debt had been paid off?

I cannot comment on the statement of the previous chairman.

The accounts to May 31, 2014 show creditors of approximately £170k.

A significant part of this sum is loans from former directors who are not pushing for repayment but were left on the balance sheet in case the club received a big windfall from a cup run or sale of a player.

Trade creditors, overdraft and HMRC are approximately £41k and all commitments are up to date.

How much money does the club need to break even this season?

The budget and cash-flow forecast shows the club needs to raise about £15k-£20k to break even to the end of the season.

The board are working on three commercial deals to try to cover this. Again this is volatile. For example, if the Boxing Day game against Weymouth was postponed due to bad weather we would have a problem.

In what ways will changing to a CBS affect the club’s finances?

Research by Supporters Direct suggests that the community are more likely to invest in, support and trust a community-owned organisation.

Many organisations are keen to help on a voluntary basis or in return offer a trade-off such as advertising reducing outgoings and costs.

It also allows additional sustainable income through annual membership fees.

Grant funding would be easier to secure, for example, financing a 3G pitch to UEFA standard or for infrastructure development that benefits the whole community.

However, in the current tough economic climate this may still be challenging.

How much of a majority is needed for the special resolution to go through?

A majority in excess of 75 per cent of those shareholders present and voting is required to pass the special resolution.

What will happen next if there is a ‘yes’ vote at the AGM in favour of a CBS? What hurdles have to be cleared for it to be implemented?

The FA have given a list of requirements; a cash-flow forecast, a budget for next season, a business plan, confirmation that all assets and liabilities will transfer to newco and we will also need permission from the Duchy of Cornwall to transfer the lease on the stadium. We will also have to register with the Financial Conduct Authority.

If the vote is passed and the club becomes a CBS, would the club ever be able to revert back to how it is now?

Yes, the members could vote for this.

What will happen if the shareholders vote ‘no’ at the AGM?

I would suggest the board would invite those who voted against to form a new board to take the club forward. However, we have a steering group of key share-holders and we don’t expect this to happen.

Are you happy that shareholders have received enough information with which to make a decision?

Yes. There was a mailshot some weeks ago and then further explanation together with the AGM papers. Shareholders have various ways of asking questions and many have.

Why should shareholders vote in favour as far as you’re concerned?

Community ownership is by definition inclusive and offers integration or strong partner- ships of other community/ member-owned organisations such as Dorchester Town Youth FC.

Without community ownership the club will miss a significant opportunity to develop, grow, and benefit both the local community and the football club itself.

Where do you see Dorchester Town FC in five years, both on and off the pitch?

A community club with a 3G pitch, a greater number of local players playing regularly in the first team, and back in Conference South.

The bottom line is the people of Dorchester, whether supporters or businesses, have to decide collectively if they want a team playing in a national competition.

We have a great core support from supporters and businesses but we need more.

More than 900 supporters went through the Dorchester segregated turnstiles for the match against Bristol Rovers yet only 280 saw the match against Corby.