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Scarlets in debt crisis

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Scarlets accounts reveal debt crisis

Scarlets accounts reveal debt crisis

THE ANNUAL accounts of the regional rugby company show that it incurred a loss of over £1.7m in the year to June 2014 and that Scarlets Regional Ltd now has a cumulative deficit of over £14m.

In addition, the report shows that the Scarlets are barely half-filling their stadium for home games. Parc y Scarlets capacity is 14,870. Average attendance at home games is recorded as being ‘over 7,000 per game’.

In light of the appalling figures, the accounts go on to set out that the region’s continued operation is possible only with the support of the WRU (through payments made to the region) and the continued willingness of shareholders to plough money into it. The region recently made what amounted to a debt for equity swap, by which larger shareholders increased their own holdings at the expense of small shareholders. The rights issue conditions also provided that first preference in any other offering would be given to those larger shareholders and not to supporters. While the Directors’ report is upbeat on the prospect of the future of the Scarlets region, much of that confidence stems from the agreement with the WRU continuing and the Scarlets providing sufficient international players who qualify to receive dual contracts from the Welsh governing body. The accounts reveal that the region spent £200,000 on battles with the WRU over the level of support offered to regional rugby and the dual contract issue.

More worrying, however, is the conclusion reached by the auditor – James & Uzzell Ltd. The auditor’s comments on the accounts point out ‘the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern’. The stadium, construction of which was largely bankrolled by the local authority, is given a ‘carrying value’ (the original cost of an asset, less the accumulated amount of any depreciation) of around £9.9m.

A particular thorny matter for the local authority is the fate of the Scarlets involvement in the Eastgate Centre, into which further considerable resources were ploughed by the authority.

Way back in December 2013, The Pembrokeshire Herald published details of the sale of a car park to the Marston’s chain of pubs. Carmarthenshire Council were the freeholders of the property while the Scarlets held a 150 years’ leasehold on it granted by the Council. The car park was originally ear-marked for a retail development, but instead was transferred to Marston’s for £850,000.

Controversy then arose in relation to the division of the sale proceeds between the Council and the Scarlets. The council received £200,000 for its interests and the Scarlets £200,000. Questions have been raised, however, about approximately £280,000 being given to the Scarlets for what are described as ‘allowable expenses’. The ‘expenses’ were allegedly used for paying off a commercial loan the Scarlets had taken out to fit out its shop and restaurant within Carmarthenshire County Council’s Eastgate development and were a further example of the council’s willingness to bankroll the rugby region with public money.

The Scarlets’ accounts disclose that the £280,000 ‘investment’ by the council in the Scarlets’ project at Eastgate has been written off as a complete loss by the region, who have also sublet the shop units. The region’s accounts imply that without the free rent period, which is coming to an end, the lease is not commercially viable.

Eastgate has never been fully let since opening.

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Llandeilo gas works to begin say Wales & West Utilities

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WALES & West Utilities will shortly begin work to upgrade gas pipes in Llandeilo.

Wales & West Utilities has liaised with Carmarthenshire County Council to plan the work and it has been agreed that work will commence after the town has celebrated the Festival of Senses.

The £123,000 investment scheme, which is essential to keep the gas flowing safely to heat and power local homes and businesses, will begin in New Road on 21 November. This section of work will be complete before Christmas and Wales & West Utilities will return to the town next year to undertake further work in the Crescent Road area. Barring any engineering difficulties, work in the town will be complete by the end of February next year.

Wales & West Utilities Adam Smith is managing this gas pipe upgrade work. He said: “Working with the Council, we have planned this work to accommodate the needs of the town.

“While most of the gas network is underground and out of sight, it plays a central role in the daily lives of people across Llandeilo. Whether it’s heating your home, making the family dinner or having a hot bath, we understand how important it is for your gas supply to be safe and reliable and there when you need it.

“We know that working in areas like this is not ideal, but it really is essential to make sure we keep the gas flowing to homes and businesses in the area, and to make sure the gas network is fit for the future. We’ll have a team of gas engineers on site throughout the project to make sure our work is completed as safely and as quickly as possible while keeping disruption to a minimum.

“This work is essential to keep the gas flowing to local homes and businesses today, and to make sure the gas network is ready to transport hydrogen and biomethane, so we can all play our part in a green future.”

Our Customer Service Team is ready to take your call if you have any questions about our work. You can contact them on freephone 0800 912 2999.

Alternatively, you can contact us on Twitter @WWUtilities or Facebook.com/WWUtilities.

Wales & West Utilities, the gas emergency and pipeline service, brings energy to 7.5m people across the south west of England and Wales. If you smell gas, or suspect the presence of carbon monoxide, call us on 0800 111 999 straight away, and our engineers will be there to help any time of day or night. Before visiting, we’ll ask you to let us know if you or anyone in your household, is experiencing Coronavirus symptoms or self-isolating. We’ll still come and help you: but our teams will take some additional precautions to keep us all safe.

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Police appeal following theft of items from Home Bargains Crosshands

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OFFICERS from Dyfed Powys Police have confirmed that they are investigating the theft of items, including a Christmas Nutcracker Ornament valued at £129.99, from the Home Bargains store in Crosshands, Carmarthenshire.

The theft occurred at about 12:40pm on Tuesday, 27th September 2022.

Officers have carried out all possible lines of enquiry, and are now appealing for help from the public.

They would like to identify the people in the CCTV image, who may have information that could help the investigation.

Anyone who knows who the people are, or if you believe you are pictured, contact Dyfed-Powys Police.

This can also be done either online at: https://bit.ly/DPPContactOnline, by emailing 101@dyfed-powys.police.uk or phoning 101.

If you are deaf, hard of hearing, or speech impaired text the non-emergency number on 07811 311 908.

Please quote reference DPP/2006/27/09/2022/02/C

Alternatively, contact the independent charity Crimestoppers anonymously by calling 0800 555111, or visiting crimestoppers-uk.org.

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Witness appeal after car is stolen and burnt out

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DYFED-POWYS POLICE is investigating the theft of a car from a property in Lando Road, Burry Port, which was later found burnt out in Pembrey Country Park.

Officers are appealing for witnesses to the theft of the blue Ssangyong Rexton, which took place sometime between 5pm on Friday, 11th November, and 9am on Saturday, 12th November, and would like to speak to anyone who may have information or CCTV or dashcam footage.

Anyone with information that could help officers with their investigation is asked to report it to Dyfed-Powys Police, either online at: https://bit.ly/DPPContactOnline, by emailing 101@dyfed-powys.police.uk, or by calling 101. If you are deaf, hard of hearing, or speech impaired text the non-emergency number on 07811 311 908.

Quote reference: DP-20221112-109

Alternatively, contact the independent charity Crimestoppers anonymously by calling 0800 555111, or visiting crimestoppers-uk.org.

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