The chairman of Morecambe FC says he's confident the club can meet its financial obligations after it was revealed the Shrimps made a loss of more than a million pounds for the third year in a row.
The latest accounts, prepared by Munir Tatar for M.Tatar & Associates, show that a further loss of around £2m is predicted for the end of the tax year to May 31, 2026, and that the future of the club as a limited company is dependent on the current owners, Panjab Warriors Sports Limited, continuing to fund the deficit.
The financial year 2024/25 was Morecambe's 18th consecutive season in the English Football League, and represented its eighth year operating a Category 3 Academy.
The Shrimps posted a loss before tax for the year of £1,023,450, compared to losses of £1,194,057 in 2023/24, and the loss made in 2022/23 of £1,269,916, according to audited accounts filed for the year ending May 31st 2025, and published on the Companies House website.
The year was a turbulent period for the club, with a protracted ownership takeover and one that ended with the Shrimps being relegated from the EFL after 18 years. That was Morecambe’s third relegation in four seasons, and sees the Shrimps competing in the sixth tier of English professional football for the first time since 1995.
By contrast, the 2021/22 financial year – following Morecambe’s promotion to League One - ended with the Shrimps posting a profit of almost £1.3 million.
On the field Morecambe finished bottom in League Two, relinquishing Football League status, but did get to the third round of the FA Cup, with a lucrative trip to Premier League giants, Chelsea.
Football turnover – which would include matters such as ticket sales – rose from £2.97m to £3.41m, while revenue from the club shop, corporate sources and hospitality was broadly similar to the previous year, at just under £1.6m.
The total wage bill of the club - which includes 199 employees, both playing staff as well as management and non playing staff, plus pension and social security contributions –also remained similar to the previous period, at around £3.6m.
Total turnover came in at £5,076,300.
The club borrowed more money during the period, with additional loans of more than £900,000 on the balance sheet, to take amounts owing to creditors to just over £3.8m, of which loans make up almost £3.1m of the total.
A statement in the accounts specifies that during the year and to 17 August 2025, the Club was controlled by Bond Group Investments Limited, which held 78% of the issued share capital. On 18 August 2025, control transferred to Panjab Warriors, which acquired 100% of the issued share capital. PWSL is 85% owned by JKM Capital Ltd, which is in turn 100% owned by Morecambe FC chairman, Kuljeet Singh Momi. JKM Capital Ltd is the ultimate controlling party.
The documents also show that Bond Group Investments Limited were paid interest of £346,472 on loans provided by them to the club, with the club charged an interest rate of 36% per annum.
The outstanding loan to Bond Group of £1,619,191, including accrued interest, was assigned to Panjab Warriors as part of the change of control transaction in August 2025.
To financial year end of May 31 2025, the Club owed £1,439,000 to JKM Capital Ltd.
JKM Capital Ltd and its consortium entities, including JKM Developers Ltd, and Dawlish Construction Ltd, advanced £664,000 to the Club to fund working capital requirements in advance of the formal completion of the takeover. Cumulative advances from the consortium totalled approximately £1.4 million by 31 March 2026, and have now been formalised in a Master Loan Agreement for £2,086,300.
This sum is interest-free, repayable over 10 years, and unsecured.
Overall, the accounts show Morecambe FC with ‘tangible fixed assets’ of £7.94m.
Writing in the Club’s Strategic Report, Kuljeet Singh Momi said: ‘’The directors are confident that additional funding will be made available for the Club to continue to operate and meet its obligations as they become due over the period to 31 May 2027.
‘’In forming this view, the directors have had regard to the funding already provided since the takeover, the interest-free terms of the Master Loan Agreement, and the written commitment from Panjab Warriors to fund the Club for at least twelve months from the date of approval of these financial statements.
‘’However, the scale of the projected cost reductions required, the consecutive relegations, and the Club's dependence on a single shareholder group constitute a material uncertainty that may cast doubt on the Club's ability to continue as a going concern.’’
You can read the accounts in full here
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