Final Results
Celtic PLC
13 August 2003
13 August 2003
CELTIC plc
Preliminary Results for the year ended 30 June 2003
HIGHLIGHTS OF THE RESULTS
• UEFA Cup Finalists.
• Turnover increased by 6.5% to £60.57m.
• Profit from operations up 25.3% to £6.73m from £5.37m.
• Write off of deferred tax and advance corporation tax of £5.86m.
• Loss after tax £11.66m (2002: £3.04m).
• Year-end debt £17.78m (2002: £16.47m).
• Gross investment of £5.43m in intangible fixed assets, including the
signing of four new players.
For further information contact:
Brian Quinn, Celtic plc Tel: 0141 551 4276
Eric Riley, Celtic plc Tel: 0141 551 4276
Alex Barr, The Big Partnership Tel: 0141 333 9585
CHAIRMAN'S STATEMENT
For Celtic the last twelve months have illustrated vividly the volatility of
football as both a sport and a business. Early exit from the UEFA Champions'
League threatened to depress our sporting and commercial performance; but our
progress to the UEFA Cup Final, together with our efforts to retain the Scottish
Premier League (SPL) Championship, while ultimately unsuccessful, brought the
season to an exciting climax. On the whole, this will go down as one of the most
memorable years in Celtic's history.
Far from abating, the financial pressures on football clubs in Scotland have
intensified during the last year. Costs, particularly the costs of running a
successful football team have remained stubbornly high. Efforts to contain and
reverse these costs take time. The majority of contracts have a residual life of
more than one year and the effects on the wage bill and on amortisation - a
significant but under-publicised expense - can persist for some years.
Certain sources of revenue, such as ticket receipts and merchandise sales, can
be sustained by judicious pricing and imaginative marketing; and we have been
successful in these aspects this year. But they depend ultimately on football
success which cannot, of course, be guaranteed.
For Scottish Premier League clubs, income from television and radio in respect
of domestic competition fell substantially, as expected. Partly as a
consequence, many of these clubs have reduced the strength of their playing
squads, in some cases quite severely. The effects on the quality of the SPL
remains to be seen and it does not necessarily follow that smaller squads, with
greater reliance on home-grown players, will result in a deterioration in
playing standards. Tighter controls on costs and, more importantly, a change in
attitude in the direction of more efficient use of resources, have worked well
enough in other troubled industries. Football need not be an exception,
especially over the medium-term. It is also encouraging that serious
consideration is being given to the structure and functioning of the SPL; such
factors could be as important as finance in producing a more competitive and
attractive domestic league. It would therefore be pessimistic to take too gloomy
a view of the outlook for Scottish football.
Last year's Scottish Premier League Championship was probably the closest-ever.
Celtic's chances of retaining the title were virtually written off following one
or two indifferent results in April. However the team came storming back with a
succession of convincing victories and relinquished the title on the last day of
the season by a single goal. In the UEFA Cup the team went from success to
success, beating high quality sides from Spain, Germany, Portugal and England.
The final itself was memorable, both for the quality of the football and
fighting spirit of a Celtic side marked out as underdogs; and for the quite
magnificent support from our fans in Seville, estimated at 80,000 -
unprecedented for a travelling support in any European club competition.
The UEFA Cup run also had a major influence on our financial performance during
the year. The contribution to profits from all sources is estimated at £10.20m,
more or less equivalent to our European campaign the previous year. Total
turnover for the year exceeded £60m, an uplift of 6.5%. Sales of merchandise
rose by 14.6% to £11.46 million and ticket revenues also grew, by 10.0%. However
multimedia income was almost 4% lower, notwithstanding our progress in the UEFA
Cup.
Profit from operations of £6.73m was up by £1.36m on the previous year. Despite
this a pre-tax loss of £5.79m, up by £2.82m over the year, was recorded.
Deferred tax assets of £5.86m were written off, giving a loss after tax of
£11.66m. Debt at the end of the year amounted to £17.78m, an increase of £1.31m
over the year as a whole.
Many fans and commentators may find difficulty in understanding how the club
could reach the UEFA Cup final and still show an increased pre-tax loss for the
year. Operating expenses were £2.32m higher than the previous year at £53.84m.
In addition to lower multimedia income, a higher amortisation charge and a net
loss on player sales, each of the order of a £1.5m movement from the previous
year, also go a substantial way in explaining the outcome.
In brief, running a football squad that can compete both domestically and in
Europe is an expensive business and one that is capable of improvement in a
difficult business environment only over a period of time. In the meantime,
serious efforts continue to improve the cost profile of the company recognising,
of course, that excessive cost cutting can prove counter-productive. Some degree
of sanity is returning to the game after a period of over-exuberance. Though it
may sometimes seem tempting to go against this trend and speculate on future
success, Celtic will not be doing so, while maintaining our drive to be
successful in domestic and European competition. The Board will seek to continue
to strike the balance judiciously.
I should like to thank Martin O'Neill, his staff and the players for a memorable
season. We are particularly pleased that Martin has signed a one year rolling
contract. Success is measured not only by trophies won. Celtic has made
significant progress in the last two years in becoming a force in European
football once again. Our supporters also distinguished themselves by their
commitment and behaviour. Celtic's reputation for good football and phenomenal
support, in Europe and home, has been further enhanced. Your Board will seek to
maintain this success in the years ahead.
We announced in May 2003 that Kevin Sweeney would not be standing for
re-election at this year's Annual General Meeting. Sir Patrick Sheehy, who was
also due to retire by rotation at that time, has also decided not to stand for
re-election and has chosen instead to resign now. I should like to thank both
Sir Patrick and Kevin Sweeney for their excellent contributions over recent
years. Celtic, as a club, and I personally have benefited enormously from their
experience and wise counsel.
Brian Quinn, CBE
Chairman
OPERATING REVIEW
INTRODUCTION
The past 12 months have provided many glorious highlights, particularly on the
European stage.
A most memorable year saw Celtic once again take its place at the forefront of
European football in reaching our first European final in more than 30 years.
Celtic's appearance in the UEFA Cup Final in Seville was the pinnacle of a
season, which underlined not only the quality and resilience of the playing
squad, but also demonstrated again the tremendous passion which Celtic fans
worldwide have for the Club. The team's heartbreaking defeat was offset by the
astonishing spectacle of an estimated 80,000 Celtic supporters, believed to be
the biggest away support at any football match in history, travelling to
Seville.
The extent of the accomplishment of the team is further reinforced by the fact
that, in progressing to the UEFA Cup Final, Celtic defeated Blackburn, Celta
Vigo, Stuttgart, Liverpool and Boavista representing some of the best leagues in
the world.
This achievement was all the more remarkable given that the team also kept alive
a hugely spirited defence of its Bank of Scotland Premier League title until the
last minutes of the season's final fixture. The team also reached the final of
the CIS Insurance Cup and the quarter-final of the Tennents Scottish Cup.
However, the disappointment in not retaining the league title was tempered by
the knowledge that Scotland will have two representatives in the qualifying
stages of the 2003/04 UEFA Champions' League, giving Celtic an excellent
opportunity for further European football.
Undoubtedly a great deal of the success of the team is attributable to Martin
O'Neill and his two assistants, John Robertson and Steve Walford, ably supported
by the backroom staff. In his time at Celtic, Martin has transformed the playing
fortunes of the Club and we are delighted that he has signed a one year rolling
contract.
FOOTBALL INVESTMENT
Celtic continued to invest in the playing squad at a time when a number of clubs
were cutting back in an extremely difficult football sector, although at a
reduced level from last year. The acquisition of Fernandez at the end of last
season together with the investment in new players during the season, namely
Hedman, Laursen, Broto and Varga proved important with additional games being
played, particularly in European competition, during the season. The gross
investment cost this year in player acquisition equates to £5.43m (2002:
£12.11m). In addition a further £1.4m was paid in follow-up capital payments due
against players acquired in previous years.
Two of the Club's most promising players, Petrov and Maloney, also signed
contract extensions during the year, in keeping with the Club's policy,
following the Bosman ruling, to re-negotiate and extend the contracts of key
players. Since the year end, Varga and Under 21 prospect Craig Beattie have both
signed extended contracts.
YOUTH DEVELOPMENT
The benefits of investment in this key area were underlined last year not only
by the progression of young players such as Shaun Maloney, Jamie Smith and
goalkeeper David Marshall, but also by the successful performances which saw
both Celtic's Under 21 and Under 18 teams win their respective SPL leagues, with
the Under 18's also securing victory in the Scottish Youth Cup.
In order to build on this high level of achievement, the enhancement of our
youth development programme continues. We have significantly expanded and
strengthened our scouting and coaching systems and now have 40 scouts operating
in networks established throughout the whole of the UK and Ireland. This has
resulted in a number of English Schoolboy and Irish Youth International players
signing professional contracts with the Club.
In addition, the number of development centres throughout Scotland has more than
doubled from 6 to 13 in less than 9 months. This means that along with the elite
squads in the academy, we have over 400 young players currently undergoing
development and assessment.
The Youth Development Department has been restructured to align with best
practice in Europe. Additional age group teams have been introduced together
with revised technical and tactical coaching programmes and greater emphasis has
been placed on education, welfare and sports science initiatives.
The ongoing provision and enhancement of the youth development infrastructure,
as noted above, requires investment. Much of this funding comes from donations
from Celtic Development Pools. Total development income increased from last year
by 8.9% to £1.39m reflecting revenue from additional matchday lotteries. This is
a record year, which is particularly satisfying in such a mature market. The
weekly pool, with over 1,000 agents collecting weekly contributions from 38,000
supporters and the half-time draw, continue to be the most successful football
lottery schemes of their kind throughout Great Britain.
TICKET OPERATIONS
Season ticket sales of 53,464 were in line with previous year despite an uplift
of approximately 10% in standard season ticket prices. We are grateful for this
continued support, which assisted Celtic in continuing investment in the playing
squad as noted above. Total ticket income in the year of £30.48m was up on the
previous year by £2.76m largely as a result of the increased number of home
European matches played in the current year of 7 plus a UEFA Cup Final against 5
the previous year. In addition, corporate ticket income was up on the previous
year following the upgrade in certain facilities together with the increased
number of home European games.
At the beginning of the year an enhanced computerised ticketing system was
installed and proved invaluable during the season when the team's progression
through each round of the UEFA Cup led to tighter turnaround times. This was
demonstrated during March when almost 100,000 tickets were sold for the UEFA Cup
match against Liverpool and the CIS Cup Final against Rangers three days later.
Whilst March proved to be an extremely hectic and busy period it was eclipsed
when the team qualified for the UEFA Cup Final in May. The demand for tickets
for the match was unprecedented and the lead up to the final saw the Ticket
Office swamped with requests and enquiries from all round the world. The
allocation of tickets from UEFA was never going to satisfy the demand. After a
great deal of consideration, the Club elected to make tickets available to those
supporters who were members of the European Away Ticket Registration Scheme and
whom we had recorded as travelling to matches in the earlier rounds.
MERCHANDISING
Merchandising revenues increased by 14.6% to £11.46m following Celtic's most
successful ever home kit launch. Like-for-like sales increased by almost 5.4% in
a difficult retail market. The installation of a new EPOS system in June 2002
brought additional benefits in stock control and product analysis during the
year. The opening of the new retail store in Glasgow's Sauchiehall Street in
July 2002 increased the number of Celtic merchandise stores to nine. New
wholesale partnerships were formed with Woolworths and Big W, and a retail
Celtic concession unit was opened in Debenhams, Glasgow. Turnover also benefited
from the operation of the Edinburgh store for the entire year and from Seville
specific merchandise.
The launch of the new '100 Years of the Hoops' home top was the most successful
ever. The previous home top had sold over 65,000 units in 27 months. The new
home top surpassed this figure in just one month. The new home top continues to
sell well and a new away strip will be launched in August 2003.
MULTI MEDIA
Multi media revenues at £15.60m are 3.8% behind the levels achieved last year.
The exit to Basle in the Champions' League qualifying round in August 2002 was a
major blow to Celtic's ability to count on generating broadcasting and media
income from European competition comparable with last year. However, home ties
against opposition from Spain, Germany, Portugal and England (twice) generated
gross media revenues of approximately £5.90m with TV audiences for the Liverpool
v Celtic match peaking at six million viewers.
The broadcast rights market has been relatively difficult for a period of time.
Ultimately the SPL concluded two year agreements with BBC (terrestrial), Setanta
(pay per view), Octagon (overseas) and radio. As a result, the income received
from centrally sold domestic television rights has declined from last year by
approximately £1m.
The Club launched Celtic Replay in December 2002, an online premium content
channel, which delivers to monthly subscribers highlights of matches, live
audio, video programmes and other exclusively streamed content. Within the first
six months, Celtic Replay has exceeded expectations. The Celtic Replay product
has been further developed in the pre-season tours to Sweden and North America
and will continue to be monitored as the year progresses.
In addition, Celtic TV was developed further during the year. We continue to
experiment with live game production and transmission both on a pay per view
basis and on the Celtic website including the Road to Seville programme which
was broadcast live on digital satellite.
Our text messaging service has been maintained and we continue with daily
internet transmission to supporters from our website, which was also redeveloped
during the year and has assisted as a key driver in building and maintaining an
active supporter base. In total, Celtic now has over 270,000 registered users in
over 200 countries worldwide, underlining the growing importance of this global
audience.
Further research will be completed this year to assess the ongoing potential of
the various media products more closely.
Celtic publishing continued to progress with income from Celtic View, matchday
programmes and other publications up on the previous year by 8.5%. A Junior View
was introduced and a competition to identify the Young Reporter of the Year was
successfully launched in January. During the year, the Club also published two
further books being 'Hoopy Comes to Paradise' and the official UEFA Cup
hardback. Sales and pre-orders have exceeded expectations.
CELTIC PARTNERS
2002/03 also saw the establishment of the Celtic Partner Programme. Our close
and successful relationship with our kit supplier, Umbro, continued and both
parties benefited from European success and the launch of the new home kit.
An attractive three year shirt sponsorship agreement with Coors Brewing Limited
(Carling) replaced ntl who had been our previous partner for four years.
Carling, the UK's No.1 lager brand, has much experience in the sponsorship of
football, particularly in England. Carling will partner Celtic over the next
three years with a proactive and exciting programme that is already underway to
generate brand awareness and create much more interaction with Celtic supporters
nationwide.
In addition, the Company has also agreed a five year deal with MBNA for a new
Celtic credit card. For the first time a Celtic credit card will also be
available through MBNA in the USA and Canada to support the existing agreement
already in place domestically and in Ireland.
Phoenix Honda remained our principal vehicle sponsor for the ninth consecutive
year.
A new three year partnership commenced on 1 August 2003 with T-Mobile, part of
Deutsche Telekom who are the second largest mobile telephone company in the
world.
I take this opportunity to thank all our key sponsorship partners and look
forward to working closely with them in the coming year when it is intended to
conclude negotiations with further Celtic sponsors.
MARKETING
The Club's official membership scheme, the Celtic World Huddle, was launched in
April 2002 and in its first season over 65,000 members joined. The scheme
provides a strong communications platform between supporters and the Club and
brings many benefits and privileges to members throughout the season.
Celtic In The Community was launched towards the end of last season with the
emphasis behind the project to bring Celtic Football Club to everyone. The first
project launched was Soccer Schools 2003 in Scotland for 5-12 year olds.
2002/03 marked the inaugural Celtic Player of the Year Awards Ceremony. Over
40,000 nominations were received from supporters through online, text and
telephone voting.
The second official training day took place at Celtic Park in April with over
12,000 fans, many of them children, attending.
STADIUM
Stadium revenues at £1.64m are 2.4% behind 2002 mainly as a result of a decline
in the external security and stewarding contracts secured by Protectevent
Limited with catering income increasing.
The extensive refurbishment programme completed within a number of existing
corporate facilities in July 2002 together with certain service improvements and
Sodexho's franchise contract assisted in ensuring that catering income was 4.3%
up on the previous year. However, Sodexho decided to prematurely terminate the
catering contract and legal advice is being taken. At the beginning of June,
Celtic reverted to an in-house catering operation. A focus will be maintained on
quality of catering, value for money and standards of service in respect of all
concourse, corporate and non-matchday activities.
STADIUM INVESTMENT
The additions to the tangible fixed assets in the year of £1.75m include the
upgrade of the North Stand Lounges, conversion of the Celtic Suite, renovation
of the Walfrid Restaurant and Jock Stein Lounge and completion of the Training
Ground works at Westthorn, including the creation of 2 new artificial pitches.
In addition, a new retail unit was opened in Sauchiehall Street, Glasgow and
improved information technology systems, including new ticketing and EPOS
systems, were implemented.
In keeping with the ongoing programme of investment in Celtic Park, work
commenced following the last match of season 2002/03 to radically improve the
dressing rooms, players' facilities and on-site medical treatment areas. This
work will progress the Club's aim of achieving UEFA's coveted five-star stadium
status, making it eligible to host European finals.
SCOTTISH PREMIER LEAGUE
The dispute that threatened the future of the Scottish Premier League has now
been resolved. A revised set of rules and Articles of Association have been
agreed with effect from 1 July 2003. This now provides a stable basis on which
to take the domestic game forward.
SUMMARY
Following the outstanding European football performance Celtic managed to
contain the increase in its funding requirements. In addition, partly as a
result of Celtic's progression in the UEFA Cup last season has assisted
Scotland's UEFA coefficient and thus the winner of the 2003/04 Scottish Premier
League will gain direct access to the UEFA Champions' League group stage in
season 2004/05.
The football sector is going through a period of severe financial pressure.
Player pay has seen substantial growth resulting in wage inflation well in
excess of reasonably expected revenues. This trend has been exacerbated as media
markets continue to harden. Football clubs generally are beginning to tackle
their cost base and are much less likely to spend substantial sums in
anticipation of buying success or avoiding failure. Celtic is no different,
facing a rising cost base largely as a result of existing player contracts and
reduced domestic media revenues. A substantial effort will be required to ensure
costs are maintained within forecast revenues. Existing player contracts may
dictate the pace at which this can be achieved, as will progression in European
competition.
The key challenge facing your Board continues to be the management of salary and
transfer costs whilst achieving on-field success in order to yield satisfactory
financial return.
The Celtic Team
We have an excellent team here at Celtic, both on and off the field. Colleagues
have continued to perform above and beyond the call of duty and in return we
have made considerable progress towards making Celtic an employer of choice.
Following the 2002 Colleagues' Opinions Survey we launched a new culture change
initiative called 'The Celtic Way', which has assisted us in a number of key
areas including performance management, training and development and the
introduction of improved information technology systems.
Celtic has made a formal commitment to achieving the prestigious Investors In
People Standard, which seeks to ensure that the development of our people is
aligned to Group aims and objectives and we will continue to focus on
identifying and adopting best practice in order to become an employer of choice.
In May we were pleased to extend an invitation for colleagues to attend the UEFA
Cup Final in Seville to express our appreciation for their hard work throughout
a challenging year. The commitment shown by all members of the Celtic team has
been outstanding and I thank everyone for their contribution and achievements
during the year.
GROUP PROFIT & LOSS ACCOUNT
2003 2002
Operations
excluding
player Player
trading trading Total
£000 £000 £000 £000
Notes
TURNOVER 2 60,569 - 60,569 6,892
OPERATING (53,839) - (53,839) (51,522)
EXPENSES
------- ------- ------- --------
PROFIT FROM 6,730 - 6,730 5,370
OPERATIONS
EXCEPTIONAL 3 (397) (475) (872) -
OPERATING EXPENSES
AMORTISATION OF - (10,332) (10,332) (8,814)
INTANGIBLE
FIXED ASSETS
------- ------- ------- --------
OPERATING 6,333 (10,807) (4,474) (3,444)
PROFIT/(LOSS)
(LOSS)/PROFIT ON - (70) (70) 1,474
DISPOSAL OF INTANGIBLE
FIXED ASSETS
LOSS ON DISPOSAL OF (41) - (41) (107)
TANGIBLE FIXED ASSETS
------- ------- ------- --------
PROFIT/(LOSS) 6,292 (10,877) (4,585) (2,077)
BEFORE INTEREST AND TAXATION
------- ------- ------- --------
NET INTEREST PAYABLE (1,209) (897)
------- --------
LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION (5,794) (2,974)
TAX CHARGE ON LOSS ON 4 (5,865) (65)
ORDINARY ACTIVITIES
------- -------
LOSS FOR THE YEAR (11,659) (3,039)
DIVIDENDS - non equity 5 (1,457) (1,301)
------- -------
RETAINED LOSS FOR THE YEAR (13,116) (4,340)
------- -------
LOSS PER ORDINARY SHARE 6 (42.91p) (14.26p)
DILUTED LOSS PER SHARE 6 (42.91p) (14.26p)
All amounts relate to continuing operations.
There were no gains or losses recognised in 2003 other than the loss for the
year.
GROUP BALANCE SHEET
2003 2002
Notes £000 £000 £000 £000
FIXED ASSETS
Tangible assets 48,564 48,266
Intangible assets 20,513 25,895
------- ------
69,077 74,161
CURRENT ASSETS
Stocks 2,059 1,258
Deferred tax asset - 5,615
Debtors 4,660 4,532
Cash at bank and in hand 753 533
------- ------
7,472 11,938
======= ======
CREDITORS - Amounts
falling due within one year (11,760) (12,607)
Income deferred less
than one year (10,826) (8,682)
------- ------
(22,586) (21,289)
======= ======
NET CURRENT LIABILITIES (15,114) (9,351)
------- ------
TOTAL ASSETS LESS
CURRENT LIABILITIES 53,963 64,810
CREDITORS - Amounts
falling due after more than one year (19,644) (17,375)
------- ------
NET ASSETS 34,319 47,435
------- ------
CAPITAL AND RESERVES
Called up share capital 29,405 29,405
(includes non-equity)
Share premium - 21,222
Other reserve 21,222 -
Profit and loss account (16,308) (3,192)
------- ------
SHAREHOLDERS' FUNDS 7 34,319 47,435
------- ------
Approved by the Board on 13 August 2003
GROUP CASH FLOW STATEMENT
2003 2002
£000 £000
RECONCILIATION OF OPERATING LOSS TO NET
CASH INFLOW FROM OPERATING ACTIVITIES
Operating loss (4,474) (3,444)
Depreciation 1,405 1,051
Amortisation of intangible fixed assets 10,332 8,814
Provision for impairment of intangible fixed assets 475 -
Grants release (1) (1)
Increase in stocks (801) (30)
(Increase)/decrease in debtors (1,853) 774
Increase in creditors 1,611 359
-------- --------
Net cash inflow from operating activities 6,694 7,523
======== ========
CASH FLOW STATEMENT
Net cash inflow from operating activities 6,694 7,523
Returns on investments and servicing of finance (Note 9) (1,767) (2,296)
Capital expenditure and financial investment (Note 9) (6,236) (14,591)
-------- --------
Cash outflow before financing (1,309) (9,364)
Financing (Note 9) 1,529 17,133
-------- --------
Increase in cash 220 7,769
======== ========
RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET DEBT (Note 8)
Increase in cash in the period 220 7,769
Cash (inflow)/outflow from (increase)/decrease in debt (1,529) 5,383
-------- --------
Change in net debt resulting from cash flows (1,309) 13,152
-------- --------
Movement in net debt in the period (1,309) 13,152
Net debt at 1 July (16,473) (29,625)
-------- --------
Net debt at 30 June (17,782) (16,473)
======== ========
NOTES TO THE ACCOUNTS
1. ACCOUNTING POLICIES
Details of the main accounting policies adopted by the Group are consistent with
last year. During the year the Group adopted the Financial Reporting Guidance
for Football Clubs issued in February 2003 by The Football League, The FA
Premier League and the FA, although turnover within Note 2 continues to be
analysed in accordance within the headings of the business operations of the
Group. The implementation of this guidance has resulted in a change in the
presentation within the Group Profit and Loss Account to show the income and
expenditure relating to player trading separately from other operations. The
comparative figures within the Group Profit and Loss Account have been amended
accordingly.
2. TURNOVER
Turnover in respect of the five business operations 2003 2002
comprised: £000 £000
Professional football 30,480 27,715
Multimedia and communications 15,600 16,216
Merchandising 11,456 10,001
Stadium enterprises 1,644 1,684
Youth development 1,389 1,276
---------- ----------
60,569 56,892
---------- ----------
3. EXCEPTIONAL OPERATING EXPENSES
The exceptional operating expenses of £872,000 incorporated in the Group Profit
and Loss Account reflect £397,000 of operating costs and £475,000 of an
impairment provision to intangible fixed assets. The majority of these costs
reflect the early termination of Rafael Scheidt's contract and registration.
(2002 : £Nil).
4. TAXATION
The Group continues to follow the accounting treatment for deferred taxation as
prescribed in FRS19. Given the financial difficulties currently being
experienced by the football sector and the uncertainty over the timing and
extent of any future taxable profits, it has been decided to write off the
deferred tax and advance corporation tax assets, which provides a tax charge of
£5.86m (2002: £65,000).
5. DIVIDENDS
The non-equity dividend of £1,456,588 (2002: £1,300,645) comprises the
dividend of 6% of £555,966 (2002: £557,632) payable on 31 August 2003 to those
holders of Convertible Cumulative Preference Shares on the share register at 8
August 2003, together with the amount due in respect of the Convertible
Preferred Ordinary Shares fixed dividend of 4% of £900,622 (2002: £743,013)
which is payable on 31 August 2004.
6. LOSS PER SHARE
The loss per share has been calculated by dividing the loss for the period of
£13.12m (2002: £4.34m) by the weighted average number of Ordinary Shares of
30.56 million (2002: 30.43 million) in issue during the year. The diluted loss
per share has been calculated using the same figures as the basic calculation.
No account has been taken of share purchase options, as these potential ordinary
shares are not considered to be dilutive under the definitions of the applicable
accounting standards.
7. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
Group
2003 2002
£000 £000
At 1 July 47,435 30,059
Movements in year:
Retained loss for the year (13,116) (4,340)
Share capital issued in the year - 18,013
Share premium arising in the year - 3,703
---------- ----------
(13,116) 17,376
---------- ----------
At 30 June 34,319 47,435
---------- ----------
At 30 June 2003 Non-Equity Shareholders' Funds, defined in accordance with FRS4,
amounted to £31.30m (2002: £30.40m). This relates to the Convertible
Preferred Ordinary Shares, the Convertible Cumulative Preference Shares, the
Deferred Shares and the associated accrued dividends.
8. ANALYSIS OF NET DEBT
Other
At Non-Cash At
1 July 2002 Cash Flow Movements 30 June 2003
£000 £000 £000 £000
Cash at bank and in 533 220 - 753
hand
-------- -------- -------- ---------
533 220 - 753
-------- -------- -------- ---------
Debt due within 1 year (209) 29 (2) (182)
Debt due after 1 year 16,002) (2,000) 2 (18,000)
Hire purchase (795) 442 - (353)
creditor
-------- -------- -------- ---------
(17,006) (1,529) - (18,535)
-------- -------- -------- ---------
Net debt (16,473) (1,309) - (17,782)
-------- -------- -------- ---------
9. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT
2003 2002
£000 £000
Returns on investments and servicing of finance
Preference dividend paid (558) (599)
Interest paid (1,143) (831)
Interest element of hire purchase payments (66) (66)
Issue costs of non-equity shares - (800)
---------- ----------
Net cash outflow from returns on investments and (1,767) (2,296)
servicing of finance
---------- ----------
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (2,113) (2,229)
Payments to acquire intangible fixed assets (5,738) (14,615)
Proceeds from sales of tangible fixed assets 10 -
Proceeds from sales of intangible fixed assets 1,605 2,253
---------- ----------
Net cash outflow from capital expenditure and (6,236) (14,591)
financial investment
---------- ----------
Financing
Loans received 2,000 -
Loan instalments paid (29) (5,027)
Capital element of hire purchase payments (442) (356)
Issue of share capital - 22,516
---------- ----------
Net cash inflow from financing 1,529 17,133
---------- ----------
10. ANNUAL REPORT & ACCOUNTS
Copies of the Annual Report & Accounts will be sent to all shareholders in due
course.
The financial information set out above was approved by the directors on 13
August 2003 and does not constitute the Company's statutory accounts for the
years ended 30 June 2003 or 30 June 2002. The auditors' opinion on the 2002
statutory accounts is unqualified and does not include a statement under Section
237 (2) or (3) of the Companies Act 1985. The statutory accounts for 2002 have
been filed and those for 2003 will be delivered to the Registrar of Companies in
due course.
This information is provided by RNS
The company news service from the London Stock Exchange
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