Final Results

RNS Number : 9978G

Tottenham Hotspur PLC

30 October 2008

 



Tottenham Hotspur plc

('Tottenham Hotspur' or 'the Company')

Highlights for the year ended 30 June 2008

Financial Highlights	Year ended 30 June 2008 £m	Year ended 30 June 2007 £m
Revenue	114.8	103.1
Profit from operations excluding football trading and before restructuring and depreciation	35.0	32.0
Amortisation and impairment of registrations	(37.0)	(18.8)
Profit on disposal of registrations	16.4	18.7
Net finance costs	(3.9)	(1.9)
Profit on ordinary activities before taxation	3.0	27.7
Profit for the year from continuing operations	1.0	19.2

Summary and Outlook

• Record turnover up 11 per cent 

  • Strong performance from all parts of the business

  • £33 million spent on player acquisitions in financial year

  • Improved net cash inflow from operations

  • Net debt remains low at £14.6 million at financial year end

• New Training Centre has planning approval - new build expected to commence in 2009

• £44 million committed on property transactions to date in and around current stadium over the past 5 years

• Carling Cup win seeing return of silverware to Club

• World class mixed-use development scheme incorporating new 60,000 seater stadium, a club museum, restaurants, homes, shops and community benefits announced - on existing site and adjoining land

Commenting, Daniel Levy, Chairman of Tottenham Hotspur plc, said:

'We believe that the Club has continued to build a strong platform for the future through continued investment in the team, in the infrastructure of the Club and through the progress of the Training Centre. 

I am also delighted that we have now finally agreed upon a solution to the Club's future stadium requirements and we must now remain focused on taking the stadium development project through the various stages of consultation and on to planning.'

Enquiries:

Matthew Collecott, Finance Director            Tel: [phone]

Tottenham Hotspur plc                           www.tottenhamhotspur.com

John Bick                                                      Tel: [phone]

Hansard Group

Jonathan Wright                                          Tel: [phone]

Seymour Pierce Limited 

  Chairman's Statement 2008

I am delighted to report that in our 125th anniversary year we were able to produce another strong performance, a year in which the highlight was undoubtedly winning the Carling Cup in a thrilling game at Wembley against Chelsea, bringing the welcome return of silverware to the Club.  

Financial highlights

This year's financial results for the year ended 30 June 2008 have seen further substantial growth in revenue, an increase of 11% to £114.8 million and adjusted operating profit before restructuring, depreciation, amortisation and football trading of £35.0 million (2007: £32.0 million). The Club is generating significant operating revenues from the core business and net debt remains low at £14.6m, despite substantial spending on players and properties.

We have continued to generate operating profits assisted by our extended runs in Cup games and the ongoing strength of FAPL TV rights has given us the stability to move the business into its next phase of development - to progress the new Training Centre and embark on the Northumberland Development Project, albeit the latter is still at the early stages of consultation.

The Board has proposed a dividend at the same level as last year for the year to 30 June 2008 of 4p per ordinary share which amounts to £3.7m. Again, we believe it is a mature approach to offer long-term investors and fans of the Club a return on their investment. The dividend, if approved, will be paid by 16 January 2009 to shareholders on the register at the close of business on 19 December 2008.

Capital projects

The Training Centre project received approval from the planning authorities in 2008. We are currently fulfilling pre-development planning conditions and the project is due to break ground in 2009. We shall then start to see the reward for years spent pushing through a hugely complex planning application within the Metropolitan Green Belt. 

The new Training Centre, on 68 acres, will be important in enhancing the Club's position in domestic and European competition, attracting and developing exciting young talent, including home grown talent, which in turn benefits the national team. There is also substantial provision for benefits to the local community through the outreach programmes of the Tottenham Hotspur Foundation. 

With a waiting list for season tickets of over 22,000 and Club membership levels of over 70,000, our need for an increased capacity stadium has been clear for all to see for some time. We diligently spent considerable time reviewing our options and the news that our supporters had been waiting for came this month when we announced our intention to remain in Tottenham, confirming the Northumberland Development Project - a world class scheme incorporating a new stadium with a capacity of 60,000, a club museum, new shops, restaurants, homes and important public space. 

Having reviewed our stadium options it was clear that there were a limited number of alternative sites to our current location and following discussions with Council bodies, the LDA, Transport for London and local and central government officials, redeveloping the existing site emerged as the most viable route. 

We have spent 5 years buying and taking options over property around the current stadium site to enable us to either develop locally or to gain the critical mass to achieve a substantial site sale as a contribution to a relocation. To date this includes almost 60 separate property transactions, including 40 residential and potentially 160 commercial properties at a commitment of £44m. 

The scheme includes the current site and adjoining land with the stadium sited largely to the north of the existing one.

Getting to this stage has necessitated a great deal of work, determination and co-operation. The task ahead will by no means be easy but it is our firm belief that the new development will not only benefit everyone involved in the Club, but significantly enhance the immediate area around the ground. Importantly, it has real potential to kick start the regeneration of the wider area.

The Club is a major economic driver in Tottenham and gaining permission for such a scheme, without the need for a temporary relocation, will end local concerns about the Club leaving the Borough of Haringey with the resultant loss to the local economy. 

  We have been encouraged by our discussions with Haringey Council and Councillor George Meehan, Leader of Haringey Council, had this to say about our proposal:

'I am delighted that Tottenham Hotspur has confirmed its commitment to remain in our borough.

We have always regarded Spurs as one of Haringey's prime assets. They bring major economic benefits to our borough and carry out some excellent community work through the Tottenham Hotspur Foundation. 

But more than anything, Spurs have played an integral role in giving a sense of identity to the area it calls home. Tottenham would not be Tottenham without its football club.

We have been working extremely hard to regenerate the Tottenham area, which suffered so much from industrial decline. Real progress is being made, and it is extremely pleasing that Spurs has demonstrated that they share our commitment to this continuing regeneration.

But, as always, we will consider very carefully any plans that are submitted to us, as we strive to ensure that a new stadium delivers real benefits for all who live and work in the area.'

We continue to work closely with Haringey Council and are grateful to them for their support and desire to see the Club remain in Tottenham.

Looking further forward and to funding for the new development, the funding package will necessarily include a combination of sponsorship, property deals, bank finance and innovative funding proposals. 

However, stadium projects take time to deliver and we are determined not to undertake any capital project that undermines the financial stability that we have worked so hard to create at this Club. Be assured we shall look to ensure that this scheme is delivered in an appropriate manner.

The project team now includes a multi-disciplinary group of architects, transport consultants, heritage specialists, planning consultants and other advisers.

The public consultation period will now begin and we would hope to submit a planning application in 2009. I am personally delighted that we have been able to put forward a viable option which we know to be the fans' favourite - remaining at the Club's spiritual home. 

On the pitch

During the financial year the following players joined the Club: Jonathan Woodgate, Alan Hutton, Younes Kaboul, Kevin-Prince Boateng, Chris Gunter, Gilberto, Daniel Rose and Yuri Berchiche for a combined sum of £32.7m.

Jermain Defoe, Hossam Ahmed Mido, Reto Ziegler, Emil Hallfredsson, Mark Yeates, Phil Ifil, Lee Barnard and Wayne Routledge  left the Club during the financial year for a combined sale price of £18.8m.  

Since the year end we have added the following quality players to our squad as we embark on our third year in European competition: Luka Modric, Giovani Dos Santos, Heurelho Gomes, Cesar Sanchez, Vedran Corluka, Roman Pavlyuchenko and David Bentley have joined at a cost of £78.0m. Fraizer Campbell has joined on a season long loan.

The following players have left since the year end: Radek Cerny, Joe Martin, Robbie Keane, Dimitar Berbatov, Pascal Chimbonda, Teemu Tainio, Steed Malbranque, Younes Kaboul, Anthony Gardner, Paul Robinson, Tommy Forecast and Young-Pyo Lee for combined transfer fees of £73.7m. We wish them well.

Whilst the transfer request from Dimitar Berbatov was expected, we could not have foreseen a similar request from Robbie Keane. Whereas we traded early in other key positions, we finished the transfer window disappointed not to have secured an additional experienced striker. Undoubtedly we have started the season without the benefit of settled striker options and it is here that we must now look to build confidence and partnerships.

In addition, exciting young talent has joined us for the future including John Bostock, Paul-Jose M'Poku Ebunge and Mirko Ranieri.

I am pleased to report that, during the year, twenty five of our First Team professional players were called up to represent their respective national teams and this continues to demonstrate the quality of our current squad of players. 

Eight graduates from the Academy moved to professional contracts last season as third year, full-time players. Our academy participated in no fewer than 11 youth competitions internationally - providing our players with invaluable experience. The U20s lifted the trophy in Monthey in Switzerland and the U18s rounded off their season by winning the Talence tournament in France.

In the summer of 2008 the First Team squad trained pre season in Spain and took part and won the Feyernoord Jubileum Tournament. 

Commercial operations

The Club benefits from two main commercial partners MANSION, our shirt sponsor, and PUMA our kit sponsor. Our agreement with MANSION extends for a further two seasons, and the one with PUMA for three further seasons. 

Additionally, during the period, the Club established new partnerships with BT, as broadband partner, and Thomas Cook, as travel services partner, and renewed its agreement with Carlsberg.

Our One Hotspur membership programme, which was introduced last year and is designed to provide membership for all levels of the Club's supporter base, has attracted over 70,000 members. Through this new platform we have a season ticket waiting list in excess of 22,000, an important indicator of our need for an increased capacity stadium. One Hotspur works well and continues to provide much improved data on the ticketing process, particularly with respect to monitoring excess ticket demand and future stadium modelling.

The Club's corporate hospitality facilities were sold out for virtually every game during the season with demand coming from a wide range of international, national and local businesses for the executive boxes and range of executive lounge facilities. 

The Merchandise Division has performed well against the same period in the prior year. Turnover was up by 38 per cent on the prior record year, buoyed by the 125th anniversary kit which was the Club's most popular kit launch in its history aligned with new stores in Enfield and Chelmsford.

The Club's growing fan base, coupled with our increasingly popular website driving traffic, have led to growing turnover for our online shop. The value of our online retail sales operation grew by 88 per cent on the prior year and now represents 45 per cent of retail turnover.

The Club's website tottenhamhotspur.com, which was again updated during the year with a new look, continues to attract a record number of visitors and regularly receives over 1 million unique user visits a month making it once again one of the five most visited football club sites in the UK (Hitwise).  

The Club's online TV service, Spurs TV Online, was successfully re-launched during the year and is now a leading brand in the market place.

International development

We continue to focus on developing the Club's international fan base and as part of this process we have created a new role for a Head of International Development to look at all parts of the Club's community and commercial footprint in overseas markets. 

Our partnership with SuperSport United in South Africa, a Premier Soccer League ('PSL') team owned by SuperSport, one of the largest broadcasters in Africa, broadcasting to 57 countries, which was announced last year, has seen the valuable exchange of both players and coaches. Supersport United won the PSL and their academy, with our involvement, has attracted players from all over Africa. The relationship has resulted in extensive coverage of both the Club and the joint academy throughout the continent. 

Since the year end we have similarly agreed a partnership with the American club, San Jose Earthquakes and are now considering opportunities to do likewise in other key territories. 

Tottenham Hotspur Foundation

The Tottenham Hotspur Foundation goes from strength to strength since gaining charitable status in 2007 meeting its aim to engage and inspire children through the medium of football, encourage physical activity and healthy lifestyles and improve educational attainment whilst also tackling crime and anti-social behaviour in the community. We are also particularly proud of our work with the Foundation and with young people with disabilities.

During this, our 125th year, we established the Bill Nicholson Scholarship Fund with monies from activities surrounding the anniversary celebrations. The Fund will seek to encourage grass roots football and support worthy local causes, in keeping with the wishes of Bill's family.

Our thanks to the players for participating in a community event each week of the season, and to our Patron Lord Triesman and Ambassador Les Ferdinand OBE.

Other charitable donations

The Club remains one of the largest charitable donors of any club in the FAPL and it is a priority that we continue to support our designated charities in the form of direct financial support, gifts and contributions in kind. During this period, the value of the Club's contribution to local, national and international charitable causes was in excess of £0.5 million in addition to the original founding capital of £4.5m to underpin the activities of the Tottenham Hotspur Foundation.

This was the Club's second year of its long-term international charitable partnership with SOS Children's Village which saw the opening of the Club's first house in Rustenburg, South Africa, in September 2008. The provision of IT equipment and internet means that the children in the house, and indeed the Village, are able to access educational materials and also interact with the Club's own Learning Zone - a very real, tangible benefit of the relationship.

Management and staff

This period saw us make changes to our coaching staff, bringing in Head Coach, Juande Ramos and First Team Assistant Coaches, Marcos Alvarez and Gus Poyet - however following our extremely poor start to the season and just three League wins since February, we announced their departure this month, along with that of Sporting Director, Damien Comolli. We wish them well.

We moved swiftly to appoint Harry Redknapp as Manager. With Harry's appointment we also recognised that the time was right for us to return to a more traditional style of football management at the Club and Damien will not be directly replaced.

I should like to thank all of our staff who have embraced the challenges of the last year with enthusiasm and hard work. They are a tribute to the Club. We are reliant on the dedication of everyone, from the Board, the coaching staff, players and our management and employees across all departments.

Finally, our thanks to our Non-Executive Directors, Sir Keith Mills and Mervyn Davies, who have provided such excellent support and senior counsel to the board throughout the year.

Outlook

The start to the 2008/2009 season has been extremely disappointing and we are all keen to see a turnaround on the pitch. I know Harry is relishing the opportunity of restoring confidence to a squad of highly talented international players.

We believe that the Club has continued to build a strong platform for the future through continued investment in the team, in the infrastructure of the Club and through the progress of the Training Centre. 

I am also delighted that we have now finally agreed upon a solution to the Club's future stadium requirements and we must now remain focused on taking the stadium development project through the various stages of consultation and on to planning. It is an exciting project which will represent a significant step in the growth of the Club. Whilst we still have a number of challenges ahead on this project, we are confident that it is the right way to go forward for the Club, the fans and the shareholders.

It would be remiss of me not to comment on the fact that the world is currently experiencing unprecedented events in the financial sector - this will affect us all to a varying degree and football clubs will not be immune. We currently enjoy low debt and have invested significantly in players, capital projects and infrastructure. We have achieved this with sensible financial governance and management of the business which should stand us in good stead to ride out turbulent times.  

Daniel Levy

Chairman 

29 October 2008

  Financial Review

Revenue

This year the Club has again attained record revenue, rising from £103.1m to £114.8m. This 11% increase can largely be attributed to the new central FAPL TV deal, our success in the Carling Cup and another very profitable year in merchandising.

Attendances have continued to be maintained at the high levels that we have been able to achieve over the last few years with Premier League gate receipts bringing in £18.3m.  

The Club's second successive campaign in the UEFA Cup saw us reach the last sixteen, there was a fourth round defeat in the F.A. Cup to Manchester United, but we won our first piece of silverware in nine years lifting the Carling Cup at Wembley Stadium. In total, the cup competitions raised £10.3m in gate receipts and prize monies.

The new central FAPL TV rights deal for this season resulted in a substantial increase in TV and broadcasting revenues of 20% to £40.3m (2007: £33.7m). These were supplemented by TV monies from our cup runs but our merit fee award was reduced as a result of our final league position of eleventh compared to fifth the previous season.  

Sponsorship income, aided by a Carling Cup win bonus, rose by £0.8m as we enjoyed our second season with MANSION and PUMA and Corporate Hospitality was up by £1.6m on last year primarily due to increased executive memberships.

Aided by new kits, our 125th anniversary and two new stores, merchandising sustained its significant growth, with income up a further £2.7m to £9.7m from last year, representing a rise of 38%. 

Operating expenses (excluding football trading)

Operating expenses before football trading rose by £14.0m to £87.3m in the year. Player salaries have risen due to an enlarged playing squad and one-off costs which were incurred related to the restructuring of coaching staff.  

Profit from operations excluding football trading and before restructuring and depreciation

Our adjusted operating profit before restructuring, depreciation and football trading, which is one of our key performance indicators, is £35.0m, compared to £32.0m the previous year. This shows that we are continuing to perform well as a cash-generating business with net cash flow from operating activities up from £3.7m to £29.6m in the year.

Amortisation and impairment of intangible assets

Amortisation and impairment of intangible assets has increased by £18.1m to £37.0m, representing the significant investment that the Club has made in its playing squad over the last twelve months.  

Profit on disposal of intangible assets 

Profit on the disposal of intangible assets was £16.4m for the financial year, including £7.9m relating to the sale of Jermain Defoe to Portsmouth. Other significant sales in the year include Hossam Ahmed Mido to Middlesbrough and Reto Ziegler to Sampdoria for net profits of £2.3m and £0.9m respectively and a further £3.4m in relation to the Michael Carrick transfer to Manchester United.  

The Club continued its policy of strengthening its playing squad, represented by an investment of £32.7m during the year. Further major additions were made post balance sheet for a total of £78.0m. These acquisitions are offset by £73.7m of disposals in the summer transfer window.

Net finance expenses

Net finance expenses have increased by £2.0m to £3.9m reflecting a full twelve months interest due on the additional £20.0m secured loan notes drawn down in respect of the Academy and interest on further property related loans in connection with the stadium development project.

Profit before taxation

The overall result of the above is that profit before taxation is £3.0m for the year.

Taxation

The Group has incurred a tax charge of £2.0m in the current year. Therefore profit after tax is £1.0m.

Balance Sheet

The most significant movements on the Balance Sheet are due to the large investment that the Group has made in acquiring properties around the stadium to be able to redevelop. As a result, property, plant and equipment have increased from £51.1m to £74.1m, of which £4.9m relates to professional fees that would need to be written off in the event that the proposed Northumberland Development Project does not proceed. A consequence of the property acquisitions is that net debt is £14.6m at the balance sheet date.

Group net assets are £42.6m, a slight fall of £3.5m from the previous year.

Due to the significant increase in property assets during the year, the Group has provided a segmental analysis in note 3 to the accounts in which it has split out key financial indicators between its main activity of football and property.  

Cash flow

The Group had a net cash inflow from its operations of £35.2m for the year, compared to £8.5m in the prior year, despite a reduced operating profit, due to improved cash management.

Finance costs have risen by £2.4m due to increased borrowings to fund the £26.0m of properties, plant and equipment that were acquired during the year. We had a cash outflow of £27.5m (2007: £53.5m) to acquire players and pay contingent sums arising from transfer agreements, but this is partially offset by £16.2m (2007: £27.8m) of cash inflows from player sales and contingent receipts.

Tax of £3.6m was paid in the year as well as a dividend of 4p per ordinary share which had a cash outflow of £3.7m.

The other major cash movement was the drawdown of £20.9m in property loans to help fund the stadium project.

Risks and opportunities

The Group is exposed to a range of risks and uncertainties which have the potential to affect the long-term performance of the Group. Risks are monitored by the Board on a continual basis and the Group seeks to mitigate the risks wherever possible.

On the pitch

The continued success of the First Team in the league, European and domestic cup competitions is an important factor in securing the long-term stability of the Group. This is especially true given the significant increase in income generated from TV revenues under the new central FAPL TV deal.

Our ambitions in these competitions can be achieved with the continued commitment of the playing staff, the football management team and supporters. Our successful approach to nurturing both home grown talent and acquisitions through the transfer market will help the team to secure future success on the pitch.

There is always continued upward pressure on player costs and salaries, which continue to require significant cash outflows. Accordingly, the challenge for the Group continues to be to locate players of both quality and value through the transfer market and Academy.

Our supporters continue to demonstrate unwavering support for our team and Club. Attendances are consistently high with 22,000 people on the waiting list for season tickets. We are continually seeking ways to increase our fan base overseas and add value for domestic fans. This continued support is of utmost importance in ensuring that the Club is able to prosper.

Off the pitch

The development of the new stadium will expose the Group to additional risks. The risks that we might not obtain planning permission or obtain the necessary financing would have a significant negative impact and would require a write-off of professional fees capitalised to date. In addition, there may be property write-downs that would impact the income statement.

We continue to explore new opportunities in order to broaden our range of income streams both nationally and internationally. This continued diversification of our income streams will help to ensure the Group is financially robust and increases our stability.

The Club is reliant on the Premier League brand and exposed to external governing bodies of The FA, UEFA and FIFA. Clearly any changes in these bodies can affect our business model.

M J Collecott

Finance Director

29 October 2008

Consolidated income statement 

for the year ended 30 June 2008

Continuing operations

		Year ended 30 June 2008
		Operations, excluding football trading*	Football trading*	Total	Year ended  30 June 2007 Total (note 2)
	Note	£'000	£'000	£'000	£'000
Revenue	3	114,788	-	114,788	103,091
Operating expenses		(87,327)	(36,971)	(124,298)	(92,195)
Operating profit/(loss)		27,461	(36,971)	(9,510)	10,896
Profit on disposal of intangible fixed assets		-	16,362	16,362	18,721
Profit from operations		27,461	(20,609)	6,852	29,617
Finance income				1,797	1,419
Finance costs				(5,662)	(3,291)
Profit on ordinary activities before taxation				2,987	27,745
Tax				(2,018)	(8,587)
Profit for the period from continuing operations				969	19,158
Earnings per share from continuing operations - basic	5			1.0p	20.6p
Earnings per share from continuing operations - diluted	5			1.0p	11.0p

* Football trading represents the amortisation, impairment, and the profit/(loss) on disposal of intangible fixed assets and other football trading related income and expenditure.

Consolidated balance sheet

as at 30 June 2008

		30 June	30 June
		2008	2007
		£'000	£'000
Non-current assets
Property, plant and equipment		74,130	51,057
Intangible assets		62,423	71,061
		136,553	122,118
Current assets
Inventories		1,884	1,219
Trade and other receivables		41,292	29,843
Current tax receivable		2,182	-
Cash and cash equivalents		35,283	28,283
		80,641	59,345
Total assets		217,194	181,463
Current liabilities
Trade and other payables		(77,496)	(60,045)
Current tax liabilities		-	(5,747)
Interest bearing loans and borrowings		(7,798)	(5,698)
Provisions		(5,602)	(683)
		(90,896)	(72,173)
Non-current liabilities
Interest bearing overdrafts and loans		(57,187)	(39,756)
Trade and other payables		(14,607)	(17,785)
Deferred grant income		(2,143)	(2,205)
Deferred tax liabilities		(9,751)	(3,416)
		(83,688)	(63,162)
Total liabilities		(174,584)	(135,335)
Net assets		42,610	46,128
Equity
Share capital		4,639	4,631
Share premium		11,637	11,556
Equity component of convertible redeemable preference shares ('CRPS')		3,806	3,838
Revaluation reserve		2,288	2,336
Capital redemption reserve		595	565
Retained earnings		19,645	23,202
Total equity		42,610	46,128

Consolidated statement of changes in equity

for the year ended 30 June 2008

	Share	Share	Equity		Capital	Profit
	capital	premium	component	Revaluation	redemption	and loss
	account	account	of CRPS	reserve	reserve	account	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance as at 1 July 2007	4,631	11,556	3,838	2,336	565	23,202	46,128
Profit for the period	-	-	-	-	-	969	969
Amortisation of revaluation reserve	-	-	-	(48)	-	48	-
Ordinary 5p shares redeemed during the year	(30)	-	-	-	30	(841)	(841)
CRPS converted in the period	38	81	(32)	-	-	-	87
Final dividend on equity shares relating to year ended 30 June 2007	-	-	-	-	-	(3,733)	(3,733)
At 30 June 2008	4,639	11,637	3,806	2,288	595	19,645	42,610

For the year ended 30 June 2007

	Share	Share	Equity		Capital	Profit
	capital	premium	component	Revaluation	redemption	and loss
	account	account	of CRPS	reserve	reserve	account	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance as at 1 July 2006	4,646	11,556	3,838	2,384	550	4,287	27,261
Profit for the period	-	-	-	-	-	19,158	19,158
Amortisation of revaluation reserve	-	-	-	(48)	-	48	-
Ordinary 5p shares redeemed during the year	(15)	-	-	-	15	(291)	(291)
At 30 June 2007	4,631	11,556	3,838	2,336	565	23,202	46,128

Consolidated statement of cash flows

for the year ended 30 June 2008

		Year ended  30 June  2008	Year ended  30 June  2007
		£'000	£'000
Cash flow from operating activities
Profit from operations		6,852	29,617
Adjustments for:
Amortisation and impairment of intangible assets		35,057	18,832
Profit on disposal of intangible assets		(16,362)	(18,721)
Loss/(profit) on disposal of property, plant and equipment		14	(14)
Depreciation of property, plant and equipment		2,877	2,231
Capital grants release		58	69
Foreign exchange loss/(profit)		1,319	(145)
Increase in trade and other receivables		(4,225)	(14,138)
Increase in inventories		(668)	(444)
Increase/(decrease) in trade and other payables		10,327	(8,765)
Cash flow from operations		35,249	8,522
Interest paid		(3,164)	(826)
Interest received		1,094	1,150
Income tax paid		(3,610)	(5,176)
Net cash flow from operating activities		29,569	3,670
Cash flows from investing activities
Acquisitions of property, plant and equipment, net of proceeds		(25,962)	(3,512)
Acquisitions of intangible assets		(27,456)	(53,474)
Proceeds from sale of intangible assets		16,222	27,849
Net cash flow from investing activities		(37,196)	(29,137)
Cash flows from financing activities
Dividends paid		(3,733)	-
Redemption of ordinary shares		(841)	(291)
Proceeds from borrowings		20,916	20,000
Debt issue costs		(275)	(200)
Repayments of borrowings		(1,440)	(340)
Net cash flow from financing activities		14,627	19,169
Net increase/(decrease) in cash and cash equivalents		7,000	(6,298)
Cash and cash equivalents at start of the period		28,283	34,581
Cash and cash equivalents at end of year		35,283	28,283

Notes to the Accounts

for the year ended 30 June 2008

1. The financial information set out on the attached pages does not constitute statutory accounts for the years ended 30 June 2008 or 30 June 2007 but is derived from those accounts. Statutory Accounts for the year ended 30 June 2007 have been delivered to the Registrar of Companies and those for the year ended 30 June 2008 will be delivered following the Company's Annual General Meeting. The auditors reported on those accounts; their reports were unqualified and did not contain a statement under s237 (2) or (3) Companies Act 1985. 

The preliminary announcement for the year ended 30 June 2008 was approved by the Board of Directors on 29 October 2008.

2. Analysis of comparative income statement

	2007
	Operations, excluding football trading	Football trading	Total
	£'000	£'000	£'000
Revenue	103,091	-	103,091
Operating expenses	(73,363)	(18,832)	(92,195)
Operating profit/(loss)	29,728	(18,832)	10,896
Profit on disposal of intangible assets	-	18,721	18,721
Profit from operations	29,728	(111)	29,617

3. Revenue

Revenue, which is all derived from the Group's principal activity, is analysed as follows:

	2008	2007
	£'000	£'000
Revenue comprises:
Gate receipts - Premier League	18,274	18,069
Gate receipts - Cup competitions	10,341	12,770
Sponsorship and corporate hospitality	27,778	25,427
Media and broadcasting	40,329	33,734
Merchandising	9,723	7,051
Other	8,343	6,040
	114,788	103,091

All revenue derives from the Group's principal activity in the United Kingdom and is shown exclusive of VAT.

In addition to the amounts shown, the Group recognised finance income of £1,797,000 in 2008 and £1,419,000 in 2007. Consequently total revenue is £116,585,000 (2007: £104,510,000).

4. Profit from operations

This is stated after charging/(crediting) the following:

	2008	2007
	£'000	£'000
Depreciation of property, plant and equipment:
- owned	2,877	2,231
Amortisation and impairment of intangible fixed assets	37,268	18,942
Amortisation of grants	(58)	(69)
Restructuring	4,663	-
Property project costs*	-	365
Charitable donations	50	84
Operating lease rentals:
- land and buildings	145	143
- other	174	197

* Following the decision to develop current and adjacent site these costs have been capitalised in the financial year ended 30 June 2008.

5. Earnings per share

Earnings per share has been calculated using the weighted average number of shares in issue in each year.

	2008	2007
	£'000	£'000
Earnings for the purpose of basic earnings per share being net profit attributable to equity holders of the Company	969	19,158
Accretion of CRPS liability	993	1,091
Earnings for the purpose of diluted earnings per share	1,962	20,249
	Number	Number
Weighted average number of ordinary shares for the purposes of basic earnings per share	93,032,204	92,843,042
Convertible redeemable preference shares	91,075,534	91,845,600
	184,107,738	184,688,642
Basic earnings per share	1.0p	20.6p
Diluted earnings per share	1.0p	11.0p

There are no ordinary share options outstanding at the year end (2007: nil). On conversion the fully diluted share capital at year end would be 183,862,111 shares (2007: 184,463,721 shares).

In the current year, the CRPS are antidilutive because their conversion to ordinary shares and associated accretion of CRPS liability would increase earnings per share. Therefore, diluted earnings per share does not assume conversion.

6. An Annual General Meeting of Tottenham Hotspur plc will be held at Bill Nicholson Way, 748 High Road, Tottenham, London N17 0AP at 2.00pm on 15 December 2008.

 

END

 

 

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