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Leeds United PLC (LUFC)

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Thursday 26 September, 2002

Leeds United PLC

Final Results

Leeds United PLC
26 September 2002





                                LEEDS UNITED PLC



              Preliminary results for the year ended 30 June 2002



Leeds United plc ('Leeds United' or 'the group'), the holding company of Leeds
United Football Club, announces preliminary results for the year ended 30 June
2002.



HIGHLIGHTS



*          Turnover £81.5 million (2001: £86.3 million)

*          Record revenues in season ticket sales, merchandising, sponsorship
and executive hospitality

*          TV and broadcasting income down 7% due to lack of Champions League
football

*          Loss before tax driven by player amortisation charge and absence of
Champions League football

*          Issue of £60 million loan notes

*          Renewed focus on home-grown talent - eight of twelve home-grown
players now full internationals - to lower player costs in medium term

*          Since year end net income rising to £33 million from player trading

*          Strong squad, competing in Europe for fifth consecutive season,
well-positioned under new manager Terry Venables for the future.



Peter Ridsdale, Chairman of Leeds United, commented:



'Despite the financial impact of failing to qualify for the Champions League and
the levels of both amortisation and interest giving a very disappointing result
for the year ended June 2002, we remain convinced that our long-term strategy is
not only right but is the only sustainable strategy to deliver long-term
shareholder value.  Furthermore, the combination of the actions taken since the
year end and ongoing actions surrounding the playing squad will help to ensure
that we deliver against this strategy.'



ENDS


ENQUIRIES:
Leeds United plc                                         Tel:   0113 367 6000
Peter Ridsdale, Chairman
Stephen Harrison, Chief Operating Officer


Binns & Co Public Relations Limited
Peter Binns                                              Tel:   0207 786 9600

Emma McCaffrey                                           Tel:   07811 151 487


                                LEEDS UNITED plc



              Preliminary Results for the year ended 30 June 2002



CHAIRMAN'S STATEMENT







Three years ago we announced a five-year strategy to make Leeds United one of
the top football clubs not only in English football but also in Europe.  This
strategy was developed taking into account our vision of the long-term future of
football and, specifically, of football finances.



Industry overview

Apart from gate receipts, TV revenues will continue to be the dominant income
generator.  We expect domestic TV revenues to be broadly flat over the next
three to four years, but there should be an opportunity for clubs to
substantially enhance the revenue streams from overseas rights.  The demand to
watch Premiership football has never been greater on an international basis.
Whilst it is still likely that there will be a collective agreement with
enhanced overseas TV income for all Premiership clubs, there is also a chance
that overseas rights will revert to individual clubs.  In this eventuality it is
crucial that we are still among the regular participants in European
competitions so that we can maximise the additional income opportunities.



The future shape of UEFA competitions is another area that will affect football
clubs' opportunities to enhance revenue streams.  As seen in these results, the
absence of Champions League football had a substantial impact on our financial
performance for the year.  UEFA have created a club forum of the top clubs in
Europe who will help determine the future size and basis for participation in
European competitions.  Invitations to join this forum are based on success in
existing UEFA tournaments and Leeds United is one of only five English clubs to
be included.  It is paramount, therefore, that we continue to participate in
Europe and to do well.



Playing squad

Our playing squad policy has been based on a balance of home grown talent topped
up with external additions to the squad where it was felt necessary from a
playing perspective.  On such occasions we have endeavoured to buy players who
would have a residual resale value.



Over the last eighteen months or so the balance of home developed versus
purchased players has got out of line, resulting in a higher than desirable
amortisation charge.  This was in part due to the uncertainty that arose over
the futures of Lee Bowyer and Jonathan Woodgate, and the long-term injuries
sustained to Lucas Radebe and Michael Bridges.  As a result of both Lee and
Jonathan being available and of the return to fitness of both Lucas Radebe and
Michael Bridges, action was taken post year-end to bring in transfer funds and
to reduce the underlying player wage costs.



Despite the fact that the transfer market has been virtually non-existent this
summer, the sale of Rio Ferdinand to Manchester United and Robbie Keane to
Tottenham Hotspur will bring in a maximum of £37.0 million of transfer funds.
The three players acquired since the year-end will cost a total of £4.0 million,
of which £1.6 million is due to be paid in the financial year 2002/03.  This
gives a net income from player trading since the year-end of £33.0 million.  As
a result of these transfers, in and out, there is also a saving to the player
payroll of approximately £1.8 million.  Player trading, both in and out, will
continue to be a part of our ongoing business with the objective being to create
shareholder value as well as building a successful team.



Football performance

On the playing side we had an unacceptable second half of the season, dropping
from first in the Premier League on New Year's Day to fifth by the season's end,
missing out on Champions League qualification for the second year running by one
place.  We were also knocked out of the FA Cup by Cardiff City in the third
round and out of the UEFA Cup by PSV Eindhoven in the fourth round.  Given the
investment made in the squad and the disappointing outcome to the season, the
board made the decision at the end of May to make a change to the football
management.  As a consequence Terry Venables was appointed to succeed David
O'Leary as Team Manager.



Terry has almost unrivalled football management experience, including spells at
Tottenham Hotspur, Barcelona, England and Australia.  He has quickly settled in
to the club, and has established an excellent relationship with the entire
football staff.



Youth policy

Our original strategy was based on having a strong youth policy.  Twelve members
of our current first team squad have come through our youth system, eight of
whom have now represented their country at full international level, with
another two being current members of England youth teams.  Some two and a half
years ago there was a vacuum of new talent being brought into the club.  The
steps taken then to revamp the youth structure, first with the introduction of
Brian Kidd and more recently with the appointment of Andy Ritchie to run our
youth Academy, have paid dividends.  The quality of recent recruits looks
promising, with a number of these youngsters already established in the reserve
team.  This should ensure much lower levels of investment in externally sourced
players going forward than was the case in the most recent past.



Cost base

Other steps have been taken to ensure that the cost base required to run the
company will be reduced.  The player wage bill as a ratio to turnover will be
reduced on an ongoing basis and non-playing staff overheads, with annualised
savings of approximately £1.0 million being implemented, will continue to be
monitored.



Management development

Despite our focus on reducing non-playing overhead costs, we continue to develop
the breadth of commercial talent within the business that will drive it forward.
  We appointed David Knibbs, 35, as Head of Commercial Operations and David
Thomson, 36, as Head of Retail.  Both Davids have outstanding experience gained
from senior positions in blue chip companies.  We have also promoted Finance
Director Stephen Harrison to the new position of Chief Operating Officer.



The appointments highlight our strength in depth, and will enable us to maintain
and accelerate the development of commercial operations.



New stadium

We continue in detailed discussions with the local authority and other
interested parties over our plans to achieve a superior stadium.  Once again,
the present stadium has been full to capacity, and the facilities available
prevent us from fulfilling our potential in terms of the strong demand for
high-yielding corporate facilities from the fast-growing city of Leeds, as well
as from our growing sponsor pool.  We also continue to discuss the award of
stadium naming rights with a number of companies.



Outlook

Despite the financial impact of failing to qualify for the Champions League and
the levels of both amortisation and interest giving a very disappointing result
for the year ended June 2002, we remain convinced that our long-term strategy is
not only right but is the only sustainable strategy to deliver long-term
shareholder value.  Furthermore, the combination of the actions taken since the
year end and ongoing actions surrounding the playing squad will help to ensure
that we deliver against this strategy.









Peter Ridsdale

Chairman

26 September 2002


                                LEEDS UNITED plc



              Preliminary Results for the year ended 30 June 2002



                         OPERATING AND FINANCIAL REVIEW



Summary results


                                                                                  2002         2001
                                                                                 £'000        £'000

Turnoveru                                                                       81,503       86,252
Cost of sales                                                                 (17,689)     (18,680)
Gross profit                                                                    63,814       67,572
Administrative expenses before player tradinguu                               (71,744)     (58,922)
Operating (loss)/profit before player trading                                  (7,930)        8,650
Net player trading                                                            (20,280)     (12,678)
Loss before interest and taxation                                             (28,210)      (4,028)

Loss per share                                                                 (9.75p)      (2.03p)
Shareholders' funds                                                              1,394       35,269



u Turnover in 2002 includes revenue of £3.5 million further to the company's
existing media rights partnership with British Sky Broadcasting Group plc.

uuAdministrative expenses before player trading in 2001 includes costs of £1.4
million associated with the Leeds Arena development project.





Turnover


                                                                                2002         2001
                                                                               £'000        £'000
Gate receipts                                                                 12,738       15,477
Television and broadcasting                                                   34,176       36,620
Merchandising                                                                  8,093        6,312
Travel                                                                         8,109       10,758
Other commercial income                                                       18,387       17,085
Total                                                                         81,503       86,252



The absence of Champions League participation inevitably affected our commercial
performance in the year.  Despite this, we produced record revenues in several
areas of the business, notably season ticket sales, merchandising, sponsorship
and executive hospitality.



Turnover

Turnover was £81.5 million  (2001: £86.3 million).  This was 6% lower than 2001
due to reduced revenues from the UEFA Cup campaign compared to the Champions
League in the previous year, offset by the combined effect of the improved
Premier League broadcasting rights deal with Sky, the Sky media rights income
and growth in other areas of the business.



Gate receipts

Average Premier League attendances were 39,752 (2001: 39,016), with season
ticket sales of 27,132 (2001: 24,203), a record for the business.  Gate receipts
from league games increased by 11% to £11.0 million (2001: £9.9 million).  The
reduction in the number of cup matches from eleven to five, however, meant that
overall gate receipts fell 18% to £12.7 million.



As we have said before, we are in effect operating at 100% capacity for home
league games, with the variation in attendance season-to-season driven by
varying utilisation of the inflexible capacity available to away supporters.
The physical constraints of the current Elland Road stadium will continue to
limit growth in gate receipts to volume from success in cup competitions, and
yield from price increases.



Television and broadcasting

Television and broadcasting income was £34.2 million compared to £36.6 million
in 2001, a reduction of 7%.  The UEFA Cup campaign in 2001/02 compared to
participation in the Champions League in the previous year accounted for a £10.8
million fall in revenue.  This highlights the importance of participation in the
Champions League on the group results and emphasises why a Champions League
qualification position is our main goal for the current season.



This reduction was mitigated by increased revenue from the improved Premier
League broadcasting rights deal.  This was the first year of the new deal, which
runs until the end of the 2003/04 season.  We also benefited from more televised
matches, with eleven live games (2001: nine) and six pay per view games.



In June 2002, we received £3.5 million from Sky, further to our existing media
rights partnership.  Sky continues to act as our agent for commercial
activities, and is helping with the development of our internet operations.
This included the first stage of the re-launch of the Leeds United website,
which incorporated the inclusion of delayed highlights of matches.   Subsequent
stages will increase the usefulness of the site to fans and its value as a
vehicle for marketing to us and to our sponsors.



Merchandising

All areas of our merchandising business showed growth in the year.  Overall
merchandising income grew by 29% to £8.1m (2001: £6.3m).  Despite fewer home
games, sales in our retail stores grew by £1.2m to £6.0m.  During the year we
successfully relocated the retail outlet in Wakefield from a secondary to a
primary site in the main shopping centre, resulting in a 64% growth in sales.
We also outsourced fulfilment of our mail order and internet business, which
helped sales grow by 76% to £1.5m.



As mentioned above, we are increasing the pace of brand development overseas.
In order to capitalise on this, we appointed World Sports Solutions as agents to
develop the licensing side of the business internationally.



Other commercial income

In other commercial areas we reported record income from sponsorship and
royalties, executive hospitality and in our conference and banqueting business.
Sponsorship and royalties grew 15% to £7.8 million (2001: £6.8 million),
executive hospitality increased from £3.9 million to £4.4 million and conference
and banqueting income increased by £0.3 million to £3.8 million.



In April 2002, we replaced the temporary 'marquee' structure on Lowfields Road
with a permanent building, significantly increasing capacity for executive
hospitality.  We will see the full benefits of this in the current year.  In
sponsorship, we secured the addition of Carling and Lucozade as new Platinum
partners.



Our travel business recorded sales of £8.1 million, 25% lower than 2001's result
of £10.8 million.  This was due to lower tours activity to European matches.



Cost of sales and administrative expenses

Cost of sales fell 5% to £17.7 million.  This was slightly lower than the
reduction in turnover, which was due to the decrease in media income that has
negligible costs associated with it.  This resulted in a small drop in gross
margin, excluding the Sky media rights income, to 77% compared with 78% in 2001.



Administrative expenses before player trading were £71.7 million (2001: £57.5
million, before £1.4 million Leeds Arena costs).  Over 70% of this increase was
due to the increase in wages and salaries, the majority of which relates to
players.  Wages and salaries increased by 24% to £53.6 million (2001: £43.3
million).  This represents 66% of turnover compared to 50% in 2001.  We believe
that our wages to turnover ratio is currently too high and we intend to reduce
it to a more manageable level.



The wages and salaries increase of £10.3 million breaks down into two main
components.  Half stems from new players, both the full year effect of Rio
Ferdinand and Robbie Keane purchased in the 2000/01 season and the signings of
Seth Johnson and Robbie Fowler this season.  The majority of the remaining
increase was due to new contracts for existing squad players, offset by lower
bonuses for the UEFA Cup campaign compared to the Champions League in the
previous year.



Other operating costs increased by £3.9 million to £18.1 million compared to
2001 (£14.2 million, before £1.4 million Leeds Arena costs) as a result of a
number of factors, including player insurance premiums, higher depreciation and
the costs of supporting our growing commercial and merchandising operations.  As
indicated in the Chairman's statement, we are aggressively targeting all
non-playing overheads.  We have already identified annualised savings of
approximately £1.0 million and are continuing to challenge expenditure in all
areas of the business.



Player trading and football development

The costs of acquired players' registrations are capitalised and amortised over
the period of the respective contracts.  The significant strengthening of the
squad since 2000 has resulted in an increase in the player amortisation charge,
up £6.3 million to £20.6 million.  The amortisation charge, together with the
profit on disposal of player registrations of £0.3 million (2001: £1.6 million)
resulted in a net player trading cost of £20.3 million compared with £12.7
million in 2001.



The additions to the first team squad made during the year mean that we have
significant strength in depth at the top level, including 24 full and four youth
internationals.  At a more junior level, we are starting to see the first signs
of fruition from the restructure of the youth development organisation.  The
under 18 youth team, selected from a young squad, won the prestigious
international Milk Cup tournament in Northern Ireland.  Several members of this
team are now featuring in reserve team games, and we hope that they will in due
course challenge for places in the first team squad.



During the autumn, we will unveil the new Academy building at Thorp Arch.  This
has been constructed at a total cost of £5.2 million, and includes an indoor
pool, state-of the art physical rehabilitation suites and a hydrotherapy pool.
This investment underlines our commitment to youth development.



Financial position

Shareholders' funds at 30 June 2002 amounted to £1.4 million (2001: £35.3
million).  The reduction is due to the loss in the year of £33.9 million (2001:
£7.0 million).



The net cash outflow from operating activities was £5.7 million.  The cash
outlay in relation to the purchase of players was £25.5 million, which combined
with interest costs and capital expenditure resulted in a cash outflow before
financing of £37.9 million.



During the year we issued £60 million loan notes.  The notes are secured on
future gate receipts, are repayable over 25 years and carry a fixed interest
rate of 7.695%.  The proceeds were used to repay existing bank borrowings and
fund player purchases, the new Academy training facility and general working
capital requirements.  The above movements resulted in an increase in cash in
the year of £10.9 million.  Closing net debt at 30 June 2002 was £77.9 million
compared to £39.4 million in 2001.



International brand development

Internationally, we significantly increased brand growth activity.  Between
March and May 2002, coaches from the Leeds United Academy ran a new talent
competition format in Asia, entitled Search for a Soccer Star, where local
youngsters competed for the chance to visit the Thorp Arch Academy.  The event
was staged in both Vietnam and Thailand, with the costs met by local and
international sponsors, and attracted TV audiences of five million in each
territory, as well as large crowds in the stadia for the competition finals.



At the end of the season, the first team squad undertook its first tour of
Australia and the Far East, playing exhibition games against local teams in
Bangkok and in Hang Zhou in China, and against the Chilean team Colo Colo in
Melbourne.  The games were enthusiastically supported, attracting aggregate TV
audiences of nine million, and highlighted many useful opportunities for future
brand growth, which we are now developing.



Community

The Leeds United Community programme is often cited as a model of good practice
for the football industry.  The programme is based around three central strands
of Football in the Community, where we increased the number of children
participating by 5,000 to 33,000, the Learning Centre, where over 3,000 local
youngsters achieved tangible improvements in literacy, numeracy and computer
skills through the innovative use of football as a vehicle for learning, and
working with local and national charities to increase their profile and funding.
  The programme achieved national recognition during the year, when it received
a Highly Commended citation at the Business in the Community Awards for
Excellence, adding to other accolades gained by the Leeds United Learning Centre
for Quality in Study Support (National Youth Agency) and Community Teacher of
the Year 2002 for the North of England (National Teaching Awards).



People

We were very proud to be awarded Investors in People status during the year,
reflecting our continued commitment to training and development, and to
communicating our expectations and feedback on performance to all our
colleagues.  The board are grateful to all our staff for their hard work and
loyalty during a tough year.









Stephen Harrison

Chief Operating Officer

26 September 2002


                                LEEDS UNITED plc



              PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2002



CONSOLIDATED PROFIT & LOSS ACCOUNT








                                               Note        Operations                       Year          Year

                                                            excluding                      ended         ended

                                                       player trading       Player       30 June  30 June 2001

                                                                           trading          2002

                                                                £'000        £'000         £'000         £'000

Turnover                                          2            81,503            -        81,503        86,252

Cost of sales                                                (17,689)            -      (17,689)      (18,680)

Gross profit                                                   63,814            -        63,814        67,572

Administrative expenses                           3          (71,744)     (20,576)      (92,320)      (73,257)

Operating loss                                                (7,930)     (20,576)      (28,506)       (5,685)

Profit on disposal of player registrations                          -          296           296         1,657

Loss on ordinary activities before interest                   (7,930)     (20,280)      (28,210)       (4,028)

Other interest receivable and similar                             306            -           306            48
income

Interest payable and similar charges                          (5,971)            -       (5,971)       (3,609)

Loss on ordinary activities before tax                       (13,595)     (20,280)      (33,875)       (7,589)

Tax on loss on ordinary activities                4                 -            -             -           547

Loss on ordinary activities after tax
retained and transferred to reserves
                                                             (13,595)     (20,280)      (33,875)       (7,042)



Loss per share                                    6                                      (9.75p)       (2.03p)




The results for both years relate to continuing operations.



There are no recognised gains and losses for either year other than as stated in
the profit and loss account.




LEEDS UNITED plc



              PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2002



                           CONSOLIDATED BALANCE SHEET




                                                                 Note         30 June 2002         30 June 2001
                                                                                     £'000                £'000
Fixed assets

Intangible assets                                                                   66,469               63,490
Tangible assets                                                                     42,537               39,583
                                                                                   109,006              103,073
Current assets

Stocks                                                                               2,301                1,324
Debtors:  due within one year                                                       14,120               15,584
Cash at bank and in hand                                                            15,354                4,460
                                                                                    31,775               21,368


Creditors:  amounts falling due within one year                                   (57,042)             (46,052)
Net current liabilities                                                           (25,267)             (24,684)


Total assets less current liabilities                                               83,739               78,389

Creditors:  amounts falling due after more than one year

                                                                                  (82,345)             (43,120)


Net assets                                                                           1,394               35,269




Capital and reserves

Called up share capital                                             7                3,476                3,476
Share premium account                                               7               47,557               47,557
Profit and loss account                                             7             (58,959)             (25,349)
Revaluation reserve                                                 7                9,320                9,585


Equity shareholders' funds                                                           1,394               35,269








                                LEEDS UNITED plc



              PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2002



                        CONSOLIDATED CASH FLOW STATEMENT




                                                                                         Year             Year

                                                                        Note            ended            ended

                                                                                      30 June          30 June

                                                                                         2002             2001
                                                                                        £'000            £'000
Net cash (outflow)/inflow from operating activities                        8          (5,716)           15,741
Returns on investments and servicing of finance                                       (3,212)          (3,525)
Capital expenditure and financial investment                                         (29,015)         (31,840)
Cash outflow before financing                                                        (37,943)         (19,624)
Financing

        Issue of share capital                                                              -            1,235
        Other                                                                          48,837           18,227
Net cash inflow from financing                                                         48,837           19,462


Increase/(decrease) in cash in the year                                                10,894            (162)







Reconciliation of net cash flow to movement in net debt


                                                                                         Year             Year

                                                                                        ended            ended

                                                                                      30 June          30 June

                                                                                         2002             2001
                                                                                        £'000            £'000
Increase/(decrease) in cash in the year                                                10,894            (162)
Cash inflow from increase in debt and lease financing                                (48,837)         (18,227)
Change in net debt resulting from cash flows                                         (37,943)         (18,389)
New finance leases                                                                      (563)             (34)
Increase in net debt in the year                                                     (38,506)         (18,423)
Opening net debt                                                                     (39,385)         (20,962)


Closing net debt                                                                     (77,891)         (39,385)





                                LEEDS UNITED plc



                        NOTES TO THE PRELIMINARY RESULTS



FOR THE YEAR ENDED 30 JUNE 2002



1.         Profit and loss account analysis



The profit and loss account includes the amortisation of players within
operating profit/(loss).  Further analysis of the profit and loss account for
the years ended 30 June 2002 and 30 June 2001 is set out below:


                                                Operations before               Player
                                                   player trading
Year ended                                                                     trading                Total
30 June 2002                                                £'000                £'000                £'000
Turnover                                                   81,503                    -               81,503
Cost of sales                                            (17,689)                    -             (17,689)
Gross profit                                               63,814                    -               63,814
Administrative expenses                                  (71,744)             (20,576)             (92,320)
Operating loss                                            (7,930)             (20,576)             (28,506)
Profit on disposal of player                                    -                  296                  296
registrations


Loss before interest and tax                              (7,930)             (20,280)             (28,210)







                                                Operations before               Player
                                                   player trading
Year ended                                                                     trading                Total
30 June 2001                                                £'000                £'000                £'000
Turnover                                                   86,252                    -               86,252
Cost of sales                                            (18,680)                    -             (18,680)
Gross profit                                               67,572                    -               67,572
Administrative expenses                                  (58,922)             (14,335)             (73,257)
Operating profit/(loss)                                     8,650             (14,335)              (5,685)
Profit on disposal of player                                    -                1,657                1,657
registrations


Profit/(loss) before interest and tax                       8,650             (12,678)              (4,028)


2.         Turnover


                                                                         Year ended         Year ended
                                                                       30 June 2002       30 June 2001
                                                                              £'000              £'000
Gate receipts                                                                12,738             15,477
Television and broadcasting                                                  34,176             36,620
Merchandising                                                                 8,093              6,312
Travel                                                                        8,109             10,758
Other commercial income                                                      18,387             17,085


Total                                                                        81,503             86,252



All turnover arises from continuing activities.  Television and broadcasting
turnover in 2002 includes revenue of £3.5

million further to the company's existing media rights partnership with British
Sky Broadcasting Group plc.  There is no tax

charge relating to this revenue.





3.         Administrative expenses



Administrative expenses in the prior year include costs amounting to £1,419,000.
  These relate to the write off of costs

associated with the Leeds Arena development project.  There was no tax charge
relating to these costs.





4.         Tax on loss on ordinary activities



There was no current tax charge in either year.


                                                                         Year ended        Year ended
                                                                       30 June 2002      30 June 2001
                                                                              £'000             £'000


Deferred tax                                                                      -             (547)




Adoption of FRS 19 Deferred Tax has required a change in the method of
accounting for deferred tax.  However, this change

has had no impact in either year.




4.         Tax on loss on ordinary activities (continued)



The standard rate of tax for the year, based on the UK standard rate of
corporation tax, is 30%.  The actual tax charge for the current year and
previous year differs from the standard rate for the reasons set out in the
following reconciliation.


                                                                         Year ended       Year ended
                                                                       30 June 2002     30 June 2001
                                                                              £'000            £'000
Loss on ordinary activities before tax                                     (33,875)          (7,589)



Tax on loss on ordinary activities at standard rate                        (10,162)          (2,277)
Movement on unprovided deferred tax                                           9,624            1,465

Expenses not deductible for corporation tax purposes                            538              812



Total actual amount of current tax                                                -                -





5.         Dividends



The directors do not recommend the payment of a dividend.





6.         Loss per share


                                                                       Year ended           Year ended
                                                                     30 June 2002         30 June 2001
Loss for the year (£'000)                                                (33,875)              (7,042)

Weighted average number of shares ('000)                                  347,589              347,589

Basic loss per share                                                      (9.75p)              (2.03p)



FRS 14 Earnings Per Share requires presentation of diluted EPS when a company
could be called upon to issue shares that would decrease net profit or increase
net loss per share.  For a loss making company with outstanding share options,
net loss per share would only be increased by the exercise of out-of-the-money
options.  Since it seems inappropriate to assume that option holders would act
irrationally, and there are no other diluting future share issues, diluted EPS
has not been presented.




7.         Share capital and reserves


                                                      Share       Profit

                                         Share      premium     and loss      Revaluation
                                       capital      account      account          reserve
                                                                                                Total
                                         £'000        £'000        £'000            £'000       £'000
At 1 July 2001                           3,476       47,557     (25,349)            9,585      35,269
Loss for the year                            -            -     (33,875)                -    (33,875)
Reserve transfer                             -            -          265            (265)           -


At 30 June 2002                          3,476       47,557     (58,959)            9,320       1,394



The profit and loss account includes £30.1 million of goodwill previously
written off directly against reserves in accordance

with the accounting standards in force at the time of acquisition.





8.         Reconciliation of operating loss to net cash inflow from operating
activities


                                                                    Year ended         Year ended

                                                                  30 June 2002       30 June 2001
                                                                         £'000              £'000
Operating loss                                              (28,506)                      (5,685)
Depreciation of tangible fixed assets                                    1,896              1,754
Amortisation of intangible fixed assets                                 20,576             14,335
Loss on sale of tangible fixed assets                                        8                 16
Loss on write off of Leeds Arena development costs                           -              1,419
Loss on write off of other fixed asset investments                           -                250
Increase in stock                                                        (977)              (444)
Increase in debtors                                                    (1,117)            (3,891)
Increase in creditors                                                    2,404              7,987


Net cash (outflow)/inflow from operating activities         (5,716)                        15,741






9.         The financial information set out in this preliminary announcement
does not constitute the company's statutory accounts for the years ended 30 June
2002 or 2001 but is derived from those accounts.  Statutory accounts for the
year ended 30 June 2001 have been delivered to the Registrar of Companies and
those for the year ended 30 June 2002 will be delivered following the company's
Annual General Meeting.  The auditors have reported on these accounts and their
reports were unqualified and did not contain a statement under section 237(2) or
(3) of the Companies Act 1985.






                      This information is provided by RNS
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