C.U.F.C._HOLDINGS_LIMITED - Accounts
C.U.F.C._HOLDINGS_LIMITED - Accounts
The directors present the strategic report for the year ended 30 June 2018.
CUFC Holdings Limited’s (“Holdings”) principal activity is unchanged. It is a non-trading holding company with a majority and controlling shareholding in its subsidiary Carlisle United (1921) Association Football Club Limited. Together these comprise the Group.
The business activity of Carlisle United (1921) Association Football Club Limited is a football club. It is a member of the EFL (currently in League 2) and the Football Association. It also operates football related trading activities and holds the EFL Golden Share.
A full detailed Strategic Report is contained in the financial statements of Carlisle United (1921) Association Football Club Limited.
Results and performance
Group Turnover £3.993m (2016/17: £4.273m)
This includes Business turnover £1.973m (2016/17: £2.280m), Football income direct from EFL and Premier League of £960,000 (2016/17: £919,000), Academy grant income from EFL of £466,000 (2016/17: £424,000), together with £449,000 (2016/17: £484,000) of non-recurring Football Fortune income from cup runs and player sales plus £79,000 (2016/17: £176,000) of other one-off income from insurance and donations.
Income from Player sales was £223,000 (2016/17: £209,000). This came from the transfer of Sam Cosgrove and from transfer add-on’s from prior year deals. Income from Cup matches and play-offs was £270,000 before costs (2016/17: £223,000), this includes £30,000 prize money from the Checkatrade Trophy.
Total Football Expenditure £2.603m (2015/16: £2.767m)
Despite the reduction in income earned to fund our football operations, Total Football Expenditure was still £2.603m (2016/17: £2.767m). The decrease of £164,000 spent on Football was only due to a fall in bonuses paid for results achieved compared with the play-off year 2016/17.
As a result, the Club incurred a very significant loss in supporting the spending on Player and Football management costs despite the poorer finish than 2016/17.
The Club complied with EFL Salary Cost Management Protocols (Player Wage Capping) rules for the 2017/18 season. Our spending was 96% (16/17: 99%) of the EFL allowance.
Loss before tax for the year
After interest costs of £31,000 (2016/17: £13,000) together with depreciation and amortisation of £265,000 (2016/17: £218,000), a total loss for the year of £981,000 (2016/17: £689,000) was suffered.
The Company continued to benefit from an external commercial Funding Facility arrangement with
Edinburgh Woollen Mill supported by security over all the assets of the Company.
The total debt of the Company at 30 June 2018 was at £2.26m (30 June 2017: £2.01m).
Football review
In 2017/18 Keith Curle was in charge for his third full season as Manager and his fourth League 2 campaign. It proved a year of disappointment after reaching the play-offs in the prior year. Keith Curle left the club at the end of the season at the expiry of his contract along with his staff. He was replaced by John Sheridan and a new coaching team in June 2018. A review of the football activity of the Group is contained in the Financial Statements of Carlisle United (1921) Association Football Club Limited.
Academy review
There were some further signs of progress in the right direction in 2017/18, but it is a long road to see players developing and breaking through to make their mark in our first team squad. This is an increasingly important area, where the Club needs to significantly improve.
Business review
Commercial
Commercial activities had a difficult year. Business turnover from Commercial activities was £698,000 (2016/17: £764,000). Sponsorship and match-day hospitality were particularly challenging. Thank you to all our commercial sponsors and partners and those who attended events. Commercial Director Phil King left the club in March 2018. He was not directly replaced, with his role being taken over by other staff with further changes made after the year end to reorganise the commercial team and add to it with additional external support.
Match day
Total match-day income primarily comprises Season Card income and Match ticket income. This was £937,000 in 2017/18 (2016/17: £1.140m and 2015/16: £1.094m).
League game gates were an average of 4,600 (2016/17: 5,113).
We are grateful for every fan who supports us and spends hard earned money backing the team and Club.
Other business trading activities
Retail had a tough year with falling sales and gross profit. Sales and profits from the match day programme were poor as the demand continues its long term downward trend. Income from Lotteries and Promotions continued to be stable which is creditable as discretionary spending, especially on match day was reduced.
We can be successful by working both hard and smart, with a positive and ambitious approach and finding improvements in every activity.
Legislative risks
The company is governed by a wide range of legislation and regulation and takes great care to keep up to date with all relevant to ensure that it can maintain its business.
Financial risks
The main financial risk for the company is liquidity risk which is the risk that the Company will encounter difficulty in meeting its financial obligations. The Company mitigates liquidity risk by the continual review of its cash management and the source and sufficiency of funding to support its plans and activities.
It is clear the stadium issue is one which is a top priority to make progress on. CUOSC and all other shareholders and directors share this view.
The spending on Total Football Expenditure 2015-2018 helped us progress but resulted in very significant financial losses. After further welcome progress in 2016/17, with a resurgent end to that season and with football spending maintained, we disappointedly went back in 2017/18.
In order to restore the viability of the club, after the spending did not bring the promotion we wished for, we need to reduce our Total Football Expenditure and Player Costs to affordable levels in 2018/19. We must reshape the squad to achieve a more effective use of our available playing budget.
The general upward trend in attendances and total ticket income reversed in 2017/18 and this is the major Business issue facing the Club. We need to provide entertainment and winning football that our fans want to see and can afford to pay to watch.
The overall loss in 2018/19 is expected to be much reduced but it will be more than we can afford and therefore will require external funding. We have funding agreements in place for 2018/19 season. However, if the recent trend in falling attendances and associated income continues to be downward, then it is inevitable, that even with the funding support in place, there will be a need to take further remedial action to address any unplanned losses.
Personally, and on behalf of everyone at the Club, I would like to thank all the fans, businesses and community who supported the Club and its player and staff, at all levels of involvement and financial commitment in the past year.
Thank you
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 June 2018.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The auditor, MHA Moore and Smalley, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
select suitable accounting policies and then apply them consistently; make judgements and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2018 and of the group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's or the parent company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £860,000 (2017 - £480,000 loss).
C.U.F.C. Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Brunton Park, Warwick Road, Carlisle, CA1 1LL.
The group consists of C.U.F.C. Holdings Limited and its subsidiary.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold property. The principal accounting policies adopted are set out below.
The consolidated financial statements incorporate those of C.U.F.C. Holdings Limited and its subsidiary.
All financial statements are made up to 30 June 2018. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. As a consolidated group profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
In accordance with their responsibilities the directors have considered the appropriateness of the going concern basis for the preparation of the financial statements.
The group's ability to remain a going concern is dependent on the on-going support of its directors and current financiers due to the loss of £980,863 in the year and the group's net current liabilities of £2,699,138 as at 30 June 2018.
As detailed in the strategic report, the group is seeking to grow its own financial resources to reduce its reliance on external cash support required from its shareholders and other financial supporters. However, the group recognises the inherent uncertainty in trading as a football club and has taken steps to put in place sufficient funds from external financiers, including agreements that adequate resources will be made available to the group to ensure that it has sufficient funds to be able to meet its liabilities as they fall due for a period of at least 12 months from the date of approving the accounts.
The directors have formed a judgement, at the time of approving the financial statements, that there is a reasonable expectation that the group will have adequate resources to continue in operational existence for a period of at least twelve months from the date of approving these accounts. For this reason, and for the reasons referred to in the strategic report, the directors continue to adopt the going concern basis in preparing the financial statements.
Turnover comprises net gate and ticket receipts, television and sponsorship revenue, shop programmes, receipts from the Football League and Premier League and other commercial and miscellaneous income exclusive of Value Added Tax. Season ticket and sponsorship income received prior to the year end in respect of the following football season is treated as deferred income.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence, normally undertaken by professionally qualified valuers. The fair value of the Football Stadium has been calculated using its depreciated replacement cost due to the specialised nature of the property and lack of market-based evidence due to such assets rarely being sold except as part of a continuing business. This is in accordance with paragraph 17.15D of FRS 102.
Revaluation gains and losses are recognised in the Statement of Comprehensive Income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
The fixed asset investment in the subsidiary is valued at the company's percentage shareholding of the net assets of the subsidiary. In the opinion of the directors the fair value of such investments is not considered to be materially different from percentage of the subsidiary's net assets.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Grants are accounted for under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the profit and loss account at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the profit and loss account in the same period as the related expenditure.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In reassessing the asset lives, factors such as physical condition are taken into account. Residual values consider matters such as future market conditions and the remaining estimated life of the premises to calculate their net present values.
Individual freehold properties are carried at revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Fair values are determined from market based evidence such as future market conditions.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
Investment income includes the following:
The actual charge for the year can be reconciled to the expected charge based on the profit or loss and the standard rate of tax as follows:
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
Factors affecting future tax and charges
In his budget speech on 16 March 2016, the UK Chancellor of the Exchequer announced changes which have an effect on the company's future tax position. He announced a reduction in the rate of UK corporation tax to 17% from 1 April 2020. A reduction in the rate of UK corporation tax from 20% to 19% from 1 April 2017 had previously been announced.
As at the balance sheet date, the reductions in the rate of corporation tax had been substantively enacted and therefore any deferred tax has been provided at the appropriate rates.
At the year end the group had estimated tax losses of £2,800,168 (2017: £1,957,180) available to carry forward against future taxable trading profits.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Following the extensive flood damage and subsequent repairs and improvement work performed, a valuation of all land and building assets was undertaken by Robson & Liddle (Rural) Limited, external valuers and members of The Institute of Chartered Surveyors. Due to ongoing construction work at 30 June 2016 and the fact that all capital costs were covered by the company's insurance policy, the valuation was performed as at 1 February 2017 when all construction work had been completed. In the opinion of the directors, this is a true and fair reflection of the value of the property at both 30 June 2017 and 30 June 2018.
The basis of the revaluation was depreciated replacement cost for the football stadium and open market value for residential property and the club shop.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
Tangible fixed assets with a carrying amount of £8,388,135 (2017 - £8,474,277) have been pledged to secure borrowings of the group.
Included within freehold property is land with a valuation of £6,000 (2017 - £6,000) which is not depreciated.
Details of the company's subsidiaries at 30 June 2018 are as follows:
Financial assets measured at amortised cost comprise trade and other debtors.
Financial liabilities measured at amortised cost comprise trade creditors, bank loans, obligations under HP agreements, accruals and other creditors, including loans from directors and related parties.
Included within other creditors is £1,310,000 (2017: 450,000) which is secured by way of a fixed and floating charge over Brunton Park and land around Brunton Park.
The first bank loan is secured by a first legal charge on 269 Warwick Road, Carlisle. This was fully repaid by the company during the year.
The second bank loan is secured by a first legal charge on 257 Warwick Road, Carlisle.
The second bank loan is an interest only arrangement to 31 January 2023, interest is charged at 0.49% above the bank's base rate.
Finance lease obligations are secured against the assets to which they relate.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
As at the signing date of these financial statements, the company has not finalised its capital expenditure programme for the forthcoming year and therefore an assessment as to the likely movement of other relating timing differences cannot be made.
The group operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the group by NEST. The pension cost charge represents contributions payable by the group. An amount of £1,137 (2017: £1,140) is included in other creditors at the year end and is to be paid to NEST.
The company issued 860,000 Ordinary 'B' shares for a consideration of £860,000. This was part of a debt for equity swap undertaken by certain directors. These shares carry no voting rights.
Transfer agreements sometimes involve additional payments or receipts depending upon the future performance of the player and club. At the year end, possible future payments amounting to £nil (2017: £nil) existed under such agreements.
Included within this amount is £nil (2017: £nil) in relation to players sold post year end before the relevant performance criteria were met. Any future payments will be capitalised and amortised, straight line, over the remaining period of the player's contract.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The remuneration of key management personnel is as follows.
During the year the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
The following amounts were outstanding at the reporting end date:
The group has received personal guarantees from certain directors, in respect of an asset financing agreement. The amount of the guarantee is £4,378 (2017: 10,608).
The group has received personal guarantees from certain directors, in respect of a loan provided to the group. The amount of the guarantee is £1,310,000 (2017: 450,000).
During the year the group issued shares to certain directors for a consideration of £860,000 (2017: £480,000).
Company
During the year the company issued shares to certain directors for a consideration of £860,000 (2017: £480,000). These were issued as part of a debt for equity swap and included a debt of £860,000 (2017: 480,000) due from its subsidiary being written off.