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Registered number: 00482197
CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 JUNE 2020
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CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
REGISTERED NUMBER: 00482197
BALANCE SHEET
AS AT 30 JUNE 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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TOTAL ASSETS LESS CURRENT LIABILITIES
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Creditors: amounts falling due after more than one year
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CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
REGISTERED NUMBER: 00482197
BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2020
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 March 2021.
The notes on pages 3 to 14 form part of these financial statements.
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CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Cambridge United Football Club Limited is a private company, limited by shares, incorporated in England and Wales, United Kingdom. Its registered address is Abbey Stadium, Newmarket Road, Cambridge, United Kingdom, CB5 8LN.
The principal activity of the company continued to be the running of a football club.
2.ACCOUNTING POLICIES
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BASIS OF PREPARATION OF FINANCIAL STATEMENTS
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The financial statements are presented in sterling which is the functional currency of the company and are rounded to the nearest pound.
The following principal accounting policies have been applied:
The company's ability to continue trading relies on the continued support from the existing shareholders which is expected to continue for the foreseeable future.
The uncertainty as to the future impact on the company of the recent Covid-19 outbreak in particular has been considered as part of the company's adoption of the going concern basis. As a result of this outbreak, the directors are preparing cash flow forecasts on a regular basis to ensure there are sufficient cash resources in place to support the company's activities and are making use of government funding schemes where considered appropriate.
As such, the directors believe that despite the company being operationally and financially challenged due to the Covid-19 pandemic, there are sufficient resources in place to sustain the immediate budgeted losses. Therefore, the directors continue to adopt the going concern basis in preparing the financial statements.
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CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.ACCOUNTING POLICIES (CONTINUED)
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Sale of goods
Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of turnover can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of turnover can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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OPERATING LEASES: THE COMPANY AS LESSEE
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.
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CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.ACCOUNTING POLICIES (CONTINUED)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Multi-employer pension plan
The Company is a member of a multi-employer plan. Where it is not possible for the Company to obtain sufficient information to enable it to account for the plan as a defined benefit plan, it accounts for the plan as a defined contribution plan.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.ACCOUNTING POLICIES (CONTINUED)
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TANGIBLE FIXED ASSETS (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Leasehold property improvements
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Over the life of the lease or 10% straight line
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Transfer fees and transfer levies payable associated with the acquisition of players' registrations are capitalised as intangible fixed assets and are initially recognised at cost. After recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Amortisation is provided at rates calculated to write off the cost of the intangible asset over the duration of the player's contract.
At each reporting date the company assesses whether there is any indication of impairment. The directors consider that it is not possible to determine the value in use of an individual player in isolation, however where there are circumstances as at the period end where the player would not be available for selection, the player is valued on a recoverable amount basis, being the best estimate of the player's fair value less cost to sell. Any resulting impairment charge is included within operating expenses in the Statement of Comprehensive Income.
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted averagebasis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price.
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CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.ACCOUNTING POLICIES (CONTINUED)
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CASH AND CASH EQUIVALENTS
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.
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The average monthly number of employees, including directors, during the year was 183 (2019 - 212). This comprises of 88 (2019 - 93) full time staff, including directors, and 95 (2019 - 119) part time staff.
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CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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Charge for the year on owned assets
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CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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Long-term leasehold property
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Charge for the year on owned assets
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CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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Investments in subsidiary companies
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SUBSIDIARY UNDERTAKING
During the year the company held of a 67% investment in the ordinary share capital of Cambridge United China Collaborations Limited, a company registered in England and Wales with a principal activity of Football training courses. For further details see note 14.
Cambridge United China Collaborations Limited was dissolved at Companies House on 22 September 2020.
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CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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Finished goods and goods for resale
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Prepayments and accrued income
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CASH AND CASH EQUIVALENTS
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CREDITORS: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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CREDITORS: Amounts falling due after more than one year
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CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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Analysis of the maturity of loans is given below:
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AMOUNTS FALLING DUE WITHIN ONE YEAR
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AMOUNTS FALLING DUE 1-2 YEARS
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AMOUNTS FALLING DUE 2-5 YEARS
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Allotted, called up and fully paid
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Nil (2019 - 2,668,864) Ordinary shares of £0.50 each
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87,436,246 (2019 - 60,747,619) Ordinary shares of £0.05 each
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During the year the company undertook a share reorganisation where it reclassified the share capital into the following:
747,606 Rounding shares of £0.05 each
668,864 Rounding shares of £0.50 each
60 consolidated Ordinary shares of £50,000 each
2 consolidated Ordinary shares of £500,000 each
The company then sub-divided all issued shares into 5p shares giving an issued share capital of 87,436,246 Ordinary shares of £0.05 each at the year end date.
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CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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IMPAIRMENT OF INVESTMENT IN SUBSIDIARY
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Impairment of investment in subsidiary
In the prior year the Directors of Cambridge United China Collaborations Limited took the decision to cease trading with immediate effect and begin strike off procedures at Companies House. As a result, the investment in the subsidiary was impaired in full down to £Nil.
Write off of intercompany balance owed to subsidiary
As a result of the above decision to cease to trade, the Directors of Cambridge United China Collaborations Limited agreed to write off the balance of the intercompany loan account with Cambridge United Football Club Limited, leaving no balance as at the year end.
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As part of player registrations, the company enters into transfer agreements whereby amounts might become payable if certain conditions are fulfilled. Additional amounts due as a result of player appearances and team results to a maximum of £5,000 (2019 - £25,000) could become payable under terms of contracts as at 30 June 2020. These contracts also include possible percentage sell-on liabilities, although it is impractical to make an estimate of any potential amounts that could become due.
The company also benefits from similar terms when players are sold, and during the year £79,725 (2019 - £Nil) was received and included within profits on disposal of player registrations. Given the nature of the calculations, which include future player appearances and percentage sell-on clauses, it is impractical to make an estimate of the contingent asset that might arise from transfers completed before 30 June 2020.
The Company is one of a number of participating employees in the Football League Limited Pension and Life Assurance Scheme. The scheme is administered nationally and is now closed to new members. The company is unable to identify its share of the assets and liabilities of the scheme and therefore accounts for its contributions as if they were paid to a defined contribution scheme.
The latest actuarial valuation of the scheme, which was undertaken in 2017 indicated that the scheme remains in deficit and, in accordance with the scheme rules, the company, along with the other football clubs, are required to make payments to the scheme to reduce the deficit. The outstanding liability will be paid to the pension scheme on a monthly basis over a period of approximately eight years. The total pension charge for the year was £2,298 (2019 - £1,852) and the total amount payable to the pension scheme as at 30 June 2020 was £10,979 (2019 - £13,277) and is included in creditors.
The Company also operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £26,259 (2019 - £22,896). Contributions totalling £4,037 (2019 - £4,913) were payable to the fund at the balance sheet date and are included in creditors.
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CAMBRIDGE UNITED FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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COMMITMENTS UNDER OPERATING LEASES
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At 30 June 2020 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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The company has entered into a memorandum of understanding whereby the landlord has agreed at their discretion, on an annual basis to reduce the annual rental charge to £100,000, so long as both parties continue to work together to promote the redevelopment or relocation of the Abbey Stadium. The club also received three months rent relief due to COVID-19. The annual rental charge for the year under the lease was £75,000 (2019 - £100,000).
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Later than 1 year and not later than 5 years
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RELATED PARTY TRANSACTIONS
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During the year the company recieved loans from its shareholder, Paul Barry. The amount outstanding at the year end and included within creditors is £1,563,341 (2019 - £1,040,000).
During the year the company also received monies from Cambridge United Sporting Club, Inc, a company in which Paul Barry is the majority shareholder. The amount outstanding at the year end and included within creditors is £1,000,000 (2019 - £Nil).
Post year end, amounts due to Paul Barry totalling £1,563,341 were novated to Cambridge United Sporting Club, Inc. Once novated, amounts due to Cambridge United Sporting Club, Inc totalling £2,063,341 were converted to share capital. This conversion resulted in an additional 41,266,812 Ordinary shares of £0.05 being issued to Cambridge United Sporting Club, Inc. There remains a loan of £500,000 due to Cambridge United Sporting Club, Inc which is interest free.
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