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Registered number: 00181839
MANSFIELD TOWN FOOTBALL CLUB LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2020
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MANSFIELD TOWN FOOTBALL CLUB LIMITED
REGISTERED NUMBER: 00181839
BALANCE SHEET
AS AT 31 DECEMBER 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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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 comprehensive income 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 22 December 2021.
The notes on pages 3 to 11 form part of these financial statements.
Page 1
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MANSFIELD TOWN FOOTBALL CLUB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 3 to 11 form part of these financial statements.
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Page 2
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MANSFIELD TOWN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Mansfield Town Football Club Limited is a Company limited by shares and incorporated in England. The Company registration number is 00181839. The Company registered office is Field Mill Ground, Quarry Lane, Mansfield, Notinghamshire, NG18 5DA. The principal activity of the Company is the operation 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 (see note 3).
The Company's functional and presentational currency is GBP.
The Company has prepared it's financial statements to the nearest £.
The following principal accounting policies have been applied:
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Financial reporting standard 102 - reduced disclosure exemptions
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The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of RSCPBR Ltd as at 31st December 2020 and these financial statements may be obtained from Companies house.
At the balance sheet date, the Company had net liabilities of £4,234,482. The Company is reliant on funding and sponsorship from fellow subsidiaries in the RSCPBR Ltd group to meet day to day capital requirements.
As part of their assessment the directors have considered a period in excess of 12 months from that date of approval of the financial statements and identified further support will be required over this period. The directors believe that the Company will continue to be supported by the wider RSCPBR group and it's connected companies for at least 12 months following the date of approval of the financial statements and thus have determined that the going concern basis of preparing the financial statements is appropriate. However whilst the directors are confident that the company's creditors and sponsors will continue to provide the necessary funds and support through sponsorship, finance injections and deferring collect of loans there is no guarantee that this will continue to be the case. If this support was withdrawn significant doubt would be cast on the company's ability to continue as a going concern.
Page 3
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MANSFIELD TOWN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue 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 revenue is recognised:
Sale of goods
Revenue 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 revenue 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
Revenue 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 revenue 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.
Revenue received in advance of a period end but relating to events occurring in future periods, principally season ticket income, is treated as deferred income. The deferred income is released to sales as and when the Company performs it's contractual obligations in relation to that income, for example as each home game is played.
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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 relating to expenditure on tangible fixed assets are credited to profit or loss 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 Statement of comprehensive income in the same period as the related expenditure.
Page 4
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MANSFIELD TOWN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 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 defined benefit pension scheme
The Company is an employer who participates in the Football League Pension and Life Assurance (FLPLA) Scheme. The Company continues to make contributions in respect of its share of the deficit of this defined benefit pension scheme. Accrual of the benefits on a final salary basis was suspended with effect from 31 August 1999, when actuarial review showed a substantial deficit. As one of the number of participating employers the Company is advised only of its share of the scheme deficit and recognises a liability in respect of this. Contributions payable to the scheme reduce this liability.
Under FRS102 the scheme would be treated as a defined benefit multi-employer scheme, however the scheme's actuary has advised that the participating employer's share of the underlying assets and liabilities cannot be identified on a reasonable and consistent basis and accordingly no disclosures are made under the provisions of FRS102 section 28.
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 income 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.
Page 5
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MANSFIELD TOWN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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Player registrations and agent commissions
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Over the length of player contracts
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Where agent fees relate to a period of one season or less, these are recognised as a current asset within prepayments as opposed to an intangible asset.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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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.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Page 6
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MANSFIELD TOWN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
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, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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In application of the Company's accounting policies the directors are required to make judgements, estimates and assumptions about the carrying amounts of certain assets and liabilities. These estimates are reviewed on an ongoing basis. The following critical judgements have been applied in preparing these financial statements:
Carrying value of group and connected company balances
The Company has made and received loans from companies related to it by group ownership and by common control. Loans standing as a debtor balance are reviewed for impairment. The review includes the current financial situation as well as future prospects of the companies in question.
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In the prior year financial statements, employees whose costs were recharged to group and connected companies were disclosed within the Company's average number of employees. This has been restated to reflect the substance over form of employee costs which the Company actually incurs.
In the current year, staff recharged to other companies totalled 203 (2019: 232).
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The average monthly number of employees, including directors, during the year was 46 (2019 - 42).
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Page 7
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MANSFIELD TOWN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Player registrations & agent commissions
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Charge for the year on owned assets
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Amounts owed by group undertakings
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Called up share capital not paid
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Prepayments and accrued income
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Amounts owed by connected companies
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Amounts owed by group and connected companies are interest free and repayable on demand.
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Page 8
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MANSFIELD TOWN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group companies are interest free and repayable on demand.
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Allotted, called up and fully paid
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99,324 (2019 - 99,324) Ordinary shares of £0.50 each
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10,000 (2019 - 10,000) "A" Ordinary shares of £0.50 each
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447,486 (2019 - 447,486) Community shares of £0.50 each
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1,854,552 (2019 - 1,854,552) Preference shares of £1.00 each
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Ordinary and Community shares entitle the holders to receive notice and attend general meetings of the Company, entitle holders to vote on shareholder resolutions, have no restriction on distribution of dividends and entitle the holders for return on capital to their respective shareholdings.
"A" Ordinary shares rank equally in all respects with the Ordinary shares except for holders not being entitled to receive notice of general meetings or attending or voting at these meetings unless a resolution has been passed for the winding up of the Company.
Preference shares have no voting rights, but have no restriction on distribution of dividends and entitle the holders for return on capital to their respective shareholdings.
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Page 9
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MANSFIELD TOWN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Share premium account
Represents consideration received for shares issued above the nominal value of the shares, less any related transaction costs incurred.
Special reserve
Represents amounts received for reissued shares previously held on trust and capital redemption reserves.
Profit and loss account
Includes all current and prior period retained profits and losses and is distributable.
The Company 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 £40,993 (2019 - £66,767). Contributions totalling £26,289 (2019 - £34,348) were payable to the fund at the balance sheet date and are included in creditors.
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Related party transactions
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Included within other creditors are amounts owed to directors and ex-directors totalling £688,017 (2019: £608,017). The amounts owed are interest free and repayable on demand.
The Company is owed £267,939 (2019: £267,939) from shareholders in respect of unpaid share capital.
The Company is owed £903,989 (2019: £930,488) from companies under common control. The amounts are interest free and repayable on demand.
The Company is owed £341,530 (2019: £242,020) from fellow group companies and owes £4,523,361 (2019: £4,542,361) to fellow group companies. The amounts are interest free and repayable on demand.
The Company made sales of £891,250 (2019: £2,627,499) to fellow group companies. The Company incurred management charges of £36,050 (2019: £32,067) from fellow group companies.
The Company incurred rent costs of £47,210 (2019: £47,210) from a company under common control. The Company made academy contributions of £30,000 (2019: £100,000) to a company under common control.
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The immediate parent company is Mansfield Town 1861 Limited by virtue of it's controlling interest in the equity capital in Mansfield Town Football Club Limited. The ultimate parent company is RSCPBR Ltd, which is incorporated in England. This Company heads the largest and smallest group in which the Company's results are consolidated. Copies of the financial statements of RSCPBR Ltd can be obtained from Companies house.
The ultimate controlling party is J L Radford by virtue of his controlling interest in the equity capital in RSCBPR Ltd.
Page 10
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MANSFIELD TOWN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
The auditors' report on the financial statements for the year ended 31 December 2020 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
We draw attention to note 2.3 in the financial statements, which indicates that the company is reliant on the support of it's creditors and sponsors. As stated in note 2.3, these events or conditions, along with the other matters as set forth in note 2.3, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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The audit report was signed on 23 December 2021 by James Delve (Senior statutory auditor) on behalf of PKF Smith Cooper Audit Limited.
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