Cheltenham Town Association Football Club Limited - Period Ending 2021-05-31

Cheltenham Town Association Football Club Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 9

Cheltenham Town Association Football Club Limited

Company Information

Directors

P Godfrey J Murphy D Bloxham C Gowing P Bence D Beesley R Lewis

Company secretary

P Godfrey

Registered office

Whaddon Road Cheltenham Gloucestershire GL52 5NA

Auditors

Hazlewoods LLP Windsor House Bayshill Road Cheltenham Gloucestershire GL50 3AT

Cheltenham Town Association Football Club Limited

(Registration number: 00324807)
Balance Sheet as at 31 May 2021

	Note	2021  £	2020  £
Fixed assets
Intangible assets	4	3,868	17,439
Tangible assets	5	1,726,036	1,800,787
		1,729,904	1,818,226
Current assets
Stocks	6	16,867	28,440
Debtors	7	367,970	84,251
Cash at bank and in hand		1,315,586	1,024,518
		1,700,423	1,137,209
Creditors: Amounts falling due within one year	8	(770,065)	(312,222)
Net current assets		930,358	824,987
Total assets less current liabilities		2,660,262	2,643,213
Creditors: Amounts falling due after more than one year	8	(1,286,032)	(1,324,452)
Net assets		1,374,230	1,318,761
Capital and reserves
Called up share capital		943,208	943,208
Share premium reserve		1,919,210	1,919,210
Revaluation reserve		71,141	72,699
Profit and loss account		(1,559,329)	(1,616,356)
Total equity		1,374,230	1,318,761

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 25 February 2022 and signed on its behalf by:
 

 

C Gowing
Director

Cheltenham Town Association Football Club Limited

Notes to the Financial Statements for the Year Ended 31 May 2021

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Whaddon Road
Cheltenham
Gloucestershire
GL52 5NA

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

The directors have considered the trading results as disclosed in management information after 31 May 2021 and have prepared financial budgets for the year ending 31 May 2023. The directors believe it is appropriate to prepare the financial statements on a going concern basis on the basis of their forecasts.

Prior period errors

A presentational prior year restatement has been recognised to reclassify deferred income totalling £98,527 from creditors falling due within one year to creditors falling due after more than one year.

Judgements

No significant judgements have been made by management in preparing these financial statements.

Revenue recognition

Turnover represents net gate income (including season ticket sales), Football League subscriptions, Football League distributions, commercial income, media income, player transfer fees, fees for player loans and donations net of Value Added Tax (where applicable). Income is recognised in the period to which it related and services provided, gate and season ticket is income allocated to the periods which matches the service.

Grants

Grants incuding government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Cheltenham Town Association Football Club Limited

Notes to the Financial Statements for the Year Ended 31 May 2021

Intangible assets

The costs associated with acquiring players’ registrations, including agents’ fees, are capitalised and amortised, in equal instalments, over the period of the respective players’ contracts. Where the acquisition of a player registration involves a non-cash consideration, such as an exchange for another player registration, the transaction is accounted for using an estimate of the market value for the non-cash consideration. Provision is made for any impairment and player registrations are written down for impairment when the carrying amount exceeds the amount recoverable through use or sale.

Under the conditions of certain transfer agreements or contract renegotiations, further fees will be payable in the event of the players concerned making a certain number of First Team appearances or on the occurrence of certain other specified future events. Liabilities in respect of these additional fees are accounted for, as provisions, when it becomes probable that the number of appearances will be achieved or the specified future events will occur.

Profits or losses on the sale of players represent the transfer fee receivable, net of any transaction costs, less the unamortised cost of the player’s registration.

Remuneration of players is charged in accordance with the terms of the applicable contractual arrangements and any discretionary bonuses when there is a legal or constructive obligation.

Tangible assets

Tangible assets are stated in the balance sheet at cost or valuation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Long leasehold land and buildings	2% straight line
Plant and machinery	10% - 20% straight line

An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation on these assets is transferred annually from the revaluation reserve to the profit and loss reserve.
 

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold and services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs of sale; the impairment loss is recognised immediately in profit or loss.

Cheltenham Town Association Football Club Limited

Notes to the Financial Statements for the Year Ended 31 May 2021

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Leases

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
 

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets:
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Financial assets:
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Cheltenham Town Association Football Club Limited

Notes to the Financial Statements for the Year Ended 31 May 2021

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 103 (2020 - 91).

4

Intangible assets

	Costs of acquiring player registrations  £
Cost
At 1 June 2020	37,750
At 31 May 2021	37,750
Amortisation
At 1 June 2020	20,311
Amortisation charge	13,571
At 31 May 2021	33,882
Carrying amount
At 31 May 2021	3,868
At 31 May 2020	17,439

Cheltenham Town Association Football Club Limited

Notes to the Financial Statements for the Year Ended 31 May 2021

5

Tangible assets

	Land and buildings £	Plant and machinery  £	Total £
Cost or valuation
At 1 June 2020	2,866,845	956,675	3,823,520
Additions	-	22,964	22,964
At 31 May 2021	2,866,845	979,639	3,846,484
Depreciation
At 1 June 2020	1,210,330	812,403	2,022,733
Charge for the year	54,082	43,633	97,715
At 31 May 2021	1,264,412	856,036	2,120,448
Carrying amount
At 31 May 2021	1,602,433	123,603	1,726,036
At 31 May 2020	1,656,515	144,272	1,800,787

Net book value of land and buildings above is in respect of long leasehold land and buildings.

Historical cost of long leasehold land and buildings included at valuation
This class of asset includes items which have a carrying amount at historical cost of £135,722 (2020 - £135,722). The accumulated depreciation on this historical cost would be £64,104 (2020 - £61,390). They are included in the balance sheet at a valuation less accumulated depreciation of £142,759 (2020 - £147,031).

6

Stocks

	2021  £	2020  £
Goods for re-sale	16,867	28,440

7

Debtors

	2021  £	2020  £
Trade debtors	232,844	47,784
Other debtors	135,126	36,467
	367,970	84,251

Cheltenham Town Association Football Club Limited

Notes to the Financial Statements for the Year Ended 31 May 2021

8

Creditors

	Note	2021  £	(As restated) 2020  £
Due within one year
Loans		39,800	39,800
Trade creditors		249,679	153,237
Other creditors		480,586	119,185
		770,065	312,222
Due after one year
Grants	9	902,320	930,925
Loans		288,834	295,000
Deferred income		94,878	98,527
		1,286,032	1,324,452

9

Grants

	Grants  £
Amount advanced
At 1 June 2020 and at 31 May 2021	1,430,299
Amortisation
At 1 June 2020	499,374
Amortisation	28,605
At 31 May 2021	527,979
Carrying amount
At 31 May 2021	902,320
At 31 May 2020	930,925

The grants relate to grants advanced by the Football Trust to finance stadium developments.

Cheltenham Town Association Football Club Limited

Notes to the Financial Statements for the Year Ended 31 May 2021

10

Share capital

Allotted, called up and fully paid shares

	2021		2020
	No.	£	No.	£
Ordinary shares of £0.50 each	1,886,416	943,208	1,886,416	943,208

11

Commitments

Operating lease commitments
The company has future operating lease commitments of £1,724,990 (2020 - £1,763,985). This includes the lease of the stadium at the current rental rate for the term of the lease until 1 January 2105.

12

Related party transactions

Transactions with shareholders
During the year an interest free loan from a shareholder of £100,000 for a fixed term of ten years was received. In addition a further interest free loan from the same shareholder of £134,150 is repayable at one year’s notice of repayment. In accordance with the Company’s accounting policy and UK financial reporting standards such loans are reported in the balance sheet at their fair value which is calculated based on a commercial rate of interest for a similar loan. This fair value of these loans has been calculated by assuming a commercial rate of interest of 5% and is included in creditors payable after mone than one year in the sum of £188,834 The difference between the reported liability and amount advanced is taken directly to equity and amounts to £45,316.

13

Audit report

The Independent Auditor's Report was unqualified and there were no matters to which the auditors drew attention by emphasis. The name of the Senior Statutory Auditor who signed the audit report on 25 February 2022 was David Main, who signed for and on behalf of Hazlewoods LLP.