Southend United Football Club Ltd - Limited company accounts 23.2

REGISTERED NUMBER: 00089767 (England and Wales)

SOUTHEND UNITED FOOTBALL CLUB

LIMITED (THE)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

18

DIRECTORS:

R Martin

G J Lockett

D M Markscheffel

F Van Wezel

REGISTERED OFFICE:

2nd Floor

4 Beaconsfield Road

St Albans

Hertfordshire

AL1 3RD

REGISTERED NUMBER:

00089767 (England and Wales)

AUDITORS:

Hilden Park Accountants Limited

Chartered Accountants

& Statutory Auditors

Hilden Park House

79 Tonbridge Road

Hildenborough

Tonbridge

Kent

TN11 9BH

The directors present their strategic report for the year ended 31 July 2023.

Introduction

The filing of these accounts and the drafting of this statement have been delayed in the first instance by the COVID19 pandemic and most recently due to a Group company restructure. This statement comments on the period in question but also references changes that have been made post the accounting period.

Roots Hall Stadium was built in 1955 (with the principal stand of timber construction), the age and method of construction of the stadium means that costly maintenance is required in order to obtain a Safety Certificate. This position is unsustainable and consequently the stadium is in need to substantial redevelopment. The East Stand needs replacing in its entirety and the other stands will require refurbishment.

In March 23 South Eastern Leisure (UK) Limited announced its intention to sell its shareholding in the Club. Ultimately a deal was struck with COSU FC Limited and contracts were exchanged on 23/12/2023. At the time of writing (19/06/2024) the sale of the Club has not completed, but when it does, it will result in investment into the infrastructure. In time, as part of the deal, Ron Martin through companies in his control will provide £20m to assist in the redevelopment of Roots Hall.

REVIEW OF BUSINESS

The first team under the stewardship of Kevin Maher, supported by Darren Currie and Mark Bentley have introduced free flowing attacking football - which once again forms part of our DNA.

Under Kevin's leadership the first team finished the 2021/22 season in 13th position, pulling clear of the relegation zone. In the 2022/23 season the first team finished in 8th position narrowly missing out on a playoff spot. But for a ten point deduction, the team would have finished 6th, comfortably in the play-off spots in the 2023/24 season - clear progression.

The Board are grateful for the hard work undertaken by Kevin and his team and believe we are well placed for next season.

PRINCIPAL RISKS AND UNCERTAINTIES

Our current stadium is not fit for purpose in the modern era, with increasing costs year on year to ensure we maintain the standards demanded by the authorities. For that reason alone, support from the Council is crucial.

The Club has been for many years, and continues to be, reliant on its parent company, South Eastern Leisure UK Limited, for support. Without this support the Club would not be able to continue operations albeit since September 2023 the club has been funded by a consortium who have exchanged contracts to purchase the club, completion targeted for Summer/Autumn 2024.

Roots Hall is the spiritual home of Southend United and fans and stakeholders are supportive of the plans to remain at the current ground rather than move to the Fossetts Farm stadium. However substantial redevelopment works are required to improve the matchday experience and to create non matchday revenue to support the losses made through the football operations

FINANCIAL KEY PERFORMANCE INDICATORS

1. The Operating loss was £2,458m for the year (£2,558 in 2022);

2. The Loss for the year was £2,749m compared to £2,717m in 2022;

3. The Company continues solely because of the Group funding which has increased from £16.1m to £18.7m during the year under review;

4. The current year loss has been funded by the loans from Group Undertakings.

ON BEHALF OF THE BOARD:

R Martin - Director

19 June 2024

The directors present their report with the financial statements of the company for the year ended 31 July 2023.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a Professional Football Club.

DIVIDENDS

No dividends will be distributed for the year ended 31 July 2023.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report.

R Martin

G J Lockett

D M Markscheffel

F Van Wezel

Principal risks and uncertainties

The Company, as is the industry, exposed to a variety of risks. These range from the wider effects of the general economy and external competition to those more specific to the Company, such as its own financial strength, size and league in which it currently competes. There are also risks, but manageable, associated with operating an old stadium to maintain the latest safety regulations. The Board regularly review these risks to ensure their potential impact on the Company can be mitigated. The Board monitors the Company's performance through use of regular financial information and management reports. The Board focuses on the Company's levels of profitability across individual business sectors, liquidity and balance sheet strength.

Treasury operations and financial instruments

The Company operates a treasury function which is responsible for managing the liquidity and interest risks associated with the Company's activities. The Company's principal financial instruments are loans, the main purpose of which is to raise finance for the Company's operations. In addition, the Company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.

Liquidity risks

The Company manages its cash and borrowing requirements to minimise interest expense, whilst ensuring the Company has sufficient liquid resources to meet the operating needs of the business.

Future developments

The Club continues to seek improvements in its turnover and trading performance albeit this has been hampered by relegation from the EFL to the NL. To move towards a sustainable breakeven position (should, as in proposed under the pending sale of the club, the Fossett Farm stadium plans being discarded) the focus will be on redeveloping Roots Hall particularly, the East Stand. The plan is to create a commercial hub which may include a substantial conference and banqueting business, office space and other event space. It is likely that the kiosks and toilets at the rear of the west stand will be replaced too. The South, the newest stand, requires some attention and, in time, it is likely that the North will be replaced in its entirety too.

In the year ending 2023, the Company was dependant on funding from its major shareholder and parent company, South Eastern Leisure (UK) Limited, without which the club's operation would have ceased long ago. The Directors would like to thank them for this continued financial support.

Charitable donations

The Company provides a significant number of local charities, football teams and schools with free tickets and signed merchandise. The Company also provides resources and accommodation to the Southend United Community and Educational Trust (now rebranded as Southend United Community Foundation), a registered charity. The Club has not quantified the cost of the resource given, even though it is substantial and has spanned over two decades. The club has no intention of recovering this cost from the Trust as it is part of our Corporate Social responsibilities of which we are very proud.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Hilden Park Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R Martin - Director

19 June 2024

Opinion

We have audited the financial statements of Southend United Football Club Limited (The) (the 'company') for the year ended 31 July 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 July 2023 and of its 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 qualified opinion

The Company owns a Soccer Dome and this is carried at a value of £434,122 within fixed assets in the Statement of Financial Position as at 31 July 2023. We were unable to obtain sufficient appropriate audit evidence from third parties in order to confirm that this value is still appropriate. Consequently, we were unable to determine whether any adjustment to this amount was necessary.This was a similar position at 31 July 2022 regarding a lack of audit evidence from third parties to confirm the vale was still appropriate.

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 Auditors' 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 qualified opinion.

Material uncertainty related to going concern

We draw attention to the income statement in the financial statements, which indicates that the company incurred a net loss of £2,749,457 during the year ended 31 July 2023 and, as of that date, the company's liabilities exceeded its assets by £24,116,041. As such this indicates that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our audit opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and determined that the most significant which have a direct material effect on the amounts and disclosures in the financial statements are the Companies Act 2006 and The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

We also identified other laws and regulations which do not have a direct effect on the amounts and disclosures in the financial statements, but which compliance is fundamental to the entity's operations including Employment Law, Health and Safety Law, Data Protections Laws (including UK General Data Protection Regulation (GDPR), Food Hygiene and the National League regulations and enquires were made with management regarding procedures in place to ensure compliance.

Having reviewed the laws and regulations applicable to the company, we designed and performed audit procedures to obtain sufficient appropriate evidence. Specifically we:

- Assigned an engagement team to the audit that collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

- Enquired with management on any non compliance with laws and regulations.

- Reviewed the legal expense accounts and legal correspondence to identify potential litigation or claims involving the entity.

- Reviewed internal policies and procedures and external guidance.

- Reviewed the completeness and accuracy of associated disclosures made in the financial statements.

We assessed the susceptibility of the company's financial statements to material misstatement and fraud and in doing so:

- Considered whether there were areas of the financial statements particularly susceptible to fraud and enquired with management as to any known or suspected instances of fraud and their assessment of fraud risk.

- Considered whether management have incentives and opportunities to manipulate financial results and determined the key audit risks related to completeness of income and creditors and management override of controls.

- The risk of management override of controls has been reviewed and audited, including through testing journal entries, accounting estimates and other adjustments for appropriateness. Furthermore, analytical procedures were undertaken to identify any unusual or unexpected relationships and transactions and the rationale behind these was investigated.

- The risk of completeness of income has been reviewed and audited, including through substantive testing, along with a review of the appropriateness of the accounting policy concerning income recognition and completing detailed cut off testing either side of the balance sheet date.

- Designed and performed audit procedures to obtain sufficient appropriate evidence including substantive testing in relation to creditors.

The audit has been planned and performed in such a way as to best identify risks of material misstatement, however the inherent limitations of audit procedures means that there remains a risk that material misstatements may not be identified. In particular we are aware of the inherent difficulties in detecting irregularities and irregularities that result from fraud may be more difficult to detect than irregularities from error due, for example, to override of controls, collusion or misrepresentations. In addition, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Paul Matthews BSc FCA (Senior Statutory Auditor)

for and on behalf of Hilden Park Accountants Limited

Chartered Accountants

& Statutory Auditors

Hilden Park House

79 Tonbridge Road

Hildenborough

Tonbridge

Kent

TN11 9BH

19 June 2024

TURNOVER

3

2,926,997

3,362,888

Cost of sales

3,596,309

3,843,849

GROSS LOSS

(669,312

)

(480,961

)

Administrative expenses

1,788,277

2,086,467

(2,457,589

)

(2,567,428

)

Other operating income

-

9,801

OPERATING LOSS

5

(2,457,589

)

(2,557,627

)

Interest payable and similar expenses

6

291,868

159,753

LOSS BEFORE TAXATION

(2,749,457

)

(2,717,380

)

Tax on loss

7

-

-

LOSS FOR THE FINANCIAL YEAR

(2,749,457

)

(2,717,380

)

LOSS FOR THE YEAR

(2,749,457

)

(2,717,380

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(2,749,457

)

(2,717,380

)

FIXED ASSETS

Intangible assets

8

44,867

79,860

Tangible assets

9

449,293

450,932

494,160

530,792

CURRENT ASSETS

Stocks

10

18,421

12,470

Debtors

11

335,176

719,794

Cash at bank and in hand

87,807

19,387

441,404

751,651

CREDITORS

Amounts falling due within one year

12

25,032,531

22,619,910

NET CURRENT LIABILITIES

(24,591,127

)

(21,868,259

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(24,096,967

)

(21,337,467

)

CREDITORS

Amounts falling due after more than one year

13

19,074

29,117

NET LIABILITIES

(24,116,041

)

(21,366,584

)

CAPITAL AND RESERVES

Called up share capital

16

169,488

169,488

Share premium

17

676,702

676,702

Retained earnings

17

(24,962,231

)

(22,212,774

)

SHAREHOLDERS' FUNDS

(24,116,041

)

(21,366,584

)

The financial statements were approved by the Board of Directors and authorised for issue on 19 June 2024 and were signed on its behalf by:

R Martin - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 August 2021

169,488

(19,495,394

)

676,702

(18,649,204

)

Changes in equity

Total comprehensive income

-

(2,717,380

)

-

(2,717,380

)

Balance at 31 July 2022

169,488

(22,212,774

)

676,702

(21,366,584

)

Changes in equity

Total comprehensive income

-

(2,749,457

)

-

(2,749,457

)

Balance at 31 July 2023

169,488

(24,962,231

)

676,702

(24,116,041

)

Cash flows from operating activities

Cash generated from operations

1

459,507

349

Interest paid

(115,601

)

(159,753

)

Finance costs paid

(176,267

)

-

Net cash from operating activities

167,639

(159,404

)

Cash flows from investing activities

Purchase of intangible fixed assets

(72,000

)

(100,000

)

Purchase of tangible fixed assets

(4,237

)

(10,783

)

Government grants received

-

9,801

Net cash from investing activities

(76,237

)

(100,982

)

Cash flows from financing activities

New loans in year

252,000

350,000

Loan repayments in year

(368,254

)

(96,262

)

Interest paid

93,272

1,674

Net cash from financing activities

(22,982

)

255,412

Increase/(decrease) in cash and cash equivalents

68,420

(4,974

)

Cash and cash equivalents at beginning of year

2

19,387

24,361

Cash and cash equivalents at end of year

2

87,807

19,387

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31/7/23

31/7/22

£

£

Loss before taxation

(2,749,457

)

(2,717,380

)

Depreciation charges

69,676

12,591

Loss on disposal of fixed assets

43,193

835,074

Amortisation of intangible assets

-

25,961

Increase in amounts owed by groups

2,611,431

-

Increase in amounts owed to groups

-

470,103

Government grants

-

(9,801

)

Finance costs

291,868

159,753

266,711

(1,223,699

)

Increase in stocks

(5,951

)

(2,506

)

Decrease in trade and other debtors

384,616

88,954

(Decrease)/increase in trade and other creditors

(185,869

)

1,137,600

Cash generated from operations

459,507

349

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2023

31.7.23

1.8.22

£

£

Cash and cash equivalents

87,807

19,387

Year ended 31 July 2022

31.7.22

1.8.21

£

£

Cash and cash equivalents

19,387

24,361

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.8.22

Cash flow

At 31.7.23

£

£

£

Net cash

Cash at bank and in hand

19,387

68,420

87,807

19,387

68,420

87,807

Debt

Debts falling due within 1 year

(391,207

)

12,940

(378,267

)

Debts falling due after 1 year

(29,117

)

10,043

(19,074

)

(420,324

)

22,983

(397,341

)

Total

(400,937

)

91,403

(309,534

)

1.	STATUTORY INFORMATION

Southend United Football Club Limited (The) is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in pounds sterling and rounded to the nearest pound.

Going concern

The financial statements have been prepared on the going concern basis. The Directors are confident that its major shareholder and parent company, South Eastern Leisure (UK) Limited, will continue to provide the necessary funds to the Company through their financing facilities. In addition, a resolution was passed on 17 November 2023 which will see a substantial amount of debt converted to shares in the company. This resolution will be executed as part of the sale of the Club, which is targeted to complete in Summer/Autumn 2024. Also, as part of the sale process, remaining group company loans to the club will be written off. The combination of these events will make a material improvement to the company's Balance Sheet.

There can be no certainty in these matters, however on this basis, the Directors consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from a withdrawal of funding facilities.

Critical accounting judgements and key sources of estimation uncertainty

There were no critical judgments made in the process of applying the Company's accounting policies.

There were no key assumptions concerning the future, and other key sources of estimation uncertainty at

the balance sheet date, that have a significant risk of causing a material adjustment to the carrying

amounts of assets and liabilities within the next financial year.

Turnover

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:

i) the Company has transferred the significant risks and rewards of ownership to the buyer;

ii) the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

iii) the amount of revenue can be measured reliably;

iv) it is probable that the Company will receive the consideration due under the transaction; and

v) 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:

i) the amount of revenue can be measured reliably;

ii) it is probable that the Company will receive the consideration due under the contract;

iii) the stage of completion of the contract at the end of the reporting period can be measured

reliably; and

iv) the costs incurred and the costs to complete the contract can be measured reliably.

Intangible assets

The costs associated with the acquisition of player registrations are capitalised as intangible fixed assets. These costs are amortised over the period of their contract on a straight line basis. An impairment review is carried out at the end of each financial year to establish if any events or changes in circumstances indicate the carrying values may not be recoverable. Signing on fees and subsequent appearance fees are accounted for in the period in which they become payable or receivable.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Long leasehold

-

33% straight line

Fixtures & fittings

-

33% straight line

Motor vehicles

-

20% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The Company only enters into basic financial instruments 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 non-puttable 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.

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 comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31/7/23

31/7/22

£

£

Operations and other income

394,842

373,332

Player trading income

165,000

211,264

Centre of Excellence Income

249,500

466,948

Sales - League Income

1,002,195

1,160,278

Sales - Season Tickets

465,141

474,276

Advertising Income

236,600

173,679

Shop royalties income

66,040

78,400

Television Income

10,000

14,000

Sales - Food/Drink

337,679

327,996

Premier League support

-

82,715

2,926,997

3,362,888

4.	EMPLOYEES AND DIRECTORS

31/7/23

31/7/22

£

£

Wages and salaries

2,653,858

2,706,602

Social security costs

239,069

252,170

Other pension costs

22,279

16,867

2,915,206

2,975,639

The average number of employees during the year was as follows:

31/7/23

31/7/22

Playing, Training and Coaching

64

71

Establishment and ground maintenance

30

46

Directors

4

4

98

121

31/7/23

31/7/22

£

£

Directors' remuneration

-

-

The total key management personnel remuneration during the year was £135,871 (2022: £179,568).