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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Tottenham Hotsp | LSE:TTNM | London | Ordinary Share | GB0008962986 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 39.25 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
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TIDMTTNM
RNS Number : 1043P
Tottenham Hotspur PLC
19 March 2009
Date: 19th March 2009
TOTTENHAM HOTSPUR PLC
Interim Results for the Six Months Ended 31 December 2008
Summary
* Revenue increased to GBP54.9m (6 months ended 31 December 2007: GBP54.5m) with
higher income from gate receipts, media and broadcasting, and sponsorship.
* Record profit from operations at GBP42.2m (31 December 2007: GBP1.8m) enhanced
by player trading.
* Cash generation continues to be strong.
* Investment continued during the period with intangible assets increasing by 53%
to GBP106.8m (31 December 2007: GBP69.7m).
* Total assets increased by 65% to GBP291.7m (31 December 2007: GBP177.0m).
* Preliminary works starting next month for the new world class Training Centre on
over 60 acres in Enfield.
* Submission of full planning application for the Northumberland Development
Project is due in the next few months.
Daniel Levy, Chairman of Tottenham Hotspur plc, said:
"We have benefited from having a robust business that is well financed and has
continued to be able to support investment in the First Team, whilst progressing
two major capital expenditure projects, the new Training Centre and the
Northumberland Development Project. We remain mindful of the prevailing economic
climate from which no one can consider themselves immune."
Enquiries:
Daniel Levy, Chairman
Matthew Collecott, Finance Director Tel: 020 8365 5322
Tottenham Hotspur plcwww.tottenhamhotspur.com
John Bick Tel: 07917 649362
Hansard Group
Jonathan Wright
Seymour Pierce Tel: 020 7107 8000
Chairman's Statement
Financial Results
I am pleased to announce another set of record financial results for the six
months ended 31 December 2008. In a period of global economic recession this is
a considerable achievement and we acknowledge that both the strength of our
business and the fantastic loyalty shown by our supporters have helped ensure
that these results have not been materially affected.
Revenue remains strong at GBP54.9m for the period (2007: GBP54.5m), with media
and broadcasting revenues contributing GBP18.1m (2007: GBP17.8m), chiefly
through the central FAPL TV rights deal.
Premier League gate receipts rose to GBP10.4m (2007: GBP9.5m) in the first six
months of the year and this can be attributed to the categories of the matches
falling within the period and the fact that every game continues to be played to
full or near capacity.
For the third successive season, we qualified for and progressed through the
group stages of the UEFA Cup and for the second year running, by the turn of the
year, we had reached the semi-finals of the League Cup, ultimately reaching the
final in March. Despite playing one less home Cup game this period than at the
same stage last season, gate receipts for cup competitions show a small increase
of GBP0.2m.
Sponsorship and corporate hospitality income rose by 7% for the first six months
of the year to GBP14.2m. However merchandising has fallen principally as a
result of sales in the six months to December 2007 being buoyed by sales
relating to the Club's 125th anniversary.
Operating expenses before amortisation of intangible assets have risen in the
period to GBP50.0m (2007: GBP44.6m). The main contributory factors behind this
increase are an increase in player related costs, further termination and
restructuring costs and the provision for foreign exchange losses, caused by the
weakening of sterling against the euro in the period. The foreign exchange
losses relate to future player transfer payments and are as yet unrealised.
Amortisation of intangible assets has increased to GBP16.2m (2007: GBP12.4m) as
the Club continues to re-invest proceeds raised from the sales of players in its
playing squad.
Player trading shows a profit of GBP53.4m for the six months (2007: GBP4.3m).
During the 2008 summer transfer window, gains were made on the sales of a large
number of registrations, including Dimitar Berbatov, Robbie Keane, Steed
Malbranque, Teemu Tainio, Pascal Chimbonda, Paul Robinson, Younes Kaboul and
Anthony Gardner.
After deducting net finance costs of GBP2.3m (2007: GBP1.8m), the Club made
record pre-tax profits for the six month period of GBP39.8m (2007: loss of
GBP0.03m) - however, it needs to be noted that the Club did not make the player
trading profits in a manner that was planned or welcomed, as they arose, in the
main, from the regrettable sale of certain key players.
Looking at the balance sheet the investment in the playing squad resulted in
intangible assets reaching over GBP100m for the first time in the Club's
history. The Directors believe that the market value of intangible assets is
considerably in excess of this book value. Additionally the club has continued
to acquire property around the stadium and as a result the carrying value of
property, plant and equipment is almost GBP88m. Total assets now stand at
GBP291.7m (2007: GBP177.0m). This sustained investment has taken a number of
years and it is a credit to the Club that net debt at 31 December 2008, after
this sustained period of investment, stood at only GBP40.1m.
On the pitch
With so much talent in the squad the expectation was that we would start the
season well, but we had a poor start achieving 2 points from a possible 24, the
worst ever start in the Club's history.
Changes were made to the coaching staff - Harry Redknapp, Kevin Bond and Joe
Jordan were appointed. We thank Damien Comolli, Juande Ramos, Marcos Alvarez and
Gus Poyet for their contribution to the Club, which included the winning of
silverware with the League Cup in February 2008.
Outside of this period, the January window saw the return of three previous
players and it reflects well on the Club that these players chose to return to
us.
The new management, the return of key former players and the further investment
made in January 2009 resulted in a renewed confidence at the Club and we saw
greatly improved performances on the pitch and a concurrent move up the League
table.
Decisions to make significant changes are always difficult and lack any
guarantee of success, but it is a fast moving business and the ability to
respond in times of uncertainty with clarity and determination is crucial in
ensuring we continue to move forward.
Off the pitch
We continue to move our capital projects forward. With regard to the new
training facility, we have spent the last year seeking to resolve a rights of
way application which was filed after we submitted a planning application. We
engaged with all interested parties and last month successfully reached
agreement for a right of way to be built outside the perimeter of the new
Training Centre. Preliminary works start next month. Whilst this has cost us
time, the reality is we have spent the time looking at the build costs, which in
the current environment have moved in our favour.
With regard to the Northumberland Development Project - which incorporates plans
for our new stadium - we have bought significant further land and now own the
freehold interest in over 85% of the core site. This month Haringey Council
demonstrated strong support for the scheme and in assisting in the process of
acquiring and assembling the remaining site properties. Having received an
overwhelmingly positive response to the plans at our first public exhibition
last November, we now move towards a second public consultation in April with
further enhanced designs and proposals. The project has moved on significantly
and we remain confident that we will be in a position to submit a full planning
application in the next few months.
Projects of this nature require a number of contracts and decisions to come
together over a period of years. We have almost completed piecing together the
site to the north of the proposed new stadium which is likely to be the first
stage of the development, and includes a significant retail scheme. We are
looking at a deal with a US based seat rights partner to look at ways in which
we can offer long term affordable deals to fans who want to commit to the new
stadium and their seat position within that stadium at an early stage. Two
additional areas of focus are the procurement of a naming rights partner and the
finalisation of the requirements for the site to the south of the proposed new
stadium. The latter, combining important public space and housing, has the real
potential to both maximise value and provide a focal point for the project and
its community.
As we continue to assess the contributions to the scheme, we obtain more clarity
on the funding gap which will have to be financed. An equity issue is one such
possibility, particularly when debt markets are currently so illiquid.
Finally I would like to thank Mervyn Davies, now Lord Davies, who had to resign
his post in January as a non-executive Director to take up his position in
Government. We thank Mervyn greatly for his experience and guidance and wish him
every success.
Summary and outlook
Our supporters have contributed not only to the financial strength of the Club,
but have also been unwavering in their loyalty during difficult times. I hope
that we can reward that loyalty and support with future success, along with a
recognition of the difficult financial times we are experiencing and which are
still ahead. The price freeze on season ticket prices for next season and the
offer to freeze prices for the 2010/11 season are examples of this and have been
factored into our realistic financial modelling going forward.
We have benefited from having a robust business that is well financed and has
continued to be able to support investment in the First Team, whilst progressing
two major capital expenditure projects, the new Training Centre and the
Northumberland Development Project.
We remain mindful of the prevailing economic climate from which no one can
consider themselves immune.
Thank you to all those who have showed immense support to the Club.
D P Levy
19 March 2009
Unaudited Condensed Consolidated Income Statement
For the six months ended 31 December 2008
+-------------------------------------+------+----+---+----------+------------+------------+
| | | | | Six | Six | Year |
| | | | | months | months | ended 30 |
| | | | | ended 31 | ended 31 | June |
| | | | | December | December | 2008 |
| | | | | 2008 | 2007 | |
| | | | | | | |
+-------------------------------------+------+----+---+----------+------------+------------+
| |Note | | | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------+------+----+---+----------+------------+------------+
| | | | | | | |
+-------------------------------------+------+----+---+----------+------------+------------+
| Revenue | 2 | | | 54,889 | 54,480 | 114,788 |
+-------------------------------------+------+----+---+----------+------------+------------+
| Operating Expenses | | | | (49,968) | (44,592) | (87,327) |
+-------------------------------------+------+----+---+----------+------------+------------+
| Profit from operations before | | | | 4,921 | 9,888 | 27,461 |
| football trading and amortisation | | | | | | |
+-------------------------------------+------+----+---+----------+------------+------------+
| Amortisation, impairments and other | | | | (16,169) | (12,418) | (36,971) |
| net football trading income and | | | | | | |
| expenditure | | | | | | |
+-------------------------------------+------+----+---+----------+------------+------------+
| Profit on disposal of intangible | 3 | | | 53,412 | 4,312 | 16,362 |
| assets | | | | | | |
+-------------------------------------+------+----+---+----------+------------+------------+
| Profit from operations | | | | 42,164 | 1,782 | 6,852 |
+-------------------------------------+------+----+---+----------+------------+------------+
| Finance income | | | | 221 | 484 | 1,797 |
+-------------------------------------+------+----+---+----------+------------+------------+
| Finance costs | | | | (2,558) | (2,292) | (5,662) |
+-------------------------------------+------+----+---+----------+------------+------------+
| Profit/(loss) on ordinary | | | | 39,828 | (26) | 2,987 |
| activities before taxation | | | | | | |
+-------------------------------------+------+----+---+----------+------------+------------+
| Tax | 4 | | | (12,248) | (163) | (2,018) |
+-------------------------------------+------+----+---+----------+------------+------------+
| Profit/(loss) for the period | | | | 27,580 | (189) | 969 |
+-------------------------------------+------+----+---+----------+------------+------------+
| | | | | | | |
+-------------------------------------+------+----+---+----------+------------+------------+
| Earnings/(loss) per share - basic | 5 | | | 29.7p | (0.2p) | 1.0p |
+-------------------------------------+------+----+---+----------+------------+------------+
| Earnings/(loss) per share - diluted | 5 | | | 15.7p | (0.2p) | 1.0p |
+-------------------------------------+------+----+---+----------+------------+------------+
| | | | | | | |
+-------------------------------------+------+----+---+----------+------------+------------+
The results above all derive from continuing operations.
Unaudited Condensed Consolidated Statement of Changes in Equity
For the six months ended 31 December 2008
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| | Share | Share | Equity | Revaluation | Capital | Profit | Total |
| | capital | premium | component | reserve | redemption | and | GBP'000 |
| | account | account | of CRPS | GBP'000 | reserve | loss | |
| | GBP'000 | GBP'000 | GBP'000 | | GBP'000 | account | |
| | | | | | | GBP'000 | |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Balance as at 1 July 2008 | 4,639 | 11,637 | 3,806 | 2,288 | 595 | 19,645 | 42,610 |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Profit for the period | - | - | - | - | - | 27,580 | 34,280 |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Amortisation of the | - | - | - | (25) | - | 25 | - |
| revaluation reserve | | | | | | | |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| CRPS converted during the | 1 | 1 | (1) | - | - | - | 1 |
| period | | | | | | | |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Final dividend on ordinary | - | - | - | - | - | (3,712) | (3,712) |
| shares relating to the year | | | | | | | |
| ended 30 June 2008 | | | | | | | |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| At 31 December 2008 | 4,640 | 11,638 | 3,805 | 2,263 | 595 | 43,538 | 66,479 |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
For the six months ended 31 December 2007
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| | Share | Share | Equity | Revaluation | Capital | Profit | Total |
| | capital | premium | component | reserve | redemption | and | GBP'000 |
| | account | account | of CRPS | GBP'000 | reserve | loss | |
| | GBP'000 | GBP'000 | GBP'000 | | GBP'000 | account | |
| | | | | | | GBP'000 | |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Balance as at 1 July 2007 | 4,631 | 11,556 | 3,838 | 2,336 | 565 | 23,202 | 46,128 |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Loss for the period | - | - | - | - | - | (189) | (189) |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Amortisation of the | - | - | - | (25) | - | 25 | - |
| revaluation reserve | | | | | | | |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Ordinary 5p shares redeemed | (7) | - | - | - | 7 | (239) | (239) |
| during the period | | | | | | | |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| CRPS converted during the | 38 | 81 | (32) | - | - | - | 87 |
| period | | | | | | | |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Final dividend on ordinary | - | - | - | - | - | (3,733) | (3,733) |
| shares relating to the year | | | | | | | |
| ended 30 June 2007 | | | | | | | |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| At 31 December 2007 | 4,662 | 11,637 | 3,806 | 2,311 | 572 | 19,066 | 42,054 |
+------------------------------+---------+---------+-----------+-------------+------------+---------+---------+
Unaudited Condensed Consolidated Balance Sheet
as at 31 December 2008
+--------------------------------------+------+-----------+-----------+-----------+
| | | | | |
+--------------------------------------+------+-----------+-----------+-----------+
| | | 31 | 31 | 30 June |
| | | December | December | 2008 |
| | | 2008 | 2007 | |
+--------------------------------------+------+-----------+-----------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------+------+-----------+-----------+-----------+
| Non-current assets | | | | |
+--------------------------------------+------+-----------+-----------+-----------+
| Property, plant and equipment | | 87,719 | 66,088 | 74,130 |
+--------------------------------------+------+-----------+-----------+-----------+
| Intangible assets | | 106,825 | 69,734 | 62,423 |
+--------------------------------------+------+-----------+-----------+-----------+
| | | 194,544 | 135,822 | 136,553 |
+--------------------------------------+------+-----------+-----------+-----------+
| Current assets | | | | |
+--------------------------------------+------+-----------+-----------+-----------+
| Inventories | | 1,535 | 1,405 | 1,884 |
+--------------------------------------+------+-----------+-----------+-----------+
| Trade and other receivables | | 72,728 | 28,701 | 41,292 |
+--------------------------------------+------+-----------+-----------+-----------+
| Current tax receivable | | - | - | 2,182 |
+--------------------------------------+------+-----------+-----------+-----------+
| Cash and cash equivalents | | 22,899 | 11,110 | 35,283 |
+--------------------------------------+------+-----------+-----------+-----------+
| | | 97,162 | 41,216 | 80,641 |
+--------------------------------------+------+-----------+-----------+-----------+
| | | | | |
+--------------------------------------+------+-----------+-----------+-----------+
| Total assets | | 291,706 | 177,038 | 217,194 |
+--------------------------------------+------+-----------+-----------+-----------+
| | | | | |
+--------------------------------------+------+-----------+-----------+-----------+
| Current liabilities | | | | |
+--------------------------------------+------+-----------+-----------+-----------+
| Trade and other payables | | (88,142) | (62,310) | (77,496) |
+--------------------------------------+------+-----------+-----------+-----------+
| Current tax liabilities | | (9,857) | (2,983) | - |
+--------------------------------------+------+-----------+-----------+-----------+
| Interest bearing loans and | | (9,863) | (6,702) | (7,798) |
| borrowings | | | | |
+--------------------------------------+------+-----------+-----------+-----------+
| Provisions | | (507) | (788) | (5,602) |
+--------------------------------------+------+-----------+-----------+-----------+
| | | (108,369) | (72,783) | (90,896) |
+--------------------------------------+------+-----------+-----------+-----------+
| Non-current liabilities | | | | |
+--------------------------------------+------+-----------+-----------+-----------+
| Interest bearing overdrafts and | | (67,782) | (48,546) | (57,187) |
| loans | | | | |
+--------------------------------------+------+-----------+-----------+-----------+
| Trade and other payables | | (37,710) | (8,445) | (14,607) |
+--------------------------------------+------+-----------+-----------+-----------+
| Deferred grant income | | (2,118) | (2,176) | (2,143) |
+--------------------------------------+------+-----------+-----------+-----------+
| Deferred tax liabilities | | (9,248) | (3,034) | (9,751) |
+--------------------------------------+------+-----------+-----------+-----------+
| | | (116,858) | (62,201) | (83,688) |
+--------------------------------------+------+-----------+-----------+-----------+
| Total liabilities | | (225,227) | (134,984) | (174,584) |
+--------------------------------------+------+-----------+-----------+-----------+
| Net assets | | 66,479 | 42,054 | 42,610 |
+--------------------------------------+------+-----------+-----------+-----------+
| | | | | |
+--------------------------------------+------+-----------+-----------+-----------+
| Equity | | | | |
+--------------------------------------+------+-----------+-----------+-----------+
| Share capital | | 4,640 | 4,662 | 4,639 |
+--------------------------------------+------+-----------+-----------+-----------+
| Share premium | | 11,638 | 11,637 | 11,637 |
+--------------------------------------+------+-----------+-----------+-----------+
| Equity component of CRPS | | 3,805 | 3,806 | 3,806 |
+--------------------------------------+------+-----------+-----------+-----------+
| Revaluation reserve | | 2,263 | 2,311 | 2,288 |
+--------------------------------------+------+-----------+-----------+-----------+
| Capital redemption reserve | | 595 | 572 | 595 |
+--------------------------------------+------+-----------+-----------+-----------+
| Retained earnings | | 43,538 | 19,066 | 19,645 |
+--------------------------------------+------+-----------+-----------+-----------+
| Total equity | | 66,479 | 42,054 | 42,610 |
+--------------------------------------+------+-----------+-----------+-----------+
| | | | | |
+--------------------------------------+------+-----------+-----------+-----------+
Unaudited Condensed Consolidated Statement of Cash Flows
For the six months ended 31 December 2008
+-----------------------------------------+--------+-----------+-----------+----------+
| | | Six | Six | Year |
| | | months | months | ended 30 |
| | | ended 31 | ended 31 | June |
| | | December | December | 2008 |
| | | 2008 | 2007 | |
+-----------------------------------------+--------+-----------+-----------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------------+--------+-----------+-----------+----------+
| | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
| Cash flow from operating activities | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
| Profit from operations | | 42,164 | 1,782 | 6,852 |
+-----------------------------------------+--------+-----------+-----------+----------+
| Adjustments for: | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
| Amortisation and impairment of | | 16,169 | 12,418 | 35,057 |
| intangible assets | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
| Profit on disposal of intangible assets | | (53,412) | (4,312) | (16,362) |
+-----------------------------------------+--------+-----------+-----------+----------+
| (Profit)/loss on disposal of property, | | (2) | - | 14 |
| plant and equipment | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
| Depreciation of property, plant and | | 1,402 | 1,395 | 2,877 |
| equipment | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
| Capital grants release | | 29 | 29 | 58 |
+-----------------------------------------+--------+-----------+-----------+----------+
| Foreign exchange loss | | 7,536 | 746 | 1,319 |
+-----------------------------------------+--------+-----------+-----------+----------+
| Decrease/(increase) in trade and other | | 5,199 | 1,106 | (4,225) |
| receivables | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
| Decrease/(increase) in inventories | | 349 | (185) | (668) |
+-----------------------------------------+--------+-----------+-----------+----------+
| (Decrease)/increase in trade and other | | (8,255) | (1,843) | 10,327 |
| payables | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
| Cash flow from operations | | 11,179 | 11,136 | 35,249 |
+-----------------------------------------+--------+-----------+-----------+----------+
| Interest paid | | (3,811) | (2,505) | (3,164) |
+-----------------------------------------+--------+-----------+-----------+----------+
| Interest received | | 677 | 487 | 1,094 |
+-----------------------------------------+--------+-----------+-----------+----------+
| Income tax paid | | (750) | (3,360) | (3,610) |
+-----------------------------------------+--------+-----------+-----------+----------+
| Net cash flow from operating activities | | 7,295 | 5,758 | 29,569 |
+-----------------------------------------+--------+-----------+-----------+----------+
| Cash flows from investing activities | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
| Acquisitions of property, plant and | | (14,989) | (16,425) | (25,962) |
| equipment, net of proceeds | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
| Acquisitions of intangible assets | | (52,082) | (20,889) | (27,456) |
+-----------------------------------------+--------+-----------+-----------+----------+
| Proceeds from sale of intangible assets | | 36,668 | 8,417 | 16,222 |
+-----------------------------------------+--------+-----------+-----------+----------+
| Net cash flow from investing activities | | (30,403) | (28,898) | (37,196) |
+-----------------------------------------+--------+-----------+-----------+----------+
| Cash flows from financing activities | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
| Dividends paid | | (2,394) | (3,733) | (3,733) |
+-----------------------------------------+--------+-----------+-----------+----------+
| Redemption of ordinary shares | | - | (233) | (841) |
+-----------------------------------------+--------+-----------+-----------+----------+
| Proceeds from borrowings | | 14,612 | 11,250 | 20,916 |
+-----------------------------------------+--------+-----------+-----------+----------+
| Debt issue costs | | - | (275) | (275) |
+-----------------------------------------+--------+-----------+-----------+----------+
| Repayments of borrowings | | (1,494) | (1,041) | (1,440) |
+-----------------------------------------+--------+-----------+-----------+----------+
| Net cash flow from financing activities | | 10,724 | 5,967 | 14,627 |
+-----------------------------------------+--------+-----------+-----------+----------+
| Net (decrease)/increase in cash and | | (12,384) | (17,173) | 7,000 |
| cash equivalents | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
| Cash and cash equivalents at start of | | 35,283 | 28,283 | 28,283 |
| period | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
| Cash and cash equivalents at end of | | 22,899 | 11,110 | 35,283 |
| period | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
| | | | | |
+-----------------------------------------+--------+-----------+-----------+----------+
Notes to the Condensed Consolidated Interim Statements
For the six months ended 31 December 2008
1. Basis of preparation
The Group's next annual consolidated financial statements, for the year
ending 30 June 2009, will be prepared in accordance with International Financial
Reporting Standards adopted for use in the EU ("IFRSs"). These condensed
consolidated interim financial statements have been prepared on the basis of the
recognition and measurement requirements of IFRSs that are effective (or
available for early adoption) in those annual consolidated financial statements.
These requirements are still subject to change and to additional interpretation.
The financial information presented in this interim statement does not
constitute full financial information within the meaning of Section 435 of the
Companies Act 2006. The financial information for the year ended 30 June 2008
has been extracted from the statutory accounts for the year then ended which has
been filed with the Registrar of Companies. The audit report on these accounts
was unqualified and did not contain any statements under s237(2) or (3) of the
Companies Act 1985.
The Board of Directors continually monitor the Group's exposure to a range of
risks and uncertainties, including the success of the First Team, the
development of the new stadium and the current economic downturn. The Directors
believe that these risks and uncertainties are mitigated by, inter alia, the
robust nature of our business with long-term fixed revenues from the key
business areas, notably the FAPL TV deal.
The Board of Directors have undertaken a recent thorough review of the
Company's budgets and forecasts and have produced detailed and realistic cash
flow projections. These cash flow projections, which when considered in
conjunction with the Group's forecast cash and available banking facilities
(some of which fall due for renewal later this year), demonstrate that the Group
will have sufficient working capital for the foreseeable future. Consequently,
the Directors believe that the Company has adequate resources to continue in
operational existence for the foreseeable future and the financial statements
have been prepared on the going concern basis.
Accounting policies
The following accounting policies have been identified by the Board as being the
most significant to the financial statements.
Revenue
Revenue represents income receivable from football and related commercial
activities, exclusive of VAT.
Gate receipts and other matchday revenue is recognised as the games are played.
Sponsorship and similar commercial income is recognised over the duration of the
respective contracts. The fixed element of broadcasting revenues is recognised
over the duration of the football season whilst facility fees received for live
coverage or highlights are taken when earned. Merit awards are accounted for
only when known at the end of the football season.
Player costs
Remuneration of players is charged in accordance with the terms of the
applicable contractual agreements and any discretionary bonus when there is a
legal or contractual obligation.
Signing-on fees are charged evenly, as part of operating expenses, to the income
statement over the period of the player's contract. These fees are paid over the
period of the player's contract.
Loyalty fees are accrued, as part of operating expenses, to the income statement
over the period to which they relate.
Property, plant and equipment
Freehold land is not depreciated. Leasehold property is amortised over the term
of the lease. Other fixed assets are depreciated on a straight-line basis at
annual rates appropriate to their estimated useful lives as follows:
Freehold properties 2% - 4%
Motor vehicles 20%
General plant and equipment 10% - 33%
The Group capitalise costs in relation to an asset when economic benefit from
the asset is considered probable. Assets under the course of construction are
carried at cost and include professional fees. Depreciation commences when the
assets are ready for their intended use.
Land and buildings that are currently held for the Northumberland
Development Project are included within Assets Under Construction. In the event
that the proposed Northumberland Development does not proceed, GBP8.1m of
professional fees capitalised would need to be written off.
Intangible fixed assets
The costs associated with the acquisition of players and key football management
staff registrations are capitalised as intangible fixed assets, at the fair
value at the date of the acquisition.
The acquisition costs are fully amortised over their useful economic lives, in
equal annual instalments over the period of the respective contracts. Where a
contract life is renegotiated the unamortised costs, together with the new costs
relating to the contract extension, are amortised over the term of the new
contract. Provision is made for any impairment of the carrying value of the
playing squad should the carrying value of the squad as a whole exceed the
amount recoverable from the squad as a whole through use or sale.
Where a player is not considered to be part of the playing squad a provision for
impairment would be made if the individual player's carrying value exceeds the
amount recoverable through use or sale.
Under the conditions of certain transfer agreements, further fees will be
payable to the vendors 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 transfers 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 disposal of these registrations represent the
consideration receivable, net of any transaction costs, less the unamortised
cost of the original registration.
Preference shares
Convertible Redeemable Preference Shares ("CRPS") are regarded as compound
instruments, consisting of a liability component and an equity component. At the
date of issue, the fair value of the liability component is estimated using the
prevailing market interest rate for similar non-convertible debt. The difference
between the proceeds of issue of the CRPS and the fair value assigned to the
liability component, representing the embedded option to convert the liability
into equity of the Group, is included in equity.
Issue costs were apportioned between the liability and equity components of the
CRPS based on their relative carrying amounts at the date of issue. The portion
relating to the equity component is charged directly against equity.
The finance expense on the liability component is calculated by applying the
prevailing market interest rate for similar non-convertible debt to the
liability component of the instrument. The difference between this amount and
the interest paid is added to the carrying amount of the liability component.
These statements were approved by the Board of Directors on 19 March 2009,
and are not audited.
These results were announced to the Stock Exchange on 19 March 2009 and are
being posted to all shareholders. Copies will be available to personal callers
at the registered office,
Bill Nicholson Way, 748 High Road, Tottenham, London N17 0AP.
2. Revenue analysis
Revenue, which is all derived from the Group's principal activity, is analysed
as follows:
+------------------------------------------+------------+------------+------------+
| | Six months | Six months | Year |
| | ended 31 | ended 31 | ended 30 |
| | December | December | June |
| | 2008 | 2007 | 2008 |
+------------------------------------------+------------+------------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------+------------+------------+------------+
| Revenue | | | |
| comprises: | | | |
+------------------------------------------+------------+------------+------------+
| Gate | 10,362 | 9,540 | 18,274 |
| receipts - | | | |
| Premier | | | |
| League | | | |
+------------------------------------------+------------+------------+------------+
| Gate | 3,919 | 3,727 | 10,341 |
| receipts - | | | |
| Cup | | | |
| competitions | | | |
+------------------------------------------+------------+------------+------------+
| Media and | 18,099 | 17,767 | 40,329 |
| broadcasting | | | |
+------------------------------------------+------------+------------+------------+
| Sponsorship | 14,210 | 13,254 | 27,778 |
| and | | | |
| corporate | | | |
| hospitality | | | |
+------------------------------------------+------------+------------+------------+
| Merchandising | 4,806 | 6,570 | 9,723 |
+------------------------------------------+------------+------------+------------+
| Other | 3,493 | 3,622 | 8,343 |
+------------------------------------------+------------+------------+------------+
| | 54,889 | 54,480 | 114,788 |
+------------------------------------------+------------+------------+------------+
3. Profit on disposal of intangible assets
+-------------------------------------------+-------------+------------+---------+
| | Six months | Six months | Year |
| | ended | ended | ended |
| | 31 December | 31 | 30 June |
| | 2008 | December | |
| | | 2007 | 2008 |
+-------------------------------------------+-------------+------------+---------+
| | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------------+-------------+------------+---------+
| | | | |
+-------------------------------------------+-------------+------------+---------+
| Proceeds | 73,174 | 8,489 | 22,618 |
+-------------------------------------------+-------------+------------+---------+
| Net book value | (19,762) | (4,177) | (6,256) |
| of disposals | | | |
+-------------------------------------------+-------------+------------+---------+
| | 53,412 | 4,312 | 16,362 |
+-------------------------------------------+-------------+------------+---------+
4. Taxation
A corporation tax charge of GBP12,248,000 has been accrued as at 31 December
2008 on the profit before tax of GBP39,828,000 - an effective tax rate of 31%.
5. Earnings/(loss) per share
Earnings/(loss) per share has been calculated using the weighted average number
of shares in issue in each period.
+--------------------------------------------+-------------+------------+-------------+
| | Six months | Six months | Year ended |
| | ended | ended | 30 June |
| | 31 December | 31 | 2008 |
| | 2008 | December | |
| | | 2007 | |
+--------------------------------------------+-------------+------------+-------------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------------+-------------+------------+-------------+
| | | | |
+--------------------------------------------+-------------+------------+-------------+
| Earnings/(loss) | 27,580 | (189) | 969 |
| for the purpose | 1,323 | - | 993 |
| of basic | | | |
| earnings per | | | |
| share being net | | | |
| profit | | | |
| attributable to | | | |
| equity holders | | | |
| of the company | | | |
| Interest charge | | | |
| in respect of | | | |
| CRPS | | | |
+--------------------------------------------+-------------+------------+-------------+
| Diluted | 28,903 | (189) | 1,962 |
| earnings/(loss) | | | |
+--------------------------------------------+-------------+------------+-------------+
| | | | |
+--------------------------------------------+-------------+------------+-------------+
| | Number | Number | Number |
+--------------------------------------------+-------------+------------+-------------+
| Weighted | 92,787,460 | 92,892,956 | 93,032,204 |
| average number | | | |
| of ordinary | | | |
| shares for the | | | |
| purposes of | | | |
| basic earnings | | | |
| per share | | | |
+--------------------------------------------+-------------+------------+-------------+
| CRPS | 91,063,038 | - | 91,075,534 |
+--------------------------------------------+-------------+------------+-------------+
| | 183,850,498 | 92,892,956 | 184,107,738 |
+--------------------------------------------+-------------+------------+-------------+
| | | | |
+--------------------------------------------+-------------+------------+-------------+
| Basic | 29.7p | (0.2p) | 1.0p |
| earnings/(loss) | | | |
| per share | | | |
+--------------------------------------------+-------------+------------+-------------+
| Diluted | 15.7p | (0.2p) | 1.0p |
| earnings/(loss) | | | |
| per share | | | |
+--------------------------------------------+-------------+------------+-------------+
There are no ordinary share options outstanding at period end (31 December 2007:
nil). On conversion the fully diluted share capital at period end would be
183,862,111 shares (31 December 2007: 183,968,490 shares).
In the period ended 31 December 2007 the CRPS were not dilutive as they would
have reduced loss per share.
INDEPENDENT REVIEW REPORT TO TOTTENHAM HOTSPUR PLC
We have been engaged by the Company to review the condensed set of financial
statements in the interim financial report for the six months ended 31 December
2008 which comprises the income statement, the statement of changes in equity,
the balance sheet, the statement of cash flows and related notes 1 to 5. We have
read the other information contained in the interim financial report and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
This report is made solely to the Company in accordance with International
Standard on Review Engagements 2410 issued by the Auditing Practices Board. Our
work has been undertaken so that we might state to the Company those matters we
are required to state to them in an independent review report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company, for our review work, for this
report, or for the conclusions we have formed.
Directors' responsibilities
The interim financial report is the responsibility of, and has been approved by,
the Directors. The Directors are responsible for preparing the interim financial
report in accordance with the AIM Rules of the London Stock Exchange.
As disclosed in note 1, the annual financial statements of the group will be
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this interim financial report
have been prepared in accordance with the accounting policies the Group intends
to use in preparing its next annual financial statements.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the interim financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the interim financial report
for the six months ended 31 December 2008 is not prepared, in all material
respects, in accordance with the AIM Rules of the London Stock Exchange.
Deloitte LLP
Chartered Accountants and Statutory Auditors
London, United Kingdom.
19 March 2009
Directors, Officers and Advisers
Executive Chairman
D P Levy
Executive Director
M J Collecott
Non-Executive Director
Sir K E Mills
Company Secretary
M J Collecott
Registered office
Bill Nicholson Way
748 High Road
Tottenham
London N17 OAP
Registered number
1706358
Auditors
Deloitte LLP
2 New Street Square
London
EC4A 3BZ
Bankers
HSBC Bank plc
70 Pall Mall
London SW1Y 5EZ
AIM nominated adviser and broker
Seymour Pierce Limited
20 Old Bailey
London EC4M 7EN
Registrars
Capita Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
West Yorkshire HD8 0LA
This information is provided by RNS
The company news service from the London Stock Exchange
END
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