Final Results

RNS Number:8290Q
West Bromwich Albion PLC
13 October 2003


Date:            13th October 2003

Contact:         Jeremy Peace, Executive Chairman
                 West Bromwich Albion PLC               0121 524 3456 (Ext 4010)

                 David Bick
                 Holborn                                020 7929 5599



                           West Bromwich Albion PLC

              Preliminary Results for the year ended 30 June 2003


Highlights


  *     Turnover almost doubled to #28.4m (2002 #14.3m) reflecting the Club's 
        first season in the Premier League
  *     Operating profit before disposals and exceptional item of #5.7m (2002 
        operating loss of #1.8m)

  *     Impairment of #6.6m to player contracts leading to a net loss of #0.6m 
        (loss 363p per share)

  *     Net funds of #1.7m compared to net debt in the previous year of #2.1m

  *     Net funds improvement of #3.8m after #8.5m invested in player contracts 
        and #1.6m in facilities

  *     Final dividend of 170p per share absorbing #238k, an increase of 6.2%

  *     Squad of 25 senior players with cover in every position, including 8 
        full internationals

  *     Scouting system continues to develop

  *     Planning application to be submitted during 2004 to increase ground 
        capacity from 27,500 to nearer 40,000 once existing capacity 
        appropriately priced and fully utilised Aim to move from Centre of 
        Excellence to Academy status over the next 3 years

  *     Shareholder base stabilised following successful Cash Offer under Rule 9 
        of the Take Over Code rules

  *     Plans in place to celebrate the Club's 125th Year


Jeremy Peace, Chairman, commented:

"Much has been achieved in the last twelve months and much remains to be done to
achieve our long term goal of establishing ourselves in the Premier League.
While this will take a huge amount of effort and consistent application of our
strategy, I have no doubt we will succeed."


West Bromwich Albion PLC

Financial Results for the year ended 30th June 2003
Financial Highlights

                                        2003            2002            2001            2000            1999
Turnover                              #28.4m          #14.3m           #8.5m           #6.8m           #6.8m


Operating profit/(loss) before         #5.7m         #(1.8)m         #(2.3)m         #(3.7)m         #(2.3)m
disposals and exceptional items

(Loss)/profit before                 #(0.6)m           #2.6m           #1.7m           #0.7m         #(2.3)m
tax

(Loss)/earnings per share             (363)p           1179p           1502p            841p         (2581)p

Net funds/(debt)                       #1.7m         #(2.1)m         #(2.5)m         #(0.5)m         #(2.8)m

Dividend per share                      170p            160p            150p             Nil             Nil


Last Season

The last 12 months ending June 30th 2003, have been an exciting but challenging
experience for everyone connected with West Bromwich Albion.  The anticipation
generated by the Club's first-ever Premiership season was tempered by the fact
that the Premier League is a vastly different league from the Nationwide League
within which the Club had competed for the previous 16 years.  The football and
financial gulf between the two is nothing short of immense and our hard fought
season ultimately ended in the Club's relegation. Everyone connected with the
Club, especially Gary Megson, our coaching staff and players,  gave their
maximum and deserve immense credit for their efforts.  We have learnt many
lessons from this experience and the Club is better equipped for it.

Scouting

Highest priority is currently being given to the development of the system to
recruit new players. A new scouting network comprising seven UK scouts and one
in Denmark was set up last season reporting to our Chief Scout, Bobby Hope. The
development and logistical operation of this network has been further refined
and it is planned that this will provide the coaching staff with well researched
and timely information, so as to enable the recruitment to the Club of the right
quality players at the right price.

Playing squad

Since the end of last season we have welcomed eight new senior players namely
Bernt Haas, James O'Connor, Rob Hulse, Thomas Gaardsoe, Joost Volmer, Sekou
Berthe, Alassane N'Dour on a season loan and Artim Sakiri, whose work permit was
secured after a second tribunal hearing. The total initial investment in these
players was over #1.8m excluding transfer levies and other costs, with a further
maximum of #0.5m deferred consideration due if certain performance criteria are
met.  Furthermore, we were delighted to sign a new four year deal with Russell
Hoult.  This followed the release of five senior players at the end of last
season and our thanks go to all of them, especially Bob Taylor who served the
Club over two spells for ten years and fully deserved his Testimonial. In
addition, Derek McInnes, who captained the Club commendably, expressed a desire
to return to Scotland in a playing/coaching role at Dundee United whilst Igor
Balis decided to retire home to Slovakia. Also, Jordao will shortly leave us
once his rehabilitation from injury is complete and Jason Roberts has joined
Portsmouth on a season loan. We therefore now have a squad of twenty-five senior
players with cover in every position, including eight full internationals and an
average age of twenty-six. This places us well for the long season ahead and
works towards one of our core strategic aims, that of team success.

Agents

There has been much discussion concerning the level of agent's fees within the
game and we supported the recent voting by Football League clubs in favour of
disclosure of such fees from 1st January 2004. The format of this disclosure,
has yet to be clarified but it is important that it is both transparent and
consistent for all clubs so as not to cause confusion amongst the media and
public.

Supporters

Throughout last season the support of our fans was tremendous at both home and
away fixtures impressing many people within the game and winning many accolades.
The loyalty of our support was further brought home by season ticket renewals of
just under 20,000 this summer. This followed an increase in ticket prices for
the first time in four years. However, taking into account the effect of
concessions for the young and elderly the average income per season ticket per
game remains at less than #9.40 excluding VAT.  In order for this revenue to be
sufficiently competitive at the highest level the Club must endeavour to
increase prices over time. At current levels an increase of #1 per game per
season ticket generates almost #0.5m for the Club per season.

Financial results

The full financial effect of being in the Premier League was clearly shown by
the growth in income, which almost doubled over the last year to #28.4m. Whilst
gate receipts, commercial activities and merchandising all benefited from the
exposure to the Premier League, the majority of this rise was from media related
sources. Henceforth it is important that we continue to grow brand awareness
amongst our supporters converting them into customers, where possible, through
initiatives such as our new Stile Card and various affinity relationships. The
Club invested approximately #18m in transfer fees and player wages last year,
which represented 65% of turnover. Player contract amortization was #4.1m, but
due to the well documented collapse in the general transfer market, the Board
has decided to write down the value of player contracts on the balance sheet  by
a total of #6.6m, a further #2.4m since the interim stage, resulting in a net
loss before tax of #0.6m and leaving a squad value of #1.6m against its cost of
#15.7m.

This season the Club has some flexibility from the transfer windows that now
operate within the game at Premier League and International level; but
henceforth because many of our counterparties are governed by such windows there
will be a restriction on player transfer activity.

Given the current state of the transfer market and football finances in general,
it is essential that the Club maintains its current stability without weakening
its controls and keeps its expenditure in line with income in whichever division
it competes. The parachute payments the Club will receive from the Premier
League last for two years and if not promoted by the end of that period, the
Club will need to be mindful of any exposure to player contracts that extend
beyond that date, which is why the Club continues to plan financially on a 3
year basis. During the last financial year the Club employed an average of 122
staff, the same as the previous year but with greater numbers employed on the
playing side. Effort has been made to structure the business better so that it
can flex between the Premier and Nationwide Leagues.

Cash and Dividend

One of the most important items within our business is our cash resource. The
Club finished the year with net funds of #1.7m, compared to net debt of #2.1m
previously. This increase was achieved after investing #8.5m in player
transfers, settling outstanding claims of #0.9m relating to the East Stand,
#0.3m on stadium improvements and investing a further #0.4m in the training
ground. Now and in the foreseeable future it is proposed that a dividend payment
will be considered following the end of the financial year depending upon our
cash resource, our divisional status for the following season and underlying
profit. The Directors propose a final divided of 170p per share, a 6.2% increase
on that paid in the previous year. This dividend will be payable to shareholders
on the register at 24th October 2003 and payable on 7th November 2003.  The
Directors are also considering the payment in future years of  special dividends
depending upon the overall profitability of the Group in order to  reward
Shareholders for their investment and loyalty.

Board

I am deeply grateful for the contribution made during the last 15 months by our
Chief Executive Mike O'Leary. During this period, much has been achieved to put
the Club on an even keel and to advance our position off the field. As envisaged
when he joined the Board, Mike has confirmed that he will wish to stand down as
Chief Executive before the start of next season, having completed a two year
period of service. We therefore plan to recruit his successor over the coming
months, giving plenty of time for an orderly handover of responsibilities.

Regrettably, in July the Club was forced to make a small number of redundancies,
which included Brendon Batson, the Club's Managing Director who had brought many
strengths to the Club during a period of difficult transition last year.

We are mindful of the recent Higgs Report and its recommendations, particularly
concerning Non- Executive Directors and we will be considering this carefully
over the next 9 months.

Facilities

Given the wide support that the Club enjoys, combined with the financial need
for a larger stadium to generate sufficient revenues to compete long term in the
Premier League, the Club has for some time been investigating the opportunities
to develop and expand the existing stadium not only by carrying out extensive
research of stadia both in the UK and abroad, but also forming a close working
relationship with the local authority towards this end. Consultants have been
appointed with a view to producing a detailed planning application during 2004
which will enable the Club to increase its ground capacity on a stepped basis
from the current level of 27,500 to nearer 40,000 when sustainable Premier
League status is achieved and once pricing levels for the existing stadium
capacity are at appropriate levels.

Further improvements have been made to our forty-six acre training ground,
including new fencing around the usable the perimeter and an extension to the
existing pavilion to incorporate a new gymnasium, physiotherapy room, laundry
and storage facilities. Slitting and drainage work has been completed on four of
the pitches with sprinkler systems installed on the two main pitches. Further
work will take place to improve the general appearance of the facility where
appropriate this season.

Youth Development

At the end of the year Mark Ashton was appointed as Director of Youth
Development in addition to his position as Managing Director of our highly
successful Community programme. Over the next 3 years it is our intention to
move from Centre of Excellence to Academy Status which will entail the building
of an indoor facility and further development of our youth department. In due
course, we hope to see more young players coming through the ranks into our
first team squad.

We are very excited about the formal approval for the proposed Sandwell Academy
School which is planned to open in September 2006 on the site of the old Thomas
Telford School adjacent to the stadium. As well as a normal school curriculum it
will specialise in business and sport for children aged 11 to 18 years of age
and will be we believe an excellent addition to Sandwell's education programme.

Corporate Ownership

Earlier this year I acquired 28,050 shares, which meant that together with Kappa
Ltd, a shareholder whom I introduced some time ago, I was deemed to control more
than 30% of the Club. This gave rise to a cash offer under Rule 9 of the Take
Over Code rules, through which I acquired a further 23,680 shares, 9,220 of
which were then sold to other shareholders. This has now given the Club the
stable shareholder base and a majority controlling shareholder group, owning 60%
of the shares, that it has needed for many years. The Club can now concentrate
on improving all areas of its activities.

Honorary Members

It was with great sadness that we announced the passing of Sir "Bert" Millichip
in December last year. During more than forty years association with the Club as
Director, Chairman and President he was a tremendous ambassador not only for
West Bromwich Albion but also for English football particularly in his later
role as Chairman of the FA and senior member of both U.E.F.A and F.I.F.A.. We
were delighted in April to announce the appointment of John Silk as his
successor who had previously served as Director and Chairman for eight years. We
were also equally pleased to announce the appointment of Lady Barbara Millichip
as an honorary Life Member together with Tony Hale who also served as a Director
and Chairman of the Club for twelve years.

Heritage

On the eve of our celebration of our 125th year we have endeavoured to
commemorate our heritage by initiating a properly catalogued and displayed
memorabilia collection in the East Stand, and are delighted that an Independent
Former Players Association has been established with which we are looking
forward to forming a close working relationship. In July, as a tribute to one of
our greatest players, the Jeff Astle Gates were unveiled at the entrance to the
East Stand Car Park. In addition, in the coming year we are looking forward to
building a Garden of Remembrance and a Supporters Mural at the Club. Our thanks
goes to all those who have worked tirelessly on these projects.

Charities

We are delighted to announce that we helped each of our four nominated charities
to raise funds during the last financial year. This year our four chosen
charities are The Mayor of Sandwell's Charity (Diabetes UK), The Rotary Club of
West Bromwich (general charitable causes), St Basil's (young homeless) and The
Courtyard Centre (cancer awareness) and we look forward to working with them.

Much has been achieved in the last twelve months, although much still remains to
be done in order to achieve our long term goal of establishing ourselves in the
Premier League. This will take a huge amount of effort, but I have no doubt we
will achieve this aim. My thanks, as always, go to all members of staff for
their hard work during the last twelve months.

Jeremy Peace
Chairman


13th October  2003



                      RESULTS FOR THE YEAR 30 JUNE 2003

Group Profit and Loss Account

                                                                             30 June 2003     30 June 2002

                                                                                        #                #

Turnover                                                                       28,445,484       14,276,834

Operating expenses                                                             18,576,031       12,584,936

Operating profit before amortisation of players' registrations,                 9,869,453        1,691,898

Profit on disposal of players registrations and exceptional item

Amortisation of players registrations                                         (4,129,044)      (3,525,892)

Exceptional item                                                              (6,575,427)              ---

Profit on disposal of players registrations                                       200,000        4,519,501

Operating (loss)/profit                                                         (635,018)        2,685,507

Interest                                                                          (4,389)        (116,756)

(Loss)/Profit on ordinary activities before taxation                            (639,407)        2,568,751

Taxation                                                                          132,000        (919,607)

(Loss)/Profit for the financial period                                          (507,407)        1,649,144

Dividends                                                                       (237,830)        (223,840)

Transfer to reserves                                                            (745,237)        1,425,304

(Loss)/Earnings per share                                                          (363p)           1,179p




Group Statement of Total Recognised Gains and Losses                         30 June 2003     30 June 2002

                                                                                        #                #

(Loss)/Profit for the financial period                                          (507,407)        1,649,144

Transfer from property development reserve                                       (27,084)         (27,084)

Total recognised gains and losses for the financial period                      (534,491)        1,622,060

Note of Historical Cost Profit and Losses


Reported (loss)/profit on ordinary activities before taxation                   (639,407)        2,568,751

Difference between historical cost depreciation charge and the actual              91,789           91,238
depreciation charge for the year calculated on the revalued amount

Historical cost (loss)/profit on ordinary activities before taxation            (547,618)        2,659,989



Group Balance Sheet                                                          30 June 2003     30 June 2002

30 June 2003                                                                            #                #

Fixed Assets                                                                    1,568,947        3,795,157
Intangible assets                                                              22,101,435       22,733,032
Tangible assets                                                                23,670,382       26,528,189

Current assets                                                                    120,719          108,349
Stock                                                                           2,134,221        3,307,685
Debtors                                                                         6,130,213        3,024,718
Cash at bank                                                                    8,385,153        6,440,752


Creditors
Amounts falling due within one year                                             9,813,402        8,108,278
Net current (liabilities)                                                     (1,428,249)      (1,667,526)

Total assets less liabilities                                                  22,242,133       24,860,663

Creditors
Amounts falling due after more than one year                                    5,665,882        6,758,296
Provision for liabilities and charges                                           1,058,261        1,812,056
Total assets less liabilities                                                  15,517,990       16,290,311

Capital and reserves
Called up share capital                                                         1,399,000        1,399,000
Share premium account                                                           7,613,960        7,613,960
Property revaluation reserve                                                    5,193,510        5,285,299
Property development reserve                                                      505,618          532,702
Profit and loss account                                                           805,902        1,459,350
                                                                               15,517,990       16,290,311


Movement in shareholders funds


(Loss)/profit for the financial period                                          (507,407)        1,649,144
Dividends                                                                       (237,830)        (223,840)
Release of property development reserve                                          (27,084)         (27,084)

Movement in shareholder's funds                                                 (772,321)        1,398,220
Opening shareholder's funds                                                    16,290,311       14,892,091
Closing shareholders funds                                                     15,517,990       16,290,311


Group Cash Flow Statement                                                    30 June 2003     30 June 2002

                                                                                        #                #

Net cash inflow from operating activities

Operating (loss)/profit                                                         (635,018)        2,685,507
Amortisation of players registrations                                           4,129,044        3,525,892
Impairment of player registrations                                              6,575,427              ---
Profit on disposal of players registrations                                     (200,000)      (4,519,501)
Depreciation charge                                                               854,673          494,012
Amortisation of goodwill                                                           95,000              ---
(Increase)/Decrease in stock                                                     (12,370)           66,237
(Increase)/Decrease in debtors                                                (1,360,667)        1,650,757
Increase in creditors                                                             244,348        1,967,733
Release of grant                                                                 (79,450)         (54,689)
Transfer from other reserves                                                     (27,084)         (27,084)

Net cash inflow from operating activities                                       9,583,903        5,788,864

Returns on investments and servicing of finance

Interest received                                                                 270,592          180,186
Bank interest paid                                                              (283,029)        (389,819)
Finance lease interest paid                                                       (1,557)          (5,074)
                                                                                 (13,994)        (214,707)

Capital expenditure and financial investment

Purchase of players                                                           (5,609,061)      (2,754,242)
Sale of players                                                                 1,600,000        1,935,301
Purchase of tangible assets                                                   (1,215,230)      (4,272,702)
Purchase of goodwill                                                             (95,000)              ---
                                                                              (5,319,291)      (5,091,643)

Equity dividends paid                                                                 ---        (223,840)
Taxation paid                                                                   (441,000)              ---
Net cash inflow before financing                                                3,809,618          258,674


Financing

Grants received                                                                       ---          138,785
Loan received                                                                         ---        1,500,000
Loan repayments                                                                 (705,618)        (547,039)
Finance lease repayments                                                         (15,307)         (56,676)
New finance leases                                                                 16,802              ---
                                                                                (704,123)        1,035,070



Increase in cash                                                                3,105,495        1,293,744


Reconciliation of net cash flow to movement in net funds/(debts)

Increase in cash                                                                3,105,495        1,293,744
Cashflow from movement in loans and leases                                        704,123        (896,285)
Movement in net funds/(debt)                                                    3,809,618          397,459
Net debt at start of period                                                   (2,135,785)      (2,533,244)
Net funds/(debts) at end of period                                              1,673,833      (2,135,785)

     
1    The results for the year ended 30 June 2003 as shown on these statements 
     do not constitute statutory accounts but are an abridged version of the 
     Company's 2003 accounts which will be filed with the Register of Companies 
     and upon which the auditors report was unqualified.  The comparative 
     figures for 2002 have been filed with the Register of Companies on which 
     the auditors gave an unqualified report.
     
2    Earnings per share

     Earnings per share is calculated by dividing loss after taxation of 
     #(507,407) (2002 #1,649,144) by 139,900 (2002: 139,900) being the weighted 
     number of shares in issued during the period.
     
3    Dividend

     A final dividend is proposed of 170p per share (2002: an interim dividend 
     of 160p per share was paid on 3 June 2002).

4    Copies of the report and accounts for the year ended 30 June 2003 will be 
     sent to shareholders in due course.  Additional copies will be available 
     from the registered office of West Bromwich Albion plc, The Hawthorns, West 
     Bromwich, West Midlands B71 4LF
     
5    The Annual General Meeting will be held in the Platinum Suite, in the East 
     Stand at The Hawthorns, West Bromwich, on the 6th November 2003 at 7.00pm.



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