Final Results

    RNS Number : 1361J
  Sheffield United PLC
  27 November 2008
   

    For immediate release

    Sheffield United plc
    ("Sheffield United", "the Club" or "the Group")
    Final Results

    Sheffield United plc (AIM: SUT), the football and leisure services business, announces final results for the year ended 30 June 2008,
the first under IFRS. Highlights of the results include:

    *     Results impacted by relegation;
    *     Turnover £32.1million (2007: £44.2million);
    *     Operating loss before interest and tax £3.5million (2007: profit £2.7million);
    *     Retained loss £6.3million (2007: profit £0.3million);
    *     1st team budget retained at same level to 2007 to challenge for promotion; 
    *     £7.2million of Bank debt repaid and by September 2008 football bank debt reduced to only £3million;
    *     Best supported team in Coca Cola Championship; average attendance of 25,648 - Season tickets over 19,000;
    *     Ticket office contribution down 20% to £6.1million (2007: £7.6million);
    *     Strong season ticket sales for 2008/9;
    *     Contribution from Blades Realty of £0.9million before interest and tax on turnover of £1.2million;
    *     158-bedroom four star Copthorne Hotel opening in Bramall Lane in December 2008;
    *     Planning application for increased capacity being submitted in December 2008; 
    *     International links extended to Hungary and Australia;
    *     Post period end disposal of Thames Club Staines, realising £0.7million profit and reducing Bank debt by £2.0million;
    *     Post period end £14.3million issue of new Convertible Redeemable Loan Notes rolled over existing £10 million loan and accrued
interest and introduced £2.2 million of new cash.

    Commenting on the results, Sheffield United Chairman, Kevin McCabe, said: "One can only ponder as to the potential turnover and
profitability that may have been achieved were it not for the circumstances and events emanating from the media named "Tevez affair".
Sheffield United are now a robust, strong and proud club who will simply not back down or walk away from tackling head on those
organisations responsible for the shameful actions and events that have tarnished English football."

    He added: "Here at Sheffield United we must do our utmost to plan and reposition all divisions of the group - none more so than football
- talking cognisance of the negative factors facing the UK economy."

    Jason Rocket, Chief Executive added: "The improvements in our management team, the robust business model we have developed over the last
few years and the geographical spread of the business should safeguard us from the worst of the effects of the current downturn."

    For further information:

 Sheffield United plc:           KBC Peel Hunt Ltd:    Tavistock Communications:
 0870 787 1960                   0121 633 8330
                                                       020 7920 3150
 Kevin McCabe, Chairman          David Davies          Jeremy Carey
 Jason Rockett, Chief Executive  Oliver Stratton       Andrew Dunn
 Simon Capper, Chief Financial
 Officer


    Sheffield United Chairman's Statement
    Recessionary times are now affecting most regions of the world. Downturn is self evident with markets around the globe witnessing
massive dilutions of corporate values particularly for those organisations in the financial and real estate sectors. The UK is feeling the
full force of these impacts and has now entered a period where austerity - both for the country and for companies - becomes ever more
important.
    The world of football will inevitably change as monies available to fund player wages, transfer fees, agents' costs and the like
diminish. There will always be exceptions to the rule but the many ingredients that have created the present environment means that quickly
adapting to the changed circumstances is to be a key factor for the future health and wealth of clubs certainly in the next 3-5 years. Here
at Sheffield United we must do our utmost to plan and reposition all divisions of the group - none more so than football - taking cognisance
of the negative factors facing the UK economy.
    This year is our first in presenting Financial Statements which are fully compliant with the International Financial Reporting
Standards. Thus the results are submitted in a slightly different format than previously and I trust will assist members in understanding
better our business. The Chief Executive's Review analyses in detail the various activities of the Sheffield United group of companies.
    In the financial year ended 30 June 2008 the consolidated loss amounted to £6.3 million (2007: Profit £0.3 million as restated). The
principal reason for this loss is as a result of the continued high amounts invested in the first team playing squad in transfer fees, other
associated costs paid and salary levels. Our ambition has been and firmly remains for Sheffield United FC to regain promotion back to the
Premier League. Turnover in 2008 was £32.1 million, a reduction from the £44.2 million of 2007, arising from our unjust relegation from the
Premier League in May last year and thankfully limited due to the success of our off-the-field interests. Our non football related divisions
have continued to contribute favourably to operating profits despite the unfavourable economic climate which we highlighted to shareholders
within the 2008 Interim Report.
    One can only ponder as to the potential turnover and profitability that may have been achieved were it not for the circumstances and
events emanating from the media named "Tevez affair". Sheffield United are now a robust, strong and proud Club who will simply not sit back
or walk away from tackling head on those organisations responsible for the shameful actions and events that have tarnished English football.
 We are the innocent party relegated as a direct result of a member club of the Premier League "deceiving, cheating and lying" thus clearly
breaching the rules which permitted two world class Argentinean football stars to be registered under player contracts that were superseded
by withheld private agreements with their third party owners.  The culprits are those responsible for the ownership and management of West
Ham United FC, another proud club like ourselves who should in view of their actions have seen a points deduction and with it relegation
from the Premier League in season 2006/07.  It is sad that whilst we have been successful with an Arbitration award (entitling us to recover damages from West Ham United FC) on the basis of
further evidence that came to light subsequent to the Disciplinary Commission (April 2007) and our Arbitration with the FAPL (June 2007) we
believe a different outcome to these earlier Tribunals might have occurred.  We will not be denied our rightful financial compensation
although this is small reward for the loss of Premiership status.  The "book of truth" will be written in due course!

    Kevin Blackwell has a refreshing and progressive approach to leading and overseeing all aspects of our "on the field" football
infrastructure. His drive and commitment to "get it right" are infectious ingredients that have been clearly demonstrated since he rejoined
us at the "home of football" in February. The first team squad is performing well in the Championship giving supporters and shareholders
alike optimism that come May 2009 promotion back to the top flight could - with a wee bit of luck - be achieved. Kevin is a key member of
our Football Executive introducing the "Blades Way" as our strategy for always giving best efforts to take the Club forward but ever
cognisant of the change in circumstances affecting the industry.  
    You will recognise from the opening paragraph of this Statement, the need to adapt to the recessionary period we clearly have entered
and thus one of Sheffield United's objectives will be to work at further reducing Bank debt - particularly that relating to the football
division - where in the year £7.2 million was repaid. HBOS plc have continued their fine and sensible support of the group's diverse
business activities providing facilities to assist in the development of our prestigious new Hotel - the Copthorne - and the Junior
Development Centre at Crookes - now aptly re-christened the "Derek Dooley Junior Development Centre" in honour of our past Chairman and Vice
President of Sheffield United FC who died in March. A fitting tribute to an exceptional man.
    In September 2007 a subsidiary of Scarborough Group International Ltd (a company wholly owned by the McCabe family) provided a £10
million loan to Sheffield United plc in order to ensure that in spite of the loss of major revenue caused by our relegation from the Premier
League many of the key business initiatives could continue to be properly funded and progressed. Subsequent to the year end we issued up to
£14.285 million of new Loan Notes mainly to roll over the September 2007 loan together with £2.2 million of additional funds that were
injected by the Directors of the Parent Company and the Football Cub plus associated connected individuals. These funds are being utilised
to support the operation of the Group within the present year.
    Anyone visiting our famous stadium - the "world's oldest major football stadium" must be surprised and delighted to see the
transformation that has occurred over the last few years now further enhanced by the opening of our 158 bedroom four star Copthorne Hotel
which stands tall as a principal part of the regeneration of Sharrow district. Indeed Sheffield United prides itself on being a family and
community club where we focus staff recruitment for the Hotel on those residing in the Sharrow area in order to add significantly to local
employment. The Copthorne provides a significant new stream of revenue adding to even more utilisation of our existing conference,
banqueting and restaurant venues many of which have recently been upgraded. We must not rest on our laurels as the intention is to ensure
that Bramall Lane maintains its position as one of the finest stadiums in the North of England. Within the Chief Executive's Review there is
greater detail of our Master Planning to ensure that the "home of football" will be on the list as a potential World Cup 2018 venue should England be selected as host.
    On the international front Chengdu Blades FC achieved promotion to the Chinese Super League during the year. In the present season they
have performed admirably cementing a position in the top flight despite the emotional disruptions caused by the dreadful earthquake that hit
the Sichuan Province in mid 2008. Our management team in China have worked tirelessly to support those affected by the tragedy and along
with Sheffield United have raised considerable funds for the Red Cross China Earthquake Appeal culminating with the game between Chengdu
Blades FC and Chelsea FC that took place in Macau in July 2008. A new second team for Chengdu Blades is now playing in the Hong Kong League
- Sheffield United Hong Kong FC - to provide regular matches for the young reserve team members as well as raising the group's profile ever
further in the Far East. The signing of Sun Jihai definitely helped promote our brand in the world's fastest growing economy.
    Scarborough Group International Ltd via one of its subsidiaries, purchased land in the 9th District of Budapest during May 2008 and
along with it the ownership of Ferencvaros Torna Club. Thus Sheffield United is now taking on board the task of regenerating this famous
central European Football Club which has fallen on difficult times. Fradi - Ferencvaros' nickname - is performing well in the Second
Division of Hungarian Football with the specific aim of claiming top spot and promotion back to the First Division at the earliest
opportunity. A Cooperation Agreement has been entered into between the two clubs which we are hoping will lead to seeing youngsters from
Hungary being eligible to play for Sheffield United FC in the coming years and some of our up and coming Academy players gaining valuable
experience playing for Fradi's first team in Hungarian football. 
    With our foresight of predicting a downturn in the economy, we took the decision early this year to sell the property and business of
Thames Club, Staines achieving an amount of £4.55 million considered to be a most satisfactory price. This realised a profit of some £0.7
million and permitted us to reduce Bank debt by £2 million. At the present time we are also considering the future of the group's investment
in property and thus the Board may be promoting recommendations on how we should proceed with a restructure in the near future.
    The Executive of Sheffield United plc is young but also experienced. Simon Argall, after 18 months of success in driving income from the
operational side of the business has recently joined the Board. Mike Farnan has also become a Director Designate looking after our national
and international commercial interests as we build new relationships to promote the Blades on a global basis. Our "family of clubs"
stretching from Australia, China to Europe and the UK puts us in a unique position to develop partnerships ultimately benefiting the "mother
club". An indication of the way in which we have already demonstrated international commerciality is via the recent shirt sponsorship with
the Maltese Tourism Authority (MTA). This is the first time a country has sponsored a major UK football club. The Blades have been able to
offer to MTA a unique blend of international reach and proactive business development enabling us to increase sponsorship revenue at a time
when budgets for such expenditure are being cut by many organisations.
    The 2008 Interim Report paid tribute to colleague and friend Derek Dooley who passed away in March. Sadly our President of Sheffield
United FC and previous Chairman of Sheffield United plc - Bernard Procter - died in October. Bernard's importance should never be
underestimated. He took the reins in an era of turbulence at Bramall Lane and applied virtues of austerity mixed with common sense to
re-stabilise us for which we should all be ever grateful. Bernard became the first ever President of Sheffield United FC, a position he
appreciated and enjoyed. Bernard and I often argued but never fell out as the mutual cause between us was always to make every effort to get
it right for the Blades. The contribution he has made will not be forgotten. Members of the Procter family will remain special and important
people at Bramall Lane.
    Up the Blades!

    Kevin McCabe
    27 November 2008


    Chief Executive's Review
    Overview
    As set out in the Chairman's Statement the past year has been one of consolidation and rebuilding for the future in the face of a major
economic downturn. The Board made a strategic decision to maintain both the level of investment and the salary level the club had supported
in the Premier League to underpin its key business objective of promotion. However, in football nothing can be guaranteed, and despite an
inspired late season charge the first team fell just short of a play off place. 
    It is in that context that I report that Sheffield United plc made an operating loss before interest and tax of £3.5 million compared to
a profit of £2.7 million in 2007. After accounting for interest and tax, the retained loss for the year is £6.3 million (2007: Profit £0.3
million).
    The above figures do not take account of the sale of the Thames Club which completed after the year end. 
    Turnover for the year fell to £32.1 million (2007: £44.2 million), a decrease of 27% arising predominantly from reduced income
associated with the Premier League, in particular broadcasting revenue, and the slowdown in the UK property market restricting the property
trading by our property joint venture, Blades Realty (formerly USE).
    Despite the slow down Blades Realty generated a turnover of £1.2 million from rentals, producing a profit of £0.9 million before
interest and taxation. Since Blades Realty's inception in March 2005 Sheffield United has achieved a return of £5.3 million before interest
and taxation. We have a strong portfolio and are now able to concentrate on asset management rather than pure trading to increase rental
income and property values. 
    Sheffield United were the best supported team in the Coca Cola Championship attracting an average crowd of 25,648 and whilst ticket
office contributions fell by 20% to £6.1 million compared to £7.6 million in 2007 this represents a very strong performance for a relegated
team. Over the past few years we have built a solid fan base. In the current season the Club has 19,000 season ticket holders which has been
testimony to the Club's commitment to make football accessible to all. Initiatives such as free season tickets for under 12s, easy payment
options and low season ticket prices have been a success.  
    Television income clearly fell in the year as the Club moved from a full share of the Premier League funds to a half share. This was
however partially cushioned by the increase in the Premier League television revenues from the improved television deal which came into
effect in the 2007/08 season. A good FA Cup run also contributed £0.7 million in revenue. 
    To maintain a squad capable of regaining Premier League status, the Club sustained its investment into the playing squad during the
financial year, with James Beattie becoming the Club's record signing from Everton at £4 million and the addition of several other players
with many years of Premier League experience. Some disposals were triggered by relegation, or were required as part of the rebuilding of the
team to challenge for promotion, which helped balance the player trading cash flow during the year. We, however, maintained a player wage
structure similar to that in the Premier League. During the year the construction of the Copthorne Hotel Sheffield proceeded on time and
within budget. The opening of the hotel in December 2008 will mark a major new development in the business of Sheffield United. Bramall Lane
is expected to become the premier destination for Conferencing and Banqueting in the city of Sheffield.

    The First Team

    During the financial year there were some major movements both in and out of the Club, triggered by the need to rebuild a squad capable
of both achieving promotion to the Premier League and sustaining top flight status. The Club recruited a group of highly respected Premier
League players in the last season including James Beattie, Gary Naysmith, Gary Speed, Lee Hendrie and Ugo Ehiogu along with some exciting
young talents like Billy Sharp and David Carney. It was all the more disappointing therefore that despite the best efforts of our then
manager Bryan Robson and his management team, the team failed to meet the expectations of all those connected to Sheffield United. The
introduction of Kevin Blackwell and Sam Ellis had a major impact which saw a late push for a play off place. At the end of the season the
club agreed terms with Kevin Blackwell and Sam Ellis to make their positions permanent. They have embarked on the current season with much
enthusiasm and skill for the tasks ahead.  
    First team costs for the year were maintained at £20.9 million, a similar level to our Premier League season, with the squad additions
noted above balanced by the departure of several players. 
    During the year it was pleasing to see the development of Academy graduate Stephen Quinn into a regular first team member and the
introduction of Kyle Naughton in the current season following a successful loan period in the Scottish Premier League during 2007/08. Jordan
Robertson has started well on loan at Southampton and is building on the experience he gained last year in the Scottish Premier League at
Dundee United. Liban Abdi and James Ashmore are also gaining first rate experience in Hungary playing for Ferencvaros, within a framework
which can support them in a similar way to being based at Bramall Lane. 
    We enjoyed a strong run in the FA Cup in 2007/08 finally going out to Middlesbrough, having defeated several Premier League Clubs. The
cup run was a definite plus in a season when we failed to meet our high expectations. Who can forget the incredible away support at Bolton,
Balloongate at Bramall Lane against Manchester City and taking Middlesbrough to the wire.  
    In the summer, the football management team have worked hard to restructure the squad including the acquisition of Darius Henderson, Sun
Jihai and David Cotterill. The loan system has also been used cleverly to support this process with the season long loans of Greg Halford
and Matthew Spring and a short term loan of Brian Howard, Nathan Dyer and Anthony Stokes. The current squad features twelve full
internationals and three U21 internationals, with an average age of twenty seven years.
    The "Blades Way" was introduced in the summer which formalised the ethos of how Sheffield United runs its football strategy both at home
and abroad.  

    Player Development

    The Academy is now in its seventh year. The standard of coaching and players developed continues to improve year on year. We are
beginning to reap the rewards of the Club's investment in its youth system accompanied by the hard work of our Academy staff. To supplement
the development of home grown talent the Club has set up a network of partnership across the globe.
    Since its establishment in 2002, nine Academy graduates have made Sheffield United first team appearances and twenty one have played for
their country at various levels, including in the last year, Kyle Naughton for England U21, Ayman Tahar for Algeria, Luca Senicanin for
Serbia, Adam Chapman for Northern Ireland U21 and Zeyn S-Latef for Poland.
    It is appreciated that we all want to see immediate results. It does, however, take time and patience to nurture young talent. Kyle
Naughton has been with the club since he was eight years old. There are other players coming through the Academy and those involved are
excited about the future prospects. It is also important the Club have a management team who are willing to give youth a chance. In Kevin
Blackwell we have a manager who has the foresight to embrace the long term objectives of the Academy and the courage to play young players
in the first team. 
    The Academy competed well at all age groups from U9s to U16s during the year. A number of teams competed in prestigious tournaments,
most notably:
    *    Nike Premier Cup, Warwick - for players born in 1993: the team ended up as losing finalists in a tournament which involved all
Premier League teams,
    *    Valencia, Spain - for players born in 1992: the team lost in the final to Valencia, who they had beaten in the qualifying stages,
    *    Foyle Cup, Northern Ireland - for players born in1994: the team won the competition, beating Hearts in the final,
    *    Milk Cup, Northern Ireland - for players born in 1991: the team lost on penalties to Borussia Dortmund and

    *    The Umbro Cup, Galway - for players born in 1993: the team lost in the semi-finals to the Irish National Under 15 team on
penalties.  
    We continue to work hard to ensure that the Academy is as far as possible self financing. Facility hire, sponsorship, catering and
community usage have all been maximised to offset the costs of running the Academy.

    Football Operations

    Sheffield United was the best supported Club in the Coca Cola Championship in 2007/08 with average crowds of 25,648 including some
19,000 season ticket holders. Season ticket sales are again over 19,000 for 2008/09 which demonstrates the great support the Club enjoys
from a loyal fan base. We have also introduced a direct debit scheme so fans can spread their season ticket payments over several months to
make the purchase more affordable.
    Based on these efforts ticket office contributions were £6.1 million in 2007/08 compared to £7.6 million in 2006/07, a reduction of 20%.
The Club's cup runs substantially offset the reduction in ticket office income for this year arising from relegation. 
    The Club has continued to implement a variety of initiatives aimed at increasing its supporter base as well as attracting more young
supporters to Bramall Lane. For the current season we have introduced free season tickets for under 12s and we continue to explore other
means to ensure watching the Blades remains affordable.  
    The card entry system was implemented at the beginning of last season and has enhanced the overall Stadium experience. We are now
prioritising the use of memberships so that most regular visitors to Bramall Lane no longer require paper tickets, allowing them to activate
a game on their card on-line or by telephone.  
    UK Turnover in the UK from sponsorship, royalties, merchandising and advertising was reduced to £5.9 million per annum from £6.6
million. 
    Retail turnover fell 28% to £1.3 million from £1.8 million. The decline was again driven by relegation, and the effect of the closure of
the Streetwise outlets from which the Club used to trade. A new outlet has been opened in TJ Hughes since the year end and we are in
discussions to open more outlets with other retailers in South Yorkshire. 
    Total commercial turnover fell slightly in the year to £2.9 million from £3.2 million in 2007. Much of this reduction was directly
linked to contractual reductions arising from relegation. In May 2008, the commercial department was strengthened by the introduction of
Mike Farnan, formerly Managing Director of Manchester United International and Head of International Development at Jordan F1. Mike brings
many years of experience from both football and Formula One. He has already added a new dimension to our ability to attract international
partners, as evidenced by the announcement of the new shirt sponsorship deal with Malta Tourism Authority (MTA).  
    The ground breaking agreement of a National Government sponsoring a football team is the first of several new partnerships as Sheffield
United further exploits its unique international profile whilst maximising Business to Business opportunities.  
    None of these new initiatives are expected to detract from our long term working relationships with many loyal sponsors and partners in
the Sheffield and South Yorkshire area. We are committed to provide them with real returns through improved Business to Business networking.
 
    The continued support of our main sponsors Westfield Health, Halliwells, VALAD Property Group, Frasers Property Group, Evolution Power
Tools and HBOS plc is always appreciated as is the support of all sponsors. These partnerships have been supplemented with a new deal with
Edge Telecom, who have been appointed the Club's Telecoms Partner. This deal, along with the agreement with MTA is expected to be the first
of several national and international partnerships. 
    Thank you to all our sponsors and commercial partners who have provided support to the Club over the last financial year. They make a
major contribution to the success of Sheffield United Football Club and we look forward to building on these relationships. It is important
that as a club we repay the support and use our standing to assist in the growth of our partners respective businesses.
    Finally, we would also like to thank Capital One for their sponsorship over several years which came to a conclusion at the end of the
2007/08 season.

    Leisure Division

    This division comprises our conference, events and health club businesses plus the commercial use of other leisure facilities such as
the Shirecliffe Academy and the Derek Dooley junior community development centre.
    We have continued to build our non match day catering and events resulting in the department's turnover increasing by 4.3% and non match
day revenue by 14.6% over 2007. Christmas 2007 saw the number of covers maintained and a number of other innovative events have helped
support revenue, including hosting boxing matches featuring amongst others our former player Curtis Woodhouse.  
    To better service the additional conference and banqueting business expected to be generated by the launch of our hotel we have now
refurbished our main conference and banqueting suite, the "Platinum Suite". This suite has been updated and expanded so it can comfortably
accommodate 500 diners, making it one of the larger venues in Sheffield. 
    Concourse catering was brought in house at the beginning of 2007/08 season with the objective to improve the supporters' experience by
providing better standards of service and higher quality food and drink. In the first year this has proved a success improving standards of
service and quality whilst increasing revenue. 
    
The Thames Club in Staines performed well operationally during the year with profitability continuing to rise. The Board made the decision
that the time was right to realise the increase in value of the business and it consequently was placed on the market. The Thames Club was
sold for £4.55 million after the year end, realising a profit of £0.7 million based on a book value of £3.8 million and repaying debt of £2
million. 
    The Group also opened the new Derek Dooley junior community development centre in Crookes which includes a "Gym Plus" mid sized Gym
facility, a 60 x 40 all weather pitch and multi use games area. Gym membership has now reached nearly 500 and pitch income is growing with
daytime use being maximized.  
    A new Gym Plus will be opened in the Copthorne Sheffield Hotel in January 2009.
    The efforts of the staff at the Academy has increased income through sponsorship and the hiring of the facilities to other groups and
clubs.
    We have also taken the decision to improve our first team facilities which has led to the closure of the Gym at Shirecliffe although we
retain a facility for the local community. 

    Hotel

    The Copthorne Hotel Sheffield is still on course to open in December 2008. The hotel introduces high quality 4 star accommodation to the
City and will enhance Bramall Lane's reputation as a premier conference venue in the region. 
    The Hotel construction has proceeded on time and to budget. We thank all our contractors, led by GMI Construction plc and our
consultants for their continued efforts and commitment to the project. The hotel operator is currently completing a major recruitment and
training process prior to the hotel opening. I am happy to report that 59% of the staff have been recruited to date from the Sheffield area,
honouring our commitment to generate employment in the local area.
       
The opening of the hotel will signify a landmark in Sheffield United's history, for a project that was first discussed over 20 years ago and
will provide a new income stream for the Group.  

    Property
    BRAMALL LANE
    Over the past 12 months we have progressed the masterplan for the development of Bramall Lane which was originally promoted at last
years AGM. Having completed a comprehensive consultation exercise we are now in a position to submit a detailed planning application for
Phase 1 of the masterplan. Phase 1 will include the extension of the Kop providing an extra 3,200 seats, covered concourse areas including
first class supporters' facilities, offices and additional community amenities as well as a decked carpark. The current gap between the Kop
and Valad stand will be infilled by a new Enterprise Centre. Additionally, student accommodation will be built on the corner of John Street
and Shoreham Street.
    A further outline planning application will be submitted for Phase 2 in the near future. These proposals will include the extension of
the Valad Stand increasing the capacity of Bramall Lane to 40,000 and the development of the Shoreham Street and Cherry Street corner for
residential use.
    The above proposals are intended to provide the Club with the extra capacity to accommodate anticipated supporter growth and increased
demand associated with sustained Premier League status. In the long term it will also enhance Bramall Lane's credentials to become a World
Cup venue should England be successful in its 2018 bid.
    We have worked closely with the local Sharrow Community Forum (Distinctive Sharrow) in master planning the area, and promoting the
development of Sharrow, focusing on better links with the city centre, an improved transport infrastructure and development framework for
future regeneration. Sheffield United has an integral part to play in the area's rejuvenation as a major land owner and employer and is
committed to working with the community to achieve these goals.
    We have invested significant time into the management of our properties on John Street to increase rental income through a mixture of
lease renewals and lettings. The rental income on these properties is now expected to cover the interest costs of the bank facilities going
forward. The John Street properties produce not only another income source but strategically provide the Club with long term flexibility.

    ENTERPRISE CENTRE
    The Blades Enterprise Centre turnover for the year ending 2008 was £0.96 million with profits of £0.4 million. During the year we also
offered assistance to many local businesses who were rendered homeless by last years floods at very short notice. Occupancy of the Centre
continues to be excellent, running in excess of 95% for most of the year, and our executive boxes are often utilised on non match days as
meeting rooms with a difference. 
    The Blades Enterprise Centre team has succeeded in obtaining two out sourced management contracts for third party office space and
continues to explore opportunities for similar contracts. They are also providing managed workspace consultancy solutions to various public
sector enterprise bodies in the South Yorkshire region. 

    BLADES REALTY 
    Blades Realty (formerly United Scarborough Estates Limited), is a commercial property trading Group held as a 50% joint venture with
Scarborough Property Company Limited. From its inception in March 2005 it has acquired a property portfolio of approximately £130 million of
commercial, retail and industrial properties and sold on approximately £80 million of that portfolio.  
    The recent slow down in the property market has restricted property trading in the last 15 months but now allows Blades Realty to return
to its original aim, taking a risk adverse strategy to generate longer term profits through property acquisitions, proactive asset
management and ultimate disposal at an enhanced value.
    The Club's share of profits from Blades Realty was £0.9 million before interest and taxation in the year ending June 2008. The total
profit attributable to Sheffield United since its inception is £5.3 million before interest and taxation.
    Blades Realty profits over the last few years have helped Sheffield United plc build its on field success. Whilst the property
environment has been challenging over the last few months management have concentrated on letting void space, maintaining occupancy rates
and increasing rental income thus adding value for future potential sales. 

    A Community Club
    Sheffield United has always placed great importance on the communities in which it is located and the City as a whole. The demise of the
National Football in the Community scheme provided an excellent opportunity to bring our community activities in house and build on the
existing infrastructure. The United Initiative has taken Sheffield United's community involvement to a new level. The United Initiative is
now being incorporated as a Charity, whose objectives are to support the promotion of physical well being and social cohesion through sport,
education and other interventions. The establishment of the Charity implements best practice in the sports industry and will allow it to
focus on the key objectives, supported strongly by Sheffield United. 
    The United Initiative's activities are focused on young people and other excluded groups through local and national initiatives
including the Duke of Edinburgh Award Scheme, Football in the Community, Vocational Skills Programme, Fit for School programme, KICKZ,
Football Unites Racism Divides and the utilisation of the Academy and the Derek Dooley junior community development centre at Crookes for
community usage. We have engaged around 17,000 children and young adults during 2007/08 through these programmes.
    Our community activities have been recognised locally through both The Star & St John's Ambulance Sports Awards, winning the Outstanding
Community Contribution Award and through our being a finalist in the Sheffield Business Awards for the Community Impact Award. 

    Legends of the Lane
    We would like to thank the patrons of Legends of the Lane whose funding and support has enabled this important Club facility not only to
provide community interaction through the Fit for School programme but has also supported further investment in the memorabilia, which forms
an important part of the Blades heritage. Legends of the Lane patrons are Chris Steer (Pyramid Carpets), David Green (Green Piling), Suzie
MacCagnan, Angela Moore (Westfield Health), Andrew Arrand (Terra Firma Tiles), Jim Stewart (Ram Tubulars Scotland) and the Co-Operative. 
    We purchased several exceptional items for the Legends collection this year with their assistance, including Jack Almond's FA cup
winners medal from the final in 1899 and in the last month we were able to successfully secure the Alf Common collection in relation to his
career at Sheffield United.  

    National Skills Academy
    The development project to build the National Skills Academy (NSA) at Shirecliffe has moved forward over the last year. Planning
permission has now been obtained and we are currently finalising grant funding. The NSA is proposing to provide one single, coherent
approach to all skills training in the Sport and Leisure sector and will form the national hub for this government initiative.  
    Additionally, we have submitted a grant application for the provision of a enterprise centre on the second floor.

    International

    In October 2007 Chengdu Blades achieved their long time objective of promotion to the Chinese Super League, only two years after the
Club was acquired by Sheffield United. In the current season they are presently mid table, having already cemented their membership of the
Super League for 2009.  
    Off the field the devastating effect of the Sichuan Earthquake has constrained new business activities as many sponsors have refocused
their funding on the rebuilding of the province. We are working hard to develop a series of partnerships with international companies with
interests in the Far East, which is intended to expand and increase the sources of income for the Club.  
    The Chengdu Blades Academy has had a successful season winning a number of tournaments at U17 and U19 levels. The Chengdu reserve team
has now started playing in the Hong Kong League as the Sheffield United Hong Kong FC. The primary intention of this exercise is for the
reserve team players to obtain competitive experience, assisting in the development of the players. This will be funded by new sponsors in
Hong Kong expanding our international profile.
    The main additions to our international network over the last year have been Ferencvaros, Hungary's most successful club; which was
acquired by one of our sister companies, and the strategic agreement signed with Central Coast Mariners, the current Australian Champions. 
    Sheffield United is working closely under a co-operation agreement with Ferencvaros to rebuild Hungary's most famous club. Terry
Robinson, has been made Chairman of Ferencvaros and has assisted the club in developing a team which now tops the Hungarian 2nd Division. On
the business front Mike Farnan is leading a major campaign to attract sponsors back to the club and we are also assisting in the design of
the proposed new stadium.  
    Our development players from the Ivory Coast, who were based in China last year and the Caribbean players previously based at Royal
White Star FC, have now all moved to Ferencvaros to strengthen their squad. One Caribbean player has moved to join Chengdu Blades to assist
in their Super League campaign. Sheffield United has also provided coaching and technical assistance to Chengdu Blades and Ferencvaros as a
part of the integrated "Blades Way" approach to managing football.
    The agreement with Central Coast Mariners is still in its initial stages but we are sharing knowledge and contacts and offering an
international perspective to the multinational companies which dominate the world market. 
    We have now entered into a number of partnerships throughout Europe in order to develop players for the future. The main focus of the
Club remains our first team but it is imperative we lay the foundations for the long term future of the Sheffield United Football Club.

    Finance

    Key Performance Indicators (KPIs)
    As a diversified business, management monitor a broad range of both qualitative and quantitative KPIs to review the performance of the
business on a monthly, weekly and in some cases daily basis. To focus on the key drivers of the profitability of the Group, the Directors
have identified the key indicators as set out below:
    Average Crowd: Ticket sales are the Football Club's largest income stream that can be directly controlled. Average crowd attendance also
has a direct influence on catering, advertising, merchandising and sponsorship income. 
    League Position: The League position of the Football Club defines the success or failure of the Club on the pitch and has an indirect
impact on the income the Club receives from its football related businesses. 
    Player wages as a percentage of turnover: The main cost in any football related business is the level of player wages and it is standard
industry practice to compare the player wages to turnover as both a benchmark and a measure of affordability. Turnover is defined in this
measure as being the sales from football related activities and contribution from the other activities such as Leisure and Property.
    Non-match day leisure revenue: As part of the diversification of the business and to utilise the assets held, the level of revenue
achieved by the Leisure and Catering Department which is not related to match days indicates the success of this segment of the business.  
    For property we have two main KPIs as follows:
    Rental yields: rental income as expressed as a percentage of a property's carrying value. This is then compared to the average cost of
borrowing and current market rates.  
    Development yields: where the ratio of estimated development profit is reviewed over the development cost. This is used to assess the
value and viability of a development.  

    Financing  
    After the repayment of the remaining tranche of the transfer facility in September 2008, the Group has now reduced its bank debt in
relation to football to under £3 million plus a £2 million working capital facility which is drawn as required at certain times during the
year. The remainder of our debt is all specifically related to non football revenue generating activities such as Property and Leisure.
Since June 2007 we have repaid over £12 million of football related bank debt which is a prudent approach in the current economic climate. 
    The Group invested £12.4 million in various income generating capital projects. The largest of these is the investment in the
construction of the Copthorne Sheffield Hotel which represented £11.8 million of the total. This was financed by a £13.5 million overdraft
facility from HBOS plc which will be converted into an 18 year term facility. £8.1 million had been drawn on this facility as at 30 June
2008. An additional £0.6 million was also invested in the Derek Dooley junior development centre at Crookes in developing the gym and
pitches. Funded by a £0.6 million facility from HBOS plc repayable over 5 years. 
    In addition, the Group also obtained a £10.0 million loan from SDG Caledonia Holdings Limited, a subsidiary of Scarborough Group
International Limited, a company controlled by the McCabe family mainly to sustain levels of investment in the playing squad. After the year
end this loan was rolled over into convertible, redeemable loan notes and a further £2.2 million was injected from other directors and
connected parties, which can be converted to equity in September 2009 if not repaid before the end of August.
    Playing Squad: SUFC invested £8.1 million into acquisitions to the worldwide playing squad during the 2008 financial year and received
£9.3 million in payments in respect of players registrations which were disposed of. This represents a net cash flow from the playing squad
of £1.2 million for the year, when compared to a £12.1 million investment in 2007.  
    Our thanks go to HBOS plc for their support of our business through both the provision of finance and sponsorship. The difficult times
in the world banking industry show the value in long term relationships between Banks and customers. We appreciate the assistance provided
by HBOS over last year in trying circumstances.  
    The Scarborough Group International Group of companies and the directors of both Sheffield United plc and Football Club should also be
thanked again for their support over the last year. Their provision of assistance in the form of debt funding, sponsorship and management
support has been fundamental in our ability to continue to develop the business on many fronts and to challenge for promotion in the current
season. 

    International Financial Reporting Standards (IFRS)
    This financial report and accounts are the first to be presented under IFRS. A full explanation of the adjustments and the
reconciliation to the UK GAAP accounts are provided. I trust that this is all self explanatory.  

    Prospects
    The most important objective for Sheffield United Football Club remains a return to the Premier League, where the television and other
revenues are significant. The Board has maintained investment in the first team and provided an environment for success on the pitch with
this in mind.
    The "Tevez affair" has been commented on broadly in the Chairman's Statement. The Board intend to continue this case until the Group are
properly compensated for the damages caused, but this process is not expected to be concluded until next year.  
    Sheffield United plc has been building its business through the increasing diversification of both its asset base and income streams.
This strategy is currently under review by the Board to take into account the unprecedented turmoil in the banking and property markets,
where the outlook in the near future is mixed. The sale of Thames Club after the year end indicates that the Board may consider further
asset sales to free up capital if the correct opportunities are identified.  
    Within this framework the Group will continue to work to maximise returns from Blades Realty by managing the existing portfolio for
rental growth.
    The Club continues to invest in its Academy and develop a network of partnerships both nationally and internationally, whilst the links
with Chengdu, Hong Kong and Hungary are being strengthened by the implementation of a "one system" approach to player development.  
    The conversion of the "United Initiative" to a Charity is moving forward apace and is expected to be completed in the near future. The
Club will continue to grow our contribution to the communities in which we are located.
    The opening of the new Copthorne Sheffield Hotel is scheduled for December 2008 and bookings are already being taken for the hotel. 
    Our Leisure Division is expected to contribute strongly this year as Gym Plus at Crookes continues to grow its membership base coupled
with the opening of the new Gym Plus at the Copthorne Sheffield Hotel in January. The opening of the hotel is also expected to drive our
conference and events income as we can now offer a combined 24 hours delegate rate.
    The current season ticket sales are around 19,000 and with the average league gate at 25,391 the Club is currently the 2nd best
supported club in the Championship. Sales from the retail stores, lottery and programmes are continuing to perform well considering the
current economic climate.
    The planning application for Phase 1 of the stadium development plan is due to be submitted in December 2008 with a view to gaining
planning permission within the next six months. The decision to commence construction will be dependent on a variety of factors including
future demand and economic conditions.  
    We have continued to strengthen our management team, with the appointment of key individuals throughout the Group and trust this will
enable the business to continue to grow despite difficult economic times.  

    Summary
    As stated above the current year has been one of progress on many fronts, but the future presents many challenges. The economic climate
cannot be discounted, as we are already starting to see its effects on the communities around us and most of the sectors we operate in are
not immune to these pressures.  
    However, the improvements in our management team, the robust business model we have developed over the last few years and the
geographical spread of the business should safeguard us from the worst of the effects of the current downturn.  
    In closing I would like to thank my fellow directors and colleagues at Sheffield United who continue to work tirelessly for the future
of the Group.  

    I would also express the Board's appreciation to our sponsors, commercial partners and importantly our supporters without whom the
continued growth of Sheffield United on and off the pitch would not be possible.  
    Jason Rockett
    Chief Executive
    27 November 2008


    Consolidated Income Statement for year ended 30 June 2008
                                                              2008          2007
                                                 Note         £000          £000
 Continuing operations
 Revenue                                          4         32,132       44,217 
 Cost of sales                                            (25,779)      (30,500)
 Gross profit                                                6,353        13,717
 Administrative costs                                     (10,237)      (11,503)
 Other operating income                                        352          466 
                                                           (9,885)      (11,037)
 Operating (loss)/profit before amortisation,
 impairment
 of costs of players' registrations and profit
 on disposal 
 of non current assets and cost of terminating
 players' 
 contracts                                                 (3,725)         7,764
 Amortisation and impairment of costs of                   (6,551)       (4,822)
 players' registrations
 Termination payments                                        (520)         (950)
 Profit on disposal of players' registrations                7,264           661
 Profit on disposal of property, plant and                       -            27
 equipment
                                                  4        (3,532)         2,680
 Operating (loss)/profit                          4        (3,532)         2,680
 Finance costs                                             (3,220)       (2,478)
 (Loss)/profit before tax                                  (6,752)           202
 Income tax credit/(expense)                                   129           (9)
  
 (Loss)/profit for the year from continuing               (6,623)            193
 operations
 Discontinued operations
 Profit for the year from discontinued                         324           124
 operations
 (Loss)/profit for the year                                (6,299)           317
 Attributable to:
 Equity holders of the parent                             (6,108)            474
 Minority interest                                           (191)         (157)
                                                          (6,299)           317 
 Earnings per share:
 Total basic and diluted (loss)/profit per                 (2.193)         0.211
 share (pence)
 Basic and diluted (loss)/profit per share from
 continuing 
 operations (pence)                                        (2.310)         0.156
 Number of shares                                      278,508,014  225,174,681 
    

 
    Consolidated Statement of Recognised Income and Expense for the year ended 30 June 2008

                                                          2008    2007
                                                          £000    £000
 Cash flow hedges:                                   
 Gains/(losses) taken to equity                            113       -
 Translation reserve:                                
 Gains/(losses) taken to equity                              -  (10)  
 Net income/(expense) recognised directly in equity        113  (10)  
 (Loss)/profit for the period                          (6,299)     317
 Total recognised income and expense for the period    (6,186)     307
 Attributable to:                                    
 Equity holders of the parent                          (5,995)     464
 Minority interest                                       (191)   (157)
                                                       (6,186)     307
    
 

    Consolidated Balance Sheet at 30 June 2008
                                                            2008      2007
                                                            £000      £000
 ASSETS                                               
 Non-current assets                                   
 Property, plant and equipment                            41,731   34,048 
 Goodwill                                                     84       207
 Other intangible assets                                   9,090   11,183 
                                                          50,905   45,438 
 Current assets                                       
 Inventories                                              28,072   24,647 
 Trade and other receivables                               7,339     3,766
 Financial derivatives                                       113         -
 Current tax receivable                                      250       206
 Cash and cash equivalents                                   179    3,841 
                                                          35,953   32,460 
 Non-current assets classified as held for sale            5,535        - 
 Total assets                                             92,393   77,898 
 LIABILITIES                                          
 Current liabilities                                  
 Trade and other payables                               (10,482)   (8,885)
 Short-term borrowings                                  (47,561)  (14,742)
 Current portion of long-term borrowings                 (1,658)   (8,204)
 Current portion of deferred income                      (4,477)   (4,641)
                                                        (64,178)  (36,472)
 Non-current liabilities                              
 Other payables                                            (120)     (120)
 Long-term borrowing                                     (8,690)  (15,657)
 Long-term deferred income                               (4,289)   (4,373)
                                                        (13,099)  (20,150)
 Total liabilities                                      (77,277)  (56,622)
 Net assets                                               15,116    21,276
 EQUITY                                               
 Equity attributable to equity holders of the parent  
 Share capital                                            27,851    27,851
 Share premium account                                    20,019    20,019
 Merger reserve                                            3,018     3,018
 Hedge reserve                                               113         -
 Translation reserve                                        (10)      (10)
 Retained earnings                                      (35,523)  (29,441)
                                                          15,468    21,437
 Minority interest                                         (352)    (161) 
 Total equity                                             15,116   21,276 


    Consolidated Cash Flow Statement for the year ended 30 June 2008
                                                                2008      2007
                                                                £000      £000
 Cash flows from operating activities                     
 (Loss)/profit after taxation                                (6,299)       317
 Adjustments for:                                         
 Depreciation                                                  1,208       871
 Amortisation and impairment of players' registrations         6,551     4,822
 Cost of share option                                             26         -
 Profit on disposal of players' registrations                (7,264)     (661)
 Profit on disposal of property, plant and equipment               -     (27) 
 Foreign exchange loss                                             -     (10) 
 Interest expense                                              3,383     2,664
 Taxation (credit)/expense recognised in income                (129)         9
 statement                                                
 Grants released in income statement                           (125)     (147)
 Increase in trade and other receivables                     (2,372)     (508)
 Increase in inventories                                     (3,425)  (12,546)
 Decrease in trade payables                                      (5)   (2,735)
 Decrease in deferred income                                   (123)   (1,201)
 Cash absorbed by operations                                 (8,574)   (9,152)
 Interest paid                                               (2,823)   (2,663)
 Interest element of finance lease payments                     (17)       (9)
 Net cash from operating activities                         (11,414)  (11,824)
 Taxation received                                                85         -
 Cash flows from investing activities                     
 Purchase of subsidiary undertakings                               -      (84)
 Purchase of property, plant and equipment                  (12,357)   (3,861)
 Purchase of player registrations                            (8,120)  (14,254)
 Proceeds from sale of equipment                                   -       270
 Proceeds from disposal of player registrations                9,276     2,194
 Net cash used in investing activities                      (11,201)  (15,735)
 Cash flows from financing activities                     
 Proceeds from issue of share capital                              -    10,000
 Costs of issuing share capital                                    -     (117)
 Proceeds from long term borrowing                               344    11,919
 Proceeds from short term borrowing                           25,842    12,240
 Proceeds from grants                                              -        35
 Payment of finance lease liabilities                          (109)      (31)
 Payment of long term borrowing                              (7,209)   (3,246)
 Net cash from financing activities                           18,868    30,800
 Net (decrease)/increase in cash and cash equivalents        (3,662)     3,241
 Cash and cash equivalents at the beginning of period          3,841       600
 Cash and cash equivalents at the end of period                  179     3,841



    Notes
    1. Basis of preparation

    The information above, which does not constitute full financial statements within the meaning of S240 CA 1985, is extracted from the
audited financial statements of Sheffield United plc for the year ended 30 June 2007 which: 

    *     were approved by the Directors on 24 October 2007
    *     carry an unqualified audit report which did not contain any statements under S237 CA 1985.
    *     will be posted to shareholders and available to the public shortly
    *     will be filed with the Registrar of Companies following the Annual General Meeting which will be held at 11:30 am on 23 November
2006 in the Platinum Suite at Sheffield United Football Club, Bramall Lane.

    The financial statements have been prepared under the historical cost convention and in accordance with applicable United Kingdom
accounting standards, and on the basis of the accounting policies set out in the Annual Report for the year ended 30 June 2006 other than
the adoption of FRS 20 'Share-Based Payment (IFRS 2)' For the year ended 30 June 2007 the change in accounting policy has not resulted in a
charge to the profit and loss account and no effect on the balance sheet as the award was granted on or around the year end date.
    These financial statements are the first to be prepared by Sheffield United plc (the Group) in accordance with International Financial
Reporting Standards as adopted for use in the EU (Adopted IFRS) and as such take account of the requirements and options laid down in IFRS1
(First-time Adoption of International Financial Reporting Standards) as they relate to the 2007 comparatives included herein, with the date
of transition being 1 July 2006.
    Note 2 below describes how, in preparing the underlying financial statements, the Directors have applied Adopted IFRS under the
first-time adoption provisions set out in IFRS 1 and the assumptions they have made about the standards and interpretations expected to be
effective and the policies they have adopted in the 2008 financial statements. 

    2.    Transition to adopted IFRSs
    The Group statements have been prepared in accordance with Adopted IFRSs for the first time and have applied IFRS 1. An explanation of
how the transition to Adopted IFRSs has affected the previously reported financial position and financial performance of the Group is
provided later in this report.
    IFRS 1 grants certain exemptions from the full reporting requirements of IFRSs in the transitional period. The following exemptions have
been applied in these financial statements:
    Deemed cost of property, plant and equipment
    The deemed cost for assets previously revalued under Adopted IFRSs at 1 July 2006 will be the revalued amount of each asset previously
shown under UK GAAP. For assets which had not been previously revalued, IAS 16 will be applied retrospectively.
    Business combinations
    Business combinations that took place prior to 1 July 2006, the Group's date of transition to IFRS, have not been restated to comply
with IFRS 3 "Business Combinations". Goodwill arising from these business combinations of £123,000 has not been restated.

    3.    Summary of significant accounting policies
    The Group's accounting policies have been revised to comply with IFRS and are shown below.

    Basis of accounting
    The financial statements have been prepared in accordance with IFRS adopted for use in the European Union, and under the historical cost
convention modified where applicable by the revaluation of certain assets.

    Basis of consolidation
    Subsidiaries are entities controlled by the Group. Control exists where the Group has the power, directly or indirectly, to govern the
financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights
that are currently exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
    Jointly controlled entities are those entities over which the Group has joint control, established by contractual agreement. The
consolidated financial statements include the Group's share of the total recognised gains and losses and assets and liabilities of jointly
controlled entities on a proportionate consolidation basis, from the date that joint control commences until the date that joint control
ceases.
    Intra group balances and any unrealised gains and losses or income and expenses arising from intra group transactions are eliminated in
preparing the consolidated financial statements.

    Going concern
    After making enquiries, reviewing medium term budgets, cashflow forecasts and available banking facilities, the directors have a
reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this
reason they continue to adopt the going concern basis in preparing the financial statements.

    Revenue
    Revenue represents income arising from sales to third parties, and excludes transfer fees receivable and value added tax.
    i) Season ticket and corporate hospitality revenue is recognised over the period of the football season.

    ii) Fixed elements of the FA Championship League Central broadcasting contracts and fixed elements of     FA Premier League payments are
recognised over the period August to May in the relevant football season. The merit based payment in the 2007/2008 season was recognised at
the end of the league season, when the final league position was known.

    iii) Sponsorship contracts are recognised over the duration of the contract, either on a straight-line basis over the length of the
contract, or over the period of the football season.

    iv) Catering revenues are recognised on the date the services and goods are supplied to the customer.

    v) Revenue from the sale of branded products is recognised at the point of despatch when significant risks and rewards of ownership have
been transferred to the buyer.

    vi) Revenue from rental income is recognised on a straight line basis over the life of the contract.

    vii) Revenue from stock property sales is recognised when the transfer of the rights and obligations related to that property become
unconditional.

    Expenses
    Operating lease payments
    Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of the lease. Lease
incentives are recognised in the income statement as an integral part of the total lease expense.

    Finance lease payments
    Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is
allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the
liability.

    Net financing costs
    Net financing costs comprise interest payable on borrowings, calculated using the effective interest rate method.
    The discounting of the deferred payments for the purchase of players' registrations produces a notional interest payable amount and this
is charged to finance costs.
    The discounting of the deferred receipts for sales of players' registrations produces a notional interest receivable amount and this is
credited to finance income.

    Taxation
    Tax on the result for each period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent
that it relates to items recognised directly in equity, in which case it is recognised in equity.
    Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or substantially enacted at the
balance sheet date, and any adjustment to tax payable in respect of previous years.
    Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of
goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business
combination, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable
future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amounts of assets
and liabilities, using tax rates enacted or substantially enacted at the balance sheet date.
    A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which
the asset can be utilised.
    Deferred tax assets and liabilities are not discounted.

    Intangible assets and goodwill

    i) Acquired players' registrations
    The costs associated with the acquisition of players' registrations are initially recorded at their fair value at the date of
acquisition as intangible assets. These costs are fully amortised over the period of the respective players' contracts.
    For the purpose of impairment reviews, acquired players' registrations are classified as a single cash-generating unit until the point
at which it is made clear that the player is no longer an active member of the playing squad. In these circumstances the carrying value of
the players' registration is reviewed against a measurable net realisable value.
    Acquired players' registrations are classified as 'Non-current assets classified as held for sale' on the balance sheet if, at any time,
it is considered that the carrying amount of a registration will be recovered principally through a sale. The measurement of the
registration is the lower of (a) fair value (less costs to sell) and (b) carrying value. Amortisation of the asset is suspended at the time
of reclassification, although impairment charges are still made if applicable.

    ii) Amortisation
    Amortisation is charged to the income statement on a straight-line basis over the estimated useful lives of player registrations, ie the
length of the contract with the player. Amortisation expense is included within Cost of Sales.

    iii) Goodwill
    Goodwill arises on business combinations, representing the differences between the cost of acquisition and the fair value of assets
combined. Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units and is not
amortised but is tested annually for impairment.

    Property, plant and equipment
    i)    Owned assets
    Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.
    ii)    Leased assets
    Finance leases are those which transfer substantially all of the risks and rewards of ownership to the lessee. Assets held under finance
leases are capitalised as property, plant and equipment and are depreciated over the shorter of the lease term or their useful economic
life. The capital elements are charged to the income statement over the period of the lease to produce a constant rate of charge on the
balance of capital repayments outstanding.
    iii)    Depreciation
    Depreciation is charged to the income statement to write off the cost of property, plant and equipment less estimated residual value, on
a straight-line basis, over their estimated useful lives as follows:

 Freehold Buildings   50 years
 Plant and Equipment  4 - 5 years
 Motor Vehicles       4 years

    No depreciation is provided on freehold land or assets in the course of construction. The residual value and the useful economic lives
of assets are reassessed annually.
    Interest incurred on borrowings to finance assets in the course of construction is capitalised. Once construction has been completed,
interest is charged to the income statement.

    Inventories
    Property Inventories
    Inventories of property are stated at the lower of cost and net realisable value. Cost comprises the expenditure incurred in acquiring
the inventories and bringing them to their existing condition, including stamp duty and legal costs. Net realisable value is based on the
estimated selling price in the ordinary course of business. Provision is made when a property's net realisable value falls below cost. 

    Other inventories
    Inventories are stated at the lower of cost and net realisable value. Cost is based on the weighted average principle and includes
expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. Net realisable value is based
on the estimated selling price in the ordinary course of business. Provision is made for obsolete, slow-moving or defective items where
appropriate.

    Cash and cash equivalents
    Cash and cash equivalents comprise cash balances.

    Signing on fees
    Signing on fees are charged to the income statement in accordance with the terms of the player's contract. Where a player's registration
is transferred, any signing on fees payable in respect of future periods are charged against the profit/(loss) on disposal of players'
registrations in the period in which the disposal is recognised.

    Deferred income
    Deferred income comprises amounts received from capital grants, sponsorship and season ticket income. Capital grants are released to the
income statement on a straight-line basis over the estimated useful lives of the assets to which they relate. Other deferred income is
released to the income statement on a straight-line basis over the period to which it relates.

    Foreign currency
    Transactions in foreign currencies are translated into Sterling at the rate of exchange ruling at the date of the transaction. Foreign
currency monetary assets and liabilities at the balance sheet date are translated at the foreign exchange rate ruling at that date. Foreign
exchange differences arising on translation are recognised in the income statement. Non-monetary assets and liabilities measured at
historical cost in a foreign currency are translated into Sterling at the rate of exchange on the date of the transaction.
    All items and transactions of group entities with a functional currency other than Sterling are translated into Sterling upon
consolidation. Assets and Liabilities are translated into Sterling at the closing rate at the balance sheet dates. Income and expenses are
translated at the average rate over the reporting periods. Any differences arising are charged/credited to the currency translation reserve
in equity.

    Classification of financial instruments issued by the Group
    Financial instruments issued by the Group are treated as equity (i.e. forming part of shareholders' funds) only to the extent that they
meet the following two conditions:
    (a)    They include no contractual obligations upon the Group to deliver cash or other financial assets or to exchange financial assets
or financial liabilities with another party under conditions that are potentially unfavourable to the Group; and
    (b)    Where the instrument will or may be settled in the Company's own equity instruments, it is either a non-derivative that includes
no obligation to deliver a variable number of the Company's own equity instruments or is a derivative that will be settled by the Company's
exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments.
    To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the instrument so
classified takes the legal form of the Company's own shares, the amounts presented in these financial statements for called-up share capital
and share premium account exclude amounts in relation to those shares.
    Where a financial instrument that contains both equity and financial liability components exists these components are separated and
accounted for individually under the above policy.  

    Financial derivatives
    To qualify for the hedge accounting, the hedge relationship must meet several strict conditions with respect to documentation,
probability of occurrence, hedge effectiveness and reliability of measurement. To the extent that the hedge is effective the gain or loss on
re-measurement to fair value is reflected in equity within the hedging reserve. At the time the hedged item affects the profit and loss, any
gain previously recognised in equity is released to the income statement. However, if a non-financial asset or liability is recognised as a
result of the hedge transaction, the gains and losses previously recognised in equity are included in the initial measurement of the hedge
item. If the hedging becomes ineffective any related gain or loss recognised in equity is immediately transferred to the income statement.
Any ineffectiveness in the hedge relationship is charged immediately to the income statement.

    Interest-bearing borrowings
    Interest-bearing borrowings are recognised initially at fair value, net of transaction costs.
    Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and
redemption being recognised in profit or loss over the period of the borrowing on an effective interest basis.

    Employee benefits
    Defined contribution plans
    Obligations for contributions to defined contributions pension plans are recognised as an expense in the income statement as incurred.

    Impairment
    The carrying value of the Group's assets, other than inventories and deferred tax assets, are reviewed at each balance sheet date to
determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated.
    An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount.
Impairment losses are recognised in the income statement.
    Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill
allocated to cash-generating units and then to reduce the carrying amount of the other assets in the unit on a pro-rata basis. A
cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash
inflows from other assets or groups of assets.

    Trade and other payables and receivables
    Trade and other payables are initially recognised at their fair value net of any direct issue costs, and subsequently measured at
amortised cost using the effective interest method. Trade receivables are recorded initially at fair value plus transaction costs, and
subsequently measured at amortised cost using the effective interest method.
    Other payables on deferred terms, in particular the purchase of players' registrations are recorded at their fair value on the date of
the transaction and subsequently at amortised cost.
    Other receivables on deferred terms, in particular the proceeds from sales of players' registrations are recorded at their fair value at
the date of sale and subsequently at amortised cost less allowances for impairment.

    Segment reporting
    A segment is a distinguishable component of the Group that is engaged either in providing products or services (business segment) or in
providing products or services within a particular economic environment (geographical segment) which is subject to risks and rewards that
are different from those of the other segments.
    The Group has determined that its primary reporting format is by business segments and that its secondary format is geographical
segments.

    Provisions
    A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past
event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material,
provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessment of the
time value of money and, where appropriate, the risks specific to the liability.

    Judgements and key sources of estimation uncertainty
    In common with all financial statements, the directors have applied certain judgements and estimates in the preparation of these
financial statements. The directors consider the following areas to be the key sources of estimation uncertainty:
    No asset other than the recovery of all fees and costs has been recognised in relation to the arbitration process against West Ham
United Football Club, as the level of the award is still to be quantified. In the judgement of the directors, the level of the award
recoverable from West Ham United Football Club will be at least the value of the costs incurred by Sheffield United Football Club.
    The properties held by a Group company John Street Developments Limited have been treated as property inventories as the directors'
intention is to develop these properties for future sale, in the normal course of that company's business, property development.
    The player registrations are carried at a cost less impairment of £11.2m. These have been reviewed for impairment, taking into account
the players' contributions to the playing squad, any post year end sales proceeds and a directors' estimation of re-sale value at 30 June
2008. 

    Standards in issue not yet effective
    At 30 June 2008 the following standards and interpretations were in issue but were not effective for the year then ended: 
    -    IAS 1 Presentation of Financial Statements (revised 2007) 
    -    IAS 23 Borrowing Costs (revised 2007) 
    -    Amendment to IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements - Puttable Financial
Instruments and Obligations Arising on Liquidation 
    -    IAS 27 Consolidated and Separate Financial Statements (Revised 2008) 
    -    Amendment to IFRS 2 Share-based Payment - Vesting Conditions and Cancellations 
    -    Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and IAS 27 Consolidated and Separate
Financial Statements - Costs of Investment in a Subsidiary, Jointly Controlled Entity or Associate 
    -    Amendment to IAS 39 Financial Instruments: Recognition and Measurement - Eligible Hedged Items 
    -    Improvements to IFRSs 
    -    IFRS 3 Business Combinations (Revised 2008) 
    -    IFRS 8 Operating Segments 
    -    IFRIC 12 Service Concession Arrangements 
    -    IFRIC 13 Customer Loyalty Programmes 
    -    IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction 
    -    IFRIC 15 Agreements for the Construction of Real Estate 
    -    IFRIC 16 Hedges of a Net Investment in a Foreign Operation 
    
The directors do not expect the above standards to have a significant impact on the recognition or measurement of items included in the
financial statements. IAS 1 Presentation of Financial Statements (revised 2007) will have a significant impact on the presentation of future
financial statements, eg the balance sheet will be presented with two comparatives in certain circumstances, showing the financial position
of the Group at both the end and the beginning of the comparative period. IFRS 8 operating segments will have a significant impact on the
way business segments are reported.

    4.    Segment analysis

    The Group has five separately identifiable business segments.
    Segmental information about these divisions is presented below:
 Revenue
                             2008    2007
 Continuing operations       £000    £000
 Football                  27,090  35,045
 Hotel                         49       -
 Business centre              965     853
 Leisure                    2,538   1,437
 Property ventures          1,490   6,882
                           32,132  44,217
 Discontinued operations
 Health club                1,654   1,550
 Total                     33,786  45,767





 Operating (loss)/profit
                             2008    2007
 Continuing operations       £000    £000
 Football                 (5,417)      97
 Hotel                         36       -
 Business centre              373     376
 Leisure                      408     388
 Property ventures          1,068   1,819
                          (3,532)   2,680
 Discontinued operations
 Health club                  487     310
 Total                    (3,045)   2,990





                                
                         Continuing operations                                        Discontinued
                                                                                        operations

                       Football   Hotel  Business  Leisure  Property   Total           Health club
                                           centre           ventures
                           2008    2008      2008     2008      2008    2008                  2008
                           £000    £000      £000     £000      £000    £000                  £000
 Other information
 Capital additions        1,748  10,731        43      201         -  12,723                     5
 Depreciation             1,089       -        38       45         -   1,172                    36
 Amortisation             6,551       -         -        -         -   6,551                     -
 Balance sheet assets    47,217  13,533     1,087      713    24,525  87,075                 5,318
 Liabilities             41,697  10,867       304      179    22,159  75,206                 2,071


                       
                         Continuing operations                                            Discontinued
                                                                                            operations

                       Football  Hotel  Business     Leisure &  Property   Total           Health club
                                          centre  health clubs  ventures
                           2007   2007      2007          2007      2007    2007                  2007
                           £000   £000      £000          £000      £000    £000                  £000
 Other information
 Capital additions        3,717      -        36           126         -   3,879                    19
 Depreciation               785      -        29            13         -     827                    44
 Amortisation             4,822      -         -             -         -   4,822                     -
 Balance sheet assets    47,535      -     1,041         2,277    22,409  73,262                 4,636
 Liabilities             32,862      -       274           448    20,587  54,171                 2,451

    The Group's operating activities are split by geographical location between those in China and those in the UK as shown below:
                 
                
                       Continuing operations  Discontinued
                                                operations
                           UK  China  Total             UK
                         2008   2008    2008          2008
                         £000   £000    £000          £000
 Revenue               31,280    852  32,132         1,654
 Other information
 Capital additions     12,480    585  13,065             5

 Balance sheet assets  86,231    844  87,075         5,318


                           UK  China  Total             UK
                         2007   2007    2007          2007
                         £000   £000    £000          £000
 Revenue               43,655    562  44,217         1,550

 Other information
 Capital additions      3,685    194   3,879            19
 Balance sheet assets  72,646    616  73,262         4,636

    5.    Statement of changes in equity

                        Share    Share   Merger  Translation    Hedge  Retained    Total   Minority   Total 
                      capital  premium  reserve      reserve  reserve  earnings           interests   equity
                         £000     £000     £000         £000     £000      £000     £000       £000     £000
 At 1 July 2006        21,184   16,803    3,018            -        -  (29,915)   11,090        (4)   11,086
 Result for the year        -        -        -            -        -       474      474      (157)      317
 Issue of shares        6,667    3,333        -            -        -         -   10,000          -   10,000
 Cost of issuing 
 shares                     -    (117)        -            -        -         -    (117)          -    (117)
 Translation of 
 Chengdu Blades             -        -        -         (10)        -         -     (10)          -     (10)
 At 30 June 2007       27,851   20,019    3,018         (10)        -  (29,441)   21,437      (161)   21,276
 Loss for the year          -        -        -            -        -   (6,108)  (6,108)      (191)  (6,299)
 Gains on 
 cashflow hedge             -        -        -            -      113         -      113          -      113
 Cost of share 
 options                    -        -        -            -        -        26       26          -       26
 At 30 June 2008       27,851   20,019    3,018         (10)      113  (35,523)   15,468      (352)   15,116

    6. Explanation of transition to IFRS

    As stated in the accounting policies, these are the Group's first consolidated financial statements prepared in accordance with Adopted
IFRSs. The significant accounting policies have been applied in preparing these accounts for the year ended 30 June 2008, the comparatives
for the year ended 30 June 2007, and in the preparation of an opening IFRS balance sheet at 1 July 2006 (the Group's date of transition). In
preparing its opening IFRS balance sheet, the Group has adjusted amounts reported previously in financial statements prepared in accordance
with UK GAAP.
    An explanation of how the transition from UK GAAP to IFRSs has affected the Group's financial position and financial performance is set
out in the following tables and notes.
    Intangible assets
    (1) Acquisition of player registrations
    Under IAS 38 "Intangible Assets" players acquired on deferred terms are recorded at the fair value at the date of acquisition. The
related creditor is then increased to the settlement value on an effective interest basis over the period of deferral, with this value being
charged as notional interest within 'Finance expenses' in the income statement. The net effect is a reduction in the creditor of £7,000 at
30 June 2007 and £100,000 at 1 July 2006.
    The increased interest is charged to finance costs over the deferral period and amounted to £2,000 for the year to 30 June 2007.
    The corresponding player registration value is also reduced by the notional interest; the lower intangible asset value results in a
reduced charge to operating profit as the intangible asset is amortised over the length of the player's contract. The net effect on
intangible assets is a reduction of £71,000 at 30 June 2007 and a reduction of £101,000 at 1 July 2006. Operating profit for the year to 30
June 2007 increased by £30,000.
    (2) Disposal of Player Registrations 
    Under IAS 38 "Intangible Assets" players sold on deferred terms are recorded at the fair value at the date of disposal. The related
receivable is then reduced to the settlement value on an effective interest basis over the period of deferral, with this value being
credited to notional interest within 'Finance expenses' in the income statement. The net effect of the reduction in debtors at 30 June 2006
and 1 July 2005 was not material and no adjustment has been made.  
    Goodwill
    Under IFRS 3 "Business Combinations" goodwill arising on a business combination is not amortised, but is subject to an annual impairment
review.
    The Board of Directors has performed such a review and do not consider an impairment necessary. Accordingly the amortisation accounted
for under UK GAAP in the year ended 30 June 2007 has been reversed. 
    Non - current assets held for sale
    Under IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations" if at any time, it is considered that the carrying amount of
an asset (including a player's registration) will be recovered principally through sale, rather than continuing use, then the value of that
asset is required to be reclassified as a 'Non-current asset held for sale' and disclosed as such on the balance sheet within current
assets. At the time of reclassification, impairment charges still need to be made if applicable. 
    Cashflow
    In accordance with IAS 7 the cashflow statement has been represented. Transition to IFRS has no material impact on the cash flows of the
Group.
    Joint venture accounting
    In accordance with IAS 31 from transition date, 1 July 2006, the Group accounts for its interest in a joint venture using the
proportionate consolidation method.
    Investment Properties
    The properties held by John Street Developments Limited were previously classified as investment properties under UK GAAP. However as
those properties are held for development and sale in the ordinary course of John Street Development Limited's business, they do not meet
the definition of investment properties contained in IAS 40. These properties were acquired by the Group in the year ended 30 June 2007, and
therefore have been reclassified as inventory at that date.

    The reconciliation of the consolidated income statement between UK GAAP and IFRSs for the year ended 30 June 2007 is included below:
                                    UK GAAP   IAS 31  IAS 38  IFRS 3     IFRSs
                                    30 June                           30 June 
                                       2007                               2007
                                       £000     £000    £000    £000      £000
 Revenue                             38,932    6,835       -       -   45,767 
 Cost of sales                     (26,105)  (4,999)       -       -  (31,104)
 Gross profit                        12,827    1,836       -       -    14,663
 Administrative costs              (12,826)     (52)      30      21  (12,827)
 Other operating income                 466        -       -       -       466
                                   (12,360)     (52)      30      21  (12,361)
 Operating profit/(loss) before
 promotion
 bonuses,amortisation and
 impairment of cost 
 of players' registrations and
 cost of terminating 
 player's contracts                   6,269    1,784       -      21     8,074

   Amortisation and impairment of
                         cost of 
           players' registrations   (4,852)        -      30       -   (4,822)
     Cost of terminating players'     (950)        -       -       -     (950)
                        contracts
 Operating profit/(loss)                467    1,784      30      21     2,302
 Share of operating profit in         1,784  (1,784)       -       -         -
 joint venture
 Profit on disposal of players          691        -    (30)       -       661
 registrations'
 Profit on disposal of tangible          27        -       -       -        27
 fixed assets
 Operating profit before finance      2,969        -       -      21     2,990
 costs
 Finance costs                      (2,582)        -    (82)       -   (2,664)
 Profit before tax                      387        -    (82)      21       326
 Income tax expense                     (9)        -       -       -       (9)
 Profit for the period                  378        -    (82)      21       317
 Attributable to:
 Equity holders of the parent           535        -    (82)      21       474
 Minority interest                    (157)        -       -       -     (157)
                                        378        -    (82)      21       317

    The translated IFRS income statement at 30 June 2007 differs from that shown in the consolidated income statement as no adjustment has
been made in the translated income statement for the discontinued operation.


    The reconciliation of equity as at 1 July 2006 (IFRS) and UK GAAP is included below:
                                 UK GAAP   IAS 31   IAS 38  IFRS 5   IFRS 3     IFRSs
                 as reported 30 June 2006                                    30 June 2006
                                     £000     £000    £000     £000    £000          £000
 ASSETS
 Non-current assets
 Property, plant and equipment     31,264        -       -        -       -        31,264
 Goodwill                             134        -       -        -    (11)           123
 Other intangible assets            6,164        -   (101)  (1,150)       -         4,913
 Investment in joint venture        1,647  (1,647)       -        -       -             -
                                   39,209  (1,647)   (101)  (1,150)    (11)        36,300
 Current assets
 Inventories                          326    8,810       -        -       -        9,136 
 Trade and other receivables        6,756  (3,862)       -        -       -        2,894 
 Cash and cash equivalents            600        -       -        -       -          600 
                                    7,682    4,948       -        -       -        12,630
 Non-current assets classified          -        -       -    1,150       -        1,150 
 as held for sale
                                    7,682    4,948       -    1,150       -        13,780
 Total assets                      46,891    3,301   (101)        -    (11)        50,080
 LIABILITIES
 Current liabilities
 Trade and other payables         (9,933)    (380)     100        -       -      (10,213)
 Short-term borrowings            (1,664)  (2,502)       -        -       -       (4,166)
 Current portion of long-term        (26)        -       -        -       -          (26)
 borrowings
 Current portion of deferred      (5,831)        -       -        -       -       (5,831)
 income
 Current tax payable                    -    (157)       -        -       -         (157)
                                 (17,454)  (3,039)     100        -       -      (20,393)
 Non-current liabilities
 Other creditors                    (147)    (262)       -        -       -         (409)
 Long-term borrowing             (13,706)        -       -        -       -      (13,706)
 Long-term deferred income        (4,486)        -       -        -       -       (4,486)
                                 (18,339)    (262)       -        -       -      (18,601)
 Total liabilities               (35,793)  (3,301)     100        -       -      (38,994)
 Net assets                       11,098         -     (1)        -    (11)       11,086 

 EQUITY
 Equity attributable to equity
 holders of the parent 
 Share capital                     21,184        -       -        -       -       21,184 
 Share premium account             16,803        -       -        -       -       16,803 
 Merger reserve                     3,018        -       -        -       -        3,018 
 Retained earnings               (29,903)        -     (1)        -    (11)      (29,915)
                                   11,102        -     (1)        -    (11)        11,090
 Minority interest                    (4)        -       -        -       -           (4)
 Total equity                      11,098        -     (1)        -    (11)        11,086


    The reconciliation of equity as at 30 June 2007 (IFRS) and UK GAAP is included below:
                                  UK GAAP    IAS 31  IAS 38   IAS 40  IFRS 3         IFRSs
                 as reported 30 June 2007                                     30 June 2007
                                     £000      £000    £000     £000    £000          £000
 ASSETS
 Non-current assets
 Property, plant and equipment     37,013         -       -  (2,965)       -        34,048
 Goodwill                             197         -       -        -      10           207
 Other intangible assets           11,254         -    (71)        -       -        11,183
 Investment in joint venture        1,697   (1,697)       -        -       -             -
                                   50,161   (1,697)    (71)  (2,965)      10        45,438
 Current assets
 Inventories                          358    21,324       -    2,965       -        24,647
 Trade and other receivables        7,712   (3,927)    (19)        -       -         3,766
 Current tax receivable               705     (499)       -        -       -           206
 Cash and cash equivalents          3,610       231       -        -       -         3,841
                                   12,385    17,129    (19)    2,965       -        32,460
 Total assets                      62,546    15,432    (90)        -      10        77,898
 LIABILITIES
 Current liabilities
 Trade and other payables         (8,202)     (690)       7        -       -       (8,885)
 Short-term borrowings                  -  (14,742)       -        -       -      (14,742)
 Current portion of long-term     (8,204)         -       -        -       -       (8,204)
 borrowings
 Current portion of deferred      (4,641)         -       -        -       -       (4,641)
 income
                                 (21,047)  (15,432)       7        -       -      (36,472)
 Non-current liabilities
 Other payables                     (120)         -       -        -       -         (120)
 Long-term borrowing             (15,657)         -       -        -       -      (15,657)
 Long-term deferred income        (4,373)         -       -        -       -       (4,373)
                                 (20,150)         -       -        -       -      (20,150)
 Total liabilities               (41,197)  (15,432)       7        -       -      (56,622)
 Net assets                        21,349         -    (83)        -      10        21,276
 EQUITY
 Equity attributable to equity
 holders of the parent
 Share capital                     27,851         -       -        -       -        27,851
 Share premium account             20,019         -       -        -       -        20,019
 Merger reserve                     3,018         -       -        -       -         3,018
 Translation reserve                 (10)         -       -        -       -          (10)
 Retained earnings               (29,368)         -    (83)        -      10      (29,441)
                                   21,510         -    (83)        -      10        21,437
 Minority Interest                  (161)         -       -        -       -         (161)

 Total equity                      21,349         -    (83)        -      10        21,276























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