We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Sheffield Utd | LSE:SUT | London | Ordinary Share | GB0002181484 | ORD 10P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 6.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:9861Q Sheffield United PLC 28 March 2008 28 March 2008 Embargoed 0700hrs Sheffield United plc Interim results Sheffield United plc ('Sheffield United' or 'the Company') (AIM: SUT), the football, property and leisure services business, announces interim results for the six months ended 31 December 2007. Financial Highlights * Operating profit before interest of £1.3 million (2006: £2.6 million) * Retained loss of £0.1 million (2006: Profit £1.3 million) * Turnover of £17.1 million (2006: £25.9 million) * Repayment of £7.3 million bank debt during the period * A "stand alone" £13.5 million facility obtained from HBOS plc to finance the construction of the Copthorne Hotel, Sheffield * Significant advancement of leisure division with Thames Club increasing its turnover by 14% during the period to £0.8 million (2006: £0.7 million) * Increase in turnover of 19% for non-match day and events activities Operational Highlights * Best supported club in the Championship. * Average crowd for the season so far of 25,002 (2006: 30,325). * Over 19,000 season ticket holders * Successful implementation of an automated entrance system at Bramall Lane * Third gymnasium in Crookes opened alongside a "junior community development centre" * Construction of the 158 bed, four star Sheffield Copthorne Hotel at Bramall Lane progressing well * Chengdu Blades promoted to the Chinese Super League during the period Commenting, Kevin McCabe, Chairman of Sheffield United, said: "The development of the Blades as a leisure, services and property company with an international portfolio of football brands at its core has progressed, despite the temporary setback of our current Championship league position. "The strategy for the business has concentrated on growing non-match income which is not directly dependent on success on the field. Our Leisure division has advanced significantly over the year, with Thames Club increasing its turnover in the first half of the year to £0.8 million from £0.7 million. This is the result of much hard work and excellent marketing to increase the membership level". He added: "Having strengthened commercial management we now look to restructure the way we manage our football operations. The re-shaping of the Football Executive is fundamental in producing a successful first team squad worthy of the best supported team in the Championship. Our international activities should add value to the company within the near future with potentially three sister teams operating at high levels in their respective leagues. Our primary objective remains to return to the top echelon of football as soon as possible. We intend to sensibly invest in both the salary level and squad quality to enable us to maximise our chances of an early return to the Premier League." For further information: Sheffield United plc: 0870 787 1960 Kevin McCabe, Chairman Jason Rockett, Chief Executive Simon Capper, Chief Financial Officer KBC Peel Hunt Ltd 020 7418 8900 Nick Maslen Tavistock Communications: 020 7920 3150 Jeremy Carey Andrew Dunn Chairman's Statement I introduce my statement by advising that this set of interim results is the first produced under International Financial Reporting Standards ("IFRS") as required by the rules of AIM. A full reconciliation to the UK GAAP results previously reported has been provided and I trust the effects of the transition are satisfactorily explained. The results to 31 December 2007 demonstrate that despite relegation from the Premier League, our business continues to grow in most areas and illustrates increasing international activities. The operating profit before interest has fallen to £1.3 million (2006: £2.6 million) and a retained loss of £0.1 million incurred (2006: Profit £1.3 million). Turnover held up well, with a reduction to £17.1 million from £25.9 million relating mainly to a decrease in television revenues in the current season. FOOTBALL: FIRST TEAM AND YOUTH ACADEMY As this report is produced Sheffield United FC are mid table in the Championship. Whilst another season in this division appears likely the Blades have not given up on the opportunity of reaching the play-offs. We are however focusing on reshaping our management team and first team squad with the intention of mounting a promotion challenge in 2008/9 if success eludes us this season. The recent appointment of Kevin Blackwell as first team manager until 30th June 2008 is intended to allow the club time to reorganise to meet with current best practice. Kevin has made an excellent start on his return to Bramall Lane and demonstrated first class managerial experience and motivational qualities. Our sincere thanks go to Bryan Robson and Brian Kidd for the efforts they applied whilst at Sheffield United FC. The Club's performance in the Carling Cup and the FA Cup sponsored by EON was encouraging. In both we performed well against Premier League teams in televised fixtures winning two, drawing one and losing two of these encounters. The defeat to Middlesbrough FC in the replayed 5th round of the FA Cup in extra time being in the most unfortunate of circumstances. The Cup runs have generated both optimism and additional revenue and remind us that these competitions still play a major role in the overall success of a club. We have traded players in the year, amongst others being the sales of Phil Jagielka, Mikele Leigertwood, Christian Nade and Ahmed Fathi in the summer transfer window partly assisting the financing and purchase of James Beattie, Gary Naysmith, Billy Sharp, Lee Hendrie, David Carney and others. Further strengthening through the acquisition of Gary Speed and Ugo Ehiogu was undertaken in the January transfer window together with the use of the loan system to improve the squad when required. Funds from players sales have been reinvested in the squad. Our overseas player development programme has produced new and exciting links. Sheffield United is part of a consortium recently announced as preferred bidder for Ferencvaros FC, historically the most successful club in Hungary. We are moving to complete this transaction as soon as practicable. It is intended to strengthen the Ferencvaros squad by the loaning of certain Ivorian players previously at Chengdu, where they contributed to the promotion of the Blades to the Super League in China. Additionally our West Indian players currently at Royal White Star Woluwe FC in Belgium, may be relocated to Budapest. Also we are in the final stages of concluding an agreement with Sao Paulo FC to secure young players to develop within the European League systems and have already taken our first player from Inter Milan on loan with us to the end of this season. FOOTBALL: COMMERCIAL The crowds at Bramall Lane so far this season have averaged 25,002 (2006: 30,325) making us proudly the best supported club in the Championship. With over 19,000 season ticket holders the fans have managed to maintain the intensity of support on many occasions and it is clear the team perform better when the crowd are fully behind them. To retain this level of support for next year we are in some cases lowering prices of season tickets and for every adult renewal an under 12's season ticket will be free as the club acknowledge the importance of our fans to achieve success. The implementation of the automated entrance system has been positive and as we exploit its potential it should remove the requirement for most regular visitors to the Lane to have paper tickets. Sponsorship, match day hospitality and merchandising sales fell slightly in the present year, but proactive management has led to profitability in some areas being enhanced. The improved website has increased revenue from merchandising and we are planning to open a number of new outlets in South Yorkshire within the stores of a major retailer. EVENTS AND LEISURE The business strategy has concentrated on growing non-match day income which is not directly dependent on success on the field. Our Leisure division has advanced significantly over the year, with Thames Club, Staines increasing its turnover in the first half of the year to £0.8 million from £0.7 million. This is the result of much hard work and excellent marketing to increase membership levels. We have recently opened our third gymnasium at Crookes, along with a Junior Development Centre with football pitches and other indoor and outdoor facilities. This is expected to make a significant contribution to the local community. The venue will be christened the "Derek Dooley Community Centre" in recognition of the role Derek played for many decades in support of United and indeed the City of Sheffield. Construction of the Sheffield Copthorne Hotel at Bramall Lane, our 158 bed, four star hotel is progressing well. The project is currently on budget with completion scheduled for Autumn 2008. As part of our commitment to the community we will be focussing job recruitment as much as possible within our local area as the hotel will play a significant part in the continued regeneration of Sharrow. The plans for the hotel include a further gym to be operated by the club. Our catering division has performed admirably in the first 6 months of the year. Concourse outlets were secured back from contractors and this has proved a success both from the point of view of improved quality of services to fans and the generation of a larger revenue contribution than previous. Our non-match day and events activities have prospered, with an improvement in turnover of some 19%. PROPERTY The recent turmoil on the financial markets has led to a more challenging environment for commercial property. Our view however is that this represents an opportunity to maximise rental yields from the joint venture with Scarborough Group Ltd. This change of market has led to a reduction in the share of profit before interest from Blades Realty Ltd (previously christened United Scarborough Estates Ltd) to £0.5 million in the first 6 months of the year (2006: £1.2 million) as opportunities to trade have reduced. We recently finalised useful lettings and expect returns to improve again once the investment market recovers. At and around the vicinity of Bramall Lane we are developing exciting planning applications to be submitted in the near future for an extension to the Kop, along with associated residential developments. This should provide a further 3,500 seats and around 20,000 sq. ft of office space. The feasibility of an additional serviced office building on the corner between the Fraser Kop and the Valad Stand is being considered. When completed this will, along with our longer term plans to redevelop the Valad Stand, confirm the position of Bramall Lane as the best stadium in Yorkshire and a potential venue for England's 2018 World Cup bid. A planning submission for properties purchased by the club in the John Street area and close to the Stadium is also being finalised. The rental income from these properties has been increased by astute management of the tenants and thus revenue adequately covers financing costs and the like. Blades Enterprise Centre has enjoyed its best ever first 6 months, with occupancies running high. As part of our community duties we provided emergency office space to several Sheffield based businesses affected by the 2007 summer floods until they were able to return to their permanent venues. INTERNATIONAL The promotion of the Chengdu Blades to the Chinese Super League in 2007 was a significant achievement and Sheffield United continues to work in close co-ordination with our colleagues in Chengdu to maximise the chances of success in the Super League. A number of Chinese under 21 internationals have been signed in their transfer window and the outstanding group of junior players from the Chengdu Academy are now starting to break into the first team. Wang Song, captain of the team, has been capped at full international level and is part of the 2008 squad for the East Asian Cup. We look forward to a challenging season in the Super League. With the advancement in China recognised, the Club's potential acquisition of Ferencvaros FC is an exciting prospect. As part of a consortium with Esplanade Real Estates Ltd (a member of Scarborough Group Ltd) it is intended that Sheffield United FC acquire the majority share capital of the Hungarian football club, who in turn will receive financial assistance in order to advance Ferencvaros FC in the first two years of ownership. Whilst much work needs to be done to restore Fradi to its former glory, the opportunity of combining the brands of Sheffield United with a major European club and Chengdu creates a portfolio of football brands for others to envy. COMMUNITY To build on the infrastructure investments made by the club at Bramall Lane, Shirecliffe and Crookes, the club is exploring opportunities to develop similar Junior Community Development venues around the South Yorkshire and North Derbyshire areas. With the launch of the "Sheffield United Initiative" we are investing additional resources in providing feedback to our communities. Initiatives such as "Kickz", "Fit for schools" and the like have proved a great success. The proposals for the construction of the a new three storey building at Shirecliffe, which will include a National skills academy, first teams facilities and a business centre are advancing well. Planning permission has now been obtained and consultation for Grant funding is ongoing with a final decision expected on both viability and construction costs before the end of the financial year. FINANCING As at 31 December 2007 net debt, excluding our share of independent joint venture borrowings has increased to £28.3 million (2006: £22.9 million). Bank debt associated with the football division alone amounts to some £8 million whilst the residue Bank debt relates to specific business transactions, including health clubs, hotel and property projects. There has been a repayment to Bank debt of £7.3 million in the period, replaced by a £10 million Loan from a subsidiary of Scarborough Group Ltd (a company chaired by myself and owned by the McCabe family). The funds from this Loan were also utilised to maintain our player salary budget at a similar amount to last season's Premier League levels. A "stand alone" £13.5 million facility has been procured from HBOS plc to fund the hotel, which is repayable in stages over an eighteen year period after the completion of its construction. Could I once again express my gratitude to HBOS plc for their continued support of Sheffield United's business objectives. We have a Bank which acts as a true partner working creatively with us as we attempt to bring prosperity on and off the field of play. PROSPECTS The development of the Blades as a leisure, services and property company with an international portfolio of football brands at its core has progressed, despite the temporary setback of our current Championship League position. The primary objective remains to return to the top echelon of English football as soon as possible. We intend to sensibly invest in the first team squad quality to enable us to maximise Sheffield United's chances of an early return to the Premier League. As previously announced, our Arbitration hearing seeking compensation from West Ham United FC in relation to the "Tevez affair" is scheduled to be held towards the end of June. I am unable to comment further due to the ongoing legal process. CONCLUSION Having strengthened commercial management we now look to restructure the way we manage our football operations. The re-shaping of the Football Executive is fundamental in producing a successful first team squad worthy of the best supported team in the Championship. Our ambition, to be a Premiership club competing in the higher reaches of that league remains unchanged. Our international activities should add value to the company within the near future, potentially three sister teams operating at high levels in their respective leagues. Sheffield United continue to be unique in world football - certainly a club "that's different from the rest". We are ever mindful of the problems affecting the global financial and corporate sectors. The United Kingdom is not immune from the clearly apparent economic downturn. At Sheffield United we acknowledge the need to adapt to changing financial conditions and thus are planning accordingly. Finally on behalf of the Board members of Sheffield United plc and Sheffield United FC, I pay tribute to Derek Dooley who sadly passed away on 5th March. Derek was not only a remarkable young footballer who played for our rivals Sheffield Wednesday during the early 1950's but also proved over many decades to be an exceptional man transgressing the supporter divides of the City of Sheffield uniquely uniting red and white with blue and white. Derek joined our club in 1974 serving in many capacities and in particular that of Chairman of Sheffield United FC. His loyalty and dedication were always to the fore and at all times his skills as an ambassador were of paramount importance particularly in those periods of turmoil. He is fondly remembered and indeed in recognition of the legacy left by Derek we will be renaming our Junior Development Centre at Crookes - an area that is well represented by Blades and Owls - as the "Derek Dooley Community Centre". Also in due course a statue of Derek alongside those of other Sheffield United legends, Jimmy Hagan and Joe Shaw, will adorn our south stand car park. His widow Sylvia is becoming an Honorary Member of Sheffield United FC as we keep a seat in the Directors Box available for her continued support at Bramall Lane. Up the Blades! Kevin McCabe 27 March 2008 INDEPENDENT REVIEW report to Sheffield United PLC Introduction We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2007 which comprises the condensed consolidated interim income statement, the condensed consolidated interim balance sheet, the condensed consolidated interim statement of recognised income and expense, the condensed consolidated interim cash flow statement and explanatory notes. We have read the other information contained in the interim report which comprises only the Chairman's statement and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. This report is made solely to the company in accordance with guidance contained in the International Standard on Review Engagements issued by the Auditing Practices Board (ISRE, UK and Ireland) 2410, "Review of Interim Financial Information performed by the Independent Auditor of the Entity". Our review work has been undertaken so that we might state to the company those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusion we have formed. Directors' responsibilities The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the AIM rules of the London Stock Exchange. As disclosed in note 1, the next annual financial statements of the group will be prepared in accordance with International Financial Reporting Standards as adopted by the European Union. This interim report has been prepared in accordance with the measurement and recognition principles of International Financial Reporting Standards and the requirements of IFRS 1 "First-time Adoption of International Financial Reporting Standards" relevant to interim reports. The accounting policies are consistent with those that the directors intend to use in the next annual financial statements. Our Responsibility Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. Scope of Review We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2007 is not prepared, in all material respects, in accordance with the measurement and recognition principles of International Financial Reporting Standards. GRANT THORNTON UK LLP REGISTERED AUDITOR CHARTERED ACCOUNTANTS SHEFFIELD 27 March 2008 Condensed consolidated interim income statement for the six months ended 31 December 2007 6 month 6 month 12 month ended ended ended 31.12.07 31.12.06 30.06.07 Unaudited Unaudited Unaudited £000 £000 £000 Revenue 17,105 25,898 45,767 Operating profit/(loss) before promotion bonuses, amortisation, impairment of costs of players' registrations, profit on disposal of non current assets and cost of terminating players' contracts (1,699) 5,440 8,074 Amortisation and impairment of costs of players' registrations (2,899) (2,920) (4,822) Termination payments (63) (35) (950) Profit on disposal of players' registrations 5,920 83 661 Profit on disposal of property, plant and equipment - - 27 ------------------------------- 1,259 2,568 2,990 ------------------------------- Operating profit before finance costs 1,259 2,568 2,990 Finance costs (1,683) (1,060) (2,664) (Loss)/profit before tax (424) 1,508 326 Income tax expense 348 (250) (9) (Loss)/profit for the period (76) 1,258 317 Attributable to: Equity holders of the parent 9 1,339 474 Minority interest (85) (81) (157) ------------------------------- (76) 1,258 317 ------------------------------- Earnings per share: Basic and diluted (loss)/ profit per share (pence) 0.003 0.595 0.224 Condensed consolidated interim balance sheet at 31 December 2007 31.12.07 31.12.06 30.06.07 Unaudited Unaudited Unaudited £000 £000 £000 ASSETS Non-current assets Property, plant and equipment 40,890 33,495 37,013 Goodwill 207 123 207 Other intangible assets 13,262 6,759 11,183 ------------------------------- 54,359 40,377 48,403 ------------------------------- Current assets Inventories 24,455 18,840 21,682 Trade and other receivables 12,759 11,714 9,483 Current tax receivable 267 - - Cash and cash equivalents - 8,755 3,610 ------------------------------- 37,481 39,309 34,775 ------------------------------- Non-current assets classified as held for sale and assets in disposal groups classified as held for sale - 1,150 - ------------------------------- 37,481 40,459 34,775 ------------------------------- Total assets 91,840 80,836 83,178 ------------------------------- LIABILITIES Current liabilities Trade and other payables (8,473) (7,397) (8,885) Short-term borrowings (34,943) (21,809) (14,742) Current portion of long-term borrowings (104) (12,281) (8,204) Current portion of deferred income (6,708) (8,296) (147) Current tax payable (180) (342) (499) --------------------------------- (50,408) (50,125) (32,477) --------------------------------- Non-current liabilities Long-term borrowing (15,695) (13,869) (20,558) Long-term deferred income (4,537) (4,523) (8,867) Financial derivatives (489) - - --------------------------------- (20,721) (18,392) (29,425) --------------------------------- Total liabilities (71,129) (68,517) (61,902) --------------------------------- Net assets 20,711 12,319 21,276 --------------------------------- EQUITY Equity attributable to equity holders of the parent Share capital 27,851 21,184 27,851 Share premium account 20,019 16,778 20,019 Merger reserve 3,018 3,018 3,018 Hedge reserve (489) - - Translation reserve (10) - (10) Retained earnings (29,432) (28,576) (29,441) --------------------------------- 20,957 12,404 21,437 --------------------------------- Minority interest (246) (85) (161) --------------------------------- Total equity 20,711 12,319 21,276 --------------------------------- Condensed consolidated interim statement of recognised income and expense for the six months ended 31 December 2007 6 month 6 month 12 month ended ended ended 31.12.07 31.12.06 30.06.07 Unaudited Unaudited Unaudited £000 £000 £000 Cash flow hedges: Gains/(losses) taken to equity (489) - - --------------------------------- Net income recognised directly in equity (489) - - (Loss)/profit for the period (76) 1,258 317 Total recognised income and expense for the period (565) 1,258 317 --------------------------------- Attributable to: Equity holders of the parent (480) 1,339 474 Minority interest (85) (81) (157) --------------------------------- (565) 1,258 317 ================================= Condensed consolidated interim cash flow statement for the six month ended 31 December 2007 6 months 6 months 12 months ended ended ended 31.12.07 31.12.06 30.06.07 Unaudited Unaudited Unaudited £000 £000 £000 Cash flows from operating activities (Loss)/profit after taxation (76) 1,258 317 Adjustments for: Depreciation 585 440 871 Amortisation of players' registrations 2,899 2,042 4,822 Impairment of players' registrations - 878 - Share in operating profit in joint venture (495) (1,216) (1,784) Profit on disposal of players' registrations (5,920) (83) (661) Profit on disposal of property, plant and equipment - - (27) Foreign exchange loss - - (10) Interest expense 1,683 1,060 2,664 Taxation expense recognised in income statement (348) 250 9 Increase in trade and other receivables (1,993) (4,479) (97) Increase in inventories (2,773) (242) (32) Increase/(decrease) in trade payables 1,953 (1,399) (2,676) Increase/(decrease) in deferred income 2,231 2,467 (1,348) --------------------------------- Cash generated from operations (2,254) 976 2,048 Interest paid (906) (546) (1,640) Interest element of finance lease payments (10) - (9) Net cash from operating activities (3,170) 430 399 --------------------------------- Cash flows from investing activities Purchase of subsidiary undertakings - - (84) Purchase of property, plant and equipment (4,200) (2,671) (3,861) Purchase of player registrations (8,065) (5,940) (14,254) Proceeds from sale of equipment - - 270 Proceeds from disposal of player registrations 7,581 132 2,194 Loan made to joint venture - (99) - --------------------------------- Net cash used in investing activities (4,684) (8,578) (15,735) --------------------------------- Cash flows from financing activities Proceeds from issue of share capital - - 10,000 Costs of issuing share capital - (25) (117) Proceeds from long term borrowing 10,608 16,922 11,705 Proceeds from grants - 35 35 Payment of finance lease liabilities (71) (8) (31) Payment of long term borrowing (7,316) (914) (3,246) --------------------------------- Net cash used in financing activities 3,221 16,010 18,346 --------------------------------- Net increase in cash and cash equivalents (4,633) 7,862 3,010 Cash and cash equivalents at the beginning of period 3,610 600 600 Cash and cash equivalents at the end of period (1,023) 8,462 3,610 Notes to accounts 1. Basis of preparation These interim condensed consolidated financial statements are for the six months ended 31 December 2007. They have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards and the requirements of IFRS 1 "First-time Adoption of International Financial Reporting Standards" relevant to interim reports, because they are part of the period covered by the Group's first IFRS financial statements for the year ended 30 June 2008. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2007. These financial statements have been prepared under the historical cost convention, except for revaluation of certain financial instruments. These condensed consolidated interim financial statements (the interim financial statements) have been prepared in accordance with the accounting policies set out below which are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) and are effective at 30 June 2008 or are expected to be adopted and effective at 30 June 2008 ("Adopted IFRSs"), our first annual reporting date at which we are required to use IFRS accounting standards adopted by the EU. Sheffield United plc's consolidated financial statements were prepared in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) until 30 June 2007. The date of transition to IFRS was 1 July 2006. The comparative figures in respect of December 2006 and June 2007 have been restated to reflect changes in accounting policies as a result of adoption of IFRS. The disclosures required by IFRS 1 concerning the transition from UK GAAP to IFRS are given in the reconciliation schedules, presented and explained in note 11. 2. Accounting policies The accounting policies set out below have, unless otherwise stated, been applied consistently for the Group to all periods presented in these condensed consolidated financial statements, and in preparing an opening IFRS balance sheet at 1 July 2006 for the purposes of the translation to IFRS. Transition to adopted IFRSs The Group statements have been prepared in accordance with Adopted IFRSs for the first time and has applied IFRS 1. An explanation of how the transition to Adopted IFRSs has affected the previously reported financial position, financial performance and cash flows 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: * Fair value as deemed cost: the Group has not taken the option to restate items of property, plant and equipment to their fair value at 1 July 2006. Instead the deemed cost under Adopted IFRSs will be the cost or revalued amount of each asset previously shown under UK GAAP. * Business combinations 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. * The Group has not taken advantage of the transitional provisions contained in IFRS 5 "Non-current Assets held for Sale and Discontinued Operations", and has applied this standard with effect from 1 July 2006. 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 it 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 of jointly controlled entities on 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, 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 as home matches are played. ii) Fixed elements of the FA Championship League Central broadcasting contracts and fixed elements of FA Premier League parachute payments are recognised over the period August to May in the relevant football season. The merit based payment in the 2006/2007 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, or over the period of the football season, as appropriate based on the terms of contract. Catering revenues are recognised on the date the services and goods are supplied to the customer. 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. 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. 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 fixed 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 'Assets 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 still need to be made if applicable. ii) Goodwill Goodwill arises on business combinations, representing the differences between the cost of acquisition and the fair value of assets acquired. 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. iii) Amortisation Amortisation is charged to profit or loss on a straight-line basis over the estimated useful lives of player registrations. 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. All other leases are operating leases, the rentals on which are charged to the income statement on a straight-line basis over the lease term. 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 Fixtures, 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 is 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 Inventories are stated at the lower of cost and net realisable value. Cost is based on the weighed 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. Inventories of property are stated at the lower of cost and net realisable value. Cash and cash equivalents Cash and cash equivalents compromise 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. In the Group's financial statements, all items and transactions of group entities with a functional currency other than Sterling were translated into Sterling upon consolidation. Assets and Liabilities have been translated into Sterling at the closing rate at the balance sheet dates. Income and expenses have been translated at the average rate over the reporting periods. Any differences arising have been 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 Company (or Group as the case may be) 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 Company (or 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. The finance cost on the financial liability component is correspondingly higher over the life of the instrument. Finance payments associated with financial liabilities are dealt with as part of finance expenses. Finance payments associated with financial instruments that are classified in equity are dividends and are recorded directly in equity. Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within its group, the Company considers these to be insurance arrangements and accounts for them as such. In this respect, the Company treats the guarantee contracts as a contingent liability until such time as it becomes probable that the Company will be required to make payment under the guarantee. Derivative financial instruments and hedging The Group uses derivative financial instruments to hedge its exposure to risks arising from operational, financing and investment activities. The only hedge at 31 December 2007 was an interest rate swap in respect of the borrowings for the construction of the hotel at Bramall Lane. In accordance with its treasury policy, the Group does not hold or issue derivative financial instruments for trading purposes. Derivative financial instruments are recognised at fair value. To the extent that the hedge is effective the gain or loss on remeasurement to fair value is reflected in equity within the hedging reserve. The fair value of forward exchange contracts is their quoted market price at the balance sheet date, being the present value of the quoted forward price. When a derivative financial instrument is used as an economic hedge of the foreign exchange exposure of a recognised monetary asset or liability, hedge accounting is not applied and any gain or loss on the hedging instrument is recognised in profit or loss. Interest-bearing borrowings Interest-bearing borrowings are recognised initially at fair value less attributable 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. For goodwill and intangible assets that are not yet available for use, the recoverable amount is estimated at each balance sheet date. 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. Goodwill and intangible assets that are not yet available for use were tested at 1 July 2006, the date of transition to Adopted IFRSs. Trade and other payables and receivables Trade and other payables and receivables on normal terms are stated at their nominal value, less, in the case of receivables, any impairment losses that may be required. 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. 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. Joint ventures Entities whose economic activities are controlled jointly by the group and by the other ventures (joint venture) are accounted for using the proportionate consolidation method. 3. Segment analysis The Group has five separately identifiable business segments. The revenues and operating profit/(loss) before promotion bonuses, amortisation and impairment of costs of players are summarised as follows: Revenue 6 months 6 months 6 months 6 months 12 months ended ended ended ended ended 31.12.07 31.12.07 31.12.07 31.12.06 30.06.07 Unaudited Unaudited Unaudited Unaudited Unaudited China UK Total Total Total £000 £000 £000 £000 £000 Football 346 14,682 15,028 19,451 36,350 Royalty and stewarding - 62 62 79 132 Business centre income - 471 471 420 853 Health club income - 819 819 735 1,550 Property ventures - 725 725 5,213 6,882 ----------------------------------------------------------- 346 16,759 17,105 25,898 45,767 ----------------------------------------------------------- Operating profit/(loss) before promotion bonuses, amortisation, impairment of costs of players' registrations and profit on disposal of non current assets 6 months 6 months 6 months 6 months 12 months ended ended ended ended ended 31.12.07 31.12.07 31.12.07 31.12.06 30.06.07 Unaudited Unaudited Unaudited Unaudited Unaudited China UK Total Total Total £000 £000 £000 £000 £000 Football (848) (1,826) (2,674) 3,966 5,561 Royalty and stewarding - 18 18 25 8 Business centre income - 190 190 136 376 Health club income - 217 217 97 310 Property ventures - 550 550 1,216 1,819 ----------------------------------------------------------- (848) (851) (1,699) 5,440 8,074 ----------------------------------------------------------- 4. During the six months ended 31 December 2007 the Group entered into an interest rate swap in relation to the £13.5 million loan obtained to finance the construction of the hotel. The Group has designated the hedge as a cashflow hedge. The hedge has a fixed interest rate of 4.99%, the value of the hedge amortises over the period to 2027, in accordance with the loan's repayment schedule. The Group recognised a liability of £488,500 in respect of the fair value of the interest rate hedge at 31 December 2007. This movement in the fair value has been recognised in the hedge reserve. 5. The Income Tax shown in the profit and loss account represents the Group's share of the joint venture tax charge and credit for Group losses relieved by consortium relief. No income tax liability arises in the rest of the Group during the six months ended 31 December 2007 due to the availability of losses brought forward. 6. Reconciliation of equity Share Share premium Merger Hedge Translation Retained Minority capital account reserve reserve reserve earnings Total interest Total Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited £000 £000 £000 £000 £000 £000 £000 £000 £000 Balance at 30 June 2006 21,184 16,803 3,018 - - (29,915) 11,090 (4) 11,086 Change in equity in the six months to 31 December 2006 Profit for the period - - - - - 1,339 1,339 (81) 1,258 ----------------------------------------------------------------------------------------------- Total recognised income and expense for the period - - - - - 1,339 1,339 (81) 1,258 Dividends Issue of share capital - (25) - - - - (25) - (25) ------------------------------------------------------------------------------------------------ Balance at 31 December 2006 21,184 16,778 3,018 - - (28,576) 12,404 (85) 12,319 =============================================================================================== Share Share premium Merger Hedge Translation Retained Minority capital account reserve reserve reserve earnings Total interest Total Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited £000 £000 £000 £000 £000 £000 £000 £000 £000 Balance at 30 June 2006 21,184 16,803 3,018 - - (29,915) 11,090 (4) 11,086 Change in equity in the year to 30 June 2007 Exchange differences on translation of foreign operations - - - - (10) - (10) - (10) Net income recognised directly in equity - - - - (10) - (10) - (10) Profit for the period - - - - - 474 474 (157) 317 ----------------------------------------------------------------------------------------------- Total recognised income and expense for the period - - - - (10) 474 464 (157) 307 Dividends Issue of share capital 6,667 3,216 - - - - 9,883 - 9,883 ----------------------------------------------------------------------------------------------- Balance at 30 June 2007 27,851 20,019 3,018 - (10) (29,441) 21,437 (161) 21,276 =============================================================================================== Share Share premium Merger Hedge Translation Retained Minority capital account reserve reserve reserve earnings Total interest Total Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited £000 £000 £000 £000 £000 £000 £000 £000 £000 Balance at 30 June 2007 27,851 20,019 3,018 - (10) (29,441) 21,437 (161) 21,276 Change in equity in the six months to 31 December 2007 Exchange differences on translation of foreign operations - - - - - - - - - Cash flow hedge: Loss taken to equity - - - (489) - - (489) - (489) Net income recognised directly in equity - - - (489) - - (489) - (489) Profit for the period - - - - - 9 9 (85) (76) ----------------------------------------------------------------------------------------------- Total recognised income and expense for the period - - - (489) - 9 (480) (85) (565) Dividends Issue of share capital - - - - - - - - - Balance at 31 ----------------------------------------------------------------------------------------------- December 2007 27,851 20,019 3,018 (489) (10) (29,432) 20,957 (246) 20,711 =============================================================================================== 7. The calculation of earnings/(loss) per share is based on the profit/(loss) on ordinary activities after tax divided by 278,508,014 shares (six months ended 31 December 2006: 211,841,348 and year ended 30 June 2007: 225,174,681), being the weighted average number of shares in issue during each period. 8. Post balance sheet events During January 2008 the Club purchased players for a total maximum consideration of £0.4 million and sold players for £1 million. On 13 February 2008 Esplanade Real Estate Kft, controlled by Kevin McCabe, Sheffield United's chairman, obtained preferred bidder status in a tender to redevelop the Hungarian football club Ferencvaros' stadium and its additional land interests. As part of the this deal the Group has entered into a co-operative agreement to acquire 100% of the share capital of FTC Labdarugo Zft. This company operates Ferencvaros football club. 9. The financial information for the six months ended 31 December 2007 and 31 December 2006 contained within this report is unaudited. The financial information for the year ended 30 June 2007, which does not constitute statutory accounts within the meaning of Section 240(5) of the Companies Act 1985, has been extracted from the statutory accounts of the Company for that period which have been delivered to the Registrar of Companies and restated for the impact of adoption of IFRSs as set out in note 11. 10. Copies of this report will be sent to shareholders and will be available from the Secretary, Sheffield United plc, Bramall Lane, Sheffield, S2 4SU. 11. Explanation of Transition to IFRSs As stated in the accounting policies in note 1, 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 six months ended 31 December 2007, and in the preparation of a comparative 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 £44,000 at 31 December 2006 and £7,000 at 30 June 2007. The increased interest is charged to finance costs over the deferral period and amounted to £56,000 for the six months ended 31 December 2006 and £82,000 for the twelve months ended 31 December 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 £86,000 at 31 December 2006 and a reduction of £71,000 at 30 June 2007. Operating profit for the six months to 31 December 2006 increased by £15,000. Operating profit for the year ended 30 June 2007 was unchanged. (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 is a reduction in the debtor of £19,000 at 30 June 2007. The net effect of the reduction in debtors at 31 December 2006 was not material and no adjustment has been made. The reduced interest is credited to finance costs over the deferral period and amounts to £11,000 for the six months ended 30 June 2007. Goodwill Under IRFS 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 has been reversed. Non - current assets held for resale 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 resale' 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. The Board of Directors has reviewed the squad at 31 December 2007 and concluded that no reclassification should be made under the provisions of IFRS 5. The players sold in the January 2008 had no net book value at 31 December 2007. The reclassification at 31 December 2006 was made in respect of the net book value of Paul Ifill and Ade Akinbiyi, both of whom were sold in the January 2007 transfer window. Cashflow In accordance with IAS 7 the cashflow statement has been represented. Joint venture accounting In accordance with IAS 31 from transition date, 1 July 2006, the Group will account for its interest in a joint venture using the proportionate consolidation method. Explanation of transition to IFRSs Group The reconciliation of the condensed consolidated income statement between UK GAAP and IFRSs for the six months ended 31 December 2006 is included below: UK GAAP IAS31 IAS 38 IFRS's 31 December 31 December 2006 2006 £000 £000 £000 £000 Revenue 25,898 - - 25,898 Operating profit before promotion bonuses, amortisation and impairment of cost of players' registrations and cost of terminating player's contracts 4,224 1,216 - 5,440 Amortisation and impairment of cost of players' registrations (2,935) - 15 (2,920) Cost of terminating players' contracts (35) - - (35) -------------------------------------- Operating profit 1,254 1,216 15 2,485 Share of operating profit in joint venture 1,216 (1,216) - - Profit on disposal of players' registrations 83 - - 83 -------------------------------------- Operating profit before finance costs 2,553 - 15 2,568 Finance costs (1,004) - (56) (1,060) Profit before tax 1,549 - (41) 1,508 Income tax expense (250) - - (250) -------------------------------------- Profit for the period 1,299 - (41) 1,258 -------------------------------------- Attributable to: Equity holders of the parent 1,380 - (41) 1,339 Minority interest (81) - - (81) -------------------------------------- 1,299 - (41) 1,258 The reconciliation of the condensed 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 IFRS's 3 30 June 30 June 2007 2007 £000 £000 £000 £000 £000 Revenue 45,767 - - - 45,767 ------------------------------------------- Operating profit/(loss) before promotion bonuses,amortisation and impairment of cost of players' registrations and cost of terminating players' 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' contracts (950) - - - (950) ------------------------------------------- Operating profit/( loss) 467 1,784 30 21 2,302 Share of operating profit in joint venture 1,784 (1,784) - - - Profit on disposal of players' registrations 691 - (30) - 661 Profit on disposal of tangible fixed assets 27 - - - 27 ------------------------------------------- Operating profit before finance costs 2,969 - - 21 2,990 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 Explanation of transition to IFRSs Group The reconciliation of equity as at 1 July 2006 (IFRS) and UK GAAP is included below: IFRS 5 UK GAAP Non-current as IAS 31 IAS 38 assets reported Joint Intangible held for IFRS 3 IFRS's 1 July 2006 ventures assets resale Goodwill 1 July 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 6,756 353 - - - 7,109 Cash and cash equivalents 600 - - - - 600 ------------------------------------------------------------------------- 7,682 9,163 - - - 16,845 ------------------------------------------------------------------------- Non-current assets classified as held for sale and assets in disposal groups classified as held for sale - - - 1,150 - 1,150 ------------------------------------------------------------------------- 7,682 9,163 - 1,150 - 17,995 ------------------------------------------------------------------------- Total assets 46,891 7,516 (101) - (11) 54,295 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 borrowings (26) - - - - (26) Current portion of deferred income (146) - - - - (146) Current tax payable - (157) - - - (157) ------------------------------------------------------------------------- (11,769) (3,039) 100 - - (14,708) Non-current liabilities Long-term borrowing (13,853) (4,477) - - - (18,330) Long-term deferred income (10,171) - - - - (10,171) ------------------------------------------------------------------------- (24,024) (4,477) - - - (28,501) Total liabilities (35,793) (7,516) 100 - - (43,209) 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 Translation reserve - - - - - - 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 ------------------------------------------------------------------------- Explanation of transition to IFRSs Group The reconciliation of equity as at 31 December 2006 (IFRS) and UK GAAP is included below: IFRS 5 UK GAAP Non-current as IAS 31 IAS 38 assets reported Joint Intangible held for IFRS 3 IFRS's 31 December 2006 ventures assets resale Goodwill 31 December 2006 £000 £000 £000 £000 £000 £000 ASSETS Non-current assets Property, plant and equipment 33,495 - - - - 33,495 Goodwill 134 - - - (11) 123 Other intangible assets 7,995 - (86) (1,150) - 6,759 Investment in joint venture: 2,230 (2,230) - - - - ----------------------------------------------------------------------------- 43,854 (2,230) (86) (1,150) (11) 40,377 ----------------------------------------------------------------------------- Current assets Inventories 568 18,272 - - - 18,840 Trade and other receivables 11,334 380 - - - 11,714 Cash and cash equivalents 8,462 293 - - - 8,755 ----------------------------------------------------------------------------- 20,364 18,945 - - - 39,309 Non-current assets classified as held for sale and assets in disposal groups classified as held for sale - - - 1,150 - 1,150 ----------------------------------------------------------------------------- 20,364 18,945 - 1,150 - 40,459 ----------------------------------------------------------------------------- Total assets 64,218 16,715 (86) - (11) 80,836 LIABILITIES Current liabilities Trade and other payables (7,497) 56 44 - - (7,397) Short-term borrowings (10,001) (11,808) - - - (21,809) Current portion of long-term borrowings (12,281) - - - - (12,281) Current portion of deferred income (8,296) - - - - (8,296) Current tax payable - (342) - - - (342) ----------------------------------------------------------------------------- (38,075) (12,094) 44 - - (50,125) Non-current liabilities Long-term borrowing (9,248) (4,621) - - - (13,869) Long-term deferred income (4,523) - - - - (4,523) ----------------------------------------------------------------------------- (13,771) (4,621) - - - (18,392) Total liabilities (51,846) (16,715) 44 - - (68,517) Net assets 12,372 - (42) - (11) 12,319 ----------------------------------------------------------------------------- EQUITY Equity attributable to equity holders of the parent Share capital 21,184 - - - - 21,184 Share premium account 16,778 - - - - 16,778 Merger reserve 3,018 - - - - 3,018 Translation reserve - - - - - - Retained earnings (28,523) - (42) - (11) (28,576) ----------------------------------------------------------------------------- 12,457 - (42) - (11) 12,404 Minority interest (85) - - - - (85) ----------------------------------------------------------------------------- Total equity 12,372 - (42) - (11) 12,319 ----------------------------------------------------------------------------- Explanation of transition to IFRSs Group The reconciliation of equity as at 30 June 2007 (IFRS) and UK GAAP is included below: IFRS 5 UK GAAP Non-current as IAS 31 IAS 38 assets reported Joint Intangible held for IFRS 3 IFRS's 30 June 2007 ventures assets resale Goodwill 30 June 2007 £000 £000 £000 £000 £000 £000 ASSETS Non-current assets Property, plant and equipment 37,013 - - - - 37,013 Goodwill 197 - - - 10 207 Other intangible assets 11,254 - (71) - - 1,183 Investment in joint venture: 1,697 (1,697) - - - - ------------------------------------------------------------------------- 50,161 (1,697) (71) - 10 48,403 ------------------------------------------------------------------------- Current assets Inventories 358 21,324 - - - 21,682 Trade and other receivables 8,417 1,085 (19) - - 9,483 Cash and cash equivalents 3,610 - - - - 3,610 ------------------------------------------------------------------------- 12,385 22,409 (19) - - 34,775 Total assets 62,546 20,712 (90) - 10 83,178 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 borrowings (8,204) - - - - (8,204) Current portion of deferred income (147) - - - - (147) Current tax payable - (499) - - - (499) ------------------------------------------------------------------------- (16,553) (15,931) 7 - - (32,477) Non-current liabilities Long-term borrowing (15,777) (4,781) - - - (20,558) Long-term deferred income (8,867) - - - - (8,867) ------------------------------------------------------------------------- (24,644) (4,781) - - - (29,425) Total liabilities (41,197) (20,712) 7 - - (61,902) 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 accounts 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 ------------------------------------------------------------------------- This information is provided by RNS The company news service from the London Stock Exchange END IR KDLFLVXBBBBB
1 Year Sheffield United Chart |
1 Month Sheffield United Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions