Charlton Athletic - Interim Results 1999
April 13 2000 - 2:30AM
UK Regulatory
RNS Number:0143J
Charlton Athletic PLC
13 April 2000
Charlton Athletic plc ("Charlton" or the "Company")
Results for the six months ended 31 December 1999
Chairman's Statement
OVERVIEW
In the annual report and accounts for 1999 I stated that the
board's key objective was to reclaim FA Premier League status
at the earliest possible opportunity. As I write, the team
is 11 points clear at the top of the Nationwide League
Division One with an outstanding chance of meeting that
objective.
During the summer, we strengthened the first-team squad in
preparation for our promotion bid. We have all seen the
attractive way in which the team has played this season and
as well as being among the top scorers in the division, we
have the best away record in the country.
Most home games this season have again been played to
capacity home crowds at The Valley and the support given to
the team has been exceptional. The club has nearly 16,000
season tickets for this season, which has once again
justified the board's strategy of affordable prices.
I am delighted to announce that the average home crowd this
season to date is 19,480 which is 97% of ground capacity,
compared with an average gate of 13,275 for the 1997/98
season, our last in the First Division.
FINANCIAL REPORT
Turnover for the six months was #5.9m (1998: #8.1m) and
was #2.5m in 1997, the last season the club played in
division one of the Football League. The increase in
turnover between 1997 and 1999 illustrates the growth of the
underlying business through the last three years. Relegation
last season saw a fall in television revenues and commercial
and ticket receipts.
Central revenues from the FA Premier League and the
Football League were #1.9m (1998: #3.6m).
Operating losses after interest charges and depreciation
were #1.7m (1998: profit #2.0m). This was mainly
attributable to the retained level of players' wages and the
fall in turnover.
Transfer account profits were #2.8m following the sales
of Mills, Redfearn and Jones, and including compensation
received following Defoe's move to West Ham United.
Amortisation charges for the six months were #839,000.
The net profit recorded for the period was #1.0m (1998:
#1.4m).
Net interest charges were #59,000 (1998 #81,000).
Net assets of the group have risen to #17.7m from #16.4m
at 30 June 1999.
The insurance value of the first-team squad currently
exceeds #21m.
In February 2000, the company issued 7,000,000 shares,
raising funds of #3.5m to be used principally for funding the
costs associated with the development of the first-team
squad.
FOOTBALL
The team currently sits proudly at the top of the Nationwide
League, a position it has occupied since January 11th. Alan
Curbishley has strengthened the first-team squad since last
season with the acquisitions of Dean Kiely, Greg Shields,
John Salako, Andy Todd and Mathias Svensson at a total cost
of #3.5 million. The quality of the squad is now the best
for many years, with a number of international players and
genuine competition for all positions in the first team.
A club record was established when the team achieved 12
consecutive League victories in a run stretching from 26th
December 1999 to 7th March 2000.
The team reached the quarter-finals of the FA Cup competition
losing narrowly to Bolton Wanderers 1-0 at the Reebok
Stadium, this despite magnificent backing from 4,000
supporters who travelled to see the game. A further 5,600
fans watched this match on a giant screen erected on the
pitch at The Valley.
The benefits of our collaboration with Internazionale of
Milan have become apparent in the last few months, with four
of our most promising players from the Under 15 squad
spending a week training in Milan. A group of youth players
from Internazionale are to visit us in June to train with our
Under 17 squad and a programme of community projects
involving children drawn from districts local to both clubs
has been drawn up. The benefits for the first-team squad
from the arrangement may be seen during the summer, with the
potential for Internazionale players to sign for the Club
next season. Lastly we have now initiated discussions on
joint commercial ventures that will be of benefit to both
clubs.
The development of the training ground complex at Sparrows
Lane has continued and it is our intention to create one of
the finest training centres in professional football, housing
the first team squad and the FA Youth Academy. The academy,
opened in 1998, continues to flourish and we are currently
looking at the various options for the construction of a new
indoor sports hall, which will enable us to retain our
academy status by the deadline set by the Football
Association of July 2001. The new sports hall is anticipated
to cost in the region of #2.5m.
OUTLOOK
In December 1999 our planning application for an additional
6,000 seats at the north end of the ground was approved,
giving us the opportunity to increase the capacity of The
Valley to approximately 26,000. The board is currently
considering the appropriate timing for a commitment to this
significant project and there is no doubt there is
considerable demand to utilise this increased capacity in the
FA Premier League.
The new television deal currently being tendered by the FA
Premier League for seasons 2001 to 2004 looks set to provide
significant additional revenues for the clubs involved.
Regaining our FA Premier League status would give a major
boost to the ongoing development of the club.
We are very proud of the excellent reputation we have earned
for rebuilding Charlton Athletic in a financially responsible
manner, whilst at the same time retaining the unique culture
and strong community links which the club enjoys.
Success on the pitch will enable us to exploit the many new
commercial opportunities now open to us, further enhancing
the Charlton Athletic brand. With the continuing commitment
of everyone connected with the club, including our
supporters, we feel confident about the future of this great
club.
Richard Alan Murray
Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 31 December 1999
Unaudited Half Year to Audited
31 December year to 30
June
1999 1998 1999
# 000 # 000 # 000
TURNOVER 5,854 8,065 16,274
---------- ---------- ----------
Costs of sales (751) (1,101) (2,162)
Administrative (1,952) (1,420) (1,354)
expenses
Player and match (4,894) (3,494) (9,774)
expenses
---------- ---------- ----------
(7,597) (6,015) (13,290)
PROFIT/(LOSS) ON
OPERATIONS BEFORE (1,743) 2,050 2,984
PLAYER TRANSFER FEES
Net transfer account 2,815 (546) (1,590)
---------- ---------- ----------
PROFIT/(LOSS) ON TOTAL
OPERATIONS 1,072 1,504 1,394
Financing charges (59) (81) (145)
---------- ---------- ----------
PROFIT/(LOSS) ON
ORDINARY ACTIVITIES 1,013 1,423 1,249
Taxation charges 0 0 0
---------- ---------- ----------
PROFIT/(LOSS) FOR THE
FINANCIAL PERIOD 1,013 1,423 1,249
========== ========== ==========
EARNINGS PER SHARE 2.85p 4.88p 3.87p
========== ========== ==========
CONSOLIDATED BALANCE SHEET
at 31 December 1999
Unaudited Half Year to Audited
31 December year to 30
June
1999 1998 1999
# 000 # 000 # 000
TANGIBLE FIXED ASSETS 21,812 21,105 21,761
INTANGIBLE ASSETS 5,092 3,883 5,328
--------- ---------- ----------
-
26,904 24,988 27,089
CURRENT ASSETS
Stocks 208 203 163
Debtors 4,437 3,000 2,241
Cash at bank and in hand 43 1,817 529
--------- ---------- ----------
-
TOTAL ASSETS 31,592 30,008 30,022
Creditors falling due
within one year and (7,255) (9,797) (6,753)
deferred income
--------- ---------- ----------
-
Total assets less
current liabilities 24,337 20,211 23,269
Creditors falling due
after one year (2,329) (33) (2,346)
Deferred income (4,252) (3,745) (4,315)
--------- ---------- ----------
-
17,756 16,433 16,608
========= ========== ==========
=
CAPITAL AND RESERVES
Called up share capital 17,829 17,694 17,694
Share premium account 1,671 1,703 1,671
Revaluation reserve 2,975 2,595 2,975
Profit and loss account (4,719) (5,559) (5,732)
--------- ---------- ----------
-
17,756 16,433 16,608
========= ========== ==========
=
NOTES:
1. The financial statements combine the results of Charlton
Athletic plc and it's two subsidiaries, Charlton Athletic
Football Company (1984) Limited and Charlton Athletic
Holdings Limited. The financial statements have been prepared
in accordance with applicable accounting standards and under
the historical cost convention, as modified by the
revaluation of freehold properties.
The financial information contained in this interim
statement does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985. The
financial information for the year ended 30 June 1999 is
an abridged version of the group's published financial
statements for that year which contained an unqualified
audit report and which have been filed with the
Registrar of Companies. The audit report contained no
statement under section 237 (2) of (3) of the Act.
2. Turnover represents receipts from matches played, the FA
Premier League Limited, the Football League Limited and the
Football Association Limited, and other revenues generated
from the commercial activities associated with a professional
football club. These are all stated net of value added
taxation.
3. Grants received from the Football Trust in respect of
safety work and ground improvement are carried in the balance
sheet as deferred income and released to the profit and loss
account over the life of the assets to which they relate.
4. Tangible fixed assets are written down over their
estimated useful lives. In accordance with FRS 15
depreciation is now charged on freehold buildings at 2% per
annum.
5. The costs of player's registrations are capitalised and
then amortised over the period of the respective player's
contracts. These amortisation charges are evenly recorded
through out the period.
6. Signing on fees are recognised in the profit and loss
account evenly over the period covered by the player's
contract.
7. There is no liability for taxation arising in the period
due to trading losses brought forward.
8. The company has no recognised gains or losses other than
the profit shown for the financial period.
9. The calculation of earnings per share is based on the
profit after taxation for the six month period and on the
weighted average of 35,616,035 shares in issue during this
period (1998: 29,155,912).
10. The directors are aware of the ongoing issues that may
arise from data aware microchip based equipment. The
directors have considered the implications of these issues
and are satisfied that there will be no significant impact on
the operations of the group, and that any future costs
related to this will not be material.
11. Copies of this statement are being sent to shareholders
and are available for at least fourteen days from the Company
Secretary, Charlton Athletic plc, The Valley, Floyd Road,
London, SE7 8BL.
END
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