RNS Number:7370T
Charlton Athletic PLC
28 March 2002
CHARLTON ATHLETIC PLC
28 March 2002
CHARLTON ATHLETIC PLC ("Charlton" or the "Company")
INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 DECEMBER 2001
Financial Highlights
The key elements are recorded below and demonstrate that the growth of the
business continues.
6 months to 31 December 6 months to 31 December
2001 2000
(£ million) (£ million)
Turnover 15.0 11.9
FA Premier League revenues 8.3 6.0
Operating Profit/(Loss)
Before player amortisation 0.25 0.01
Player amortisation 3.2 1.8
Investment in players 8.5 8.7
Players sales 1.5 0.1
Profit (Loss) before tax (1.6) (1.6)
Insurance value of the squad 46.0 38.0
Net assets 22.7 22.3
Earnings (Loss) per share (pence) (2.90) (3.13)
The Chairman, Richard Murray said,
"We invested some £8.5 million in the first team squad at the start of the
season, with the potential for that figure to rise to £9.25 million. This level
of investment has resulted in the loss we are announcing today.
We will continue to build Charlton in a financially responsible manner and I
remain very confident about the future of our club."
Enquiries:
Richard Murray, Chairman
Peter Varney, Group chief executive
Nigel Capelin, Deputy group chief executive
020 8333 4000
CHAIRMAN'S STATEMENT
Introduction
I am pleased to announce the group's financial results for the six months to
31st December 2001. The group made a small operating profit of £250,000 before
player amortisation, but after amortisation, the profits from player disposals
and interest charges, there was a loss of £1.6m for the period. Your board has
continued to strengthen the playing squad with expenditure of £8.5m for player
acquisitions and loan player fees.
Achievements
At the start of the current financial period we set ourselves three clear
objectives:
(a) to secure our Premiership status at the earliest possible
opportunity;
(b) the completion of the £10m development of the new north stand at
The Valley, and
(c) further development of the commercial infrastructure of the group.
Our expenditure for this season's campaign on player purchases and loan player
fees excludes £3.2m spent at the end of the previous financial period on Shaun
Bartlett and Radostin Kishishev. In this period we have purchased Luke Young
and Jason Euell for initial fees totalling £8m and rising to a maximum of
£9.25m. This has been partially offset by receipts relating to players
previously sold and the proceeds from the sale of Shaun Newton to Wolverhampton
Wanderers, which in aggregate totalled £1.5m.
To date we have matched our achievements of last season, our first back in the
Premiership and following the away victory over Tottenham Hotspur on 17th March,
the club had amassed 41 points, which is generally regarded by most observers as
sufficient to retain Premiership status.
Our development of the north stand will be completed in April 2002. Since the
start of the current season, we have promoted the club throughout London and
Kent in a series of innovative marketing campaigns. This coupled with our
affordable pricing strategy has resulted in the number of season ticket holders
increasing from 18,000 to nearly 22,000 and in addition more than 2,000
supporters have joined our new membership scheme. Since the seats in this stand
became available in late December 2001, we have had an average home crowd of
25,964, a 29% increase in the level of support since the start of the current
season.
The club's training ground complex at New Eltham has already been extended with
the acquisition of two adjoining sports grounds, which will enable us to realise
all our future development plans for the site. The construction of an outdoor
Fieldturf pitch has provided an important facility for both the first team squad
and the youth academy, particularly for use during adverse weather conditions.
Next month, work will commence on an indoor sports facility, which will enable
us to secure our full Football Association accreditation for the youth academy.
We have introduced a new senior management structure that reports directly to
the executive board of the football club and which will be responsible for the
implementation of our plans for the development and growth of the club and the
business.
Industry Prospects
This is the first year of the new three-year television deal with BSkyB, which
has brought an increased level of revenue to Premiership clubs. This has had an
inflationary effect on player wage costs within the industry.
Several clubs have taken on high levels of long-term debt through the
securitisation of future ticket revenues in agreements ranging in value from
£25m to £80m. Your board believes it is prudent, at this time, to restrict our
level of debt to the financing of the company's capital works programme, the
majority of which is revenue generating.
New international transfer arrangements will become fully effective from
September 2002 and there remains a degree of uncertainty about how these will
operate in practice and to what extent they will apply to domestic transfers. I
am particularly concerned at the effect the possible introduction of transfer
windows could have if applied domestically, especially for Nationwide League
clubs who already have
concerns regarding the long term viability of their own television contracts.
We will continue to build Charlton Athletic in a financially responsible manner
and I remain very confident about the future of our club.
RICHARD ALAN MURRAY
CHAIRMAN
CONSOLIDATED PROFIT & LOSS ACCOUNT
for the six months ended 31 December 2001
Unaudited Results
6 months to 31 December 2001
Operations excluding Amortisation and Total 6 months 12 months
amortisation and player trading to 31 December to
player trading 2000 30 June 2001
£'000 £'000 £'000 £'000 £'000
TURNOVER 15,003 0 15,003 11,871 28,317
Cost of sales (1,269) (1,269) (1,206) (3,019)
------------ --------- ------ --------- --------
GROSS PROFIT 13,734 0 13,734 10,665 25,298
Operating expenses (13,484) (3,177) (16,661) (12,465) (25,383)
------------ --------- ------ --------- --------
OPERATING PROFIT/(LOSS) 250 (3,177) (2,927) (1,800) (85)
Profit on disposal of 0 1,491 1,491 110 353
players
------------ --------- ------ --------- --------
(LOSS)/PROFIT BEFORE 250 (1,686) (1,436) (1,690) 268
INTEREST AND TAXATION
============ ===========
Net interest receivable/ (162) 68 55
(payable)
------ --------- --------
(LOSS)/PROFIT ON ORDINARY
ACTIVITIES
BEFORE TAXATION (1,598) (1,622) 323
Taxation charges 0 0 0
------ --------- --------
(LOSS)/PROFIT FOR THE (1,598) (1,622) 323
PERIOD
====== ========= ========
EARNINGS/(LOSSES) PER (2.90) (3.13) 0.60
SHARE (pence)
====== ========= ========
CONSOLIDATED BALANCE SHEET
As at 31 December 2001
As at 31 December As at 31 December As at 30 June
2001 2000 2001
£ 000 £ 000 £ 000
FIXED ASSETS
Tangible fixed assets 29,840 22,122 24,407
Intangible assets 17,773 11,901 12,658
--------- ---------- ----------
47,613 34,023 37,065
CURRENT ASSETS
Stocks 283 236 189
Debtors 3,337 3,311 3,727
Cash at bank and in hand 0 4,639 2,505
--------- ---------- ----------
TOTAL ASSETS 51,233 42,209 43,486
Creditors falling due within one year and deferred (15,051) (13,438) (12,454)
income
--------- ---------- ----------
TOTAL ASSETS LESS CURRENT LIABILITIES 36,182 28,771 31,032
Creditors falling due after one year (7,989) (2,073) (1,848)
Deferred income (5,519) (4,371) (4,911)
--------- ---------- ----------
22,674 22,327 24,273
========= ========== ==========
CAPITAL AND RESERVES
Called up share capital 27,485 27,485 27,485
Share premium account 2,018 2,018 2,019
Revaluation reserve 2,968 2,975 2,968
Profit and loss account (9,797) (10,151) (8,199)
--------- ---------- ----------
22,674 22,327 24,273
========= ========== ==========
REVENUE RESERVES
Opening balance (8,199)
Movement in period (1,598)
---------
Closing balance (9,797)
=========
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2001
1. The financial statements combine the results of Charlton
Athletic plc and it's two subsidiaries, Charlton Athletic Football Company
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.
2. Turnover represents receipts from matches played, income from
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, excluding income from player
sales. These are all stated net of value added taxation.
3. Grants received in respect of safety work and ground
improvement are treated 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.
5. The cost of players' registrations are capitalised and
amortised over the period of the respective players' contracts.
6. Signing on fees are recognised in the profit and loss account
evenly over the period covered by the players' contracts.
7. There is no liability for corporation taxation arising in the
period.
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 loss for
the six months and on the weighted average of 54,969,293 shares in issue during
this period (2000: 51,835,899).
10. The financial information for the six months ended 31st December
2000 and 31 December 2001 contained in this statement is un-audited and does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985 ("the Act"). The financial information for the year ended 30 June 2000 is
an abridged version of the group's published financial statements for that
period 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) or (3) of the Act.
11. Copies of this statement are being sent to shareholders and are
available from the Company Secretary, Charlton Athletic plc, The Valley, Floyd
Road, London, SE7 8BL.
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