RNS Number:2557J
Charlton Athletic PLC
27 March 2003
CHARLTON ATHLETIC PLC
27 March 2003
CHARLTON ATHLETIC PLC ("Charlton" or the "Company")
INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 DECEMBER 2002
CHAIRMAN'S INTERIM STATEMENT
This financial year marks the tenth anniversary of the return to our home at The
Valley and I am pleased to report to you on the further progress we have made.
The group recorded an operating profit for the six months to 31st December 2002
of #1.47m, which after accounting for player amortisation, profit on player
disposals and interest charges leaves a net profit of #64,000.These financial
results are in line with our forecasts and we have also secured our key goal of
retaining our Premiership status.
FINANCIAL HIGHLIGHTS 6 months ended 6 months ended
December December
2002 2001
#000's #000's
Turnover 17,740 15,003
Operating costs (16,274) (14,753)
Operating Profit before player amortisation 1,466 250
and player trading
Amortisation of player costs (1,801) (3,177)
Profit on disposal of players 762 1,491
Net profit/(loss) 64 (1,598)
Net assets 17,255 22,675
Turnover has risen 18% against the previous corresponding financial period due
principally to the increased revenues from the central broadcasting contracts
with the Premier League and increased match day activity following the
completion of the north stand. The basic award and merit award have increased
for this period and we were featured in three live BSkyB matches, an increase
from two at December 2001.
In February 2003 we completed the funding of our capital programme with an
additional #2m draw down from Lombard North Central giving the group #14.5m of
term debt repayable by 2010. This has through a five-year period enabled us to
complete the redevelopment of the north and west stands at The Valley, as well
as other capital projects, which I have commented on in previous reports. I
acknowledge the support given to us by Lombard North Central in this respect and
also thank our clearing bankers HSBC Bank Plc for their ongoing support of the
business.
We now have over 21,000 season ticket holders following the development of the
north stand and our home crowds are regularly in excess of 26,000, even for
those matches where the opposition are unable to take their full allocation of
tickets. The number of individuals joining our free membership scheme has risen
to over 9,200 and already the waiting list of new supporters for season tickets
exceeds 400. As I write, 6,000 supporters have already taken advantage of our
offer to freeze season ticket prices to this season's level until 5th April, and
we are confident that the majority of holders will renew before the deadline.
The decision to freeze prices is based on our commitment to affordable pricing
resulting in the cheapest Premier League prices in London.
We have offered a final date of 31st May for renewal but at higher price levels.
Our four-year sponsorship agreement with all:sports is working well and we shall
continue to develop our sponsorship and income generation strategy over the
coming months. I must thank all those individuals and companies who continue to
support us through sponsorship, advertising, suite membership and executive box
hire.
We have re-designed the club's website in conjunction with our partners,
Victoria Real and it now offers access to a wider range of goods and services. I
am delighted at the continuing development of all our communication channels
with our supporters.
We lost our first four home league matches, which was not an ideal start to the
season, but with the application and commitment of the players and coaching
staff under the astute management of Alan Curbishley, our results improved
steadily, culminating in a wonderful run of fourteen Premiership matches during
which we remained undefeated on grass. This also demonstrated the depth of the
first team squad and our ability to cope with injuries to key players. There
have already been so many exciting matches at The Valley this season but I must
particularly highlight our 2-0 defeat of Liverpool on the day we celebrated the
tenth anniversary of our return to The Valley, with the carnival atmosphere of
that day making it very special for everyone connected with the club.
It was disappointing to exit once again from both cup competitions at the early
stages, particularly bearing in mind the significant number of Premiership teams
eliminated from the FA Cup competition.
The atmosphere at our home matches has again been a key factor in our success
and even when we were allotted three consecutive Sunday home matches for live
BSkyB transmission our crowds held up, despite this coverage and the
inconvenience to supporters caused by fixture changes from the traditional
Saturday slot.
Of course, the public face of any football club centres on its first team, but
we must pay tribute to both our youth team who have reached the semi-final stage
of the FA Youth Cup competition and our women's team who have reached the final
of the Women's FA Cup competition, which will be shown live on BBC Television on
5th May.
INDUSTRY PROSPECTS
The Premier League is the most competitive and the most watched League around
the world with an estimated weekly audience of some 460 million people. It is a
League that is envied throughout the world and the challenge to its clubs is to
ensure it flourishes and becomes ever more competitive and is not diminished by
self-interest and greed.
At the same time we must ensure that there is a viable structure below the top
League. Relegation from the Premiership should not threaten the very existence
of football clubs and it is incumbent on all of us at the top table of
professional football to demonstrate a responsible level of financial
management.
There has been a sharp decline in the financial liquidity within the football
industry, with banks seeking to reduce their exposure to the industry due to the
increasing number of clubs going into administration and the high debt levels of
many other clubs. This factor, coupled with the lack of transfer activity
following the advent of transfer windows, has caused serious difficulty for many
clubs. Professional football in this country is beset with financial problems
and I believe that clubs like ourselves who have managed our affairs well by not
over extending ourselves will be well placed in the coming years to make further
progress both as a club and a team.
We believe that there should be an urgent review to produce a more relevant
formula for distributing broadcasting revenues to clubs on a more equitable
basis, but at the same time we support the principle of the collective
bargaining of broadcasting rights. It is to be hoped that the current challenge
by the European Commission to the existing broadcasting contracts fails or the
financial structure of football in this country will be further damaged.
Assuming the challenge fails, we believe that the value of the next broadcasting
contracts will be broadly in line with the current ones.
Since our return to the Premier League nearly three years ago we have finished
in creditable ninth and fourteenth positions. During this time we have made a
significant investment both in the playing squad and at The Valley, but without
extending ourselves beyond our means. We have already secured our Premiership
status for next season and are well placed to exceed our previous best points
total of 52 points in a season.
Our long-standing policy of building Charlton Athletic in a financially
responsible and prudent manner will continue. We may not be the biggest and most
successful club in the Premiership, but we shall continue with our objective of
making Charlton Athletic the best football club in the country.
Richard Murray
Chairman
26th March 2003
CONSOLIDATED PROFIT & LOSS ACCOUNT
for the six months ended 31 December 2002
Unaudited Results
6 months to 31 December 2002
Operations
excluding 6 months 12 months
amortisation and Amortisation and to 31 December to
player trading player trading Total 2001 30 June 2002
Unaudited Unaudited Unaudited Unaudited Audited
#'000 #'000 #'000 #'000 #'000
TURNOVER 17,740 17,740 15,003 30,641
Operating expenses (16,274) (1,801) (18,075) (17,930) (36,023)
Exceptional item 0 0 0 0 (7,320)
------------ --------- ------ --------- --------
OPERATING 1,466 (1,801) (335) (2,927) (12,702)
PROFIT/(LOSS)
Profit on disposal 762 762 1,491 2,481
of players ------------ --------- ------ --------- --------
PROFIT/(LOSS) BEFORE 1,466 (1,039) 427 (1,436) (10,221)
INTEREST AND TAXATION ============ ===========
Net interest (363) (162) (507)
(payable) ------ --------- --------
PROFIT/(LOSS) ON
ORDINARY ACTIVITIES
BEFORE TAXATION 64 (1,598) (10,728)
Taxation charges 0 0 0
------ --------- --------
PROFIT/(LOSS) for 64 (1,598) (10,728)
the period
====== ========= ========
EARNINGS/ 0.12 (2.90) (19.50)
(LOSSES) PER SHARE
(pence) ====== ========= ========
CONSOLIDATED BALANCE SHEET
As at 31 December As at 31 December As at 30 June
2002 2001 2002
# 000 # 000 # 000
FIXED ASSETS
Tangible fixed assets 36,314 29,840 35,890
Intangible assets 8,296 17,773 9,916
--------- ---------- ----------
44,610 47,613 45,806
CURRENT ASSETS
Stocks 225 283 118
Debtors 2,015 3,337 3,153
Cash at bank and in hand 0 0 16
--------- ---------- ----------
TOTAL ASSETS 46,850 51,233 49,093
Creditors falling due within one year and deferred income (12,583) (15,050) (15,548)
--------- ---------- ----------
TOTAL ASSETS LESS CURRENT LIABILITIES 34,267 36,183 33,545
Creditors falling due after one year (10,495) (7,989) (9,731)
Deferred income (6,517) (5,519) (6,623)
--------- ---------- ----------
NET ASSETS 17,255 22,675 17,191
========= ========== ==========
CAPITAL AND RESERVES
Called up share capital 27,485 27,485 27,485
Share premium account 2,019 2,019 2,019
Revaluation reserve 6,597 2,968 6,597
Profit and loss account (18,846) (9,797) (18,910)
--------- ---------- ----------
EQUITY SHAREHOLDERS' FUNDS 17,255 22,675 17,191
========= ========== ==========
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
six months ended 31st December 2002
1. The financial statements combine the results of Charlton Athletic plc and
its 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. Provision is made, where in
the opinion of the directors, an impairment of the carrying value
of the player's registrations has occurred.
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 profit of #64,000
(2001: loss #1,598,000) for the six months and on the weighted average
of 54,969,293 shares in issue during this period (2001: 54,969,293).
10. The financial information for the six months ended 31st December 2001 and
31st December 2002 contained in this statement is unaudited 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 30th June 2002 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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