TIDMTTNM
RNS Number : 2354C
Tottenham Hotspur PLC
10 November 2009
10 November 2009
Tottenham Hotspur plc
("Tottenham Hotspur" or "the Company")
Highlights for the year ended 30 June 2009
+--------------------------------------+---------------+---------------+
| Financial Highlights | Year ended | Year ended |
| | 30 June 2009 | 30 June 2008 |
| | GBPm | GBPm |
+--------------------------------------+---------------+---------------+
| Revenue | 113.0 | 114.8 |
+--------------------------------------+---------------+---------------+
| Profit from operations excluding | 24.1 | 35.0 |
| football trading and before | | |
| restructuring and depreciation | | |
+--------------------------------------+---------------+---------------+
| Amortisation and impairment of | (37.3) | (37.3) |
| registrations | | |
+--------------------------------------+---------------+---------------+
| Profit on disposal of registrations | 56.5 | 16.4 |
+--------------------------------------+---------------+---------------+
| Net finance costs | (3.4) | (3.9) |
+--------------------------------------+---------------+---------------+
| Profit on ordinary activities before | 33.4 | 3.0 |
| taxation | | |
+--------------------------------------+---------------+---------------+
| Profit for the year from continuing | 23.2 | 1.0 |
| operations | | |
+--------------------------------------+---------------+---------------+
| Earnings per share | 25.0p | 1.0p |
+--------------------------------------+---------------+---------------+
Summary and Outlook
* Record profit before tax of GBP33.4m
* Revenue remains high at GBP113.0m
* Player trading profit of GBP56.5m
* GBP119.3 million spent on player acquisitions in financial year
* Group net assets increased to GBP62.1m from GBP42.6m at prior year end
* Planning application submitted for the Northumberland Development Project, our
new stadium and related scheme
* GBP61.0 million committed on property transactions in and around current stadium
over the past six years
* Works started on new Training Centre for the First Team and Academy at Bulls
Cross in Enfield
Commenting, Daniel Levy, Chairman of Tottenham Hotspur plc, said:
"We have made significant progress in delivering on our long-term vision for the
Club. We have always had three key priorities and you will have heard them oft
repeated - investment in the First Team, a new Training Centre and an increased
capacity state-of the-art new stadium.
We have assembled what we believe to be one of the most talented squads we have
had during our time in the Premier League, the ground is being turned and
pitches laid for the new Training Centre at Bulls Cross in Enfield and we have
submitted a planning application for a stunning new stadium on a site next to
our existing stadium."
Enquiries:
Matthew Collecott, Finance Director Tel: +44(0) 208 365 5322
Tottenham Hotspur plcwww.tottenhamhotspur.com
John Bick Tel: +44(0) 7872 061 007
Hansard Group
Jonathan Wright Tel: +44(0) 207 107 8000
Seymour Pierce Limited
Chairman's Statement 2009
The robust and well financed nature of our business, early prudent financial
management measures, profitable player trading and the continued, unwavering
loyalty of our supporters has meant that we are able to announce a record profit
before tax for the year.
This vindicates our cautious approach in anticipation of difficult trading
conditions and shows the underlying strength, diverse revenue streams and
fundamental good health of our business.
Financial highlights
This year's financial results for the year ended 30 June 2009 have seen revenue
all but reach the same level as that achieved in the previous year, reaching
GBP113.0m (2008: GBP114.8m). With domestic TV revenues continuing to increase we
should have exceeded last year's turnover had it not been for reduced
merchandising revenues and Cup competition receipts.
The Club made a record player trading profit of GBP56.5m (2008: GBP16.4m),
contributing towards a pre-tax profit of GBP33.4m (2008: GBP3.0m). The funds
generated through player sales have been re-invested in the First Team as we
continually strive to improve our squad year-on-year.
Aside from investing in the First Team squad, we took the pre-emptive steps of
reducing our operating costs in advance of the downturn in the economy and this
has held us in good stead during this difficult economic period. Further support
from our majority shareholder also ensured that the planning costs of our
building projects were funded, ensuring that investment in the First Team
remained unaffected.
Capital projects
Within this financial period, we have held two public consultation exhibitions
for the Northumberland Development Project - our new stadium and related
developments. Held in November 2008 and April 2009, both received overwhelmingly
positive responses and provided valuable feedback from the local community and
fans. We have continued to evolve the design and composition of the stadium and
the surrounding development.
We have now submitted our planning application - a hugely important step for the
Club.
From the outset our aim has been to create a scheme of major benefit for local
people and to deliver the most fan friendly stadium in Europe. Not only will
every single seat have an exceptional view of the action and fans will find
themselves closer to the pitch than at any other comparable stadium, but the
stadium design now also includes a new single tier stand which further
demonstrates our absolute commitment to create the most atmospheric stadium
possible for our supporters.
The scheme submitted represents a multi-million pound investment in the area and
brings with it housing, a hotel, retail developments including a supermarket and
expanded community services and jobs.
The Club, through the Tottenham Hotspur Foundation, has a long established,
productive and valued partnership with Haringey Council and local community
groups. This development would enable the Tottenham Hotspur Foundation to
further enhance its role in the local community through greatly improved
facilities and the management of the exceptional public space incorporated in
the scheme design.
In the past two years the Foundation has worked to attract more than GBP2m of
additional funding into the Borough for its projects in Haringey, an area with
significant socio-economic challenges such as the levels of crime and
unemployment.
We have also embraced environmental sustainability as part of the plans,
delivering a 40% reduction in carbon emissions against current building
regulations which will make it one of the best performing stadia of its kind in
the UK.
We have held extensive talks with the transport operators and Transport for
London and have developed a clear and workable transport plan.
We have continued to acquire the remaining properties on the site of the new
stadium and in total, our capital commitment to the project, over the last six
years, stands at over GBP61m.
As a Club, we are proud of our roots in Haringey and the Northumberland
Development Project has the real potential to act as a powerful catalyst for the
uplift of the wider area and I am personally delighted to have reached this
stage.
The worldwide recession has made the task of funding the new development all the
more challenging and we are working on a number of projects that may provide
funding streams to assist the development. We feel we have taken a prudent
approach to minimise the Club's exposure to debt by continuing to pursue
supporting development around the stadium that significantly cross subsidises
the whole project and our search for a naming rights partner has also commenced.
Also outside of this period, we enjoyed a second important landmark for the Club
when, in September, we formally launched the start of works on the new Training
Centre at Bulls Cross, Enfield.
Having fulfilled the pre-development planning conditions, we were able to
commence work on transforming the site into a world-class facility to house our
First Team, Development and Academy squads.
The start of these works marked a significant stage in a long and at times
challenging journey to deliver a new training facility for our Club - a facility
that will be the best in Europe.
Any club with major aspirations needs a state-of-the-art training centre in
order to be able to attract and train top quality players and enable the Club to
compete at the highest level. It will also provide a new facility for the work
of the Tottenham Hotspur Foundation in the local community.
It has, understandably, not been an easy project to achieve and involved five
years of hard work, co-operation and determination to reach this stage and I
should like to thank all those involved in bringing the vision to reality. We
anticipate that the works will take in the region of three years to complete.
On the pitch
After a hugely disappointing start to the 2008/2009 season, performances
improved to leave us in eighth place, just one short of a UEFA Europa League
spot. In our third consecutive campaign in the formerly-named UEFA Cup, we
qualified through the group stages before being knocked out by the eventual
winners Shakhtar Donetsk. In The FA Cup we were knocked out in the fourth round
by Manchester United. However, for the second year running, we reached the final
of the Carling Cup and another occasion for our fans to travel to Wembley where
after a closely fought final we were beaten on penalties by Manchester United.
During the financial year the following players joined the Club: Luka Modric,
Giovani Dos Santos, Heurelho Gomes, David Bentley, Vedran Corluka, Cesar
Sanchez, Roman Pavlyuchenko, Wilson Palacios, Carlo Cudicini, John Bostock,
Paul-Jose M'Poku Ebunge and Mirko Ranieri whilst Jermain Defoe, Pascal Chimbonda
and Robbie Keane all re-signed. The total cost of all of these players was
GBP119.3m.
Radek Cerny, Joe Martin, Robbie Keane, Dimitar Berbatov, Pascal Chimbonda, Teemu
Tainio, Steed Malbranque, Younes Kaboul, Anthony Gardner, Paul Robinson, Tommy
Forecast, Young-Pyo Lee, Hossam Ghaly, Dag Olsen and Cesar Sanchez left during
the year for a combined sale price of GBP72.5m.
Since the year end we have boosted our squad with the following signings: Peter
Crouch, Sebastien Bassong, Niko Kranjcar, Kyle Naughton, Kyle Walker and James
Walker at a cost of GBP29.4m.
The following players have left since the year end: Didier Zokora, Chris Gunter,
Gilberto, Yuri Berchiche, Darren Bent, Pascal Chimbonda and Kevin-Prince Boateng
for combined transfer fees of GBP20.8m.
In the summer of 2009, the First Team squad competed in and won the Barclays
Asia Trophy and also participated in the Wembley Cup.
At the Academy level Tottenham Hotspur came top of the Premier Academy League
for the first time since Academies were introduced in 1997. They then defeated
Sunderland at the Stadium of Light before losing to Arsenal in the Play-Off
final.
Our record crowd for an FA Youth Cup tie was broken when 19,084 tickets were
sold for the sixth round meeting with Arsenal.
Of the five tournaments entered, two in Switzerland were won. The Under-19
Torneo Internazionale at Bellinzona during April saw us defeat Barcelona in the
Semi-Final then Sporting Lisbon in the final. The Under-20 Tournoi
Internationale de Monthey was retained with victory over Hajduk Split in the
final at the end of May. Furthermore, in July our Under 16s won the Puma Cup in
Minnesota USA.
We also reached the finals of the Eurofoot and Memorial Jacobo Diaz Camino
tournaments during August and gained a creditable Bronze Medal at the Copa
Internacional Chivas tournament at Guadalajara, Mexico during January.
In preparing our players to play in the Premier League, a priority strategy is
exposing them to different football styles and cultures from around the globe.
Six Academy players made their debuts for the First Team: Ryan Mason, Jonathan
Obika, John Bostock, David Button, Daniel Rose and Dean Parrett.
We withdrew from the Reserve League following this season in order to provide a
more appropriate challenge for these young players, allowing them to optimise
their development against Football League teams whilst still having access to
training at Spurs Lodge. Nineteen players have gone on loan in the 2009/10
season. Tottenham Hotspur is the first Premier League club to take this
innovative approach by exclusively bridging the gap from youth to senior
football in this way.
Commercial operations
During the year, the Club renewed its agreement with MBNA, one of our commercial
partners, for a further five years.
One area of the business which has not been immune to the knock-on effects of
the global recession has been corporate hospitality. In line with the market we
have seen a reduction in the sale of longer term box leases and lounge
memberships.
Merchandise has also seen a flattening out of sales, but this is in comparison
to a previous season where sales where buoyed by our 125 Anniversary range of
merchandise and winning the Carling Cup.
The Club has embarked on a process of centralising all data in order to better
understand the profile of our fans and enhance and tailor our offering and
services to our widening supporter base. We currently have over 23,000 One
Hotspur members on the waiting list for season tickets. Our decision to freeze
prices for up to two years ensured another excellent renewal rate. The release
of additional tickets for seasonal sale means that we now have close to 24,000
One Hotspur season ticket members.
Our official Club website continues to attract a high volume of traffic with
around one million unique users visiting it monthly. A review of its
functionality has seen a recent re-design.
Spurs TV continues to attract the highest levels of subscriptions of any
comparable Premier League club channel and was hugely popular when screening
live UEFA games.
Finally, our search for a new shirt sponsor to replace MANSION is well underway.
Our commercial team is talking to companies in different corners of the world
regarding the shirt sponsorship along with the opportunity to sponsor our
proposed new stadium. We have been greatly encouraged by the interest and
enthusiasm shown for both opportunities from companies in varied sectors and
discussions continue.
International development
During the financial year we agreed a partnership with the US Major Soccer
League San Jose Earthquakes to add to our partnership with Supersport United in
South Africa.
Since the year end we have also announced a strategic partnership with Brazilian
club Sport Club Internacional that will enable us to track emerging talented
players from Brazil and the rest of South America. We have concluded a tie-up
with South China in Hong Kong.
We are now looking at similar partnerships in India and the Middle East and
recently supported India's team in the Homeless World Cup.
The objective of all of these associations is to further develop the brand and
fan base internationally, effect the exchange of coaching methodologies and
coaches, as well as participation in tournaments and training programmes for
both academy players from our own and the associated club's academies.
Tottenham Hotspur Foundation
The Tottenham Hotspur Foundation has gone from strength to strength since it
achieved charitable status two years ago and was established with GBP4.5m of
funding by the Club - using sport, and in particular football, as a vehicle to
create potentially life changing opportunities for children, groups and
individuals within our communities.
As a registered charity, it directly touches the lives of tens of thousands of
people across North London with specialist programmes that directly tackle key
social issues - improving achievement, building community cohesion, promoting
healthy lifestyles and supporting people with disabilities - working with a wide
range of partners including central and local government departments, schools,
colleges, businesses and charitable trusts to design programmes that engage with
all sections of the community.
I have mentioned the Foundation twice before in this statement and that
underlines the importance we afford the much valued work it carries out and the
role it plays. It will deliver over GBP2m of outreach programmes in Enfield
alongside the development of our new Training Centre at Bulls Cross and in
support of our increasing role to be played in the local community there.
Additionally, the Northumberland Development Project now provides a unique
opportunity to continue our valued role in the Tottenham area through the
proposed new facilities and unique public space.
You can rightly be proud of the work of the Foundation which is now widely
recognised as one of the most comprehensive, effective and innovative
organisations of its kind.
Other charitable donations
This period saw us host the successful World Orphan Week (WoW) launch for our
international charity, SOS Children's Villages. We focused on a matchday when
our supporters generously contributed and participated in the spirit of the
occasion by wearing something WoW related.
During the pre-season trip to the Far East, players visited and took gifts to
the new SOS Children's Orphanage in Beijing. We continue to maintain the Club's
SOS House in Rustenburg, South Africa.
We give priority to charities in the locality of our operations and also
contribute to national fund-raising campaigns such as Comic Relief, Sports Aid
and Help for Heroes.
Environmental responsibility
It is no exaggeration to say that climate change is one of the greatest
challenges facing us on a global scale and, as a business which is a potential
conduit to millions of individual supporters and with plans for two new major
developments, it is key that we seek to play our role and effect a behaviour
change and awareness that delivers results now and in the future.
During this period the Club has continued to take measures to ensure greater
energy efficiency - this has included better insulation, timed lighting, lower
wattage floodlights, more recycling and increased awareness of what we can all
do amongst our employees and supporters. In addition, as agreed at last year's
meeting, we have taken the step of sending 90% of these reports electronically
rather than in a paper format, thereby reducing significantly the amount of
copies that need to be printed and distributed.
The Club has become a founding participant in 10:10, the environmental campaign
encouraging a 10% reduction in the carbon footprint by 2010.
Management and staff
Following the Club's worst start to a season in its history, changes to our
coaching staff became inevitable and we terminated the contracts of Head Coach
Juande Ramos and his First Team Coaches Marcos Alvarez and Gus Poyet in October
2008, along with Sporting Director Damien Comolli. We thanked them for their
contribution to the Club which included the winning of silverware with the
League Cup in February 2008.
Harry Redknapp was appointed as Manager and Kevin Bond and Joe Jordan were added
to the coaching staff and we swiftly saw an improvement in our results that saw
us finish a creditable eighth in the Premiership.
I should like to thank all of our staff for their enthusiasm, hard work and
loyalty during an extremely challenging year.
I should like to once again thank Mervyn Davies, now Lord Davies of Abersoch,
for his experience and guidance in his time as a Non-Executive Director and wish
him well in his new position in Government. I should also like to thank Sir
Keith Mills once again for his guidance and advice at what is a key time for the
Club. In addition to being our Non-Executive Director, Sir Keith is currently a
Director of The London Organising Committee of the Olympic Games, on the Board
of the World Cup 2018 Bid Team and is also head of the British America's Cup
team. His engagement in sport is immense and he is a much valued member of the
Board.
Outlook - Building for the future
Four wins in a row kicked off our 2009/2010 season and our progress to date has
put us in a good position to challenge for one of the European spots for next
season. Our hope must be that our good early season form continues and we find
the consistency that has eluded us in previous campaigns.
Importantly, we have made significant progress in delivering on our long-term
vision for the Club. We have always had three key priorities and you will have
heard them oft repeated - investment in the First Team, a new Training Centre
and an increased capacity state-of the-art new stadium.
We have assembled what we believe to be one of the most talented squads we have
had during our time in the Premier League, the ground is being turned and
pitches laid for the new Training Centre at Bulls Cross in Enfield and we have
submitted a planning application for a stunning new stadium on a site next to
our existing stadium.
None of this would be possible without an extraordinary team effort by everyone
involved.
We are about to begin a period of intense activity that puts London and our Club
in the spotlight for sport - we hope to see a number of Tottenham Hotspur
players join the ranks of the England team now qualified for the World Cup 2010
in South Africa, London plays host to the Olympics in 2012 with football a
growing Olympic sport and we shall be strongly supporting London's bid for the
World Cup 2018, with our new stadium a proposed venue.
I should like to thank our shareholders for their support, our staff for their
commitment and supporters for their immense enthusiasm and loyalty.
Daniel Levy
Chairman
9 November 2009
Financial Review
This year is the third in succession that the Club can announce a profit before
tax for the year and these latest set of financial results show a record profit
before tax of GBP33.4m (2008: GBP3.0m), driven by a profit on player trading of
GBP56.5m (2008: GBP16.4m).
Revenue
Overall, revenue fell by 2% to GBP113.0m (2008: GBP114.8m) but, given the
economic climate over the past twelve months, this represents a strong
performance by the Club and illustrates the robustness and diversity of our
business activities.
Premier League gate receipts rose by 8% to GBP19.8m (2008: GBP18.3m) reflecting
continuing strong attendances despite poor early performances.
The Club reached the Carling Cup final for the second successive year and
progressed through the group stages of the UEFA Cup. There was also a fourth
round defeat in The FA Cup. In total, the cup competitions raised GBP8.1m (2008:
GBP10.3m) in gate receipts and prize monies.
Media and broadcasting revenues increased by 11% to GBP44.8m (2008: GBP40.3m).
This gain is partly attributable to a higher merit fee award based on our final
League position of eighth compared to eleventh the previous season but also the
number of times the Club featured in live televised games, which has increased
on the prior year, giving the brand increasing global exposure and securing the
Club as one of the most televised clubs in the Premier League. The addition of
ESPN as a media partner of the Premier League further strengthens the underlying
covenant of future revenues.
Sponsorship and corporate hospitality income remained strong at GBP27.4m (2008:
GBP27.8m) with merchandising falling to GBP7.0m (2008: GBP9.7m) although the
prior year figures were boosted by sales relating to the Club's 125th
anniversary, the Carling Cup win and the timing of new kit launches.
Operating expenses (excluding football trading)
Operating expenses before football trading rose by GBP7.3m to GBP94.6m in the
year. Player salaries have risen due in part to the investments made in the
squad in January. Unrealised foreign exchange differences that result from the
weakening of Sterling against the Euro and significant one-off costs incurred
relating to the restructuring of coaching staff as mentioned in the Chairman's
Statement also contributed to the increase in operating expenses. Other
operating costs through all departments were reduced during the year reflecting
the Club's ongoing and prudent cost control policies which were enhanced by a
complete review of all departmental budgets during the year.
Profit from operations (excluding football trading and amortisation)
The Club's operating profit before football trading and amortisation is GBP18.4m
(2008: GBP27.5m).
Amortisation and impairment of intangible assets
Amortisation and impairment of intangible assets are GBP37.3m (2008: GBP37.3m)
as the Club maintains the continued investment in its playing squad.
Profit on disposal of intangible assets
Profit on the disposal of intangible assets was GBP56.5m for the financial year
(2008: GBP16.4m), including GBP23.4m relating to the sale of Dimitar Berbatov to
Manchester United and GBP17.5m relating to the sale of Robbie Keane to
Liverpool. Other significant sales in the year include Steed Malbranque, Teemu
Tainio and Pascal Chimbonda to Sunderland for a combined net profit of GBP7.3m
and Paul Robinson to Blackburn Rovers for a profit of GBP2.9m.
Net finance expenses
Net finance expenses have reduced from GBP3.9m to GBP3.4m. This is largely due
to the reduction in the UK base rate and the profile of payments and receipts in
respect of player trading.
Profit before taxation
The overall result of the above is that profit before taxation is GBP33.4m for
the year (2008: GBP3.0m). This represents an earnings per share of 25.0p (2008:
1.0p). Clearly this is a reflection of the significant profits on player
trading, the proceeds of which have subsequently been reinvested in the playing
squad.
Taxation
The Group has incurred a tax charge of GBP10.2m in the current year (2008:
GBP2.0m), an effective tax rate of 28% (2008: 29.5%), of which GBP8.4m is
deferred tax. Therefore profit after tax is GBP23.2m (2008: GBP1.0m).
Balance sheet
The significant investments the Club has continued to make over the past twelve
months in the Northumberland Development Project, the new Training Centre and
the playing squad as discussed above account for the major movements in the
balance sheet. As a result, property, plant and equipment have increased from
GBP74.1m to GBP103.3m and intangible assets have more than doubled from GBP62.4m
to GBP128.4m. The Group now has total assets of almost GBP300 million.
Group net assets are GBP62.1m (2008: GBP42.6m) whilst net debt excluding CRPS
remains at a comparatively low level of GBP45.9m (2008: GBP14.6m). The
significant capital additions to the First Team squad and property portfolio
have been funded by a combination of the Club's cash flows and the Club's
existing loan facilities which has resulted in an increase of net debt. At 30
June 2009 the Group had GBP64.5m (2008: GBP84.1m) of undrawn committed bank
borrowing facilities.
In September 2009, the Club placed 30 million new ordinary shares of 5p each,
raising GBP15.0m to assist with the Northumberland Development Project.
Cash flow
The Group had a net cash inflow from its operations of GBP29.9m for the year
(2008: GBP35.2m).
Finance costs have risen by GBP0.9m due to increased borrowings to fund the
GBP32.1m of properties, plant and equipment that were acquired during the year.
We had a cash outflow of GBP68.6m (2008: GBP27.5m) to acquire players and pay
contingent sums arising from transfer agreements, but this is partially offset
by GBP47.2m (2008: GBP16.2m) of cash inflows from player sales and contingent
receipts. The other major cash movements were the drawdown of GBP14.6m in
property loans to help fund the Northumberland Development Project. These
movements have resulted in a net decrease in cash of GBP15.7m (2008: increase of
GBP7.0m). We continue to balance cash inflows with the need to strengthen the
squad and continue with the long-term capital projects we have committed to.
During the year a GBP5.0m short-term revolving loan which forms part of the
Group's facility with HSBC Bank was utilised. The Group repaid GBP4.0m of other
borrowings during the year.
The final dividend of 4p per ordinary share for the year ended 30 June 2008 was
paid in the year with a cash outflow of GBP3.7m and as noted during the recent
fund raising the Directors are not proposing a dividend this year.
Risks and opportunities
The Group is exposed to a range of risks and uncertainties which have the
potential to affect the long-term performance of the Group. Risks are monitored
by the Board on a continual basis and the Group seeks to mitigate the risks
wherever possible.
The Club is reliant on the Premier League brand and exposed to the external
governing bodies of The FA, UEFA and FIFA. Clearly any changes in these bodies
can affect our business model.
On the pitch
The continued success of the First Team in the League, European and cup
competitions is an important factor in securing the long-term stability of the
Group. This is especially true given the significant increase in income
generated from TV revenues under the central FAPL TV deal.
Our ambitions in these competitions can only be achieved with the continued
commitment of the playing staff, the football management team and our
supporters. Our approach to nurturing both home grown talent and acquisitions
through the transfer market will help the team to secure future success on the
pitch.
There is always continued upward pressure on player costs and salaries, which
continue to require significant cash outflows. Accordingly, the challenge for
the Group continues to be to locate players of both quality and value through
the transfer market and Academy.
Our supporters continue to demonstrate unwavering support for our team and Club.
Attendances are consistently high with over 23,000 people on the waiting list
for season tickets. We are continually seeking ways to increase our fan base
overseas and add value for domestic fans. This continued support together with
that of our sponsors and other commercial partners, is of utmost importance in
ensuring that the Club is able to prosper.
Off the pitch
The development of the new stadium will expose the Group to additional risks.
The risks that we might not obtain planning permission or obtain the necessary
financing would have a significant negative impact and require a write-off of
professional fees paid to date. In addition, there may be property write-downs
that would impact the income statement.
We continue to explore new opportunities in order to broaden our range of income
streams both nationally and internationally. This continued diversification of
our income streams will help to ensure the Group is financially robust and
increases our stability.
Matthew Collecott
Finance Director
9 November 2009
Consolidated income statement
for the year ended 30 June 2009
Continuing operations
Year ended 30 June 2009
+--------------------------------------+------+-------------+----------+-----------+-----------+
| | | Operations, | Football | Total | Year |
| | | excluding | trading* | | ended |
| | | football | | | 30 |
| | | trading* | | | June |
| | | | | | 2008 |
| | | | | | Total |
| | | | | | (note |
| | | | | | 2) |
+--------------------------------------+------+-------------+----------+-----------+-----------+
| | Note | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------+------+-------------+----------+-----------+-----------+
| Revenue | 3 | 113,012 | - | 113,012 | 114,788 |
+--------------------------------------+------+-------------+----------+-----------+-----------+
| Operating expenses | | (94,622) | (38,099) | (132,721) | (124,298) |
+--------------------------------------+------+-------------+----------+-----------+-----------+
| Operating profit/(loss) | | 18,390 | (38,099) | (19,709) | (9,510) |
+--------------------------------------+------+-------------+----------+-----------+-----------+
| Profit on disposal of intangible | | - | 56,500 | 56,500 | 16,362 |
| fixed assets | | | | | |
+--------------------------------------+------+-------------+----------+-----------+-----------+
| Profit from operations | | 18,390 | 18,401 | 36,791 | 6,852 |
+--------------------------------------+------+-------------+----------+-----------+-----------+
| Finance income | | | | 4,563 | 1,797 |
+--------------------------------------+------+-------------+----------+-----------+-----------+
| Finance costs | | | | (7,956) | (5,662) |
+--------------------------------------+------+-------------+----------+-----------+-----------+
| Profit on ordinary activities before | | | | 33,398 | 2,987 |
| taxation | | | | | |
+--------------------------------------+------+-------------+----------+-----------+-----------+
| Tax | | | | (10,234) | (2,018) |
+--------------------------------------+------+-------------+----------+-----------+-----------+
| Profit for the period from | | | | 23,164 | 969 |
| continuing operations | | | | | |
+--------------------------------------+------+-------------+----------+-----------+-----------+
| | | | | | |
+--------------------------------------+------+-------------+----------+-----------+-----------+
| Earnings per share from continuing | 5 | | | 25.0p | 1.0p |
| operations - basic | | | | | |
+--------------------------------------+------+-------------+----------+-----------+-----------+
| Earnings per share from continuing | 5 | | | 12.9p | 1.0p |
| operations - diluted | | | | | |
+--------------------------------------+------+-------------+----------+-----------+-----------+
* Football trading represents the amortisation, impairment, and the
profit/(loss) on disposal of intangible fixed assets and other football trading
related income and expenditure.
Consolidated balance sheet
as at 30 June 2009
+----------------------------------------------+--------+-----------+-----------+
| | | 30 June | 30 |
| | | | June |
+----------------------------------------------+--------+-----------+-----------+
| | | 2009 | 2008 |
+----------------------------------------------+--------+-----------+-----------+
| | | GBP'000 | GBP'000 |
+----------------------------------------------+--------+-----------+-----------+
| Non-current assets | | | |
+----------------------------------------------+--------+-----------+-----------+
| Property, plant and equipment | | 103,338 | 74,130 |
+----------------------------------------------+--------+-----------+-----------+
| Intangible assets | | 128,432 | 62,423 |
+----------------------------------------------+--------+-----------+-----------+
| | | 231,770 | 136,553 |
+----------------------------------------------+--------+-----------+-----------+
| Current assets | | | |
+----------------------------------------------+--------+-----------+-----------+
| Inventories | | 1,172 | 1,884 |
+----------------------------------------------+--------+-----------+-----------+
| Trade and other receivables | | 37,738 | 41,292 |
+----------------------------------------------+--------+-----------+-----------+
| Current tax receivable | | 1,104 | 2,182 |
+----------------------------------------------+--------+-----------+-----------+
| Cash and cash equivalents | | 19,622 | 35,283 |
+----------------------------------------------+--------+-----------+-----------+
| | | 59,636 | 80,641 |
+----------------------------------------------+--------+-----------+-----------+
| Total assets | | 291,406 | 217,194 |
+----------------------------------------------+--------+-----------+-----------+
| Current liabilities | | | |
+----------------------------------------------+--------+-----------+-----------+
| Trade and other payables | | (89,579) | (77,496) |
+----------------------------------------------+--------+-----------+-----------+
| Interest bearing loans and borrowings | | (13,810) | (7,798) |
+----------------------------------------------+--------+-----------+-----------+
| Provisions | | (1,211) | (5,602) |
+----------------------------------------------+--------+-----------+-----------+
| | | (104,600) | (90,896) |
+----------------------------------------------+--------+-----------+-----------+
| Non-current liabilities | | | |
+----------------------------------------------+--------+-----------+-----------+
| Interest bearing overdrafts and loans | | (66,504) | (57,187) |
+----------------------------------------------+--------+-----------+-----------+
| Trade and other payables | | (37,871) | (14,607) |
+----------------------------------------------+--------+-----------+-----------+
| Deferred grant income | | (2,211) | (2,143) |
+----------------------------------------------+--------+-----------+-----------+
| Deferred tax liabilities | | (18,157) | (9,751) |
+----------------------------------------------+--------+-----------+-----------+
| | | (124,743) | (83,688) |
+----------------------------------------------+--------+-----------+-----------+
| Total liabilities | | (229,343) | (174,584) |
+----------------------------------------------+--------+-----------+-----------+
| Net assets | | 62,063 | 42,610 |
+----------------------------------------------+--------+-----------+-----------+
| Equity | | | |
+----------------------------------------------+--------+-----------+-----------+
| Share capital | | 4,640 | 4,639 |
+----------------------------------------------+--------+-----------+-----------+
| Share premium | | 11,638 | 11,637 |
+----------------------------------------------+--------+-----------+-----------+
| Equity component of convertible redeemable | | 3,805 | 3,806 |
| preference shares ("CRPS") | | | |
+----------------------------------------------+--------+-----------+-----------+
| Revaluation reserve | | 2,240 | 2,288 |
+----------------------------------------------+--------+-----------+-----------+
| Capital redemption reserve | | 595 | 595 |
+----------------------------------------------+--------+-----------+-----------+
| Retained earnings | | 39,145 | 19,645 |
+----------------------------------------------+--------+-----------+-----------+
| Total equity | | 62,063 | 42,610 |
+----------------------------------------------+--------+-----------+-----------+
Consolidated statement of changes in equity
for the year ended 30 June 2009
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| | Share | Share | Equity | | Capital | Profit | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| | capital | premium | component | Revaluation | redemption | and | |
| | | | | | | loss | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| | account | account | of | reserve | reserve | account | Total |
| | | | CRPS | | | | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Balance as at 1 July | 4,639 | 11,637 | 3,806 | 2,288 | 595 | 19,645 | 42,610 |
| 2008 | | | | | | | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Profit for the period | - | - | - | - | - | 23,164 | 23,164 |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Amortisation of | - | - | - | (48) | - | 48 | - |
| revaluation reserve | | | | | | | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| CRPS converted in the | 1 | 1 | (1) | - | - | - | 1 |
| period | | | | | | | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Final dividend on | - | - | - | - | - | (3,712) | (3,712) |
| equity shares relating | | | | | | | |
| to year ended 30 June | | | | | | | |
| 2008 | | | | | | | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| At 30 June 2009 | 4,640 | 11,638 | 3,805 | 2,240 | 595 | 39,145 | 62,063 |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| | | | | | | | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
For the year ended 30 June 2008
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| | Share | Share | Equity | | Capital | Profit | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| | capital | premium | component | Revaluation | redemption | and | |
| | | | | | | loss | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| | account | account | of | reserve | reserve | account | Total |
| | | | CRPS | | | | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Balance as at 1 July | 4,631 | 11,556 | 3,838 | 2,336 | 565 | 23,202 | 46,128 |
| 2007 | | | | | | | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Profit for the period | - | - | - | - | - | 969 | 969 |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Amortisation of | - | - | - | (48) | - | 48 | - |
| revaluation reserve | | | | | | | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Ordinary 5p shares | (30) | - | - | - | 30 | (841) | (841) |
| redeemed during the | | | | | | | |
| year | | | | | | | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| CRPS converted in the | 38 | 81 | (32) | - | - | - | 87 |
| period | | | | | | | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| Final dividend on | - | - | - | - | - | (3,733) | (3,733) |
| equity shares relating | | | | | | | |
| to the year ended 30 | | | | | | | |
| June 2007 | | | | | | | |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
| At 30 June 2008 | 4,639 | 11,637 | 3,806 | 2,288 | 595 | 19,645 | 42,610 |
+------------------------+---------+---------+-----------+-------------+------------+---------+---------+
Consolidated statement of cash flows
for the year ended 30 June 2009
+-------------------------------------------------+--------+----------+-----------+
| | | Year | Year |
| | | ended | ended |
| | | 30 | 30 |
| | | June | June |
| | | 2009 | 2008 |
+-------------------------------------------------+--------+----------+-----------+
| | | GBP'000 | GBP'000 |
+-------------------------------------------------+--------+----------+-----------+
| Cash flow from operating activities | | | |
+-------------------------------------------------+--------+----------+-----------+
| Profit from operations | | 36,791 | 6,852 |
+-------------------------------------------------+--------+----------+-----------+
| Adjustments for: | | | |
+-------------------------------------------------+--------+----------+-----------+
| Amortisation and impairment of intangible | | 37,288 | 35,057 |
| assets | | | |
+-------------------------------------------------+--------+----------+-----------+
| Profit on disposal of intangible assets | | (56,500) | (16,362) |
+-------------------------------------------------+--------+----------+-----------+
| (Profit)/loss on disposal of property, plant | | (3) | 14 |
| and equipment | | | |
+-------------------------------------------------+--------+----------+-----------+
| Depreciation of property, plant and equipment | | 2,842 | 2,877 |
+-------------------------------------------------+--------+----------+-----------+
| Capital grants release | | 66 | 58 |
+-------------------------------------------------+--------+----------+-----------+
| Foreign exchange loss | | 2,235 | 1,319 |
+-------------------------------------------------+--------+----------+-----------+
| Decrease/(Increase) in trade and other | | 12,928 | (4,225) |
| receivables | | | |
+-------------------------------------------------+--------+----------+-----------+
| Decrease/(Increase) in inventories | | 712 | (668) |
+-------------------------------------------------+--------+----------+-----------+
| (Decrease)/Increase in trade and other payables | | (6,415) | 10,327 |
+-------------------------------------------------+--------+----------+-----------+
| Cash flow from operations | | 29,944 | 35,249 |
+-------------------------------------------------+--------+----------+-----------+
| Interest paid | | (4,342) | (3,164) |
+-------------------------------------------------+--------+----------+-----------+
| Interest received | | 1,080 | 1,094 |
+-------------------------------------------------+--------+----------+-----------+
| Income tax paid | | (750) | (3,610) |
+-------------------------------------------------+--------+----------+-----------+
| Net cash flow from operating activities | | 25,932 | 29,569 |
+-------------------------------------------------+--------+----------+-----------+
| Cash flows from investing activities | | | |
+-------------------------------------------------+--------+----------+-----------+
| Acquisitions of property, plant and equipment, | | (32,048) | (25,962) |
| net of proceeds | | | |
+-------------------------------------------------+--------+----------+-----------+
| Acquisitions of intangible assets | | (68,609) | (27,456) |
+-------------------------------------------------+--------+----------+-----------+
| Proceeds from sale of intangible assets | | 47,180 | 16,222 |
+-------------------------------------------------+--------+----------+-----------+
| Net cash flow from investing activities | | (53,477) | (37,196) |
+-------------------------------------------------+--------+----------+-----------+
| Cash flows from financing activities | | | |
+-------------------------------------------------+--------+----------+-----------+
| Dividends paid | | (3,712) | (3,733) |
+-------------------------------------------------+--------+----------+-----------+
| Redemption of ordinary shares | | - | (841) |
+-------------------------------------------------+--------+----------+-----------+
| Proceeds from borrowings | | 19,612 | 20,916 |
+-------------------------------------------------+--------+----------+-----------+
| Debt issue costs | | - | (275) |
+-------------------------------------------------+--------+----------+-----------+
| Repayments of borrowings | | (4,016) | (1,440) |
+-------------------------------------------------+--------+----------+-----------+
| Net cash flow from financing activities | | 11,884 | 14,627 |
+-------------------------------------------------+--------+----------+-----------+
| Net (decrease)/increase in cash and cash | | (15,661) | 7,000 |
| equivalents | | | |
+-------------------------------------------------+--------+----------+-----------+
| Cash and cash equivalents at start of the | | 35,283 | 28,283 |
| period | | | |
+-------------------------------------------------+--------+----------+-----------+
| Cash and cash equivalents at end of year | | 19,622 | 35,283 |
+-------------------------------------------------+--------+----------+-----------+
Notes to the Accounts
for the year ended 30 June 2009
1. The financial information set out in this preliminary announcement does not
constitute statutory financial statements for the years ended 30 June 2009 or
2008, for the purpose of the Companies Act 2006, but is derived from those
statements. Statutory financial statements for 2009, on which the Group's
auditors have given an unqualified report which does not contain statements
under Section 498 (2) or (3) of the Companies Act 2006, will be filed with the
Registrar of Companies prior to the Group's next annual general meeting.
Statutory financial statements for 2008 have been filed with the Registrar of
Companies. The Group's auditors have reported on those accounts; their reports
were unqualified and did not contain statements under Section 237 (2) or (3) of
the Companies Act 1985.
The preliminary announcement for the year ended 30 June 2009 was approved by the
Board of Directors on 9 November 2009.
2. Analysis of comparative income statement
+-------------------------------------------------+-------------+----------+-----------+
| | 2008 |
+-------------------------------------------------+------------------------------------+
| | Operations, | Football | Total |
| | excluding | trading | |
| | football | | |
| | trading | | |
+-------------------------------------------------+-------------+----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------------------+-------------+----------+-----------+
| Revenue | 114,788 | - | 114,788 |
+-------------------------------------------------+-------------+----------+-----------+
| Operating expenses | (87,327) | (36,971) | (124,298) |
+-------------------------------------------------+-------------+----------+-----------+
| Operating profit/(loss) | 27,461 | (36,971) | (9,510) |
+-------------------------------------------------+-------------+----------+-----------+
| Profit on disposal of intangible assets | - | 16,362 | 16,362 |
+-------------------------------------------------+-------------+----------+-----------+
| Profit/(loss) from operations | 27,461 | (20,609) | 6,852 |
+-------------------------------------------------+-------------+----------+-----------+
3. Revenue
Revenue, which is almost all derived from the Group's principal activity, is
analysed as follows:
+----------------------------------------------------------+---------+---------+
| | 2009 | 2008 |
+----------------------------------------------------------+---------+---------+
| | GBP'000 | GBP'000 |
+----------------------------------------------------------+---------+---------+
| Revenue comprises: | | |
+----------------------------------------------------------+---------+---------+
| Gate receipts - Premier League | 19,792 | 18,274 |
+----------------------------------------------------------+---------+---------+
| Gate receipts - Cup competitions | 8,065 | 10,341 |
+----------------------------------------------------------+---------+---------+
| Sponsorship and corporate hospitality | 27,363 | 27,778 |
+----------------------------------------------------------+---------+---------+
| Media and broadcasting | 44,811 | 40,329 |
+----------------------------------------------------------+---------+---------+
| Merchandising | 6,960 | 9,723 |
+----------------------------------------------------------+---------+---------+
| Other | 6,021 | 8,343 |
+----------------------------------------------------------+---------+---------+
| | 113,012 | 114,788 |
+----------------------------------------------------------+---------+---------+
All revenue except for GBP770,000 (2008: GBP176,000) derives from the Group's
principal activity in the United Kingdom and is shown exclusive of VAT.
In addition to the amounts shown, the Group recognised finance income of
GBP4,563,000 in 2009 and GBP1,797,000 in 2008. Consequently total revenue is
GBP117,575,000 (2008: GBP116,585,000).
4. Profit from operations
This is stated after charging/(crediting) the following:
+--------------------------------------------------------------+---------+---------+
| | 2009 | 2008 |
+--------------------------------------------------------------+---------+---------+
| | GBP'000 | GBP'000 |
+--------------------------------------------------------------+---------+---------+
| Depreciation of property, plant and equipment: | | |
+--------------------------------------------------------------+---------+---------+
| - owned | 2,842 | 2,877 |
+--------------------------------------------------------------+---------+---------+
| Amortisation and impairment of intangible fixed assets | 37,288 | 37,268 |
+--------------------------------------------------------------+---------+---------+
| Amortisation of grants | (66) | (58) |
+--------------------------------------------------------------+---------+---------+
| Restructuring | 2,822 | 4,663 |
+--------------------------------------------------------------+---------+---------+
| Charitable donations | 27 | 50 |
+--------------------------------------------------------------+---------+---------+
| Operating lease rentals: | | |
+--------------------------------------------------------------+---------+---------+
| - land and buildings | 289 | 145 |
+--------------------------------------------------------------+---------+---------+
| - other | 153 | 174 |
+--------------------------------------------------------------+---------+---------+
5. Earnings per share
Earnings per share has been calculated using the weighted average number of
shares in issue in each year.
+------------------------------------------------------+-------------+-------------+
| | 2009 | 2008 |
+------------------------------------------------------+-------------+-------------+
| | GBP'000 | GBP'000 |
+------------------------------------------------------+-------------+-------------+
| Earnings for the purpose of basic earnings per share | 23,164 | 969 |
| being net profit attributable to equity holders of | | |
| the Company | | |
+------------------------------------------------------+-------------+-------------+
| Accretion of CRPS liability | 558 | 993 |
+------------------------------------------------------+-------------+-------------+
| Earnings for the purpose of diluted earnings per | 23,722 | 1,962 |
| share | | |
+------------------------------------------------------+-------------+-------------+
| | | |
+------------------------------------------------------+-------------+-------------+
| | | Number |
+------------------------------------------------------+-------------+-------------+
| Weighted average number of ordinary shares for the | 92,793,219 | 93,032,204 |
| purposes of basic earnings per share | | |
+------------------------------------------------------+-------------+-------------+
| Convertible redeemable preference shares | 91,063,038 | 91,075,534 |
+------------------------------------------------------+-------------+-------------+
| | 183,856,257 | 184,107,738 |
+------------------------------------------------------+-------------+-------------+
| | | |
+------------------------------------------------------+-------------+-------------+
| Basic earnings per share | 25.0p | 1.0p |
+------------------------------------------------------+-------------+-------------+
| Diluted earnings per share | 12.9p | 1.0p |
+------------------------------------------------------+-------------+-------------+
There are no ordinary share options outstanding at the year end (2008: nil). On
conversion of the CRPS the fully diluted share capital at year end would be
183,862,111 shares (2008: 183,862,111 shares).
6. An Annual General Meeting of Tottenham Hotspur plc will be held at Bill
Nicholson Way, 748 High Road, Tottenham, London N17 0AP at 2.00pm on 10 December
2009. The annual report and accounts of the Company for the year ended 30 June
2009 will be sent to shareholders shortly and will then be available to be
downloaded from the Company's website www.tottenhamhotspur.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UKSARKVRARUA
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