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Registration number: 00098191

Hartlepool United Football Club Limited

Filleted Annual Report and Financial Statements

for the Year Ended 31 July 2022

 

Hartlepool United Football Club Limited

Contents

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3 to 10

 

Hartlepool United Football Club Limited

Company Information

Director

Mr S Singh

Registered office

Victoria Park
Clarence Road
Hartlepool
TS24 8BZ

Bankers

Yorkshire Bank
118-120 York Road
Hartlepool
TS26 9DE

Auditor

Azets Audit Services
Chartered Accountants & Statutory Auditor
Bede House
Belmont Business Park
Durham
DH1 1TW

 

Hartlepool United Football Club Limited

(Registration number: 00098191)
Statement of Financial Position as at 31 July 2022

Note

2022
£

2021
£

Fixed assets

 

Intangible assets

4

41,972

29,472

Tangible assets

5

212,397

174,742

 

254,369

204,214

Current assets

 

Stocks

193,843

13,786

Debtors

6

317,200

170,698

Cash at bank and in hand

 

1,716,198

1,900,813

 

2,227,241

2,085,297

Creditors: Amounts falling due within one year

7

(1,747,662)

(1,375,846)

Net current assets

 

479,579

709,451

Total assets less current liabilities

 

733,948

913,665

Creditors: Amounts falling due after more than one year

7

(2,640,564)

(3,629,999)

Provisions for liabilities

(20,185)

-

Net liabilities

 

(1,926,801)

(2,716,334)

Capital and reserves

 

Called up share capital

3,501,135

3,501,135

Profit and loss account

(6,825,117)

(7,614,650)

Capital contribution reserve

 

1,397,181

1,397,181

Total equity

 

(1,926,801)

(2,716,334)

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Income Statement.

Approved and authorised for issue by the director on 26 October 2023
 

.........................................
Mr S Singh
Director

 

Hartlepool United Football Club Limited

Notes to the Financial Statements for the Year Ended 31 July 2022

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is Victoria Park, Clarence Road, Hartlepool, TS24 8BZ.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are prepared in sterling which is the functional currency of the entity.

Going concern

At the year end the company had net current assets of £479,579 (2021: £709,451) and net liabilities of £1,926,801 (2021: £2,716,334). The net liability position is largely an amount of £1.3m owed to group undertakings. The company has received a letter of continuing financial support from Clarence 18 Limited, its immediate parent undertaking, and ultimately the controlling shareholders of the group which the company is part of, confirming that support will continue to be provided for a period of no less than 12 months from the date of signing these financial statements.

Forecasts and projections were updated following the teams relegation to the National League. The club has previously spent four seasons in the fifth tier, following relegation in 2017. The balance sheet is in a much stronger position this season, with cash reserves of £1.7m. The Director and controlling shareholder has also pledged support so that the club can continue in operational existence for the foreseeable future, taking into account reasonably possible changes in performance.

Having considered the above, the Director has a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months form the date of signing these financial statements.

The company therefore continues to adopt the going concern basis in preparing its financial statements.

 

Hartlepool United Football Club Limited

Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)

2

Accounting policies (continued)

Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the profit and loss account over the expected useful lives of the assets concerned. Other grants are credited to the profit and loss account as the related expenditure is incurred.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

 

Asset class

Depreciation method and rate

 

Property improvements

10% on cost

 

Fixtures and fittings

15% on reducing balance

 

Stands, turnstiles and fixtures

10% on reducing balance

 

Office equipment

20% on cost

 

Motor vehicles

25% on cost

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

 

Hartlepool United Football Club Limited

Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)

2

Accounting policies (continued)

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Hartlepool United Football Club Limited

Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)

2

Accounting policies (continued)

Revenue recognition

Turnover is stated exclusive of value added tax. Gate receipts and other match day income are recognised on receipt. Season ticket sales, Football League distributions and sponsorship income are recognised equally across the football season. Transfer fees are recognised on the date of execution of the transfer, unless they are contingent in which case they are recognised upon achievement of the contingent event.

Players' contracts

The cost associated with the acquisition of players' registrations are capitalised as intangible fixed assets. The costs are amortised fully over the contract period. Permanent diminution in value below the amortised value, such as through injury or loss of form, is provided for when management become aware that the diminution is permanent.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 120 (2021 - 49).

4

Intangible assets

Player registrations
£

Cost or valuation

At 1 August 2021

29,472

Additions

77,690

Disposals

(60,190)

At 31 July 2022

46,972

Amortisation

Amortisation charge

16,728

Amortisation eliminated on disposals

(11,728)

At 31 July 2022

5,000

Carrying amount

At 31 July 2022

41,972

At 31 July 2021

29,472

 

Hartlepool United Football Club Limited

Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)

5

Tangible assets

Property improvements
£

Fixtures and fittings
£

Stands, turnstiles and fixtures
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost

At 1 August 2021

649,350

462,810

3,635,683

12,552

59,280

4,819,675

Additions

12,000

1,499

3,800

52,042

-

69,341

At 31 July 2022

661,350

464,309

3,639,483

64,594

59,280

4,889,016

Depreciation

At 1 August 2021

609,425

407,349

3,563,725

5,154

59,280

4,644,933

Charge for the year

9,144

8,182

6,654

7,706

-

31,686

At 31 July 2022

618,569

415,531

3,570,379

12,860

59,280

4,676,619

Carrying amount

At 31 July 2022

42,781

48,778

69,104

51,734

-

212,397

At 31 July 2021

39,925

55,461

71,958

7,398

-

174,742

 

Hartlepool United Football Club Limited

Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)

6

Debtors

Note

2022
£

2021
£

Trade debtors

 

96,181

88,551

Amounts owed by group undertakings

9

18,308

8,618

Prepayments

 

200,201

71,264

Other debtors

 

2,510

2,265

 

317,200

170,698

7

Creditors

Creditors: amounts falling due within one year

2022
£

2021
£

Due within one year

Trade creditors

390,771

135,775

Taxation and social security

164,961

126,665

Accruals and deferred income

1,006,248

1,082,934

Other creditors

175,256

30,452

Directors loan accounts

10,426

20

1,747,662

1,375,846

Creditors: amounts falling due after more than one year

Note

2022
£

2021
£

Due after one year

 

Loans and borrowings

1,201,064

1,186,530

Government grants

 

-

3,469

Amounts owed to group undertakings

9

1,299,500

2,175,000

Other creditors

9

140,000

265,000

 

2,640,564

3,629,999

Loans and borrowings consist of a loan received from Sport England under the Sports Winter Survival Programme, this loan is secured by floating charge over all property and undertaking of the company.

The company received government grants of £59,101 to purchase certain equipment. The income has been deferred and continues to be released over the useful economic life of the equipment purchased. Amounts totalling £5,285 (2021: £2,149) were released to the income statement in the period.

 

Hartlepool United Football Club Limited

Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)

8

Financial commitments, guarantees and contingencies

Amounts not provided for in the statement of financial position

The total amount of financial commitments not included in the statement of financial position is £1,134,448 (2021: £1,165,192).

Amounts disclosed in the statement of financial position

Included in the statement of financial position are unpaid pension contributions of £2,384 (2021 - £1,196).

9

Related party transactions

Summary of transactions with parent


At the year end, creditors includes the following amounts due to the parent undertaking:

2022
£

2021
£

Clarence 18 Limited

1,299,500

2,175,000

Summary of transactions with entities with joint control or significant interest

The debtor for amounts due from group undertakings includes £18,308 (2021: £8,618) of loans provided to P&R Construction Limited, a fellow group company.

During the year the company was charged management fees of £37,500 by Prestige Care Group Holdings Limited. The year end creditors includes £Nil (2021: £3,000) due to Prestige Care Group Holdings Limited. This company and Prestige Care Group Holdings Limited are companies under common control.

During the period ended July 2018 the former shareholders of the business, Sage Investments Limited, consolidated the amounts owed to it by the company totalling £1,727,181 into a formal loan agreement. The repayment of the loan in terms of timing and amount is dependent upon the on-field success of the football team. In line with prior year treatment, the directors have made their best assessment of the amounts likely to be payable under the agreement and have reflected a total liability at the year end of £160,000 (2021: £285,000). An amount for £ 1,397,181 of the original balance has already been treated as a capital contribution from the previous shareholders and shown in equity.

 

Hartlepool United Football Club Limited

Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)

10

Parent and ultimate parent undertaking

The company's immediate parent is Clarence 18 Limited, its ultimate parent is Prestige Group Investments Limited, both are incorporated in England and Wales.

The most senior parent entity producing publicly available financial statements is Prestige Group Investments Limited. The consolidated financial statements are available upon request from The Prestige Group Head Office, Roseville Court, Blair Avenue, Ingleby Barwick, United Kingdom, TS17 5BL.

The ultimate controlling party is Mr S Singh.

11

Audit report

The Independent Auditor's Report was unqualified.

The name of the Senior Statutory Auditor who signed the audit report on 27 October 2023 was Joanne Regan FCA, who signed for and on behalf of Azets Audit Services.

Azets Audit Services is a trading name of Azets Audit Services Limited