Company registration number 00232010 (England and Wales)
WORCESTER CITY FOOTBALL CLUB LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
WORCESTER CITY FOOTBALL CLUB LIMITED
COMPANY INFORMATION
Directors
Mr C Layland
Mr M J Pinches
Mr S P Goode
Mr D R Wood
Mr N C V Jones
Mr T Harris
(Appointed 5 December 2022)
Mr S J Lancaster
(Appointed 10 October 2022)
Mr K J Preece
(Appointed 10 October 2022)
Mr K Evans
(Appointed 6 June 2023)
Mr R G Mckechnie
(Appointed 3 July 2023)
Secretary
Mr A N Jones
Company number
00232010
Registered office
The County Sports Ground
Claines Lane
Worcester
WR3 7SS
Accountants
Edwards
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
WORCESTER CITY FOOTBALL CLUB LIMITED
CONTENTS
Page
Directors' report
1
Directors' responsibilities statement
2
Accountants' report
3
Income statement
4
Statement of financial position
5
Notes to the financial statements
6 - 9
WORCESTER CITY FOOTBALL CLUB LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -

The directors present their annual report and financial statements for the year ended 31 May 2023.

Review of business

The results for year ended 31 May 2023 are set out in the financial statements.

 

The weak performance on the field had a negative effect on gate receipts and on the ability to fundraise, and whilst costs were well controlled and slightly down on the previous year, this has led to a deterioration in financial performance which had been improving since the move back to Worcester.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr C Layland
Mr M J Pinches
Mr S P Goode
Mr D R Wood
Mr N C V Jones
Mr T Harris
(Appointed 5 December 2022)
Mr S J Lancaster
(Appointed 10 October 2022)
Mr K J Preece
(Appointed 10 October 2022)
Mr K Evans
(Appointed 6 June 2023)
Mr R G Mckechnie
(Appointed 3 July 2023)
Future developments

The 2022/23 season was a difficult one on the pitch and this in turn was reflected in the financial results for the year. During the year and after the year end, the company has appointed additional directors with significant business experience to help drive the company forward and maximise the marketing potential of the club's main asset, its well supported name in the community. A full-time commercial manager has been appointed to increase the income earning potential. The directors are confident that this will return the club to a break-even situation. Since the year end, one of the directors, Mr S J Lancaster, has acquired a controlling interest in the company and has committed to investing significant sums into the development of the club. This money will help solidify the club's status in the English football pyramid system and enable it to climb that pyramid and in so doing enhance its potential to generate income. Whilst no longer a community owned club, the ethos of commitment to the community and working with it to the benefit of all continues.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Mr S P Goode
Director
5 February 2024
WORCESTER CITY FOOTBALL CLUB LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2023
- 2 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

WORCESTER CITY FOOTBALL CLUB LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF WORCESTER CITY FOOTBALL CLUB LIMITED FOR THE YEAR ENDED 31 MAY 2023
- 3 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Worcester City Football Club Limited for the year ended 31 May 2023 which comprise the income statement, the statement of financial position and the related notes from the company’s accounting records and from information and explanations you have given us.

 

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.

This report is made solely to the board of directors of Worcester City Football Club Limited, as a body, in accordance with the terms of our engagement letter dated 3 January 2023. Our work has been undertaken solely to prepare for your approval the financial statements of Worcester City Football Club Limited and state those matters that we have agreed to state to the board of directors of Worcester City Football Club Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Worcester City Football Club Limited and its board of directors as a body, for our work or for this report.

It is your duty to ensure that Worcester City Football Club Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Worcester City Football Club Limited. You consider that Worcester City Football Club Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Worcester City Football Club Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Edwards
5 February 2024
Chartered Accountants
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
WORCESTER CITY FOOTBALL CLUB LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2023
- 4 -
2023
2022
£
£
Revenue
124,404
151,895
Administrative expenses
(152,382)
(157,365)
Loss before taxation
(27,978)
(5,470)
Tax on loss
-
0
-
0
Loss for the financial year
(27,978)
(5,470)

The income statement has been prepared on the basis that all operations are continuing operations.

WORCESTER CITY FOOTBALL CLUB LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MAY 2023
31 May 2023
- 5 -
2023
2022
Notes
£
£
£
£
Current assets
Inventories
1,733
1,709
Trade and other receivables
4
3,344
3,994
Cash and cash equivalents
115,359
85,189
120,436
90,892
Current liabilities
5
(73,733)
(16,211)
Net current assets
46,703
74,681
Equity
Called up share capital
6
157,615
157,615
Retained earnings
(110,912)
(82,934)
Total equity
46,703
74,681

For the financial year ended 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 5 February 2024 and are signed on its behalf by:
Mr S P Goode
Director
Company Registration No. 00232010
WORCESTER CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 6 -
1
Accounting policies
Company information

Worcester City Football Club Limited is a private company limited by shares incorporated in England and Wales. The registered office is The County Sports Ground, Claines Lane, Worcester, WR3 7SS.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The company has sustained a loss on its operations during the year under review, but the situation is predicted to stabilise to breakeven.

 

The company still retains significant cash reserves, principally derived from the ground disposal in 2013. Whilst those reserves were initially depleted quite rapidly the rate has decreased in recent seasons, and the input of funds from the new majority share holder will further stabilise the situation.

 

The directors have continued to take steps to place the company in a better trading position, but nevertheless the uncertainties that are inevitable in the sector that it operates mean that there will be always be an element of doubt on the company’s ability to continue as a going concern in the years to come.

 

After making full enquiries and considering these uncertainties, the directors consider it appropriate to prepare the financial statements on a going concern basis for this year. Further information in respect of this is set out in the Directors’ Report.

 

1.3
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. Generally, income is recognised in the accounting period to which it relates.

1.4
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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.

1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

WORCESTER CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 7 -
1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.8
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.9
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leases asset are consumed.

WORCESTER CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
15
16
4
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
2,047
-
0
Other receivables
1,297
3,994
3,344
3,994
5
Current liabilities
2023
2022
£
£
Trade payables
928
1,541
Taxation and social security
2,593
1,566
Other payables
70,212
13,104
73,733
16,211
6
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
157,615
157,615
157,615
157,615
WORCESTER CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 9 -
7
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
50,000
74,750
8
Events after the reporting date

Since the year end the shares held by Worcester City Football Club Supporters Ltd were acquired by Simon Lancaster, and he now owns the controlling interest. The contractual agreement for the acquisition requires Mr Lancaster to provide funding of £500,000 over the course of the next 5 seasons, these funds are by way of donation to the company and are not repayable.

 

9
Controlling party

At 31 May 2023, Worcester City Football Club Supporters Ltd owned 51.81% of the company's ordinary share capital, however on review of their shareholding structure the company's directors are of the view that that there was no individual controlling party of this entity.

 

As outlined in note 8, subsequent to the year end 153,000 shares held by Worcester City Football Club Supporters Ltd were acquired by Simon Lancaster, and he now owns a controlling interest in the company.

 

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