Company Registration No. SC698662 (Scotland)
Brechin City Football Club Limited
unaudited financial statements
for the year ended 31 May 2023
Pages for filing with Registrar
Brechin City Football Club Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
Brechin City Football Club Limited
Balance sheet
as at 31 May 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
3,542
7,784
Tangible assets
4
344,431
322,720
347,973
330,504
Current assets
Stocks
3,498
1,775
Debtors
5
28,208
20,268
Cash at bank and in hand
94,683
270,290
126,389
292,333
Creditors: amounts falling due within one year
6
(115,894)
(167,943)
Net current assets
10,495
124,390
Total assets less current liabilities
358,468
454,894
Creditors: amounts falling due after more than one year
7
(46,708)
-
0
Net assets
311,760
454,894
Capital and reserves
Called up share capital
8
406,963
371,250
Share premium account
9
158,216
158,216
Profit and loss reserves
9
(253,419)
(74,572)
Total equity
311,760
454,894

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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 and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Brechin City Football Club Limited
Balance sheet (continued)
as at 31 May 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 18 September 2023 and are signed on its behalf by:
Grant Johnson
Director
Company Registration No. SC698662
Brechin City Football Club Limited
Notes to the financial statements
for the year ended 31 May 2023
- 3 -
1
Accounting policies
Company information

Brechin City Football Club Limited is a private company limited by shares incorporated in Scotland. The registered office is Glebe Park, Trinity Road, Brechin, Angus, DD9 6BJ.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Reporting period

The financial statements represent the period from 01 June 2022 to 31 May 2023. The prior financial year covered a period from 13 May 2021 (date of incorporation) to 31 May 2022, with a trading period from 1 November 2021 to 31 May 2022.

1.3
Turnover

Turnover 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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Player registration
Over the term of the player's contract
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Brechin City Football Club Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
1
Accounting policies (continued)
- 4 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
0%, 10% and 25% straight line basis
Fixtures and fittings
25% straight line basis
Computers
33% straight line basis
Motor vehicles
25% reducing balance basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks 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 stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

Brechin City Football Club Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
1
Accounting policies (continued)
- 5 -
1.8
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.

1.9
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 balance sheet 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 debtors 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 creditors, bank loans and loans from related parties 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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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

1.10
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.

Brechin City Football Club Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
1
Accounting policies (continued)
- 6 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Employees

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

2023
2022
Number
Number
Total
29
31
Brechin City Football Club Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
- 7 -
3
Intangible fixed assets
Player registration
£
Cost
At 1 June 2022
13,000
Additions
5,000
Disposals
(7,500)
At 31 May 2023
10,500
Amortisation and impairment
At 1 June 2022
5,216
Amortisation charged for the year
5,000
Disposals
(3,258)
At 31 May 2023
6,958
Carrying amount
At 31 May 2023
3,542
At 31 May 2022
7,784
4
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2022
326,852
26,137
8,274
12,500
373,763
Additions
20,713
-
0
1,429
11,810
33,952
At 31 May 2023
347,565
26,137
9,703
24,310
407,715
Depreciation and impairment
At 1 June 2022
12,329
25,181
4,483
9,050
51,043
Depreciation charged in the year
5,821
255
3,234
2,931
12,241
At 31 May 2023
18,150
25,436
7,717
11,981
63,284
Carrying amount
At 31 May 2023
329,415
701
1,986
12,329
344,431
At 31 May 2022
314,523
956
3,791
3,450
322,720
Brechin City Football Club Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
- 8 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
19,829
3,112
Other debtors
8,379
17,156
28,208
20,268
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
22,998
74,946
Taxation and social security
8,200
6,722
Other creditors
84,696
86,275
115,894
167,943

Included within other creditors are obligations under finance leases amounting to £2,875 (2022 - £Nil). The finance lease liabilities are secured against the assets concerned.

Grants totalling £50,000 were received during the year in relation to the development of additional hospitality facilities at the football stadium. This grant will be released in line with depreciation on the assets to which the funding relates.

 

Included in other creditors above is £5,000 (2022 - £Nil) of deferred income relating to this grant funding.

7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
46,708
-
0

Included within other creditors are obligations under finance leases amounting to £6,708 (2022 - £Nil). The finance lease liabilities are secured against the assets concerned.

Included in other creditors above is £40,000 (2022 - £Nil) of deferred income relating to the grant funding noted above within creditors due within one year.

8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
406,963
371,250
406,963
371,250
Brechin City Football Club Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
8
Called up share capital (continued)
- 9 -

During the current year from 3 February 2023 to 19 May 2023, 35,713 Ordinary £1 shares were issued at par value.

 

During the prior period two share issues took place;

 

On the 29 October 2021, 12,500 Ordinary £1 shares were issued in exchange for the assets of the old club which were transferred. This gave rise to £158,216 of share premium.

 

On 17 November 2021 a further 358,750 Ordinary £1 shares were issued at par value. At as 31 May 2022 £4,840 of these shares remained unpaid and are shown within other debtors at note 5. This outstanding balance was subsequently settled post period end on 23 June 2022.

9
Reserves
Share premium

The share premium account represents amounts above par value paid by shareholders on issue of shares.

Profit and loss reserves

Profit and loss reserves include all current and prior period retained profits and losses.

10
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Purchases
2023
2022
2023
2022
£
£
£
£
Other related parties
22,470
7,103
2,365
240
Donations
2023
2022
£
£
Other related parties
6,400
26,405
2023
2022
Amounts due to related parties
£
£
Key management personnel
5,543
348
Brechin City Football Club Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
10
Related party transactions (continued)
- 10 -

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Other related parties
1,620
900
11
Directors' transactions
Description
%
Opening
Amounts advanced
Closing
Rate
balance
balance
£
£
£
Loan from Director
-
(4,800)
-
(4,800)
Loan from Director
-
-
(17,547)
(17,547)
(4,800)
(17,547)
(22,347)
12
Controlling party

There was no one controlling party.

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