REGISTERED NUMBER: |
Report of the Directors and |
Unaudited Financial Statements for the Year Ended 30 June 2023 |
for |
Leyton Orient Football Club Limited |
REGISTERED NUMBER: |
Report of the Directors and |
Unaudited Financial Statements for the Year Ended 30 June 2023 |
for |
Leyton Orient Football Club Limited |
Leyton Orient Football Club Limited (Registered number: 00088982) |
Contents of the Financial Statements |
for the Year Ended 30 June 2023 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Income Statement | 5 |
Balance Sheet | 6 |
Notes to the Financial Statements | 8 |
Leyton Orient Football Club Limited |
Company Information |
for the Year Ended 30 June 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
01 Meadlake Place |
Thorpe Lea Road |
Egham |
Surrey |
TW20 8HE |
Leyton Orient Football Club Limited (Registered number: 00088982) |
Report of the Directors |
for the Year Ended 30 June 2023 |
The directors present their report with the financial statements of the company for the year ended 30 June 2023. |
REVIEW OF BUSINESS |
It is incredible to think that this is now my seventh report as Chairman of Leyton Orient Football Club and my 65th year supporting our great club. I want to start by thanking our supporters for the contribution you made to Leyton Orient during the 2022 - 23 season. Our fans invested their time, energy, and money in supporting our team to achieve great things on the pitch. |
As you will all know by now, Richie Wellens built on the success he had at the end of the 2021-22 season and led the coaching staff and team, with distinction, by winning League Two and achieving promotion to League One. I also want to recognise Martin Ling, Director of Football, for his contribution in two promotions. |
With this achievement of promotion, the board feels it has fulfilled its promise to the fans that we made in June of 2017 of returning to League One within a six-year period. |
Besides success on the field, we also feel there has been significant improvements in our fan engagement as demonstrated by the record season card sales in the summer of 2023, our regular fan forums and our continued contributions to various supporter-run podcasts. |
The directors have continued to measure performance during several key performance indicators, such as final league position, average league attendance and profitability. |
2021/22 | 2022/23 |
League Position (in League2) | 13th | 1st |
Turnover (£m) | 5.6 | 5.9 |
Operating (Loss) (£m) | (2.3) | (3.9) |
Average League Attendance | 6,830 | 7,841 |
Capital Expenditure (£m) | 0.4 | 1.1 |
Profit on Player Trading (£m) | 0.5 | 0.2 |
Clearly, we are not happy with our profitability position as this resulted in continued injections by our directors and other significant non-board directors. In the next several years we must find ways to improve profitability in order not only to support the cost of our playing squad but to get the club back to a level of financial sustainability for the future. At the upcoming AGM I will be happy to answer any questions relating to this. |
It is always difficult looking back to the previous year just about six months after it has concluded and I'm pleased to say in the current financial year we do see improvement in our financial results led by growth in commercial and matchday revenue I want to call out the contributions made by our CEO Mark Devlin and our new Chief Commercial Officer Ravi Patel, who joined the club last summer. As part of this, we see our 2023-24 finances showing a £2m increase in revenue and a reduction in our overheads. Our current expectation is a reduction in losses of around £1m year-on-year. |
Leyton Orient Football Club Limited (Registered number: 00088982) |
Report of the Directors |
for the Year Ended 30 June 2023 |
However, this is not enough and we face other issues that we need to tackle together. Our board feels that the club has the capability of reaching the Championship. However, due to current capacity constraints at Gaughan Group Stadium, we have determined a move will be necessary in the future. The process is likely to take around a 10-year period and in the meantime we have to leverage the stadium we have in every maximum way. Not only are we effectively achieving "full houses" but around 5,000 new homes are being built within the vicinity of the stadium. Yes, this is a high-class problem but one that will cause everyone frustration as we cannot fulfill the demand that we have. |
Like most things in life, this will be a balancing act and we truly hope that we can encourage our supporters to help us in the task of finding more revenue within the constraints of a limited sized stadium while continuing to invest in our squad and coaching staff to achieve the goal. It is will not be easy but I feel together we can achieve this task. |
Before I close, football finances will be impacted by the pending redistribution agreement between EFL and Premier League clubs that will take place in football and effectively means more money coming from the Premier League to the EFL. Along with that there will hopefully be stronger cost controls introduced. |
In conclusion, please join us for our AGM which will be announced in due course and in the meantime, thank you again for the fantastic support during the season under review. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
Leyton Orient Football Club Limited (Registered number: 00088982) |
Report of the Directors |
for the Year Ended 30 June 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
Leyton Orient Football Club Limited (Registered number: 00088982) |
Income Statement |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
£ | £ |
REVENUE |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(4,257,984 | ) | (2,859,574 | ) |
Other operating income |
OPERATING LOSS | ( |
) | ( |
) |
Interest receivable and similar income |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
Leyton Orient Football Club Limited (Registered number: 00088982) |
Balance Sheet |
30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 4 |
CURRENT ASSETS |
Inventories | 5 |
Debtors | 6 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
8 |
NET LIABILITIES | ( |
) | ( |
) |
Leyton Orient Football Club Limited (Registered number: 00088982) |
Balance Sheet - continued |
30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 9 |
Share premium |
Capital reserves |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Leyton Orient Football Club Limited (Registered number: 00088982) |
Notes to the Financial Statements |
for the Year Ended 30 June 2023 |
1. | STATUTORY INFORMATION |
Leyton Orient Football Club Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances. |
Sale of goods |
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods. |
Rendering of services |
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably. |
Intangible fixed assets other than goodwill |
Intangible fixed assets represent transfer fees and league levies associated with the acquisition of players' registrations which are capitalised as intangible fixed assets and amortised over the period of the player's contract. Provision for any impairment in value, such as through injury or loss of form, is made when it becomes apparent that the diminution in value is present. |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Leyton Orient Football Club Limited (Registered number: 00088982) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks and work in progress |
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
The company has net liabilities of £14,476,631. The accounts have been prepared on going concern basis as the shareholders have confirmed that they will continue to provide financial support to the company for the foreseeable future. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
Leyton Orient Football Club Limited (Registered number: 00088982) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
4. | PROPERTY, PLANT AND EQUIPMENT |
Improvements | Fixtures |
to | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2022 |
Additions |
Reclassification/transfer | ( |
) |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Reclassification/transfer | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
5. | INVENTORIES |
30.6.23 | 30.6.22 |
£ | £ |
Finished goods |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
Leyton Orient Football Club Limited (Registered number: 00088982) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Trade creditors |
Social security and other taxes |
VAT | 161,293 | 143,589 |
Other creditors |
Accruals and deferred income |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Other creditors |
9. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.23 | 30.6.22 |
value: | £ | £ |
Ordinary | £0.25 | 820,000 | 820,000 |
10. | RELATED PARTY DISCLOSURES |
The Company is 90.4% owned by Eagle Investments 2017 Limited (Eagle). Eagle has funded the Company since 2017 by a non-interest bearing loan facility, that comprises creditors falling due after more than one year. |