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REGISTERED NUMBER: 00088982 (England and Wales)















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: Mr Nigel Travis
Mr David Guy Travis
Mr Matthew Richard Porter
Mr Marshall James Taylor
Mr Richard James Emmett
Mr Nikolaus Dieter Semaca
Mr Rodney Kent Teague II
Mr Richard Coleman Parry





REGISTERED OFFICE: Brisbane Road
Leyton
London
E10 5NE





REGISTERED NUMBER: 00088982 (England and Wales)





ACCOUNTANTS: Providence Financial Limited
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.

Mr Nigel Travis
Mr David Guy Travis
Mr Matthew Richard Porter
Mr Marshall James Taylor
Mr Richard James Emmett
Mr Nikolaus Dieter Semaca
Mr Rodney Kent Teague II
Mr Richard Coleman Parry


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:





Mr Nigel Travis - Director


16 January 2024

Leyton Orient Football Club Limited (Registered number: 00088982)

Income Statement
for the Year Ended 30 June 2023

30.6.23 30.6.22
£    £   

REVENUE 5,903,028 5,601,440

Cost of sales 381,895 565,338
GROSS PROFIT 5,521,133 5,036,102

Administrative expenses 9,779,117 7,895,676
(4,257,984 ) (2,859,574 )

Other operating income 349,976 565,519
OPERATING LOSS (3,908,008 ) (2,294,055 )

Interest receivable and similar income 1,925 3
LOSS BEFORE TAXATION (3,906,083 ) (2,294,052 )

Tax on loss - -
LOSS FOR THE FINANCIAL YEAR (3,906,083 ) (2,294,052 )

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 1,849,796 1,033,781

CURRENT ASSETS
Inventories 5 254,281 61,173
Debtors 6 1,246,554 1,630,290
Cash at bank and in hand 1,216,838 425,765
2,717,673 2,117,228
CREDITORS
Amounts falling due within one year 7 3,257,761 1,757,218
NET CURRENT (LIABILITIES)/ASSETS (540,088 ) 360,010
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,309,708

1,393,791

CREDITORS
Amounts falling due after more than
one year

8

15,786,339

11,964,339
NET LIABILITIES (14,476,631 ) (10,570,548 )

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 9 820,000 820,000
Share premium 1,161,810 1,161,810
Capital reserves 4,295,500 4,295,500
Retained earnings (20,753,941 ) (16,847,858 )
SHAREHOLDERS' FUNDS (14,476,631 ) (10,570,548 )

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2023 in accordance with Section 476 of the Companies Act 2006.

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 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 16 January 2024 and were signed on its behalf by:





Mr Nigel Travis - Director


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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - Remaining Life on Lease
Plant and machinery - 25% on cost
Fixtures and fittings - 25% on cost
Motor vehicles - 20% on cost

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 248 (2022 - 233 ) .

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 968,151 777,140 541,317 16,843 2,303,451
Additions 894,878 162,269 - - 1,057,147
Reclassification/transfer - 10,223 (10,223 ) - -
At 30 June 2023 1,863,029 949,632 531,094 16,843 3,360,598
DEPRECIATION
At 1 July 2022 103,244 677,549 472,034 16,843 1,269,670
Charge for year 143,956 72,070 25,106 - 241,132
Reclassification/transfer - 14,225 (14,225 ) - -
At 30 June 2023 247,200 763,844 482,915 16,843 1,510,802
NET BOOK VALUE
At 30 June 2023 1,615,829 185,788 48,179 - 1,849,796
At 30 June 2022 864,907 99,591 69,283 - 1,033,781

5. INVENTORIES
30.6.23 30.6.22
£    £   
Finished goods 254,281 61,173

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.23 30.6.22
£    £   
Trade debtors 661,779 1,135,370
Other debtors 108 2,194
Prepayments and accrued income 584,667 492,726
1,246,554 1,630,290

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 940,246 561,802
Social security and other taxes 365,625 132,114
VAT 161,293 143,589
Other creditors 60,094 116,270
Accruals and deferred income 1,730,503 803,443
3,257,761 1,757,218

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
30.6.23 30.6.22
£    £   
Other creditors 15,786,339 11,964,339

9. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.23 30.6.22
value: £    £   
3,280,000 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.