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REGISTERED NUMBER: 00089767 (England and Wales)















SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022






SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

CONTENTS OF THE FINANCIAL STATEMENTS
For The Year Ended 31 July 2022










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 7

Income Statement 11

Other Comprehensive Income 12

Balance Sheet 13

Statement of Changes in Equity 14

Cash Flow Statement 15

Notes to the Cash Flow Statement 16

Notes to the Financial Statements 18


SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE)

COMPANY INFORMATION
For The Year Ended 31 July 2022







DIRECTORS: R Martin
G J Lockett
D M Markscheffel
F Van Wezel





REGISTERED OFFICE: 2nd Floor
4 Beaconsfield Road
St Albans
Hertfordshire
AL1 3RD





REGISTERED NUMBER: 00089767 (England and Wales)





AUDITORS: Hilden Park Accountants Limited
Chartered Accountants
& Statutory Auditors
Hilden Park House
79 Tonbridge Road
Hildenborough
Tonbridge
Kent
TN11 9BH

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

STRATEGIC REPORT
For The Year Ended 31 July 2022


The directors present their strategic report for the year ended 31 July 2022.

Introduction

The filing of these accounts and the drafting of this statement have been delayed in the first instance by the COVID19 pandemic and most recently due to a Group company restructure. This statement comments on the period in question but also references changes that have been made post the accounting period.

Roots Hall Stadium was built in 1955 (with the principal stand of timber construction), the age and method of construction of the stadium means that costly maintenance is required in order to obtain a Safety Certificate. This position is unsustainable and consequently the stadium is in need to substantial redevelopment. The East Stand needs replacing in its entirety and the other stands will require refurbishment.

In June 2021 the Board appointed Tom Lawrence as CEO. Tom is a solicitor and an experienced football administration professional having worked as CEO in another League 1 Club. Tom conducted a strategic review of all parts of the business with the objective of creating an environment for success so the Club can become high performing (post June 21). Whilst the implementation of the plan has been impacted by issues arising as a result of the parent company's cash flow problems worked improvements have been made. The culture has improved and significant gains have been made.

REVIEW OF BUSINESS
The Club started the season under the Stewardship of Phil Brown, Phil had significant pedigree and has enjoyed success at all levels of the EFL, including seeing the Club's promotion from League 2 to League 1 in the 2015/2016 season. Although Phil was unable to help the Club avoid relegation the Board, at the time, felt that he was the correct appointment to lead a charge to gain promotion from The National League back to the EFL at the first time of asking.

Unfortunately Phil's stewardship did not work out and the Club dismissed him and his Assistant in October 2021.

Following a robust recruitment process and many interviews with candidates, former Club Captain, Kevin Maher was appointed as Head Coach, supported by Darren Currie (Assistant) and Mark Bentley (First Team Coach). The coaches have bought into the new culture that has been created and have helped create an environment for success and the Club has started to become high performing.

Under Kevin's leadership the first team finished the 2021/22 season in 13th position, pulling clear of the relegation zone. In the 2022/23 season the first team finished in 8th position narrowly missing out on a playoff spot. But for a ten point deduction, the team would most likely finish in the play off spots in the 2023/24 season - clear progression.

The Board are grateful for the hard work undertaken by Kevin and his team and believe we are well placed for next season.

At the time of writing (8 April 2024) South Eastern Leisure UK Limited are in the process of selling its shares in the Club.

PRINCIPAL RISKS AND UNCERTAINTIES
Our current stadium is not fit for purpose in the modern era, with increasing costs year on year to ensure we maintain the standards demanded by the authorities. For that reason alone, support from the Council is crucial.

The Club has been for many years, and continues to be, reliant on its parent company, Martin Dawn Plc, for support. Without this support the Club would not be able to continue operations albeit since September 2023 the club has been funded by a consortium who have exchanged contracts to purchase the club, completion targeted for Spring 2024.

Roots Hall is the spiritual home of Southend United and fans and stakeholders are supportive of the plans to remain at the current ground rather than move to the Fossetts Farm stadium. However substantial redevelopment works are required to improve the matchday experience and to create non matchday revenue to support the losses made through the football operations.


SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

STRATEGIC REPORT
For The Year Ended 31 July 2022

FINANCIAL KEY PERFORMANCE INDICATORS
1. The Operating loss was £2,558m for the year (£922k in 2021);
2. The Loss for the year was £2,717m compared to £1,004m in 2021;
3. The Company continues solely because of the Group funding which has increased from £15.6m to £16.1m during the year under review;
4. The current year loss has been funded by the previously mentioned increase in loans from Group Undertakings

ON BEHALF OF THE BOARD:





R Martin - Director


19 April 2024

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

REPORT OF THE DIRECTORS
For The Year Ended 31 July 2022


The directors present their report with the financial statements of the company for the year ended 31 July 2022.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of a Professional Football Club.

DIVIDENDS
No dividends will be distributed for the year ended 31 July 2022.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 August 2021 to the date of this report.

R Martin
G J Lockett
D M Markscheffel
F Van Wezel


SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

REPORT OF THE DIRECTORS
For The Year Ended 31 July 2022

Principal risks and uncertainties

The Company is exposed to a variety of risks. These range from the wider effects of the general economy and external competition to those more specific to the Company, such as its own financial strength and size. There are also added risks associated with operating an old stadium, which is becoming increasingly difficult to maintain to the latest safety regulations. The Board regularly review these risks and their potential impact on the Company. The Board monitors the Company's performance through use of regular financial information and management reports. The Board focuses on the Company's levels of profitability across individual business sectors, liquidity and balance sheet strength.

Treasury operations and financial instruments

The Company operates a treasury function which is responsible for managing the liquidity and interest risks associated with the Company's activities. The Company's principal financial instruments are loans, the main purpose of which is to raise finance for the Company's operations. In addition, the Company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.

Liquidity risks

The Company manages its cash and borrowing requirements in order to minimise interest expense, whilst ensuring the Company has sufficient liquid resources to meet the operating needs of the business.

Future developments

The Club continues to seek improvements in its turnover and trading performance albeit this has been hampered by relegation from the EFL to the NL. In order to move towards a sustainable breakeven position (and with the Fossett Farm stadium plans being discarded) the focus will now be on redeveloping Roots Hall particularly, the East Stand. The plan is to create a commercial hub which may include a substantial conference and banqueting business, office space and other event space. It is likely that the kiosks and toilets at the rear of the west stand will be replaced too. The South, the newest stand, requires some attention and, in time, it is likely that the North will be replaced in its entirety too. The Directors are of the opinion that growth in revenue streams will be greatly aided by the move to the new stadium. In addition the running costs will be dramatically reduced with a modern state of the art facility and most importantly, the new stadium will more appropriately address the varied needs of the whole community.

The Company is dependant on funding from its major shareholder and parent company, South Eastern Leisure (UK) Limited and the Directors would like to thank them for this financial support.

Charitable donations

The Company provides a significant number of local charities, football teams and schools with free tickets and signed merchandise. The Company also provides resources and accommodation to the Southend United Community and Educational Trust, a registered charity. The Club has not quantified the cost of the resource given, even though it is substantial and sustained. The club has no intention of recovering this cost from the Trust as it is part of our Corporate Social responsibilities' of which we are proud.


SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

REPORT OF THE DIRECTORS
For The Year Ended 31 July 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, 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). 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Hilden Park Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





R Martin - Director


19 April 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE)


Qualified opinion
We have audited the financial statements of Southend United Football Club Limited (The) (the 'company') for the year ended 31 July 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 July 2022 and of its loss for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion
The Company owns a Soccer Dome and this is carried at a value of £434,122 within fixed assets in the Statement of Financial Position as at 31 July 2022. We were unable to obtain sufficient appropriate audit evidence from third parties in order to confirm that this value is still appropriate. Consequently, we were unable to determine whether any adjustment to this amount was necessary.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Material uncertainty related to going concern
We draw attention to the income statement in the financial statements, which indicates that the company incurred a net loss of £2,717,380 during the year ended 31 July 2022 and, as of that date, the company's liabilities exceeded its assets by £21,366,584. As such this indicates that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our audit opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

As described in the 'Basis for qualified opinion' section, our audit report is qualified in resect of the carrying value of the Soccer Dome. Information on the operating loss and loss for the year in the strategic report may also be materially misstated for the same reason.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE)


Opinions on other matters prescribed by the Companies Act 2006
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report.

Arising solely from the limitation on the scope of our work relating to fixed assets, referred to above:
- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
- we were unable to determine whether adequate accounting records have been kept.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made.


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE)


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and determined that the most significant which have a direct material effect on the amounts and disclosures in the financial statements are the Companies Act 2006 and The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

We also identified other laws and regulations which do not have a direct effect on the amounts and disclosures in the financial statements, but which compliance is fundamental to the entity's operations including Employment Law, Health and Safety Law, Data Protections Laws (including UK General Data Protection Regulation (GDPR), Food Hygiene and the National League regulations and enquires were made with management regarding procedures in place to ensure compliance.

Having reviewed the laws and regulations applicable to the company, we designed and performed audit procedures to obtain sufficient appropriate evidence. Specifically we:

- Assigned an engagement team to the audit that collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
- Enquired with management on any non compliance with laws and regulations.
- Reviewed the legal expense accounts and legal correspondence to identify potential litigation or claims involving the entity.
- Reviewed internal policies and procedures and external guidance.
- Reviewed the completeness and accuracy of associated disclosures made in the financial statements.

We assessed the susceptibility of the company's financial statements to material misstatement and fraud and in doing so:
- Considered whether there were areas of the financial statements particularly susceptible to fraud and enquired with management as to any known or suspected instances of fraud and their assessment of fraud risk.
- Considered whether management have incentives and opportunities to manipulate financial results and determined the key audit risks related to completeness of income and creditors and management override of controls.
- The risk of management override of controls has been reviewed and audited, including through testing journal entries, accounting estimates and other adjustments for appropriateness. Furthermore, analytical procedures were undertaken to identify any unusual or unexpected relationships and transactions and the rationale behind these was investigated.
- The risk of completeness of income has been reviewed and audited, including through substantive testing, along with a review of the appropriateness of the accounting policy concerning income recognition and completing detailed cut off testing either side of the balance sheet date.
- Designed and performed audit procedures to obtain sufficient appropriate evidence including substantive testing in relation to creditors.

The audit has been planned and performed in such a way as to best identify risks of material misstatement, however the inherent limitations of audit procedures means that there remains a risk that material misstatements may not be identified. In particular we are aware of the inherent difficulties in detecting irregularities and irregularities that result from fraud may be more difficult to detect than irregularities from error due, for example, to override of controls, collusion or misrepresentations. In addition, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE)

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Paul Matthews BSc FCA (Senior Statutory Auditor)
for and on behalf of Hilden Park Accountants Limited
Chartered Accountants
& Statutory Auditors
Hilden Park House
79 Tonbridge Road
Hildenborough
Tonbridge
Kent
TN11 9BH

19 April 2024

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

INCOME STATEMENT
For The Year Ended 31 July 2022

31/7/22 31/7/21
Notes £    £   

TURNOVER 3 3,362,888 3,954,593

Cost of sales 3,843,849 4,275,529
GROSS LOSS (480,961 ) (320,936 )

Administrative expenses 2,086,467 863,062
(2,567,428 ) (1,183,998 )

Other operating income 9,801 261,676
OPERATING LOSS 5 (2,557,627 ) (922,322 )


Interest payable and similar expenses 6 159,753 81,670
LOSS BEFORE TAXATION (2,717,380 ) (1,003,992 )

Tax on loss 7 - -
LOSS FOR THE FINANCIAL YEAR (2,717,380 ) (1,003,992 )

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

OTHER COMPREHENSIVE INCOME
For The Year Ended 31 July 2022

31/7/22 31/7/21
Notes £    £   

LOSS FOR THE YEAR (2,717,380 ) (1,003,992 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(2,717,380

)

(1,003,992

)

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

BALANCE SHEET
31 July 2022

31/7/22 31/7/21
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 79,860 5,821
Tangible assets 9 450,932 1,287,814
530,792 1,293,635

CURRENT ASSETS
Stocks 10 12,470 9,964
Debtors 11 719,794 808,748
Cash at bank and in hand 19,387 24,361
751,651 843,073
CREDITORS
Amounts falling due within one year 12 22,619,910 20,723,392
NET CURRENT LIABILITIES (21,868,259 ) (19,880,319 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(21,337,467

)

(18,586,684

)

CREDITORS
Amounts falling due after more than one
year

13

29,117

62,520
NET LIABILITIES (21,366,584 ) (18,649,204 )

CAPITAL AND RESERVES
Called up share capital 16 169,488 169,488
Share premium 17 676,702 676,702
Retained earnings 17 (22,212,774 ) (19,495,394 )
SHAREHOLDERS' FUNDS (21,366,584 ) (18,649,204 )

The financial statements were approved by the Board of Directors and authorised for issue on 19 April 2024 and were signed on its behalf by:





R Martin - Director


SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

STATEMENT OF CHANGES IN EQUITY
For The Year Ended 31 July 2022

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 August 2020 169,488 (18,491,402 ) 676,702 (17,645,212 )

Changes in equity
Total comprehensive income - (1,003,992 ) - (1,003,992 )
Balance at 31 July 2021 169,488 (19,495,394 ) 676,702 (18,649,204 )

Changes in equity
Total comprehensive income - (2,717,380 ) - (2,717,380 )
Balance at 31 July 2022 169,488 (22,212,774 ) 676,702 (21,366,584 )

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

CASH FLOW STATEMENT
For The Year Ended 31 July 2022

31/7/22 31/7/21
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 349 (70,265 )
Interest paid (159,753 ) (81,670 )
Net cash from operating activities (159,404 ) (151,935 )

Cash flows from investing activities
Purchase of intangible fixed assets (100,000 ) (18,290 )
Purchase of tangible fixed assets (10,783 ) (6,826 )
Government grants received 9,801 261,676
Net cash from investing activities (100,982 ) 236,560

Cash flows from financing activities
New loans in year 350,000 64,900
Loan repayments in year (96,262 ) (132,788 )
Interest paid 1,674 -
Net cash from financing activities 255,412 (67,888 )

(Decrease)/increase in cash and cash equivalents (4,974 ) 16,737
Cash and cash equivalents at beginning of
year

2

24,361

7,624

Cash and cash equivalents at end of year 2 19,387 24,361

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

NOTES TO THE CASH FLOW STATEMENT
For The Year Ended 31 July 2022


1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31/7/22 31/7/21
£    £   
Loss before taxation (2,717,380 ) (1,003,992 )
Depreciation charges 12,591 70,120
Loss on disposal of fixed assets 835,074 -
Amortisation of intangible assets 25,961 41,964
Increase in amounts owed to groups 470,103 1,299,608
Government grants (9,801 ) (261,676 )
Finance costs 159,753 81,670
(1,223,699 ) 227,694
Increase in stocks (2,506 ) (2,927 )
Decrease/(increase) in trade and other debtors 88,954 (387,340 )
Increase in trade and other creditors 1,137,600 92,308
Cash generated from operations 349 (70,265 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2022
31.7.22 1.8.21
£    £   
Cash and cash equivalents 19,387 24,361
Year ended 31 July 2021
31.7.21 1.8.20
£    £   
Cash and cash equivalents 24,361 7,624


SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

NOTES TO THE CASH FLOW STATEMENT
For The Year Ended 31 July 2022


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.8.21 Cash flow At 31.7.22
£    £    £   
Net cash
Cash at bank and in hand 24,361 (4,974 ) 19,387
24,361 (4,974 ) 19,387
Debt
Debts falling due within 1 year (102,392 ) (288,815 ) (391,207 )
Debts falling due after 1 year (62,520 ) 33,403 (29,117 )
(164,912 ) (255,412 ) (420,324 )
Total (140,551 ) (260,386 ) (400,937 )

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 July 2022


1. STATUTORY INFORMATION

Southend United Football Club Limited (The) 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in pounds sterling and rounded to the nearest pound.

Going concern
The financial statements have been prepared on the going concern basis. The Directors are confident that its major shareholder and parent company, South Eastern Leisure (UK) Limited, will continue to provide the necessary funds to the Company through their financing facilties. However, there can be no certainty in these matters. On this basis, the Directors consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from a withdrawal of funding facilities.

Critical accounting judgements and key sources of estimation uncertainty
There were no critical judgments made in the process of applying the Company's accounting policies.

There were no key assumptions concerning the future, and other key sources of estimation uncertainty at
the balance sheet date, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year.

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 July 2022


2. ACCOUNTING POLICIES - continued

Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
i) the Company has transferred the significant risks and rewards of ownership to the buyer;
ii) the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
iii) the amount of revenue can be measured reliably;
iv) it is probable that the Company will receive the consideration due under the transaction; and
v) the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
i) the amount of revenue can be measured reliably;
ii) it is probable that the Company will receive the consideration due under the contract;
iii) the stage of completion of the contract at the end of the reporting period can be measured
reliably; and
iv) the costs incurred and the costs to complete the contract can be measured reliably.

Intangible assets
The costs associated with the acquisition of player registrations are capitalised as intangible fixed assets. These costs are amortised over the period of their contract on a straight line basis. An impairment review is carried out at the end of each financial year to establish if any events or changes in circumstances indicate the carrying values may not be recoverable. Signing on fees and subsequent appearance fees are accounted for in the period in which they become payable or receivable.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Long leasehold - 33% straight line
Fixtures & fittings - 33% straight line
Motor vehicles - 20% on cost

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

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 July 2022


2. ACCOUNTING POLICIES - continued

Financial instruments
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 July 2022


3. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31/7/22 31/7/21
£    £   
Operations and other income 373,332 493,592
Player trading income 211,264 1,135,926
Centre of Excellence Income 466,948 441,844
Sales - League Income 1,160,278 1,179,457
Sales - Season Tickets 474,276 275,624
Advertising Income 173,679 127,614
Shop royalties income 78,400 30,175
Television Income 14,000 15,000
Sales - Food/Drink 327,996 5,361
Premier League support 82,715 250,000
3,362,888 3,954,593

4. EMPLOYEES AND DIRECTORS
31/7/22 31/7/21
£    £   
Wages and salaries 2,706,602 3,164,958
Social security costs 252,170 297,242
Other pension costs 16,867 17,735
2,975,639 3,479,935

The average number of employees during the year was as follows:
31/7/22 31/7/21

Playing, Training and Coaching 71 69
Establishment and ground maintenance 46 48
Directors 4 5
121 122

31/7/22 31/7/21
£    £   
Directors' remuneration - -

The total key management personnel remuneration during the year was £179,568 (2021: £91,138).

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 July 2022


5. OPERATING LOSS

The operating loss is stated after charging:

31/7/22 31/7/21
£    £   
Other operating leases 11,899 13,742
Depreciation - owned assets 12,591 70,120
Loss on disposal of fixed assets 835,074 -
Players' registrations amortisation 25,961 41,964
Auditors' remuneration 24,000 22,525

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31/7/22 31/7/21
£    £   
Bank loan interest 1,327 -
Loan interest 158,426 81,670
159,753 81,670

7. TAXATION

Analysis of the tax charge
No liability to UK corporation tax arose for the year ended 31 July 2022 nor for the year ended 31 July 2021.

8. INTANGIBLE FIXED ASSETS
Players'
registrations
£   
COST
At 1 August 2021 322,737
Additions 100,000
Disposals (314,037 )
At 31 July 2022 108,700
AMORTISATION
At 1 August 2021 316,916
Amortisation for year 25,961
Eliminated on disposal (314,037 )
At 31 July 2022 28,840
NET BOOK VALUE
At 31 July 2022 79,860
At 31 July 2021 5,821

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 July 2022


9. TANGIBLE FIXED ASSETS
Long Fixtures Motor Office
leasehold & fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 August 2021 1,360,961 2,489,444 40,250 42,689 3,933,344
Additions - 3,433 7,350 - 10,783
Disposals (835,074 ) - - - (835,074 )
At 31 July 2022 525,887 2,492,877 47,600 42,689 3,109,053
DEPRECIATION
At 1 August 2021 519,272 2,043,319 40,250 42,689 2,645,530
Charge for year 6,279 5,945 367 - 12,591
At 31 July 2022 525,551 2,049,264 40,617 42,689 2,658,121
NET BOOK VALUE
At 31 July 2022 336 443,613 6,983 - 450,932
At 31 July 2021 841,689 446,125 - - 1,287,814

10. STOCKS
31/7/22 31/7/21
£    £   
Stocks 12,470 9,964

11. DEBTORS
31/7/22 31/7/21
£    £   
Amounts falling due within one year:
Trade debtors 228,813 318,493
Other debtors 38,097 434,663
Prepayments and accrued income 442,544 45,192
709,454 798,348

Amounts falling due after more than one year:
Other debtors 10,340 10,400

Aggregate amounts 719,794 808,748

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 July 2022


11. DEBTORS - continued

During 1987, the Company entered into a joint venture agreement ("the agreement") to build a block of flats on land owned by the Company. The agreement specified that both parties would retain equity shares in each unit of leasehold property which would be realised no later than five years from the date of sale of each unit. The equity shares allowed the joint venture partners to participate in the agreed values of the leasehold interests on sale and any subsequent increase in value if sold within five years of granting the lease.

Thus the equity share debtor of £10,340 (2021 - £10,460) represents the amounts due to the Company, after provisions, in respect of its share in the total sale price of each unit of leasehold property.

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/7/22 31/7/21
£    £   
Bank loans and overdrafts (see note 14) 9,787 10,044
Other loans (see note 14) 381,420 92,348
Trade creditors 1,658,652 1,382,504
Amounts owed to group undertakings 16,117,403 15,647,300
Social security and other taxes 1,146,848 1,950,343
VAT 580,164 -
Other creditors 937,200 526,304
Accruals and deferred income 1,788,436 1,114,549
22,619,910 20,723,392

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31/7/22 31/7/21
£    £   
Bank loans (see note 14) 29,117 38,181
Other loans (see note 14) - 24,339
29,117 62,520

14. LOANS

An analysis of the maturity of loans is given below:

31/7/22 31/7/21
£    £   
Amounts falling due within one year or on demand:
Bank loans 9,787 10,044
Other loans 381,420 92,348
391,207 102,392

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 July 2022


14. LOANS - continued
31/7/22 31/7/21
£    £   
Amounts falling due between one and two years:
Bank loans - 1-2 years 10,043 10,044
Other loans - 1-2 years - 24,339
10,043 34,383

Amounts falling due between two and five years:
Bank loans - 2-5 years 19,074 28,137

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31/7/22 31/7/21
£    £   
Within one year - 1,420

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/7/22 31/7/21
value: £    £   
677,488 Ordinary shares £0.25 169,488 169,488

17. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 August 2021 (19,495,394 ) 676,702 (18,818,692 )
Deficit for the year (2,717,380 ) (2,717,380 )
At 31 July 2022 (22,212,774 ) 676,702 (21,536,072 )

18. ULTIMATE PARENT COMPANY

South Eastern Leisure UK Limited is regarded by the directors as being the company's ultimate parent company.

South Eastern Leisure UK Limited prepares group financial statements and copies can be obtained from Roots Hall Stadium, Southend On Sea, Essex, SS2 6NQ.

SOUTHEND UNITED FOOTBALL CLUB
LIMITED (THE) (REGISTERED NUMBER: 00089767)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 July 2022


19. CONTINGENT LIABILITIES

Under the terms of certain contracts for the transfer of players' registrations, future payments may be due, dependant on the future transfer value attained for certain players, It is not possible to quantify the maximum liability that could be payable. In addition, where payments due for player transfers cannot be accurately determined at the year end, only those amounts actually agreed have been included in these financial statements. Any subsequent amounts will be included when they have been agreed.

20. RELATED PARTY DISCLOSURES

DM Markscheffel is a Director of the Company. At the year end, the Company owed £116,699 (2021 - £116,699) to DM Markscheffel.

During the year G Lockett, a Director of the Company, continued his loan to Southend United Football Club Limited. At the year end the Company owed £155,424 (2021 - £155,424) in respect of the capital portion of this loan. The Company also owed G Lockett £37,418 (2021 - £37,418) at the year end. A sum was outstanding at the year end from Gary Lockett for £540 (2021 - £540). Ticket sales of £Nil (2021 - £820) were made during the year to SP Broker Services; a company in which Gary Lockett has a controlling interest.

South Eastern Leisure UK Limited

South Eastern Leisure UK Limited ("SEL") is the direct parent undertaking. The amount owed to SEL and related companies at the year end was £15,117,403 (2021 - £14,467,300). This amount is included in creditors falling due within one year.

Mezcal Investments

Mezcal Investments Limited owns 50% of SEL. In 2006 the Company received loans from Mezcal Investments Limited amounting to £1,000,000. At the year end £1,000,000 (2021 - £1,000,000) remained outstanding.