Company registration number 00232010 (England and Wales)
WORCESTER CITY FOOTBALL CLUB LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
WORCESTER CITY FOOTBALL CLUB LIMITED
COMPANY INFORMATION
Directors
Mr C Layland
Mr M J Pinches
Mr S P Goode
Mr D R Wood
Mr T Harris
Mr S J Lancaster
Mr K J Preece
Mr K Evans
(Appointed 6 June 2023)
Mr R G McKechnie
(Appointed 3 July 2023)
Mr D J Sullivan
(Appointed 15 July 2024)
Secretary
Mr A N Jones
Company number
00232010
Registered office
The County Sports Ground
Claines Lane
Worcester
WR3 7SS
Accountants
Edwards
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
WORCESTER CITY FOOTBALL CLUB LIMITED
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Accountants' report
4
Income statement
5
Statement of financial position
6
Notes to the financial statements
7 - 10
WORCESTER CITY FOOTBALL CLUB LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present their annual report and financial statements for the year ended 31 May 2024.

Review of business

The results for year ended 31 May 2024 are set out in the financial statements. The performance on the field was much improved compared to the 22/23 season with the Club being crowned League Champions and also reaching the semi-finals of the FA Vase competition. This success was mirrored in significant increases in revenue from gate receipts and cup prize money, and this also fed into income from catering outlets and the club shop. We also saw a significant increase in revenue from sponsorship and advertising, clearly helped by the on-field success but moreover benefitting from the employment of a dedicated Commercial Manager. Inevitably, the success on the pitch meant a greater number of games played and, with employment of the Commercial manager, led to sizeable increases in Club overheads to service that success. Our ability to invest in the football side was greatly aided by a very generous donation of £40,000 by long standing supporter and sponsor Mr M J Pinches. In addition, the business saw the first allocation of money from the majority shareholder, Mr S J Lancaster, of £50,000. Of this £25,000 was received as a donation, and £25,000 as a call against unpaid shares. Overall, the operating loss was reduced by 44% from 2023, but the increase in paid share capital meant that the net asset situation improved by £9,173.

 

Directors

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

Mr C Layland
Mr M J Pinches
Mr S P Goode
Mr D R Wood
Mr N C V Jones
(Resigned 21 October 2024)
Mr T Harris
Mr S J Lancaster
Mr K J Preece
Mr K Evans
(Appointed 6 June 2023)
Mr R G McKechnie
(Appointed 3 July 2023)
Mr D J Sullivan
(Appointed 15 July 2024)
Future developments

During the year and after the year end the company has appointed additional directors with significant business experience to help drive the company forward and maximise the marketing potential of the Club's main asset, its well supported name in the community. The directors are confident that this will return the Club to a breakeven situation. During the year one of the directors, Mr S J Lancaster, has acquired a controlling interest in the company and has committed to investing significant sums into the development of the Club. This money will help solidify the Club's status in the English football pyramid system and enable it to climb that pyramid and in so doing enhance its potential to generate income. To help this growth, the Club have engaged with a local property developer with regards to building our own ground as part of a larger community sports facility. Whilst this is in the early stages of the planning process, it is hoped that it will crystalise into the medium-term goal of having our own stadium with all the income generating opportunities that it would provide us. Although no longer a community owned Club, the ethos of commitment to the community and working with it to the benefit of all continues.

 

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

WORCESTER CITY FOOTBALL CLUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
On behalf of the board
Mr S P Goode
Director
2 December 2024
WORCESTER CITY FOOTBALL CLUB LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

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

 

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

 

 

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

WORCESTER CITY FOOTBALL CLUB LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF WORCESTER CITY FOOTBALL CLUB LIMITED FOR THE YEAR ENDED 31 MAY 2024
- 4 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Worcester City Football Club Limited for the year ended 31 May 2024 which comprise the income statement, the statement of financial position and the related notes from the company’s accounting records and from information and explanations you have given us.

 

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

This report is made solely to the board of directors of Worcester City Football Club Limited, as a body, in accordance with the terms of our engagement letter dated 20 November 2024. Our work has been undertaken solely to prepare for your approval the financial statements of Worcester City Football Club Limited and state those matters that we have agreed to state to the board of directors of Worcester City Football Club Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Worcester City Football Club Limited and its board of directors as a body, for our work or for this report.

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

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

Edwards
2 December 2024
Chartered Accountants
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
WORCESTER CITY FOOTBALL CLUB LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 5 -
2024
2023
Notes
£
£
Revenue
306,204
124,404
Administrative expenses
(322,422)
(152,382)
Operating loss
(16,218)
(27,978)
Investment income
391
-
0
Loss before taxation
(15,827)
(27,978)
Tax on loss
-
0
-
0
Loss for the financial year
(15,827)
(27,978)

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

WORCESTER CITY FOOTBALL CLUB LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MAY 2024
31 May 2024
- 6 -
2024
2023
Notes
£
£
£
£
Current assets
Inventories
2,209
1,733
Trade and other receivables
4
52,421
3,344
Cash and cash equivalents
61,994
115,359
116,624
120,436
Current liabilities
5
(60,748)
(73,733)
Net current assets
55,876
46,703
Equity
Called up share capital
6
182,615
157,615
Retained earnings
(126,739)
(110,912)
Total equity
55,876
46,703

For the financial year ended 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

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

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

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

The financial statements were approved by the board of directors and authorised for issue on 2 December 2024 and are signed on its behalf by:
Mr S P Goode
Director
Company Registration No. 00232010
WORCESTER CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
1
Accounting policies
Company information

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

1.1
Accounting convention

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

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

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

1.2
Going concern

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

 

The company still retains significant cash reserves, principally derived from the ground disposal in 2013. Whilst those reserves were initially depleted quite rapidly the rate has decreased in recent seasons. Aided by the input of funds from the new majority shareholder, reserves have increased in these financial statements.

 

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

 

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

 

1.3
Revenue

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

1.4
Inventories

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.5
Cash and cash equivalents

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

WORCESTER CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 8 -
1.6
Financial instruments

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

 

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

 

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

Basic financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

1.7
Equity instruments

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

1.8
Employee benefits

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

 

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

 

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

1.9
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

WORCESTER CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
2
Judgements and key sources of estimation uncertainty

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

 

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

3
Employees

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

2024
2023
Number
Number
Total
24
15
4
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
25,377
2,047
Other receivables
27,044
1,297
52,421
3,344
5
Current liabilities
2024
2023
£
£
Trade payables
1,356
928
Taxation and social security
15,845
2,593
Other payables
43,547
70,212
60,748
73,733
6
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
182,615
157,615
182,615
157,615

During the year, the company's new controlling party Mr S J Lancaster made a call against 25,000 previously uncalled Ordinary shares of £1 each. These shares were fully paid at par subsequent to the year end.

WORCESTER CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
7
Operating lease commitments
Lessee

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

2024
2023
£
£
25,000
50,000
8
Controlling party

The company's controlling party is Mr S J Lancaster by virtue of his majority interest in the company's share capital.

 

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