The directors present their annual report and financial statements for the year ended 31 May 2024.
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.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
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.
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:
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.
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.
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.
The income statement has been prepared on the basis that all operations are continuing operations.
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.
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 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.
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.
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, 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.
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.
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.
The average monthly number of persons (including directors) employed by the company during the year was:
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.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
The company's controlling party is Mr S J Lancaster by virtue of his majority interest in the company's share capital.