REGISTERED NUMBER: 00045611 (England and Wales)

for

Page

Company Information  

1

Strategic Report  

2

Report of the Directors  

6

Report of the Independent Auditors  

8

Statement of Comprehensive Income

12

Balance Sheet  

13

Statement of Changes in Equity  

15

Cash Flow Statement  

16

Notes to the Cash Flow Statement  

17

Notes to the Financial Statements

19

DIRECTORS:

R G Bates

Lincoln City Supporters' Society Ltd

S L Tointon

C H Nates

J S Wright

G D Levine

H F F Kok

D Lowes

S A Melnick

A J Slater

C J Travers

S Hindocha

H Jabara

G C Rossini

L J Scully

H N Ragland IV

SECRETARY:

R J Parnell

REGISTERED OFFICE:

LNER Stadium

Sincil Bank

LINCOLN

Lincolnshire

LN5 8LD

REGISTERED NUMBER:

00045611 (England and Wales)

AUDITORS:

Nicholsons Audit (Statutory Auditor)

Newland House

The Point

Weaver Road

LINCOLN

Lincolnshire

LN6 3QN

BANKERS:

National Westminster Bank

Market Place

LOUTH

Lincolnshire

LN11 9NX

BUSINESS REVIEW

The key financial and performance indicators for the current and three previous financial years are shown below:

2024

2023

2022

2021

£   

£   

£   

£   

Turnover

6,977

6,527

6,981

5,567

Staff Costs

6,938

5,931

6,236

5,169

Profit/(loss)

(2,981)

(2,636)

(2,052)

(1,404)

Net assets

3,766

2,855

2,439

1,791

Final Position (League 1)

7th

11th

17th

5th

Average League Attendance

8,424

8,486

8,773

N/A

Season review

A fantastic 16-game unbeaten run from mid-January to mid-April saw us push into the top six with one game to go but ultimately miss out on a promotion playoff place by just two points with a final day defeat. This was a remarkable recovery after a disappointing run hampered by injuries to attacking players and red cards culminated in a 2-0 defeat at Blackpool on New Year's Day. The signings of Joe Taylor (on loan) and Jack Moylan, and the return of Freddie Draper from a successful loan spell in League 2 together with Ben House and Reeco Hackett returning from injury were key to the revival. A three game run in which the Imps scored 16 goals with Joe and Jack scoring 6 and 4 times respectively was a particular highlight.

In a disrupted first half to the season, we parted company with head coach Mark Kennedy and his assistant Danny Butterfield with the team sitting 16th in the league. Tom Shaw steadied the ship for a month earning a notable home win over Charlton Athletic during that period before Michael Skubala was appointed as the new permanent head coach on a 4-year deal with Tom as his assistant.

Cup competitions were again a disappointment with defeats to League 2 teams in the first round of the FA Cup and the second round of the EFL Trophy. The Carabao Cup produced the most excitement with a win on penalties over Premier League Sheffield United in the second round followed by a narrow 1-0 defeat in front of a sell-out LNER Stadium to West Ham United.

Turnover

Turnover is analysed into its main components as follows:

2024

2023

£   

£   

Matchday

2,353

2,231

Central distributions and grants

1,768

1,719

Commercial and hospitality

1,750

1,523

Academy grants and fundraising

680

699

Football fortune and miscellaneous income

426

355

6,977

6,527

Matchday revenue was up 5% despite the average attendance declining marginally. Although season ticket income declined this was more than compensated by increased match-by-match attendance from home fans.  Increased income from bar and catering, and attendances in the Carabao Cup.

It was pleasing to register a 16% increase in commercial income while the contribution from retail also increased significantly. Hospitality income was marginally higher.

Football fortune and miscellaneous income was higher with player loan fees received again up significantly but prize money from cup competitions declined with the early exits from the EFL Trophy and FA Cup. Also included was a five-figure compensation fee received from Stoke City for Chris Cohen who not only assisted Tom Shaw during his interim head coach role but also spent 5 months as an assistant head coach under Michael.

Player Trading

The only significant sale during the financial year was that of Lasse Sorensen to Huddersfield Town on 18 June 2024. The profit from the sale was reduced by a sell-on fee due to Lasse's previous club, Stoke City.

Further contingent fees were received from previous sales of Jamie Robson and James Jones, and a small fee was received for Charles Vernam.

Operating loss

Despite the higher turnover, administrative expenses increased by 8.6% from £9.3million to £10.1million resulting in an increased loss of just below £3million compared to £2.6million last year.

The main reason for the increase in costs was sharply higher staff costs, up from £5.9million to £6.9million. This was attributable to a larger pro budget, an increase in commercial staff, the dismissal of our previous manager and his assistant, and general staff increases including the securing of senior key management.

Balance sheet

In order to fund the operating losses, player signings and capital expenditure, the company issued shares for cash amounting to £3.9million. With the majority of that investment from the Jabara family, at the financial year-end, HJ-LCFC Holdings LLC was the largest shareholder in Lincoln City Holdings with 32.2% of the issued shares.

Transfer fees amounted to £332k during the period with the most substantial being a six-figure fee paid for Ethan Hamilton from Accrington Stanley. Other fees included a five-figure fee to sign Jack Moylan and contingent payments paid to former clubs of Ethan Erhahon, Sean Roughan and Ben House.

The Stacey West Community Hub development was completed on time and within budget by the Lindum Group. The final account for the project is being agreed with the overall project costs being around £2.5m (£2.2m being shown in these financial statements in freehold property).

Overall cash at the year-end declined from £1.7million to £1.3million but £0.9million of the cash held last year was ring-fenced towards the Stacey West redevelopment. Net assets were higher by £0.9million at £3.8million.

The increase in long term creditors was again attributable to the receipt of capital grants for the Stacey West project. These grants will be recognised in the profit and loss account over the life of the asset to which it relates. The only true long term debt on the balance sheet, amounting to £492k, relates to bonds issued to fans for various capital projects. A further £135k of bonds, included in current liabilities, will be repaid in the next 12 months.

POST BALANCE SHEET AND FUTURE DEVELOPMENTS

In addition to the sale of Lasse Sorensen in June, Lukas Jensen was sold to Championship club Millwall for a six-figure fee. Both players were entering the last year of their contracts and the proceeds allowed the club to re-invest in replacements as well as increase the depth of the squad to give us a better chance of coping with injuries which hindered us so significantly in the 2023/24 season.

George Wickens and Erik Ring were signed for six-figure fees and JJ McKiernan, Rob Street and Dom Jefferies involved the payment of five-figure fees to their previous clubs. We were also delighted to bring Conor McGrandles back to the club along with the signings of Tom Hamer and out-of-contract players Tom Bayliss, Jamie Pardington, Zach Jeacock and Tendayi Darikwa in a busy summer transfer window. Erik was the first signing under the new Elite Significant Contribution ("ESC") player requirements in terms of revised GBE guidance post Brexit. This gives us the ability to have up to two foreign players in our squad who qualify under the ESC rules.

It is particularly pleasing to see the contribution being made by Academy graduates to the first team squad. It is only six years since the transformation of the Academy began following the resumption of Premier League funding which had ceased while the club was in the National League. At the age of just 21, Sean Roughan has chalked up more than 100 appearances for the Imps and is also a regular in the Republic of Ireland U21 team. Twenty year-old strikers Jovon Makama and Freddie Draper have established themselves in the first team squad with more than 60 and 30 competitive appearances respectively. We are also encouraged by the progress of Oisin Gallagher and MJ Kamson-Kamara who have both been able to make appearances for the club in the EFL Trophy while on loan. We were also delighted to see 17 year-old academy scholar Zane Okoro make his debut as a substitute in the first round of the FA Cup and then start and score against Manchester City U21's in the EFL Trophy.

Despite Hayden Cann and Sam Long moving on in the summer to Dundalk and Bromley respectively, we retain an interest in both players. It is also worth noting that we retain an interest in two former academy players, both at Premier League clubs, with further income dependent on their progress. Fees were generated for both these players when they moved with one being a six-figure sum.

We were delighted to welcome Ron and Andrew Fowler as investors in April. An initial stake of 12.4% in Lincoln City Holdings has increased further to 19.0% and much of the investment into the club subsequent to the year-end has come through their investment vehicle Liquid Investments, Inc. All contributions by directors/investors continue to be via equity and a further 4.5million shares have been issued since the end of June 2024.

It is disappointing that a fairer redistribution of revenue across the English football pyramid has not yet materialised as the Premier League and its clubs rack up tens of millions in legal fees, money that could be so much better spent across the football ecosystem. If ever there was an example that an Independent Regulator is critical to the future of football in this country, this unseemly infighting clearly demonstrates that.

We are therefore encouraged by the introduction of the Football Governance Bill and hope it will make a speedy passage through Parliament giving some hope in the medium term for greater sustainability across the pyramid with better regulation and an element of fairer redistribution.  With the Independent Regulator however only expected to have backstop powers in respect of financial redistribution, there will be limits to which a truly fair redistribution will be implemented. The majority of the power is with the Premier League and even within the EFL, the Championship clubs have far greater clout and there is a risk of the gap widening even further between the Championship and League 1.

Any hope for some effective limits on spending and losses in the short term on the back of a deal with the Premier League consequently fizzled out. With a number of new big spenders in League 1, player costs and transfer fees have exploded this summer and despite an increased pro budget for the 2024/25 season, we now find ourselves with only a fourth quartile budget. To illustrate the insane increase in player expenditure in League 1 this season, the club in the same mid-table ranking we had last season is spending 67% more than our outlay last season.

Even though we anticipate some changes to financial controls to be implemented for the 2025/26 season, similar to the present Salary Cost Management Protocol, there will be no cap on owner contributions in League 1 and League 2. This will continue to permit unlimited spending on player salaries and transfer fees and enable some clubs in League 1 to pay top end Championship money to attract players.

Legal challenges to current regulations are not confined to England with FIFA and UEFA experiencing a number of European court defeats. Although change is long overdue, it does create significant uncertainties for clubs in planning for the future, not least any potential changes to the transfer system following the Diarra case. We hope that both FIFA and UEFA will adopt a more consultative process in reforming, taking into account the views of bodies like the Union of European Clubs, representing over 150 clubs on the continent, of which we have become a member.

Against the background outlined above, we are anticipating another significant deficit similar to the 2023/24 loss. This does not take into account any contributions that may be attained from successful cup runs or further player trading.

ON BEHALF OF THE BOARD:

C H Nates - Director

6 December 2024

The directors present their report with the financial statements of the company for the year ended 30 June 2024.  

PRINCIPAL ACTIVITY

DIVIDENDS

No dividends will be distributed for the year ended 30 June 2024.

DIRECTORS

The directors set out in the table below have held office during the whole of the period from 1 July 2023 to the date of this report unless otherwise stated.

The beneficial interests of the directors holding office during the year to 30 June 2024 in the shares of the company, according to the register of directors interests were as follows:

30/06/2024

30/06/2023

R G Bates

200

200

The Red Imps Community Trust

351,548

344,098

S L Tointon

6,500

6,500

C H Nates

20,000

20,000

J S Wright

200

200

G D Levine

200

200

H F F Kok

200

200

D Lowes

200

3,950

S A Melnick

200

200

A J Slater

2,332

2,332

C Travers

-

243,601

S Hindocha

200

-

H Jabara

200

-

G C Rossini

4,000

-

P C Webster - resigned 02 October 2024

200

200

L J Scully - appointed 03 June 2024

200

-

These directors did not hold any non-beneficial interests in the shares of the company.

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

AUDITORS

The auditors,  Nicholsons Audit (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C H Nates - Director

6 December 2024

Opinion

Basis for opinion

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 opinion.

Conclusions relating to going concern

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.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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.

Opinions on other matters prescribed by the Companies Act 2006

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

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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-

adequate accounting records have not been kept, or 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; or

-

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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.

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.

Based on our understanding of the company and its industry we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation, Salary Cost Management Protocol  and English Football League regulation.

To help us identify instances of non-compliance with these laws and regulations and in identifying and assessing the risk of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

- Inquiring of management and where appropriate those charged with governance as to whether the company is in compliance with laws and regulations.

- Inspecting correspondence, if any, with relevant regulators.

- Communicating to our engagement team identified laws and regulations and remaining alert to any instances of non-compliance throughout our audit; and

- Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.

We also considered those laws and regulations which have a direct effect on the preparation of the financial statements such as tax legislation, the Companies Act 2006 and the reporting framework (FRS102).

Further to this, we evaluated the Director's and managements incentives and opportunities for fraudulent manipulation of the financial statements including the risk of management override of controls and determined the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular valuation and amortisation of player. Work was also targeted at capital expenditure, along with recognition of all revenue streams due to the varying nature.

Our audit procedures in relation to fraud included but were not limited to:

- Making enquiries of the director and management on whether they had knowledge of any actual, suspected or alleged fraud;

- Gaining an understanding of internal controls established to mitigate risks related to fraud;

-  Discussing amongst the engagement team the risks of fraud;

- Addressing the risks of fraud through management override of controls by performing journal entry testing;

- Testing of calculations in respect of regulatory matters; and

- Sensitivity analysis around assumptions used.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

JOANNE BROWN (Senior Statutory Auditor)

for and on behalf of Nicholsons Audit (Statutory Auditor)

Newland House

The Point

Weaver Road

LINCOLN

Lincolnshire

LN6 3QN

19 December 2024

TURNOVER

3

6,976,968

6,526,835

Cost of sales

344,899

410,915

GROSS PROFIT

6,632,069

6,115,920

Administrative expenses

10,076,649

9,348,705

(3,444,580

)

(3,232,785

)

Other operating income

478,011

630,092

OPERATING LOSS

5

(2,966,569

)

(2,602,693

)

Interest payable and similar

expenses

6

14,510

33,371

LOSS BEFORE TAXATION

(2,981,079

)

(2,636,064

)

Tax on loss

7

-

-

LOSS FOR THE FINANCIAL YEAR

(2,981,079

)

(2,636,064

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME

FOR THE YEAR

(2,981,079

)

(2,636,064

)

FIXED ASSETS

Intangible assets

8

412,052

379,604

Tangible assets

9

6,818,836

4,602,270

Investments

10

3

3

7,230,891

4,981,877

CURRENT ASSETS

Stocks

11

2,250

20,474

Debtors

12

1,169,533

1,029,435

Cash at bank and in hand

1,309,605

1,687,335

2,481,388

2,737,244

CREDITORS

Amounts falling due within one year

13

3,627,712

3,472,872

NET CURRENT LIABILITIES

(1,146,324

)

(735,628

)

TOTAL ASSETS LESS CURRENT

LIABILITIES

6,084,567

4,246,249

CREDITORS

Amounts falling due after more than

one year

14

2,318,810

1,391,541

NET ASSETS

3,765,757

2,854,708

CAPITAL AND RESERVES

Called up share capital

17

18,170,865

14,274,076

Revaluation reserve

18

830,200

830,200

Interest reserve

18

-

4,661

Retained earnings

18

(15,235,308

)

(12,254,229

)

SHAREHOLDERS' FUNDS

3,765,757

2,854,708

The financial statements were approved by the Board of Directors and authorised for issue on 6 December 2024 and were signed on its behalf by:

C H Nates - Director