The director presents the strategic report for the year ended 31 May 2024.
The result for the year for the group is set out in the group statement of comprehensive income. The director does not recommend payment of a dividend.
The director considers the key performance indicators of the group to be league status, finishing position of Coventry City Football Club ("the Club"), and the year's operating result.
From a business point of view, the following financial performance results are highlighted, noting that period end 31 May 2023 was for a period of 5 months –
Turnover increased by £18.184M to £29.306M (PE23 £11.122M).
There was an increase of £5.335M in match receipts as result of increased seasonal sales, coupled with improved attendances and increased cup income through reaching the FA Cup semi-final at Wembley. Income from Broadcasting increased by £6.047M through a combination of League distribution income and enhanced TV fees received through coverage of FA Cup fixtures.
Other commercial income showed an increase of £6.801M which arose mainly through increased Retail revenue (having taken the retail operation fully in house), together with prize money attributable to the success achieved in the lengthy FA Cup run.
Accordingly, due to related costs incurred from the additional FA Cup fixtures, plus costs from taking the retail operation in-house, the Cost of Sales increased by £4.924M to £7.920M (PE23 £2.996M).
Operating administrative expenses, excluding amortisation and depreciation, have increased by £17.328M to £27.214M (YE23 £9.886M) – the majority of this increased expenditure was on player wages through the continued investment in the playing squad.
Profit on sale of players showed a significant increase of £23.642M (YE24 £23.678M; PE23 £36K) – this arose mainly from the sale of Viktor Gyokeres and Gus Hamer.
Exceptional income of £540K arose for PE23 and this related mainly to the write back of a withholding tax provision no longer being repayable in relation to loans owed to the previous overseas parent company.
Tax credit of £192K in PE23 relates to research and development tax credit claims for YE 31 May 2022 expenditure – claims in respect of the years ended 31 May 2023 & 2024 are in process at present.
As a result of the significant increase in profit on the sale of players, a profit before tax of £5.008M was achieved for YE 24 (PE23 a loss of £4.246M).
Season 2023/24 reflected the first full year of trading following the change in the ownership of the club during January 2023.
The change in ownership continues to be an exciting venture for the club, and with the debt restructure that took place, the club will, and have, benefitted in many financial aspects, especially with the club no longer being tied to either interest or management charges.
The licence agreement that was negotiated to secure the clubs future of playing its home fixtures at the CBS Arena through to the end of season 2027/28, has given the club a stable base to allow confidence in implementation of the Boards future strategic plans.
Season Review (continued)
Continued infrastructure improvements have been implemented, and the Club can now be proud that they have Training Ground facilities that will encourage future players to join the club, and enhance the improvement of the existing squad. Additionally, the investment in the new pitch installed at the stadium has ensured that the inherited EFL sanction of a 5 points deduction suspended through to the end of 2023/24 season (a situation that arose due to the cancellation of home fixtures at the start of the 2022/23 season as a direct consequence from the playing of Commonwealth Games Rugby Seven fixtures) was successfully avoided.
Although the club were competitive deep into the 2023/24 season, they were unable to repeat the 2022/23 feat of reaching the play-off final, and eventually finished in 9th place. However, through a successful run in the FA Cup, the club were once again able to provide our loyal and passionate supporters with another memorable day at Wembley. The semi-final against Manchester United was truly a memorable day, but unfortunately a day that ultimately ended in disappointment, with the team suffering the heartbreak of another defeat on penalties. Despite the defeat, the players, staff and supporters should all be truly proud of their performance over the 2023/24 season.
Following the disappointment at Wembley, the board have wasted no time in actioning plans that it feels will help achieve the clubs’ ultimate goal of achieving promotion to the Premier League.
The Summer 2022/23 transfer window saw both Viktor Gyokeres and Gus Hamer leave the club, but the transfer fees obtained from their disposals were immediately re-invested into the acquisition of several quality player acquisitions, with the aim of achieving an overall stronger playing squad capable of challenging for promotion to the Premier League on a regular basis.
In order to continue the improvement of the playing squad, further player acquisitions have been made during the Summer 2024/25 transfer window. Despite the player investment made, the finish to the latter Championship games in season 2023/24 and to the disappointing start made in season 2024/25, resulted in the difficult decision to part company with our long serving manager Mark Robins – there is no doubt that Coventry City would not be where it is today without the inspired actions of Mark and his team, and we wish him every success for the future.
The club have moved quickly to bring in Frank Lampard as its new Head Coach, together with Joe Edwards and Chris Jones as his new backroom team. Their combined experiences will ensure they bring to our talented squad, clear understanding of exactly what is needed to succeed at the very top level that we as a Club are striving to reach.
Together with our remarkable fan base we look forward to continuing this exciting journey together.
The Board acknowledges that there are a number of risks and uncertainties which could have a material impact on the group's performance. The group's future income is affected by the club’s performance because significant revenues are dependent upon team performance in the Football League and domestic cup competitions.
In order for the team to remain competitive, significant investment is required on an ongoing basis in both financial and non-financial terms. This investment needs to be balanced with the most important Board responsibility, which is to maintain a financially secure professional football club.
The Board maintains the financial discipline throughout the group to ensure that it is able to continue to operate within its existing facilities.
The group prepares annual budgets and forecasts, and maintains a close working relationship with its financiers and shareholders and is dependent on the continuing support from shareholders. Further detail of the going concern position of the group is set out in note 1.
On behalf of the board
The director presents his annual report and financial statements for the year ended 31 May 2024.
The results for the year are set out on page 9. A review of the business and its principal risks and uncertainties is set out in the strategic report.
No ordinary dividends were paid. The director does not recommend payment of a further dividend.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
The group finances its operations through Director loans and day-to-day through the use of operational bank accounts. The group makes use of financial instruments principally through its operational bank accounts. The director's objectives are to retain sufficient liquid funds to enable the group to meet its day to day requirements as they fall due and to maximise returns on surplus funds where possible. The director believes that this gives the flexibility to release cash resources at short notice and allows the group to take advantage of changing economic conditions as they arise.
The group continues to invest in research and development to enhance our knowledge of injury rehabilitation and performance tracking.
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
Transfers of player registrations subsequent to 31 May 2024, taking into account applicable costs and player acquisitions, resulted in a net £10,962,266 (2023 - £8,918,219) payable by the club.
In addition to the above, subsequent to 31 May 2024, the club received £50,000 (2023: £464,000) and paid £362,015 (2023 - £25,000) in relation to sell-on and contingent contractual clauses for ex-players.
On 7 November 2024, the Club announced the termination of the contract of First Team Manager, Mark Robins. On 28 November 2024, the Club announced Frank Lampard as the new First Team Manager.
In accordance with the company's articles, a resolution proposing that Edwards be reappointed as auditor of the group will be put at a General Meeting.
The director has formed a judgement that the group has adequate resources available to continue operating and to discharge all financial obligations as they fall due for a period of at least 12 months from the date of approval of the financial statements.
The group made a profit for the financial year of £5,007,726 (2023 - £4,053,776 loss), had net current assets of £6,090,175 (2023 - £3,188,708 net current liabilities) and net assets of £34,684,210 (2023 - £29,676,484) at 31 May 2024.
The director has confirmed he will continue to provide such financial support as the group requires to enable it to meet its liabilities as they fall due, for a period of at least 12 months from the date that these financial statements are approved.
The director has prepared detailed cashflow forecasts to assess potential funding requirements for the period to 31 December 2025 which model the impact of the new credit facility provided to the club, and further funds being made available should they be required. The director is confident in his assumption that cash flow forecasts should be based upon the club’s continued participation in the EFL Championship. The director is also confident that there are sufficient resources available to mitigate the additional funding requirements in the remote event that the club is relegated to EFL League One including the procurement of further financial support from the director and the option to generate funds from player sales.
Additionally, the director would not commit the group to any further spend above the current forecasted levels, particularly in relation to the acquisition of players, without first confirming availability of sufficient funding.
Based upon current expectations and with the continued support of the director, the group are forecast to have sufficient resources to meet their liabilities for the period to 31 December 2025.
As such, the director does not consider there to be a material uncertainty in relation to the ability of the group to continue as a going concern and believes that preparing the financial statements on the going concern basis is appropriate.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of Covcityco Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 group's and parent 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 director with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
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 within which the group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, employment law, health and safety regulations and compliance with the EFL handbook, Football League rules and Financial Fair Play.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be in the following areas: timing of recognition of income, the override of controls by management, inappropriate treatment of non-routine transactions and areas of estimation uncertainty specifically recognition of player transfer liabilities and fixed asset valuations. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, review and discussion of non-routine transactions, sample testing on the posting of journals and income transactions and review of accounting estimates for biases.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 an auditor's report 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.
The group statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,752 (2023 - £270 loss).
Covcityco Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is C/O Bcs, Windsor House Station Court, Station Road, Great Shelford, Cambridge, England, CB22 5NE.
The group consists of Covcityco Ltd and all of its subsidiaries.
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.
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.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Covcityco Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 May 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The director has formed a judgement that the group has adequate resources available to continue operating and to discharge all financial obligations as they fall due for a period of at least 12 months from the date of approval of the financial statements.
The group made a profit for the financial year of £5,007,726 (2023 - £4,053,776 loss), had net current assets of £6,090,175 (2023 - £3,188,708 net current liabilities) and net assets of £34,684,210 (2023 - £29,676,484) at 31 May 2024.
The director has confirmed he will continue to provide such financial support as the group requires to enable it to meet its liabilities as they fall due, for a period of at least 12 months from the date that these financial statements are approved.
The director has prepared detailed cashflow forecasts to assess potential funding requirements for the period to 31 December 2025 which model the impact of the new credit facility provided to the club, and further funds being made available should they be required. The director is confident in his assumption that cash flow forecasts should be based upon the club’s continued participation in the EFL Championship. The director is also confident that there are sufficient resources available to mitigate the additional funding requirements in the remote event that the club is relegated to EFL League One including the procurement of further financial support from the director and the option to generate funds from player sales.
Additionally, the director would not commit the group to any further spend above the current forecasted levels, particularly in relation to the acquisition of players, without first confirming availability of sufficient funding.
Based upon current expectations and with the continued support of the director, the group are forecast to have sufficient resources to meet their liabilities for the period to 31 December 2025.
As such, the director does not consider there to be a material uncertainty in relation to the ability of the group to continue as a going concern and believes that preparing the financial statements on the going concern basis is appropriate.
Turnover, which all arises in the United Kingdom, represents match receipts, executive box rentals and income from commercial activities receivable by the group, excluding VAT and trade discounts. Turnover is recognised for match related income in accordance with the matches played. Sponsorship and similar commercial income is recognised over the duration of the respective contracts in line with the contractual terms. Income arising from the fixed element of TV receipts is recognised over the course of the playing season. The non-fixed element of TV receipts relating to match coverage are recognised as the matches are played.
Income from match receipts, sponsorship and commercial contracts, which has been received prior to the year end in respect of future football seasons, is treated as deferred income.
Research expenditure is written off against profits in the year in which it is incurred.
Freehold land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is credited or charged to profit and loss.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
The pension costs charged against profits represent the amount of the benefit payable to the scheme in respect of the accounting period.
Certain employees are members of the Football League Pension and Life Assurance (FLPLA) Scheme and the Football League Players' Benefit Scheme (the "schemes"). The company continues to make contributions in respect of its share of the deficit of these defined benefit pension schemes. Accrual of the benefits on a final salary basis was suspended with effect from 31 August 1999, when actuarial review showed a substantial deficit. As one of the number of participating employers the company is advised only of its share of the scheme's deficit and recognises a liability in respect of this. Contributions payable to the scheme reduce this liability.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Finance costs
Finance costs are charged to the consolidated statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Investment in subsidiaries
Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.
Corresponding amounts
The director has re-analysed certain corresponding amounts within the profit and loss account to make their disclosure more meaningful.
The preparation of financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses, The nature of the company's business is such that there can be unpredictable variation and uncertainty regarding its business, The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources, Actual results may differ from these estimates.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Player transfer costs
The director has to make certain judgements as to whether a liability should be recognised under the terms of the contracts with other football clubs in respect of player transfers. These judgements include the directors' opinion, at the balance sheet date, on the likely league status in the next season. It also requires certain judgements as to whether a player will continue to make the contractually agreed number of first team appearances. Based on these judgements, the director decides on an individual player by player basis as to whether the liability is disclosed as a contingent liability or whether it becomes recognised as a liability in trade creditors in the balance sheet.
Intangible assets, tangible assets and impairment
The director is required to test whether intangible and tangible assets have suffered any impairment. The recoverable amount of cash generating units connected to the recorded value of these assets has been determined based on value in use estimates and compared to the book value to determine if an impairment provision is needed.
Exceptional income in the previous period represents the write back of accrued withholding taxes in relation to loans previously owed to an overseas parent company.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
Eligible staff are members of the Football League Limited Pension and Life Assurance Scheme. The latest valuation of the scheme deficit has shown an underfunding of the scheme and accordingly the group's current share of the liability stands at £334,298 (2023 - £319,032). This is included within creditors.
The group operates a defined contribution pension scheme for the benefit of the employees. The assets of the scheme are administered by trustees in a fund independent from those of the group.
The directors are considered to be the key management personnel. No remuneration was paid in respect of these services provided to the group.
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
Factors that may affect future tax charges
The group has an unrecognised deferred tax asset of £7,535,733 (2023 - £9,847,194). This has not been recognised as its future recoverability is uncertain.
Any players whom the group do not consider to be a long term part of the first team squad and who will therefore not contribute to future cash flows earned by the group are assessed for impairment by considering the carrying value with the group’s best estimate of fair value (being post year-end sales proceeds or expected sales proceeds) less costs to sell. The director is satisfied that no further provision is required.
The carrying value of land and buildings comprises:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Details of the company's subsidiaries at 31 May 2024 are as follows:
Included within trade debtors is £17,815,931 (2023 - £30,000) and included within accrued income is £904,906 (2023 - £5,263) in respect of transfer fees receivable (exclusive of VAT).
Included within creditors due within one year are trade creditors of £6,516,285 (2023 – £580,000) and accruals of £2,406,016 (2023 - £483,528) in respect of actual and probable transfer fees payable (exclusive of VAT).
Included within other creditors due within one year is an amount of £Nil (2023 - £61,200) in respect of a loan advanced by the English Football League ("EFL"). This loan is unsecured and is interest free. In the event of the group defaulting on payment terms, interest will be charged at a rate of 2% above the base rate of the EFL's bankers. In addition, in the event of the Club being promoted or relegated out of the Football League the amount becomes repayable immediately.
Included within other creditors due within one year is an amount of £Nil (2023 - £1,066,668) in respect of a "PAYE" loan advanced by the EFL. This loan is unsecured and is interest free. In the event of the Club being promoted to the Premier League the amount becomes repayable immediately.
Included within creditors due after more than one year are trade creditors of £6,088,450 (2023 – £Nil) and accruals of £855,625 (2023 - £Nil) in respect of actual and probable transfer fees payable (exclusive of VAT).
Included within other loans is an amount of £30,050,000 (2023 - £6,050,000) due to the director, Douglas Richard John King. The loan is under the terms of a credit facility agreement. This facility is unsecured, is interest free and has a maturity date of 28 February 2027.
Net obligations under finance leases are secured on the assets to which they relate.
Certain employees of the group participate in the Football League Pension and Life Assurance (FLPLA) Scheme and the Football League Player' Benefit Scheme. Both schemes are defined benefit schemes co-sponsored by the FA Premier League and the Football League.
Accrual of the benefits on a final salary basis was suspended with effect from 31 August 1999, when actuarial review showed a substantial deficit. As one of the number of participating employers the group is advised only of its share of the scheme's deficit and recognises a liability in respect of this.
The latest valuation of the scheme deficit has shown an understanding of the scheme and accordingly the group's current share of the liability stands at £334,298. This is included within creditors.
Amounts contracted for but not provided in the financial statements:
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The company has taken advantage of the exemption conferred within FRS102 section 33.1A not to disclose transactions between wholly owned members of the same group.
Douglas Richard John King, director, is also a director and shareholder of several related parties with which the group have traded.
During the year, the group made sales of £46,018 (2023 - £Nil), made purchases of £2,663 (2023 - £Nil) and received sponsorship of £300,000 (2023 - £Nil) to and from these related parties. At the 31 May 2024, included within trade debtors are amounts of £25,096 (2023 - £Nil) due from these related parties. No amounts owed to these related parties were outstanding at 31 May 2024 (2023 - £Nil).
As at 31 May 2024 a balance of £30,050,000 (2023 - £6,050,000) was due by the company to the director. The loan is unsecured, is interest free and has a maturity date of 28 February 2027.
Transfers of player registrations subsequent to 31 May 2024, taking into account applicable costs and player acquisitions, resulted in a net £10,962,266 (2023 - £8,918,219) payable by the club.
In addition to the above, subsequent to 31 May 2024, the club received £50,000 (2023: £464,000) and paid £362,015 (2023 - £25,000) in relation to sell-on and contingent contractual clauses for ex-players.
On 7 November 2024, the Club announced the termination of the contract of First Team Manager, Mark Robins. On 28 November 2024, the Club announced Frank Lampard as the new First Team Manager.
The group has, under transfer agreements, a liability to pay additional sums dependent on players' attainment of agreed numbers of first team appearances and any subsequent transfer value. No provision has been made in these accounts for such liabilities as the conditions are not met at the balance sheet date and no reliable estimates can be made of any subsequent transfer values.
Based on transfer agreements signed prior to the year-end the company could potentially receive additional amounts of at least £782,186 (2023 - £190,000). These sums are dependent on the attainment of certain objectives by the player and the club they are now employed by. Conditions have not been met at the balance sheet date and no asset has been recognised.