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REGISTERED NUMBER: SC012085 (Scotland)















Financial Statements for the Year Ended 31st May 2024

for

Queen of the South Football Club,
Limited

Queen of the South Football Club,
Limited (Registered number: SC012085)






Contents of the Financial Statements
for the Year Ended 31st May 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3 to 8


Queen of the South Football Club,
Limited

Company Information
for the Year Ended 31st May 2024







DIRECTORS: C Paterson
W J Hewitson
J E McLinden


SECRETARY: C Paterson


REGISTERED OFFICE: Palmerston Park
Terregles Street
Dumfries
Dumfriesshire
DG2 9BA


REGISTERED NUMBER: SC012085 (Scotland)


SENIOR STATUTORY AUDITOR: Stephen Harman BA CA


AUDITORS: Messrs. Carson & Trotter
Chartered Accountants
Statutory Auditor
123 Irish Street
Dumfries
DG1 2PE


BANKERS: Virgin Money
84 - 86 High Street
Dumfries
Dumfries & Galloway
DG1 2BJ

Queen of the South Football Club,
Limited (Registered number: SC012085)

Balance Sheet
31st May 2024

2024 2023
Notes £    £   
FIXED ASSETS
Intangible assets 4 1,000 -
Tangible assets 5 1,342,090 1,132,090
Investment property 6 301,581 301,581
1,644,671 1,433,671

CURRENT ASSETS
Stocks 23,500 21,500
Debtors 7 149,623 141,386
Cash at bank and in hand 81,878 577,807
255,001 740,693
CREDITORS
Amounts falling due within one year 8 (171,277 ) (201,865 )
NET CURRENT ASSETS 83,724 538,828
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,728,395

1,972,499

PROVISIONS FOR LIABILITIES 9 (56,932 ) (236,932 )
NET ASSETS 1,671,463 1,735,567

CAPITAL AND RESERVES
Called up share capital 7,500 7,500
Share premium 1,010,022 1,010,022
Revaluation reserve 10 227,930 235,285
Retained earnings 426,011 482,760
SHAREHOLDERS' FUNDS 1,671,463 1,735,567

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 18th February 2025 and were signed on its behalf by:





J E McLinden - Director


Queen of the South Football Club,
Limited (Registered number: SC012085)

Notes to the Financial Statements
for the Year Ended 31st May 2024

1. STATUTORY INFORMATION

Queen of the South Football Club, Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The financial statements cover only the individual entity and are presented in Sterling.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The directors have considered the consequences of the recent performance of the company, and within the sector, on the company's ability to continue as a going concern. It is the opinion of the directors that notwithstanding the recent financial performance that the company has faced, it has a strong Balance Sheet with no borrowings and positive cashflow projections going forward and for that reason they believe the club continues to be a Going concern.

Turnover
Turnover represents the net income from the company's activities, excluding Value Added Tax.

Turnover includes all gate receipts, season tickets, advertising, sponsorship, programme sales, hospitality receipts, transfer fees, club shop sales, payments for television rights, aerial rentals and any club organised functions as well as income from the Scottish Football Association and Scottish Football League that is linked directly to the above. It also includes the regular income from the club lottery and any grants and donations that are received in respect of normal trading.

As can be seen in Note 4, this does not include certain specific grants, donations or rents receivable which are defined as 'Other Operating Income'.

Intangible assets - transfer fees
Intangible assets represent monies paid in the form of transfer fees to other football clubs to procure the services of football players. Amortisation is provided at rates calculated to write off this cost in equal instalments over the period of the player's initial contract.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2.5% on reducing balance
Plant and machinery - 20% on reducing balance and 10% on cost
Motor vehicles - 25% on reducing balance

Amounts written off each asset over the estimated useful life represent cost less residual value.

Investment property
During 2014 and 2015 the company undertook a major development project with the former supermarket building next to the ground. This was redeveloped as the 'Queen of the South Arena' which incorporates two indoor football pitches traded by the club as well as a number of unrelated businesses. This property is thus now mixed use, held partly for investment purposes and partly for trading purposes. In accordance with FRS 102 the value of the building has been split between the value attributable to the club and included within Freehold property and the value attributable to investment purposes, shown separately as Investment property. No depreciation has been provided in respect of investment property. This represents a departure from the Companies Act requirements to provide for systematic annual depreciation of fixed assets. The directors consider that the adoption of this policy is necessary in order to give a true and fair view.

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


Queen of the South Football Club,
Limited (Registered number: SC012085)

Notes to the Financial Statements - continued
for the Year Ended 31st May 2024

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Leasing
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Revenue recognition
In accordance with the principles of revenue recognition, income is recognised as the rights to consideration obtained through performance of contractual obligations, and is included in the financial statements when the company is legally entitled to the income.

Other grant income
The directors have chosen to recognise capital grants within the Income Statement based on the performance method permitted by FRS 102. The directors believe that this leads to a more realistic balance sheet for the company.

Queen of the South Football Club,
Limited (Registered number: SC012085)

Notes to the Financial Statements - continued
for the Year Ended 31st May 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors
Trade debtors are amounts due from customers for the sale of goods and services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price and represent the full value of the services charged to customers.

Trade Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date they are presented as non current liabilities.

Borrowings
Interest bearing borrowings are initially recorded at fair value, net of transaction costs. Interest bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transactions costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share Capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 42 (2023 - 44 ) .

4. INTANGIBLE FIXED ASSETS
Transfer
fees
£   
COST
At 1st June 2023 5,000
Additions 2,000
At 31st May 2024 7,000
AMORTISATION
At 1st June 2023 5,000
Amortisation for year 1,000
At 31st May 2024 6,000
NET BOOK VALUE
At 31st May 2024 1,000
At 31st May 2023 -

Queen of the South Football Club,
Limited (Registered number: SC012085)

Notes to the Financial Statements - continued
for the Year Ended 31st May 2024

5. TANGIBLE FIXED ASSETS
Freehold Plant and Motor
property machinery vehicles Totals
£    £    £    £   
COST OR VALUATION
At 1st June 2023 1,488,663 626,517 77,209 2,192,389
Additions - 308,082 - 308,082
At 31st May 2024 1,488,663 934,599 77,209 2,500,471
DEPRECIATION
At 1st June 2023 540,173 486,777 33,349 1,060,299
Charge for year 23,740 63,372 10,970 98,082
At 31st May 2024 563,913 550,149 44,319 1,158,381
NET BOOK VALUE
At 31st May 2024 924,750 384,450 32,890 1,342,090
At 31st May 2023 948,490 139,740 43,860 1,132,090

Cost or valuation at 31st May 2024 is represented by:

Freehold Plant and Motor
property machinery vehicles Totals
£    £    £    £   
Valuation in 2003 237,163 - - 237,163
Valuation in 2015 56,469 - - 56,469
Cost 1,195,031 934,599 77,209 2,206,839
1,488,663 934,599 77,209 2,500,471

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£   
COST OR VALUATION
At 1st June 2023
and 31st May 2024 45,982
DEPRECIATION
At 1st June 2023 27,152
Charge for year 3,770
At 31st May 2024 30,922
NET BOOK VALUE
At 31st May 2024 15,060
At 31st May 2023 18,830

Queen of the South Football Club,
Limited (Registered number: SC012085)

Notes to the Financial Statements - continued
for the Year Ended 31st May 2024

6. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1st June 2023
and 31st May 2024 301,581
NET BOOK VALUE
At 31st May 2024 301,581
At 31st May 2023 301,581

Fair value at 31st May 2024 is represented by:
£   
Valuation in 2003 118,582
Valuation in 2015 28,234
Valuation in 2023 80,000
Cost 74,765
301,581

The QoS Indoor Arena building was valued on an open market basis on 22nd January, 2024 by DM Hall LLP, Chartered Surveyors at £1,000,000. This property has mixed use, being partly held traded by the club and partly held as investment property. On an approximate floorspace basis, it has been allocated as 70% Freehold Property and 30% Investment Property.

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 130,783 100,464
Other debtors 2,855 14,576
Prepayments 15,985 26,346
149,623 141,386

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Hire purchase contracts - 9,196
Trade creditors 36,422 49,588
Social security and other taxes 26,983 14,539
VAT 4,161 6,679
Prepaid income 73,036 93,700
Accrued expenses 30,675 28,163
171,277 201,865

Monies received in advance for the following football season, most typically with regard to the "Shirt Sponsorship Draw", are included within 'Prepaid income'.

9. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 56,932 56,932
Provision for pitch renewal - 180,000
56,932 236,932

Queen of the South Football Club,
Limited (Registered number: SC012085)

Notes to the Financial Statements - continued
for the Year Ended 31st May 2024

9. PROVISIONS FOR LIABILITIES - continued

Pitch
Deferred renewal
tax provision
£    £   
Balance at 1st June 2023 56,932 180,000
Utilised during year - (180,000 )
Balance at 31st May 2024 56,932 -

The deferred taxation provision arises from the requirement under FRS 102 to provide for deferred taxation on unrealised revaluation gains on investment property.

Under the terms of the agreement with Dumfries & Galloway Council with respect to the 3G pitch at Palmerston Park, the club was required to make an annual provision of £20,000 per annum for replacement. The pitch was replaced in the summer of 2023 and this provision was therefore credited back to the profit and loss account.

10. RESERVES
Revaluation
reserve
£   
At 1st June 2023 235,285
Amortised revaluation reserve (7,355 )

At 31st May 2024 227,930

Called up share capital represents the nominal value of shares that have been issued.

Share premium includes any premiums received on issue of share capital.

Revaluation reserve comprises the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. This does not include revaluations on investment property for which revaluations are adjusted within the retained earnings, in line with the requirements of FRS102.

Retained earnings includes all current and prior period retained profits and losses.

Non distributable amounts within retained earnings
Retained earnings includes an unrealised gain of £234,357 recognised on investment property, less a provision of £56,932 for deferred taxation on this unrealised gain. The net total of £177,425 is not distributable under company law.

11. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Stephen Harman BA CA (Senior Statutory Auditor)
for and on behalf of Messrs. Carson & Trotter

12. CAPITAL COMMITMENTS
2024 2023
£    £   
Contracted but not provided for in the
financial statements - 279,981

13. RELATED PARTY DISCLOSURES

During the year under review all of the directors, either personally as individuals, or through other business interests, have taken commercial sponsorships and advertising with the club. However, none of the sums involved were material enough to either party to warrant separate disclosure.