Company registration number 11530555 (England and Wales)
DELFINO PESCARA 1936 FINANCE PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
DELFINO PESCARA 1936 FINANCE PLC
COMPANY INFORMATION
Directors
L Gramenzi
D Sebastiani
Company number
11530555
Registered office
Bury Lodge
Bury Road
Stowmarket
London
United Kingdom
IP14 1JA
Auditor
Fisher, Sassoon & Marks
43-45 Dorset Street
London
W1U 7NA
DELFINO PESCARA 1936 FINANCE PLC
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 18
DELFINO PESCARA 1936 FINANCE PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Fair review of the business
The company originally raised €1,965,000 by way of a crowdfunding bond issue. The amount raised was advanced to the company parent, Delfino Pescara 1936 S.P.A.
Following the relegation of the Delfino Pescara 1936 club to Serie C in the Italian League, and extension of the bonds repayment date, the repayment of the loan has been postponed to December 2024.The directors are in discussions with bond holders to further extend the repayment date to 31 December 2025 as post year end the parent company did not have the available funds to repay the loan.
The business results are in line with the board's expectations and the results for the year and the financial position at the year end were considered satisfactory.
Development and performance
At the year end, the company had net assets of $70,694 (2023: €67,424)
Key performance indicators
The company's key performance indicators are maintaining overhead expenditure in line with company budgets and meeting interest payments to bond holders.
Directors' statement of compliance with duty to promote the success of the Company
The directors of the company have acted in a way that they consider, in good faith, would most likely promote the success of the company for the benefit of its shareholders, employees and customers as a whole, and in doing so, the directors have considered (amongst other matters):
the likely consequences of any decision in the long term,
the interest of the company's employees,
the need to foster the company's business relationships with customer and others,
the impact of the company's operations on the community and environment,
the desirability of the company maintaining a reputation for high standards of business conduct, and
the need to act fairly among shareholders, employees and customers of the company.
L Gramenzi
Director
30 June 2025
DELFINO PESCARA 1936 FINANCE PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be that of providing funding to its parent.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
L Gramenzi
D Sebastiani
Financial instruments
Treasury operations and Financial instruments
The company operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with company's activities.
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The company does not use interest rate derivatives to manage its exposure to changes due to fix interest rate per contract.
Foreign currency risk
The company is not exposed to material foreign exchange risk.
Credit risk
The board reviews the financial position of the parent to ensure no impairment is required against the carrying value of loan advanced. Investments of any cash surpluses are made with banks which must fulfil credit rating criteria approved by the Board.
Post reporting date events
Subsequent to the financial year-end, the parent company was unable to repay the intercompany loan in the sum of €2,372,374 which was due for settlement in December 2024. As a consequence of the parent company’s failing to repay the loan the company has engaged in negotiations with Bond Holders to extend the bond repayment date to December 2025.
Future developments
There are no matters to report.
Auditor
Fisher, Sassoon & Marks were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
DELFINO PESCARA 1936 FINANCE PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Statement of directors' responsibilities
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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
L Gramenzi
D Sebastiani
Director
Director
30 June 2025
DELFINO PESCARA 1936 FINANCE PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DELFINO PESCARA 1936 FINANCE PLC
- 4 -
We were engaged to audit the financial statements of Delfino Pescara 1936 Finance PLC (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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).
We do not express an opinion on the accompanying financial statements. Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
Basis for disclaimer of opinion
As at the year end the company was owed €2,372,2374 the repayment of which is earmarked to settle loan notes that fell due for repayment in December 2024. At the date of this audit report the receivable has not been repaid and we are informed by the directors that its repayment is dependent on the parent company raising funds through player transfers, utilising proceeds from television rights and obtaining agreement from certain loan note holders of the company to defer repayment of their loan notes until December 2025 .We were unable to obtain sufficient appropriate audit evidence to draw conclusions on the carrying amount of the receivable because there was limited financial information made available from the parent company to confirm its financial position, and the validity of the assumptions and accuracy of parent's forecasted cashflows. Consequently we were unable to determine whether any provision is required against the amount owed by the parent for non recoverability and accordingly. due to the material and pervasive nature of the items outlined above the elements making up the statement of comprehensive income, balance sheet, and statement of changes in equity.
We are therefore unable to form an opinion on the financial statements as a whole.
Opinions on other matters prescribed by the Companies Act 2006
Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion, whether based on the work undertaken in the course of the audit:
• the information given in the strategic report and directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements;
and
• the strategic report and directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
Notwithstanding our disclaimer of an opinion on the financial statements,in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit performed subject to the pervasive limitation described above, we have not identified material misstatements in the strategic report or the directors’ report.
Arising from the limitation of our work referred to above:
• we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
• we were unable to determine whether adequate accounting records have been kept.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
• 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.
DELFINO PESCARA 1936 FINANCE PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DELFINO PESCARA 1936 FINANCE PLC (CONTINUED)
- 5 -
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 is 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.
Auditor's 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 an auditor's report 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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
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.
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the financial services sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, anti-money-laundering, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
understanding the design of the company’s remuneration policies.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates as set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
DELFINO PESCARA 1936 FINANCE PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DELFINO PESCARA 1936 FINANCE PLC (CONTINUED)
- 6 -
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and reviewing the company’s compliance procedures and findings.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or through collusion.
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.
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.
Jonathan Marks (Senior Statutory Auditor)
For and on behalf of Fisher, Sassoon & Marks, Statutory Auditor
Chartered Accountants
43-45 Dorset Street
London
W1U 7NA
30 June 2025
DELFINO PESCARA 1936 FINANCE PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
€
€
Turnover
3
-
-
Administrative expenses
(5,786)
(7,648)
Operating loss
4
(5,786)
(7,648)
Interest receivable and similar income
7
167,456
167,107
Interest payable and similar expenses
8
(157,632)
(159,353)
Profit before taxation
4,038
106
Tax on profit
9
(768)
(757)
Profit/(loss) for the financial year
3,270
(651)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
DELFINO PESCARA 1936 FINANCE PLC
BALANCE SHEET
- 8 -
2024
2023
Notes
€
€
€
€
Current assets
Debtors
10
2,372,374
2,278,091
Cash at bank and in hand
1,100
1,165
2,373,474
2,279,256
Creditors: amounts falling due within one year
11
(2,302,780)
(246,832)
Net current assets
70,694
2,032,424
Creditors: amounts falling due after more than one year
12
-
(1,965,000)
Net assets
70,694
67,424
Capital and reserves
Called up share capital
14
57,100
57,100
Profit and loss reserves
13,594
10,324
Total equity
70,694
67,424
The financial statements were approved by the board of directors and authorised for issue on 30 June 2025 and are signed on its behalf by:
L Gramenzi
D Sebastiani
Director
Director
Company registration number 11530555 (England and Wales)
DELFINO PESCARA 1936 FINANCE PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
Share capital
Profit and loss reserves
Total
€
€
€
Balance at 1 July 2022
57,100
10,975
68,075
Year ended 30 June 2023:
Loss and total comprehensive income
-
(651)
(651)
Balance at 30 June 2023
57,100
10,324
67,424
Year ended 30 June 2024:
Profit and total comprehensive income
-
3,270
3,270
Balance at 30 June 2024
57,100
13,594
70,694
DELFINO PESCARA 1936 FINANCE PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
€
€
€
€
Cash flows from operating activities
Cash absorbed by operations
18
(59,103)
(45,804)
Interest paid
(107,661)
(122,387)
Income taxes paid
(757)
(699)
Net cash outflow from operating activities
(167,521)
(168,890)
Investing activities
Interest received
167,456
167,107
Net cash generated from investing activities
167,456
167,107
Financing activities
Repayment of borrowings
(2,500)
Net cash used in financing activities
-
(2,500)
Net decrease in cash and cash equivalents
(65)
(4,283)
Cash and cash equivalents at beginning of year
1,165
5,448
Cash and cash equivalents at end of year
1,100
1,165
DELFINO PESCARA 1936 FINANCE PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information
Delfino Pescara 1936 Finance PLC is a private company limited by shares incorporated in England and Wales. The registered office is Bury Lodge, Bury Road, Stowmarket, London, United Kingdom, IP14 1JA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in euro, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest €.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern. At the time of approving the financial statements, the directors have a reasonable expectation that the parent company will be able to settle the outstanding intercompany debt by December 2025. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Should the above expectation not be met, the company may need to consider alternative strategic options, including further extension of the bond maturity date or other financial restructuring measures. Were the Company no longer a going concern, adjustments may be required to the carrying value of assets, provisions would be required for the future liabilities arising as a consequence of the Company ceasing business.
1.3
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.4
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors 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.
DELFINO PESCARA 1936 FINANCE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
DELFINO PESCARA 1936 FINANCE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.5
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.6
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
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 when the company has 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.
DELFINO PESCARA 1936 FINANCE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.8
Foreign exchange
Transactions in currencies other than euro 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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2024
2023
€
€
Other significant revenue
Interest income
167,456
167,107
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
€
€
Exchange losses/(gains)
75
(270)
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
€
€
For audit services
Audit of the financial statements of the company
5,150
5,168
DELFINO PESCARA 1936 FINANCE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
2
2
7
Interest receivable and similar income
2024
2023
€
€
Interest income
Interest receivable from group companies
167,456
167,107
2024
2023
Investment income includes the following:
€
€
Interest on financial assets not measured at fair value through profit or loss
167,456
167,107
8
Interest payable and similar expenses
2024
2023
€
€
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
157,631
157,302
Other finance costs:
Other interest
1
2,051
157,632
159,353
9
Taxation
2024
2023
€
€
Current tax
UK corporation tax on profits for the current period
768
757
DELFINO PESCARA 1936 FINANCE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
(Continued)
- 16 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
€
€
Profit before taxation
4,038
106
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
767
20
Tax effect of expenses that are not deductible in determining taxable profit
1
737
Taxation charge for the year
768
757
10
Debtors
2024
2023
Amounts falling due within one year:
€
€
Amounts owed by group undertakings
2,372,374
313,022
Other debtors
69
2,372,374
313,091
2024
2023
Amounts falling due after more than one year:
€
€
Amounts owed by group undertakings
1,965,000
Total debtors
2,372,374
2,278,091
11
Creditors: amounts falling due within one year
2024
2023
Notes
€
€
Other borrowings
13
1,965,000
Corporation tax
768
757
Other taxation and social security
65,215
24,231
Other creditors
266,153
216,182
Accruals and deferred income
5,644
5,662
2,302,780
246,832
DELFINO PESCARA 1936 FINANCE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
12
Creditors: amounts falling due after more than one year
2024
2023
Notes
€
€
Other borrowings
13
1,965,000
13
Loans and overdrafts
2024
2023
€
€
Other loans
1,965,000
1,965,000
Payable within one year
1,965,000
Payable after one year
1,965,000
The loans represent Bonds which are unsecured and carry an interest rate charge of 5% and subject to the terms of the Bond issue a further interest charge not exceeding 3%.
14
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
€
€
Issued and fully paid
Ordinary shares of €1 each
57,100
57,100
57,100
57,100
The company has one class of ordinary shares which carry no rights to fixed income. Each share is entitled to one vote in any circumstances.
15
Events after the reporting date
Subsequent to the financial year-end, the parent company was unable to repay the intercompany loan in the sum of €2,372,374 due for settlement in December 2024. As a direct consequence of the parent company’s failing to repay the loan the company has engaged in negotiations with Bond Holders concerning deferring the repayment date of the bonds which were due in December 2024 until December 2025. These negotiations have yet to be concluded.
16
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
At the year end, the company was owed €2,372,374 (2023: €2,278,091) by its parent company Delfino Pescara 1936 S.P.A. an entity incorporated in Italy. This amount is unsecured and carries a commercial interest charge rate.
17
Ultimate controlling party
DELFINO PESCARA 1936 FINANCE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
17
Ultimate controlling party
(Continued)
- 18 -
The parent company is Delfino Pescara 1936 S.P.A by virtue of its shareholding in the company, and whose registred office is situate at 7 Via Arrone, Pescara, Italy, 65128.
18
Cash absorbed by operations
2024
2023
€
€
Profit/(loss) after taxation
3,270
(651)
Adjustments for:
Taxation charged
768
757
Finance costs
157,632
159,353
Investment income
(167,456)
(167,107)
Movements in working capital:
(Increase)/decrease in debtors
(94,283)
8,074
Increase/(decrease) in creditors
40,966
(46,230)
Cash absorbed by operations
(59,103)
(45,804)
19
Analysis of changes in net debt
1 July 2023
Cash flows
30 June 2024
€
€
€
Cash at bank and in hand
1,165
(65)
1,100
Borrowings excluding overdrafts
(1,965,000)
-
(1,965,000)
(1,963,835)
(65)
(1,963,900)
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