The directors present the strategic report for the year ended 31 March 2025.

Turnover from continuing activities is attributable to the operations of The Blackburn Rovers Football and Athletic Limited (“the Club”), including its subsidiary, Blackburn Rovers Women Football Club Limited.

The increase in turnover to £24.3m (2024: £22.7m), was mainly due to the increase provided by the EFL’s new Broadcasting deal, which contributed an additional £1.9m. Commercially, the Club saw retail sales increase by £0.4m but a lack of success in the Cup competitions saw a decrease of £0.6m in cup matchday revenues.

Operating expenditure increased by £0.9m to £43.9m, despite a significant investment in squad wages, operating expenditure was kept under control by tight management of other operating costs, including utilities and business rates.

Interest payable increased to £2.0m from £0.7m due to the cost of forward financing player transactions, the Club deemed this appropriate to bolster cash flow funding for player and capital expenditure.

The Club remains focused on attaining success on the pitch whilst ensuring compliance with the League’s Profit and Sustainability rules. Driving commercial revenues is key to the long-term success of the Club alongside developing players through the academy. This continued focus enabled the Club to make appropriate changes to the playing squad, resulting in a profit on disposal of player assets of £13.9m (2024: £22.9m).

As a result of the above, a loss before tax arose of £7.7m (2024: profit £1.8m).

Throughout the year, Blackburn Rovers Women Football Club Limited, a subsidiary of The Blackburn Rovers Football and Athletic Club Limited, continued to operate. The Club separates the activities of women's and girls’ football from the main club.

The board constantly monitors new developments and assesses the threats to the business by close monitoring of the sectors in which it operates.

The board considers the carrying value of the company's investment in its subsidiary of £86.1m (2024 - £86.1m) to be a fair value of the investment at 31 March 2025. The board has also assessed the recoverability of the receivable due from its subsidiary, of £134m (2024 - £134m), and do not consider a provision against non-recovery to be required. The receivable balance remains disclosed as due within one year since there are no contractual terms in place for repayment.

The directors are of the opinion that the timing and extent of the recoverability of the loan depends on promotion to and sustained membership of the Premier League. This would also enhance the market valuation of BRFC to support the current carrying value of the investment. Therefore, the investment and the advanced funds disclosed within this company's (Venky's London Limited) balance sheet have not been impaired at the balance sheet date.

The club finished 7th (2024 - 19th) in the 2024/​2025 season in the Championship.

Business risks identified include the challenges the Club will face to maintain and improve its league status. During the year under review, the Club was FFP compliant and traded without restriction.

The key matters impacting the directors' assessment of the group's and company's ability to continue trading as a going concern are set out in note 1.4 of the financial statements.

The board ensures compliance with all relevant rules and regulations, in particular those laid down by the FA, Football League, Premier League, UEFA and FIFA. Any change to the regulations of these bodies could have an impact on the company as they cover areas such as competition format, distribution of media income, player eligibility and operation of the transfer market. The board ensures compliance with all relevant rules and regulations and monitors the impact of any potential changes.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

The principal activity of the company is investing in commercial and sporting ventures and the principal activity of the group is presently that of a professional football club (The Blackburn Rovers Football and Athletic Limited) with related commercial activities.

The results for the year are set out on page 9.

No ordinary dividends were paid.The directors are unable to recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The directors refer to the accounting policy in note 1.4 to the financial statements which sets out a detailed explanation on assessments made in regard to going concern.

The directors continue to adopt the going concern basis in preparing the financial statements.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

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.

Post balance sheet events are disclosed in note 26 to the financial statements.

The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 group and company, and of the profit or loss of the group 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;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

Qualified opinion

We have audited the financial statements of Venkys London Limited (the 'parent company') and its subsidiary (the 'group') for the year ended 31 March 2025 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 the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2025 and of the group's loss for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion

The company balance sheet of the parent company, Venkys London Limited, includes amounts invested in and loaned to its subsidiary, The Blackburn Rovers Football and Athletic Limited (“BRFC”), totalling £220 million. These amounts are stated at their initial cost and the directors have not included any provision for impairment in respect of these amounts.

Given the existence of indicators of impairment, namely the operational losses of BRFC over a number of years, we have been unable to obtain sufficient appropriate audit evidence to support that the recoverable amount of fixed asset investments and amounts owed by group undertakings is likely to be equal to or greater than the carrying amount of these assets.

This matter impacts the standalone financial results of the parent company, Venkys London Limited, and not the consolidated financial position of the group headed by the parent company or the financial results of BRFC.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw attention to note 1.4 of the financial statements, which describes an ongoing legal matter involving the wider group and the potential impact this could have on Venkateshwara Hatcheries Pvt. Ltd's ("VHPL") ability to freely remit funds to its overseas subsidiaries, including this group and company. Until such time as the legal matter is concluded satisfactorily, thereby enabling VHPL to freely remit funds to its overseas subsidiaries, including this group and company, a material uncertainty exists that may cast significant doubt on the group and the company's ability to continue as a going concern.

Our opinion is not modified in this respect.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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:

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

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

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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

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.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

• the nature of the industry and sector, control environment and business performance including the design of the group's remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;

• results of our enquiries of management about their own identification and assessment of the risks of irregularities;

• the matters discussed among the audit engagement team including significant component audit teams regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;

• any matters we identified having obtained and reviewed the group's documentation of their policies and procedures relating to:

  • identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

  • detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  • the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the group's performance profit measures and other key performance indicators to meet remuneration targets, externally communicated targets and English Football League Profit and Sustainability requirements. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation, tax legislation and football governing body regulations.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• enquiring of management concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

• in addressing the identified risks of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

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 £23,554 (2024 - £153,354 loss).

Venkys London Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is c/o Squire Patton Boggs (UK) LLP, 60 London Wall, London EC2M 5TQ.

The group consists of Venkys London Limited and 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.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. In the consolidated group accounts, the excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

The consolidated financial statements incorporate those of Venkys London Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

All financial statements are made up to 31 March 2025, although the statutory year ends are 30 June. 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.

Non-controlling interests represent the nominal value of the share capital held by non-controlling shareholders in subsidiaries. No proportion of the deficit on accumulated reserves has been allocated.

The group had net current liabilities of £11,598,563 as at 31 March 2025 (2024 - £4,365,749) and reported an operating loss of £19,667,149, for the year ended 31 March 2025 (2024 - £20,367,731). In common with many football clubs, the group's main subsidiary, The Blackburn Rovers Football and Athletic Limited ("BRFC"), may continue to make operating losses and incur net cash outflows depending on a number of variables, including the success of the team in league and cup competitions and the level of transfer activity.

BRFC is funded through a bank overdraft facility and shareholder loans, and in view of the current financial position, it remains reliant on its ability to maintain existing and obtain additional funding as necessary.

In managing the finances of BRFC, the directors remain mindful of the need to ensure it will comply with the Championship Profitability and Sustainability rules.

As part of the directors' assessment of going concern for the group, they have prepared detailed cash flow forecasts for the period to the end of June 2027. These forecasts indicate that BRFC will require significant funding in addition to the current facilities available to it.

The amount of additional funding required will be dependent on the net proceeds of any player trading, on field performance, and availability of bank facilities. In view of this the directors have received confirmation from the ultimate parent company, Venkateshwara Hatcheries Private Limited ("VHPL"), that it has sufficient funds and is willing to provide such additional financing as may be required to fund Venkys London Limited (“VLL”) and BRFC, to the extent necessary for them to continue to trade and to pay their liabilities as and when they become due, for the 12 months following approval of these financial statements and thereafter for the foreseeable future, even in the event of the bank facility not being renewed.

The directors of VLL have confirmed that VLL will not recall the amount outstanding of £133,951,338, included in creditors due in less than one year within the balance sheet of BRFC as at 31 March 2025, within twelve months from the date of approval of these financial statements, and that VLL will continue to provide financial support to BRFC.

The directors would like to bring to the attention of readers of these financial statements an ongoing legal matter involving the ultimate parent company, Venkateshwara Hatcheries Private Limited (“VHPL”) and the Directorate of Enforcement (“ED”) in India, whereby the ED have queried the application of funds remitted by VHPL to one of its subsidiaries. It is important to note that this does not include remittances made to BRFC.

The matter has resulted in temporary restrictions by the ED of remittances of funds to all the overseas subsidiaries of VHPL, including BRFC through its intermediate holding company, VLL.

The directors are pleased to confirm that the ED issued a No Objection Certificate, dated 12 March 2024, which confirmed that VHPL has been granted permission to make a remittance of £15 million to its wholly owned subsidiary, namely VLL, the immediate parent of BRFC. This permission is subject to certain conditions which have been met already or that will be met prior and subsequent to the remittance being made.

On receipt of the remittance by VLL, that company will be able to remit those funds onwards to BRFC without restriction or conditions imposed. The directors can confirm that remittances have been made to BRFC under this arrangement.

Based upon the latest position of the legal matter, at the date of approval of these financial statements the directors remain optimistic that the matter should reach a formal conclusion in the coming months, which should then allow the free remittance of funds to resume, without any conditions imposed. In the event of a delay to the conclusion of the legal matter, the directors are satisfied that another No Objection Certification to remit additional funds could be granted, based upon the previous precedent, were this to be necessary.

However, until the legal matter is formally concluded, there still remains a possibility that developments in the matter could lead to a future restriction in the remittance of funds to BRFC. The directors consider that the ongoing legal matter therefore creates a material uncertainty which may cast significant doubt on the group’s ability to remain a going concern.

Despite this, the directors wish to reiterate that no issues with the future remittance of funds are expected, but await the formal conclusion of the legal matter before this can be stated categorically.

Subject to the matter outlined above, based on the forecasts prepared, and including the remittances expected to be received, the directors are satisfied that the group and company will have sufficient available funds to meet their liabilities as they fall due for the foreseeable future and have therefore prepared these financial statements on a going concern basis.

Turnover is stated net of Value Added Tax and amounts due to the Premier League, Football League, Football Association and visiting football clubs. It includes gate receipts, executive boxes, sponsorships, merchandising, advertising, television fees, Football / Premier League pool and sundry related income.

Gate receipts and other match day revenue is recognised over a football season as the matches occur. Merchandising income is recognised at the point of sale. Other revenue comprising media and commercial income is apportioned evenly over the football season or contract term as appropriate.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the profit and loss account over its estimated economic life.

Negative goodwill arising on acquisition is included within fixed assets and released to the profit and loss account in the periods in which the fair values of the non-monetary assets purchased in the same acquisition are recovered whether through depreciation or sale.

Other Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

The costs associated with the acquisition of new players' registrations are capitalised as intangible fixed assets. These costs are fully amortised, in equal annual instalments, over the period of the players' initial contract. The external costs of securing an extension or renewal of an existing contract for both internally produced and externally purchased players are capitalised and amortised over the period of the players' new contract.

Signing on fees and other contingent fees payable to players as a result of the occurrence of one or more uncertain events are expensed when the event occurs.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and assets in the course of construction are 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 recognised in the profit and loss account.

Investments in subsidiaries are measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Other investments held as fixed assets are measured at cost less provision for impairment.

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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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.

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.

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.

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.

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 group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade 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.

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 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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Deferred grants are release over the life of the assets to which they relate.

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.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of fixed assets and release of negative goodwill

An impairment loss is recognised whenever the carrying amount of an asset or its income-generating unit exceeds its recoverable amount. Impairment losses are recognised in the profit and loss account.

Negative goodwill arising on acquisition is included within fixed assets and released to the profit and loss account in the periods in which the fair values of the non-monetary assets purchased in the same acquisition are recovered whether through depreciation or sale.

The carrying value of tangible fixed assets is an area where the directors exercise their judgement over useful lives and residual values.

Intra-group investments and loans

As disclosed in the Strategic Report, the parent company, Venkys London Limited, has an investment of £86.1m in the shares of The Blackburn Rovers Football and Athletic Limited, a subsidiary of the parent company and has also advanced funds, amounting to £134m, to this subsidiary in the form of a loan.

The directors are of the opinion that the timing and extent of the recoverability of the loan depends on promotion to and sustained membership of the Premier League. This would also enhance the market valuation of BRFC to support the current carrying value of the investment. However, the directors acknowledge the timing and eventuality of promotion is subject to a number of uncertainties and therefore this assessment is judgmental.

The investment and the advanced funds disclosed within this company's balance sheet have not been impaired at the balance sheet date.

All turnover arose within the United Kingdom.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

Taxable losses from previous years are available to offset against future taxable profits. A deferred tax asset has not been recognised in respect of these losses as the group does not anticipate taxable profits to arise within the immediate future. The estimated value of the deferred tax asset not recognised, measured at the expected future standard rate of 25% is £67m (2024 - £65m).

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 March 2025 are as follows:

The principal activity of each is that of a professional football club with related commercial activities.

The registered address of both is Ewood Park, Blackburn, Lancashire, BB2 7JF.

The Strategic Report and note 2 provide further details regarding the company's receivable of £134m.

There are no specific terms attaching to the amounts owed by group undertaking.

The bank overdraft is not secured over any of the group's assets, however the bank reserves the right to ask for a debenture charge over the assets of the group during the life of the facility. Interest is paid upon the facility at 2.17% over Bank of England base rate.

Other borrowings represented an unsecured loan which was repayable in one instalment.

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Net obligations under finance lease and hire purchase contracts are secured on the assets to which they relate.

The grants were received in respect of capital expenditure and are being released over the life of the assets.

In respect of the subsidiary undertaking, pension contributions are paid, by the group, into the personal pension schemes of certain employees. The assets of the scheme are held separately from those of the group in independently administered funds. The contributions paid during the period amounted to £404,057 (2024 - £216,106).

The subsidiary company is a member of the Football League Pension and Life Assurance Scheme, which was closed with effect from 31 August 1999. The scheme is a defined benefit multi-employer plan and therefore has been treated as a defined contribution scheme. The scheme was the subject of an actuarial valuation in September 2023 and was in deficit. The increase in the deficit of in the year of £107,244 (2024 - £Nil) has been charged as an expense. The group's share of the deficit at 31 March 2025 is currently estimated to be £147,670 (2024 - £182,158 ). Full provision has been made for the deficit and a payment schedule agreed.

In respect of the subsidiary undertaking, under the terms of certain contracts for the purchase of players' registrations, future payments may be due, dependent upon the success of the team and/or individual players. Similar terms exist in contracts for sales of player registrations.

Any amounts payable or receivable in relation to playing appearances and team performances are recognised when the event occurs. The maximum potential unrecognised quantifiable liability, at the balance sheet date, for amounts due to football clubs and other third parties for players is £2,760,000. The maximum potential quantifiable amount receivable is £20,070,000, however the final amount expected to be received is likely to be considerably lower than this.

The profit and loss reserves represents accumulated losses.

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:

Amounts contracted for but not provided in the financial statements:

Since the balance sheet date, the group has entered into transfer agreements amounting to net transfer fees of £1.8m payable.

In May 2025, after careful consideration, Blackburn Rovers made the difficult decision to withdraw from the Barclays Women’s Championship (Barclays WSL2) for the upcoming 2025-26 season.

The decision followed a comprehensive review of the evolving demands placed on second tier clubs, which had become unsustainable under our current model.

Over recent years, we have been incredibly proud of the progress made by the Women’s team, both on and off the pitch. However, the growing financial and operational constraints tied to Tier 2 status, including the requirement to move to a fully professional model, have reached a point where they can no longer be sustained under the club’s current financial framework.

Key factors influencing this decision include the significant rise in minimum criteria set by the league, including extended contact hours for players and the requirement for a full-time professional contract model, an increase in staffing levels, leading to further escalating wage costs, and a greater strain on training ground and stadium facilities.

Regrettably, despite all Rovers Women’s league fixtures being played at Ewood Park last season for the first time, there was no noticeable upturn in home attendances, resulting in the absence of the substantial matchday commercial revenue and sponsorships required to support continued investment at Tier 2.

Following much discussion with The FA regarding the level the team will enter the Women’s football pyramid next season, the Women will play in Tier 4.

The subsidiary company (The Blackburn Rovers Football & Athletic Limited - "BRFC") paid rent of £356,000 (2024 - £356,000) to Venkateshwara London Limited, a fellow group company. In the previous year, interest of £215,920 was payable by Venkateshwara London Limited to BRFC in respect of an amount owing.

BRFC received advertising income from Venkateshwara Hatcheries Pvt. Ltd. of £795,000 (2024 - £1,002,610). Venkateshwara Hatcheries Pvt. Ltd is the ultimate parent company.

During the year, the group charged rent and other services of £395,819 (2024 - £248,294) to and was charged £7,272 by Blackburn Rovers Community Trust. At the balance sheet date an amount of £41,569 (2024 - £185,985) was owed by Blackburn Rovers Community Trust in respect of these transactions. These amounts are included within other debtors. Directors of The Blackburn Rovers Football and Athletic Limited are also trustees of Blackburn Rovers Community Trust.

During the year the group paid total remuneration of £719,000 (2024 - £558,000) to its key management personnel.

During the year the company incurred costs of £Nil (2024 - £119,658) on the instructions of the shareholders.

The company is a subsidiary of Venkateshwara Hatcheries Pvt. Ltd, whose Corporate address is Venkateshwara House, S. No. 114/A/2 Pune-Sinhagad Road, Pune - 411 030, India. This is the ultimate holding company and group accounts are prepared for this company which are available from the registered address. Ultimate control is held by Mrs Anuradha J Desai, Mr B Balaji Rao and Mr B Venkatesh Rao.

Certain amounts in the comparative year within the Group Statement of Cash Flows have been reclassified from operating activities to investing activities, to more clearly reflect the nature of the Cash Flows and to ensure comparability with the current year.