Company registration number 08112624 (England and Wales)
HORNETS INVESTMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
HORNETS INVESTMENT LIMITED
COMPANY INFORMATION
Directors
D Jarmorini
M Juri
SI Duxbury
Company number
08112624
Registered office
38 Craven Street
London
WC2N 5NG
Auditor
Myers Clark
Suite 7A, Building 6
Croxley Park, Hatters Lane
Watford
Hertfordshire
WD18 8YH
HORNETS INVESTMENT LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Directors' responsibilities statement
8
Independent auditor's report
9 - 12
Profit and loss account
13 - 14
Statement of comprehensive income
15
Group balance sheet
17 - 18
Company balance sheet
16
Group statement of changes in equity
19
Company statement of changes in equity
20
Group statement of cash flows
21
Notes to the financial statements
22 - 46
HORNETS INVESTMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 1 -

The directors present their report on the affairs of the Group, together with the financial statement for the year ended 30 June 2025. The Group consists of Hornets Investment Limited (the 'Company') who are the immediate parent company of Watford Association Football Club Limited (the 'Club') by virtue of their 99.7% shareholding.

Promoting the success of the company

Section 172(1) (A) to (F) of the Companies Act 2006 require Directors to explain how they considered the interests of key stakeholders when performing their duty to promote the success of the Group. This includes considering the interest of other stakeholders which will have an impact on the long-term success of the Company. The Board welcomes the direction of the UK Financial Reporting Council (the ‘FRC’). This S172 statement, explains how the Group's Directors consider:

S172(1) (A) “The likely consequences of any decision in the long term”

The Directors understand the business and the evolving environment in which we operate, including from the footballing side, the challenges of identifying and scouting new talent. Based on the club’s purpose to scout young talent and develop them into professional athletes by providing a clear path to 1st team football, the strategy set by the Board is intended to strengthen our position as a club with one of the strongest scouting networks globally.

The Directors recognise how our operations are viewed by different parts of society and that some decisions they take today may not align with all stakeholder interests, however the Directors have taken the decisions they believe best support WFC’s strategic ambitions.

S172(1) (B) “The interests of the company’s employees”

The Directors recognise that the Group's employees are fundamental and core to our business and delivery of our strategic ambitions. The success of our business depends on attracting, retaining and motivating employees. From ensuring that we remain a responsible employer, from pay and benefits to our health, safety and workplace environment, the Directors factor the implications of decisions on employees and the wider workforce, where relevant and feasible.

S172(1) (C) “The need to foster the company’s business relationships with suppliers, customers and others”

Delivering our strategy requires strong mutually beneficial relationships with suppliers, customers, governments, other football clubs and regulatory bodies. the Group seeks the promotion and application of certain general principles in such relationships. The Group continuously assesses the priorities related to customers and those with whom we do business.

S172(1) (D) “The impact of the company’s operations on the community and the environment”

This aspect is inherent in our strategic ambitions, most notably the Club has partnered with the local community in various projects including supporting the NHS, local schools and various charitable trusts. As such, the Board receives information on these topics to both provide relevant information for specific Board decisions.

S172(1) (E) “The desirability of the company maintaining a reputation for high standards of business conduct”

The Group aims to meet the world’s growing need to be environmentally and socially responsible. The Board periodically reviews and approves clear frameworks. This, complemented by the ways the Board is informed and monitors compliance with relevant governance standards help assure its decisions are taken and that the Group act in way that promote high standards of business conduct.

S172(1) (F) “The need to act fairly as between members of the company”

After weighing up all relevant factors, the Directors consider which course of action best enables delivery of our strategy through the long-term, taking into consideration the impact on stakeholders.

HORNETS INVESTMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 2 -

Employee engagement

The Group has a number of effective workforce engagement mechanisms in place across the C lub:

- Employees are kept informed of performance and strategy through regular appraisals and performance reviews

- The executive directors attend key business meetings throughout the year

- Employee engagement surveys are undertaken covering the vast majority of the workforce, and the results are reported to the Board

Business review

The 202 4/2 5 season saw the Club playing in the EFL Championship. During the year the Club implemented several cost saving initiatives and made efficiencies across the business.

Principal risks and uncertanties

The Group 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.

The Group is exposed to fair value interest rate risk on any fixed borrowings and cash flow interest rate risk on any floating rate deposits, bank overdrafts and loans.

Investments and borrowings are made through bank and companies who must be approved by the Board. Debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

The Board regularly review the funding requirements of the business to ensure the company has the finance to continue as a going concern.

There are a number of potential risks and uncertainties which could have a material impact on the Group’s long term performance. These risks and uncertainties are monitored by the Board on a regular basis.

HORNETS INVESTMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 3 -
Principal risks and uncertainties (cont.)

Income

The Club derives its income from three principal sources: gate receipts, television and commercial relationships. All three sources of income are dependent on the performance of the first team and its appeal to football supporters. The performance of the first team is significantly influenced by the quality of the coaching staff and the players that the Club can attract in a highly competitive market on both domestic and European levels.

Expenditure

In order to attract talent, which will continue to improve the performances of the first team, the Club continually invests in the playing staff by way of both transfers and wages.

Regulatory environment

The Club is regulated by the rules of the FA, EPL, EFL, UEFA and FIFA. These regulations have a direct impact on the Club as they cover areas such as the division of centrally negotiated television deals and the operation of the transfer market. The Club has staff whose roles include ensuring that the Club monitors the evolution of the rules and ensures compliance with them.

Funding

Funds are provided by companies within the Group. The Club reviews and updates its cash forecasts on a regular basis and keeps the owners aware of financial commitments going forwards.

The Board has considered the risks and uncertainties that face the business which are principally related to the costs and revenues involved in maintaining a playing squad and trading in players. It has also considered the financing requirements of the business that may result and these are referred to in note 1.2.

Corporation tax

In April 2017 the government made a change to the corporation tax legislation. This change restricts the amount of previously accumulated corporation tax losses that a company can utilise against its taxable profits in any one period. For the Club this means that corporation tax will be due in earlier periods than if the change in legislation had not taken place.

Development and performance

The Club's owners continue to be committed to new investment into the business to aid promotion back to the Premier League. Investment continues in respect of playing staff and updating the facilities at the Stadium and the Club's Training Ground at London Colney. This strategy continues to be evident at the Vicarage Road Stadium as the Club continue to review options for further development of the Stadium in order to increase capacities in both hospitality and general seating areas.

Key performance indicators

The key information that the Club tracks is: Turnover - £26m compared to £57.6m in 2024 Wages and salary costs - £28.1m compared to £33m in 2024 Wages to revenue ratio - 108% compared to 57% in 2024 Operating profit/(loss) - loss of £12.7m compared to a profit of £18m in 2024 Profit on disposal of player registrations - £15.8m compared to £29.3m in 2024 League position - 14th compared to 15th in 2024 |  |  |

HORNETS INVESTMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 4 -
Financial review

The Group's loss for the year was £16.5m compared to a profit of £12.7m for the prior year. The revenue for the year was £26m compared to £58m last year and this is primarily due to a decrease in media and broadcasting income following the end of the parachute income. Due to the fall in revenue, the Club generated a net loss for the year.

Salary costs have decreased overall from £33m to £28m.

Other operating expenses have remained broadly similar to last year.

The Club made a profit on disposal of player registrations of £15.8m (2024: £29.3m).

Intangible assets have decreased from £14.9m to £10m mainly due to player disposals during the year.

As in previous years, the financial performance of the Club is reflective of its position in the League and whether the Club is participating in the Premier League or the Championship.

The Club's goal is to operate in a financially stable way and achieve the best results possible while in the Championship, with the ultimate goal of getting promoted back to the Premier League. The shareholders are committed to invest in the Club to support the goal and realise this ambition. The Club continues to enhance its value and performance on and off the pitch by investing in upgrades for both the stadium and the training ground, along with strengthening the squad to increase commercial revenues and diversify the revenue streams.

On behalf of the board

SI Duxbury
Director
25 March 2026
HORNETS INVESTMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 5 -

The directors present their annual report and financial statements for the year ended 30 June 2025.

Principal activities

The principal activity of the company is that of a holding company. The company purchased a controlling interest of 99.7% in Watford Association Football Club Limited on 29 June 2012. The principle activity of Watford Association Football Club Limited is that of a professional football league club.

Directors

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

D Jarmorini
M Juri
SI Duxbury
Results and dividends

The Group recorded a loss before taxation for the year of £16,173,224 (2024: profit of £12,741,824.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The results for the year, together with a review of the Group's business performance for the year, its future prospects and its approach to financial risk management, are considered in the Strategic Report.

Directors' insurance

The Club has in place Directors' and Officers' Liability Insurance with a third party.

Disabled persons

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.

Employee involvement

Within the bounds of commercial confidentiality, the Group endeavours to keep staff at all levels informed of matters that affect the progress of the Group and are of interest to them as employees.

The Group operates an equal opportunities policy. The aim of the policy is to ensure that there should be equal opportunity for all and this applies to external recruitment, internal appointments, terms of employment, conditions of service and opportunity for training and promotion regardless of gender, ethnic origin or disability.

Disabled persons are given full and fair consideration for all types of vacancy in as much as the opportunities available are constrained by the practical limitations of their disability. Should for whatever reason, an employee

of the Group become disabled whilst in employment, every step, where appropriate will be taken to assist with rehabilitation and suitable retraining.

The Group maintains its own health, safety and environmental policies covering all aspects of its operations. Regular meetings and inspections take place to ensure all legal requirements are adhered to and that the Group is responsive to the needs of its employees and the environment.

Post reporting date events

Details of post balance sheet events are set out in note 29 to the financial statements.

Auditor

A resolution proposing that Myers Clark be reappointed as auditor of the group will be put to a meeting of the Board of Directors.

HORNETS INVESTMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 6 -
Energy and carbon report

Methodology follows best practice and is based on HM Government Environmental Reporting Guidelines March 2019. All emissions factors are taken from UK Government GHG Conversion Factors for Company Reporting, version 1.1, 2024 factors. Scope 1 emissions (natural gas, diesel for stationery, combustion and transport fuel) are calculated from invoices. Scope 2 consumption data (electricity) was taken from an energy management system installed at all sites. During the 23/24 reporting year, gas consumption decreased due to a fault on-site. The decreased consumption level did not persist in 24/25 after resolution of the fault.

The table below summarises the GHG emissions for reporting year: 1st July 202 4 to 30th June 202 5:

Energy Consumption (kWh) |  |
Gas (Scope 1) |  | 2,556,303
Other Fuels (Scope 1) |  | 349,777
E lectricity (Scope 2) |  | 4,155,579
Transport Fuel (Scope 1 - Company Fleet) |  | 184,465
Total |  | 7,246,123
Emissions (tCO2e) |  |
Gas (Scope 1) |  | 468
Other Fuels (Scope 1) |  | 85
Electricity (Scope 2) |  | 735
Transport Fuel (Scope 1 - Company Cars) |  | 45
Transport Fuel (Scope 3 - Grey Fleet) |  | -
Total (All Scopes) |  | 1,333

Due to the nature of the business, the most applicable normalisation parameter relating to carbon emissions is "turnover". Therefore the intensity ratio for Watford FCl is tonnes of CO2e per million GBP.

| 202 4-202 5 | 202 3-202 4
Normalisation Metric: | £26m | £57.6m
Intensity Ratio: (tCO2e/£M) | 51.29 | 22.71

Energy Efficiency Action Plan

1) Implemented Lightwave asset power management system controlling 300 televisions and refrigerators stadium-wide, preventing unnecessary energy consumption during non-operational periods.

2) Planning system extension to air conditioning and additional equipment.

3) Evaluating comprehensive LED conversion program for pitch lighting (replacing sodium systems) and concourse/office areas.

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 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.

Going concern

The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Therefore they have continued to adopt the going concern basis in preparing the financial statements. Further details regarding the going concern basis can be found in the accounting policies in note 1 to the financial statements.

HORNETS INVESTMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 7 -
On behalf of the board
SI Duxbury
Director
25 March 2026
HORNETS INVESTMENT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2025
- 8 -

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.

HORNETS INVESTMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HORNETS INVESTMENT LIMITED
- 9 -
Opinion

We have audited the financial statements of Hornets Investment Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 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 opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

- T he information given in the strategic report and the directors' r eport 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.

HORNETS INVESTMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HORNETS INVESTMENT LIMITED
- 10 -
Matters on which we are required to report by exception

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 identifie d material misstatements in the strategic report or the directors' r eport.

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.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, 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.

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.

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.

Identifying and assessing potential risks related to irregularities

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

- the nature of the industry and sector, control environment and business performance including the design of the 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;

- any matters we identified having obtained and review the company’s documentation of their policies and procedures relating to;

- identifying, evaluating and complying with laws and regulation 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;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

HORNETS INVESTMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HORNETS INVESTMENT LIMITED
- 11 -

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. 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 and the parent company 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 those set out by football industry specific organisations including the Football Association (the FA), UEFA, FIFA, the English Football League (the EFL) and the English Premier League (the EPL) and those set out by the UK Companies Act and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included the Employment law and the Health and Safety Act.

Audit response to risks identified

As a result of performing the above, we identified the principal risk as management bias in relation to accounting estimates, revenue recognition, journal entries and recognition of liabilities. Our procedures to respond to risks identified included the following:

- testing the completeness of income from outside the accounting system to within;

- agreeing the financial statement disclosure to supporting documentation;

- making enquiries of management and the in-house legal team regarding actual and potential litigation and claims;

- review of minutes from meetings of those charged with governance;

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

- reviewing correspondence with HMRC, relevant regulators such as the FA, FIFA, UEFA, EFL and the EPL, and the company’s legal advisors;

- review of post year end payments and invoices;

- testing the appropriateness of journal entries and other adjustments and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business; and

- challenging assumptions and judgements made by management in their significant accounting estimates.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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 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.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

HORNETS INVESTMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HORNETS INVESTMENT LIMITED
- 12 -
Paul Windmill (Senior Statutory Auditor)
For and on behalf of Myers Clark, Statutory Auditor
Chartered Accountants
Suite 7A, Building 6
Croxley Park, Hatters Lane
Watford
Hertfordshire
WD18 8YH
25 March 2026
HORNETS INVESTMENT LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2025
- 13 -
Operations
Player
Year ended
Operations
Player
Year ended
excluding
trading
30 June
excluding
trading
30 June
player
2025
player
2024
trading
trading
Notes
£
£
£
£
£
£
Turnover
3
26,003,015
-
26,003,015
57,589,057
-
57,589,057
Cost of sales
(33,869,111)
(340,000)
(34,209,111)
(41,468,626)
(340,000)
(41,808,626)
Gross profit/(loss)
(7,866,096)
(340,000)
(8,206,096)
16,120,431
(340,000)
15,780,431
Administrative expenses
(10,489,133)
-
(10,489,133)
(12,004,625)
-
(12,004,625)
Other operating income
139,578
-
139,578
60,188
-
60,188
Profit on disposal of player registrations
-
15,830,862
15,830,862
-
29,261,412
29,261,412
Depreciation and amortisation
(817,806)
(9,111,314)
(9,929,120)
(6,005,873)
(9,111,314)
(15,117,187)
Operating profit/(loss)
4
(19,033,457)
6,379,548
(12,653,909)
(1,829,879)
19,810,098
17,980,219
Interest receivable and similar income
404
-
404
-
-
-
0
Interest payable and similar expenses
7
(3,454,490)
-
(3,454,490)
(5,238,395)
-
(5,238,395)
Profit/(loss) before taxation
(22,487,543)
6,379,548
(16,107,995)
(7,068,274)
19,810,098
12,741,824
Taxation
9
(281,490)
-
(281,490)
-
-
-
Profit/(loss) for the financial year
(22,769,033)
6,379,548
(16,389,485)
(7,068,274)
19,810,098
12,741,824
HORNETS INVESTMENT LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2025
Operations
Player
Year ended
Operations
Player
Year ended
excluding
trading
30 June
excluding
trading
30 June
player
2025
player
2024
trading
trading
Notes
£
£
£
£
£
£
- 14 -
Profit/(loss) for the financial year is attributable to:
- Owners of the parent company
(16,344,604)
12,641,699
- Non-controlling interests
(44,881)
100,125
(16,389,485)
12,741,824
HORNETS INVESTMENT LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2025
- 15 -
2025
2024
£
£
(Loss)/profit for the year
(16,389,485)
12,741,824
Other comprehensive income
Tax relating to other comprehensive income
(5,050,419)
406,111
Total comprehensive income for the year
(21,439,904)
13,147,935
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(21,616,120)
13,051,620
- Non-controlling interests
110,987
96,315
(21,439,904)
13,147,935
HORNETS INVESTMENT LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2025
30 June 2025
- 16 -
2025
2024
Notes
£
£
£
£
Fixed assets
Investments
11
55,378,210
53,831,769
Current assets
Debtors falling due after more than one year
16
7,769,046
5,343,466
Debtors falling due within one year
16
183,830
359,760
Cash at bank and in hand
2,489
4,639
7,955,365
5,707,865
Creditors: amounts falling due within one year
17
(6,919,032)
(5,572,890)
Net current assets
1,036,333
134,975
Total assets less current liabilities
56,414,543
53,966,744
Creditors: amounts falling due after more than one year
18
(57,195,616)
(54,564,545)
Net liabilities
(781,073)
(597,801)
Capital and reserves
Called up share capital
24
300,000
300,000
Profit and loss reserves
(1,081,073)
(897,801)
Total equity
(781,073)
(597,801)

As permitted by section 408 of the Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s loss for the year was £183,272 (2024 - £21,168 loss).

The financial statements were approved by the board of directors and authorised for issue on 25 March 2026 and are signed on its behalf by:
25 March 2026
SI Duxbury
Director
Company registration number 08112624 (England and Wales)
HORNETS INVESTMENT LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2025
30 June 2025
- 17 -
2025
2024
Notes
£
£
£
£
Fixed assets
Intangible assets
10
10,033,385
14,870,617
Tangible assets
12
122,103,864
85,525,462
132,137,249
100,396,079
Current assets
Stocks
15
1,161,005
1,022,437
Debtors
16
26,178,287
38,060,370
Cash at bank and in hand
1,343,436
8,016
28,682,728
39,090,823
Creditors: amounts falling due within one year
17
(66,889,299)
(62,256,518)
Net current liabilities
(38,206,571)
(23,165,695)
Total assets less current liabilities
93,930,678
77,230,384
Creditors: amounts falling due after more than one year
18
(61,448,098)
(71,043,055)
Provisions for liabilities
21&22
(10,036,863)
(6,090,342)
Deferred income
23
(90,675)
(120,675)
Net assets/(liabilities)
22,355,042
(23,688)
Capital and reserves
Called up share capital
24
300,000
300,000
Revaluation reserve
88,450,803
51,455,103
Profit and loss reserves
(66,445,490)
(51,762,414)
Equity attributable to owners of the parent company
22,305,313
(7,311)
Non-controlling interests
49,729
(16,377)
22,355,042
(23,688)
HORNETS INVESTMENT LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2025
30 June 2025
- 18 -
The financial statements were approved by the board of directors and authorised for issue on 25 March 2026 and are signed on its behalf by:
25 March 2026
SI Duxbury
Director
HORNETS INVESTMENT LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
- 19 -
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
Balance at 1 July 2023
300,000
52,725,192
(66,164,144)
(13,138,952)
(32,671)
(13,171,623)
Year ended 30 June 2024:
Profit for the year
-
-
12,725,530
12,725,530
16,294
12,741,824
Other comprehensive income:
-
Tax relating to other comprehensive income
-
401,488
-
0
401,488
-
401,488
Amounts attributable to non-controlling interests
-
4,623
-
4,623
-
4,623
Total comprehensive income for the year
-
406,111
12,725,530
13,131,641
16,294
13,147,935
Transfers
-
(1,676,200)
1,676,200
-
-
-
Balance at 30 June 2024
300,000
51,455,103
(51,762,414)
(7,311)
(16,377)
(23,688)
Year ended 30 June 2025:
Loss for the year
-
-
(16,409,833)
(16,409,833)
(44,881)
(16,454,714)
Other comprehensive income:
Tax relating to other comprehensive income
-
(5,050,419)
-
0
(5,050,419)
-
(5,050,419)
Amounts attributable to non-controlling interests
-
-
-
-
110,987
110,987
Total comprehensive income for the year
-
(5,050,419)
(16,409,833)
(21,460,252)
66,106
(21,439,904)
Transfers
-
843,756
1,676,200
2,519,956
-
2,519,956
Other movements
-
41,202,363
(14,672)
41,187,691
-
41,187,691
Balance at 30 June 2025
300,000
88,450,803
(66,510,719)
22,240,084
49,729
22,355,042
HORNETS INVESTMENT LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
- 20 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2023
300,000
(876,632)
(576,632)
Year ended 30 June 2024:
Loss and total comprehensive income for the year
-
(21,169)
(21,169)
Balance at 30 June 2024
300,000
(897,801)
(597,801)
Year ended 30 June 2025:
Loss and total comprehensive income for the year
-
(183,272)
(183,272)
Balance at 30 June 2025
300,000
(1,081,073)
(781,073)
HORNETS INVESTMENT LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2025
- 21 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
31
1,673,263
(1,696,890)
Interest paid
(998,589)
(3,489,538)
Net cash inflow/(outflow) from operating activities
674,674
(5,186,428)
Investing activities
Purchase of intangible assets
(2,048,358)
(18,439,417)
Proceeds on disposal of intangibles
17,194,000
43,358,089
Purchase of tangible fixed assets
(228,662)
(346,765)
Other investments and loans made
(1,546,440)
(36,300)
Interest received
479,589
-
Net cash generated from investing activities
13,850,129
24,535,607
Financing activities
Proceeds from other loans
6,520,000
2,500,000
Repayment of other loans
(18,922,000)
(31,124,000)
Purchase of assets under finance lease
-
1,272,887
Payment of finance leases obligations
(167,000)
(200,002)
Net cash used in financing activities
(12,569,000)
(27,551,115)
Net increase/(decrease) in cash and cash equivalents
1,955,803
(8,201,936)
Cash and cash equivalents at beginning of year
(612,367)
7,589,569
Cash and cash equivalents at end of year
1,343,436
(612,367)
Relating to:
Cash at bank and in hand
1,343,436
8,016
Bank overdrafts included in creditors payable within one year
-
(620,383)
HORNETS INVESTMENT LIMITED
GROUP STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 22 -
1
Judgements and key sources of estimation uncertainty

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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Current and deferred taxation

The complex nature of the tax legislation under which the Group operates necessitates the use of estimates and assumptions in assessing the tax amounts provided in the financial statements. Actual tax payable may differ from the amounts provided.

Cost of intangible assets

Payments made to third parties in order to acquire a player's registration are initially capitalised at cost.

Contingent liabilities for player transactions

Creditors and provisions contain allowances for certain contingent amounts to players, agents and clubs which are based on management's best estimate of certain future events from information available to management at the reporting date, such as number of player appearances, and the amount that becomes payable as a result of this event. Actual future costs may differ from the amounts provided.

Impairment of intangible assets

Intangible assets within the single cash generating (CGU) unit are reviewed for potential impairment as a whole using estimates of the future economic benefits attributable to them. Such estimates involve assumptions in relation to future ticket income, media and sponsorship revenue and on pitch performance. Intangible assets outside of the CGU are reviewed for impairment individually and assessed against management's best estimate of their value taking into account recent market movements and post balance sheet events. Any estimates of future economic benefits made in relation to intangible assets may differ from benefits that ultimately arise, and materially affect, the recoverable value of the asset.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
- 23 -
2
Accounting policies
Company information

Hornets Investment Limited (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales (Company Registration No. 08112624). The registered office is 38 Craven Street, London, WC2N 5NG.

The group consists of Hornets Investment Limited and its subsidiary, Watford Association Football Club.

2.1
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 sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. 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 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The Watford Association Football Club Limited is a 99.7% owned subsidiary of Hornets Investment Limited. Watford FC Women Limited is a 100% owned subsidiary of The Watford Association Football Club Limited.

The parent company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements. The loss after tax of the parent company was £183,272 (2024: £21,168).

2.2
Basis of consolidation

In the parent company financial statements, t he 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.

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. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
2
Accounting policies
(Continued)
- 24 -

The consolidated financial statements incorporate those of Hornets Investment Limited and all of its subsidiaries (ie entities that the g roup 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.

All financial statements are made up to 30 June 2025. 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 g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

The Watford Association Football Club Limited and Watford FC Women Limited have been included in the group using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of The Watford Association Football Club Limited for the 12 month period and for 10 months since acquisition in respect of Watford FC Women Limited. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

2.3
Going concern

The Group made a loss for the year of £16,454,714 (2024: profit of £12,741,824) and had net assets at 30th June 2025 of £22,289,913 (2024: net liabilities of £23,688).

The subsidiary's income over the next twelve months, along with the continued support of the group's parent company, is sufficient to provide the necessary working capital for the group and therefore it is appropriate to continue to adopt the going concern basis in preparing the financial statements.

The Group's parent company has confirmed that they will not seek repayment of the balance outstanding to them of £60,238,048 if to do so would jeopardise the group's ability to continue as a going concern. The group's owner is committed to new investment into the business when necessary and has entered into a financial commitment to financially support the group for the next 12 months.

2.4
Turnover

Turnover represents income arising from sales to third parties and excludes transfer fees receivable (which are dealt with in the profit on disposal of players' registrations) and value added tax. Included in turnover are match d ay receipts and other match day income.

Season ticket and corporate hospitality income is recognised over the period of the football season as home m atches are played.

Fixed elements of FA Premier League and Football League central broadcasting contracts are recognised over the period of the football season as league matches (home and away) are played.

Sponsorship contracts are recognised over the duration of the contract, either on a straight-line basis, or over the period of the football season, as appropriate, based on the terms of the contract.

Deferred revenue

Deferred revenue arises principally from the advance sale of season tickets, executive boxes and players' loan fees and is recognised as an income in the period to which it relates.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
2
Accounting policies
(Continued)
- 25 -
2.5
Intangible fixed assets other than goodwill

Acquired players' registrations

The costs associated with the acquisition of players' registrations are initially recorded at the date of acquisition as intangible fixed assets. Part of the acquisition cost may be dependent upon the number of appearances and the directors exercise their judgement on the probability of the deferred consideration becoming payable and capitalising that cost as an intangible asset. These costs are fully amortised over the period of the relevant player's contract.

The Club will perform an impairment review on player registrations if adverse events indicate that the amortised carrying value of its intangible assets may not be recoverable. Whilst no individual player can be separated from the cash generating unit (CGU), which is represented by the playing squad and the football operations of the Company as a whole, there may be certain circumstances where a player is taken out of the CGU. Such circumstances might include a player being excluded from the playing squad due to sustaining a career threatening injury or other events which mean it is highly unlikely a particular player will ever play for the Club again. If such circumstances were to arise and be considered permanent, then the carrying value of the player would be assessed against management’s best estimate of the fair value less any costs to sell and, if necessary, a provision would be made.

Amortisation is charged to the profit and loss account on a straight-line basis over the length of each player's contract.

Software and website development costs

Software and website development costs (not research costs) are recognised as internally generated intangibles when the following can be demonstrated:

a) the technical feasibility of completing the intangible asset so that it will be available for use or sale.

b) its intention to complete the intangible asset and use or sell it.

c) its ability to use or sell the intangible asset.

d) how the intangible asset will generate probable future economic benefits.

e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.

f) its ability to measure reliably the expenditure attributable to the intangible asset during its development.

Amortisation is charged to the profit and loss account on a straight line basis over 10 years.

2.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Assets under construction are not depreciated until they are brought into use.

Capital grants and contributions to capital expenditure are credited to deferred income and released to the profit and loss account over the expected useful life of the assets to which they relate.

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 buildings
over 25 years and 10 years
Leasehold land and buildings
over the shorter of the unexpired term of lease and 20 years
Plant and equipment
25% on reducing balance
Motor vehicles
25% on reducing balance

Freehold land and assets in the course of construction are not depreciated. Assets with a Net Book Value of less than £1,000 are written off.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
2
Accounting policies
(Continued)
- 26 -

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.

2.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss

I n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

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.

2.8
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

2.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes purchase price less discounts where applicable. Stock is valued on a FIFO basis. Net realisable value is based on estimated selling price. Provision is made for obsolete or slow moving stocks.

2.10
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.

2.11
Financial instruments

The G roup has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
2
Accounting policies
(Continued)
- 27 -
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 m ethod 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.

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 or , 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 group 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.

If an arrangement constitutes a financing transaction, the financial liability is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
2
Accounting policies
(Continued)
- 28 -
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 s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in or 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 though 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 group's contractual obligations expire or are discharged or cancelled.

2.12
Equity instruments

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.

2.13
Derivatives

The C ompany enters into foreign exchange contracts in order to manage its exposure to foreign exchange risk.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

2.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
2
Accounting policies
(Continued)
- 29 -
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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

2.15
Provisions

Provisions are recognised when the Group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i s measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

2.16
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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Signing on fees

Signing on fees are charged to the profit and loss account on a straight line basis over the period of the player's contract.

2.17
Retirement benefits

The Group contributes to The Football League Limited Pension and Life Assurance Scheme for certain employees and also contributes to players' own pension plans, the assets of which are held separately from those of the group in independently administered funds. Contributions payable are charged to the profit and loss account over the period to which they relate.

In addition the group is making contributions in respect of its share of the deficit of the defined benefit section of The Football League Limited Pension and Life Assurance Scheme (the "Scheme"). A provision has been established for the group's share of the deficit which exists in this section of the Scheme and this additional contribution is being charged to the profit and loss account over the remaining service life of those employees who are members of the Scheme.

Under the provisions of FRS 102 Section 28 the Scheme would be treated as a defined benefit multiemployer scheme. The Scheme's actuary has advised that the participating employer's share of the underlying assets and liabilities cannot be identified on a reasonable and consistent basis. Therefore in accordance with FRS 102 Section 28 the Scheme has been accounted for as if it were a defined contribution plan.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
2
Accounting policies
(Continued)
- 30 -
2.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

Lease incentives are recognised in the profit and loss account on a straight-line basis over the term of the lease.

2.19
Grants

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

Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

2.20
Foreign exchange

The Group's accounting records are maintained in Pounds sterling. Monetary assets and liabilities denominated in foreign currencies are translated into Pounds sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of transaction. All differences are taken to the profit and loss account.

3
Turnover and other revenue

T he Company has one main business segment, that of professional football operations. As a result, no additional business segment information is required to be provided. It operates in one geographical segment, the United Kingdom, and accordingly no additional geographical information is required to be provided.
Notwithstanding this, a voluntary analysis of the revenue streams is given below to assist with an understanding of the business.

Revenue streams comprise:

Matchday - season and matchday tickets and corporate hospitality.

Media - television and broadcasting income, including distributions from the English Premier League broadcasting agreements, cup competitions and local radio.

Commercial - sponsorship income & merchandising.

Other - loan fee receivable and other sundry income.

2025
2024
£
£
Turnover
Matchday
6,361,099
6,346,458
Media & Broadcasting
11,629,039
45,016,701
Commercial
7,154,186
5,956,221
Other
858,691
269,677
26,003,015
57,589,057
HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
3
Turnover and other revenue
(Continued)
- 31 -
Other significant revenue
Release of capital grant
60,000
60,000
Other
-
188

4
Operating (loss)/profit
2025
2024
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(83,471)
25,680
Government grants
(74,000)
(60,000)
Depreciation of owned tangible fixed assets
4,853,623
5,952,142
Amortisation of intangible assets
5,164,555
9,165,045
Operating lease charges
1,430,190
229,019

Within amortisation is £nil of impairment (2024: £nil) on intangible fixed assets.

5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,500
8,150
Audit of the financial statements of the company's subsidiaries
52,000
52,000
61,500
60,150
For other services
Other assurance services
45,000
45,000
Taxation compliance services
10,000
10,000
55,000
55,000
HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 32 -
6
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Players
98
68
-
-
Coaching staff
58
96
-
-
Commercial staff
120
92
-
-
Administration
74
66
-
-
Ground staff
42
30
-
-
392
352
0
0

In addition to the above the Group employed an average of 62 (2024: 94) part-time match day staff during the year.

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
24,815,454
28,947,231
-
0
-
0
Social security costs
2,937,518
3,720,795
-
-
Pension costs
370,645
357,128
-
0
-
0
28,123,617
33,025,154
-
0
-
0
Termination benefits made or committed
471,000
1,085,000
-
-
7
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
2,677,329
1,391,100
Other interest on financial liabilities
257,976
357,757
2,935,305
1,748,857
Other finance costs:
Other interest
519,185
3,489,538
Total finance costs
3,454,490
5,238,395
HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 33 -
8
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
474,000
955,000
474,000
955,000
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
474,000
948,000
Company pension contributions to defined contribution schemes
-
-
9
Taxation
2025
2024
£
£
Deferred tax
Origination and reversal of timing differences
281,490
-
0

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:

2025
2024
£
£
(Loss)/profit before taxation
(16,107,995)
12,741,824
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
(4,026,999)
3,185,456
Tax effect of income not taxable in determining taxable profit
(16,307)
-
0
Unutilised tax losses carried forward
3,260,796
(4,508,456)
Capital allowances
1,064,000
1,323,000
Taxation charge for the year
281,490
-
HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
9
Taxation
(Continued)
- 34 -

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2025
2024
£
£
Deferred tax arising on:
Revaluation of property
5,050,419
(406,111)

Tax losses at 30 June 2025 available for offset against future trading profits are in excess of £95 million (2024: £77 million)

10
Intangible fixed assets
Group
Goodwill
Website
Players' registrations
Total
£
£
£
£
Cost
At 1 July 2024
5,977,538
537,299
102,999,070
109,513,907
Additions - separately acquired
41,077
-
0
2,048,358
2,089,435
Disposals
-
0
-
0
(7,519,887)
(7,519,887)
At 30 June 2025
6,018,615
537,299
28,443,112
34,999,026
Amortisation and impairment
At 1 July 2024
5,977,538
399,886
65,347,841
71,671,534
Amortisation charged for the year
41,077
80,607
5,042,871
5,164,555
Disposals
-
0
-
0
(5,757,775)
(5,757,775)
At 30 June 2025
6,018,615
480,493
18,466,533
24,965,641
Carrying amount
At 30 June 2025
-
0
56,806
9,976,579
10,033,385
At 30 June 2024
-
0
137,413
14,733,204
14,870,617
The company has no goodwill other than that arising on consolidation.

The figure for cost of player registrations are historic cost figures for purchased players only. Accordingly, the net book amount of player registrations will not reflect, nor is it intended to reflect, the current market value of these players nor does it take any account of players developed through the Club's youth system.

The directors consider the net book value of intangible assets to be significantly greater than their book value.

The amortisation of players' registration costs is included within cost of sales in the profit and loss account.

There is impairment of £nil (2024: £nil), included within the amortisation charge for the year.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 35 -
11
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
2,087,207
2,087,207
Loans to subsidiaries
13
-
0
-
0
53,291,003
51,744,562
-
0
-
0
55,378,210
53,831,769

The above investment includes loans to financially support a subsidiary and consist of the following:

A loan of £40,793,973 bearing interest at 5.5% per annum, re payable in more than one year following an extension agreed after the end of the year. Total interest accrued i n the year is £2,159,844 (202 4: £1,022,643). Unpaid interest at the year end amounted to £5,789,376 (202 4: £3,629,532).

An unsecured loan of £1,147,029 (2024: £1,100,590) which is interest free and has no fixed repayment date.

A loan of £4,850,000 bearing interest at 5.5% per annum, repayable in more than one year following an extension agreed after the end of the year. This loan is a consolidation of three older loans. Total interest accrued in the year is £248,478 (2024: £242,913). Unpaid interest at the year end amounted to £1,979,667 (2024: £1,713,934).

A new loan of £2,500,000 bearing interest at 3.5% above base rate per annum, repayable in less than one year. Total interest accrued in the year was £118,441. Unpaid interest at the year end amounted to £118,441.

A new loan of £2,000,000 bearing interest at 8.75% per annum, repayable in less than one year. Total interest accrued in the year was £32,124. Unpaid interest at the year end amounted to £32,124.

A new loan of £1,000,000 bearing interest at 8.75% per annum, repayable in less than one year. Total interest accrued in the year was £10,308. Unpaid interest at the year end amounted to £10,308.

A new loan of £500,000 bearing interest at 3.5% over base rate per annum, repayable in less than one year. Total interest accrued in the year was £17,366. Unpaid interest at the year end amounted to £17,366.

Two new loans of £250,000 each bearing interest at 3.5% over base rate per annum, repayable in less than one year. Total interest accrued in the year was £2,341. Unpaid interest at the year end amounted to £2,341.

A loan of £5,000,000 was repaid during the year.

Movements in fixed asset investments
Company
Shares in subsidiaries
Loans to subsidiaries
Total
£
£
£
Cost or valuation
At 1 July 2024
2,087,207
51,744,562
53,831,769
Additions
-
1,546,441
1,546,441
At 30 June 2025
2,087,207
53,291,003
55,378,210
Carrying amount
At 30 June 2025
2,087,207
53,291,003
55,378,210
At 30 June 2024
2,087,207
51,744,562
53,831,769
HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 36 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Total
£
£
£
£
Cost or valuation
At 1 July 2024
103,419,279
7,350,461
17,110,901
127,880,641
Additions
95,703
-
0
132,959
228,662
Revaluation
41,202,363
-
0
-
0
41,202,363
At 30 June 2025
144,717,345
7,350,461
17,243,860
169,311,666
Depreciation and impairment
At 1 July 2024
21,224,708
4,675,937
11,219,819
36,402,040
Depreciation charged in the year
681,600
987,374
3,184,649
4,853,623
At 30 June 2025
25,907,345
5,663,311
15,637,146
47,207,802
Carrying amount
At 30 June 2025
118,810,000
1,687,150
1,606,714
122,103,864
At 30 June 2024
78,193,534
2,673,524
4,658,404
85,525,462
The company had no tangible fixed assets at 30 June 2025 or 30 June 2024.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2025
2024
2025
2024
£
£
£
£
Plant and equipment
955,000
1,273,000
-
0
-
0

The Club’s freehold land and buildings were revalued as at 30 June 2025 to a value of £118,810,000. The valuation was carried out by CBRE Ltd, independent external valuers, on a depreciated replacement cost basis in accordance with the current RICS Valuation – Global Standards (incorporating the International Valuation Standards) and the UK national supplement (the Red Book). In preparing their valuation CBRE have made various assumptions as to tenure, letting, taxation, town planning, and the condition and repair of buildings and sites – including ground and groundwater contamination, as is common with any Red Book valuation. At the balance sheet date the directors consider that the value of the freehold land and buildings is not materially different to the value in the accounts.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
12
Tangible fixed assets
(Continued)
- 37 -

If revalued assets were stated on an historical cost basis rather than a depreciated replacement cost value basis, the total amounts included would have been as follows:

Group
Company
2025
2024
2025
2024
£
£
£
£
Cost
41,429,982
41,334,279
-
-
Accumulated depreciation
(15,034,623)
(14,353,023)
-
-
Carrying value
26,395,359
26,981,256
-
-

Capitalised under assets under construction were the improvement works being made to the Group's stadium and training ground facilities, which were transferred to the corresponding asset category on completion of the works.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 38 -
13
Subsidiaries

Details of the company's subsidiaries at 30 June 2025 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Watford Association Football Club LImited
Vicarage Road Stadium, Vicarage Road, Watford Hertfordshire, WD18 0ER
Ordinary
99.70
-
Watford FC Women Limited
Ordinary
0
100.00

During the year, the group acquired the entire share capital of Watford FC Women Limited.

14
Financial instruments
Group
Company
2025
2024
2025
2024
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
15,249,331
18,629,143
61,240,629
57,447,788
Carrying amount of financial liabilities
Measured at amortised cost
136,090,886
139,077,699
64,094,648
60,137,435
15
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Goods and goods for resale
1,161,005
1,022,437
-
0
-
0

The estimated replacement cost of stocks does not materially differ from their balance sheet value.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 39 -
16
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,690,126
6,497,426
-
0
-
0
Transfer fees receivable
8,248,088
10,151,877
-
0
-
0
Other debtors
111
-
-
-
Amounts due from related parties
-
-
180,580
359,760
Prepayments and accrued income
2,178,845
1,979,840
3,250
-
0
14,117,170
18,629,143
183,830
359,760
Amounts falling due after more than one year:
Amount due from related parties
-
0
-
0
7,769,046
5,343,466
Transfer fees receivable
3,403,609
9,262,652
-
0
-
0
3,403,609
9,262,652
7,769,046
5,343,466
Deferred tax asset (note 22)
8,750,000
10,168,575
-
0
-
0
12,153,609
19,431,227
7,769,046
5,343,466
Total debtors
26,270,779
38,060,370
7,952,876
5,703,226
17
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
19
-
0
620,383
-
0
-
0
Obligations under finance leases
20
289,971
289,969
-
0
-
0
Other borrowings
19
11,938,023
19,173,553
6,680,581
5,359,760
Trade creditors
5,183,178
11,461,575
53,747
34,658
Player registration costs
20,441,274
14,055,845
-
0
-
0
Amounts owed to group undertakings
20,000
20,000
20,000
20,000
Other taxation and social security
1,515,367
2,015,427
1,555
1,508
Other creditors
24,213,017
8,465,869
1,255
1,195
Accruals and deferred income
3,393,440
6,153,897
161,894
155,769
66,994,270
62,256,518
6,919,032
5,572,890
HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 40 -
18
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Obligations under finance leases
20
614,691
781,925
-
0
-
0
Other borrowings
19
57,683,627
60,417,792
57,195,616
54,564,545
Trade creditors
3,149,780
9,843,338
-
0
-
0
61,448,098
71,043,055
57,195,616
54,564,545
19
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank overdrafts
-
0
620,383
-
0
-
0
Loans from group undertakings
60,238,048
54,564,545
60,238,048
54,564,545
Other loans
9,383,602
25,026,800
3,638,149
5,359,760
69,621,650
80,211,728
63,876,197
59,924,305
Payable within one year
11,938,023
19,793,936
6,680,581
5,359,760
Payable after one year
57,683,627
60,417,792
57,195,616
54,564,545

Loans from group undertakings (Company)

The balance within loans from group undertakings includes loans of £40,813,973 and £11,438,845 with the immediate parent company, Hornets Management S.a.r.l Limited, predominantly bearing interest at 5.5% with tow loans at 8.75% per annum. Loans of £3,000,000 are due within one year with the balances due after more than one year. Total interest charged in the year on these loans is £2,677,329 (2024: £1,290,607). Unpaid interest at the year end amouted to £7,989,625 (2024: £5,331,726).

Other loans (Company)

A loan of £3,500,000 from a director of the subsidiary which is repayable in less than one year. The loan bears interest at 3.5% above Bank of England base rate. Total interest charged in the year is £257,976 (2024: £357,757). Unpaid interest at the year end amounted to £138,149 (2024: £359,760).

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
19
Loans and overdrafts
(Continued)
- 41 -

Other loans (Group)

Other loans include the following:

A secured loan from Watford FC's Community Sports & Education Trust of £319,000 (2024: £319,000), attracting interest of 1.5% above Barclays Bank base rate. The balance due in less than one year is £250,000 (2024: £200,000). The balance due in more than one year is £69,000 (2024: £119,000). The total interest charged for the year is £41,370 (2024: £41,370).

Secured loans from an independent finance provider totalling £5,427,000 (2024: £19,348,000). The total amount repayable within one year is £5,007,000 (2024: £13,614,000) and the total amount repayable after one year is £420,000 (2024: £5,734,000). The total interest charged in the year was £478,000 (2024: £3,490,000) at market rates between 3.42% and 10.258%pa.

Security (Group)

An independent finance provider hold s a fixed charge and negative pledge.

The carrying amount of the total assets of the C lub is £160,679,000 (2024: £139,478,000) and the carrying amount of the Vicarage Road Stadium is £118,810,000 (2024: £78,193,000).

20
Finance lease obligations
Group
Company
2025
2024
2025
2024
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
289,971
289,969
-
0
-
0
In two to five years
614,691
781,925
-
0
-
0
904,662
1,071,894
-
-

Finance lease payments represent rentals payable by the Club for certain items of plant and machinery. The finance lease liability is secured by the asset held under the lease. The lease agreements includes fixed lease payments, and no restrictions are placed on the use of the asset.

21
Provisions for liabilities
Group
Company
2025
2024
2025
2024
£
£
£
£
Pension provision
445,876
412,689
-
-
HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
21
Provisions for liabilities
(Continued)
- 42 -
Movements on provisions:
Pension provision
Group
£
At 1 July 2024
412,689
Additional provisions in the year
33,187
At 30 June 2025
445,876
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2025
2024
2025
2024
Group
£
£
£
£
Accelerated capital allowances
778,568
1,915,891
-
-
Tax losses
-
-
8,750,000
10,168,575
Revaluations
8,812,419
3,761,762
-
-
9,590,987
5,677,653
8,750,000
10,168,575
The company has no deferred tax assets or liabilities.
Group
Company
2025
2025
Movements in the year:
£
£
Asset at 1 July 2024
(4,490,922)
-
Charge to profit or loss
281,490
-
Charge to other comprehensive income
5,050,419
-
Liability at 30 June 2025
840,987
-
23
Government grants

Capital grants include a balance of £675 (2024: £675) relating to the grant received principally from the Football Stadium Improvement Fund, formerly the Football Trust, towards the cost of stadium re-development.

Also included is a grant towards the cost of catering equipment. At the balance sheet date £60,000 (2024: £120,000) of this remains within deferred income.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 43 -
24
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
300,000
300,000
300,000
300,000

The company has one class of ordinary shares. Ordinary shares have full rights in the company with respect to voting, dividend and capital distribution.

25
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
344,123
423,866

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Defined benefit scheme

| 2025 | 2024
Liability at start of the year | 413,000 | 300,000
Payments in year | (-) | (76,000)
Increase in provision | 33.000 | 189,000
Liability at end of year | 446,000 | 413,000

As one of a number of participating employers in the defined benefit scheme, the Club has only been advised of its share of the deficit of the Scheme and as such the Club has only recognised their share as a liability.

As a result, the contributions paid to the Scheme reduce the provision. The Club is unable to identify its share of the underlying assets and liabilities within the Scheme on a consistent and reliable basis and therefore accounts for the Scheme as if it were a defined contribution scheme.

The most recent actuarial valuation of the Scheme was at August 2023 and indicated that contributions required from the Club towards making good the deficit was £412,689 at 1 September 2024 (the total deficit in the Scheme at this date was £20.6 million). The Club's share of the deficit is being paid over a period of 4 years and 3 months commencing September 2024.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 44 -
26
Financial commitments, guarantees and contingent liabilities

Contingent liabilities and assets - Group

The Club has liabilities under transfer agreements to pay additional sums dependent upon players' attainment and subsequent transfer value. The maximum that can be calculated and could be payable in respect of transfers made before 30 June 20 25 is £8,554,000 (2024: £22,682,000). Since the year end £nil has become payable (20 24: £nil).

At 30 June 20 25, the Club had sums receivable from other clubs in respect of players, dependent upon the number of first team appearances or percentage sell-on clauses. Due to the uncertainty of receipt of these contingent assets, it is not practical to calculate the amount likely to be received. Since the year end £nil (2024: £416,000) has become due.

27
Operating lease commitments
Lessee

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:

Group
Company
2025
2024
2025
2024
£
£
£
£
Within one year
400,000
400,000
-
-
Between two and five years
1,439,000
1,439,000
-
-
In over five years
5,850,000
6,250,000
-
-
7,689,000
8,089,000
-
-
28
Events after the reporting date

Group

As outlined in note 2 7, subsequent to the year end, sums have been receivable from other clubs in respect of appearance and sell-on clauses in respect of players previously sold. It is estimated that net income of at least £nil is to be reflected in the financial statement s for the current year. Since the year end various players' registration have been sold or terminated and in respect of those it is estimated that net income of £8,821,000 is to be reflected in the financial statement for the current year.

In addition, there has been £nil received in respect of players out on loan.

Since the year end there have been several new player registrations. The net payments to which the Club is committed in respect of those transactions is estimated to be £3,201,000.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 45 -
29
Related party transactions

Entities with control over the entity (Company)

At the year end, the Company owed Hornets Management S.a.r.l, £60,238,048 in loans and accrued interest (2024: £54,564,545). Details of the loans are included in note 20. The company recognised £2,677,329 of interest expense during the year (2024: £1,290,609), and had interest of £7,949,625 (2024: £5,331,726) that was outstanding at the year end.

Other related parties (Company)

During the year, the Company made payments of £4,183 (2024: £4,300) to Diversify Sport Investment S.a.r.l, in relation to professional fees. The companies are related through Diversify Sport Investment S.a.r.l, being the ultimate parent company.

Key management personnel of the entity (Group)

Other than the directors there are no other members of key management. Directors remuneration is reported in note 7.

Other related parties (Group)

During the year, the C lub w as charged £nil (2024: £nil) in respect of the purchase of player registrations from Udinese Calcio SpA, a company under common control. The Club charged Udinese £nil (2024: £17,137,928) in relation to the sale of player registrations. There is a net amount owing to Udinese of £4,141,000 (2024: £7,687,000) at the balance sheet date.

30
Controlling party

The company's immediate parent is Hornets Management S.a.r.l, incorporated in Luxembourg.

The ultimate parent is Diversify Sport Investment S.a.r.l, incorporated in Luxembourg.

Hornets Investment Limited, is the highest company in the group to prepare group accounts.

The ultimate controlling party is Mr Gino Pozzo by virtue of his sole shareholding.

HORNETS INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 46 -
31
Cash generated from group operations
2025
2024
£
£
(Loss)/profit for the year after tax
(16,389,485)
12,741,824
Adjustments for:
Taxation charged
281,490
-
Finance costs
3,663,299
5,238,395
Amortisation and impairment of intangible assets
5,164,555
9,165,045
Depreciation and impairment of tangible fixed assets
4,764,565
5,952,140
(Decrease) in deferred income
(60,000)
(60,000)
(Gain)/loss on disposal of player registrations
(15,830,862)
(29,261,142)
Movements in working capital:
(Increase) in stocks
(138,568)
(31,975)
Decrease in debtors
10,560,750
49,534,575
Increase/(decrease) in creditors
9,722,748
(54,975,484)
Cash generated from/(absorbed by) operations
1,738,492
(1,696,890)
Difference
(65,229)
-
Per cash flow statement page
1,673,263
(1,696,890)
32
Analysis of changes in net debt - group
1 July 2024
Cash flows
30 June 2025
£
£
£
Cash at bank and in hand
8,016
1,335,420
1,343,436
Bank overdrafts
(620,383)
620,383
-
0
(612,367)
1,955,803
1,343,436
Other loans
(25,026,800)
15,643,198
(9,383,602)
Loans from parent
(54,564,545)
(5,673,503)
(60,238,048)
Finance leases
(1,071,894)
167,232
(904,662)
(81,275,606)
12,092,730
(69,182,876)
33
Analysis of changes in net debt - company
1 July 2024
Cash flows
30 June 2025
£
£
£
Cash at bank and in hand
4,639
(2,150)
2,489
Loans from parent
(54,564,545)
(5,673,503)
(60,238,048)
(54,559,906)
(5,675,653)
(60,235,559)
2025-06-30 2024-07-01 false false CCH Software CCH Accounts Production 2025.300 D Jarmorini M Juri SI Duxbury false 08112624 bus:Consolidated 2024-07-01 2025-06-30 08112624 2024-07-01 2025-06-30 08112624 bus:Director1 2024-07-01 2025-06-30 08112624 bus:Director2 2024-07-01 2025-06-30 08112624 bus:Director3 2024-07-01 2025-06-30 08112624 bus:RegisteredOffice 2024-07-01 2025-06-30 08112624 2025-06-30 08112624 bus:Consolidated 2025-06-30 08112624 1 2024-07-01 2025-06-30 08112624 1 2023-07-01 2024-06-30 08112624 2023-07-01 2024-06-30 08112624 bus:Consolidated 2023-07-01 2024-06-30 08112624 core:RevenueReservesInvestmentFundsOnly bus:Consolidated 2023-07-01 2024-06-30 08112624 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2024-07-01 2025-06-30 08112624 2024-06-30 08112624 core:Non-currentFinancialInstruments 2025-06-30 08112624 core:Non-currentFinancialInstruments 2024-06-30 08112624 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2025-06-30 08112624 bus:Consolidated 2024-06-30 08112624 core:ShareCapital 2025-06-30 08112624 core:ShareCapital 2024-06-30 08112624 core:RetainedEarningsAccumulatedLosses 2025-06-30 08112624 core:RetainedEarningsAccumulatedLosses 2024-06-30 08112624 core:ShareCapital bus:Consolidated 2025-06-30 08112624 core:ShareCapital bus:Consolidated 2024-06-30 08112624 core:Non-controllingInterests bus:Consolidated 2025-06-30 08112624 core:ShareCapital bus:Consolidated 2023-06-30 08112624 core:OtherResidualIntangibleAssets bus:Consolidated 2025-06-30 08112624 core:OtherResidualIntangibleAssets bus:Consolidated 2024-06-30 08112624 core:Goodwill bus:Consolidated 2025-06-30 08112624 core:ComputerSoftware bus:Consolidated 2025-06-30 08112624 core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill bus:Consolidated 2025-06-30 08112624 core:Goodwill bus:Consolidated 2024-06-30 08112624 core:ComputerSoftware bus:Consolidated 2024-06-30 08112624 core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill bus:Consolidated 2024-06-30 08112624 core:LandBuildings core:OwnedOrFreeholdAssets bus:Consolidated 2025-06-30 08112624 core:LandBuildings core:LeasedAssetsHeldAsLessee bus:Consolidated 2025-06-30 08112624 core:PlantMachinery bus:Consolidated 2025-06-30 08112624 core:LandBuildings core:OwnedOrFreeholdAssets bus:Consolidated 2024-06-30 08112624 core:LandBuildings core:LeasedAssetsHeldAsLessee bus:Consolidated 2024-06-30 08112624 core:PlantMachinery bus:Consolidated 2024-06-30 08112624 bus:Consolidated 2023-06-30 08112624 core:IntangibleAssetsOtherThanGoodwill 2024-07-01 2025-06-30 08112624 core:LandBuildings core:OwnedOrFreeholdAssets 2024-07-01 2025-06-30 08112624 core:LandBuildings core:LongLeaseholdAssets 2024-07-01 2025-06-30 08112624 core:PlantMachinery 2024-07-01 2025-06-30 08112624 core:MotorVehicles 2024-07-01 2025-06-30 08112624 core:Goodwill bus:Consolidated 2024-06-30 08112624 core:ComputerSoftware bus:Consolidated 2024-06-30 08112624 core:Goodwill core:ExternallyAcquiredIntangibleAssets bus:Consolidated 2024-07-01 2025-06-30 08112624 core:ComputerSoftware core:ExternallyAcquiredIntangibleAssets bus:Consolidated 2024-07-01 2025-06-30 08112624 core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill core:ExternallyAcquiredIntangibleAssets bus:Consolidated 2024-07-01 2025-06-30 08112624 core:ExternallyAcquiredIntangibleAssets bus:Consolidated 2024-07-01 2025-06-30 08112624 core:Goodwill bus:Consolidated 2024-07-01 2025-06-30 08112624 core:ComputerSoftware bus:Consolidated 2024-07-01 2025-06-30 08112624 core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill bus:Consolidated 2024-07-01 2025-06-30 08112624 core:LandBuildings core:OwnedOrFreeholdAssets bus:Consolidated 2024-06-30 08112624 core:LandBuildings core:LeasedAssetsHeldAsLessee bus:Consolidated 2024-06-30 08112624 core:PlantMachinery bus:Consolidated 2024-06-30 08112624 bus:Consolidated 2024-06-30 08112624 core:LandBuildings core:OwnedOrFreeholdAssets bus:Consolidated 2024-07-01 2025-06-30 08112624 core:LandBuildings core:LeasedAssetsHeldAsLessee bus:Consolidated 2024-07-01 2025-06-30 08112624 core:PlantMachinery bus:Consolidated 2024-07-01 2025-06-30 08112624 core:PlantMachinery 2025-06-30 08112624 core:PlantMachinery 2024-06-30 08112624 core:Subsidiary1 2024-07-01 2025-06-30 08112624 core:Subsidiary2 2024-07-01 2025-06-30 08112624 core:Subsidiary1 1 2024-07-01 2025-06-30 08112624 core:Subsidiary2 2 2024-07-01 2025-06-30 08112624 core:CurrentFinancialInstruments 2025-06-30 08112624 core:CurrentFinancialInstruments 2024-06-30 08112624 core:CurrentFinancialInstruments 1 2025-06-30 08112624 core:Non-currentFinancialInstruments bus:Consolidated 2 2025-06-30 08112624 core:Non-currentFinancialInstruments bus:Consolidated 3 2025-06-30 08112624 core:Non-currentFinancialInstruments 4 2025-06-30 08112624 core:Non-currentFinancialInstruments 5 2025-06-30 08112624 core:CurrentFinancialInstruments bus:Consolidated 2025-06-30 08112624 core:CurrentFinancialInstruments bus:Consolidated 2024-06-30 08112624 core:Non-currentFinancialInstruments bus:Consolidated 2025-06-30 08112624 core:Non-currentFinancialInstruments bus:Consolidated 2024-06-30 08112624 core:WithinOneYear bus:Consolidated 2025-06-30 08112624 core:WithinOneYear bus:Consolidated 2024-06-30 08112624 core:CurrentFinancialInstruments core:WithinOneYear 2025-06-30 08112624 core:CurrentFinancialInstruments core:WithinOneYear 2024-06-30 08112624 core:Non-currentFinancialInstruments core:AfterOneYear bus:Consolidated 2025-06-30 08112624 core:Non-currentFinancialInstruments core:AfterOneYear bus:Consolidated 2024-06-30 08112624 core:Non-currentFinancialInstruments core:AfterOneYear 2025-06-30 08112624 core:Non-currentFinancialInstruments core:AfterOneYear 2024-06-30 08112624 core:CurrentFinancialInstruments core:WithinOneYear 1 2025-06-30 08112624 core:CurrentFinancialInstruments core:WithinOneYear 1 2024-06-30 08112624 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2024-06-30 08112624 core:WithinOneYear 2025-06-30 08112624 core:WithinOneYear 2024-06-30 08112624 core:BetweenTwoFiveYears 2025-06-30 08112624 core:BetweenTwoFiveYears 2024-06-30 08112624 bus:PrivateLimitedCompanyLtd 2024-07-01 2025-06-30 08112624 bus:FRS102 2024-07-01 2025-06-30 08112624 bus:Audited 2024-07-01 2025-06-30 08112624 bus:ConsolidatedGroupCompanyAccounts 2024-07-01 2025-06-30 08112624 bus:FullAccounts 2024-07-01 2025-06-30 xbrli:pure xbrli:shares iso4217:GBP