Gillingham Football Club Limited - Limited company accounts 16.3
Gillingham Football Club Limited - Limited company accounts 16.3
REGISTERED NUMBER: |
GILLINGHAM FOOTBALL CLUB LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2016 |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
CONTENTS OF THE FINANCIAL STATEMENTS |
For The Year Ended 31 May 2016 |
Page |
Company Information | 1 |
Chairman's Statement | 2 |
Strategic Report | 3 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Statement of Cash Flows | 12 |
Notes to the Statement of Cash Flows | 13 |
Notes to the Financial Statements | 14 |
GILLINGHAM FOOTBALL CLUB LIMITED |
COMPANY INFORMATION |
For The Year Ended 31 May 2016 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
Hilden Park House |
79 Tonbridge Road |
Hildenborough |
Tonbridge |
Kent |
TN11 9BH |
BANKERS: |
Hatton Garden |
99 Hatton Garden |
London |
EC1N 8DN |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
CHAIRMAN'S STATEMENT |
For The Year Ended 31 May 2016 |
The 2015/2016 playing season started well with the team in the top three for the period to end December 2015, however |
the loss of key players through injury led to an unsettled side and, what was looking like at least a play -off spot at worst, |
ended up seeing the team finish the season disappointing in 9th place. |
The Club had also turned down significant offers for key players in the January transfer window, on the basis those |
players would have contributed to the push for promotion, however the value remains in the playing squad and will be of |
benefit to the business going forward. |
On the financial side, football revenue was strong due to the Clubs high league position as mentioned, however there |
was a substantial drop in transfer income against forecast due to the policy of keeping the strong squad together, and |
indeed a reduction on previous years of 'sell on" benefits. |
The most significant effect however on the Companies profitability was caused by the Clubs catering company |
Centerplate Limited, who unilaterally exited their long term contract with the Club in March 2015, with over 7 years to |
run on the agreement. This resulted in a loss of guaranteed income and profit of over £400k. |
This was compounded by the fact that Centerplate left the Club in a poor condition, removing all previous customer |
data, and taking down the "Priestfield.com" website, which made trading almost impossible during that period, and the |
period following. |
The Club attempted to find appropriate and alternative caterers to take on the business but none were found that were |
willing to offer any form of guaranteed revenue, similar to that enjoyed under the Centerplate agreement, thus the Club |
had little option other than to commence the process of running the catering operation themselves, which, as with any |
other form of 'start up' operation incurred substantial costs and therefore overall losses in this period. |
The Club is committed to continuing its efforts to return this part of the business to profitability, however the task is |
substantial and it is envisaged the catering business will take several years before it can have a positive impact on the |
main trading account. |
Centerplate conceded liability for the breach of contract in July 2016, however the matter of quantum is still to be |
agreed. A High Court date in early November 2017 has been set for the matter to be determined, if indeed Centerplate |
do not make an acceptable offer prior to this date. |
I would like to thank all sponsors and supporters for their efforts during this period and indeed the staff who once again |
have faced significant challenges in a strong and positive manner. |
P D P Scally |
Chairman |
5th May 2017 |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
STRATEGIC REPORT |
For The Year Ended 31 May 2016 |
The directors present their strategic report for the year ended 31 May 2016. |
REVIEW OF BUSINESS |
The Company has continued to trade as a professional football club, with this being the principal activity during the |
year. |
Results and performance |
The results of the company for the year, as set out on pages 5 to 22, show a loss on ordinary activities before tax of |
£886,677 (2015: profit of £188,438). The shareholders' funds of the Company total £1,580,471 (2015: £1,667,148). |
The Football Club faced a challenging year due to the factors discussed in the Chairman's Statement and this caused a |
trading loss for the period. |
Strategy |
Our strategy in investing in youth development continues to pay dividends with two of our home grown players playing |
in the first team squad, thus an exciting and potentially beneficial season lies ahead as Clubs in higher divisions start to |
show interest. |
Key performance indicators ('KPIs') |
We have made significant progress throughout the year in relation to key elements of our strategy. The Board monitors |
the progress of the Company by reference to the following KPIs: |
Turnover increased marginally to £5.7m (2015: £5.6m) despite reduced player sales, however the gross profit margin |
decreased to 8.8% from 27.7% in 2015 due to the impact of Centerplate withdrawing from the catering contract. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The process of risk acceptance and risk management is addressed by the directors on a regular basis. |
Compliance with regulation, legal and ethical standards is a priority for the Company. |
Relegation |
The risk associated with relegation always has to be considered, however it is not deemed to be material as there are not |
many differences between League One and League Two in terms of the business model. Attendances are fairly |
consistent between both leagues, which in turn stabilises most of the revenue streams. Cost control is always paramount |
and consistently reviewed using the management accounts, investigating any variances to forecast to identify |
improvements. |
Repairs and maintenance to stadium |
We have a team dedicated to repairs and maintenance who review all areas of the stadium to ensure that repairs carried |
out are done in a timely and professional manner. This reduces the need for any major refurbishment work. |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
STRATEGIC REPORT |
For The Year Ended 31 May 2016 |
FUTURE DEVELOPMENTS |
The Board continues to seek additional external investment and plans to relocate the stadium to a new local site are |
ongoing, the local Authority are supportive and it is hoped an outline planning proposal will be submitted later in 2017 |
for a new stadium and appropriate enabling development. |
I would like to thank our shareholders, supporters, sponsors and staff for their commitment and hard work during this |
year, and I hope their efforts are recognised in the achievements of the business going forward. |
ON BEHALF OF THE BOARD: |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
REPORT OF THE DIRECTORS |
For The Year Ended 31 May 2016 |
The directors present their report with the financial statements of the company for the year ended 31 May 2016. |
DIVIDENDS |
The Company is unable to propose a dividend for the year due to a lack of distributable reserves. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2015 to the date of this report. |
P Scally holds options over 2,500,000 Ordinary Shares of 1p each, at an option price of 30p each granted on 22 |
November 1999. |
EMPLOYEE INVOLVEMENT AND DISABLED EMPLOYEES |
Within the bounds of commercial confidentiality, staff at all levels are kept fully informed of matters that affect the |
progress of the company and are of interest to them as employees. |
Disabled persons are given full and fair consideration for all types of vacancy. If an existing employee becomes |
disabled, such steps as are practical and responsible are taken to retain him/her in employment. Where appropriate, |
assistance with rehabilitation and suitable training are given. Disabled persons have equal opportunities for training, |
career development and promotion, except in so far as such opportunities are constrained by the practical limitations of |
their disability. |
POST BALANCE SHEET EVENTS |
Post balance sheet events have been disclosed in Note 21 to the accounts and relate entirely to developments in relation |
to the case of Gillingham Football Club Ltd V Centerplate UK Ltd. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic |
report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and |
Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable |
law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors |
have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting |
Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The |
Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not |
approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the |
company and of the profit or loss of the company for that period. In preparing these financial statements, the directors |
are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
REPORT OF THE DIRECTORS |
For The Year Ended 31 May 2016 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the |
company's transactions and disclose with reasonable accuracy at any time the financial position of the company and |
enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for |
safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud |
and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act |
2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken |
as a director in order to make himself aware of any relevant audit information and to establish that the company's |
auditors are aware of that information. |
AUDITORS |
The auditors, Hilden Park Accountants Limited, will be proposed for re-appointment in accordance with Section 485 of |
the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GILLINGHAM FOOTBALL CLUB LIMITED |
We have audited the financial statements of Gillingham Football Club Limited for the year ended 31 May 2016 which |
comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, |
Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their |
preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted |
Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the |
UK and Republic of Ireland'. |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the |
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those |
matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent |
permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's |
members as a body, for our audit work, for this report, or for the opinions we have formed. |
Respective responsibilities of directors and auditors |
Scope of the audit of the financial statements |
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give |
reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. |
This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and |
have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by |
the directors; and the overall presentation of the financial statements. In addition, we read all the financial and |
non-financial information in the Chairman's Statement the Strategic Report and the Report of the Directors to identify |
material inconsistencies with the audited financial statements and to identify any information that is apparently |
materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing |
the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for |
our report. |
Opinion on financial statements |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 May 2016 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Opinion on other matter prescribed by the Companies Act 2006 |
In our opinion the information given in the Strategic Report and the Report of the Directors for the financial year for |
which the financial statements are prepared is consistent with the financial statements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GILLINGHAM FOOTBALL CLUB LIMITED |
Matters on which we are required to report by exception |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you |
if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditors |
Hilden Park House |
79 Tonbridge Road |
Hildenborough |
Tonbridge |
Kent |
TN11 9BH |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
STATEMENT OF COMPREHENSIVE INCOME |
For The Year Ended 31 May 2016 |
31/5/16 | 31/5/15 |
Notes | £ | £ |
TURNOVER | 2 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING (LOSS)/PROFIT | 4 | ( |
) |
Interest payable and similar charges | 5 |
(LOSS)/PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION |
( |
) |
Tax on (loss)/profit on ordinary activities | 6 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME |
Property revaluation |
Income tax relating to other comprehensive income |
( |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
STATEMENT OF FINANCIAL POSITION |
31 May 2016 |
31/5/16 | 31/5/15 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 7 |
Tangible assets | 8 |
CURRENT ASSETS |
Stocks | 9 |
Debtors | 10 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
12 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) |
ACCRUALS AND DEFERRED INCOME | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Revaluation reserve | 19 |
Retained earnings | 19 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors on |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 31 May 2016 |
Called up |
share | Retained | Share | Revaluation | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 June 2014 | ( |
) |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 May 2015 | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 May 2016 | ( |
) |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
STATEMENT OF CASH FLOWS |
For The Year Ended 31 May 2016 |
31/5/16 | 31/5/15 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Net cash from operating activities | ( |
) | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) |
Amount withdrawn by directors | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
512,448 |
Cash and cash equivalents at end of year | 2 | 105,463 | 315,676 |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
NOTES TO THE STATEMENT OF CASH FLOWS |
For The Year Ended 31 May 2016 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31/5/16 | 31/5/15 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 117,244 | 102,379 |
(665,850 | ) | 405,252 |
Decrease/(increase) in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of |
these Statement of Financial Position amounts: |
Year ended 31 May 2016 |
31.5.16 | 1.6.15 |
£ | £ |
Cash and cash equivalents | 105,463 | 315,676 |
Year ended 31 May 2015 |
31.5.15 | 1.6.14 |
£ | £ |
Cash and cash equivalents | 315,676 | 512,448 |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
NOTES TO THE FINANCIAL STATEMENTS |
For The Year Ended 31 May 2016 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover includes gate receipts, Football League pool, commercial activities, advertising, television and radio |
fees, donations, sundry related income and the annual release of grants. Advanced invoicing and season ticket |
sales are included within deferred income and released to turnover in the relevant accounting period. |
Turnover excludes value added tax, transfer fees and amounts due to the Football League, Football Association |
and visiting football clubs. |
All turnover arises in the United Kingdom. |
Tangible fixed assets |
Fixtures & fittings | - |
Motor vehicles | - |
Office equipment | - |
Priestfield Stadium is held by the company at it's valuation of £3,000,000. The stadium is not depreciated on the |
basis that it is constantly maintained and updated. |
This policy represents a departure from statutory accounting principles, which require depreciation to be |
provided on all fixed assets. The directors consider that this policy is necessary in order that the Financial |
Statements may give a true and fair view because the current value is of prime importance rather than the |
systematic annual depreciation. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow |
moving items. |
Taxation |
The charge for taxation is based on the result for the year and takes into account deferred taxation. Provision is |
made for material deferred taxation, in respect of all timing difference that have originated but not reversed at the |
balance sheet date. Deferred tax assets are recognised only to the extent that the Directors consider that it is |
more likely than not, that there will be suitable taxable profits from which the future reversal of the underlying |
timing differences can be deducted. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension |
scheme are charged to profit or loss in the period to which they relate. |
Intangible fixed assets |
The costs associated with the acquisition of player registrations are capitalised as intangible fixed assets. These |
costs are amortised over the period of their contract on a straight line basis. An impairment review is carried out |
at the end of each financial year to establish if any events or changes in circumstances indicate the carrying |
values may not be recoverable. Signing on fees and subsequent appearance fees are accounted for in the period |
in which they become payable or receivable. |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2016 |
1. | ACCOUNTING POLICIES - continued |
Leased assets and hire purchase commitments |
Assets financed by hire purchase agreements are included in the company's balance sheet at cost less |
depreciation in accordance with the company's normal accounting policies. The present value of future payments |
is shown as a liability. The interest element of the repayments is charged to the profit and loss account over the |
period of the lease in proportion to the balance of capital payments outstanding. Rentals payable under operating |
lease contracts are charged to the profit and loss account as incurred. |
Deferred grants |
Grants receivable from the Football Trust and similar bodies in respect of capital expenditure are treated as |
deferred income and released to the profit and loss account over a future period. This period will equal the |
economic life of the assets to which the grant relate in order to match the income to the depreciation charged on |
these assets. Deferred grant income in the balance sheet represents total grants received less amounts credited to |
the profit and loss account. |
2. | TURNOVER |
The turnover and loss (2015 - profit) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
31/5/16 | 31/5/15 |
£ | £ |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2016 |
3. | STAFF COSTS |
2016 | 2015 |
£ | £ |
Wages and salaries | 3,201,493 | 2,905,700 |
Social security costs | 303,912 | 283,797 |
3,504,405 | 3,189,497 |
The average monthly number of employees during the year was as follows: |
2016 | 2015 |
Administration and directors | 5 | 7 |
Coaches, ground staff and management | 24 | 16 |
Players | 43 | 37 |
Other commercial activities | 11 | 9 |
83 | 69 |
These figures do not include staff employed for match days only. |
4. | OPERATING (LOSS)/PROFIT |
The operating loss (2015 - operating profit) is stated after charging: |
31/5/16 | 31/5/15 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Players' registrations amortisation |
Auditors' remuneration |
Directors' remuneration |
5. | INTEREST PAYABLE AND SIMILAR CHARGES |
31/5/16 | 31/5/15 |
£ | £ |
Bank loan interest |
Hire purchase interest |
6. | TAXATION |
Analysis of the tax charge |
No liability to UK corporation tax arose on ordinary activities for the year ended 31 May 2016 nor for the year |
ended 31 May 2015. |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2016 |
6. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
31/5/16 |
Gross | Tax | Net |
£ | £ | £ |
Property revaluation | (200,000 | ) | 800,000 |
1,000,000 | (200,000 | ) | 800,000 |
7. | INTANGIBLE FIXED ASSETS |
Players' |
registrations |
£ |
COST |
At 1 June 2015 |
and 31 May 2016 |
AMORTISATION |
At 1 June 2015 |
Amortisation for year |
At 31 May 2016 |
NET BOOK VALUE |
At 31 May 2016 |
At 31 May 2015 |
8. | TANGIBLE FIXED ASSETS |
Freehold | Fixtures | Motor | Office |
property | & fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 June 2015 |
Additions |
Revaluations |
At 31 May 2016 |
DEPRECIATION |
At 1 June 2015 |
Charge for year |
At 31 May 2016 |
NET BOOK VALUE |
At 31 May 2016 |
At 31 May 2015 |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2016 |
8. | TANGIBLE FIXED ASSETS - continued |
Cost or valuation at 31 May 2016 is represented by: |
Freehold | Fixtures | Motor | Office |
property | & fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Valuation in 2012 | 1,950,000 | - | - | - | 1,950,000 |
Valuation in 2016 | 1,000,000 | - | - | - | 1,000,000 |
Cost | 1,050,000 | 2,230,439 | 87,575 | 275,010 | 3,643,024 |
4,000,000 | 2,230,439 | 87,575 | 275,010 | 6,593,024 |
If the stadium had not been revalued it would have been included at the following historical cost: |
31/5/16 | 31/5/15 |
£ | £ |
Cost | 1,050,000 | 1,050,000 |
Aggregate depreciation | 86,000 | 51,600 |
Value of land in freehold land and buildings | 190,000 | 190,000 |
The stadium was valued on an open market basis on 31 May 2016 by J Scannell FRICS IRRV MCIArb (Watson Day) |
. |
Assets held under HP agreements originally cost £68,325 (2015: £52,815) and have a net book value of £28,138 |
(2015: £19,423). Depreciation charged for the year was £6,795 (2015: £5,733). |
9. | STOCKS |
31/5/16 | 31/5/15 |
£ | £ |
Goods for resale |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/5/16 | 31/5/15 |
£ | £ |
Trade debtors |
Other debtors | 1,015,810 | 633,355 |
Prepayments and accrued income |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2016 |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/5/16 | 31/5/15 |
£ | £ |
Hire purchase contracts (see note 14) |
Trade creditors |
Other taxes and social security | 189,969 | 333,308 |
Other creditors | 38,129 | 5,830 |
Directors' loan accounts | 449,868 | 477,035 |
Accruals and deferred income |
12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31/5/16 | 31/5/15 |
£ | £ |
Other loans (see note 13) |
Hire purchase contracts (see note 14) |
13. | LOANS |
An analysis of the maturity of loans is given below: |
31/5/16 | 31/5/15 |
£ | £ |
Amounts falling due between two and five years: |
Other loans |
14. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
31/5/16 | 31/5/15 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2016 |
15. | SECURED DEBTS |
The following secured debts are included within creditors: |
31/5/16 | 31/5/15 |
£ | £ |
Other loans |
Hire purchase contracts | 16,979 | 13,207 |
The other loans are secured by a debenture over the whole of the company's assets and by a legal charge over |
Priestfield Stadium, Gillingham (both dated 26 September 2011). |
16. | PROVISIONS FOR LIABILITIES |
31/5/16 | 31/5/15 |
£ | £ |
Deferred tax | 200,000 | - |
Deferred |
tax |
£ |
Provided during year |
Balance at 31 May 2016 |
17. | ACCRUALS AND DEFERRED INCOME |
31/5/16 | 31/5/15 |
£ | £ |
Deferred income | 847,383 | 994,655 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/5/16 | 31/5/15 |
value: | £ | £ |
Ordinary | 1p | 470,051 | 470,051 |
19. | RESERVES |
Retained | Share | Revaluation |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 June 2015 | ( |
) | 1,197,097 |
Deficit for the year | ( |
) | ( |
) |
Revaluation | - | - | 1,000,000 | 1,000,000 |
Deferred tax | - | - | (200,000 | ) | (200,000 | ) |
At 31 May 2016 | ( |
) | 1,110,420 |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2016 |
20. | PENSION COMMITMENTS |
The company contributes to defined contribution pension schemes for the benefit of the players. The assets of the |
schemes are administered by trustees in funds independent from those of the company. The total cost for the |
period was £19,061 (2015: £19,252) |
21. | RELATED PARTY DISCLOSURES |
£233,161). |
£ |
2016 (2015: £1,794). |
May 2016 (2015: £1,800,000) by the company, this amount is shown in note 12. |
22. | POST BALANCE SHEET EVENTS |
The following events occurred after the balance sheet date but are not reflective of conditions that existed as at |
31 May 2016. As such the following are non-adjusting post balance sheet events: |
In relation to the case of Gillingham Football Club Ltd vs Centerplate UK Ltd, Centerplate were instructed by a |
court order dated 12 July 2016 to pay the club £375,000 by way of an interim payment on account of the |
damages which are to be assessed. |
On 10 August 2016 Centerplate offered to settle for the sum of £950,000 which was rejected. This was followed |
by a counter proposal by the club to settle for £1,450,000 which is yet to be accepted. |
A trial date has been set for 1 November 2017 for the case of Gillingham Football Club Ltd vs Centerplate UK |
Ltd. |
The net position of the balances contained within Notes 10 and 11 is £950,000 which is the prudent estimate of |
the offer that has been made by Centerplate as discussed above. The outcome in reality is anticipated to be far |
more favourable than this. |
23. | ULTIMATE CONTROLLING PARTY |
The company is under the control of GFC Holdings Limited which owns the majority of the voting rights. It has |
included the Company in its group accounts, copies of which are available from its registered office: Priestfield |
Stadium, Redfern Avenue, Gillingham, Kent, ME7 4DD. |
Mr P Scally, a director, is the ultimate controlling party as the sole shareholder of GFC Holdings Limited. |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2016 |
24. | TRANSITION TO FRS102 |
This is the first year that the company has presented its results under FRS102. The last financial statements for |
the company were prepared under UK GAAP and were for the year ended 31 May 2015 and the date of |
transition to FRS102 was 1 June 2014. |
The changes in accounting policies as a result of the transition to FRS102 do not lead to any material changes to |
the 2015 brought forward and carried forward balances, per the Balance Sheet and the Statement of |
comprehensive income for the year ended 31 May 2016. |