RNS Number:9061H
Southampton Leisure Holdings PLC
28 January 2005
Chairman's statement
For the six months ended 30 November 2004 your company has recorded a loss
before taxation of #1,655,000. This figure is arrived at after taking into
account #1,013,000 profit on disposal of players and #3,094,000 of exceptional
profit arising from the completion and sale of the Club's former stadium, "The
Dell".
The half year figures are sometimes complicated by various timing differences,
making comparison with the previous half year less straightforward, but the
financial summary is set out below for your consideration.
Financial review
Turnover #18.9m (2003: #18.7m)
Matchday income increased from #5.8m to #6.2m. Eight Premier League matches were
played compared to seven in the previous period. The average attendance in the
period saw a reduction from 31,704 to 29,862, largely as a result of changes to
kick-off times necessitated by the new broadcasting contract. The previous half
year results benefited from a home UEFA cup tie against Steaua Bucharest.
Revenue from the Carling Cup was modest and showed a small increase on the
previous period. Income from matchday hospitality and catering showed a small
increase in the period largely as a result of the additional Premier League
fixture.
Broadcasting income increased from #8.1m to #8.8m. This period saw the start of
the new three year TV deal with Sky, centrally negotiated by the Premier League.
Whilst there was a reduction in the basic domestic TV distribution, the Club
benefited from appearing live on Sky five times compared to twice in the
previous period, together with increased revenues from overseas TV
distributions.
Commercial income reduced from #4.5m to #3.9m. The decrease in income is
primarily due to a fall in retail income, with the previous period benefiting
from the sale of a new home kit and UEFA kit. Other commercial areas were
comparable to the previous period, with increases from non-matchday activities
and community based soccer courses.
Operating costs #20.1m (2003: #19.2m)
Operating costs increased by 4.7% in the period. Stadium running costs increased
as a result of the additional fixture. Player and coaches wages remained at a
comparable level to the previous period. This period includes settlement
payments to coaching staff of #0.3m.
Player trading #2.6m loss (2003: #3.4m profit)
During the period five new players were added to the first team squad at a cost
of #5.2m. This resulted in an increase in the amortisation charge to #3.5m from
#3.2m. Fitz Hall was sold to Crystal Palace at a profit of #1.0m. The
comparative period includes #7.0m as the profit on sale of Wayne Bridge to
Chelsea.
Since the period end, James Beattie has been sold to Everton for #6.0m. This
will result in a profit on player disposal of #4.5m, which will be reflected in
the second half of the year. The squad has further been strengthened by the
signing of two players at a transfer cost of #2.1m and the loan signing of a
further player.
Exceptional items #3.1m (2003: #nil)
The results include an exceptional profit of #3.1m arising on completion of the
development and sale of the Club's former stadium, The Dell.
Cash flow
Net cash outflow for the period was #6.8m (2003: #1.3m) and net debt at 30
November 2004 was #22.7m (2003: #21.1m).
Dividend
As last year, no interim dividend is proposed.
Football update
At the time of writing, we lie 18th in the FA Premier League with 18 points from
24 games. Injury has been a recurrent hall-mark of the past twelve months and
has undoubtedly played a large part in our underperformance. Management
instability since the departure of Gordon Strachan has also not helped to create
the ideal conditions for sporting performance. The arrival of Harry Redknapp and
his staff, has given players, supporters and the media confidence and our recent
league victory over Liverpool has given everybody at the Club a big lift. We
welcome Harry Redknapp's son, Jamie, from Tottenham Hotspur, along with Calum
Davenport. Nigel Quashie has also joined us from Portsmouth but, to underline my
earlier observations about injury, was sadly unable to play against Liverpool
due to an injury sustained in training two days before the game. I am grateful
to them for showing the mettle to join us in our current difficulty and look
forward to working with them to take the Club forward.
James Beattie recently departed to Everton for a fee of #6.0m. This followed
discussions in the summer when he made it clear he wanted to leave Southampton.
We are left with around #4.5m after contractual payments to third parties
including Blackburn Rovers. James joined us in 1998 for #1.0m from Blackburn and
up until the end of last season he was not only a prolific goal scorer but also
a great ambassador for the Club. We wish him well in his future career and thank
him for his considerable contribution to our success over the seven years he was
with us.
Football update (continued)
Harry Redknapp is looking to try and strengthen the squad further before the
transfer deadline at the end of January. This needs to be balanced against the
overall size of the squad and the promising players we now have coming through
the Academy but we are intent upon ensuring that we are not short of resources
for the final 14 games of the season. The Academies U18 side deserve great
credit for a tremendous start to the season winning their first 17 games.
Stadium
Off the field, commercial income is similar to the equivalent period last year
with the exception of reduced retail sales. During the half year we welcome
T-Mobile as the Club's mobile phone sponsor and Orchard Homes as Academy
sponsor. We have completed the conversion of the Itchen Suite concourse to a
hospitality venue and have already held three functions, including the launch of
the BMW 1 series. The Club has obtained planning consent to use the stadium
for up to two concerts per year and look forward to staging the first event in
the 2005 close season. During the period, considerable progress has been made in
establishing The Saint as a significant player in the local media. The Saint now
broadcasts in FM, digital, satellite and internet platforms.
Summary
Over the past eight years during my Chairmanship of the Club, we have resisted
the siren-like calls from all directions to spend more in transfer fees and
wages than our revenue allows. Indeed we have watched the damaging effects of
financial imprudence in the football industry as the normal laws of economic
logic are ignored. Clubs like Leeds, Sheffield Wednesday, Bradford, Coventry,
West Ham, Derby, Leicester, Ipswich, Watford and others have been a warning to
us all. It is the job of the Board to balance the interests of the next
generation of players and supporters with the aspirations of the current
generation, thereby underwriting the future of the Club. Our current league
position is once again testing our long term prudence. Our current job is to try
and extricate ourselves from our current difficulty without putting the long
term future of the Club at risk. We believe that the depth of our existing
squad, combined with our recent signings, gives us an excellent chance of
success but we are always aware of the fact that sporting success is an art and
not a science.
I look forward to updating you in more detail at the end of the financial year.
R J G Lowe
Chairman
27 January 2005
Consolidated profit and loss account
for the six months ended 30 November 2004
Unaudited Unaudited Audited
6 months ended 30 November 2004 6 months Year
Operations ended ended
excluding Player 30 November 31 May
player trading trading* Total 2003 2004
Note #'000 #'000 #'000 #'000 #'000
Turnover 2 18,920 - 18,920 18,653 49,823
Cost of sales (16,975) (3,585) (20,560) (19,710) (43,679)
Gross profit/(loss) 1,945 (3,585) (1,640) (1,057) 6,144
Administrative expenses (3,127) - (3,127) (2,723) (6,874)
Operating loss (1,182) (3,585) (4,767) (3,780) (730)
Profit on disposal of players - 1,013 1,013 6,675 6,312
(Loss)/profit before exceptional 3 (1,182) (2,572) (3,754) 2,895 5,582
items, interest and taxation
Exceptional items 3,094 - -
Amounts written off investments - - (460)
Net interest payable (995) (983) (2,144)
(Loss)/profit on ordinary (1,655) 1,912 2,978
activities before taxation
Tax on (loss)/profit on ordinary 358 (718) (1,383)
activities
(Loss)/profit on ordinary (1,297) 1,194 1,595
activities after taxation
Dividend - - (856)
(Loss)/profit for the period (1,297) 1,194 739
(Loss)/earnings per share 4 (4.57)p 4.18p 5.60p
Diluted (loss)/earnings per share 4 (4.56)p 4.18p 5.60p
*Player trading represents the amortisation of registrations and the profit or
loss on disposal of registrations.
Consolidated balance sheet
as at 30 November 2004
Unaudited Unaudited Audited
30 November 30 November 31 May
2004 2003 2004
#'000 #'000 #'000
Fixed assets
Intangible assets 15,007 18,108 14,007
Tangible assets 37,079 39,152 37,748
52,086 57,260 51,755
Current assets
Stocks 726 684 528
Loans 120 175 155
Debtors 6,095 4,528 3,086
Investments _ - 415
Cash at bank and in hand 2,746 3,966 8,770
9,687 9,353 12,954
Creditors: amounts falling due within one year (21,119) (21,938) (21,381)
Net current liabilities (11,432) (12,585) (8,427)
Total assets less current liabilities 40,654 44,675 43,328
Creditors: amounts falling due after more than one year (28,526) (30,624) (29,562)
Provisions for liabilities and charges (2,262) (2,233) (2,403)
Net assets 9,866 11,818 11,363
Capital and reserves
Share capital 1,405 1,427 1,427
Share premium account 3,340 3,340 3,340
Other reserves 1,050 1,028 1,028
Profit and loss account 4,071 6,023 5,568
Equity shareholders' funds 9,866 11,818 11,363
Group cash flow statement
for the six months ended 30 November 2004
Unaudited Unaudited Audited
6 months 6 months Year
ended ended Ended
30 November 30 November 31 May
2004 2003 2004
#'000 #'000 #'000
Operating loss (4,404) (3,780) (730)
Amortisation of players 3,585 3,227 9,119
Amortisation on goodwill 103 - 25
Depreciation 1,051 996 2,034
Loss on sale of tangible fixed assets 1 - 107
(Increase) in stock and work in progress (197) (415) (259)
(Increase)/decrease in loans and debtors (2,125) (1,303) 194
Increase in creditors 917 4,912 1,345
Net cash (outflow)/inflow from operating activities (1,069) 3,637 11,835
Returns on investments and servicing of finance (2,036) (2,046) (2,164)
Payments to acquire subsidiary undertaking (233) - (287)
Proceeds on disposal of tangible fixed assets 3,099 - -
Payments to acquire tangible fixed assets (388) (761) (951)
Proceeds on disposal of player registrations 325 7,000 6,782
Payments to acquire player registrations (5,413) (7,807) (9,939)
Equity dividends paid (856) (856) (856)
Cash (outflow)/inflow before use of liquid resources and (6,571) (833) 4,420
financing
Financing
Purchase of own shares (200) - -
Sale/(purchase) of current asset investments 415 - (415)
Repayment of borrowings (484) (465) (528)
Net cash outflow from financing (269) (465) (528)
(Decrease)/increase in cash in the period (6,840) (1,298) 3,477
Reconciliation of net cash flow to movement in net debt
(Decrease)/increase in cash in the period (6,840) (1,298) 3,477
Cash inflow from change in debt and lease financing 484 465 528
Change in net debt resulting from cash flows in the period (6,356) (833) 4,005
Amortisation of finance costs (38) - (40)
Movements in net debt in the period (6,394) (833) 3,965
Opening net debt (16,266) (20,231) (20,231)
Closing net debt (22,660) (21,064) (16,266)
Notes to the interim results
for the six months ended 30 November 2004
1. Statement of total recognised gains and losses
A statement of total recognised gains and losses has not been presented since
there are no gains and losses other than those stated in the consolidated profit
and loss account.
2. Turnover
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
30 November 30 November 31 May
2004 2003 2004
#'000 #'000 #'000
Matchday 6,175 5,869 16,263
Broadcasting 8,773 8,127 24,544
Commercial 3,932 4,508 8,844
Property 40 149 172
18,920 18,653 49,823
3. Comparative profit and loss account for the six months ended 30 November 2003
Operations
excluding
player Player Total
trading trading 2003
#'000 #'000 #'000
Turnover 18,653 - 18,653
Cost of sales (16,483) (3,227) (19,710)
Gross profit 2,170 (3,227) (1,057)
Administrative expenses (2,723) - (2,723)
Operating loss (553) (3,227) (3,780)
Profit on disposal of players - 6,675 6,675
Loss/(profit) before interest and taxation (553) 3,448 2,895
4. Earnings/(loss) per share
6 months 6 months Year
ended ended Ended
30 November 30 November 31 May
2004 2003 2004
Basic (loss)/earnings per share
Loss/profit attributable (#000's) (1,297) 1,194 1,595
Weighted average no. of shares (000's) 28,391 28,541 28,541
Basic (loss)/earnings per share (4.57)p 4.18p 5.60p
Diluted (loss)/earnings per share
(Loss)/profit attributable (#000's) (1,297) 1,194 1,595
Weighted average no. of shares (000's) 28,391 28,541 28,541
Effect of diluted potential ordinary shares - options (000's) 26 - -
Adjusted weighted average no. of shares (000's) 28,417 28,541 28,541
Diluted (loss)/earnings per share (4.56)p 4.18p 5.60p
5. Accounting policies
The results and summary balance sheet incorporate the unaudited accounts of
Southampton Leisure Holdings Plc and all its subsidiaries covering the six month
period ended 30 November 2004, and have been prepared on a consistent basis with
the audited financial statements for the year ended 31 May 2004.
The unaudited profit and loss account for the six months period to, and the
unaudited balance sheet as at 30 November 2004 and its comparative period to 30
November 2003 do not constitute statutory financial statements within the
meaning of Section 240 of the Companies Act 1985.
The interim financial statements were approved by the Board on 27 January 2005.
6. Year ended 31 May 2004
The results for the year to 31 May 2004 are extracted from the full annual
accounts of the Company which have been filed with the Registrar of Companies.
The Independent Auditors' Report on those accounts is unqualified.
7. Registered office
This Interim Report is available to the public at the Company's registered
office, The Friends Provident St. Mary's Stadium, Britannia Road, Southampton,
SO14 5FP.
Independent review report
to Southampton Leisure Holdings Plc
Introduction
We have been instructed by the Company to review the financial information for
the six months ended 30 November 2004 which comprises the consolidated profit
and loss account, the consolidated balance sheet, the Group cash flow statement
and related notes 1 to 7. We have read the other information contained in the
Interim Report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
This report is made solely to the Company, in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the Company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the Company, for our review work, for this report, or for the conclusions we
have formed.
Directors' responsibilities
The Interim Report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors. The Directors are
responsible for ensuring that the accounting policies and presentation applied
to the interim figures are consistent with those applied in preparing the
preceding annual accounts except where any changes, and the reasons for them,
are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial
data, and based thereon, assessing whether the accounting policies and
presentation have been consistently applied unless otherwise disclosed. A review
excludes audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom auditing standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 November 2004.
Deloitte & Touche LLP
Chartered Accountants
Southampton
27 January 2005
Southampton Leisure Holdings Plc
The Friends Provident St. Mary's Stadium
Britannia Road
Southampton SO14 5FP
Tel: 087 0220 0000
Fax: 023 8072 7727
Website: www.saintsfc.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFSDLFIDFIE
Southampton LS. (LSE:SOO)
Gráfico Histórico do Ativo
De Fev 2025 até Mar 2025
Southampton LS. (LSE:SOO)
Gráfico Histórico do Ativo
De Mar 2024 até Mar 2025
