RNS Number:1368U
Southampton Leisure Holdings PLC
30 March 2007
Southampton Leisure Holdings Plc
(SLH") or ("the Company")
Interim Results to 31 December 2006
CHAIRMAN'S STATEMENT
Interim report 2006
I have pleasure in presenting the Interim Report to shareholders for the six
months ended 31 December 2006. The results show turnover of #12.8m and a loss
before taxation of #2.5m.
Financial Review
Following the change in the Company's financial year end from May to June, these
interim accounts are prepared for the six months ended 31 December 2006 and are
compared to the six months ended 30 November 2005.
Turnover #12.8m (2005: #11.4m)
Matchday income increased from #4.6m to #5.8m. The turnover increase is due to
more games being played this half year than the previous half year. 13 home
league fixtures were played in the Coca Cola Championship at an average
attendance of 22,852, this compares to 9 home league fixtures in the
corresponding period at an average attendance of 25,050.
Season ticket sales are 11,800 for the 2006/07 season compared with 13,700 for
the 2005/06.
Broadcasting income of #4.0m is at a level comparable with the corresponding
period. The majority of this income derives from the parachute payment from the
Premier League which clubs are entitled to for the two years following
relegation.
Commercial income of #2.9m is also at a level consistent with the corresponding
period. Retail and non-matchday sales continue to be strong and the numbers in
the hospitality suites on matchdays is increasing as the season progresses.
Operating Costs #14.4m (2005: #14.3m)
Overall operating costs were at a level consistent with the previous period.
Matchday costs were higher due to the greater number of fixtures. Player and
coaches' wages reduced from #6.2m to #4.9m. It is pleasing to note that as a
percentage of turnover player and coaches' wages has reduced from 54% to 38%.
The operating loss before player trading has improved from #2.9m to #1.6m.
Player Trading #0.1m profit (2005: #2.4m profit)
The playing squad was strengthened in the summer transfer window with the
purchase of the following six new players at a cost of #6.6m - Wright Phillips,
Pele, Davis, Skacel, Viafara and Idiakez. Despite this investment the player
amortisation charge was reduced from #2.2m to #1.3m.
The profit on player sales of #1.4m was primarily from the sale of Blackstock to
QPR, together with a further #1.0m from Arsenal based on Walcott's first team
appearances. The prior period's profit benefited from the sale of Crouch to
Liverpool.
Cash flow
Net cash outflow for the period was #0.6m (2005: #1.3m inflow) and net debt at
31 December 2006 was #24.0m (2005: #20.0m).
FOOTBALL UPDATE
At the time of writing, our team has accumulated 60 points after 39 games and is
in 8th position in the Coca Cola Championship league table, with reasonable prospects
of reaching the play-off competition for promotion to the Premier League. This is
of course a very substantial improvement on the situation 12 months ago, at which
time, after the same number of games, the team lay in 20th position with only 42 points
and was in very serious danger of being relegated from the Coca Cola Championship.
George Burley and his team eventually won the battle against relegation last
season, and it is hoped that this augurs well for the success of the team during
the remainder of the current season, when we are hoping for barnstorming
performances that will enable the Club to reach the play-offs and the prospect
of playing in the Premier League next season.
BOARD CHANGE
Michael Wilde resigned as a Director of Southampton Leisure Holdings Plc and as
Chairman and Director of Southampton Football Club Ltd with effect from 28
February 2007. Shortly thereafter, Leon Crouch was appointed acting Chairman of
the Football Club.
FUNDING
In view of the key role he played in bringing about several new appointments to
the Boards of Southampton Leisure Holdings Plc and Southampton Football Club Ltd
last Summer, Michael Wilde undertook, in conjunction with the Company's
financial advisers, to seek the new investment funds needed to ensure the
long-term financial viability of the business.
Regretfully, these endeavours were unsuccessful. Following Michael Wilde's
resignation from the Board of Southampton Leisure Holdings Plc and as Chairman
and Director of Southampton Football Club Ltd, responsibility for securing new
investment has now been assumed by me and our Chief Executive, Jim Hone. We are
working closely and diligently with our financial advisers on this matter but
have nothing further to report as yet.
SUMMARY AND OUTLOOK
The team has performed well on the football field and has been in a play-off
position for most of this season and we believe that our team is strong enough
in depth and quality to maintain this challenge.
Obviously your Board has to adopt a flexible strategy going forward dependant on
whether we remain in the Championship or gain promotion to the Premiership for
year 07/08. Your Board is facing this challenge in a pragmatic way and has a
strategy in place which deals with both outcomes.
Ken Dulieu
Chairman
30 March 2007
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 31 December 2006
Unaudited 6 months ended 31 Unaudited Audited
December 2006
----------------------------
Operations 6 months 13 months
excluding ended 30 ended
player Player November 30 June
trading trading* Total 2005 2006
Note #'000 #'000 #'000 #'000 #'000
----------------------- ------ --------- -------- -------- --------- ---------
Turnover 2 12,823 - 12,823 11,433 25,696
Cost of sales (11,146) (1,289) (12,435) (13,884) (31,363)
---------------- --------- -------- -------- --------- ---------
Gross
profit/(loss) 1,677 (1,289) 388 (2,451) (5,667)
Administrative
expenses (3,276) - (3,276) (2,657) (6,861)
---------------- --------- -------- -------- --------- ---------
Operating loss (1,599) (1,289) (2,888) (5,108) (12,528)
Profit on
disposal of
players - 1,421 1,421 4,614 11,241
---------------- --------- -------- -------- --------- ---------
Loss before
interest and
taxation (1,599) 132 (1,467) (494) (1,287)
---------- ------ ------ --------- --------
Net interest
payable (987) (944) (2,008)
-------- --------- ---------
Loss on
ordinary
activities
before
taxation (2,454) (1,438) (3,295)
Tax on loss on
ordinary
activities 331 123 953
-------- --------- ---------
Loss on
ordinary
activities
after taxation (2,123) (1,315) (2,342)
-------- --------- ---------
Loss per share 4 (7.56)p (4.68)p (8.34)p
-------- --------- ---------
*Player trading represents the amortisation of registrations and the profit or
loss on disposal of registrations.
All amounts derive from continuing activities.
There are no recognised gains or losses for the current financial period and
preceding financial period.
CONSOLIDATED BALANCE SHEET
as at 31 December 2006
Unaudited Unaudited Audited
31 December 30 November 30 June
2006 2005 2006
#'000 #'000 #'000
--------- --------- ---------
Fixed assets
Intangible assets 7,297 7,109 3,757
Tangible assets 34,937 36,081 35,866
----------------------------- --------- --------- ---------
42,234 43,190 39,623
--------- --------- ---------
Current assets
Stocks 481 690 404
Debtors 5,108 4,615 6,466
Investments - 2,000 2,480
Cash at bank and in hand 2,009 2,247 2,220
----------------------------- --------- --------- ---------
7,598 9,552 11,570
Creditors: amounts falling due within
one year (13,743) (12,261) (11,294)
----------------------------- --------- --------- ---------
Net current (liabilities)/assets (6,145) (2,709) 276
----------------------------- --------- --------- ---------
Total assets less current liabilities 36,089 40,481 39,899
Creditors: amounts falling due after
more than one year (27,126) (27,922) (28,555)
Provisions for liabilities (2,332) (2,778) (2,590)
----------------------------- --------- --------- ---------
Net assets 6,631 9,781 8,754
----------------------------- --------- --------- ---------
Capital and reserves
Share capital 1,405 1,405 1,405
Share premium account 3,340 3,340 3,340
Other reserves 1,050 1,050 1,050
Profit and loss account 836 3,986 2,959
----------------------------- --------- --------- ---------
Shareholders' funds 6,631 9,781 8,754
----------------------------- --------- --------- ---------
GROUP CASH FLOW STATEMENT
for the six months ended 31 December 2006
Unaudited Unaudited Audited
6 months 6 months 13 months
ended ended ended
31 December 30 November 30 June
2006 2005 2006
#'000 #'000 #'000
--------------------------------- --------- --------- --------
Operating loss (2,888) (5,108) (12,528)
Amortisation of players 1,289 2,204 5,308
Amortisation on goodwill 286 51 111
Depreciation 1,097 1,033 2,284
(Increase) in stock and work in
progress (77) (299) (13)
Decrease in loans and debtors 207 1,733 1,198
Increase/(decrease) in creditors 1,639 (1,392) (3,397)
--------------------------------- --------- --------- --------
Net cash inflow/(outflow) from
operating activities 1,553 (1,778) (7,037)
Returns on investments and servicing
of finance (1,950) (1,954) (1,865)
Corporation tax paid - (303) (303)
Payments to acquire tangible fixed
assets (169) (949) (1,986)
Proceeds on disposal of player
registrations 3,595 8,485 15,902
Payments to acquire player
registrations (5,517) (2,264) (4,883)
Equity dividends paid - (140) (140)
--------------------------------- --------- --------- --------
Cash (outflow)/inflow before use of
liquid resources and financing (2,488) 1,097 (312)
--------------------------------- --------- --------- --------
Management of liquid resources
Sale of current asset investments 2,480 480 -
--------------------------------- --------- --------- --------
Financing
New loan - 265 265
Repayment of borrowings (593) (510) (560)
--------------------------------- --------- --------- --------
Net cash outflow from financing (593) (245) (295)
--------------------------------- --------- --------- --------
(Decrease)/increase in cash in the
period (601) 1,332 (607)
--------------------------------- --------- --------- --------
GROUP CASH FLOW STATEMENT continued
for the six months ended 31 December 2006
Reconciliation of net cash flow to movement in net
debt
(Decrease)/increase in cash in the period (601) 1,332 (607)
Cash outflow from change in debt and lease
financing 593 245 295
Cash inflow from increase in liquid resources (2,480) (480) -
--------------------------------- --------- --------- --------
Change in net debt resulting from cash flows
in the period (2,488) 1,097 (312)
Amortisation of finance costs (34) (36) (37)
--------------------------------- --------- --------- --------
Movements in net debt in the period (2,522) 1,061 (349)
Opening net debt (21,464) (21,115) (21,115)
--------------------------------- --------- --------- --------
Closing net debt (23,986) (20,054) (21,464)
--------------------------------- --------- --------- --------
NOTES TO THE INTERIM RESULTS
for the six months ended 31 December 2006
1. Going Concern
The Group currently manages its working capital requirement through a bank
overdraft facility which is repayable on demand. The current facility is due to
be reviewed in May 2007 when the outcome of the season for the Football Club
will have been determined.
The Directors have prepared cash flow forecasts for the forthcoming 12 months,
which in the event of non-promotion to the Premier League include the sale of
various assets and the continued support of the bank. On this basis the
Directors consider it appropriate to prepare the unaudited interim accounts on
the going concern basis.
In the event that the Group's bankers do not renew the facility, alternative
financing would need to be found for the Group to continue as a going concern,
and the Directors continue to explore opportunities for finance from both
external and internal sources. The unaudited interim accounts, which have been
prepared in accordance with note 5, do not include any adjustments that would
result if the Group is unable to continue as a going concern.
2. Turnover
Unaudited Unaudited Audited
6 months 6 months 13 months
ended ended ended
31 30 30 June
December November
2006 2005 2006
#'000 #'000 #'000
---------------------- -------- --------- --------- --------
Matchday 5,815 4,552 11,541
Broadcasting 3,992 3,956 8,098
Commercial 2,937 2,889 5,952
Property 79 36 105
---------------------- -------- --------- --------- --------
12,823 11,433 25,696
---------------------- -------- --------- --------- --------
NOTES TO THE INTERIM RESULTS continued
for the six months ended 31 December 2006
3. Comparative profit and loss account for the six months ended 30 November 2005
Unaudited
6 months
Operations ended
excluding 30 November
player Player 2005
trading trading Total
#'000 #'000 #'000
---------------------- -------- --------- -------- ---------
Turnover 11,433 - 11,433
Cost of sales (11,680) (2,204) (13,884)
---------------------- -------- --------- -------- ---------
Gross loss (247) (2,204) (2,451)
Administrative expenses (2,657) - (2,657)
---------------------- -------- --------- -------- ---------
Operating loss (2,904) (2,204) (5,108)
Profit on disposal of players - 4,614 4,614
---------------------- -------- --------- -------- ---------
(Loss)/profit before interest and
taxation (2,904) 2,410 (494)
---------------------- -------- --------- -------- ---------
4. Loss per share
Unaudited Unaudited Audited
6 months 6 months 13
months
ended ended ended
31 30 30 June
December November
2006 2005 2006
----------------------------- --------- --------- --------
Basic loss per share
Loss attributable (#000's) (2,123) (1,315) (2,342)
----------------------------- --------- --------- --------
Weighted average number of shares
(000's) 28,091 28,091 28,091
----------------------------- --------- --------- --------
Basic loss per share (7.56)p (4.68)p (8.34)p
----------------------------- --------- --------- --------
NOTES TO THE INTERIM RESULTS continued
for the six months ended 31 December 2006
5. Basis of preparation
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 31 December 2006, and have been prepared on a consistent basis with
the period ended 30 June 2006.
The unaudited interim accounts do not constitute statutory financial statements
within the meaning of Section 240 of the Companies Act 1985. The results for the
period to 30 June 2006 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 and did not contain a
statement under Section 237(2) of the Companies Act 1985.
6. Approval
The interim financial statements were approved by the Board on 30 March 2007.
7. Registered office
This Interim Report is available to the public at the Company's registered
office, St Mary's Stadium, Britannia Road, Southampton SO14 5FP.
Enquiries:
Seymour Pierce Limited 020 7107 8000
William Tebbit
Liam O'Donoghue
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFEEVIIIVID
Southampton LS. (LSE:SOO)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
Southampton LS. (LSE:SOO)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024
