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GILLINGHAM FOOTBALL CLUB LIMITED |
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MAY 2021 |
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REGISTERED NUMBER:
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GILLINGHAM FOOTBALL CLUB LIMITED |
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MAY 2021 |
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GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
For The Year Ended 31 May 2021 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 5 |
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Report of the Independent Auditors | 7 |
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Statement of Comprehensive Income | 10 |
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Statement of Financial Position | 11 |
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Statement of Changes in Equity | 12 |
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Statement of Cash Flows | 13 |
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Notes to the Statement of Cash Flows | 14 |
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Notes to the Financial Statements | 15 |
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GILLINGHAM FOOTBALL CLUB LIMITED |
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COMPANY INFORMATION |
For The Year Ended 31 May 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
& Statutory Auditors |
Hilden Park House |
79 Tonbridge Road |
Hildenborough |
Tonbridge |
Kent |
TN11 9BH |
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BANKERS: |
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Hatton Garden |
99 Hatton Garden |
London |
EC1N 8DN |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
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STRATEGIC REPORT |
For The Year Ended 31 May 2021 |
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The directors present their strategic report for the year ended 31 May 2021. |
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The principal activity of Gillingham Football Club Limited continues to be the operation of a professional football club together with related commercial activities. |
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The Company also operates a Banqueting business under the trading name Priestfield Banqueting and Conferencing, one of the largest facilities in Kent, a theme bar/restaurant under the current trading name 'The Factory' and an SEN school for 11-16 year old students under the trading name 'The GFC School". |
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The primary aim of the football club and associated businesses is to provide adequate funding to enable success on the field of play. |
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GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
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STRATEGIC REPORT |
For The Year Ended 31 May 2021 |
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REVIEW OF BUSINESS |
Covid |
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The Covid -19 virus which forced the business to effectively close down from 13th March 2020 created an International crisis, the likes of which had never been witnessed before, with huge public health issues resulting in a significant loss of life. Our thoughts go out to all those affected but in particular to our supporters, sponsors, staff and friends. |
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The football club started playing again in September 2020, however all matches were played behind closed doors with no crowd throughout the entire season. All events and banquets were cancelled and income streams effectively ceased. The Directors took the view that staff reductions and cost cutting on all areas was essential, which linked to Government assistance, managed to allow the business to continue whilst further realignment was put in place. |
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This shutdown on trading allowed the Company to put in place a programme of refurbishment, restructuring and implementation of new operating infrastructure, the likes of which would have been virtually impossible to achieve during normal trading circumstances. The benefit of these changes will be reflected in future trading results, when the business eventually returns to normal trading. It has also provided the opportunity to review and reset the entire business. |
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The Directors took the decision in early April 2020 to cancel all Christmas 2020 events, source of considerable revenue income, given the seriousness of the pandemic and their view that the effects of the crisis were most likely to continue into the following financial year.That decision proved correct given subsequent events, which also led to the cancellation of all further activities including Christmas 2021. |
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Football Review |
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The first team competed in the Sky Bet League One for the season in question and finished the season in 10th place in the League Table, however there was a significant loss in match day income, plus many supporter related issues to deal with, the likes of which were very challenging for the business. |
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The Directors would like to place on record their sincere thanks to all supporters who assisted the business, by pledging support, donations, time and consideration, and in particular to all season ticket holders and individuals who donated their season ticket monies, and/or match day ticket monies to the Club, which in turn had a hugely positive impact on the Club in its challenges going forward. Without this tremendous support the Club may not have survived the negative effects of Covid. |
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Youth Academy |
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The Youth Academy is the backbone of our football business and our thanks go out to Bryan Bull, Head of academy, and all his coaching and other staff. |
We continue to operate our satellite centre at Canterbury, and as in previous years we continue to have a strong nucleus of talent coming through the different age groups. |
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Covid obviously had an impact on all age groups during the latter part of this year and it is testimony to the coaches, parents and staff, plus of course the young players, that the strict and often difficult rules put in place to allow training to continue were adhered to at all times. |
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It always remains a source of deep satisfaction to see products of our Academy playing in the First team, and this year was no exception. |
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Results and performance |
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The results of the company for the year, as set out on pages 5 to 23, show a profit on ordinary activities before tax of £339,137 (2020: loss of £175,007). The shareholders' funds of the Company total £1,228,839 (2020: £889,702). |
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Turnover showed a decrease to £4.34m (2020: £6.71m) with reduced ticketing income and lower player sales and the gross profit margin has dropped to 4.15% from 17.3% in 2020 due to the loss of almost all commercial and catering sales in the period. |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
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STRATEGIC REPORT |
For The Year Ended 31 May 2021 |
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Repairs and Maintenance to Stadium |
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The Company employs a team of skilled individuals who review all areas of the Stadium and apply continual repairs and refurbishment in a timely and professional manner.An extensive refurbishment programme was put in place during this period. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
There are a number of potential risks and uncertainties which could have a material impact on the Clubs long term performance. These risks and uncertainties are monitored by the Board on a regular basis. |
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The Club lost a significant amount of income from ticket and commercial sales, plus the closing of, and effect from non-football income streams from Priestfield and The Factory were clearly a cause of concern, and continue to remain so. The company has developed a strategy to re-open these facilities providing new income streams after the refurbishments are completed. |
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Expenditure under such circumstances requires tight management, and all costs are challenged and monitored. |
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With the impact of Covid 19, Government restrictions had a huge impact on the business, partly mitigated by Government support on schemes such as furlough and other grant benefits. |
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Relegation from League One would be a considered risk, however it is not deemed to be a material risk as income streams/costs between both divisions are reasonable similar, and player contracts are reduced should the Club be relegated. |
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FUTURE DEVELOPMENTS |
The Board continues to seek alternative external investment to assist the business in benefiting from the many opportunities and income streams at its disposal. Clearly Covid has suspended efforts to this effect, however the process will continue once there is a return to normal trading post Covid. |
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The Board would like to thank all staff, players, management, sponsors. supporters and stake holders for their support and understanding during these difficult times, such times the likes of which we have never experienced in our life -times, however the Board remain confident that with good cost control, support from external and internal stake holders and sponsors, and of course the support of our own supporters and sponsors, the Club can survive these challenges and will emerge stronger in the future. |
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ON BEHALF OF THE BOARD: |
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GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
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REPORT OF THE DIRECTORS |
For The Year Ended 31 May 2021 |
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The directors present their report with the financial statements of the company for the year ended 31 May 2021. |
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DIVIDENDS |
The Company is unable to propose a dividend for the year due to a lack of distributable reserves. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2020 to the date of this report. |
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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. |
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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. |
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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. |
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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 with respect of future developments and post balance sheet events. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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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: |
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- | 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. |
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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. |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
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REPORT OF THE DIRECTORS |
For The Year Ended 31 May 2021 |
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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. |
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AUDITORS |
The auditors, Hilden Park Accountants Limited, will be proposed for re-appointment in accordance with Section 485 of the Companies Act 2006. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GILLINGHAM FOOTBALL CLUB LIMITED |
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Qualified opinion |
We have audited the financial statements of Gillingham Football Club Limited (the 'company') for the year ended 31 May 2021 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements give a true and fair view of the state of the company's affairs as at 31 May 2021 and of its loss for the year then ended; have been properly prepared in accordance with UK GAAP; and have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for qualified opinion |
The Company owns Priestfield Stadium and this is carried at a value of £4,000,000 within fixed assets in the Statement of Financial Position as at 31st May 2021. We were unable to obtain sufficient appropriate audit evidence from third parties in order to confirm that this value is still appropriate. Consequently, we were unable to determine whether any adjustment to this amount was necessary. |
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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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 qualified opinion |
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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. |
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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 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. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
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As described in the 'Basis for qualified opinion' section, our audit report is qualified in resect of the carrying value of freehold property. Information on the loss before tax and shareholders' funds included in the strategic report may also be materially misstated for the same reason. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GILLINGHAM FOOTBALL CLUB LIMITED |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | 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; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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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. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so. |
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Auditors' 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 a Report of the Auditors 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. |
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The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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- The laws and regulations applicable for this entity have been identified and considered when carrying out the audit. |
- The competency and capabilities of the audit team identifying or recognising non-compliance with laws and regulations have been considered. |
- Consideration was given as to whether there were areas of the financial statements particularly susceptible to fraud. |
- Minutes of meetings of those charged with governance have been reviewed and no issues to note. |
- The risk of management override of controls has been reviewed and audited, including through testing journal entries and other adjustments for appropriateness. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GILLINGHAM FOOTBALL CLUB LIMITED |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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. |
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for and on behalf of
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Chartered Accountants |
& Statutory Auditors |
Hilden Park House |
79 Tonbridge Road |
Hildenborough |
Tonbridge |
Kent |
TN11 9BH |
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GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
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STATEMENT OF COMPREHENSIVE INCOME |
For The Year Ended 31 May 2021 |
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31/5/21 | 31/5/20 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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(872,814 | ) | (484,419 | ) |
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Other operating income |
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OPERATING PROFIT/(LOSS) | 5 |
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( |
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Interest payable and similar expenses | 6 |
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PROFIT/(LOSS) BEFORE TAXATION |
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Tax on profit/(loss) | 7 |
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PROFIT/(LOSS) FOR THE FINANCIAL
YEAR |
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( |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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( |
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GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
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STATEMENT OF FINANCIAL POSITION |
31 May 2021 |
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31/5/21 | 31/5/20 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
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CURRENT ASSETS |
Stocks | 9 |
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Debtors | 10 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 11 |
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NET CURRENT (LIABILITIES)/ASSETS | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
12 |
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( |
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PROVISIONS FOR LIABILITIES | 16 | ( |
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ACCRUALS AND DEFERRED INCOME | 17 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 18 |
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Share premium | 19 |
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Retained earnings | 19 | ( |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
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STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 31 May 2021 |
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Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
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Balance at 1 June 2019 |
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( |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 31 May 2020 |
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( |
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Changes in equity |
Total comprehensive income | - |
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- |
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Balance at 31 May 2021 |
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GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
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STATEMENT OF CASH FLOWS |
For The Year Ended 31 May 2021 |
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31/5/21 | 31/5/20 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
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Interest paid | ( |
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Interest element of hire purchase payments
paid |
( |
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( |
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Net cash from operating activities | ( |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
New loans in year |
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Capital repayments in year | ( |
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Amount withdrawn by directors | (422 | ) | (377,501 | ) |
Government grants |
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Net cash from financing activities |
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( |
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Increase in cash and cash equivalents |
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Cash and cash equivalents at beginning of
year |
2 |
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248,043 |
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Cash and cash equivalents at end of year | 2 | 774,705 | 764,131 |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
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NOTES TO THE STATEMENT OF CASH FLOWS |
For The Year Ended 31 May 2021 |
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1. |
RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
31/5/21 | 31/5/20 |
£ | £ |
Profit/(loss) before taxation |
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( |
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Depreciation charges |
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Government grants | ( |
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Finance costs | 69,638 | 75,505 |
(756,016 | ) | 60,435 |
Increase in stocks | ( |
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Decrease/(increase) in trade and other debtors |
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( |
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(Decrease)/increase in trade and other creditors | ( |
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Cash generated from operations | ( |
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2. | CASH AND CASH EQUIVALENTS |
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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: |
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Year ended 31 May 2021 |
31.5.21 | 1.6.20 |
£ | £ |
Cash and cash equivalents | 774,705 | 764,131 |
Year ended 31 May 2020 |
31.5.20 | 1.6.19 |
£ | £ |
Cash and cash equivalents | 764,131 | 248,043 |
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3. | ANALYSIS OF CHANGES IN NET DEBT |
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At 1.6.20 | Cash flow | At 31.5.21 |
£ | £ | £ |
Net cash |
Cash at bank | 764,131 | 10,574 | 774,705 |
764,131 |
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774,705 |
Debt |
Finance leases | (101,159 | ) | 643 | (100,516 | ) |
Debts falling due within 1 year | - | (302,179 | ) | (302,179 | ) |
Debts falling due after 1 year | (1,982,800 | ) | (397,821 | ) | (2,380,621 | ) |
(2,083,959 | ) | (699,357 | ) | (2,783,316 | ) |
Total | (1,319,828 | ) | (688,783 | ) | (2,008,611 | ) |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
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NOTES TO THE FINANCIAL STATEMENTS |
For The Year Ended 31 May 2021 |
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1. | STATUTORY INFORMATION |
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Gillingham Football Club Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going concern |
Due to circumstances arising from the current COVID-19 pandemic and the ongoing effect this is having on professional football, there is a possibility that this may still cast doubt on the company's ability to continue as a going concern. |
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The directors have considered the working capital requirements of the Company for the short and medium term and have reviewed in detail the cash flow forecasts prepared for the 12 months following the date of this report. With the additional income streams that the Club has in place not related to matchday income, the Directors have a reasonable expectation that the company will have adequate resources to continue in operational existence for at least 12 months from the date of approving these accounts. For this reason, the directors continue to adopt the going concern basis in preparing the financial statements. |
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Turnover |
Turnover includes gate receipts, Football League pool, school income, commercial activities, advertising, television and radio fees, donations, sundry related income and the annual release of grants. |
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Gate receipts are stated after percentage payments to the Football League, Football Association and visiting football clubs. Revenue from this source is recognised over the course of the football season as games are played. Sponsorship and similar commercial income is recognised over the duration of the respective contracts. Income arising from the fixed element of broadcasting revenue is recognised over the duration of the playing season. Facility fees (non-fixed element of broadcasting revenue) which relate to live coverage or highlights of games are recognised as games are played. Turnover relating to retail and mail order consists of the amounts receivable for goods supplied to customers, excluding value added tax. Mail order sales are recognised on delivery to the customer. School income is charged at a contracted rate to the local authority based on the number of students attending and is recognised over the course of each school term. |
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Advanced invoicing and season ticket sales are included within deferred income and released to turnover in the relevant accounting period. |
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All turnover arises in the United Kingdom. |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
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Fixtures & fittings | - |
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Motor vehicles | - |
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Office equipment | - |
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Included within Freehold property is the cost of the main pitch which is being depreciated at 20% straight line on cost. |
|
Priestfield Stadium is held by the company at it's valuation of £4,000,000. 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. |
|
Government grants |
Government grants are recognised based on the accrual model. The grants are recognised in profit or loss on a systematic basis over the periods in which the entity recognises expenses for the related costs for which the grants are intended to compensate. |
|
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items, on a first in first out basis. |
|
Financial instruments |
Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, 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. |
|
Such assets are subsequently carried at amortised cost, using the effective interest rate method. |
|
Basic financial liabilities including trade and other payables 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. |
|
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
|
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
|
Current or deferred taxation assets and liabilities are not discounted. |
|
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
|
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2021 |
|
|
2. | ACCOUNTING POLICIES - continued |
Deferred taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
|
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
|
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
|
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. |
|
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. |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2021 |
|
|
3. | TURNOVER |
|
The turnover and profit (2020 - loss) before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by class of business is given below: |
|
31/5/21 | 31/5/20 |
£ | £ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
4. | EMPLOYEES AND DIRECTORS |
|
2021 | 2020 |
£ | £ |
Wages and salaries | 3,360,587 | 3,845,801 |
Social security costs | 308,010 | 319,564 |
Pension costs | 31,892 | 43,924 |
3,700,489 | 4,209,289 |
The average monthly number of employees during the year was as follows: |
|
2021 | 2020 |
|
Administration and directors | 5 | 4 |
Coaches, ground staff and management | 17 | 17 |
Players | 42 | 63 |
Other commercial activities | 38 | 32 |
103 | 96 |
|
31/5/21 | 31/5/20 |
£ | £ |
Directors' remuneration |
|
|
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2021 |
|
|
5. | OPERATING PROFIT/(LOSS) |
|
The operating profit (2020 - operating loss) is stated after charging: |
|
31/5/21 | 31/5/20 |
£ | £ |
Depreciation - owned assets |
|
|
Auditors' remuneration |
|
|
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31/5/21 | 31/5/20 |
£ | £ |
Loan interest |
|
|
Hire purchase interest |
|
|
|
|
|
7. | TAXATION |
|
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 31 May 2021 nor for the year ended 31 May 2020. |
|
8. | TANGIBLE FIXED ASSETS |
Freehold | Fixtures | Motor | Office |
property | & fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 June 2020 |
|
|
|
|
|
Additions |
|
|
|
|
|
At 31 May 2021 |
|
|
|
|
|
DEPRECIATION |
At 1 June 2020 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
At 31 May 2021 |
|
|
|
|
|
NET BOOK VALUE |
At 31 May 2021 |
|
|
|
|
|
At 31 May 2020 |
|
|
|
|
|
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2021 |
|
|
8. | TANGIBLE FIXED ASSETS - continued |
|
Cost or valuation at 31 May 2021 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 | 1,551,599 | 773,368 | 123,016 | 145,560 | 2,593,543 |
4,501,599 | 773,368 | 123,016 | 145,560 | 5,543,543 |
|
If the stadium had not been revalued it would have been included at the following historical cost: |
|
31/5/21 | 31/5/20 |
£ | £ |
Cost | 1,050,000 | 1,050,000 |
Aggregate depreciation | 86,000 | 86,000 |
|
Value of land in freehold land and buildings | 190,000 | 190,000 |
|
The stadium was valued on a fair value basis on 31 May 2019 by C Honeywill FRICS - Lambert Smith Hampton . |
|
Assets held under HP agreements originally cost £202,868 (2020: £164,122) and have a net book value of £98,534 (2020: £96,863). Depreciation charged for the year was £37,075 (2020: £37,947). |
|
9. | STOCKS |
31/5/21 | 31/5/20 |
£ | £ |
Goods for resale |
|
|
|
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/5/21 | 31/5/20 |
£ | £ |
Trade debtors |
|
|
Other debtors | 28,506 | 8,506 |
Directors' loan accounts | 6,055 | 5,633 |
VAT |
|
|
Prepayments and accrued income |
|
|
|
|
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2021 |
|
|
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/5/21 | 31/5/20 |
£ | £ |
Other loans (see note 13) |
|
|
Hire purchase contracts (see note 14) |
|
|
Trade creditors |
|
|
Other taxes and social security | 772,645 | 476,552 |
Other creditors | 394,487 | 409,951 |
Directors' loan accounts | 16,366 | 16,366 |
Accruals and deferred income |
|
|
|
|
|
12. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
31/5/21 | 31/5/20 |
£ | £ |
Other loans (see note 13) |
|
|
Hire purchase contracts (see note 14) |
|
|
Other creditors |
|
|
|
|
|
13. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
31/5/21 | 31/5/20 |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans |
|
|
|
Amounts falling due between two and five years: |
Other loans |
|
|
|
Loans consist of £1,800,000 owed to Three Directors Limited, as detailed in Note 21, which is repayable within five years. |
|
Also included is £882,800 advanced from the EFL which is repayable in instalments from August 2021 to April 2024. |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2021 |
|
|
14. | LEASING AGREEMENTS |
|
Minimum lease payments under hire purchase fall due as follows: |
|
31/5/21 | 31/5/20 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
15. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
31/5/21 | 31/5/20 |
£ | £ |
Hire purchase contracts | 100,516 | 101,159 |
Other loans | 1,800,000 | 1,800,000 |
|
|
|
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). Hire purchase contracts are secured on the assets to which they relate. |
|
16. | PROVISIONS FOR LIABILITIES |
31/5/21 | 31/5/20 |
£ | £ |
Deferred tax | 200,000 | 200,000 |
|
Deferred |
tax |
£ |
Balance at 1 June 2020 |
|
Balance at 31 May 2021 |
|
|
Deferred tax is a provision relating to fair value gains made on investment property. |
|
17. | ACCRUALS AND DEFERRED INCOME |
31/5/21 | 31/5/20 |
£ | £ |
Deferred income | 399,152 | 1,468,430 |
GILLINGHAM FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 00039175) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 May 2021 |
|
|
18. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/5/21 | 31/5/20 |
value: | £ | £ |
|
Ordinary | 1p | 470,051 | 470,051 |
|
19. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
|
At 1 June 2020 | ( |
) |
|
419,651 |
Profit for the year |
|
|
At 31 May 2021 | ( |
) |
|
758,788 |
|
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 £31,892 (2020: £43,924) |
|
21. | RELATED PARTY DISCLOSURES |
|
M Quarrington, a director, was owed £ 16,366 by the company as at 31 May 2021 (2020: £16,366). |
|
P Scally, a director, owed the company £6,055 as at 31 May 2021 (2020: £5,633). |
|
P Scally, a director, performed consultancy services for the company in the year receiving £112,361 (2020: £168,000 plus other costs of £46,345). |
|
The directors of the company are also directors of Three Directors Limited
which was owed £
1,800,000
at 31
May 2021 (2020: £1,800,000) by the company, this amount is shown in note 12. Interest of £63,000 was charged during the year in relation to this loan (2020: £63,000). |