Company registration number 01630402 (England and Wales)
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
COMPANY INFORMATION
Directors
Mr. I Vrentzos
Mr. N Randall K.C. (Chairman)
Mr. J Owen
Mr. K Dourekas
(Appointed 23 March 2022)
Company number
01630402
Registered office
The City Ground
Pavilion Road
West Bridgford
Nottingham
United Kingdom
NG2 5FJ
Auditor
Azets Audit Services
2 Regan Way
Chetwynd Business Park
Chilwell
Nottingham
United Kingdom
NG9 6RZ
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
15 - 31
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2022
- 1 -
The directors present the strategic report and financial statements for the year ended 30 June 2022.
Fair review of the business
Nottingham Forest Football Club Limited remains 100% owned by NF Football Investments Limited, which is in turn owned by Mr E Marinakis (80%) and Mr S Kominakis (20%).
Financial Performance
The reporting year 2021/2022 saw fan attendance make a welcome return to professional football with restrictions being relaxed in respect of the Covid-19 pandemic. This coincided with a remarkable season on the pitch made possible by the continuing financial support of the ownership of Mr E Marinakis and Mr S Kominakis. This led to the first team being promoted to the Premier League for the first time in 23 years via the play off competition. The on field success, together with the return of matchday revenues more akin to a “normal” season, allowed the Club to begin to recover with turnover increasing to £29.7m (202
1
: £18.4m).
Administrative expenses have increased to £73.7m (202
1
: £46.8m). The main driver behind this increase was the triggering of bonuses linked to the promotion to the Premier League. There were also additional costs related to participation in the play off competition. In addition, versus 2020-21, match day costs increased due to games no longer being played behind closed doors.
The operating loss for the year was £49.5m (2021: £34.4m loss) reducing to a loss before tax of £45.6m (2021:
£15.5m loss) after interest, profit on disposal of players and a historical loan write off.
During the financial year the ownership converted £41m from loans to equity.
The owners remain committed to the long-term future of the Club and its funding. The Board sees remaining
within the discipline of the Premier League’s Profitability and Sustainability Rules to be a high priority whilst ensuring the Club can be as competitive as possible.
Principal risks and uncertainties
The key potential risks for the club’s board to manage are as follows:
-
First team performance and the direct impact on league status, position, and revenue generation.
-
Recruitment and retention of players and key staff.
-
Supporter attendance levels at first team matches.
-
Negotiation of key commercial contracts.
-
Compliance with the rules and regulations of the applicable football governing bodies.
-
Health & Safety considerations, including terrorism threats arising from operating a sporting venue.
-
Cash management in line with available working capital.
-
Ongoing Management of Covid-19 and associated elements.
First team performance can have a significant impact on other key areas of risk, so investment in the playing squad and academy continues to be a priority within the financial and regulatory constraints within which the Club operates. The board have systems in place to monitor the risks and uncertainties and take corrective action when required.
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 2 -
Key performance indicators
The Club uses a variety of both financial and non-financial measures to monitor and manage the business effectively and identify areas for improvement. The principal key performance indicators (KPIs) used by the board in assessing the overall performance of the Club are as follows: -
Key Performance Indicator (KPI)
|
|
|
|
|
|
|
|
|
|
|
|
Average match attendance (number)
1
|
|
|
|
Season ticket sold (number)
|
|
|
|
1 – All 23 home games were played behind closed doors due to Covid-19 pandemic in 2020/21. 2019/20 average attendance prior to lockdown was 27,723.
Going concern
The Company is dependent on funding from its parent company NF Football Investments Limited and its ultimate beneficial owners, Mr E Marinakis and Mr S Kominakis. In determining the appropriate basis of preparation of this Report and Financial Statements, the Directors are required to consider whether the Company can continue its operational existence for the foreseeable future; that is for at least 12 months from the date of signing of this report.
The Company meets its day to day working capital requirements via funding from the parent company and the ultimate beneficial owners. The parent company and its ultimate beneficial owners have indicated that they have no intention to recall the loan amounts for at least 12 months from the date of signing this report. In assessing the appropriateness of the going concern assumption, the Directors have reviewed detailed cash flow forecasts, considering all reasonably foreseeable potential scenarios and material uncertainties in relation to income and costs. Based on these cash flow forecasts the Club can meet its liabilities as they fall due and the Directors have therefore concluded that it is appropriate for the financial statements to be prepared on the going concern basis.
First Team
The 21/22 season will live long in the memory. After a poor start the decision was taken to change the manager and appoint Steve Cooper. Following this change the squad fulfilled its potential in the most dramatic fashion with an imperious procession up the table. The return of supporters to the City Ground was undoubtedly a vital ingredient in driving the team to success. By the end of the season the team had secured a fourth placed finish after narrowly missing out on automatic promotion. After a dramatic success in the two legged semi-final against Sheffield United the team emerged victorious in the play off final at Wembley after beating Huddersfield Town 1-0. The support shown for the Club both at the final and throughout the 21/22 season was phenomenal, with the bond between the Club and supporters proving pivotal in helping to ensure Premier League football was secured for the first time in 23 seasons. The success realised during the 2021/22 season was the culmination of all the hard work of those at the Club together with the investment made by the ownership since 2017.
U21’s and Academy
The Club has continued to invest in the Academy structure following the achievement of Category 1 status last season. Further enhancements to the coaching, education and welfare structure are active and ongoing into the 2021/22 season. The club have been granted planning permission for further development of the facilities at the Academy to secure our future success in this area.
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 3 -
Impact of Covid-19
Government restrictions previously imposed on football stadia to tackle social distancing had a significant impact on the Club’s ability to generate income in the prior year, both from a matchday and non-matchday perspective. The Club do not foresee government measures caused by the pandemic having a material financial impact in the future.
Sponsorship & Commercial
Sponsorship & Commercial income was up significantly in the year, primarily due to the relaxation of government restrictions in relation to Covid-19. Income was also boosted by the Club’s success on the pitch during the 2021-22 season, together with the incredible backing that the supporters gave the first team, during the league and cup campaigns.
Stadium Redevelopment
Despite progress being severely hampered during Covid, the Club continued to invest significant amounts of time and money in the redevelopment project at the City Ground. In July 2022 a significant milestone was reached, with Ruschcliffe Borough Council upholding the recommendation of its Planning Officers to recommend approval of the Club’s planning application. This represents the culmination of three years of dedicated work by the Club and its advisers. The Club will now move onto the next phase of the process, having detailed discussions with its advisers and partners, in order to satisfy the conditions set out in the recommendation to grant the planning permission and with a view to finally deliver the development.
Nottingham Forest Women’s Football Club
The Club continues to actively support and encourage the development of the Women’s programme at the Club.
The Club has continued to attract new commercial partners to the programme during this period and remains committed to building a positive elite player environment. With the team performing well, Championship football is the target in the short term with the Club providing investment to support the Women’s team on the journey of progress.
Community Activity
Nottingham Forest Community Trust continues to deliver a positive impact throughout the city and county, and has seen its operations return to normal following the pandemic. The Trust has further developed relationships and programmes with club partners, including the ‘Think Big’ – an innovative tech-focused programme available to all secondary school children Nottinghamshire. In total, over 32,000 participants engaged with the Trust’s programmes through football participation, holiday activities and mental wellbeing sessions. 194 armed forces veterans were also engaged through the ‘Forest Forces’ programme. The Club and Trust alignment continues to strengthen through a long term funding commitment and a shared vision to make a positive difference in local communities.
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 4 -
Supporter Relations
The Club is committed to an ongoing dialogue and consultative process with its supporters. With more than 20,000 season card holders in the 2021-22 season together with the fantastic support provided during our exciting cup runs and journey to the Play-off final, the Club understands the importance and value of its fans.
Across the season, the club hosted regular meetings with the elected representatives of the supporters trust and other bodies in accordance with the formal agreement between the Club and the Trust. This is in accordance with best practice within the EFL supporter engagement framework. In addition to this the Club has also had frequent dialogue with other supporters’ clubs and fan groups.
Section 172 Statement
Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders and other matters in their decision making. The Directors continue to have the highest regard to the interest of the club’s employees, supporters, commercial partners, and other stakeholders.
On behalf of the board
Mr. N Randall K.C. (Chairman)
Director
28 February 2023
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2022
- 5 -
The directors present their annual report and financial statements for the year ended 30 June 2022.
Principal activities
The principal activity of the company continued to be that of a professional football club.
Results and dividends
The results for the year are set out on page 10.
The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr. I Vrentzos
Mr. N Randall K.C. (Chairman)
Mr. J Owen
Mr. D Murphy (CEO)
(Appointed 11 August 2021 and resigned 8 January 2023)
Mr. K Dourekas
(Appointed 23 March 2022)
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
Mr. N Randall K.C. (Chairman)
Director
28 February 2023
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2022
- 6 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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.
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.
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
- 7 -
Opinion
We have audited the financial statements of Nottingham Forest Football Club Limited (the 'company') for the year ended 30 June 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 30 June 2022 and of its loss for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
- 8 -
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 identifie
d
material misstatements in the strategic report or the directors'
r
eport
. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, 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
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
- 9 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
-
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
-
Reviewing minutes of meetings of those charged with governance;
-
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
-
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
-
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Mr Stephen Anthony Harcourt FCCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
1 March 2023
Chartered Accountants
Statutory Auditor
2 Regan Way
Chetwynd Business Park
Chilwell
Nottingham
United Kingdom
NG9 6RZ
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2022
- 10 -
Year
13 Months
ended
ended
30 June
30 June
2022
2021
Notes
£000
£000
Turnover
3
29,683
18,408
Cost of sales
(5,512)
(7,398)
Gross profit
24,171
11,010
Administrative expenses
(73,684)
(46,765)
Other operating (expenses)/income
(20)
1,325
Operating loss
7
(49,533)
(34,430)
Interest payable and similar expenses
8
(768)
(418)
Profit on disposal of player registrations
9
4,084
14,322
Loans written off
9
-
5,000
Loss before taxation
(46,217)
(15,526)
Tax on loss
10
607
Loss for the financial year
(45,610)
(15,526)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
- 11 -
Year
13 Months
ended
ended
2022
2021
£000
£000
Loss for the year
(45,610)
(15,526)
Other comprehensive income
-
-
Total comprehensive income for the year
(45,610)
(15,526)
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
BALANCE SHEET
AS AT
30 JUNE 2022
30 June 2022
- 12 -
2022
2021
Notes
£000
£000
£000
£000
Fixed assets
Intangible assets
11
11,660
16,969
Tangible assets
12
7,216
5,924
18,876
22,893
Current assets
Stocks
14
274
481
Debtors
15
8,341
12,298
Cash at bank and in hand
6
398
8,621
13,177
Creditors: amounts falling due within one year
16
(79,550)
(73,835)
Net current liabilities
(70,929)
(60,658)
Total assets less current liabilities
(52,053)
(37,765)
Creditors: amounts falling due after more than one year
18
(1,100)
(10,778)
Net liabilities
(53,153)
(48,543)
Capital and reserves
Called up share capital
20
111,144
70,144
Share premium account
70,345
70,345
Capital redemption reserve
13,965
13,965
Profit and loss reserves
(248,607)
(202,997)
Total equity
(53,153)
(48,543)
The financial statements were approved by the board of directors and authorised for issue on 28 February 2023 and are signed on its behalf by:
Mr. N Randall K.C. (Chairman)
Director
Company Registration No. 01630402
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
£000
Balance at 1 June 2020
58,144
70,345
13,965
(187,471)
(45,017)
Period ended 30 June 2021:
Loss and total comprehensive income for the period
-
-
-
(15,526)
(15,526)
Issue of share capital
20
12,000
-
-
12,000
Balance at 30 June 2021
70,144
70,345
13,965
(202,997)
(48,543)
Year ended 30 June 2022:
Loss and total comprehensive income for the year
-
-
-
(45,610)
(45,610)
Issue of share capital
20
41,000
-
-
41,000
Balance at 30 June 2022
111,144
70,345
13,965
(248,607)
(53,153)
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
- 14 -
2022
2021
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash absorbed by operations
26
(37,649)
(13,522)
Interest paid
(388)
(418)
Net cash outflow from operating activities
(38,037)
(13,940)
Investing activities
Purchase of players registrations
(5,737)
(10,232)
Proceeds on disposal of players registrations
19,314
7,886
Purchase of tangible fixed assets
(1,727)
(363)
Proceeds on disposal of tangible fixed assets
11
16
Net cash generated from/(used in) investing activities
11,861
(2,693)
Financing activities
Proceeds from issue of shares
41,000
12,000
Proceeds from NF Football Investments Limited
(16,499)
1,706
Proceeds/repayment of loans
(6,656)
2,944
Net cash generated from financing activities
17,845
16,650
Net (decrease)/increase in cash and cash equivalents
(8,331)
17
Cash and cash equivalents at beginning of year
398
381
Cash and cash equivalents at end of year
(7,933)
398
Relating to:
Cash at bank and in hand
6
398
Bank overdrafts included in creditors payable within one year
(7,939)
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
- 15 -
1
Accounting policies
Company information
Nottingham Forest Football Club Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
The City Ground, Pavilion Road, West Bridgford, Nottingham, United Kingdom, NG2 5FJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £000.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues
The
disclosure
requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
-
Section 26 ‘Share based Payment’
Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
-
Section 33 ‘Related Party Disclosures’
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
NF Football Investments Limited.
These consolidated financial statements are available from
Companies House.
1.2
Going concern
The Company is dependent on funding from its parent company NF Football Investments Limited and its ultimate beneficial owners. In determining the appropriate basis of preparation of this Report and Financial Statements, the Directors are required to consider whether the Company can continue its operational existence for the foreseeable future; that is for at least 12 months from the date of signing of this report.
The Company meets its day to day working capital requirements via funding from the parent company and the ultimate beneficial owners. The parent company and its ultimate beneficial owners have indicated that they have no intention to recall the loan amounts for at least 12 months from the date of signing this report.
In assessing the appropriateness of the going concern assumption, the Directors have reviewed detailed cash flow forecasts, considering all reasonably foreseeable potential scenarios and material uncertainties in relation to income and costs. Based on these cash flow forecasts the Club can meet its liabilities as they fall due and the Directors have therefore concluded that the virus does not create a material uncertainty, and it is appropriate for the financial statements to be prepared on the going concern basis.
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 16 -
1.3
Turnover
Turnover represents all income arising from the activities of the company excluding player transfer fees and Value Added Tax.
Other operating income relates to income received in respect of Government Coronavirus support. Grants received under the Job Retention Scheme are recognised in the period in which the associated payroll cost is incurred.
1.4
Intangible fixed assets other than goodwill
The cost of acquiring players' registrations is included in the balance sheet as intangible assets at
cost less amortisation, which is charged
as follows:
Players' registrations
Over the life of the players' contract
Provision is made where, in the opinion of the directors, an impairment of the carrying value of the players' registrations has occurred.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
2-5%
Land and buildings Leasehold
5%
Plant and machinery
10-25%
Fixtures, fittings & equipment
15-20%
Assets under construction
Not depreciated
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Impairment of fixed assets
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
1.7
Stocks
Stocks are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
At each balance sheet date, stocks are assessed for impairment. Any impairment loss is recognised immediately in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 17 -
1.9
Financial instruments
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to related parties.
Basic financial instruments (other than those wholly repayable or receivable within one year) are measured at amortised cost, using the effective interest method. The effective interest rate is the rate which exactly discounts the estimated future payments or receipts over the life of the instrument to its carrying amount at initial recognition, re-estimated periodically to reflect changes in the market rate of interest. Basic financial instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and loss account.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in
profit
or
loss
in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred taxation is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes which have arisen but not reversed by the balance sheet date, except as otherwise required by FRS 19.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expens
e
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 19 -
1.13
Retirement benefits
The company provides pension benefits based on final pensionable pay through a multi-employer scheme. It is not possible to identify the company's share of the underlying assets and liabilities of the scheme and it is therefore accounted for as if it were a defined contribution scheme. The assets of the scheme are held separately from those of the company, being invested with an insurance company. Contributions to the scheme are based on actuarial advice, and charged to the profit and loss account as they become payable. The company continues to make contributions in respect of its share of the deficit of the defined benefit section of the Football League Limited Pension and Life Assurance Scheme. As one of a number of participating employees the company is advised only of its share of the scheme deficit and recognises a liability in respect of this.
The company also provides pension benefits through defined contribution schemes
1.14
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.15
Government grants
Revenue grants are credited to the profit and loss account when the related expense is incurred. Capital grants are included within deferred income, and are released to the profit and loss account over the estimated useful life of the relevant asset..
Grants received under the Job Retention Scheme are recognised in the period in which the associated payroll cost is incurred.
1.16
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
1.17
The Club holds a collection of football memorabilia which is not recognised in the Balance Sheet as cost information is not readily available and the directors believe that the benefits of obtaining valuations for these items would not justify the cost. The memorabilia has been built up over many years through existing items from the Club, donations and occasional acquisitions. The Club draws upon the collection for display in the stadium. The directors are of the opinion, that should a valuation for the collection be obtained, that the valuation would not be material in the context of these accounts and is incidental to the main activity of the Club. Consequently further disclosures under FRS102 - Heritage Assets are not deemed necessary.
1.18
Loan players wages and expenses, historically included within cost of sales will be included within administrative expenses in the current and future years.
1.19
Signing-on fees payable to players are charged, as part of operating expenses, to the profit and loss account over the period of the player's contract on a straight-line basis. Where a player's registration is transferred, any signing on fees payable in respect of future periods are charged against profit and loss of players disposal.
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Tangible assets, depreciation and residual values
The directors have reviewed the estimates for useful lives and associated residual values of all tangible asset classes and have concluded that useful lives and residual values are appropriate.
The useful lives of the assets and residual values are assessed regularly and may vary depending on a number of factors. Residual value and useful life assessments consider issues such as future market conditions, the remaining life of the asset and potential disposal values.
Intangible assets, amortisation and residual values
The directors have reviewed the estimates for useful lives and associated residual values of all intangible asset classes and have concluded that useful lives and residual values are appropriate.
The useful lives of the assets and residual values are assessed regularly and may vary depending on a number of factors. In re-assessing useful lives, factors such as player health and fitness are taken account. Residual value assessments consider issues such as future market conditions, current league status, the remaining life of the asset and the net present value of such cashflows.
Impairment of non-current assets
The company assesses the impairment of tangible and intangible assets subject to amortisation or depreciation whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important that could trigger an impairment review include the following:
-
Significant underperformance relative to historical or projected future operating results, including relegation from the
current league;
-
Significant damage or, in the context pf players, significant injury;
-
Significant changes in the manner of the use of the acquired assets or the strategy for the overall business;
-
Significant negative industry or economic trends.
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 21 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2022
2021
£000
£000
Turnover analysed by class of business
Sponsorship and advertising
2,689
2,957
Catering
141
7
Grants & royalties
10,143
9,592
TV & radio
2,016
1,358
Ticket & membership sales
8,227
1,257
Commercial
1,925
20
Programme & other match day income
484
25
Other non match day income
36
4
Players
473
558
Retail
3,549
2,580
Other
-
51
29,683
18,408
2022
2021
£000
£000
Other significant revenue
Grants received
1,046
4
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the company
23
15
For other services
Taxation compliance services
4
3
Other taxation services
20
All other non-audit services
7
2
31
5
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 22 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Playing staff
69
75
Non-playing staff
142
126
Total
211
201
Their aggregate remuneration comprised:
2022
2021
£000
£000
Wages and salaries
51,817
31,940
Social security costs
6,593
5,128
Pension costs
155
128
58,565
37,196
6
Directors' remuneration
2022
2021
£000
£000
Remuneration for qualifying services
1,293
607
Company pension contributions to defined contribution schemes
11
13
1,304
620
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2021 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2022
2021
£000
£000
Remuneration for qualifying services
906
295
Company pension contributions to defined contribution schemes
9
9
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 23 -
7
Operating loss
2022
2021
Operating loss for the year is stated after charging/(crediting):
£000
£000
Exchange losses/(gains)
96
(640)
Government grants
(1,046)
Depreciation of owned tangible fixed assets
424
585
Loss on disposal of tangible fixed assets
6
11
Amortisation of intangible assets
7,310
5,101
Promotion related payments
20,920
Operating lease charges
185
212
8
Interest payable and similar expenses
2022
2021
£000
£000
Other interest on financial liabilities
718
389
Net interest on the net defined benefit liability
50
29
768
418
9
Other gains and losses
2022
2021
£000
£000
Profit/loss on disposal of player registrations
4,084
14,322
Loans written off
-
5,000
4,084
19,322
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 24 -
10
Taxation
2022
2021
£000
£000
Current tax
Adjustments in respect of prior periods
(607)
The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£000
£000
Loss before taxation
(46,217)
(15,526)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(8,781)
(2,950)
Tax effect of expenses that are not deductible in determining taxable profit
1,471
94
Effect of change in corporation tax rate
(15,098)
(13,015)
Research and development tax credit
(607)
Super deduction
(19)
Deferred tax not recognised
22,427
15,871
Taxation credit for the year
(607)
-
Deferred Tax - Unprovided
2022
2021
£000
£000
Capital allowances in excess of depreciation
56
(106)
Other short term timing differences
(98)
(115)
Losses
(62,867)
(54,009)
(62,909)
(54,230)
Deferred tax balances must be recognised at the future tax rate applicable when the balance is expected to unwind.
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 25 -
11
Intangible fixed assets
Players' registrations
£000
Cost
At 1 July 2021
30,778
Additions
11,933
Disposals
(25,263)
At 30 June 2022
17,448
Amortisation and impairment
At 1 July 2021
13,809
Amortisation charged for the year
7,310
Disposals
(15,331)
At 30 June 2022
5,788
Carrying amount
At 30 June 2022
11,660
At 30 June 2021
16,969
12
Tangible fixed assets
Land and buildings Freehold
Land and buildings Leasehold
Assets under construction
Plant and machinery
Fixtures, fittings & equipment
Total
£000
£000
£000
£000
£000
£000
Cost
At 1 July 2021
3,849
14,677
2,284
2,415
4,269
27,494
Additions
856
526
133
53
159
1,727
Disposals
(21)
(6)
(27)
At 30 June 2022
4,705
15,203
2,417
2,447
4,422
29,194
Depreciation and impairment
At 1 July 2021
1,207
14,249
2,148
3,966
21,570
Depreciation charged in the year
78
26
139
181
424
Eliminated in respect of disposals
(16)
(16)
At 30 June 2022
1,285
14,275
2,271
4,147
21,978
Carrying amount
At 30 June 2022
3,420
928
2,417
176
275
7,216
At 30 June 2021
2,642
428
2,284
267
303
5,924
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 26 -
13
Subsidiaries
Details of the company's subsidiaries at 30 June 2022 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Nottingham Forest Women's Football Club Limited
Great Britain
Women's football club
Ordinary
100.00
0
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£000
£000
Nottingham Forest Women's Football Club Limited
7
7
The investments in subsidiaries are stated at fair value.
14
Stocks
2022
2021
£000
£000
Finished goods and goods for resale
274
481
15
Debtors
2022
2021
Amounts falling due within one year:
£000
£000
Trade debtors
1,079
599
Other debtors
172
390
Amounts receivable in respect of player transfers
4,869
5,320
Prepayments and accrued income
2,221
1,360
8,341
7,669
2022
2021
Amounts falling due after more than one year:
£000
£000
Amounts receivable in respect of player transfers
4,629
Total debtors
8,341
12,298
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 27 -
16
Creditors: amounts falling due within one year
2022
2021
Notes
£000
£000
Bank loans and overdrafts
17
7,939
Other borrowings
17
11,131
7,441
Amounts payable in respect of player transfers
10,969
5,523
Trade creditors
8,745
4,197
Amounts due to group undertakings
2,265
18,764
Other taxation and social security
4,909
10,871
Other creditors
10,841
21,276
Accruals and deferred income
22,751
5,763
79,550
73,835
17
Loans and overdrafts
2022
2021
£000
£000
Bank overdrafts
7,939
Loans from related parties
338
420
Other loans
10,793
17,449
19,070
17,869
Payable within one year
19,070
7,441
Payable after one year
10,428
Other borrowings are secured by the issue of promissory notes.
18
Creditors: amounts falling due after more than one year
2022
2021
Notes
£000
£000
Other borrowings
17
10,428
Amounts payable in respect of player transfers
1,100
350
1,100
10,778
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 28 -
19
Retirement benefit schemes
2022
2021
Charge to profit or loss in respect of defined contribution schemes
155
128
Certain staff of the company are members of either the Football League Limited Pension and Life Assurance Scheme (‘FLLPLAS’) comprising both defined benefit (suspended from 31 August 1999) and defined contribution sections, or the Football League and FA Premier League Group Pension Plan, a defined contribution scheme.
The company is one of a number of participating employers in the FLLPLAS and it is not possible to identify its share of the assets and liabilities, and therefore to allocate any actuarial surplus or deficit on a consistent and reasonable basis; consequently contributions are expensed in the profit and loss account as they become payable. The assets of the schemes are held separately from those of the company, being invested with insurance companies.
Following a review of the Minimum Funding Requirement (‘MFR) of the FLLPLAS, accrual of benefits of the final salary section of the scheme was suspended as at 31 August 1999. In light of the exceptional circumstances affecting the scheme, the trustees of the scheme commissioned an independent actuary’s report on the MFR position and a substantial deficit was identified. Under the Pensions Act 1995 participating employers will be required to contribute to the deficiency. The Club was advised that a basis of apportionment of the deficit had been approved by the trustees and their advisors, although in practice there are a number of important issues which remain to be resolved that could impact on the final quantification of this liability. In accordance with FRS102, a liability of £419,675 (2021: £453,326) has been recorded in the financial statements equal to the net present value of the future deficit reduction payments.
20
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary shares of 1p each
11,014,429,500
7,014,429,500
111,144
70,144
4,100,000,000 shares of £0.01 were allotted on the 30 June 2022 in consideration of a waiver of debt of £41,000,000 from the company's parent undertaking, NF Football Investments Limited.
21
Financial commitments, guarantees and contingent liabilities
The contingent liability from player purchases and First Team management changes amounts to approximately £3,784,673 (2021 - £6,041,985).
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 29 -
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£000
£000
Within one year
174
170
Between two and five years
387
445
In over five years
2,620
2,782
3,181
3,397
23
Capital commitments
Amounts contracted for but not provided in the financial statements:
2022
2021
£000
£000
Acquisition of tangible fixed assets
2,844
-
24
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Loans received in the year
Loans repaid in the year
2022
2021
2022
2021
£000
£000
£000
£000
NF Football Investments Limited - Debt/Equity swap
-
-
41,000
12,000
NF Football Investments Limited
24,433
3,000
6
1,294
Other related parties
126
63
208
150
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due to related parties
£000
£000
NF Football Investments Limited
2,192
18,764
Other related parties
338
420
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
24
Related party transactions
(Continued)
- 30 -
Other information
At 30 June 2022 included within other creditors are amounts payable to related parties of £10.4m (2021 - £20.6m).
During the year a player registration was sold to a related party. The profit on disposal of this player registration was £2.32m
25
Ultimate controlling party
Nottingham Forest Football Club Limited is a wholly owned subsidiary of NF Football Investments Limited.
The largest group of companies which publishes consolidated financial statements and of which the company is a member is NF Football Investments Limited. These consolidated financial statements are available from Companies House.
The ultimate controlling party of the Club at 30 June 2022 was Mr E Marinakis.
26
Cash generated from operations
2022
2021
£000
£000
Loss for the year after tax
(45,610)
(15,526)
Adjustments for:
Finance costs
388
418
Amortisation and impairment of players registrations
7,310
5,101
Depreciation and impairment of tangible fixed assets
424
585
Loans written off
-
(5,000)
Profit on disposal of players registration
(4,084)
(14,322)
Movements in working capital:
Decrease/(increase) in stocks
207
(331)
(Increase) in debtors
(1,341)
(1,510)
Increase in creditors
5,057
17,063
Cash absorbed by operations
(37,649)
(13,522)
NOTTINGHAM FOREST FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 31 -
27
Analysis of changes in net debt
1 July 2021
Cash flows
30 June 2022
£000
£000
£000
Cash at bank and in hand
398
(392)
6
Bank overdrafts
(7,939)
(7,939)
398
(8,331)
(7,933)
Borrowings excluding overdrafts
(17,869)
6,738
(11,131)
(17,471)
(1,593)
(19,064)
2022-06-30
2021-07-01
false
CCH Software
CCH Accounts Production 2022.300
Mr. I Vrentzos
Mr. N Randall K.C. (Chairman)
Mr. J Owen
Mr. I Vrentzos
Mr. N Randall K.C. (Chairman)
01630402
2021-07-01
2022-06-30
01630402
bus:Director4
2021-07-01
2022-06-30
01630402
bus:Director5
2021-07-01
2022-06-30
01630402
bus:Director6
2021-07-01
2022-06-30
01630402
bus:Director8
2021-07-01
2022-06-30
01630402
bus:Director7
2021-07-01
2022-06-30
01630402
bus:Director1
2021-07-01
2022-06-30
01630402
bus:Director2
2021-07-01
2022-06-30
01630402
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