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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 |
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SUNDERLAND LIMITED |
REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020 |
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FOR |
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SUNDERLAND LIMITED |
SUNDERLAND LIMITED (REGISTERED NUMBER: 03189630) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2020 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 3 |
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Report of the Independent Auditors | 5 |
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Income Statement | 7 |
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Other Comprehensive Income | 8 |
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Balance Sheet | 9 |
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Statement of Changes in Equity | 10 |
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Notes to the Financial Statements | 11 |
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SUNDERLAND LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JULY 2020 |
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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 and Statutory Auditors |
Jamesons House |
Compton Way |
Witney |
OX28 3AB |
SUNDERLAND LIMITED (REGISTERED NUMBER: 03189630) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JULY 2020 |
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The directors present their strategic report for the year ended 31 July 2020. |
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REVIEW OF BUSINESS |
The financial results for the year ended 31 July 2020 show turnover of £2 million (2019: £2 million) relating to the rent charge for The Stadium of Light. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The directors consider the major risk of the business to be the performance of Sunderland Association Football Club. |
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ON BEHALF OF THE BOARD: |
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SUNDERLAND LIMITED (REGISTERED NUMBER: 03189630) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JULY 2020 |
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The directors present their report with the financial statements of the company for the year ended 31 July 2020. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the freeholder of The Stadium of Light football ground. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 July 2020. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 August 2019 to the date of this report. |
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Other changes in directors holding office are as follows: |
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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). 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; |
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state whether applicable accounting standards have been followed, subject to any material departures disclosed
and explained in the financial statements; |
- | 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. |
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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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
SUNDERLAND LIMITED (REGISTERED NUMBER: 03189630) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JULY 2020 |
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AUDITORS |
The auditors, Jamesons Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SUNDERLAND LIMITED |
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Opinion |
We have audited the financial statements of Sunderland Limited (the 'company') for the year ended 31 July 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 July 2020 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. |
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Basis for opinion |
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 opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- | the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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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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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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SUNDERLAND LIMITED |
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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 three, 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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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. |
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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 and Statutory Auditors |
Jamesons House |
Compton Way |
Witney |
OX28 3AB |
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SUNDERLAND LIMITED (REGISTERED NUMBER: 03189630) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 31 JULY 2020 |
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2020 | 2019 |
Notes | £'000 | £'000 |
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TURNOVER | 3 |
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OPERATING PROFIT |
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Amounts written off investments | 5 | 160,271 | - |
(LOSS)/PROFIT BEFORE TAXATION | ( |
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Tax on (loss)/profit | 6 | ( |
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(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
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SUNDERLAND LIMITED (REGISTERED NUMBER: 03189630) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 JULY 2020 |
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2020 | 2019 |
Notes | £'000 | £'000 |
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(LOSS)/PROFIT FOR THE YEAR | ( |
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OTHER COMPREHENSIVE INCOME |
Reduction of capital |
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Income tax relating to other comprehensive
income |
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OTHER COMPREHENSIVE INCOME FOR THE
YEAR, NET OF INCOME TAX |
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TOTAL COMPREHENSIVE INCOME FOR THE
YEAR |
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SUNDERLAND LIMITED (REGISTERED NUMBER: 03189630) |
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BALANCE SHEET |
31 JULY 2020 |
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2020 | 2019 |
Notes | £'000 | £'000 | £'000 | £'000 |
FIXED ASSETS |
Tangible assets | 7 |
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Investments | 8 |
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Investment property | 9 |
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CURRENT ASSETS |
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 ASSETS |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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PROVISIONS FOR LIABILITIES | 13 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 14 |
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Share premium | 15 |
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Revaluation reserve | 15 |
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Other reserves | 15 |
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Retained earnings | 15 |
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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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SUNDERLAND LIMITED (REGISTERED NUMBER: 03189630) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 JULY 2020 |
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Called up |
share | Retained | Share |
capital | earnings | premium |
£'000 | £'000 | £'000 |
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Balance at 1 August 2018 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 July 2019 |
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Changes in equity |
Issue of share capital |
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Total comprehensive income | - |
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Balance at 31 July 2020 |
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Revaluation | Other | Total |
reserve | reserves | equity |
£'000 | £'000 | £'000 |
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Balance at 1 August 2018 |
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Changes in equity |
Total comprehensive income |
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Balance at 31 July 2019 |
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Changes in equity |
Issue of share capital | - | - | ( |
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Total comprehensive income |
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Balance at 31 July 2020 |
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SUNDERLAND LIMITED (REGISTERED NUMBER: 03189630) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2020 |
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1. | STATUTORY INFORMATION |
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Sunderland Limited is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
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• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c). |
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Preparation of consolidated financial statements |
The financial statements contain information about Sunderland Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, SJD Leisure Holdings Limited, . |
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Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
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Turnover |
Turnover includes rental income received, exclusive of value added tax. |
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Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
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Investment property is carried at fair value determined annually. This requirement is met through a full external valuation at least every five years and an interim valuation in year three, and a directors' valuation in the intervening years. No depreciation is provided. Changes in fair value are recognised in the statement of comprehensive income. |
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SUNDERLAND LIMITED (REGISTERED NUMBER: 03189630) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2020 |
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2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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 balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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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. |
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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. |
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3. | TURNOVER |
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The turnover and loss (2019 - profit) before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by class of business is given below: |
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2020 | 2019 |
£'000 | £'000 |
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4. | EMPLOYEES AND DIRECTORS |
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There were no staff costs for the year ended 31 July 2020 nor for the year ended 31 July 2019. |
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The average number of employees during the year was as follows: |
2020 | 2019 |
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Directors |
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2020 | 2019 |
£ | £ |
Directors' remuneration |
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SUNDERLAND LIMITED (REGISTERED NUMBER: 03189630) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2020 |
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5. | AMOUNTS WRITTEN OFF INVESTMENTS |
2020 | 2019 |
£'000 | £'000 |
Amounts w/o invs | 160,271 | - |
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6. | TAXATION |
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Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2020 | 2019 |
£'000 | £'000 |
Current tax: |
UK corporation tax | ( |
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Tax on (loss)/profit | ( |
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Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
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2020 | 2019 |
£'000 | £'000 |
(Loss)/profit before tax | ( |
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(Loss)/profit multiplied by the standard rate of corporation tax in the UK
of |
( |
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Effects of: |
Expenses not deductible for tax purposes |
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Capital allowances in excess of depreciation | - | ( |
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Utilisation of tax losses |
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Adjustments to tax charge in respect of previous periods | ( |
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Group loss relief | (380 | ) | (110 | ) |
Total tax (credit)/charge | (16 | ) | 16 |
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Tax effects relating to effects of other comprehensive income |
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2020 |
Gross | Tax | Net |
£'000 | £'000 | £'000 |
Reduction of capital |
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- | 252,253 |
SUNDERLAND LIMITED (REGISTERED NUMBER: 03189630) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2020 |
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7. | TANGIBLE FIXED ASSETS |
Fixtures |
and |
fittings |
£'000 |
COST |
At 1 August 2019 |
and 31 July 2020 |
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DEPRECIATION |
At 1 August 2019 |
and 31 July 2020 |
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NET BOOK VALUE |
At 31 July 2020 |
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At 31 July 2019 |
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8. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£'000 |
COST |
At 1 August 2019 |
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Additions |
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Impairments | ( |
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At 31 July 2020 |
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NET BOOK VALUE |
At 31 July 2020 |
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At 31 July 2019 |
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The company's investments at the Balance Sheet date in the share capital of companies include the following: |
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Registered office: The Sunderland Stadium of Light, Sunderland, Tyne and Wear, SR5 1SU |
Nature of business:
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Class of shares: | holding |
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SUNDERLAND LIMITED (REGISTERED NUMBER: 03189630) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2020 |
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9. | INVESTMENT PROPERTY |
Total |
£'000 |
FAIR VALUE |
At 1 August 2019 |
and 31 July 2020 |
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NET BOOK VALUE |
At 31 July 2020 |
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At 31 July 2019 |
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Fair value at 31 July 2020 is represented by: |
£'000 |
Valuation in 2014 | 85,450 |
Valuation in 2016 | 7,325 |
92,775 |
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The Stadium of Light is held as an investment property within the company, and is fair valued through profit and loss. The 31 July 2014 and 31 July 2016 valuations were made by Deloitte Real Estate, on a depreciated replacement cost basis. The valuation was also in accordance with the RICS Appraisal and Valuation Method. |
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10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£'000 | £'000 |
Amounts owed by group undertakings |
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11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£'000 | £'000 |
Tax |
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Other creditors |
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Accruals and deferred income |
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12. | SECURED DEBTS |
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On 4 November 2019 a fixed and floating charge was put in place in favour of FPP Sunderland LLC covering various freehold and leasehold properties registered in the name Sunderland Limited. |
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On 8 November 2019 a fixed and floating charge was put in place in favour of FPP Sunderland LLC covering various freehold and leasehold properties registered in the name Sunderland Limited. |
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13. | PROVISIONS FOR LIABILITIES |
2020 | 2019 |
£'000 | £'000 |
Deferred tax | 7,126 | 7,126 |
SUNDERLAND LIMITED (REGISTERED NUMBER: 03189630) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2020 |
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13. | PROVISIONS FOR LIABILITIES - continued |
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Deferred |
tax |
£'000 |
Balance at 1 August 2019 |
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Movement in year |
Balance at 31 July 2020 |
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14. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £'000 | £'000 |
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Ordinary | £0.01 | 10,000 | 1,608 |
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15. | RESERVES |
Retained | Share | Revaluation | Other |
earnings | premium | reserve | reserves | Totals |
£'000 | £'000 | £'000 | £'000 | £'000 |
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At 1 August 2019 | ( |
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238,799 |
Deficit for the year | ( |
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Transfer | 252,253 | (251,645 | ) | - | - | 608 |
At 31 July 2020 |
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81,152 |
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On 17 October 2019 the company undertook a reduction of capital to transfer £608,287 of the company's ordinary share capital and £251,644,947 of share premium to the company's profit and loss reserves. |
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On 1 November 2019 the company issued an additional £9,000,000 of ordinary share capital. |
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16. | ULTIMATE PARENT COMPANY |
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SJD Leisure Holdings Limited is regarded by the directors as being the company's ultimate parent company. |
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The registered office address is Jamesons House, 6 Compton Way, Witney, Oxon, OX28 3AB. |
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17. | ULTIMATE CONTROLLING PARTY |
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The ultimate controlling party is
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