In my last statement I set out the significant challenges facing the business as a consequence of the Covid-19 pandemic. I outlined the tremendous support we had received from everyone associated with the club, but predicted that we were “not yet out of the woods”.
That prediction proved true.
The ongoing challenges faced by Welsh rugby in its entirety, by the professional game and by us as a professional club and business are well documented.
We have worked hard with our colleagues at the WRU and the other regions to reach a funding framework for the professional game for the next six years. The framework requires significant ongoing support from our governing body, their funders, the Welsh Government and our shareholders. We remain eternally grateful for this support, without which our professional game would face dire consequences.
The legal and approval process to bring the framework into effect is both complex and time consuming. It is a far-reaching agreement, which also encompasses significant changes to the economics of the professional game as a whole and impacts all involved, including playing contracts and player squad costs. To this extent, we must acknowledge the concerns expressed by all staff and players over the last 12 months and it would be remiss of me not to thank all our players, coaches and staff and their representatives, agents and the WRPA for their support and vision. Indeed, as I write we are just about to put pen to paper to bring the framework into effect. Although, in truth, while the framework underpins our professional game, we must not relax but rather re-double our efforts to keep making improvements collectively off the field, in order to promote continued improvements on the field.
Our season has seen mixed results but winning the Welsh shield in the URC competition and qualifying for the Champions Cup meets our playing objectives and is an excellent return for the sheer hard work and dedication of the team. An outstanding cup win and league performance by the RFC also helped alleviate some of the playoff disappointment at the end of the season. It is so pleasing to see both the senior team and the RFC perform so well in very challenging conditions and in very strong competitions. I must also mention the fantastic performances of our age grade, women’s, sight impaired and wheelchair teams.
Finally, and with a heavy heart, on behalf of all involved with the club, I pass on my condolences to Babs, and to the entire Thomas family following Peter’s passing. Peter was a friend, colleague and mentor to so many of us. So much has already been said about his extraordinary contribution to and involvement with Cardiff RFC and Cardiff Rugby over so many years. Put simply, to so many of us, Peter was Cardiff Rugby. Rest in peace, Peter.
Our focus must now shift to the future, to find a formula for the success we all crave and for stability off the field to enable us to perform on the field.
Thank you for your unwavering support.
The directors present their annual report and financial statements for the year ended 30 June 2022.
The results for the year are set out on page 13.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Chris Nott, Chris Sutton and Simon Down are appointed by Cardiff Athletic Club, who hold 750,000 Heritage shares of £1 and 500,000 Ordinary shares of £1.
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.
As at the year ended 30 June 2022, the company suffered a loss of £2,205k, with net current liabilities of £3.3m and total liabilities of £8.4m and remains reliant upon the support of the WRU, its various funders and the ongoing support and goodwill of its fans, commercial sponsors, directors and shareholders. A new funding framework has been agreed with the WRU, providing further certainty over funds and cashflow, and in addition a key shareholder has entered into a binding agreement to financially support the company if required.
The directors recognise that these conditions still indicate a significant uncertainty in relation to going concern and have taken steps to preserve liquidity.
The Director's have prepared cash flow forecasts for a period of 12 months from the date of approval of these financial statements. The forecasts indicate the company will have sufficient funds to meet its liabilities as they fall due for a period of at least 12 months from the approval of the accounts. Accordingly, they continue to adopt the going concern basis of preparation.
In the event that the company was not able to access the shareholder funding significant uncertainty would exist as to whether the company will continue to operate. This indicates that a material uncertainty exists that may cast doubt on the company's ability to continue as a going concern.
The financial statements do not include adjustments relating to the recoverability and classification of recorded asset amounts nor to the amounts and classification of liabilities that might be necessary should the company not continue as a going concern.
It is the Company's policy to treat all its employees fairly and ensure equal opportunity for all regardless of gender, ethnic origin, age, disability or religion.
The directors present the strategic report for the year ended 30 June 2022.
Fair review of the business
There were a number of positives to take from the year July 2021 to June 2022, however the Covid-19 pandemic continued to be a disruptive presence for Cardiff Rugby both on and off the field. Whilst we were returning to normality in many aspects, the long-term affects were still being felt and short-term setbacks, such as the Omicron outbreak, would have a significant impact on the rugby season.
However, the rugby community continued to show its unity at the club, embracing the club’s re-branding and producing memorable occasions as supporters returned to the terraces for the first time since March 2020.
Rugby
Despite the long-awaited return of crowds at rugby matches, Cardiff’s season continued to be heavily disrupted by the Covid-19 pandemic as the club finished in 14th place in the new-look United Rugby Championship.
On the back of a summer where Josh Adams and Josh Navidi represented British and Irish Lions and 12 players were involved in Wales’ international squad, the club enjoyed a promising start to the season, winning three of the opening five fixtures.
However, following the Omicron outbreak in December 2021 where 48 employees including 32 players were stuck in quarantine in South Africa, the second half of the season was a challenging one as the squad looked to regain form, fitness and continuity as well as battling against a growing injury list, which often made it difficult to have meaningful training sessions.
In Europe, Cardiff returned to the Heineken Champions Cup and were drawn against the defending French and English champions, Toulouse and Harlequins. Despite the South African quarantine, the club fulfilled their opening two fixtures with a squad compromising of international players, promising academy youngsters and semi-professionals.
Against adversity, the squad produced admirable performances against two full strength sides and, despite registering two defeats, captured the hearts of the rugby community. Fulfilling these fixtures also benefitted the club commercially with a bumper crowd attending the home fixture against Toulouse.
After narrowly missing out on the Champions Cup knockout stages on points difference, Cardiff qualified for the Challenge Cup last Round of 16 but were ultimately defeated 40-33 by Saracens at StoneX Stadium.
The festive derbies were also impacted by Covid and were rescheduled later in the season. The return home fixture against Harlequins was played behind closed doors, with the away trip to Toulouse cancelled due to an outbreak in the French club’s squad - awarding Cardiff a 28-0 victory.
The club also announced an alignment between the academy, Cardiff RFC and the first team, which would prove highly successful both in the short and long-term, winning the Indigo Group Premiership and producing valuable playing opportunities for youngsters such as Theo Cabango, Cameron Winnett, Jacob Beetham, Max Llewellyn, Mason Grady and Teddy Williams, who would all go on to feature for the first team.
Looking ahead to 2022/23, the club signed established international names in Lopeti Timani, Thomas Young, Taulupe Faletau and Liam Williams - with the latter three all included in the NS38 - while also retaining the services of key current players such as Josh Adams, Owen Lane, Seb Davies and Rhys Carré.
A total of 12 players also departed the club over the course of the season - Rhys Gill, Iestyn Harris, Scott Andrews, Ben Murphy, Alun Lawrence, Sam Moore, Lewis Jones, Luke Scully, Jason Tovey, Hallam Amos, Garyn Smith and Will Boyde.
Cardiff Arms Park
With the existing lease due to expire in February 2022, a new three-year extension was agreed with Cardiff Athletic Club, which was a significant boost to the club. As part of the new agreement, CAC have formed a development company who are tasked with the redevelopment of Cardiff Arms Park.
A number of improvements were made across the site as crowds were welcomed back for the first time since the Covid-19 outbreak and the first team squad continued to use the stadium for training. Hospitality spaces, such as the Sir Gareth Edwards Lounge, have been updated whilst there were also improvements made to have a positive impact on the fan experience, including a new ticket office
The fan experience as a whole received glowing feedback from a company engaged by the URC to asses this aspect across all clubs. Of the Welsh sides, Cardiff finished in second place but received the highest individual score. If it wasn’t for one low score, we would have comfortably come out on top. The team have already been hard at work to ensure standards are retained and raised.
Pentwyn Leisure Centre
Whilst plans for our High Performance Centre at Pentwyn have continued to progress, it has been at a frustrating pace due to delays in getting the project moving on the ground.
Alongside the Cardiff Rugby Community Foundation, a number of plans have been made to ensure that the local community will continue to be at the centre of the developments, including encouraging discussions with Cardiff Met and GLL (the previous operators of the leisure centre), with both options presenting a great opportunity to inject further revenue and de-risk it financially in terms of the public facilities.
The gym received a significant upgrade thanks to the partnership with fitness company Matrix, who invested £500,000 into the facility. The gym now contains top of the range Matrix equipment, which has in turn allowed us to equip a second gym at Cardiff Arms Park, and has been branded to align with the club’s re-brand in 2021.
Off the Field
The club’s rebrand to Cardiff Rugby was officially live from August 1, launching on all online platforms, on all official club merchandise and on-site at Cardiff Arms Park.
The rebrand received glowing feedback from supporters, which was reflected as Season Memberships sold at a rapid rate in the early stages. The final figures fell narrowly short of the financial target, in part due to supporters’ credit from the previous year, but exceeded the figures of the final full season pre-Covid. This was matched by good progress made on match ticket sales, exceeding the £400,000 budgeted target. Season Members’ retention rates were lower than usual but this was a common theme across professional rugby club in Wales.
The 2022/23 Season Memberships also got off to a great start, with 350 supporters renewing within the first 24 hours. To match the inflation figures, prices increased by 5 per cent across the board, while a three-year option was also introduced.
Commercially, the club made good progress with the likes of LCB Construction signing up for sponsorship and long-term partners Hugh James extending their relationship with the club. It has been a challenging time for the game in Wales from a commercial point-of-view, largely due to the pandemic as well as performances on the field at a national and regional level.
Human Resources
A number of personnel changes were made across both the rugby and admin sides of the business. Prior to the 22/23 campaign Gruff Parsons and Robin Sowden-Taylor resigned from their positions, with Olivia Withers joining the club from Harlequins.
The operations team was boosted by the appointments of Caroline Richards (Safety Cooordinator), Kerry Fothergill (Senior Operations Coordinator) and Gareth Booy (Ticketing Executive). On the commercial side, Gavin Vaughan-Evans joined the team to replace Harry Griffiths
Governance
In July 2021, Nigel Walker was appointed Performance Director at the WRU, moving on from his role as an advisor to the Cardiff Rugby board.
We appointed the club’s first Supporter Advisor with David Allen - a former Chair of the CF10 Trust and a lifelong supporter of Cardiff - joining in December 2021. This is a key appointment as we continue to strengthen and modernise the governance of the club.
2022/23
Due to the timing of the report, we are also able to briefly reflect on the 2022/23 season. Over the course of the season, there were positives and negatives, both on and off the field, which culminated in the club lifting the United Rugby Championship's Welsh Shield after finishing in 10th position in the final table and therefore qualifying for the Heineken Champions Cup ahead of 2023/24. The club also reached the quarter final stage of the European Challenge Cup where we lost narrowly to Benetton Rugby.
In March, the club tragically lost Peter Thomas CBE, who passed away aged 79. Peter made an unrivalled contribution to the club as Chairman, Life President and benefactor but we will make it a priority to honour his legacy in the forthcoming years. It goes without saying that Peter will be sorely missed by us all and we have a huge amount of gratitude for his contributions and commitment to rugby in Cardiff and Wales.
Negotiations continue over a long-term lease at Cardiff Arms Park and we are delighted to have a strong working relationship with Cardiff Athletic Club which is stronger than ever. Plans are also advancing regarding the new training and community facilities in Pentwyn, with work set to begin by mid-2023.
Professional rugby in Wales has faced its challenges this season from a financial point-of-view, but a new six-year Professional Rugby Agreement has finally been signed between the WRU, Cardiff Rugby, Dragons RFC, Ospreys and Scarlets. While the upcoming seasons are set to be challenging on the pitch due to reduced playing budgets, we hope the PRA will secure the long-term survival of the professional clubs in Wales.
KPIs for Year ended June |
| 2023 | 2022 | 2021 | 2019 |
|
| (Forecast) |
|
|
|
|
| £000 | £000 | £000 | £000 |
WRU Income |
| 9,016 | 6,061 | 1,304 | 4,790 |
Competition Income |
| 2,321 | 2,842 | 2,822 | 3,223 |
Commercial Income |
| 3,989 | 4,329 | 1,264 | 4,505 |
|
| 15,325 | 13,232 | 5,390 | 13,020 |
|
|
|
|
|
|
Rugby Salaries |
| (10,566) | (9,203) | (7,070) | (8,232) |
Rugby Costs |
| (1,160) | (1,238) | (1,043) | (1,006) |
Direct Costs |
| (1,685) | (2,157) | (814) | (1,246) |
|
| (13,410) | (12,598) | (8,927) | (10,575) |
|
|
|
|
|
|
Gross (Loss)/Profit |
| 1,915 | 634 | (3,537) | 2,445 |
Government Support (including rentals) |
|
| 293 | 4,721 |
|
Overheads |
| (2,672) | (3,073) | (2,689) | (2,850) |
Operating Loss for year |
| (757) | (2,146) | (1,505) | (405) |
|
|
|
|
|
|
Net Current Liabilities |
| (1,272) | (3,254) | (1,728) | (2,630) |
Liquid Assets |
| 1,300 | 431 | 3,182 | 192 |
Net Liabilities |
| (9,086) | (8,380) | (6,175) | (4,164) |
Cash Inflow/(Outflow) |
| 869 | (2,752) | 3,197 | (55) |
Financial Year 2022 saw the expected recovery from the Covid pandemic. The return of crowds to stadiums drove a significant increase in revenues at the Welsh Rugby Union which led to a greater distribution to the professional clubs. Equally the return of crowds led to a rebound in commercial income through gate receipts and matchday spend at Cardiff Arms Park and the return of sponsors. We are enormously grateful to all who have contributed.
The strengthening of the squad and coaching staff and the reinstatement of temporary pandemic salary cuts saw rugby salary costs rise against the 2021 figure. Direct costs, largely composed of food and beverage and casual staff expenditure, grew as activity increased compared to the previous year.
We have included for information our forecast results for Financial Year 2023 adjusted for each element of the financial package related to the Revised Professional Rugby Agreement (RPRA), which became effective in June 2023. Our WRU Income has grown due to the inclusion for the first time of an allocation of the revenue from the transaction under which CVC acquired a proportion of the commercial rights to Six Nations matches. Further amounts will be distributed over the 6 year term of the RPRA financial plan. We have also entered into a £3.75 million loan facility with the WRU. This facility has improved our short term financial position. As has been widely publicised the RPRA imposes strict financial limits on Wales’ professional clubs including a salary cap of £4.5m. These strictures are necessary to service the capital and interest costs of the debt accumulated by the Company over the last three years.
Financial risk management objectives and policies
The company operates a number of risk management policies designed to minimise its exposure to financial risk.
Liquidity and cash flow risk
The company produces detailed management accounts and forecasts, which enable the Directors to monitor the cash position and to ensure that there is sufficient liquidity and cash flow to minimise the risk of the company being unable to pay its debts as they fall due.
The company utilises loans to finance its operations. The continued availability of these debt facilities is crucial to the future prospects of the company.
Borrowings at variable rates expose the company to interest rate risk, however the directors actively manage this risk by monitoring cash-flow to ensure such borrowings are minimised.
Credit risk
Given the nature of the business the company does not consider that it faces any significant credit risk.
Price risk
The company actively manages price risk by agreeing terms with suppliers prior to entering into any transactions with customers.
Basis for opinion
Material uncertainty relating to going concern
We draw attention to note 1.2 in the financial statements describing the going concern status of the company. In making their assessment of Going Concern, the Directors have prepared a cash flow forecast for the next 12 months which indicates a continued requirement to raise additional shareholder investment to enable the company to continue as a going concern. Whilst the directors have identified the likely source of the additional funds,they recognise that these conditions indicate a significant uncertainty in relation to going concern. This indicates that a material uncertainty exists that may cast doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Other information
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' report 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.
As explained more fully in the directors' responsibilities statement, 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.
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.
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.
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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Cardiff Blues Limited is a private company limited by shares incorporated in England and Wales. The registered office is Cardiff Arms Park, Westgate Street, Cardiff, South Glamorgan, UK, CF10 1JA.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
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.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
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.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors and loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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 subsequently 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 through 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.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Transfer fees
Fees payable to and receivable from other rugby football clubs on the transfer of a player's registration, together with associated costs, are dealt with through the profit and loss account in the accounting year in which the transfer of the player's registration takes place.
Player's contracts
No value has been attributed to player's contracts in the balance sheet.
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.
An analysis of the company's turnover is as follows:
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
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:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
A fixed charge dated 23 December 2010 has been placed upon Cardiff Blues Limited by Barclays Bank Plc over all sums of money in any currency deposited or paid by the company with or to the Bank or held by the Bank on behalf of the company.
A fixed and floating charge dated 3 March 2018 has been placed upon Cardiff Blues Limited by Barclays Security Trustee Limited over all the property or undertaking of the company.
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The Heritage shares rank equally with Ordinary shares except for the right to appoint two directors to the Board and to remove any person so appointed from time to time. Also the approval of the holders of the Heritage shares must be obtained before the company can, inter alia, alter its articles of association, dispose of its rugby activities, substantially alter the nature of the business, change the club's colours or move the home ground outside of Cardiff.
The A shares hold non voting and non participating rights but hold the right to conversion to ordinary shares under certain circumstances.
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:
During the year the company entered into the following transactions with related parties:
Key Management Personnel - Other loans
1) A loan totalling £363,641 (2021: £584,285 ) was due to Atlantic Properties Developments PLC, a company under the control of Peter Thomas. The balance has been included in both short term and long term creditors in line with the terms of the agreements.
2) A loan of £415,000 (2021: £448,000) is due to Paul Bailey. The balance has been included in both short term and long term creditors in line with the terms of the agreements. A fixed charge is held over the pitch by Paul Bailey.
3) The non-executive directors did not receive any remuneration.
A guarantee of £337,500 has also been provided by Martyn Ryan in respect of a loan received by the Company.