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OSPREYS RUGBY LIMITED |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 JUNE 2022 |
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REGISTERED NUMBER:
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OSPREYS RUGBY LIMITED |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 JUNE 2022 |
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OSPREYS RUGBY LIMITED (REGISTERED NUMBER: 04730479) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2022 |
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Company Information | 1 |
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Balance Sheet | 2 | to | 3 |
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Notes to the Financial Statements | 4 | to | 11 |
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OSPREYS RUGBY LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2022 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY AUDITOR: |
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AUDITORS: |
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Chartered Accountants and Statutory Auditor |
Swansea, United Kingdom |
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AUDITORS OFFICE: |
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Swansea Enterprise Park |
Llansamlet |
Swansea |
SA7 9FG |
OSPREYS RUGBY LIMITED (REGISTERED NUMBER: 04730479) |
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BALANCE SHEET |
30 JUNE 2022 |
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2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 5 |
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Investments | 6 |
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CURRENT ASSETS |
Stocks |
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Debtors | 7 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 8 |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
9 |
( |
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( |
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ACCRUALS AND DEFERRED INCOME | ( |
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NET LIABILITIES | ( |
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CAPITAL AND RESERVES |
Called up share capital | 12 |
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Share premium |
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Capital contribution reserve | 13 |
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Retained earnings |
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SHAREHOLDERS' FUNDS | ( |
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OSPREYS RUGBY LIMITED (REGISTERED NUMBER: 04730479) |
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BALANCE SHEET - continued |
30 JUNE 2022 |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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OSPREYS RUGBY LIMITED (REGISTERED NUMBER: 04730479) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2022 |
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1. | STATUTORY INFORMATION |
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Ospreys Rugby Limited is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | STATEMENT OF COMPLIANCE |
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3. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 which are considered to be relevant. Actual results may differ from these estimates. |
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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 if the revision only effects that period or in the period of the revision and future periods if the revision affects both current and future periods. |
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The following are the critical judgements that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. |
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Provisions and contingent liabilities |
Provisions are recognised when the company has a present obligation as a result of a past event and a reliable estimate can be made of a probable adverse outcome. Otherwise, material contingent liabilities are disclosed unless the transfer of economic benefits is remote. Contingent assets are only disclosed if an inflow of economic benefits is probable. |
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Impairment of assets |
Assets are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the income statement. |
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Exceptional items |
Where the company incurs costs or is entitled to income which the directors consider are either outside the scope of normal operating activities or unusually material to the accounts in terms of size or incidence, then such amounts are classified as exceptional items and disclosed separately on the face of the income statement and described further in a separate note to the accounts. |
OSPREYS RUGBY LIMITED (REGISTERED NUMBER: 04730479) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
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3. | ACCOUNTING POLICIES - continued |
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Turnover |
Turnover is the amount derived from ordinary activities and stated after trade discounts, other sales taxes and net of VAT. Revenue in relation to the provision of services is recognised evenly over the period to which it relates. Revenue in relation to the sale of goods is recognised when the goods are despatched. Revenue in relation to player transfers is recognised on the transfer date. |
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Contra arrangements |
Where arrangements are entered into to provide services in exchange for goods or services from the same party, the company recognises the income and related expenditure, where a commercial value can be attached to the transaction. Where services are exchanged for similar services, such as advertising, no income nor expenditure is recognised. |
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Tangible fixed assets |
Tangible fixed assets are measured at cost less accumulated depreciation and impairment provisions. No depreciation is charged in relation to assets not brought into use at the balance sheet date. |
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Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life. |
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Freehold property | - | Straight line basis at 10% and 15% |
Plant and machinery | - | Straight line basis at various rates between 12.5% and 33% |
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Stocks |
Stocks are stated at the lower of cost and net realisable value. Cost includes purchase price less discounts where applicable. Net realisable value is based on estimated selling price. Provision is made for obsolete and slow moving items where appropriate. |
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Joint ventures |
Entities in which the company holds an interest and which are jointly controlled by the company and one or more other venturers under a contractual agreement are treated as joint ventures. Investments in joint ventures are stated at cost less impairment. |
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Equity instruments |
Equity instruments issued by the company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. |
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Financial instruments |
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. |
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Financial assets and liabilities |
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. |
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All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
OSPREYS RUGBY LIMITED (REGISTERED NUMBER: 04730479) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
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3. | ACCOUNTING POLICIES - continued |
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Financial assets and liabilities - continued |
Debt instruments that are classified as payable or receivable within one year are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. |
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Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the company, despite having retained some significant risks and rewards of ownership, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer. |
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Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires. |
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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 |
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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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
OSPREYS RUGBY LIMITED (REGISTERED NUMBER: 04730479) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
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3. | ACCOUNTING POLICIES - continued |
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Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
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The interest element of these obligations is charged to the income statement over the relevant period. The capital element of the future payments is treated as a liability. |
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Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution scheme for its employees. The amount charged to the profit and loss account in respect of pension contributions and other post retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and those actually paid are shown as either accruals or prepayments at the balance sheet date. |
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Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
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The interest element of these obligations is charged to the income statement over the relevant period. The capital element of the future payments is treated as a liability. |
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Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease. |
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Going concern |
The financial position of the Company and its liquidity position is set out in the financial statements. Like many businesses in the sector, the Company has been through a period of unprecedented challenges over recent years. The global pandemic resulted in the forced cessation of in-person events and matches with a significant portion of WRU funding being withdrawn. Despite the resurgence of match days and crowds following the lifting of restrictions, the Company is facing further instability as the industry as a whole continues to face challenges. |
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At the year ended 30 June 2022, the Company suffered a loss in the year and remained in a net current liability position of £0.4m and an overall net liability position of £4.6m at the balance sheet date. The Company remains reliant upon the support of the WRU, its various funders and the ongoing support and goodwill of fans, commercial sponsors, directors and shareholders. |
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The directors recognise that these conditions indicate a significant uncertainty in relation to going concern. The directors have reviewed the current financial position and projected future cash flows and have a reasonable expectation that the company will have sufficient resources to operate for a period of at least twelve months from the approval of the accounts. Accordingly, they continue to adopt the going concern basis of preparation. |
OSPREYS RUGBY LIMITED (REGISTERED NUMBER: 04730479) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
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3. | ACCOUNTING POLICIES - continued |
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Government grants |
Government grants are recognised as assets at such time that there is reasonable assurance that the company will comply with the conditions attached to the grant and that the grant will be received. |
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Grants are measured at the fair value of the asset receivable. |
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Grants are recognised as income once any performance related conditions are met. Where grants are received in advance of the revenue recognition criteria being met, they are recognised as deferred income. |
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4. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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5. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST |
At 1 July 2021 |
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Additions |
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Reclassification/transfer | ( |
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At 30 June 2022 |
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DEPRECIATION |
At 1 July 2021 |
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Charge for year |
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Reclassification/transfer |
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At 30 June 2022 |
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NET BOOK VALUE |
At 30 June 2022 |
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At 30 June 2021 |
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6. | FIXED ASSET INVESTMENTS |
Interest |
in joint |
venture |
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COST |
At 1 July 2021 |
and 30 June 2022 |
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NET BOOK VALUE |
At 30 June 2022 |
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At 30 June 2021 |
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OSPREYS RUGBY LIMITED (REGISTERED NUMBER: 04730479) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
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7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
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Other debtors |
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8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Other loans |
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Hire purchase contracts |
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Trade creditors |
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Social security and other taxes |
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VAT |
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Other creditors |
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Accrued expenses |
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9. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2022 | 2021 |
£ | £ |
Other loans - 1-2 years |
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Other loans - 2-5 years |
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Other loans - 5 years |
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Amounts falling due in more than five years: |
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Repayable by instalments |
Other loans - 5 years | 3,157,148 | - |
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10. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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2022 | 2021 |
£ | £ |
Hire purchase contracts | 2,690 | 4,135 |
Other loans | 4,238,961 | 5,452,184 |
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Other loans are secured by: |
- A personal guarantee limited to £337,500 from a company director; |
- A debenture over the assets of the company; |
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Hire purchase liabilities are secured upon the assets to which they relate. |
OSPREYS RUGBY LIMITED (REGISTERED NUMBER: 04730479) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
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11. | FINANCIAL INSTRUMENTS |
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The company has received loans which are not subject to interest, or are subject to interest at below market rates. Adjustments have been made to reflect the fair value of these loans based on the estimated rate of interest that would be expected to be charged if the loans were on commercial terms. |
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Other operating income includes 2022 - £837,490 (2021 - £601,516) relating to these fair value adjustments, interest payable also includes 2022 - £243,380 (2021 - £211,946) relating to notional interest. |
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12. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
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Ordinary | £1 | 1,450,101 | 1,450,102 |
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A Ordinary | 10p | 735,295 | 735,295 |
2,185,396 | 2,185,397 |
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13. | RESERVES |
Capital |
contribution |
reserve |
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At 1 July 2021 |
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Parent company loan |
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At 30 June 2022 |
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The transfer to the capital contribution reserve is a fair value adjustment in relation to a loan received from the parent company during the year. The loan is not expected to be repaid. |
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14. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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15. | OTHER FINANCIAL COMMITMENTS |
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The company has commitments in relation to non cancellable operating leases totalling £3,301,990 (2021 - £78,757). The operating leases are in relation to land and buildings. |
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16. | RELATED PARTY DISCLOSURES |
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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 companies within the group. |
OSPREYS RUGBY LIMITED (REGISTERED NUMBER: 04730479) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
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16. | RELATED PARTY DISCLOSURES - continued |
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A director has provided a personal guarantee in relation to other loans as shown in note 11. Certain directors have also provided personal guarantees totalling £275,000 (2021 - £375,000) in relation to the company's bank overdraft facility. |