Company Registration No. 07698872 (England and Wales)
WREXHAM AFC LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
WREXHAM AFC LIMITED
COMPANY INFORMATION
Directors
Mr Mark Williams
Mr Gavin Jones
Company number
07698872
Registered office
The Coach House
25 Rhosddu Road
Wrexham
LL11 1EB
Auditor
McLintocks (NW) Limited
The Coach House
25 Rhosddu Road
Wrexham
LL11 1EB
Business address
Racecourse Ground
Mold Road
Wrexham
LL11 2AH
WREXHAM AFC LIMITED
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 18
WREXHAM AFC LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2019
- 1 -
The directors present their annual report and financial statements for the year ended 30 June 2019.
Executive Summary
The season under review was positive overall with an improvement in league position, attendances, finances all achieved along with the return of the Welsh National team to the Racecourse for the first time since 2008.
F
inance
Review
Gate receipts increased to £1.1 million for the season in review and by 19% over the prior season. This was as a result of a positive start to the season that resulted in an overall average attendance in excess of 5,000. Gate receipts are the main proportion of our budgeted income but there was also an increase in our sponsorship and advertising income.
Our Youth Department income did decrease on the prior season but this was due to change in football regulations that prevented the registration of new YTS players and the drop in income is a direct result of the associated funding that had previously been received. We recognise that this caused a concern but the decision to remove us from the LFE funding scheme was outside the control of the club. Representations were made, without success, to the relevant football authorities that the funding status should be based on the quality of the development programme rather than the respective league position of the first team
The quality of our Youth Development programme is highlighted by transfer fees and prize money in excess of £1,500,000. The majority of this is from the sell on clause from Danny Ward and Kayden Jackson along with compensation received from Shrewsbury Town FC for first team manager Sam Ricketts. However, another consequence of the change in the Youth Development funding is that we are no longer entitled to any compensation for any player under the age of 17. Although we have so far been successful if receiving a level of compensation on all instances.
This additional income allowed additional budget to be released to the First Team with overall costs in this area increasing by 35% on the previous season and £517,000 above the original budget for the season. The additional income also enabled additional expenditure on facility costs and capital expenditure of over £125,000, which included £32,000 of player purchases.
Although we have reflected the full transfer fee in our accounts it is noticeable from our balance sheet that debtors have increased by £900,000 as only 50% income was received during the current season.
The operating profit shown in the accounts resulted in a tax liability of £46,561 after taking account of historical tax losses that had accumulated since 2011. Due to the forecasted loss for the current financial year it is anticipated that this tax charge will be reversed in the following financial year as losses can be carried back profits for the earlier 12-month period.
Football Review
After missing out on the play offs in the previous season by a small margin we achieved the play offs but missed out on automatic promotion by five points. During the season we lost twice to eventual Champions Leyton Orient FC and a win in one of these games would have resulted in us topping the table.
This narrow miss was achieved on the back of an unwanted managerial change when Sam Ricketts left us to join Shrewsbury Town FC.
After failing to land our number one target to replace Sam Ricketts, Assistant Manager Graham Barrow took over a First Team Manager and despite a positive start to his short tenure, which included a 5-1 Boxing Day victory in front of 8,000 people at the Racecourse against eventual play off winners Salford City FC, form dipped in January and Graham Barrow decided to relinquish his position as First Team Manager and ultimately left the club.
WREXHAM AFC LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 2 -
Former Wrexham midfielder Bryan Hughes soon joined as First Team Manager and despite recording 9 wins in the final 15 games it was not enough to secure automatic promotion and the season ended to defeat to Eastleigh FC in the play offs.
The cup competitions resulted in us reaching the Second round of the FA Cup and FA Trophy before being knocked out by Newport County AFC and Leyton Orient FC respectively.
Off the Pitch Review
After building on the successful Stereophonics concert at the end of the previous season, it was the return of the Welsh National team to the Racecourse the main highlight off the field. Over 10,000 spectators attended the match against Trinidad & Tobago and helped secure the status of the Racecourse Ground as the oldest international stadium in the world.
Thank you
We thank everybody for their support during the season in review as the performance of the club is in principal due to the continued goodwill of supporters, sponsors and volunteers.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr Mark Williams
Mr Gavin Jones
Auditor
McLintocks (NW) Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr Mark Williams
Director
29 February 2020
WREXHAM AFC LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2019
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
WREXHAM AFC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WREXHAM AFC LIMITED
- 4 -
Opinion
We have audited the financial statements of Wrexham AFC Limited (the 'company') for the year ended 30 June 2019 which comprise the profit and loss account, the balance sheet, the statement of cash flows 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 FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 30 June 2019 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
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.
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 directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
WREXHAM AFC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WREXHAM AFC LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the directors'
r
eport
.
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; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
WREXHAM AFC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WREXHAM AFC LIMITED
- 6 -
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.
Timothy Mitchell BSc FCA (Senior Statutory Auditor)
for and on behalf of McLintocks (NW) Limited
29 February 2020
Chartered Accountants
Statutory Auditor
The Coach House
25 Rhosddu Road
Wrexham
LL11 1EB
WREXHAM AFC LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2019
- 7 -
2019
2018
£
£
Turnover
4,113,587
2,426,527
Cost of sales
(2,600,203)
(1,979,910)
Gross profit
1,513,384
446,617
Administrative expenses
(715,505)
(530,160)
Operating profit/(loss)
797,879
(83,543)
Interest payable and similar expenses
(1,418)
(24,622)
Profit/(loss) before taxation
796,461
(108,165)
Tax on profit/(loss)
4
(40,874)
-
Profit/(loss) for the financial year
755,587
(108,165)
WREXHAM AFC LIMITED
BALANCE SHEET
AS AT
30 JUNE 2019
30 June 2019
- 8 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
5
32,470
41,308
Tangible assets
6
183,336
122,314
215,806
163,622
Current assets
Stocks
48,601
87,162
Debtors
7
968,757
173,055
Cash at bank and in hand
257,554
257,557
1,274,912
517,774
Creditors: amounts falling due within one year
8
(826,438)
(793,854)
Net current assets/(liabilities)
448,474
(276,080)
Total assets less current liabilities
664,280
(112,458)
Creditors: amounts falling due after more than one year
9
(43,341)
(48,424)
Net assets/(liabilities)
620,939
(160,882)
Capital and reserves
Called up share capital
10
1,057,508
1,031,274
Profit and loss reserves
(436,569)
(1,192,156)
Total equity
620,939
(160,882)
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 29 February 2020 and are signed on its behalf by:
Mr Mark Williams
Director
Company Registration No. 07698872
WREXHAM AFC LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2019
- 9 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
15
100,596
179,129
Interest paid
(1,418)
(24,622)
Net cash inflow from operating activities
99,178
154,507
Investing activities
Purchase of intangible assets
(32,000)
(42,500)
Purchase of tangible fixed assets
(93,415)
(32,327)
Net cash used in investing activities
(125,415)
(74,827)
Financing activities
Proceeds from issue of shares
26,234
50,000
Net cash generated from financing activities
26,234
50,000
Net (decrease)/increase in cash and cash equivalents
(3)
129,680
Cash and cash equivalents at beginning of year
257,557
127,877
Cash and cash equivalents at end of year
257,554
257,557
WREXHAM AFC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
- 10 -
1
Accounting policies
Company information
Wrexham AFC Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
The Coach House, 25 Rhosddu Road, Wrexham, LL11 1EB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements
on the grounds that the company will continue to be supported financially by the Wrexham Supporters Trust for the foreseeable future.
1.3
Turnover
Turnover is stated exclusive of value added tax, and match receipts are recognised net
of
payments owing to visiting clubs, the Football Association and the Football
Conference.
Gate and other match day revenue is recognised over the period of the football season
as
games are played. Sponsorship income is recognised over the duration of the
contract.
Broadcasting fees are recognised when earned.
1.4
Intangible fixed assets - goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2011, is
being amortised evenly over its estimated useful life of two years.
1.5
Intangible fixed assets other than goodwill
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website
Amortised evenly over their estimated useful life of 5 years.
Trademarks
Amortised evenly over their estimated useful life of 10 years.
Player Registration
Amortised evenly over the life of the individual contracts.
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
WREXHAM AFC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 11 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Property improvements
Straight line over the life of the lease
Plant and equipment
20% on cost
Fixtures and fittings
20% on cost
Computers
30% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.7
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due
allowance
for obsolete and slow moving items.
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
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.
Classification of financial 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.
WREXHAM AFC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 12 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts 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. A
m
ounts 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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
WREXHAM AFC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 13 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 178 (2018 - 191).
4
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
40,874
-
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit/(loss) before taxation
796,461
(108,165)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
151,328
(20,551)
Tax effect of utilisation of tax losses not previously recognised
(107,097)
-
Unutilised tax losses carried forward
-
19,140
Permanent capital allowances in excess of depreciation
(9,512)
(3,772)
Depreciation on assets not qualifying for tax allowances
6,155
5,183
Taxation charge for the year
40,874
-
WREXHAM AFC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 14 -
5
Intangible fixed assets
Goodwill
Website
Trademarks
Player Registration
Total
£
£
£
£
£
Cost
At 1 July 2018
443,990
20,000
340
52,500
516,830
Additions
-
-
-
32,000
32,000
Disposals
-
-
-
(10,000)
(10,000)
At 30 June 2019
443,990
20,000
340
74,500
538,830
Amortisation and impairment
At 1 July 2018
443,990
5,333
170
26,029
475,522
Amortisation charged for the year
-
4,000
34
36,804
40,838
Disposals
-
-
-
(10,000)
(10,000)
At 30 June 2019
443,990
9,333
204
52,833
506,360
Carrying amount
At 30 June 2019
-
10,667
136
21,667
32,470
At 30 June 2018
-
14,667
170
26,471
41,308
6
Tangible fixed assets
Property improvements
Plant and machinery etc
Total
£
£
£
Cost
At 1 July 2018
129,844
94,378
224,222
Additions
43,351
50,064
93,415
At 30 June 2019
173,195
144,442
317,637
Depreciation and impairment
At 1 July 2018
38,616
63,292
101,908
Depreciation charged in the year
13,471
18,922
32,393
At 30 June 2019
52,087
82,214
134,301
Carrying amount
At 30 June 2019
121,108
62,228
183,336
At 30 June 2018
91,228
31,086
122,314
WREXHAM AFC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 15 -
7
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
944,444
88,489
Amounts owed by group undertakings
-
21,892
Other debtors
2,188
1,836
Prepayments and accrued income
22,125
60,838
968,757
173,055
8
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
99,032
99,224
Amounts owed to group undertakings
94,198
92,690
Corporation tax
40,874
-
Other taxation and social security
90,951
117,249
Other creditors
16,529
10,921
Accruals and deferred income
484,854
473,770
826,438
793,854
9
Creditors: amounts falling due after more than one year
2019
2018
£
£
Other creditors
43,341
48,424
10
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1,057,508 Ordinary of £1 each
1,057,508
1,031,274
WREXHAM AFC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 16 -
11
Pension commitments
Wrexham Football Club (‘the Club’) participates in the Football League Pension and Life Assurance Scheme (‘the Scheme’). The Scheme is a funded multi-employer defined benefit scheme, with 92 participating employers, and where members may have periods of service attributable to several participating employers. The Club is unable to identify its share of the assets and liabilities of the Scheme and therefore accounts for its contributions as if they were paid to a defined contribution scheme.
The last actuarial valuation was carried out at 31 August 2017 where the total deficit on the on-going valuation basis was £30.4 million. The key assumptions used to calculate the deficit at the 31 August 2017 actuarial valuation are:
Discount Rate Gilt Yield Curve + 2.0% per annum
RPI inflation: Bank of England Inflation Curve
Pension Increases: Fixed 3.0% per annum for benefits accrued prior to 6 April 1997, and modelled using the RPI inflation assumption with a cap of 5.0% per annum and a floor of 3.0% per annum for benefits accrued after 6 April 1997.
Mortality (pre-retirement): None
Mortality (post-retirement): SAPS CMI 2016, 1.5% p.a. long term improvement rate
The accrual of benefits ceased within the Scheme on 31 August 1999, therefore there are no contributions relating to current accrual. The Club pays monthly contributions based on a notional split of the total expenses and deficit contributions of the Scheme.
The results of the 2017 valuation were rolled forward to 30 June 2019 on the same assumptions as detailed above, and the Club’s notional share of the deficit was £42,185 (£46,710 as at 30 June 2018).
As at 30 June 2019, the Club was paying total contributions of £520 per month (increasing by 5% p.a. from 1 September 2018 and thereafter) and based on the actuarial valuation assumptions detailed above will be sufficient to pay off the deficit by 31 May 2026.
As at 30 June 2019, based on an appropriate discount rate of 1.28% per annum (1.61% per annum as at 30 June 2018), the present value of the Club’s outstanding contributions (i.e. their future liability) is £49,842 (£54,735 as at 30 June 2018). This amounts to £6,500 (2018: £6,311) due within one year and £43,342 (2018: £48,424) due after more than one year and is included within other payables.
Present Value of Defined Benefit Obligation
2019
2018
£
£
Present Value of Defined Benefit Obligation
49,842
54,735
Reconciliation of Defined Benefit Obligation
2019
2018
£
£
Defined Benefit Obligation at start of year
54,735
36,731
Net Interest Charge (Unwinding of discount rate)
832
394
Club contribution (deficit contribution)
(6,311)
(6,615)
Remeasurement (changes in assumptions)
586
(275)
Remeasurement (changes to contribution schedule)
-
24,500
Defined Benefit Obligation at end of year
49,842
54,735
WREXHAM AFC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
11
Pension commitments
(Continued)
- 17 -
Income and Expenditure Impact
2019
2018
£
£
Net Interest Charge (Unwinding of discount rate)
832
394
Remeasurement (changes in assumptions)
586
(275)
Remeasurement (changes to contribution schedule)
-
24,500
Assumptions
2019
2018
Discount Rate (based on AA Corporate Bond Yields of
appropriate currency/duration)
1.28%
1.61%
The funding objective of the Trustees of the Scheme is to have sufficient assets to meet the Technical Provisions of the Scheme. In order to remove the deficit revealed at the previous actuarial valuation (dated 31 August 2017), deficit contributions are payable by all participating clubs. Payments are made in accordance with a pension contribution schedule. As the Scheme is closed to accrual, there are no additional costs associated with the accruing of members' future benefits. In the case of a club being relegated from the Football League and being unable to settle its debt then the remaining clubs may, in exceptional circumstances, have to share the deficit.
Upon the wind-up of the Scheme with a surplus, any surplus will be used to augment benefits. Under the more likely scenario of there being a deficit, this will be split amongst the clubs in line with their contribution schedule. Should an individual club leave the Scheme, they may be required to pay their share of the deficit based on a proxy buyout basis (i.e. valuing the benefits on a basis consistent with buying out the benefits with an insurance company).
12
Capital commitments
Amounts contracted for but not provided in the financial statements:
2019
2018
£
£
Acquisition of tangible fixed assets
13,850
-
WREXHAM AFC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 18 -
13
Related party disclosures
Wrexham AFC Limited and WST Assets Limited are subsidiaries of Wrexham Football
Supporters' Society Limited (trading as Wrexham Supporters Trust).
On 1 August 2016 WST Assets Limited entered into a 99 year finance lease with
Wrexham
Glyndwr University to lease the Racecourse football ground. The lease is
guaranteed by
Wrexham AFC Limited and Wrexham Football Supporters' Society Limited.
The property is being rented by WST Assets Limited to Wrexham AFC Limited
at £1
0
0,000
per annum
plus associated expenses recharged
. During the year the company
was charged
rent
and associated expenses
of £1
3
0,000
(2018: £100,000)
and
insurance of £
10,786 (2018: £8,975) from
WST Assets Limited. As at 30 June 201
9
the company owed £
7,108
(201
8
:
debtor
£
21,892
)
to
WST Assets Limited.
As at 30 June 201
9
the company owed Wrexham Football
S
upporters'
Society Limited
£
87,091
(201
8
: £
92,690
).
Mr Gavin Jones, director, is a trustee of the Racecourse Community Foundation. During the year, the company made donations to the Racecourse Community Foundation totalling £3,600
(201
8
: £
3,600
).
14
Ultimate controlling party
Wrexham Football Supporters' Society Limited (trading as Wrexham Supporters Trust)
is the
company's ultimate parent company and controlling party.
Wrexham Football Supporters' Society Limited is
registered under the Co-operative and Community Benefit Societies Act 2014 and is
owned by its members
. A
s such
there is
no ultimate controlling party
. The registered address for Wrexham Football Supporters' Society Limited is C/o McLintocks, The Coach House, 25 Rhosddu Road, Wrexham LL11 1EB.
15
Cash generated from operations
2019
2018
£
£
Profit/(loss) for the year after tax
755,587
(108,165)
Adjustments for:
Taxation charged
40,874
-
Finance costs
1,418
24,622
Amortisation and impairment of intangible assets
40,838
20,063
Depreciation and impairment of tangible fixed assets
32,393
27,279
Movements in working capital:
Decrease/(increase) in stocks
38,561
(21,929)
(Increase)/decrease in debtors
(795,702)
337,370
Decrease in creditors
(13,373)
(100,111)
Cash generated from operations
100,596
179,129
WREXHAM AFC LIMITED
DETAILED TRADING AND PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2019
- 19 -
2019
2018
£
£
£
£
Turnover
Gate Receipts
1,122,799
942,617
Matchday Commercial Income
167,075
186,965
Football Income
186,515
111,256
Retail Income
229,426
205,742
Sponsorship and Advertising Income
154,667
145,746
Gold Bond Income
9,243
11,706
Youth Department Income
81,471
162,200
Away Travel Income
55,866
33,229
Stadium Income
431,128
481,081
Transfer Fees and Prize Money
1,671,826
128,592
Donations
3,571
17,393
4,113,587
2,426,527
Cost of sales
Matchday Costs
196,254
129,352
Matchday Commercial Costs
73,738
73,414
Football Costs
1,454,489
1,071,663
Retail Costs
147,072
104,404
Sponsorship and Advertising costs
5,631
4,451
Gold Bond Costs
3,147
3,834
Youth Department Costs
154,542
168,512
Away Travel Costs
53,400
35,273
Stadium Costs
511,930
389,007
(2,600,203)
(1,979,910)
Gross profit
36.79%
1,513,384
18.41%
446,617
Administrative expenses
(715,505)
(530,160)
Operating profit/(loss)
797,879
(83,543)
Interest payable and similar expenses
Pension deficit revaluation
(1,418)
(24,622)
Profit/(loss) before taxation
19.36%
796,461
4.46%
(108,165)
WREXHAM AFC LIMITED
SCHEDULE OF ADMINISTRATIVE EXPENSES
FOR THE YEAR ENDED 30 JUNE 2019
2019
2018
£
£
Administrative expenses
Facility costs
359,464
217,732
Insurance
16,740
20,603
Motor running expenses
5,528
7,163
Travelling expenses
976
142
Legal and professional fees
12,861
363
Audit fees
7,030
7,000
Bank charges
44,988
23,814
Office costs
32,016
21,431
Advertising
8,043
8,391
Telecommunications
5,412
7,289
Sundry
10,268
10,294
Administration costs
135,498
156,726
Donations
3,450
1,870
Amortisation of Website
4,000
4,000
Amortisation of player registrations
36,804
16,029
Amortisation of trademarks
34
34
Depreciation of improvements to property
13,471
9,357
Depreciation of plant & machinery
8,783
8,723
Depreciation of fixtures & fittings
1,546
3,991
Depreciation of computer equipment
8,593
5,208
715,505
530,160
2019-06-30
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