Registration number:
Exeter Rugby Club Limited
for the Year Ended 30 June 2021
Exeter Rugby Club Limited
(Registration number: 03320422)
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
Exeter Rugby Club Limited
(Registration number: 03320422)
Company Information
Directors |
A G E Rowe OBE Hon LLD M A Isaacs L J Duncan N J Teague T H Percival A Quantick FCA N M Pavis C J Over |
Registered office |
|
Auditors |
|
Exeter Rugby Club Limited
(Registration number: 03320422)
Strategic Report for the Year Ended 30 June 2021
The directors present their strategic report for the year ended 30 June 2021.
Principal activity
The principal activities of the company are the playing and promotion of rugby together with providing conferencing and banqueting facilities at Sandy Park Stadium.
Fair review of the business
Bearing in mind the difficulties under which the business operated in 2020/21 due to Covid, the directors consider that, having taken all reasonable steps to mitigate the effects on financial performance, they can be satisfied with the results of the company despite significant losses.
The company's key financial and other performance indicators during the year were as follows:
Unit |
2021 |
2020 |
|
Turnover |
£ |
9,628,947 |
16,962,035 |
Gross profit margin |
% |
(64) |
(2) |
Profit/(loss) before tax |
£ |
(8,001,805) |
(2,504,557) |
Net assets/(liabilities) |
£ |
(5,702,541) |
622,047 |
Supporters, as ever, remain at the core of the club and we were disappointed that the pandemic resulted in very few matches being played with crowds, and those that were, suffered from severe Government imposed restrictions. The decision was therefore taken to cancel the season tickets for 2020/21 and transfer the funds already received to the 2021/22 season.
On the field and despite the majority of matches being played behind closed doors we can be satisfied with performances and we reached our 6th successive Premiership final and eventually lost to Harlequins by the narrowest of margins.
As members will know, the Sandy Park Conference and Banqueting business was also severely impacted by COVID and was effectively closed for business during 2020/21.
There was very little government support for the hospitality industry other than rates relief and the furlough scheme and we made full use of the latter to protect the salaries of our staff whilst they were unable to work. No grant income was available to us but we were able to take advantage of various Government supported loans but these will need to be repaid over the years ahead.
Looking forward, and subject only to further Covid restrictions, the Board have confidence in the future with the 2021/22 rugby season having commenced with full crowds. The Sandy Park conference and banqueting, has re-opened and business to date is ahead of budget.
Exeter Rugby Club Limited
(Registration number: 03320422)
Strategic Report for the Year Ended 30 June 2021
Principal risks and uncertainties
The board of directors undertake a regular review of the company and they have identified that the principal risks faced by Exeter Rugby Club Limited for both the rugby and conferencing and banqueting aspects of the business relate to competition.
Approved by the
.........................................
Director
Exeter Rugby Club Limited
(Registration number: 03320422)
Directors' Report for the Year Ended 30 June 2021
The directors present their report and the financial statements for the year ended 30 June 2021.
Directors of the company
The directors who held office during the year were as follows:
The following director was appointed after the year end:
Financial instruments
Objectives and policies
The company's principal financial instruments comprise the bank balance, trade creditors, trade debtors, hire purchase and finance lease agreements and intercompany loans. The main purpose of these instruments is to raise funds for the company's operations.
Price risk, credit risk, liquidity risk and cash flow risk
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of the bank balance, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at variable rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest.
The hire purchase and finance lease agreements are provided by financial institutions at fixed and variable rates of interest. The company ensures that there are sufficient funds to meet these requirements.
Trade debtors are managed in respect of credit and cash flow by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditor's liquidity risk is managed by ensuring that sufficient funds are available to meet amounts due.
Exeter Rugby Club Limited
(Registration number: 03320422)
Directors' Report for the Year Ended 30 June 2021
Employment of disabled persons
The company gives full consideration to applications for employment from disabled persons where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion. Where existing employees become disabled, it is the company’s policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim.
Employee involvement
The company operates a framework for employee information and consultation. Exeter Rugby Club Limited operates a policy of providing employees with information about the company as well as encouraging its employees to present their suggestions and views on the company's performance. Regular meetings are held between department managers and employees to allow a free flow of information and ideas.
Future developments
The directors do not envisage the principal activity of the company changing within the foreseeable future however will continue to look for further growth and advancement opportunities.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
.........................................
Director
Exeter Rugby Club Limited
(Registration number: 03320422)
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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 and in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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.
Exeter Rugby Club Limited
(Registration number: 03320422)
Independent Auditor's Report to the Members of Exeter Rugby Club Limited
Opinion
We have audited the financial statements of Exeter Rugby Club Limited (the 'company') for the year ended 30 June 2021, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• |
give a true and fair view of the state of the company's affairs as at 30 June 2021 and of its loss for the year then ended; |
• |
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• |
have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Emphasis of matter
We draw your attention to Note 2 to the financial statements which describes the going concern accounting policy.
Our opinion is not modified in respect to this matter.
Other information
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.
Exeter Rugby Club Limited
(Registration number: 03320422)
Independent Auditor's Report to the Members of Exeter Rugby Club Limited
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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
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. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], 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.
Exeter Rugby Club Limited
(Registration number: 03320422)
Independent Auditor's Report to the Members of Exeter Rugby Club Limited
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
• |
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
• |
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience; |
• |
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental, fire safety, Licensing Act 2003 and health and safety legislation; |
• |
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing licenses, certificates and relevant correspondence including the inspection of legal correspondence; and |
• |
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• |
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
• |
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we:
• |
performed analytical procedures to identify any unusual or unexpected relationships; |
• |
tested journal entries to identify unusual transactions; |
• |
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
Exeter Rugby Club Limited
(Registration number: 03320422)
Independent Auditor's Report to the Members of Exeter Rugby Club Limited
• |
investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• |
agreeing financial statement disclosures to underlying supporting documentation; |
• |
enquiring of management as to actual and potential litigation and claims; and |
• |
reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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.
......................................
For and on behalf of
1 Colleton Crescent
Devon
EX2 4DG
Exeter Rugby Club Limited
(Registration number: 03320422)
Profit and Loss Account for the Year Ended 30 June 2021
Note |
2021 |
2020 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross loss |
( |
( |
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating loss |
( |
( |
|
Interest payable and similar expenses |
( |
( |
|
Loss before tax |
( |
( |
|
Taxation |
|
|
|
Loss for the financial year |
( |
( |
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Statement of Comprehensive Income for Year Ended 30 June 2021
2021 |
2020 |
|
Loss for the year |
( |
( |
Total comprehensive income for the year |
( |
( |
Exeter Rugby Club Limited
(Registration number: 03320422)
Balance Sheet as at 30 June 2021
Note |
2021 |
2020 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
( |
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
- |
( |
|
Net (liabilities)/assets |
( |
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
( |
|
|
Total equity |
( |
|
Approved and authorised by the
.........................................
Director
Exeter Rugby Club Limited
(Registration number: 03320422)
Statement of Changes in Equity for the Year Ended 30 June 2021
Share capital |
Profit and loss account |
Total |
|
At 1 July 2020 |
|
|
|
Loss for the year |
- |
( |
( |
Total comprehensive income |
- |
( |
( |
At 30 June 2021 |
|
( |
( |
Share capital |
Profit and loss account |
Total |
|
At 1 July 2019 |
|
|
|
Loss for the year |
- |
( |
( |
Total comprehensive income |
- |
( |
( |
At 30 June 2020 |
|
|
|
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Summary of disclosure exemptions
The Company has taken advantage of the following exemptions on the basis that the information is contained within the consolidated financial statements:
i. from preparing a statement of cash flows;
ii. from the financial instrument disclosures, required under FRS 102;
iii. from disclosing the company key management personnel compensation, as required by FRS 102 paragraph 33.7.
Name of parent of group
These financial statements are consolidated in the financial statements of Exeter Rugby Group PLC.
The financial statements of Exeter Rugby Group PLC may be obtained from Sandy Park Stadium, Sandy Park Way, Exeter, Devon, EX2 7NN.
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
Going concern
Bearing in mind the difficulties under which the business operated in 2020/21 due to Covid-19 the directors have taken all reasonable steps to mitigate the effects on financial performance. COVID-19 resulted in very few matches being played with supporters in attendance and those that were suffered from severe Government imposed restrictions. In addition the conference and banqueting business was also severely impacted by restrictions and was effectively closed for business during 2020/21. As such, income for the year ended 30 June 2021 has decreased dramatically despite the measures put in place.
At 30 June 2021 the company has net current liabilities of £6.9m (2020 - £0.6m) which includes a total of £2.9m (2020 - £6.3m) of cash at bank. The company has an overall net liability position of £5.7m compared to net assets of £0.6m in the prior year. Current liabilities include £3.8m of deferred income which does not result in a further outflow of cash to settle but will unwind as services are provided. Current liabilities also include £2.2m due to related parties for which there is no formal repayment schedule. In addition the parent company Exeter Rugby Group PLC have confirmed that they will provide financial support if required to ensure the company has adequate resources to meet its liabilities as they fall due. Finally, social distancing restrictions have now been lifted and as such games, as well as hospitality events can now take place with no limits to capacity. As such the directors have forecast that the Company will return to profitability and a positive net cash flow position over the next 18 to 24 months.
Taking the above into account the directors believe it is appropriate to prepare the financial statements on a going concern basis.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities as described below.
i) Match day tickets - Income is deferred and recognised once the game has taken place.
ii) Season tickets, Corporate Boxes, VIP Memberships – Income is deferred and recognised over the season to which it relates. The income is released on a game by game basis.
iii) Sponsorship – Season long sponsorship is deferred and recognised over the season to which it relates. The income is released on a game by game basis. Match day sponsorship is deferred and recognised once the game has taken place.
iv) Conferences and Events – Income is recognised once the event has occurred.
v) Premier Rugby Limited Central Income – Income is recognised upon receipt, unless contingent upon specific criteria or a future event.
vi) Donation income – Income from donations is recognised in the period in which the donation is confirmed by the donor.
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
Government grants
Government grant funding in relation to revenue expenditure is recognised as other operating income in the period in which the amounts are receivable and conditions attached to the grant have been met.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
10%/15% straight line basis |
Motor vehicles |
10% straight line basis |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
2021 |
2020 |
|
Rugby income |
|
|
Sandy Park income |
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2021 |
2020 |
|
Government grants |
|
|
Miscellaneous other operating income |
|
- |
|
|
Operating loss |
Arrived at after charging/(crediting)
2021 |
2020 |
|
Depreciation expense |
|
|
Operating lease expense - property |
|
|
Operating lease expense - other |
|
|
Loss on disposal of property, plant and equipment |
|
- |
Interest payable and similar expenses |
2021 |
2020 |
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest expense on other finance liabilities |
|
- |
|
|
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
Staff costs |
The aggregate payroll costs were as follows:
2021 |
2020 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2021 |
2020 |
|
Players and team management |
|
|
Administration and support |
|
|
Operational |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was £20,000 (2020: £16,666).
Auditors' remuneration |
2021 |
2020 |
|
Audit of the financial statements |
|
|
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
Taxation |
Tax charged/(credited) in the income statement
2021 |
2020 |
|
Current taxation |
||
UK corporation tax adjustment to prior periods |
( |
( |
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Arising from changes in tax rates and laws |
( |
|
Total deferred taxation |
( |
|
Tax receipt in the income statement |
( |
( |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2020 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2021 |
2020 |
|
Loss before tax |
( |
( |
Corporation tax at standard rate |
( |
( |
UK deferred tax (credit)/expense relating to changes in tax rates or laws |
( |
|
Increase in UK and foreign current tax from adjustment for prior periods |
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
Tax increase arising from group relief |
|
|
Total tax credit |
( |
( |
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
Deferred tax
Deferred tax assets and liabilities
2021 |
Asset / |
Difference between accumulated depreciation and capital allowances |
( |
Other timing differences |
|
Tax losses |
|
|
2020 |
Asset / |
Difference between accumulated depreciation and capital allowances |
( |
Other timing differences |
|
Tax losses |
- |
( |
The directors have considered the deferred tax assets and liabilities and concluded that due to the level of reversal being dependant on events which are not yet known, it is not possible to accurately state the estimated amounts which will reverse within the next 12 months. However it is considered that the vast majority of the balance will reverse over a period greater than 12 months after the yearend.
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
Tangible assets |
Fixtures, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
|||
At 1 July 2020 |
|
|
|
Additions |
|
- |
|
Disposals |
( |
- |
( |
At 30 June 2021 |
|
|
|
Depreciation |
|||
At 1 July 2020 |
|
|
|
Charge for the year |
|
|
|
Eliminated on disposal |
( |
- |
( |
At 30 June 2021 |
|
|
|
Carrying amount |
|||
At 30 June 2021 |
|
|
|
At 30 June 2020 |
|
|
|
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2021 |
2020 |
|
Motor vehicles |
430,593 |
483,635 |
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
Stocks |
2021 |
2020 |
|
Finished goods and goods for resale |
|
|
Debtors |
Note |
2021 |
2020 |
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments and accrued income |
|
|
|
Deferred tax assets |
|
- |
|
Corporation tax asset |
|
|
|
|
|
||
Less non-current portion |
( |
- |
|
Total current trade and other debtors |
|
|
Details of non-current trade and other debtors
£1,404,545 (2020 -£Nil) of Deferred tax assets is classified as non current.
Creditors |
Note |
2021 |
2020 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts due to related parties |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other creditors |
|
|
|
Accruals and deferred income |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 July 2020 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 30 June 2021 |
- |
- |
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling
£
Share capital |
Allotted, called up and fully paid shares
2021 |
2020 |
|||
No. |
£ |
No. |
£ |
|
|
|
2 |
|
2 |
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
Loans and borrowings |
2021 |
2020 |
|
Non-current loans and borrowings |
||
Hire purchase contracts |
|
|
2021 |
2020 |
|
Current loans and borrowings |
||
Bank overdrafts |
|
|
Hire purchase and finance lease liabilities |
|
|
|
|
The amounts due under finance leases and hire purchase contracts are secured on the individual assets to which they relate.
Obligations under leases and hire purchase contracts |
Hire purchase and finance leases
The obligations due under finance leases and hire purchase contracts are secured on the individual assets to which they relate.
The total of future minimum lease payments is as follows:
2021 |
2020 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
|
Less: finance charges allocated to future periods |
(26,838) |
(31,917) |
331,901 |
396,315 |
Operating leases
The total of future minimum lease payments is as follows:
2021 |
2020 |
|
Not later than one year |
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
Related party transactions |
Income and receivables from related parties
2021 |
Other group entities |
Other related parties |
Sale of goods |
|
|
Amounts receivable from related party |
|
|
2020 |
Other group entities |
Other related parties |
Sale of goods |
|
|
Amounts receivable from related party |
|
|
Expenditure with and payables to related parties
2021 |
Other related parties |
Purchase of goods |
|
Amounts payable to related party |
|
2020 |
Other related parties |
Purchase of goods |
|
Leases |
|
|
|
Loans from related parties
2021 |
Other group entities |
Total |
At start of period |
|
|
Advanced |
|
|
At end of period |
|
|
2020 |
Other group entities |
Total |
Advanced |
|
|
At end of period |
|
|
Exeter Rugby Club Limited
(Registration number: 03320422)
Notes to the Financial Statements for the Year Ended 30 June 2021
Parent and ultimate parent undertaking |
The company's immediate parent is
The most senior parent entity producing publicly available financial statements is
The ultimate controlling party is
Contingent liabilities |
There is an unlimited cross guarantee in place between Exeter Rugby Club Limited and Exeter Rugby Group PLC in favour of Barclays Bank PLC.