Company Registration No. SC149117 (Scotland)
INVERNESS THISTLE AND CALEDONIAN F. C. LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2020
PAGES FOR FILING WITH REGISTRAR
INVERNESS THISTLE AND CALEDONIAN F. C. LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
INVERNESS THISTLE AND CALEDONIAN F. C. LIMITED
BALANCE SHEET
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
3
2,500
Tangible assets
4
2,492,224
2,543,106
2,492,224
2,545,606
Current assets
Stocks
30,608
33,209
Debtors
5
144,208
392,374
Cash at bank and in hand
358,298
198,326
533,114
623,909
Creditors: amounts falling due within one year
6
(1,447,824)
(1,851,305)
Net current liabilities
(914,710)
(1,227,396)
Total assets less current liabilities
1,577,514
1,318,210
Creditors: amounts falling due after more than one year
7
(45,984)
(17,922)
Provisions for liabilities
9
(94,611)
(114,796)
Net assets
1,436,919
1,185,492
Capital and reserves
Called up share capital
10
4,900,370
4,440,370
Share premium account
69,406
69,406
Revaluation reserve
2,171,376
2,223,810
Other reserves
11
100,000
Profit and loss reserves
(5,804,233)
(5,548,094)
Total equity
1,436,919
1,185,492
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
INVERNESS THISTLE AND CALEDONIAN F. C. LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 31 May 2021 and are signed on its behalf by:
James R Morrison (Chairman)
Director
Company Registration No. SC149117
INVERNESS THISTLE AND CALEDONIAN F. C. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2020
- 3 -
1
Accounting policies
Company information
Inverness Thistle and Caledonian F. C. Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Caledonian Stadium, Stadium Road, Inverness, IV1 1FF.
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, modified to include the revaluation of certain tangible fixed assets. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has reported a loss before tax of £328,758 for the year ended 31 May 2020, and has a reported net asset position of £1,436,919. The company has net debts of £703,836. The company remains reliant on player trading, new funding streams and the continued financial support backing of its directors, shareholders and supporters. Forecasts prepared by the directors for the season to May 2022, which recognise the ongoing challenges faced by the company in respect of the Covid-19 pandemic and rely on certain factors and assumptions, indicate that the company can meet its liabilities as they fall due over the next 12 months. These projections are reliant on new income streams; in particular from contracted entertainment events and commercial parking income to support annual revenue shortfalls and footballing operating losses. The directors are confident that additional income sources, combined with operational costs savings, and certain activities being managed through Inverness Caledonian Thistle Community Development, will secure the financial viability of the company and significantly reduce any reliance on loan funding to allow the company to meet its debts as they fall due.
The directors are satisfied that the assets and liabilities are recorded on the basis that the company will be able to realise its assets and discharge its liabilities in the normal course of business. Accordingly, the directors have considered a period of 12 months from the approval date of these financial statements and deem it appropriate to prepare the financial statements on a going concern basis.
1.3
Turnover
Turnover represents income receivable, net of VAT, from football and related commercial activities. Gate and other match day revenues are recognised over the period of the football season as games are played. Merit awards are accounted for only when known at the end of the season. The fixed element of broadcasting revenues is recognised over the duration of the football season whilst facility fees for live coverage or highlights are taken when earned. Sponsorship and similar commercial income is recognised over the duration of the respective contracts.
1.4
Transfer and signing on fees
Fees payable to other Football Clubs on the transfer of players' registrations are capitalised and amortised over the period of the respective players'/managers' initial contracts. Fees receivable from other Football Clubs on the transfer of players'/managers' registration are reflected in the
statement of comprehensive income
, net of any unamortised fees payable on registration, in the accounting period in which the transfer takes place. Signing on fees are charged to the
statement of comprehensive income
in the accounting period in which they are payable.
INVERNESS THISTLE AND CALEDONIAN F. C. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
1
Accounting policies
(Continued)
- 4 -
1.5
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.
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:
Tenants improvements
5% - 20% Straight line
Leasehold property
4% Straight line
Plant and equipment
8% - 50% Straight line/Reducing balance basis
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
.
Assets whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation. The fair value of the assets has been determined using the depreciated replacement cost method. Leasehold properties are included at deemed cost based on the fair value of the assets on their transfer to the company at 31 May 2018.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises
the invoiced price of goods and materials on a first in first out basis.
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
and ot
her short-term liquid investments with original maturities of three months or less
.
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.
INVERNESS THISTLE AND CALEDONIAN F. C. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
1
Accounting policies
(Continued)
- 5 -
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.
Basic financial liabilities
Basic financial liabilities, including creditors 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
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
1.11
Taxation
Current tax
On the basis of losses incurred, there is no current tax charge to be provided for in the year.
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.
Deferred tax is calculated at the rates that are expected to arise in the period when the liability is settled. 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.
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 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.
1.12
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.
1.13
Retirement benefits
The company makes contributions into the personal pension funds of certain employees. Contributions payable are charged to the profit and loss account in the year they are payable.
INVERNESS THISTLE AND CALEDONIAN F. C. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
1
Accounting policies
(Continued)
- 6 -
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.15
Government grants
Government grants relating to turnover
and the Coronavirus job retention scheme
are recognised as income over the periods when the related costs are incurred
.
Grants relating to an asset that specifies performance conditions is recognised in income when the performance conditions are met. Where such grants do not specify performance conditions, it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors who are not remunerated) employed by the company during the year was 108
(2019 - 133).
INVERNESS THISTLE AND CALEDONIAN F. C. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 7 -
3
Intangible fixed assets
Transfer and signing on fees
£
Cost
At 1 June 2019
10,000
Disposals
(10,000)
At 31 May 2020
Amortisation and impairment
At 1 June 2019
7,500
Amortisation charged for the year
2,500
Disposals
(10,000)
At 31 May 2020
Carrying amount
At 31 May 2020
At 31 May 2019
2,500
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 June 2019
3,077,846
351,553
3,429,399
Additions
120,328
257
120,585
At 31 May 2020
3,198,174
351,810
3,549,984
Depreciation and impairment
At 1 June 2019
601,584
284,709
886,293
Depreciation charged in the year
157,007
14,460
171,467
At 31 May 2020
758,591
299,169
1,057,760
Carrying amount
At 31 May 2020
2,439,583
52,641
2,492,224
At 31 May 2019
2,476,262
66,844
2,543,106
INVERNESS THISTLE AND CALEDONIAN F. C. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
4
Tangible fixed assets
(Continued)
- 8 -
Included within land and buildings are the pitch and stands which were previously transferred to the ownership of the company at £nil cost and included within land and buildings at fair value. These assets were valued at £2,300,000 at October 2018 on a depreciated replacement cost basis by Allied Surveyors Scotland, an independent firm of chartered surveyors. The directors are also satisfied that a value of £2,300,000 is an appropriate reflection of the carrying value of these assets at 31 May 20
20
and this amount has been recorded within the revaluation reserve accordingly.
Land and buildings also includes floodlights. The floodlights were valued at June 2015 on a depreciated replacement cost basis by the directors at £80,000.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2020
2019
£
£
Cost
152,520
152,520
Accumulated depreciation
(152,520)
(152,520)
Carrying value
-
-
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
15,327
32,875
Other debtors
128,881
359,499
144,208
392,374
6
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
47,532
141,399
Taxation and social security
287,096
139,674
Other creditors
1,113,196
1,570,232
1,447,824
1,851,305
Net obligations under hire purchase contracts amount to £18,303 (2019 - £29,507) and are included in other creditors. These are secured over the assets to which the agreements relate.
INVERNESS THISTLE AND CALEDONIAN F. C. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 9 -
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Obligations under finance leases
5,426
17,922
Government grants
40,558
45,984
17,922
Net obligations under hire purchase contracts amount to £5,426 (2019 - £17,922). These are secured over the assets to which the agreements relate.
8
Provisions for liabilities
2020
2019
£
£
Deferred tax liabilities
9
94,611
114,796
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2020
2019
Balances:
£
£
Tax losses
(342,389)
(276,204)
Revaluations
437,000
391,000
94,611
114,796
2020
Movements in the year:
£
Liability at 1 June 2019
114,796
Credit to profit or loss
(66,185)
Charge to other comprehensive income
46,000
Liability at 31 May 2020
94,611
INVERNESS THISTLE AND CALEDONIAN F. C. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 10 -
10
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
4,000,367 Ordinary shares of £1 each
4,000,367
3,540,367
600,000 "A" Ordinary shares of £1 each
600,000
600,000
300,000 "B" Ordinary shares of £1 each
300,000
300,000
3 "C" Ordinary shares of £1 each
3
3
4,900,370
4,440,370
During the year the company issued 460,000 £1 ordinary shares at par.
The "A", "B" and "C" ordinary shares rank pari passu in all respects with the ordinary shares, except that the holders of the "A", "B" and "C" shares have the right to receive notice of, attend and speak at shareholders meetings but do not have the right to vote at such meetings, save in relation to the appointment of representative directors. With regard to voting rights the ordinary shares held by the Inverness Caledonian Thistle Supporters Society Limited the "Supporters Trust", have enhanced rights for as long as they are held by the Supporters Trust.
11
Other reserves
Other reserves represent a capital contribution following a loan from a shareholder being discharged during the year ended 31 May 2020.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Jamie Waugh.
The auditor was Johnston Carmichael LLP.
13
Capital commitments
Amounts contracted for but not provided in the financial statements:
2020
2019
£
£
Acquisition of tangible fixed assets
-
53,900
INVERNESS THISTLE AND CALEDONIAN F. C. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 11 -
14
Related party transactions
The following amounts were outstanding at the reporting end date:
2020
2019
Amounts due to related parties
£
£
Key management personnel
735,000
795,000
During the year, amounts due to key management personnel of £355,000 were converted into ordinary share capital.
15
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
2,205,000
2,289,000
2020-05-31
2019-06-01
false
31 May 2021
CCH Software
CCH Accounts Production 2021.100
No description of principal activity
This audit opinion is unqualified
Alan R McPhee
Graham Rae (Chairman to 24/09/2019)
Liam J Dalgarno
Gordon Fyfe
James R Morrison (Chairman from 24/09/2019)
David J Cameron
Gordon A M Munro
Ian A MacDonald, LLB
2021-05-31
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