Annual Report 2015

Norwich City Football Club PLC

Annual Report 2015

for the year ended 30 June 2015

NORWICH CITY FOOTBALL CLUB PLC

ANNUAL REPORT

For the year ended 30 June 2015

Board of Directors:

A J Bowkett (Chairman)

M M Foulger (Deputy Chairman)

D McNally (Chief Executive)

S J Fry

S J Phillips

Ms D A Smith

E M S Wynn Jones

Company Secretary:

J Arnall (Head of Legal & Football Services)

Other Senior Executives:

A Neil (Football Manager)

A Blofeld (Club Secretary)

Company Number: 154044

Registered Office:

Carrow Road

Norwich

NR1 1JE

Auditor:

BDO LLP

55 Baker Street

London

W1U 7EU

NORWICH CITY FOOTBALL CLUB PLC

ANNUAL REPORT

For the year ended 30 June 2015

INDEX

PAGE

Strategic Report 1 - 2

Report of the Directors 3 - 5

Independent auditor’s report 6

Consolidated profit and loss account 7

Consolidated balance sheet 8

Company balance sheet 9

Consolidated cash flow statement 10

Notes to the annual report 11 - 29

NORWICH CITY FOOTBALL CLUB PLC

STRATEGIC REPORT

The Directors present the Group’s Strategic Report for the year ended 30 June 2015.

Principal activities

The Group's principal activity is that of a professional football club (the “Club”). The principal activities of the

subsidiary undertakings are shown in note 14.

Key performance indicators

The Club uses a variety of performance measures in order to monitor and manage the business effectively. These are

both financial and non-financial measures and include the following key performance indicators (KPIs):

2015 2014

Average league attendance (number) 26,368 26,805

Season tickets sold (number) 20,773 20,431

Player wage costs as a percentage of turnover (%) 67 40

Cash balance at the year end (£'000) 1,902 6,857

Group operating (loss)/profit excluding player trading (£'000) (9,204) 26,115

Business review and future outlook

2014/15 has been a very successful season on the pitch for the Club, culminating in an immediate return to the

Premier League following relegation to the Championship at the end of the previous season.

Turnover in 2014/15 was £42.2m lower than the prior year driven mainly by a £39.7m fall in broadcasting revenue

following relegation to the Championship. This reduction in turnover had an adverse impact on operating

profitability in 2014/15 compared to the prior year. However, the operating loss prior to player trading in 2014/15 of

£9.2m was primarily impacted by a significant proportion of performance related salary costs that were conditional

on a Premier League return.

The net cash outflow of £5.0m in 2014/15 is primarily impacted by a net payment of £3.2m for player trading which

is a significant reduction on the net £24.0m in the prior year. This reduction was necessary because of the lower

levels of cash inflows from operating activities in 2014/15 (£0.6m) compared to 2013/14 (£24.9m) as a result of the

Club’s relegation to the Championship. In addition, in 2014/15 we paid corporation tax of £2.4m in relation to the

prior year.

The Club’s future strategy is to invest all profits into the playing squad to maximise the chances of becoming a

sustainable Premier League Club. This in turn will allow the consideration of longer term investment projects

centred on both our training facilities at Colney and at Carrow Road itself.

Principal business risk management objectives and policies

The key potential business risks for the Club’s Board to manage are as follows:

• first team performance and the direct impact on league status and position and ultimately revenue generation;

• recruitment and retention of key colleagues;

• supporter attendance levels at first team matches;

• negotiation of key commercial contracts;

• rules and regulations of the applicable football governing bodies;

• Health & Safety considerations arising from operating a match day venue; and

• cash management in line with agreed facility limits.

Page 1

NORWICH CITY FOOTBALL CLUB PLC

STRATEGIC REPORT

The Board meets regularly to monitor these risks and delegates responsibility for operational risk to the Chief

Executive and senior management team. First team performance can have a significant impact on most of the other

key risk areas, so investment in the playing squad continues to be our priority. Key performance indicators in

relation to both football and commercial areas of the business are measured and reviewed weekly with corrective

action taken where appropriate.

Going concern

In assessing the appropriateness of the going concern assumption, the Directors have produced detailed cash flow

projections. These cash flow projections, when considered in conjunction with the Group’s existing banking

facilities, demonstrate that the Group will have sufficient working capital for the foreseeable future.

The Directors have therefore concluded that it is appropriate for the financial statements to be prepared on the going

concern basis.

BY ORDER OF THE BOARD

D McNally

Director

7 October 2015

The Directors present their report and the consolidated financial statements for the year ended 30 June 2015.

Page 2

NORWICH CITY FOOTBALL CLUB PLC

REPORT OF THE DIRECTORS

Information included in the Strategic Report

Under S414c(ii) of the Companies Act 2006, the following information is included in the Strategic Report:

• details of the principal activity of the Group;

• a review of the business including developments in the year, its performance and current position;

• a summary of the principal risks and uncertainty affecting the position; and

• information relating to the KPIs monitored by the Club.

Results and dividends

The loss for the year after taxation amounted to £5,158,000 (2014: profit of £6,740,000).

A dividend on the 'A' preference shares of £507 (2014: £507) and on the 'B' preference shares of £57,538

(2014: £57,538) has been accrued for the year ended 30 June 2015 (note 10).

Directors

The Directors of the Company who served during the year ended 30 June 2015 and their beneficial interests in the

Company's issued share capital were:

Ordinary shares

of £1 each

'B' preference shares

of £1 each

30 June 2015 1 July 2014 30 June 2015 1 July 2014

A J Bowkett 1,117 1,117 - -

M M Foulger 98,200 98,200 4,400 4,400

D McNally 100 100 - -

S J Fry 300 300 - -

S J Phillips 100 100 - -

Ms D A Smith 100 100 - -

E M S Wynn Jones 100 100 - -

Ms D A Smith and E M S Wynn Jones (jointly) 327,309 327,309 3,025 3,025

None of the Directors had a beneficial interest in the 'A' preference shares of £1 each.

Directors’ and officers’ liability insurance

During the year ended 30 June 2015 the Group maintained liability insurance for its Directors and Officers, as

permitted by Section 233 of the Companies Act 2006.

Share capital

During the period 25 (2014: 22) £1 ordinary shares were issued at a weighted average cost of £100 each (2014:

£91).

Principal financial risk management objectives and policies

The Group aims to minimise financial risk and prepares 18 month rolling budgets and monitors actual performance

against these budgets. In addition the Group prepares rolling cashflow forecasts to make sure that cash is managed

effectively. As part of the strategy, the Group has implemented a number of initiatives to ensure that it has sufficient

cash resources to meet its day to day requirements (see going concern section on page 11).

The financial assets that expose the Group to financial risk include cash and trade debtors. Cash is held in bank

accounts with Barclays Bank PLC. Trade debtors are monitored closely to minimise the risk of bad debts and

amounts due from other clubs are covered by specific football creditor rules that help minimise these risks. The

Directors are of the opinion that the risks associated with the Group’s financial instruments are well managed.

Page 3

NORWICH CITY FOOTBALL CLUB PLC

REPORT OF THE DIRECTORS

Charitable donations

In the year to 30 June 2015, the Club maintained its core commitment to using the power of football to reach out to

groups and individuals in our community who need help and support.

The Club worked very closely with Official Charity partner Norwich City Community Sports Foundation (CSF) and

helped 31,000 individuals through participation in a number of different sporting initiatives in community settings.

Examples included helping homeless and disadvantaged people to get back on their feet through the Street Life

Soccer programme and our continued commitment to supporting our vibrant Down’s Syndrome Canaries and

Norwich City Powerchair teams.

Working together with the charity steering group, the Club has helped worthy causes large and small throughout our

local area to fund-raise through the distribution of 209 signed pennants, with ground collections, and specific

charitable supported events organised through the Club and its official partners.

The Club provided ground collections and public relations support to help raise cash for and awareness of groups

such as the Royal British Legion, BREAK, Scotty’s Little Soldiers, Asperger East Anglia, British Red Cross and

Norwich & Central Norfolk Cruise Bereavement.

In May 2015, the Club announced that three local charities (Nelson’s Journey, Norfolk Accident Rescue Service,

and Age UK Norwich) were set to benefit from the Community Sports Foundation’s first 10K city centre race, Run

Norwich. Money raised from the event also benefited the Foundation’s programmes for disabled and disadvantaged

people in Norfolk.

The Club has also supported the awareness of many national campaigns such as Sport Relief, Kick It Out, Show

Racism the Red Card and the Poppy Appeal, among others and the Club’s professional players have contributed by

attendance at community led initiatives – with a total of 179 community and personal appearances made by our

players during the 2014/15 season.

Colleague involvement

Within the bounds of commercial confidentiality, information is disseminated to all colleagues about matters that

affect the progress of the Group and are considered to be of interest and concern to them as colleagues.

Disabled colleagues

The Group gives full consideration to applications for employment from disabled people where candidate aptitude

and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to

disabled colleagues for training, career development, and promotion.

Where existing colleagues become disabled, the Group’s policy is to provide continuing employment wherever

practicable in the same or alternative position and to provide training to achieve this aim.

Payments to suppliers

The Group's policy in relation to all suppliers is to agree the terms of payment when agreeing the transaction and to

abide by those terms, provided it is satisfied that the supplier has provided the goods or service in accordance with

the agreed terms and conditions. The Group does not follow any code or standard of payment practice. The ratio

expressed in days between amounts invoiced to the Group by its suppliers in the year and the amounts owed to its

trade creditors at the end of the year was 53 (2014: 49) days.

Page 4

REPORT OF THE DIRECTORS

NORWICH CITY FOOTBALL CLUB PLC

REPORT OF THE DIRECTORS

Asset values

Accounting Standards require the Club to value its assets using specific criteria. At the year end there were 30

Asset players values (2014: 29) for which the cost of their player registration has been capitalised and is still being amortised

Asset values

over the period of the respective players' contracts. The combined net book value of these players at 30 June 2015

Accounting

Asset values Standards require the Club to value its assets using specific criteria. At the year end there were 30

was £25.6 million Standards (2014: require £25.9 the million). Club The to value Carrow its Road assets stadium using specific and other criteria. land and At buildings the year are end currently there were stated 30

players (2014: 29) for which the cost of their player registration has been capitalised and is still being amortised

at players Accounting £27.1 (2014: million Standards 29) (2014: for which £28.8 require million), the the cost Club of being their to valued player its on registration assets a historical using has cost specific been basis capitalised criteria. or an adopted At and the is valuation year still end being as there detailed amortised were in 30

over the period of the respective players' contracts. The combined net book value of these players at 30 June 2015

note over players the 13, period less (2014: accumulated of 29) the for respective which depreciation. the players' cost of In contracts. their opinion player The registration combined of the Directors, net has book been the value capitalised recoverable of these and amount players is still at of being 30 the June land amortised 2015 and

was £25.6 million (2014: £25.9 million). The Carrow Road stadium and other land and buildings are currently stated

buildings was over £25.6 the at million period 30 June of (2014: the 2015 respective £25.9 would million). exceed players' The the contracts. Carrow book value Road The included combined stadium in and net the other book financial land value and statements. of buildings these players A are regular currently at 30 valuation June stated 2015

at £27.1 million (2014: £28.8 million), being valued on a historical cost basis or an adopted valuation as detailed in

undertaken at was £27.1 £25.6 million by million the (2014: Club’s (2014: £28.8 insurers £25.9 million), million). during being the The period valued Carrow supports on Road historical this stadium opinion. cost and basis other or land adopted and buildings valuation are currently as detailed stated in

note 13, less accumulated depreciation. In the opinion of the Directors, the recoverable amount of the land and

note at £27.1 13, less million accumulated (2014: £28.8 depreciation. million), being In the valued opinion on of a historical the Directors, cost basis the recoverable or an adopted amount valuation of the as land detailed and in

Post buildings balance at 30 sheet June events 2015 would exceed the book value included in the financial statements. A regular valuation

buildings note 13, at less 30 accumulated June 2015 would depreciation. exceed the In the book opinion value included of the Directors, in the financial the recoverable statements. amount regular of the valuation land and

Details undertaken by the Club’s insurers during the period supports this opinion.

undertaken buildings of post by at 30 the balance June Club’s sheet 2015 insurers events would during are exceed given the the period in book note supports 33 value to the included this financial opinion.

statements. the financial statements. A regular valuation

Statement Post undertaken balance

Post balance of by sheet

sheet Directors’ the events Club’s

events responsibilities

insurers during the period supports this opinion.

The Details

Details

Post Directors balance of post

of post are balance

balance

sheet responsible events sheet events

sheet events for preparing are given

are given the in note

in note Strategic 33 to

33 to Report the financial

the financial and the statements.

statements. Report of the Directors and the financial

Statement statements

Statement

Details of in of

post accordance Directors’

Directors’

balance sheet with responsibilities applicable

responsibilities

events are law given and in regulations. note 33 to the financial statements.

The Company Directors are responsible for preparing the Strategic Report and the Report of the Directors and the financial

The

Statement law

Directors

of requires

are

Directors’ the

responsible

responsibilities

Directors to prepare financial statements for each financial period. Under that law the

for preparing the Strategic Report and the Report of the Directors and the financial

Directors statements have in accordance elected to with prepare applicable financial law statements and regulations. in accordance with United Kingdom Generally Accepted

statements The Directors in accordance are responsible with applicable for preparing law and the regulations. Strategic Report and the Report of the Directors and the financial

Accounting Practice (United Kingdom Accounting Standards and applicable laws). Under company law the

Company statements law in requires accordance the with Directors applicable to prepare law and financial regulations. statements for each financial period. Under that law the

Directors Company must law requires not approve the Directors the financial to prepare statements financial unless statements they are satisfied for each that financial they give period. a true and Under fair that view law of the

Directors have elected to prepare financial statements in accordance with United Kingdom Generally Accepted

state Directors Company of affairs have law of elected requires the Company to the prepare Directors and financial Group to prepare and statements the financial profit accordance statements loss of the for with Company each United financial Kingdom and period. Group Generally for Under that that period. Accepted law In the

Accounting Practice (United Kingdom Accounting Standards and applicable laws). Under company law the

preparing Accounting Directors each have Practice of elected the Group (United to and prepare Kingdom Company financial Accounting financial statements statements, Standards in accordance the and Directors applicable with are United required laws). Kingdom to: Under Generally company law Accepted the

Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the

Directors Accounting must Practice not approve (United the financial Kingdom statements Accounting unless Standards they are and satisfied applicable that they laws). give Under true and company fair view law of the the

state • of select affairs suitable of the accounting Company policies and Group and and then the apply profit them or consistently; loss of the Company and Group for that period. In

state Directors of affairs must of not the approve Company the financial and Group statements and the unless profit or they loss are of satisfied the Company that they and give Group a true for and that fair period. view of In the

preparing each of the Group and Company financial statements, the Directors are required to:

preparing • state make of each affairs judgements of of the the Group Company and and accounting Company and Group estimates financial and that the statements, are profit reasonable or the loss Directors of and the prudent; Company are required and to: Group for that period. In

preparing select each suitable of the accounting Group and policies Company and financial then apply statements, them consistently; the Directors are required to:

• select state whether suitable applicable accounting UK policies Accounting and then Standards apply them have consistently; been followed, subject to any material departures

• • make disclosed select judgements suitable and explained accounting and accounting the policies financial estimates and statements; then that apply are them reasonable and consistently; and prudent;

make judgements and accounting estimates that are reasonable and prudent;

• • state prepare make whether judgements financial applicable and statements accounting UK Accounting on estimates the going Standards that concern are have reasonable basis been unless followed, and prudent; it is subject inappropriate to any to material presume departures that the

state whether applicable UK Accounting Standards have been followed, subject to any material departures

Group disclosed and and Company explained will in continue the financial business. statements; and

• disclosed state whether and explained applicable in the UK financial Accounting statements; Standards have been followed, subject to any material departures

• The Directors prepare disclosed are the and responsible financial explained statements for in keeping the financial on adequate the going statements; accounting concern and basis records unless that it are is sufficient inappropriate to show to presume and explain that the

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the

Company’s Group transactions and Company and will disclose continue with in reasonable business. accuracy at any time the financial position of the Company

• Group prepare and the Company financial will statements continue in on business. the going concern basis unless it is inappropriate to presume that the

and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also

The Directors Group are and responsible Company will for keeping continue adequate in business. accounting records that are sufficient to show and explain the

responsible The Directors for are safeguarding responsible the for assets keeping of the adequate Company accounting and hence records for taking that reasonable are sufficient steps to for show the and prevention explain and the

Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company

Company’s detection The Directors of transactions fraud are and responsible other and irregularities. disclose for keeping with reasonable adequate accounting accuracy at records any time that the are financial sufficient position to show of and the Company explain the

and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also

and Company’s enable them transactions to ensure and that disclose the financial with reasonable statements accuracy comply at with any time the Companies the financial Act position 2006. of They the are Company also

responsible In so far as each for safeguarding of the Directors the assets is aware: of the Company and hence for taking reasonable steps for the prevention and

responsible and enable for them safeguarding to ensure the that assets the of financial the Company statements and hence comply for with taking the reasonable Companies steps Act for 2006. the prevention They are and also

detection of fraud and other irregularities.

• detection responsible there of fraud is for no safeguarding relevant and other audit irregularities. the information assets of the of which Company the Group's and hence auditor for taking is unaware; reasonable and steps for the prevention and

In detection so far as of each fraud of the and Directors other irregularities. is aware:

• In so far the as Directors each of the have Directors taken all is aware: steps that they ought to have taken to make themselves aware of any relevant

• In so there audit far as is information each no relevant of the Directors and audit establish information aware: that of the which auditor the is Group's aware of auditor that information. is unaware; and

there is no relevant audit information of which the Group's auditor is unaware; and

• the Directors have taken all steps that they ought to have taken make themselves aware of any relevant

Financial • there

ORDER the

statements is no

Directors OF THE

are relevant

have BOARD

published audit

taken

on information

all

the

steps

company’s of

that they

website which

ought

in the accordance Group's auditor

to have taken

with

legislation unaware;

make themselves

in and United

aware

Kingdom

of any

governing

relevant

the

preparation audit and information dissemination and of to financial establish statements, that the auditor which may is aware vary from of that legislation information.

other jurisdictions. The maintenance

and

•

integrity

audit the

information Directors

the company’s

have and

website

taken to establish all

is the

steps

responsibility

that that the they auditor

ought

the

directors.

aware to have of that

The

taken

directors’

information. to make

responsibility

themselves

also

aware

extends

any

the

relevant

ongoing

integrity of audit the financial information statements and to contained establish therein. that the auditor is aware of that information.

BY ORDER OF THE BOARD

McNally

ORDER OF THE BOARD

Director

7 October 2015

D McNally

McNally

Director

Page 5

7 D October McNally 2015

Director October 2015

7 October 2015

Page 5 Page 5

Page Page 5

NORWICH CITY FOOTBALL CLUB PLC

INDEPENDENT AUDITORS REPORT

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NORWICH CITY FOOTBALL CLUB PLC

We have audited the financial statements of Norwich City Football Club PLC for the year ended 30 June 2015

which comprise the consolidated profit and loss account, the consolidated balance sheet, the Company balance

sheet, the consolidated cash flow statement and the related notes. The financial reporting framework that has been

applied in the preparation of the consolidated and parent Company financial statements is applicable law and United

Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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.

Respective responsibilities of Directors and auditors

As explained more fully in the statement of Directors’ responsibilities, the Directors are responsible for the

preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility

is to audit and express an opinion on the financial statements in accordance with applicable law and International

Standards on Auditing (UK and Ireland). Those standards require us to comply with the Financial Reporting

Council’s (FRC’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the FRC’s website at

www.frc.org.uk/auditscopeukprivate.

Opinion on financial statements

In our opinion:

• the financial statements give a true and fair view of the state of the Group’s and the parent Company’s affairs as

at 30 June 2015 and of the Group’s loss for the year then ended;

• the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted

Accounting Practice;

• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion 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.

Matters on which we are required to report by exception

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 by the parent Company, or returns adequate for our audit have

not been received from branches not visited by us; or

• the parent Company 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.

Ian Clayden (senior statutory auditor)

For and on behalf of BDO LLP, statutory auditor

London

7 th October 2015

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

Page 6

NORWICH CITY FOOTBALL CLUB PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 30 June 2015

Note

Operations

excluding

player

trading

Player

trading

2015

Total

2014

Total

£'000 £'000 £'000 £'000

Group turnover 2 52,165 - 52,165 94,345

Operating expenses 3 (62,836) (13,213) (76,049) (87,695)

Other operating income 4 1,467 - 1,467 1,157

Group operating (loss)/profit (9,204) (13,213) (22,417) 7,807

Gain on disposal of players' registrations 5 - 13,958 13,958 1,172

Share of operating profit in associate 8 - 8 7

Gain on loss of control of joint venture - - - 529

Group operating (loss)/profit

including share of associate and joint

venture (9,196) 745 (8,451) 9,515

Interest receivable and similar income 8 956 106

Interest payable and similar charges 9 (396) (351)

(Loss)/profit on ordinary activities before tax (7,891) 9.270

Tax on (loss)/profit on ordinary

activities 11 2,733 (2,530)

(Loss)/profit for the year 23 (5,158) 6,740

All operations are continuing.

There were no recognised gains or losses for the current or prior year other than the profits and losses stated above.

The accompanying accounting policies and notes form an integral part of these financial statements.

Page 7

NORWICH CITY FOOTBALL CLUB PLC

CONSOLIDATED BALANCE SHEET AT 30 JUNE 2015

Note 2015 2014

£'000 £'000 £'000 £'000

Fixed assets

Intangible fixed assets 12 25,571 25,936

Tangible fixed assets 13 28,947 30,538

Investment in associated undertaking 14 68 60

54,586 56,534

Current assets

Stocks 15 1,614 936

Debtors 16 19,685 9,312

Cash at bank and in hand 1,902 6,857

23,201 17,105

Creditors: amounts falling due within one

year 17 (55,661) (40,192)

Net current liabilities (32,460) (23,087)

Total assets less current liabilities 22,126 33,447

Creditors: amounts falling due after

more than one year 17 (2,054) (3,587)

Deferred grant income 18 (1,799) (1,887)

Provisions for liabilities 20 (1,673) (6,217)

Net assets 16,600 21,756

Capital and reserves

Called up equity share capital 21 617 617

Share premium account 22 10,730 10,728

Revaluation reserve 22 71 71

Capital redemption reserve 22 34 34

Profit and loss account 23 5,148 10,306

Shareholders' funds 24 16,600 21,756

The financial statements were approved by the board of Directors, signed and authorised for issue on 7 October

2015 and signed on its behalf by:

D McNally Director

The accompanying accounting policies and notes form an integral part of these financial statements.

Page 8

NORWICH CITY FOOTBALL CLUB PLC

COMPANY BALANCE SHEET AT 30 JUNE 2015

Company number 154044

Note 2015 2014

£'000 £'000 £'000 £'000

Fixed assets

Intangible fixed assets 12 25,571 25,936

Tangible fixed assets 13 29,158 30,749

Fixed asset investments 14 28 28

54,757 56,713

Current assets

Stocks 15 1,614 936

Debtors 16 19,585 9,210

Cash at bank and in hand 1,902 6,857

23,101 17,003

Creditors: amounts falling due within one

year 17 (55,867) (40,302)

Net current liabilities (32,766) (23,299)

Total assets less current liabilities 21,991 33,414

Creditors: amounts falling due after

more than one year 17 (2,054) (3,587)

Deferred grant income 18 (1,799) (1,887)

Provisions for liabilities 20 - (4,544)

Net assets 18,138 23,396

Capital and reserves

Called up equity share capital 21 617 617

Share premium account 22 10,730 10,728

Revaluation reserve 22 71 71

Capital redemption reserve 22 34 34

Profit and loss account 23 6,686 11,946

Shareholders' funds 24 18,138 23,396

The financial statements were approved by the board of Directors, signed and authorised for issue on 7 October

2015 and signed on its behalf by:

D McNally Director

The accompanying accounting policies and notes form an integral part of these financial statements.

Page 9

NORWICH CITY FOOTBALL CLUB PLC

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 30 June 2015

Note 2015 2014

£'000 £'000 £'000 £'000

Net cash inflow from operating activities 25 626 24,870

Dividends from associated undertakings - 50

Returns on investments and servicing of

finance 26 (18) (280)

Tax paid (2,389) (874)

Capital expenditure and financial

investment 26 (3,097) (27,299)

Net cash outflow before financing (4,878) (3,533)

Financing

Issue of shares 26 3 2

Decrease in debt 26 (80) (1,310)

(77) (1,308)

Decrease in cash during the year 27 (4,955) (4,841)

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET (DEFICIT)/FUNDS

For the year ended 30 June 2015

Note 2015 2014

£'000

Decrease in cash in the year 27 (4,955) (4,841)

Repayment of debt 27 80 1,310

Change in net (deficit)/funds resulting

from cash flows (4,875) (3,531)

Net funds at 1 July 2014 3,357 6,888

Net (deficit)/funds at 30 June 2015 27 (1,518) 3,357

The accompanying accounting policies and notes form an integral part of these financial statements.

Page 10

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

1 ACCOUNTING POLICIES

(a)

Basis of preparation of financial statements

The financial statements have been prepared in accordance with applicable law and United Kingdom

Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and under the historical

cost convention, as modified by the valuation of certain freehold land and buildings. In addition, the

financial statements have also been prepared in accordance with the document 'Financial Reporting Guidance

for Football Clubs' issued by The Football League, The FA Premier League and the FA.

(b)

(c)

(d)

Going concern

In assessing the appropriateness of the going concern assumption, the Directors have produced detailed cash

flow projections. These cash flow projections which, when considered in conjunction with the Group’s

existing banking facilities, demonstrate that the Group will have sufficient working capital for the foreseeable

future.

The Directors have therefore concluded that it is appropriate for the financial statements to be prepared on

the going concern basis.

Consolidated financial statements

The financial statements incorporate the financial statements of Norwich City Football Club PLC and its

subsidiary undertakings. The financial statements of all Group undertakings are made up to 30 June 2015. A

separate profit and loss account has not been included for Norwich City Football Club PLC by virtue of

Section 408 of the Companies Act 2006. The loss for the year ended 30 June 2015 relating to this Company

of £5,260,000 (2014: profit of £6,854,000) is included in the consolidated profit and loss account.

The associate holding in EventGuard Limited is consolidated using the equity method at 24.9% being the

Company shareholding in the associate.

Turnover

Turnover comprises net gate and ticket receipts, sports contracts, television and sponsorship revenue,

catering, shop, programme, lottery and rental income, excluding value added tax. Turnover is the total

amount excluding value added tax, receivable by the Group in the ordinary course of business. Net gate and

ticket receipts are recognised when the match is played; sports contracts, television and sponsorship revenue

are recognised over the contract or sponsorship period; rental income is recognised over the rental period and

all other income is recognised as it becomes receivable in line with the service provided.

(e)

Financial instruments

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar

debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are

presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are

included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return

on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial

liability then this is classed as an equity instrument. Dividends and distributions relating to equity

instruments are debited direct to equity.

Page 11

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

1 ACCOUNTING POLICIES (CONTINUED)

(f)

(g)

(h)

(i)

(j)

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates

calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their

expected useful lives on the following bases:

Freehold land - not depreciated

Freehold buildings - straight line over 40 to 50 years or remaining useful life if less

Plant and machinery - straight line over 5 to 10 years

Motor vehicles - straight line over 5 years

Leases

Rentals applicable on operating leases where substantially all of the benefits and risks of ownership remain

with the lessor are charged to the profit and loss account on a straight line basis over the term of the lease.

The cost of assets acquired on finance leases and on hire purchase contracts are capitalised and written off

over the estimated useful life of the asset. Lease finance charges represent a constant proportion of the capital

balance outstanding and are allocated to accounting periods during the term of the lease.

Stocks

Stocks are valued at the lower of weighted average cost and net realisable value after making due allowance

for obsolete and slow-moving stocks.

Taxation

The charge for taxation is based on the result for the period and takes into account taxation deferred because

of timing differences between the treatment of certain items for taxation and accounting purposes. In

accordance with Financial Reporting Standard 19 'Deferred Taxation', provision is made for deferred taxation

liabilities in respect of all timing differences that have originated but not reversed by the balance sheet date.

Deferred tax assets are recognised to the extent that it is more likely than not that they will be recovered

through utilisation against future taxable profits. Deferred tax balances are not discounted.

Deferred grant income

Grants relating to freehold buildings are being released to the profit and loss account on a straight line basis

over 50 years or over the remaining useful life of the building if less.

(k)

Pensions

The Group operates an auto enrolment defined contribution pension scheme and contributes to certain

colleagues' personal pension schemes. The pension charge represents the amount payable by the Group to

the fund in respect of the period.

The Group is one of a number of participating employers in the Football League Limited Pension and Life

Assurance Scheme. The Group 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. Full provision

has been made for the additional contributions that the Group has been requested to pay to help fund the

scheme deficit.

The assets of all schemes are held in funds independent from the Group.

(l)

Transfer income and intangible assets

Transfer income is credited to the profit and loss account, after deducting the net book value of the relevant

player's registration. In accordance with Financial Reporting Standard 10 'Goodwill and Intangible Assets'

and Financial Reporting Guidance for Football Clubs, transfer fees, transfer levies payable and agents’ fees

are capitalised as intangible assets. Amortisation is provided at rates calculated to write off the cost of the

transfer over the duration of the player's contract. Payments, which are contingent on the appearances and/or

performance of a player, are not recognised as provisions until the events crystallising such payments are

considered probable.

Page 12

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

1 ACCOUNTING POLICIES (CONTINUED)

(m)

Impairment

The Directors do not consider it possible to determine the value in use of an individual player in isolation, as

that player cannot generate cash flows on his own. However, in circumstances where it is apparent that as at

the period end the player would not be available for selection to play for the Club, the player is taken outside

of the wider cash generating unit and valued on a recoverable amount basis, being the Directors’ best

estimate of the player's fair value less cost to sell, with any resulting impairment charge being made in

operating expenses.

Examples of such circumstances include: the player falling out of favour of the senior football management,

career threatening injury and a clear intention on behalf of the player to leave the Club. The Directors’

assessment of fair value will be based on:

• in the case of a player who has fallen out of favour with senior football management or intends to leave

the Club, either the agreed selling price if a transfer has been agreed subsequent to the year end or, if a

transfer has not yet been agreed, the Directors’ best estimate of disposal value taking into account

relevant transfer market information; or

• in the case of a player who has suffered a career threatening injury, the value attributed by the

Company's insurers.

(n)

(o)

Onerous contracts

Present obligations arising under onerous contracts are measured and recognised as provisions. An onerous

contract is considered to exist where the Group has a contract under which the unavoidable costs of meeting

the obligations under the contract exceed the economic benefits expected to be received under it.

Foreign Exchange

In accordance with SSAP 20, foreign currency transactions are translated at the rates ruling when they

occurred. Foreign currency monetary assets and liabilities are translated at the rate of exchange ruling at the

balance sheet date. Any differences are taken to the profit and loss account.

2 TURNOVER

Turnover in respect of the business operations comprised:

2015 2014

£'000 £'000

Gate receipts and ticket sales 10,713 11,330

Broadcasting (FA & League income) 28,549 68,271

Media 148 116

Catering 4,065 4,192

Commercial 7,336 9,147

UEFA Solidarity & Prize Money 827 800

Other income 527 489

Group turnover 52,165 94,345

Page 13

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

3 OPERATING EXPENSES

Total operating expenses comprised:

2015 2014

£'000 £'000

Staff costs (note 6) 48,529 54,059

Depreciation of tangible fixed assets (note 13) - owned by the Group 2,007 2,155

Auditor's remuneration - audit of the Company's financial statements 14 14

- other services - audit of the Company's subsidiaries 4 4

- tax services 10 13

Operating lease rentals 232 242

Other operating expenses 12,040 12,900

62,836 69,387

Amortisation and impairment of intangible fixed assets (note 12) 13,213 18,308

Total operating expenses 76,049 87,695

The total charge resulting from the impairment of player registrations was £nil (2014: £6.6m) comprising of write

down of book value of intangible assets of £nil (2014: £2.1m) and provisions for onerous player contracts of £nil

(2014: £4.5m).

4 OTHER OPERATING INCOME

2015 2014

£'000 £'000

Loan player income 1,437 1,135

Donations 30 22

1,467 1,157

5 GAIN ON DISPOSAL OF PLAYERS’ REGISTRATIONS

2015 2014

£'000 £'000

Gain on disposal of players’ registrations 13,958 1,172

6 STAFF COSTS

Staff costs, including Directors’ remuneration, were as follows:

2015 2014

£'000 £'000

Wages and salaries 43,525 46,721

Other employment costs (including loan players) 1,203 1,009

44,728 47,730

Social security costs 3,592 6,118

Pension costs 209 211

48,529 54,059

Page 14

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

STAFF COSTS (CONTINUED)

Staff costs include a credit of £2.5m (2014: charge of £4.5m) relating to the contracts of certain players whose

contracts had been classified as onerous contracts.

The average monthly number of regular employees, including Directors, during the year ended 30 June 2015 was as

follows:

Number of employees

2015 2014

Directors 7 7

Football (including academy and football support staff) 119 117

Other 149 154

275 278

7 DIRECTORS’ REMUNERATION

2015 2014

£'000 £'000

Total and highest paid Director

Aggregate emoluments and benefits 1,137 1,119

Contributions to money purchase pension scheme (one (2014: one) Director) 57 71

Aggregate emoluments include performance related bonuses of £551,250 (2014: £367,500) for achieving targets in

the year. In addition, payments made to Directors under long-term incentive schemes accrued in previous years

totalled £333,334 (2014: £nil).

8 INTEREST RECEIVABLE AND SIMILAR INCOME

2015 2014

£'000 £'000

Bank interest receivable 42 106

Exchange rate gains 914 -

956 106

9 INTEREST PAYABLE AND SIMILAR CHARGES

2015 2014

£'000 £'000

Group

Bank loans and overdrafts 194 117

Other similar charges 98 127

292 244

Pension liability (note 29) 46 50

Finance charges on shares classified as liabilities (note 10) 58 57

396 351

Page 15

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

10 DIVIDENDS ON SHARES CLASSIFIED AS FINANCIAL LIABILITIES

2015 2014

£'000 £'000

Dividend payable

'A' preference shares 1 1

'B' preference shares 57 56

58 57

11 TAX ON (LOSS)/PROFIT ON ORDINARY ACTIVITIES

a. Analysis of tax credit/(charge) for the year ended 30 June 2015:

2015 2014

£'000 £'000

Based on the Group (loss)/profit for the year ended 30 June 2015

Current tax

UK Corporation tax on profit of the year ended 30 June 2015 (note 11b) 2,729 (2,741)

Adjustments in respect of prior periods - 61

2,729 (2,680)

Deferred tax

Current period (note 19) 4 150

Total tax credit/(charge) 2,733 (2,530)

b. Factors affecting the tax charge for the year ended 30 June 2015:

The effective rate of tax is different to the full rate of corporation tax. The differences are explained below:

2015 2014

£'000 £'000

(Loss)/profit on ordinary activities before tax (7,891) 9,270

(Loss)/profit on ordinary activities multiplied by standard rate of corporation

tax in the UK of 20.75% (2014: 22.5%)

(1,637) 2,086

Expenses not deductible for tax purposes (net of income not taxable) (5) 439

Capital allowances in excess of depreciation (924) (358)

Unrelieved tax losses and other timing differences 40 574

Utilisation of losses brought forward 2,526 -

Adjustment in respect of prior periods - (61)

Tax reclaim on carry back of trading losses (2,729) -

(2,729) 2,680

c. Factors that may affect future tax charges:

No provision has been made for deferred tax on gains recognised on the revalued land or capital gains which

have been rolled over into other Group assets as it is the intention to retain ownership of the revalued land and

core capital assets for use in the existing business for the foreseeable future. As a result of the changes

implemented by the 2013 Finance Act, the rate of corporation tax in the United Kingdom will remain at 20%

next year.

Page 16

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

12 INTANGIBLE FIXED ASSETS

Players’ registrations

Group and Company

£'000

Cost

At 1 July 2014 55,777

Additions 15,598

Disposals (15,713)

At 30 June 2015 55,662

Amortisation

At 1 July 2014 29,841

Charge for the year ended 30 June 2015 13,213

Disposals (12,963)

Impairments -

At 30 June 2015 30,091

Net book value at 30 June 2015 25,571

Net book value at 30 June 2014 25,936

13 TANGIBLE FIXED ASSETS

Assets in the

course of

construction

Freehold

land and

buildings

Plant and

machinery

Motor

vehicles Total

£'000 £'000 £'000 £'000 £'000

Group

Cost or valuation

At 1 July 2014 192 45,078 8,787 11 54,068

Additions - - 416 - 416

Disposals - - (10) - (10)

Transfers (100) - 100 - -

At 30 June 2015 92 45,078 9,293 11 54,474

Depreciation

At 1 July 2014 - 16,277 7,242 11 23,530

Charge for the year ended 30 June

2015 - 1,695 312 - 2,007

Disposals - - (10) - (10)

Transfers - - - - -

At 30 June 2015 - 17,972 7,544 11 25,527

Net book value at 30 June 2015 92 27,106 1,749 - 28,947

Net book value at 30 June 2014 192 28,801 1,545 - 30,538

Page 17

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

13 TANGIBLE FIXED ASSETS (CONTINUED)

The net book value of freehold land and buildings comprises:

2015 2014

£'000 £'000

Assets at adopted valuation (per FRS 15)

Land (not depreciated) 2,483 2,483

Assets at cost

Land (not depreciated) 1,325 1,325

Buildings and infrastructure 23,298 24,993

27,106 28,801

If the amount of the revalued land had been determined according to historical cost accounting rules, the book value

of the land would have been as follows:

2015 2014

£'000 £'000

Cost and net book value 2,412 2,412

Page 18

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

13 TANGIBLE FIXED ASSETS (CONTINUED)

Assets in the

course of

construction

Freehold

land and

buildings

Plant and

machinery

Motor

vehicles Total

£'000 £'000 £'000 £'000 £'000

Company

Cost or valuation

At 1 July 2014 192 45,247 8,787 11 54,237

Additions - - 416 - 416

Disposals - - (10) - (10)

Transfers (100) - 100 - -

At 30 June 2015 92 45,247 9,293 11 54,643

Depreciation

At 1 July 2014 - 16,235 7,242 11 23,488

Charge for the year ended 30 June

2015 - 1,695 312 - 2,007

Transfers - - (10) - (10)

At 30 June 2015 - 17,930 7,544 11 25,485

Net book value at 30 June 2015 92 27,317 1,749 - 29,158

Net book value at 30 June 2014 192 29,012 1,545 - 30,749

The net book value of freehold land and buildings comprises:

2015 2014

£'000 £'000

Assets at adopted valuation (per FRS 15)

Land (not depreciated) 1,917 1,917

Assets at cost

Land (not depreciated) 2,185 2,185

Buildings and infrastructure 23,215 24,910

27,317 29,012

If the amount of the revalued land had been determined according to historical cost accounting rules, the book value

of the land would have been as follows:

2015 2014

£'000 £'000

Cost and net book value 1,846 1,846

Page 19

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

14 FIXED ASSET INVESTMENTS

Group

Interest in

associated

Company

Investment in

associated

Company

Investment

in subsidiary

undertaking undertaking undertakings

£'000 £'000 £'000

Cost

At 1 July 2014 60 28 940

Share of result and movement in equity 8 - -

At 30 June 2015 68 28 940

Amounts written off

At 1 July 2014 - - 940

Movement in the year - - -

At 30 June 2015 - - 940

Net book value at 30 June 2015 68 28 -

Net book value at 30 June 2014 60 28 -

Subsidiary undertakings

The subsidiary undertakings, which were incorporated in England and Wales and are included within the

consolidated financial statements at 30 June 2015, are as follows:

Company % owned Principal Activity

N.C.F.C. (Holdings) Limited 100% Property holding Company

Kerrison Holdings Limited 100% Provision of car park facilities and property development

Kerrison Developments Limited 100% Interest in joint venture

Associated undertaking

Norwich City Football Club PLC owns 24.9% of the shares in EventGuard Limited.

15 STOCKS

Group and Company

2015 2014

£'000 £'000

Goods for resale 1,614 936

Page 20

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

16 DEBTORS

Group

Company

2015 2014 2015 2014

£'000 £'000 £'000 £'000

Due within one year

Trade debtors 7,632 5,578 7,632 5,578

Player debtors 7,250 1,918 7,250 1,918

Amounts due from subsidiary undertakings - - - -

Deferred tax asset (note 19) 528 524 528 524

Other debtors 702 394 602 292

Prepayments and accrued income 834 898 834 898

Corporation Tax 2,739 - 2,739 -

19,685 9,312 19,585 9,210

17 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2015 2014 2015 2014

£'000 £'000 £'000 £'000

Directors’ loans 1,989 2,069 1,989 2,069

Trade creditors 1,688 3,021 1,688 3,021

Player creditors 10,733 11,224 10,733 11,224

Receipts in advance 14,489 10,531 14,489 10,531

Other taxes and social security 5,769 5,155 5,769 5,155

Corporation tax - 2,387 - 2,387

4.5% 'B' preference shares of £1 each 1,421 - 1,421 -

Dividends payable on shares classified

as financial liabilities 58 58 58 58

Other creditors 357 263 357 263

Amounts owed to subsidiary undertakings - - 350 263

Accruals and deferred income 19,157 5,484 19,013 5,331

55,661 40,192 55,867 40,302

Directors’ loans of £1,989,000 (2014: £2,069,000) are unsecured and interest free.

The 4.5% ‘B’ preference shares of £1 each are classified as repayable within one year. Where valid requests have

been received, subject to the Company being permitted to do so in accordance with its Articles of Association,

redemption will (subject to when the valid request was received) take place on 1 January 2016.

Page 21

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

17 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group and Company

2015 2014

£'000 £'000

Receipts in advance 170 350

5.25% 'A' preference shares of £1 each 10 10

4.5% 'B' preference shares of £1 each - 1,421

Accruals and deferred income 393 1,806

Player creditor 1,481 -

2,054 3,587

The amounts falling due after more than one year fall due for repayment as follows:

Group and Company

2015 2014

£'000 £'000

In one to two years

Receipts in advance 120 195

Accruals and deferred income 120 1,458

Player creditor 872 -

4.5% 'B' preference shares of £1 each - 1,421

1,112 3,074

Group and Company

2015 2014

£'000 £'000

In two to five years

Receipts in advance 50 156

Accruals and deferred income 273 347

Player creditor 609 -

932 503

Group and Company

2015 2014

£'000 £'000

In more than five years

5.25% 'A' preference shares of £1 each 10 10

18 DEFERRED GRANT INCOME

Group and Company

2015 2014

£'000 £'000

Deferred grant income

At 1 July 2014 1,887 1,976

Credited to profit and loss account (88) (89)

At 30 June 2015 1,799 1,887

Page 22

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

19 DEFERRED TAXATION

Group and Company

2015 2014

£'000 £'000

Deferred tax asset

At 1 July 2014 524 374

Debited to profit and loss account (note 11a) 4 150

At 30 June 2015 (note 16) 528 524

20 PROVISION FOR LIABILITIES

The revaluation of property provision relates to further expenditure required by a Group undertaking for utility

services and other amenities in connection with the sale of land in 2004. The provision of £1,673,000 represents the

Directors’ best current estimate of the cost of carrying out this work over the next two years.

The provision for onerous player contracts arose in the prior year (see notes 3 and 6) and has been fully utilised or

released in the current year.

Group

Company

2015 2014 2015 2014

£'000 £'000 £'000 £'000

At 1 July 2014 6,217 605 4,544 -

Property provision: revaluation - 1,068 - -

Onerous contract provision: (revaluation)

/recognition (2,469) 4,544 (2,469) 4,544

Utilisation of onerous contract provision (2,075) - (2,075) -

At 30 June 2015 1,673 6,217 - 4,544

21 CALLED UP SHARE CAPITAL

2015 2014

£'000 £'000

Allotted, called up and fully paid

Equity interest

616,713 (2014: 616,688) ordinary shares of £1 each 617 617

Interest in shares classified as financial liabilities

9,675 (2014: 5,675) 5.25% 'A' preference shares of £1 each 10 10

14,421 (2014: 14,421) 4.5% 'B' preference shares of £1 each 14 14

Total interest in shares classified as financial liabilities 24 24

During the year 25 (2014: 22) £1 ordinary shares were issued at an average cost of £100 each (2014: £91 each). The

total proceeds were £2,500 (2014: £2,000). An amount of £2,475 (2014: £1,978) has been credited to the share

premium account in respect of the £1 ordinary shares (note 22).

The holders of the 'A' preference shares have the right to preference dividends at a rate of 5.25% per annum on the

nominal value in priority to holders of any other shares. The holders of 'B' preference shares have the right to a

cumulative preferential cash dividend at 4.5% of issue price, subject to the payment of the 'A' preference dividend,

but in priority to dividends on ordinary shares.

Page 23

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

The 'A' preference shares are not redeemable, therefore the par value of the shares has been shown as a liability due

in more than five years.

The holders of the 'B' preference shares have an option to redeem their shares in any year the Club achieves or

retains promotion to the Premier League. The 'B' shares are redeemable at £100 per share and, as the earliest

redemption date is January 2016, the shares have been classified as a liability due within one year.

In the event of a winding up order on the Company, the holders of preference shares have the right only to

repayment of capital paid up thereon and arrears of preference dividends to the date of payment but shall not have

any further right to participate in profits or surplus assets.

The 'A' and 'B' preference shareholders do not have the right to vote at General Meetings of the Company, except on

resolutions proposing the winding up of the Company or where the preference dividend is in arrears for more than

12 months.

22 RESERVES

Group Company

£'000 £'000

Share premium account

At 1 July 2014 10,728 10,728

Premium on shares issued during the year (note 21) 2 2

At 30 June 2015 10,730 10,730

Revaluation reserve

At 1 July 2014 and 30 June 2015 71 71

Capital redemption reserve

At 1 July 2014 and 30 June 2015 34 34

23 PROFIT AND LOSS ACCOUNT

Group

£'000

Company

£'000

Balance at 1 July 2014 10,306 11,946

Loss for the financial year (5,158) (5,260)

Balance at 30 June 2015 5,148 6,686

Page 24

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

24 RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS

Group

Company

2015 2014 2015 2014

£'000 £'000 £'000 £'000

(Loss)/Profit for the financial year (5,158) 6,740 (5,260) 6,854

Ordinary shares issued during the year - - - -

Premium on ordinary shares issued during the year 2 2 2 2

Net increase in shareholders' funds (5,156) 6,742 (5,258) 6,856

Opening shareholders' funds 21,756 15,014 23,396 16,540

Closing shareholders' funds 16,600 21,756 18,138 23,396

25 RECONCILIATION OF GROUP OPERATING PROFIT TO NET CASH INFLOW FROM

OPERATING ACTIVITIES

2015 2014

£'000 £'000

Group operating (loss)/profit (22,417) 7,807

Impairment of intangible fixed assets - 2,122

Amortisation of intangible fixed assets 13,213 16,186

Depreciation of tangible fixed assets 2,007 2,155

Increase in stocks (678) (158)

(Increase)/decrease in debtors (2,305) 5,490

Increase/(decrease) in creditors 15,438 (14,255)

(Decrease) in Deferred grant income (88) (89)

(Decrease)/increase in provision (4,544) 5,612

Net cash inflow from operating activities 626 24,870

Page 25

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

26 ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT

2015 2014

£'000 £'000

Returns on investments and servicing of finance

Interest received 357 106

Interest paid (317) (322)

Preference dividends paid (58) (64)

(18) (280)

Capital expenditure

Purchase of intangible fixed assets (14,057) (26,393)

Purchase of tangible fixed assets (417) (3,267)

Proceeds from sale of intangible fixed assets 11,377 2,361

Proceeds from sale of tangible fixed assets - -

(3,097) (27,299)

Financing

Issue of ordinary shares and share premium 3 2

Repayments of loans (80) (1,310)

(77) (1,308)

27 ANALYSIS OF NET DEBT

At 1 July

2014 Cash flow

At 30 June

2015

£'000 £'000 £'000

Cash balances

Cash at bank and in hand 6,857 (4,955) 1,902

Bank overdraft - - -

6,857 (4,955) 1,902

Debt

Debt due within one year (2,069) 80 (1,989)

Debt due after one year - - -

(2,069) 80 (1,989)

Preference shares

'A' preference shares (10) - (10)

'B' preference shares (1,421) - (1,421)

(1,431) - (1,431)

Net funds 3,357 (4,875) (1,518)

Page 26

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

28 CONTINGENT LIABILITIES

Additional payments amounting to a maximum of £8,415,900 (2014: £8,252,550) will become payable if certain

conditions in transfer and player contracts at 30 June 2015 are fulfilled. Additional signing on fees up to a

maximum of £8,409,400 (2014: £9,691,985) will become payable to players subject to the terms and conditions of

their contracts being fulfilled.

29 PENSION SCHEMES

Money purchase pension scheme

During the year the Group participated in a money purchase scheme and the Football League Limited Pension and

Life Assurance Scheme, for the benefit of certain employees. The assets of the scheme are administered by trustees

in a fund independent from those of the Group. Contributions to this scheme during the year ended 30 June 2015

amounted to £138,000 (2014: £104,000). At 30 June 2015 there were outstanding contributions of £14,000 (2014:

£15,000).

Employees' personal pension schemes

During the year the Group made contributions to certain employees' personal pension schemes. Contributions to

these schemes during the year ended 30 June 2015 amounted to £71,000 (2014: £96,000). At 30 June 2015 there

were outstanding contributions of £5,000 (2014: £1,000).

Football League Final Salary Scheme

The Football League Final Salary scheme is administered nationally and is now closed to new members. The latest

actuarial valuation, which was undertaken in 2011, indicated that the scheme remains in deficit and, in accordance

with the scheme rules, Norwich City Football Club PLC, along with the other football clubs, are required to make

payments to the pension scheme to reduce the deficit. Interest is charged by the pension scheme on the outstanding

amount at approximately 7.6% per annum and interest of £42,000 (2014: £50,000) was payable during the year

ended 30 June 2015. The outstanding liability will be paid to the pension scheme on a monthly basis over a period

of approximately four (2014: five) years to September 2019. The total amount payable to the pension scheme at 30

June 2015, including accumulated interest, was £513,000 (2014: £586,000) and is included in accruals and deferred

income.

30 OPERATING LEASE COMMITMENTS

The Group and Company had annual commitments under non-cancellable operating leases as set out below:

2015 2014

Land and

Buildings Other

Land and

Buildings Other

£'000 £'000 £'000 £'000

Expiry date:

Within one year - 12 - 70

Between one and two years - 283 - 1

Between two and five years 250 13 250 76

After five years - 125 - -

250 433 250 147

Page 27

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

31 RELATED PARTY TRANSACTIONS

Loans due to Directors and their companies

The Company has taken advantage of the exemption conferred by FRS 8 ‘Related Party disclosures’ not to disclose

transactions or balances with entities which form part of the Group headed by the Company.

At 30 June 2015, the following balances were outstanding on loans advanced to the Group and Company:

Group and Company

2015 2014

£'000 £'000

Ms D A Smith and E M S Wynn Jones 1,529 1,529

M M Foulger 460 540

The loan advanced by Ms D A Smith and E M S Wynn Jones is interest free and repayable on demand.

The loan advanced by M M Foulger is interest free and repayable on demand.

Transactions with Directors and their companies

Group and Company Group and Company

Sales

Purchases

2015 2014 2015 2014

£'000 £'000 £'000 £'000

Ms D A Smith and E M S Wynn Jones (joint) 2 5 - -

M M Foulger 14 13 - -

Banham Poultry Limited (M M Foulger) 27 51 - 1

At 30 June 2015 and 30 June 2014 the following balances (inclusive of value added tax) were outstanding:

Group and Company Group and Company

Sales ledger

Purchase ledger

2015 2014 2015 2014

£'000 £'000 £'000 £'000

Ms D A Smith and E M S Wynn Jones (joint) - - - -

M M Foulger (4) 1 - -

Banham Poultry Limited (M M Foulger) - 27 - -

Transactions with the joint venture Company

At 30 June 2015 the Group owed £nil (2014: £nil) to Kerrison Hotel Limited, being the called up share capital not

paid on the 'A' ordinary shares of Kerrison Hotel Limited. In respect of trading transactions, £69,000 (2014:

£69,000) was owed to Kerrison Hotel Limited, and an amount of £nil (2014: £18,000) was owed to the Group.

32 RELATED PARTY TRANSACTIONS AND CONTROL

At 30 June 2015 Ms D A Smith and her husband and co-Director, E M S Wynn Jones owned 53.1% (2014: 53.1%)

of the issued capital of the Company, In accordance with FRS 8 'Related Party Disclosures', the Board have

concluded that ultimate control of the Company vests in these related parties.

Page 28

NORWICH CITY FOOTBALL CLUB PLC

NOTES TO THE ANNUAL REPORT

For the year ended 30 June 2015

33 POST BALANCE SHEET EVENTS

Transfer of players’ registrations

In addition to G Dorrans, whose registration was acquired pre year end, subsequent to the year end the Group has

acquired the registrations of players Y Mulumbu, R Brady and J Kean, along with A Wisdom, D Mbokani and M

Jarvis on season-long loans.

The Group also sold the registration of B Johnson and cancelled the registration of I Miquel for a total amount in

excess of their total carrying value at the balance sheet date, and loaned out R Van Wolfswinkel, M Turner, Jacob

Murphy and Josh Murphy on season-long loans.

The net payment to which the Group is committed to in respect of these transactions is £3.5m with a maximum

further amount due of £9.4m dependent on Club and/or player performance.

The accompanying accounting policies and notes form an integral part of these financial statements.

Page 29

Norwich City Football Club PLC, Carrow Road, Norwich NR1 1JE

Tel: 01603 760 760

canaries.co.uk

Annual Report 2015

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