annual-report-2015-web132-2761748
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.
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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.
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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.
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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.
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REPORT OF THE DIRECTORS
NORWICH CITY FOOTBALL CLUB PLC
NORWICH CITY FOOTBALL CLUB PLC
NORWICH CITY FOOTBALL CLUB PLC
REPORT OF THE DIRECTORS
REPORT OF THE DIRECTORS
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
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
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
BY
Financial • there
ORDER the
statements is no
Directors OF THE
are relevant
have BOARD
published audit
taken
on information
all
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steps
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that they
website which
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make themselves
in and United
aware
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of any
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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
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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
BY ORDER OF THE BOARD
D
BY
McNally
ORDER OF THE BOARD
Director
7 October 2015
D McNally
McNally
Director
Director
Page 5
7 D October McNally 2015
Director October 2015
7 October 2015
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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
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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.
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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.
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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.
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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
£'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.
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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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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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.
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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
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Norwich City Football Club PLC, Carrow Road, Norwich NR1 1JE
Tel: 01603 760 760
canaries.co.uk
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