Annual Report Download

[Ronnie Whelan]

Linkage.

 

Now available for download on the offal. Will do a little analysis over the weekend and post it here on monday.

[PLY]

Wouldn't bother reading that mate - it's last years

[MikeD]

Wouldn't bother reading that mate - it's last years

 

use this direct link

[RP]

Josemi on the front cover!

[Kathy]

Good to see that inside the book they haven't used any of the sun headlines in it!

[boohog]

I want to know how Clive James got into the background of the photo where Stevie G is holding aloft the cup with Josemi in centre stage.

[Will]

 

I have literally just finished running off a copy of this for Anny Road

[boohog]

To be honest its the dullest of dull annual reports. There really is nothing to see here.

 

One of the most interesting points is the £10m increase in debtors. It doesn't state what this is but I suspect its CL related payments that we hadn't yet received (and anything due from Reebok).

 

Debt up a touch but this is primarily due to the debtors and increase capex on players of c. £10m resulting in slightly higher negative cashflow.

 

So by my read, the cashflow/debt benefits will be seen in the 06 annual report, whilst we see the nice big kick up in T/O and profits this year.

[Maldini]

I'd guess a large chunk of the £10m is the money Carlsberg and Reebok owe us for bonuses from winning the CL

[magneto]

Or it could be Lens paying us back the 10m for Diouf ...feeling sorry for us n all....

[PLY]

I notice that there's not a single word about the new stadium

[Will]

Or any potential investment

 

The one thing I spotted about the stadium, that slightly intigued, was this comment:

 

"Additions to the freehold land and buildings inclue £1,032,000 in relation to costs incurred in connection with the new stadium project. Total costs capitalised to date in connection with this project amount to approximately £7,024,000 and have not been depreciated. The Directors consider the useful economic life of the xisting stadium to be 4 years including the current year. The difference between the current carrying avlue and the expected residual value as at 31 July 2008 will be fully provided for over this period."

[Maldini]

From "Tim" on TLW

 

with 2 possible scenarios for the financial year ending July 2006.

 

Right had a look at the accounts and the first thing I noticed was that the board have not depreciated anfield this year, although they do put a note in that states

 

Quote:

The Directors consider the useful economic life of the existing stadium to be 4 years including the current

year. The difference between the current carrying value and the expected residual value as at 31 July 2008 will be fully provided

for over this period.

 

 

They've extended the date of residual value by a year and not put through a depreciation, possibly because it was put through last year.

 

There were also additions of £1m in charges over the year relating to the new stadium. There have been £7m of costs incurred to date and have yet to be depreciated (this will happen once the new stadium is built and opened).

 

Transfers

 

The value of transfers added in the year were £46m, original cost of sales of players was £18.5m. (so net £27.5m spent in the year)

 

Amortisation of players transfers was £22.8m (up by £5.5m from last year). There was also an impairment on a players registration within the year of £1.4m. This was an exceptional item (not sure who it related to though).

 

During the year £26.2m was paid out on players transfers, with £8.1m being received. Leaving a net spend of £18m. The club were still due to receive money from, probably, the owen transfer.

 

There are contingent liabilities of £6.214m on transfer fees if certain conditions are met (I suspect that £2.5m of this has now been paid after Alonso's 60th match)

 

We are potentially owed £1.7m in transfer fees if birmingham stay up this season. We received an extra £1.6m for the heskey transfer through last year.

 

Fees still to pay on transfers are as such:

 

Within the current financial year upto £18.7m. Note that this figure may include things other than transfers as it is trade creditors.

 

Fees due greater than 1 year are £18m. These will be fees that will be spread over the life of the contracts. So Cisse's transfer will have some in this. Possibly Crouch, Reina and Sissoko's too. For the same players part of their fees will be included in the above figure for due within the year.

 

Sponsorship Issues

 

The club have made a provision of £2.5m relating to potential costs because of the delay to complete shirt sponsorship deal. This will be under review as they argue who is right and who is wrong.

 

The amount owed by reebok looks to be upto £10m, although some of the £10m increase in debtors maybe due to transfer fees owed.

 

Wage bill

 

The wage bill of £64.2m DOES include bonuses for the european cup win. If we win it again this season the wage bill will remain at a similar level. If we don't win it again we will see it reduced by approx £10m. These bonuses will be paid over the current financial year as part of players salaries, this has resulted in Accruals and Other tax and social security to remain at relatively high levels. Assuming we don't win the european cup again this year creditors should decrease by approx £10m.

 

The wage bill was 53% of turnover, however if you strip out bonuses due to the european cup win the ratio is closer to 45%. The club are on target to have a 50% wage to turnover ratio.

 

Debt

 

Long term borrowing has fallen to £9.8m from £11.7m. It has been the overdraft facility that has increased net debt. The overdraft stands at £7.5m (increase of £4.5m) which is likely to be as a result of the reebok stuff. £6m of loans were repaid over the year but the club took out a further £5m loan to help fund player transfers in october. This would have been to bring forward money owed by UEFA/Premier League.

 

The debt is repayable as such

 

£4.467m due within the financial year.

 

£4.467m is due between 1 and two years time.

 

The overdraft is generally on demand, however this will always get cleared down from time to time as the club sells tickets and brings in cash receipts.

 

.tv

 

The online profit (before rights amortisation) increased by a factor 11,000 to £658k.

 

There are now over 36,000 e-season ticket holders.

 

 

Prospects for FY2006

 

There are a number of factors that will effect this. I will try to cover a best case scenario (well when I say best case I mean we win the european cup again but don't win the league due to the current points gap) and a "worst case" scenario (ie finishing 4th and going out to benfica)

 

Winning the european cup and finishing 2nd.

 

Premier League television revenue - £30m. (extra £1.5m for finishing 3 places higher)

 

Premiership match related turnover - £24m (increase in ticket prices)

 

Cup competitions - £33m (similar to last season, although a run in the FA Cup could add to this. We have also earned about an extra £0.5m from win bonuses in the group stage of the european cup)

 

Sponsorship - £20m similar to last season.

 

Retail merchandise - £15m (due to the new away shirt falling in this financial year, the increased merchandise sales due to the cup win and the european shirt sales)

 

Museum and Supporters club - £1.3m (I've used a modest increase although this could be alot higher)

 

Japan Trip - £3m from match fees etc (using an estimate as I can't remember what the total prize fund was)

 

Turnover - around the £127m

 

Wages - £64m (these would remain similar to last season, these include bonuses for winning the cup)

 

Other admin charges - £16m (these seem to remain relatively static.

 

Cost of sales - £15.4m (using a similar increase to what occured between the last two financial years)

 

Amortisation of players registrations - £26m (these will increase due to investment in playing squad, but also no exceptional charge of impairment of a players registration)

 

Profit on disposal of players transfers - £12m

 

Interest Payable - £1.7m

 

Profit before tax - £15.9m

 

Tax - £3.8m

 

Profit after tax - £12.1m

 

This will leave net assets of about £53m

 

Cashflow from operating activities (assuming we get all money on time and in full, plus the money owed to us by reebok, I'll assume £5m since I don't know the actual figure) - £38.6m

 

Finishing 4th and out to Benfica

 

Premier League television revenue - £29m. (extra £0.5m for finishing 1 place higher)

 

Premiership match related turnover - £24m (increase in ticket prices)

 

Cup competitions - £23m (There is an approx £10m drop in revenue for going out at the last 16)

 

Sponsorship - £17m

 

Retail merchandise - £15m (due to the new away shirt falling in this financial year, the increased merchandise sales due to the cup win and the european shirt sales)

 

Museum and Supporters club - £1.3m (I've used a modest increase although this could be alot higher)

 

Japan Trip - £3m from match fees etc (using an estimate as I can't remember what the total prize fund was)

 

Turnover - around the £112.3m

 

Wages - £54m (there would be no bonus payments)

 

Other admin charges - £16m (these seem to remain relatively static.

 

Cost of sales - £15.4m (using a similar increase to what occured between the last two financial years)

 

Amortisation of players registrations - £26m (these will increase due to investment in playing squad, but also no exceptional charge of impairment of a players registration)

 

Profit on disposal of players transfers - £12m

 

Interest Payable - £1.7m

 

Profit before tax - £11.2m

 

Tax - £2m

 

Profit after tax - £9.2m

 

This will leave net assets of about £51m

 

Cashflow from operating activities (assuming we get all money on time and in full, plus the money owed to us by reebok) - £25.7m

 

 

I won't try and forecast net debt and the detail of the balance sheet as they all depend on too many variables I have no easy access of.

 

Once again this financial year we are looking towards having a profit. We also managed to make a profit, technically, on Josemi of around £3m since it was a straight swap. Due to the requirements of the accounts both Krompkamp and Josemi had to be valued so I guess they used the value of krompkamps transfer to villareal.

 

----------------------------------

 

Now here is something that may interest you a little. Financially we could be better off by finishing 2nd in the league and losing the european cup final. This is because the losers get about £1.7m less than the winners, while sponsorship revenues will be down by about £2.5m. However there would not be bonuses to be paid out to players and management for winning the cup, thus saving the club upto £10m.

 

So if you look at it that way Rafa's half time team talk and tactical changes cost the club potentially £5m

[SkippyjonJones]

my biggest concern for this year as relates to income is the impact of the % we recieve from uefa - its way down due to us being the 5th entrant.

Going through to the last 8 and being the only english club left could have a far graeter financial impact than getting through to the final but having the other english clubs making at least the semis.

 

I'll be cheering on the spanish clubs in the next round as well as lfc

[Tim]

From "Tim" on TLW

 

with 2 possible scenarios for the financial year ending July 2006.

 

Right had a look at the accounts and the first thing I noticed was that the board have not depreciated anfield this year, although they do put a note in that states

 

Quote:

The Directors consider the useful economic life of the existing stadium to be 4 years including the current

year. The difference between the current carrying value and the expected residual value as at 31 July 2008 will be fully provided

for over this period.

They've extended the date of residual value by a year and not put through a depreciation, possibly because it was put through last year.

 

 

It's since been pointed out to me that they have accelerated the depreciation of the stadium, it's just that they moved it. Stupid mistake to make on my part but it happens. They've moved the depreciation from exceptional items to depreciation in admin expenses.

 

my biggest concern for this year as relates to income is the impact of the % we recieve from uefa - its way down due to us being the 5th entrant.

Going through to the last 8 and being the only english club left could have a far graeter financial impact than getting through to the final but having the other english clubs making at least the semis.

 

I'll be cheering on the spanish clubs in the next round as well as lfc

 

 

I think we get the same percentage as last season. Also the percentage only applies to the first half of the media pool. So we will get about £3m from that part this season, like last, although had we been entered through as champions instead of everton being given the qualifying spot we would have got 30% of the first half of the pool (£6m).

 

Being the 5th entrant shouldn't come into it really since only 4 english sides went into the group stage.

 

If each of us, chelsea and arsenal go to the same stage of the competition this season we will each get slightly more than last season since there will have been 2 games less played this by english sides than last season (we would get around £0.5m extra).

 

For the rest of this season and next finishing 2nd in the league would give us an extra £4.5m than this season from the media and premiership revenues (£1.5m for finishing 3 places higher in league, £3m for a 30% share of media pool)

[Lee W]

I'll be cheering on the spanish clubs in the next round as well as lfc

 

Surely a default position, considering who the Spanish sides are playing.