Final Results

RNS Number : 9971V

Tottenham Hotspur PLC

11 November 2010

 



11 November 2010                                                 

Tottenham Hotspur plc

("Tottenham Hotspur" or "the Company")

Final Results

for the year ended 30 June 2010

Financial Highlights	Year ended 30 June 2010 £m	Year ended 30 June 2009 £m
Revenue	119.8	113.0
Profit from operations excluding football player trading	22.7	18.4
Amortisation and impairment of registrations	(40.0)	(37.3)
Profit on disposal of player registrations	15.3	56.5
Net finance costs	(5.0)	(3.4)
(Loss)/profit on ordinary activities before taxation	(6.5)	33.4
(Loss)/profit for the year	(6.6)	23.2
(Loss)/earnings per share	(5.6p)	25.0p

Summary and Outlook

·     Record revenues of £119.8 million

·     Profit from operations excluding football player trading of £22.7 million

·     Total assets of £288.2 million

·     Increases in media and broadcasting revenues, including a higher merit award for our fourth place finish

·     Stadium at full capacity for every FAPL game resulting in increased gate receipts and merchandising revenues

·     Continued investment in the First Team squad and in capital projects

Commenting, Daniel Levy, Chairman, said:

"This period has seen the Club produce a record turnover and a 23% increase in operating profit.

"We are benefiting now from our investment to date in the First Team squad. Our challenge is to accrue further benefits from our investment in capital projects in order to lay the strongest foundations for the future stability and prosperity of the Club.

"I would like to commend everyone at the Club for their continued hard work and thank our supporters for their magnificent support both home and away throughout the season."

Enquiries:

Matthew Collecott, Finance Director                                       Tel:  [phone]

Tottenham Hotspur plc                                                            www.tottenhamhotspur.com

John Bick                                                                                 Tel:  [phone]

Hansard Communications

Jonathan Wright                                                                      Tel:  [phone]

Seymour Pierce Limited

Chairman's statement 2010

This period has seen the Club produce a record turnover and a 23% increase in operating profit before football trading and amortisation, achieved during what has been a difficult economic time and a season without European competition.

These figures show the significant progress that has been made over the past 10 years. This is most notable from a financial perspective given the growth in revenues, intangible assets (players) and tangible assets (Stadium and Training Ground developments). To put this into context, 10 years ago the Club had revenues of £48m, intangible assets of £37m and tangible assets of £47m. We now have revenues of £120m, intangible assets of £116m and property, plant and equipment of over £123m. This is now a business with total assets of over £288m.

The Board has always taken the view that the business should be grown prudently and that reinvestment in the core drivers of the business alongside strong partners would deliver stability and, ultimately, success to the Club.

Investment in the First Team squad has meant qualification for the Champions League, one of our key goals. Investment in capital projects will mean the ability to continue to compete at the highest level.

Alongside these investments are the less obvious but no less important ones which include - investment in young players, in our growing younger fan base, in the growth of our brand footprint internationally and investment in our wider communities.

These have also enabled our Club to be the largest charitable donor in the Premier League and our Foundation to be the most extensive provider of community-based projects.

Financial highlights

This year's financial results for the year ended 30 June 2010 have seen revenue reach a record high of £119.8m  (2009: £113.0m). For yet another season we filled our Stadium to capacity for every Premier League home match and during this period Premier League gate receipts rose to £20.1m (2009: £19.8m).

Increases in media and broadcasting revenues, including the higher merit award for our fourth place finish, along with a rise in merchandising revenue, also contributed to our increased revenues.

Importantly, our operating profit excluding football trading, a key performance indicator for how the business is performing as a cash-generating business, increased by 23% to £22.7m (2009: £18.4m).

We have continued to invest in the First Team squad and currently have one of the largest squads in the Premier League. Additionally we have invested in our capital projects with the start of building works on the First Team and Academy Training Centre and have recently gained local planning consent for the Northumberland Development Project.

Capital projects

The Club revised its plans for the Northumberland Development Project - the new stadium and related developments scheme - in response to stakeholder feedback. New designs incorporated four retained heritage buildings, a raised piazza and revised southern development with reduced residential and increased public square. The plans were formally submitted to Haringey Council in October 2009 and received approval by the Council's Planning Committee on 30 September 2010. At the time of publication of this Report, the application was in the process of being referred to the Mayor of London and the Secretary of State in order to obtain full consent.

The stage of consent reached to date, with the incorporated amendments, has meant that the projected cost of the scheme has risen substantially. Retained historic buildings, which will require extensive refurbishment and renovation, increased development costs associated with the piazza, the loss of enabling development with the reduction in residential, substantive S106 and S278 agreements and a sizeable contribution to Transport for London, collectively add in the region of £50m to the costs. Additionally, the scheme does not benefit from public sector grants or regeneration monies.

It was therefore prudent and sensible that, at a time when we had yet to receive approval for the application, we should register our interest in the Olympic Stadium site, before the deadline of expressions of interest passed.

A new, increased capacity stadium is essential for our Club. We have 33,000 supporters on the paid-for Season Ticket Waiting List and we need to continue to move the Club forward which can only be delivered for the longer term in an enlarged stadium.

We shall continue to pursue our stadium processes and we shall retain our primary focus of creating the most atmospheric stadium in Europe - this is what our supporters deserve and this is what makes our matchday experience unmissable.

We continue to support the 2018 World Cup bid - to win this in the coming months would be a fantastic achievement and any stadiums involved would clearly feature on the world stage and forever be known as a World Cup stadium and a part of football's World Cup heritage.

We shall shortly be taking the players to view the latest stage of works to the new Training Centre at Enfield. Groundworks have been ongoing for several months and we have now started construction works on the main building. The opening of this state-of-the-art facility will be much welcomed and long awaited and we anticipate it being operational for the 2012/2013 season. I have no doubt that the playing and non-playing staff of both the First Team and the Academy will thoroughly enjoy their new surroundings and world-class facilities on the 73 acre green belt site.

On the pitch

Our fourth place finish in the Premier League at the end of the season was truly memorable and long awaited. It heralded a return to Europe and our entry to the elite Champions League. Following on from this success, in the current season we won our qualifying round to progress to the Group Stages of the Champions League, in which we recorded a memorable win over Inter Milan, the current European Champions, on an unforgettable November night at White Hart Lane. Investment in the First Team squad has long been the first priority at the Club and we must now look to continue our consistently good performances with a stable squad.

In 2009/2010 we reached the quarter-finals of the Carling Cup, being knocked out by the eventual winners Manchester United and went one round further in The FA Cup, reaching the semi-finals before a disappointing loss in extra time to Portsmouth at Wembley.

During the financial year the following players joined the Club: Sebastien Bassong, Anton Blackwood, Peter Crouch, Eidur Gudjohnsen (loan), Younes Kaboul, Niko Kranjcar, Kyle Naughton, James Walker and Kyle Walker.  The total cost of all of these players was £37.8m. 

The following players have left during the financial year: Troy Archibald-Henville, Darren Bent, Yuri Berchiche, Kevin-Prince Boateng, Lee Butcher, Pascal Chimbonda, Sam Cox, Gilberto Da Silva Melo, Chris Gunter, Tomas Pekhart, James Walker, Didier Zokora, for total fees of £24.6m.

Since the year end we have boosted the squad further with the following signings: William Gallas, Stipe Pletikosa, Sandro, Rafael van der Vaart, for combined transfer fees of £19.9m.

The following players have left since the year end:  Dorian Dervite and Adel Taarabt, for combined transfer fees of £0.9m.

The Club had a successful pre-season tour in the summer of 2009, when the First Team squad competed in and won the Barclays Asia Trophy and also participated in the Wembley Cup. In the summer of 2010 the First Team trained with our international partner club, San Jose Earthquakes and participated in the Red Bulls tournament in New York.

At youth level, three more academy players, David Button, Jake Livermore and Danny Rose made their debuts during the season, building on the four from the previous season. These First Team appearances are invaluable experiences at such young ages. Behind the scenes the endless development hours for the younger players come in the form of training and friendly game experience with the First Team, plus acquiring playing experience in the Football League. This is a result of the Club's strategy to withdraw from the Reserve League and allow players to accumulate senior appearances in the Football League.  Last season 17 players under 21 years of age played an average of 22 games each, whilst still training regularly back at the Lodge and playing in midweek development games for Tottenham Hotspur. We feel this combination of technical development at home with added coal-face experience in the League is the best way of bridging the gap from youth football to the Premier League.

The feedback we receive about the level of professionalism and conduct of our young players on loan is particularly pleasing and they are a credit to our Club.

Additionally, 16 players competed in international football for their respective Under-16 to Under-21 sides, 13 of whom played for England.

We attended 28 tournaments as part of the continuing strategy of preparing young players to compete against the different football styles and cultures which make up the Premier League.

Commercial operations

This year saw the continuation of several commercial agreements and time was spent preparing for their renewal at the end of their terms.

One contract which ended at the end of this period was our shirt sponsorship agreement with MANSION. We should like to thank them for their support and involvement with the Club over the past four years.

We were delighted to announce two new shirt sponsors in a ground-breaking innovative split of the shirt sponsorship inventory. Autonomy, the world's largest pure software company, became our sponsor for all Premier League matches and Investec, the specialist banking and asset manager, became our sponsor for all cup competitions. Both companies are blue-chip international organisations, listed on the London Stock Exchange. We look forward to working with them both at this key stage in the Club's growth and development and in leveraging and activating these sponsorships to the benefit of all businesses. In addition we have worked to renew and replace agreements in other sector categories with Thomas Cook, Sportingbet and Ladbrokes.

These agreements run from 1 July 2010 and will be reflected in the next set of accounts.

We are also pleased to announce a further one-year extension to the Puma kit deal that will see us through to the end of the 2011/2012 season.

Corporate Hospitality suffered from the Club not being in a European competition during the season, but Merchandising saw a significant increase as consumer confidence rose during a good football season.

Our Club channels continue to grow and our official website, despite the ever-increasing number of generic sports websites, broke the one million unique users (visiting monthly) and peaked at 1.5m.

Spurs TV continues to attract the highest levels of subscriptions of any comparable Premier League club channel and content regularly drives additional media coverage in the wider football arena. The Club's Facebook page and Twitter account were planned within this period and launched in the summer.

The challenge for the Club on the new media front is to adopt and innovate those streams and channels which not only deliver accessibility and information to our supporters, but which keep up with growing demand and requirement for content.

International development

We had a busy year with our three well established partnerships, namely Supersport United FC (South Africa), South China (Hong Kong) and San Jose Earthquakes (USA), and were delighted to agree a new partnership with FC Internacionale (Brazil).

All these partnerships have been developed to provide relationships that can facilitate the development of players and the exchange of coaching and academy methodologies. As a result we have seen players visit us from all four clubs and we have made several visits to our partners. We have also jointly participated in international tournaments with our partners.

The very visible, immediate gains of these partnerships have been the signings of Sandro from FC Internacionale and a pre-contract agreement with Khumalo Bongani to join us from Supersport in January 2011. At Academy level we continue to monitor players at all age groups and are excited about the future potential.

Fan development

This period included plans for programmes and incentives designed to promote access to our next, younger generation of fans. Launched at the start of the 2010/2011 season, these included free membership for under-11's, which doubled our junior membership, along with provisions for season ticket holders to bring their children to matches, free stadium tours for schools and increased family days and events. It is important that we recognise the need to make the Club and its fixtures accessible and to welcome new fans as we seek to grow the Club for the future.    

Tottenham Hotspur Foundation

This was the year that saw us reach the key milestone of having delivered one million opportunities through the Club's Foundation, and we achieved this within two years. It is a remarkable achievement. All too often the work of football clubs in the community is seen as a photo opportunity or a brief player appearance - we have deliberately worked hard to remove this superficial and inaccurate description. Anyone who attended the Foundation's recent awards ceremony as part of our 'To Care is to Do' programme would have realised that the work achieves real results. This programme, which works with children in care, is just one of the many examples of programmes we run which work with individuals and which fundamentally address their issues and make it possible for them to achieve more in life. Hours are given to one-to-one contact and mentoring, and the results are inspiring.

We are proud of the fact that the Tottenham Hotspur Foundation continues to lead the way within Community Sport by developing a wide range of innovative and pioneering projects across London.

Within this period we developed and launched the Foundation's new educational degree course and became an institutional partner with Middlesex University. This is the first partnership of its kind and the learners will undertake an 'Applied Sport and Community Development' Foundation Degree focusing on sport and community. 

The Foundation continues to deliver a number of estate-based projects across four London boroughs (Haringey, Enfield, Barnet and Waltham Forest) and in Harlow.

The Section 106 agreement with Enfield Council and Lee Valley Park Regional Authority relating to our new Training Centre at Bulls Cross was also launched. To date a range of projects have been delivered including healthy walks, writing skills courses, estates and health programmes and further initiatives will be delivered over the next 10 years.

Our international work continues and Foundation coaches have this year travelled to Sri Lanka, China, South Africa, Portugal, Singapore and Poland to help support work within disability sport and football development. 

We shall continue to underwrite the work of the Foundation as this Club is fully aware of its responsibility to its communities.

Other charitable donations

In support of our international charity SOS Children's Villages, the Club participated in World Orphan Week. Every player sponsored an orphan from three countries around the world - Haiti, China and South Africa.

We specifically arranged sponsorship of children in the Club-funded orphan's house in Rustenburg, South Africa by our players likely to be selected for England. It was especially heart-warming that in the lead up to the World Cup 2010, Michael Dawson was able to visit the house and meet the young lad he was personally sponsoring.

We have also worked with and supported Help 4 Heroes and donated thousands of tickets to Tickets for Troops. We regularly send out flags and kit to our fans in the armed forces serving overseas. We auctioned the Poppy Appeal match shirts and generous supporters bidding helped us raise over £30,000 for that event alone.

We continue to support the Tottenham Tribute Trust (TTT) which looks after ex-players in need. A special range of legends shirts was marketed and sold with all profits to the TTT and we have planned activities for future fund-raising jointly with the committee.

During this period we became the first British club to become a Special Olympics Global Football Ambassador, alongside Inter Milan. We shall now work with Special Olympics in both the UK and around the world and the Foundation recently supported their work in Portugal.

Outside of the period and notably due to our location in Northumberland Park, the most deprived area of London, the Club and players, led by Benoit Assou-Ekotto, made a substantial donation to the Evening Standard's 'The Dispossessed Campaign'.

Environmental responsibility

The Club takes a responsible approach to the challenges of climate change. In addition to being a founding participant of 10:10, we have also embraced leading green technologies in the new Training Centre currently under construction.

Notably, the new building will include an inter-seasonal Aquifer Thermal Energy Store (ATES). This will reduce the carbon emissions footprint by a 30% improvement on the minimum standard required and this will be one of the first uses of this type of technology in the UK.

Management and staff

I would like to thank Harry Redknapp, the coaches and all the players for a wonderful season.

There is never a quiet period at a football club and I should like to thank all of our staff for their consistent hard work and determination to deliver the very best service to supporters.

At the end of the season, John Alexander, our Club Secretary, left us to join Manchester United after 10-years' service. We thank him and wish him well for the future. I am very pleased to welcome Darren Eales as his replacement, who joins us from West Bromwich Albion.

I should also like to once again thank Sir Keith Mills, our Non-Executive Director, for his invaluable guidance and support.

We are delighted to announce the appointment to the Club's management board of Charlie Wijeratna as Executive Director with commercial responsibilities, with effect from December 2010. Charlie joins us from the London Organising Committee for the Olympic Games where he was responsible for the delivery of significant commercial revenues. He brings with him a proven track record and will be a great addition to the management team.

Outlook

Our priority on the pitch remains the Premier League - this is the true measure of our progress and ability to compete at the highest level.

We are benefiting now from our investment to date in the First Team squad. Our challenge is to accrue further benefits from our investment in capital projects in order to lay the strongest foundations for the future stability and prosperity of the Club.

I would like to commend everyone at the Club for their continued hard work and thank our supporters for their magnificent support both home and away throughout the season.

Daniel Levy

Chairman

10 November 2010

Financial review

I am pleased to announce the financial results for the year ended 30 June 2010.

We again reached record revenues and a 23% increase in our operating profit before football trading and amortisation. 

The table below shows the results of the football and property segments of the Group.

	2010	2009
	£m	£m
Football
Revenue	119.0	112.2
Operating profit*	22.8	18.6
(Loss)/profit before tax	(5.8)	34.2
Property
Revenue	0.8	0.8
Operating loss*	(0.1)	(0.2)
Loss before tax	(0.7)	(0.8)
Group
Revenue	119.8	113.0
Operating profit*	22.7	18.4
(Loss)/profit before tax	(6.5)	33.4
*=Operating profit/(loss) before interest, football trading and amortisation

Revenue

This year Club revenue has reached a record high of £119.8m (2009: £113.0m).

Premier League gate receipts rose to £20.1m (2009: £19.8m) with the Stadium sold out for all Premier League home games. The revenue from gate receipts remains consistently high with demand for season tickets being stronger than ever, with the Season Ticket Waiting List standing at 33,000 registered and paid-up members. Our fans continue to demonstrate unwavering support for our team and Club and we are continually seeking ways to increase our fan base overseas and add value for domestic fans.  This continued support is of utmost importance in ensuring that the Club is able to prosper.

Beyond the Premier League the Club missed out on the Carling Cup final, for what would have been a third successive year, being knocked out by the eventual winners Manchester United at the quarter-final stage.  The Club went one round further in The FA Cup, reaching the semi-finals before we disappointingly lost in extra time to Portsmouth at Wembley.  Overall, the cup competitions raised £6.7m (2009: £8.1m) in gate receipts and prize monies, a drop of £1.4m mainly due to a lack of European football for the first time in four years.

Media and broadcasting revenues increased by 15% to £51.5m (2009: £44.8m).  This gain is largely attributable to a higher merit fee award based on our final league position of fourth compared to eighth the previous season and a rise in the number of times the Club featured in live televised games.

Sponsorship and Corporate Hospitality income fell to £25.8m (2009: £27.4m), again a reflection of not having the well-attended mid-week European games that have proved popular with corporate fans, as well as difficult economic conditions.

Merchandising rose by 12% to £7.8m (2009: £7.0m) as we saw a return of discretionary spend and better average transaction values as well as a strong product mix.

Operating expenses (excluding football trading)

Operating expenses before football trading rose by 3% from £94.6m to £97.1m in the year. Player salaries have risen as the Club has further invested in the depth of its playing squad in preparation of Champions League football.

This higher cost base has been partially offset by a favourable movement in unrealised foreign exchange differences, due to the strengthening of Sterling against the Euro during the year and also by the stability of the team management and the lack of restructuring costs. 

Profit from operations (excluding football trading and amortisation)

Overall, our operating profit before football trading and amortisation, which is one of the key performance indicators for how the Club is performing as a cash-generating business, increased by 23% to £22.7m (2009: £18.4m). 

Amortisation and impairment of intangible assets

Amortisation and impairment of intangible assets are £40.0m (2009: £37.3m) as the Club maintains its significant investment in its playing squad. With intangible assets (players) valued at £115.7m in the balance sheet it is clear that the historic cost of our team represents an enviable squad whose market value would be far in excess of its carrying value.

Profit on disposal of intangible assets

Profit on the disposal of intangible assets was £15.3m for the financial year (2009: £56.5m), which includes the sales of Darren Bent to Sunderland, Didier Zokora to Sevilla and Kevin-Prince Boateng to Portsmouth.  The comparative figure for the prior period includes significant gains that were made on the sales of the registrations of Dimitar Berbatov and Robbie Keane.

Net finance expenses

 Interest expense has reduced by £0.5m but a reduction in interest income has resulted in an increase in the net finance expense from £3.4m to £5.0m.  

Taxation

The Group has incurred a tax charge of £0.1m in the current year at a tax rate of 28%.  Therefore the loss after tax is £6.6m.

Balance sheet

The most significant balance sheet movement relates to the continued investment in property, a further investment throughout the year in both the Training Ground build and the acquisition of property through Tottenham Hotspur Property Company Limited for the Northumberland Development Project (NDP) which contributed to a £20.2m increase in tangible assets.

We now hold tangible assets with a net book value of £123.6m on our balance sheet; the current Stadium, plant and equipment amounts to £38.9m of these assets; NDP £72.4m and the new Training Ground £12.3m. The current book value of the property which has been acquired to ensure we can deliver the NDP is £52.0m, with a further £20.4m being spent on planning and professional fees.

This huge investment over the past five years has been funded through equity contributions and long-term debt financing.

This investment was recently underpinned by the granting of local planning consent for the NDP master plan.

In August 2009, the Club placed 30 million new ordinary shares of 5p each, raising £15.0m to ensure that the Club's cash flow was not affected by the NDP. Group net assets grew to £70.5m (2009: £62.1m).

Cash flow

The Group had a net cash inflow from its operations of £19.9m for the year (2009: £29.9m).

We had a cash outflow of £62.0m (2009: £68.6m) to acquire players and pay contingent sums arising from transfer agreements, this is partially offset by £34.5m (2009: £47.2m) of cash inflows from player sales and contingent receipts with the residual outflow offset by operating profits.

The other major cash movements were the drawdown of £3.8m in property loans to help fund the Northumberland Development Project and a £10.0m short-term loan from our banking facilities.  The Group repaid £4.1m of other borrowings during the year.

Risks and opportunities

The Group is exposed to a range of risks and uncertainties which have the potential to affect the long-term performance of the Group.  Risks are monitored by the Board on a continual basis and the Group seeks to mitigate the risks wherever possible.

Looking forward, the next major challenge our industry will face, from a financial perspective, will be the inevitable change that 'Financial Fair Play' will bring to the game. The essence of the change is to balance revenues and expenses. It was inevitable that UEFA would bring further control to the game and the Premier League has embraced these changes taking the view that it is better to be involved in a process than pushing against the inevitable.

From the Club's perspective it vindicates our consistent approach to invest in the Club. It underlines our focus on investing in young talent and our Academy facilities, it necessitates the need for a new stadium, which is now more important to drive revenues to the next level, and it underlines our decision to work within our historic operational cash flows. We are well placed to meet the challenges of the future. Consequently, the Directors continue to prepare the financial statement on a going concern basis.

On the pitch

As we invest for the future the continued success of the First Team in the league, European and cup competitions remains an important part of our progression, particularly as we head off on a Champions League adventure which will test players and staff alike, as we raise our game to football's most elite competition. 

Our ambitions in these competitions can be achieved with the continued commitment of the playing staff, the football management team and supporters.  Our successful approach to nurturing both home-grown talent and acquisitions through the transfer market will help the team to secure future success on the pitch.

There is always continued upward pressure on player costs and salaries, which continue to require significant cash outflows.  Accordingly, the challenge for the Group continues to be to locate players of both quality and value through the transfer market and Academy, the importance of this will be further highlighted by the introduction of Financial Fair Play.

Off the pitch

The development of the new stadium will expose the Group to additional risks.  The risk that we might not obtain the necessary financing would have a significant negative impact and require a write-off of some of the planning and professional fees paid to date. There is also a risk that the market value of the property held may reduce, however we are confident there are appropriate contingency plans in place to safeguard against this risk.

We continue to explore new opportunities in order to broaden our range of income streams both nationally and internationally.  This continued diversification of our income streams will help to ensure the Group is financially robust and increases our stability.

The Club is reliant on the Premier League brand and exposed to external governing bodies of The FA, UEFA and FIFA.  Clearly any changes in these bodies can affect our business model.

Matthew Collecott

Finance Director

10 November 2010

Consolidated income statement

for the year ended 30 June 2010

		Year ended 30 June 2010			Year ended 30 June 2009
	Note	Operations, excluding football trading*	Football trading*	Total	Operations, excluding football trading*	Football trading*	Total
		£'000	£'000	£'000	£'000	£'000	£'000
Revenue	3	119,814	-	119,814	113,012	-	113,012
Operating expenses		(97,140)	(39,466)	(136,606)	(94,622)	(38,099)	(132,721)
Operating profit/(loss)		22,674	(39,466)	(16,792)	18,390	(38,099)	(19,709)
Profit on disposal of intangible fixed assets		-	15,250	15,250	-	56,500	56,500
Profit/(loss) from operations		22,674	(24,216)	(1,542)	18,390	18,401	36,791
Finance income				1,358			4,563
Finance costs				(6,355)			(7,956)
(Loss)/profit on ordinary activities before taxation				(6,539)			33,398
Tax				(108)			(10,234)
(Loss)/profit for the period				(6,647)			23,164
Attributable to: Equity holders of the parent				(6,647)			23,164
(Loss)/earnings per share from continuing operations - basic	5			(5.6p)			25.0p
(Loss)/earnings per share from   continuing operations - diluted	5			(5.6p)			12.9p

* Football trading represents amortisation, impairment and profit/(loss) on disposal of intangible fixed assets, and other football trading-related income and expenditure.

Consolidated balance sheet 

as at 30 June 2010

		30 June	30 June
		2010	2009
	Note	£'000	£'000
Non-current assets
Property, plant and equipment		123,552	103,338
Intangible assets		115,660	128,432
		239,212	231,770
Current assets
Inventories		1,066	1,172
Trade and other receivables		35,909	37,738
Current tax receivable		697	1,104
Cash and cash equivalents		11,285	19,622
		48,957	59,636
Total assets		288,169	291,406
Current liabilities
Trade and other payables		(86,776)	(89,579)
Interest bearing loans and borrowings		(24,117)	(13,810)
Provisions		(1,595)	(1,211)
		(112,488)	(104,600)
Non-current liabilities
Interest bearing overdrafts and loans		(65,761)	(66,504)
Trade and other payables		(18,833)	(37,871)
Deferred grant income		(2,127)	(2,211)
Deferred tax liabilities		(18,459)	(18,157)
		(105,180)	(124,743)
Total liabilities		(217,668)	(229,343)
Net assets		70,501	62,063
Equity
Share capital		6,177	4,640
Share premium		25,217	11,638
Equity component of convertible redeemable preference shares ("CRPS")		3,774	3,805
Revaluation reserve		-	2,240
Capital redemption reserve		595	595
Retained earnings		34,738	39,145
Total equity	6	70,501	62,063

Consolidated statement of changes in equity 

for the year ended 30 June 2010

	Share	Share	Equity		Capital	Profit
	capital	premium	component	Revaluation	redemption	and loss
	account	account	of CRPS	reserve	reserve	account	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance as at 1 July 2009	4,640	11,638	3,805	2,240	595	39,145	62,063
Loss for the year	-	-	-	-	-	(6,647)	(6,647)
Transfer of revaluation reserve	-	-	-	(2,240)	-	2,240	-
CRPS converted in the period	37	79	(31)	-	-	-	85
Ordinary share issue	1,500	13,500	-	-	-	-	15,000
At 30 June 2010	6,177	25,217	3,774	-	595	34,738	70,501

For the year ended 30 June 2009

	Share	Share	Equity		Capital	Profit
	capital	premium	component	Revaluation	redemption	and loss
	account	account	of CRPS	reserve	reserve	account	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance as at 1 July 2008	4,639	11,637	3,806	2,288	595	19,645	42,610
Profit for the year	-	-	-	-	-	23,164	23,164
Amortisation of revaluation reserve	-	-	-	(48)	-	48	-
CRPS converted in the period	1	1	(1)	-	-	-	1
Final dividend on equity shares relating to the year ended 30 June 2008	-	-	-	-	-	(3,712)	(3,712)
At 30 June 2009	4,640	11,638	3,805	2,240	595	39,145	62,063

Consolidated statement of cash flows

for the year ended 30 June 2010

		Year ended 30 June 2010	Year ended 30 June 2009
		£'000	£'000
Cash flow from operating activities
(Loss)/profit from operations		(1,542)	36,791
Adjustments for:
Amortisation and impairment of intangible assets		39,990	37,288
Profit on disposal of intangible assets		(15,250)	(56,500)
Profit on disposal of property, plant and equipment		-	(3)
Depreciation of property, plant and equipment		2,423	2,842
Capital grants release		88	66
Foreign exchange (gain)/loss		(755)	2,235
(Increase)/decrease in trade and other receivables		(4,865)	12,928
Decrease in inventories		107	712
Decrease in trade and other payables		(344)	(6,415)
Cash flow from operations		19,852	29,944
Interest paid		(3,071)	(4,342)
Interest received		83	1,080
Income tax refund/(paid)		602	(750)
Net cash flow from operating activities		17,466	25,932
Cash flows from investing activities
Acquisitions of property, plant and equipment, net of proceeds		(22,984)	(32,048)
Acquisitions of intangible assets		(61,992)	(68,609)
Proceeds from sale of intangible assets		34,499	47,180
Net cash flow from investing activities		(50,477)	(53,477)
Cash flows from financing activities
Dividends paid		-	(3,712)
Ordinary share issue		15,000	-
Proceeds from borrowings		13,750	19,612
Repayments of borrowings		(4,076)	(4,016)
Net cash flow from financing activities		24,674	11,884
Net decrease in cash and cash equivalents		(8,337)	(15,661)
Cash and cash equivalents at start of the period		19,622	35,283
Cash and cash equivalents at end of year		11,285	19,622

Notes to the accounts

For the year ended 30 June 2010

1. The financial information set out in this preliminary announcement does not constitute statutory financial statements for the years ended 30 June 2010 or 2009, for the purpose of the Companies Act 2006, but is derived from those statements. Statutory financial statements for 2010, on which the Group's auditors have given an unqualified report which does not contain statements under Section 498 (2) or (3) of the Companies Act 2006, will be filed with the Registrar of Companies prior to the Group's next annual general meeting. Statutory financial statements for 2009 have been filed with the Registrar of Companies. The Group's auditors have reported on those accounts; their reports were unqualified and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006.

The preliminary announcement for the year ended 30 June 2010 was approved by the Board of Directors on 10 November 2010.

2. Operating segments

All revenues disclosed are derived from external customers. Segment operating profit represents the profit earned by each segment without allocation of central administration costs and certain recharges. This is the measure reported to the Group's Board for the purpose of resource allocation and assessment of segment performance.

Class of business	Football		Property		Group
	2010	2009	2010	2009	2010	2009
	£'000	£'000	£'000	£'000	£'000	£'000
Revenue	118,955	112,242	859	770	119,814	113,012
Segment operating profit/(loss)	22,808	18,631	(134)	(241)	22,674	18,390
Player trading operating costs	(39,466)	(38,099)	-	-	(39,466)	(38,099)
Profit on disposal of player registrations	15,250	56,500	-	-	15,250	56,500
Net finance charges	(4,362)	(2,810)	(635)	(583)	(4,997)	(3,393)
(Loss)/profit before taxation	(5,770)	34,222	(769)	(824)	(6,539)	33,398
Property, plant and equipment	38,890	40,947	84,662	62,391	123,552	103,338
Intangible assets	115,660	128,432	-	-	115,660	128,432
Non-current assets	154,550	169,379	84,662	62,391	239,212	231,770
Total assets	205,965	230,927	82,204	60,479	288,169	291,406
Total liabilities	(128,704)	(166,248)	(88,964)	(63,095)	(217,668)	(229,343)
Segment net assets/(liabilities)	77,261	64,679	(6,760)	(2,616)	70,501	62,063

The vast majority of the Group's operations are conducted in the United Kingdom.

3. Revenue

Revenue, which is almost all derived from the Group's principal activity, is analysed as follows:

	2010	2009
	£'000	£'000
Revenue comprises:
Gate receipts - Premier League	20,123	19,792
Gate receipts - cup competitions	6,726	8,065
Sponsorship and corporate hospitality	25,763	27,363
Media and broadcasting	51,519	44,811
Merchandising	7,793	6,960
Other	7,890	6,021
	119,814	113,012

All revenue except for £859,000 (2009: £770,000) derives from the Group's principal activity in the United Kingdom and is shown exclusive of VAT.

In addition to the amounts shown, the Group recognised finance income of £1,358,000 in 2010 and £4,563,000 in 2009. Consequently total revenue is £121,172,000 (2009: £117,575,000).

4. Profit/(loss) from operations

This is stated after charging/(crediting) the following:

	2010	2009
	£'000	£'000
Depreciation of property, plant and equipment:
- owned	2,770	2,842
Amortisation of intangible fixed assets	39,991	37,288
Amortisation of grants	(88)	(66)
Restructuring	-	2,822
Charitable donations	12	27
Operating lease rentals:
- land and buildings	277	289
- other	167	153
Foreign exchange (gain)/loss	(801)	2,272

5. Earnings per share

Earnings per share has been calculated using the weighted average number of shares in issue in each year.

	2010	2009
	£'000	£'000
Earnings for the purpose of basic earnings per share being net (loss)/profit attributable to equity holders of the Company	(6,647)	23,164
Accretion of CRPS liability	236	558
Earnings for the purpose of diluted earnings per share	(6,411)	23,722
Weighted average number of ordinary shares for the purposes of basic earnings per share	117,911,574	92,793,219
Convertible redeemable preference shares	90,317,964	91,063,038
	208,229,538	183,856,257
Basic (loss)/earnings per share	(5.6p)	25.0p
Diluted (loss)/earnings per share	(5.6p)	12.9p

There are no ordinary share options outstanding at the year end (2009: nil). On conversion of the CRPS the fully diluted share capital at year end would be 213,860,549 shares (2009: 183,862,111 shares).

The convertible redeemable preference shares are not considered to be dilutive in the current year as they would reduce the loss per share.

6. Reconciliation of movements in Group shareholders' funds

	2010	2009
	£'000	£'000
Opening shareholders' funds	62,063	42,610
(Loss)/profit for the year	(6,647)	23,164
Ordinary 5p shares issued during the year	15,000	-
Dividend payment	-	(3,712)
Conversion of CRPS to ordinary shares	85	1
Net addition to shareholders' funds	8,438	19,453
Closing shareholders' funds	70,501	62,063

During the year the Group transferred the remaining balance on its revaluation reserve to retained earnings. The revaluation surplus had arisen from previous revaluations.

7. An Annual General Meeting of Tottenham Hotspur plc will be held at Bill Nicholson Way, 748 High Road, Tottenham, London N17 0AP at 2.00pm on 14 December 2010. The annual report and accounts of the Company for the year ended 30 June 2010 will be sent to shareholders shortly and will then be available to be downloaded from the Company's website www.tottenhamhotspur.com.

 

END

 

 

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