Interim Results

Tottenham Hotspur PLC 28 March 2008 28 March 2008 TOTTENHAM HOTSPUR PLC Interim Results for the Six Months Ended 31 December 2007 Summary • Revenue increased 14% to £54.5m (6 months ended 31 December 2006: £47.8m) with higher income for media and broadcasting, merchandising and sponsorship. • Profit from operations before player trading and amortisation were lower at £9.9m (6 months ended 31 December 2006: £14.2m) principally as a result of one-off costs incurred in the period. • Cash generation continues to be strong. • Continued investment during the period with intangible assets increasing by 29% to £69.7m (31 December 2006: £54.1m). • Total assets increased 14% to £177.0m (31 December 2006: £155.7m). Daniel Levy, Chairman of Tottenham Hotspur plc, said: 'Revenue continues to grow as we drive all areas of the Club. The decrease in profit from operations before player trading and amortisation reflects one-off costs including the changes to football management made during the period. The business continues to generate good levels of cash and the increase in assets reflects our continued desire to invest for long term growth.' Enquiries: Daniel Levy, Chairman Matthew Collecott, Finance Director Tel: 020 8365 5322 Tottenham Hotspur plc www.tottenhamhotspur.com John Bick Tel: 07917 649362 Hansard Group Chairman's Statement Financial Results After announcing record results for our last financial year, I am pleased to report that we have continued to make progress in the first six months of the year. Revenue, in particular, has improved when compared to the corresponding period last year as the Club aims to surpass the annual revenue figure of £100m for the second successive year. The 14% increase in total revenue to £54.5m is primarily due to the continued strength of the Premier League brand and the central FAPL TV rights deal. Premier League gate receipts were down by £0.9m which reflects one less game being played during the period than last season. We continue to play to full or near capacity every match. Success in the Cup competitions, which was a key factor for us last season, has again proven to be the case for us this campaign, as the club progressed to the semi-finals of the League Cup during the period and went on to win the final in February. Additionally we progressed through the group stages of the UEFA Cup for the second successive season. Media and broadcasting revenues rose by 63% to £17.8m in the period primarily due to the central FAPL TV rights deal. This figure is also boosted by the sale of rights for the Club's home UEFA Cup matches. Merchandising income increased for the second successive year with sales up £1.4m for the first six months of the year to £6.6m, representing a rise of 26%. The success of this season's new kits, as well as enthusiasm for the Club's 125th anniversary, has contributed to this continued growth. Sponsorship income rose by £0.5m whilst Corporate Hospitality was £0.1m down, due to playing one less league game than in the corresponding period last year. Operating expenses before amortisation of intangible assets were £44.6m and show an increase on the prior period in part due to an enlarged playing squad, but also due to one-off costs relating to changes in First Team management. Amortisation of intangible assets has increased by 48% to £12.4m, reflecting the significant investment that the Club has made in its squad over the last twelve months. Profit on the disposal of intangible assets is down from £15.0m to £4.3m, last year's figures having included the sale of Michael Carrick to Manchester United. Finance expenses have increased by £1.3m to £2.3m reflecting a full six months interest due on the £20 million secured loan notes drawn down in 2006 in respect of the Academy and further property related loans. The Club generated a profit from operations before player trading and amortisation of £9.9m. Taking into account amortisation and profit on disposal of intangible assets, the profit from operations was £1.8m. The Club's financial position has strengthened amongst Europe's elite clubs, as reported in the Deloitte Football Money League. Based on last year's financial statements, the Club moved up four places to be the eleventh wealthiest team in Europe based on revenues - the highest ranked Club that did not participate last season in the UEFA Champions League with the benefit of the associated revenues. Additionally, this ranking was achieved despite the fact that we have the smallest stadium capacity of the other top fifteen sides. This re-emphasises the potential upside for the Club from Champions League football and the impact a new Stadium would have, more of which is discussed later. On the pitch This period's league performance has on the whole been disappointing and this has affected our league position, which in turn determines our league merit fee payment. Changes were made to First Team management. We welcomed Juande Ramos, one of Europe's most successful coaches and winner of the UEFA Cup in the preceding two years, to the Club as Head Coach. He was joined by Assistant Coaches, Marcos Alvarez and Gus Poyet; the latter being welcomed back having previously been a hugely popular player for the Club. They have made important changes and instilled key processes in the management of the First Team, which resulted in immediate improvements. In addition to internal change our Football Management team lobbied the Premier League and Clubs for a change from five to seven substitutes on the bench from next season, which was accepted by the Premier League's shareholders. We believe it is important that there is a level playing field across all European leagues. We constantly refer to ourselves as the most attractive footballing league in the world, but in order to both maintain that label and improve our competitive edge, it is important to give our managers and coaches greater choice on the substitutes bench, enabling them to be more creative tactically. That was the objective behind us bringing this proposal to the table. Additionally, it should also mean that younger players from the Academy can be given an opportunity to break into the First Team. We were disappointed to lose Gareth Bale to injury, joining Benoit Assou-Ekotto, as long-term injured players, but they are both young and promising players. Outside of this period, and largely to cover positions affected by injuries, we acted in the January window and brought Chris Gunter, Jonathan Woodgate, Gilberto and Alan Hutton to the Club - all internationals for their respective countries - essentially bringing forward the acquisition of summer 2008 transfer targets. Since we last reported Phil Ifil, Lee Barnard, Wayne Routledge and Jermain Defoe have departed. We wish them well and thank them for their services to the Club. It is important to reiterate that we continue to look for excellent young talent. The investment over the last few years in some of Europe's best young prospects often goes unnoticed, yet the Club continues to invest at a time when competition for young players to join the Academy and development squad is high. We welcomed Yuri Berchiche and Danny Rose to our Academy. It would be remiss not to mention Robbie Keane's contribution to the Club and to congratulate him on his 100th goal for the club. We thank Robbie for his enthusiasm and commitment to our club. Off the pitch In respect of our two main capital expenditure projects, namely the Training Centre and the Stadium, we were delighted to announce, after years of detailed planning, that we were granted planning permission at local Council level for a new, state-of-the-art, First Team and Academy training facility at Bull's Cross, Enfield. As with all major developments we have further steps on the planning process to undertake, and hope to be in a position to report on the future timetable of this project shortly. A facility of this nature will enable the Club to continue to compete for, retain and train the best available talent at all levels. As indicated at the EGM earlier this year, we remain on track to announce our preferred option for the stadium development by the end of the first half of 2008. Clearly the development of a larger stadium will be instrumental in growing the Club and continuing to move forward and compete at the highest level in all competitions and we must seek to maximise this income stream. You will have heard me stress on several occasions however that this must be achieved in a manner that does not undermine the current financial stability of the Club, nor should it prevent us from continuing to invest in the First Team. Recent events have clearly shown that it has been this ability to invest in the team that has produced the record financial results we have enjoyed reporting in recent years. The global financial markets do not currently present the best environment in which to raise funds for major capital projects and we shall have to look closely at our options and the merits of each option going forward. I shall report on this as the process develops. Summary and outlook This year saw us celebrate the 125th year of the Club's existence - a period in which this Club has enjoyed the highs and the lows that accompany this great game. We celebrated it in many ways, focusing our thoughts on the man many of us believe was singularly instrumental in delivering our 'glory' decades - Bill Nicholson. Our rich heritage was remembered and recounted and we should be rightly proud of the Club's strong heritage. We did, however, also take this year to remind ourselves that we must look ahead and believe even greater times are yet to come and the last few months have certainly given us that belief, a period which saw us defeat top clubs playing the style of football for which our Club is known. Once again the Club accommodated a great number of games as we continued to compete in four competitions. The Cup games produced terrific performances. The disappointment we all felt at going out of the UEFA Cup by the narrowest of margins, on penalties to PSV Eindhoven, was testament to how far the squad has come in a short period of time under the management and coaching of Juande and his team. Which only leaves me to mention the highlight of our 125th year - winning the League Cup. A tremendous achievement that saw us beat close London rivals Arsenal and Chelsea, and the clearest indication yet that we have now begun a return to winning ways. With European qualification confirmed, the challenge is now to continue to improve and to establish ourselves as a main contender. I firmly believe that these financial results and the results on the pitch mean we are ideally positioned for future growth and success. My final words, as always, will go to our fans. When other clubs struggle to fill their stadia for a midweek, televised game, our supporters continue to fill the Lane and give our team their utmost support. They continued to travel to Europe and, I am pleased to note, were given a reason to travel to Wembley - a day when we won both on and off the pitch, such was the immense support. Thank you. D P Levy 27 March 2008 Unaudited Consolidated Income Statement For the six months ended 31 December 2007 Six months Six months Year ended 31 ended 31 ended 30 December December June 2007 2006 2007 Note £'000 £'000 £'000 Revenue 3 54,480 47,770 103,091 Operating Expenses (44,592) (33,616) (73,363) Profit from operations before football trading and amortisation 9,888 14,154 29,728 Amortisation of intangible assets (12,418) (8,391) (18,070) Impairment of intangible assets - - (762) Profit on disposal of intangible assets 4 4,312 14,970 18,721 Profit from operations 1,782 20,733 29,617 Finance income 484 - 53 Finance expenses (2,292) (966) (1,924) (Loss)/profit on ordinary activities before (26) 19,767 27,746 taxation Taxation 5 (163) (6,220) (8,587) (Loss)/profit for the period (189) 13,547 19,158 (Loss)/earnings per share - basic 7 (0.2p) 14.6p 20.6p (Loss)/earnings per share - diluted 7 (0.2p) 7.8p 11.0p The results for the above and prior periods all derive from continuing operations. Unaudited Consolidated Statement of Changes in Equity For the six months ended 31 December 2007 Share Share Equity Revaluation Capital Profit Total capital premium component reserve redemption and loss account account of CRPS reserve account £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 30 June 2007 as originally 4,631 11,556 3,838 2,336 565 25,634 48,560 stated Effect of adoption of IFRS - - - - - (2,432) (2,432) Balance as at 1 July 2007 as restated 4,631 11,556 3,838 2,336 565 23,202 46,128 Loss for the period - - - - - (189) (189) Amortisation of the revaluation reserve - - - (25) - 25 - Ordinary 5p shares redeemed during the (7) - - - 7 (239) (239) period CRPS converted during the period 38 81 (32) - - - 87 Final dividend on ordinary shares - - - - - (3,733) (3,733) relating to the year ended 30 June 2007 At 31 December 2007 4,662 11,637 3,806 2,311 572 19,066 42,054 Unaudited Consolidated Balance Sheet as at 31 December 2007 31 December 31 December 30 June 2007 2006 2007 £'000 £'000 £'000 Non-current assets Property, plant and equipment 66,088 49,934 51,057 Intangible assets 69,734 54,148 71,061 135,822 104,082 122,118 Current assets Inventories 1,404 629 1,219 Trade and other receivables 8 28,701 24,725 29,843 Cash and cash equivalents 11,110 26,285 28,283 41,216 51,639 59,345 Total assets 177,038 155,721 181,463 Non-current liabilities Interest bearing overdrafts and loans 9 (48,546) (39,458) (39,756) Trade and other payables 8 (8,445) (7,525) (17,785) Deferred grant income (2,176) (2,228) (2,205) Deferred tax liabilities (3,034) (3,700) (3,416) (62,201) (52,911) (63,162) Current liabilities Trade and other payables 8 (62,310) (48,782) (60,045) Current tax liabilities (2,983) (6,456) (5,747) Interest bearing loans and borrowings (6,702) (5,901) (5,698) Provisions (788) (814) (683) (72,783) (61,953) (72,173) Total liabilities (134,984) (114,864) (135,335) Net assets 42,054 40,857 46,128 Equity Share capital 4,662 4,643 4,631 Share premium 11,637 11,556 11,556 Equity component of CRPS 3,806 3,838 3,838 Revaluation reserve 2,311 2,360 2,336 Capital redemption reserve 572 553 565 Retained earnings 19,066 17,907 23,202 Total equity 42,054 40,857 46,128 Unaudited Consolidated Statement of Cash Flows For the six months ended 31 December 2007 6 months ended 6 months ended Year ended 31 December 31 December 30 June 2007 2006 2007 £'000 £'000 £'000 Cash flow from operating activities Profit from operations 1,782 20,733 29,617 Adjustments for: Amortisation of intangible assets 12,418 8,391 18,070 Impairment of intangible assets - - 762 Profit on disposal of intangible assets (4,312) (14,970) (18,721) Profit on disposal of property, plant and equipment - - (14) Depreciation of property, plant and equipment 1,395 1,039 2,231 Capital grants release 29 35 69 Foreign exchange loss/(profit) 746 - (145) Decrease/(increase) in trade and other receivables 1,106 217 (14,138) (Increase)/decrease in inventories (185) 146 (444) Decrease in trade and other payables (1,843) (23,770) (8,765) Cash flow from operations 11,136 (8,179) 8,522 Interest paid (2,505) (753) (826) Interest received 487 306 1,150 Income tax paid (3,360) (1,840) (5,176) Net cash flow from operating activities 5,758 (10,466) 3,670 Cash flows from investing activities Acquisitions of property, plant and equipment, net of (16,425) (1,470) (3,512) proceeds Acquisitions of intangible assets (20,889) (35,016) (53,474) Proceeds from sale of intangible assets 8,417 19,006 27,849 Net cash flow from investing activities (28,898) (17,480) (29,137) Cash flows from financing activities Dividends paid (3,733) - - Redemption of ordinary shares (233) (31) (291) Proceeds from borrowings 11,250 20,000 20,000 Debt issue costs (275) - (200) Repayments of borrowings (1,041) (319) (340) Net cash flow from financing activities 5,967 19,650 19,169 Net decrease in cash and cash equivalents (17,173) (8,296) (6,298) Cash and cash equivalents at start of period 28,283 34,581 34,581 Cash and cash equivalents at end of period 11,110 26,285 28,283 Notes to the Consolidated Interim Statements For the six months ended 31 December 2007 1. Basis of preparation The group's next annual consolidated financial statements, for the year ending 30 June 2008, will be prepared in accordance with International Financial Reporting Standards adopted for use in the EU ('IFRSs'). These condensed consolidated interim financial statements have been prepared on the basis of the recognition and measurement requirements of IFRSs that are effective (or available for early adoption) in those annual consolidated financial statements. These requirements are still subject to change and to additional interpretation. The financial information presented in this interim statement does not constitute full financial information within the meaning of Section 240 of the Companies Act 1985. The comparative figures for the year ended 30 June 2007 differ from the statutory financial statements for the period. Those financial statements, which were prepared under UK GAAP, received an unqualified audit report and did not include a statement under s237(2) or (3) of the Companies Act 1985. Those statements have been delivered to the Registrar of Companies. Adjustments have been made to those figures so that they comply with the recognition and measurement requirements of IFRSs. These adjustments have been applied to the opening balance sheet at 1 July 2006 and to the comparative information at 31 December 2006, and are set out in note 2. Accounting policies Changes to accounting policies arising from the transition to IFRS are set out in note 2. The following accounting policies have been identified by the Board as being the most significant to the financial statements. Revenue Revenue represents income receivable from football and related commercial activities, exclusive of VAT. Gate receipts and other matchday revenue is recognised as the games are played. Sponsorship and similar commercial income is recognised over the duration of the respective contracts. The fixed element of broadcasting revenues is recognised over the duration of the football season whilst facility fees received for live coverage or highlights are taken when earned. Merit awards are accounted for only when known at the end of the football season. Player costs Remuneration of players is charged in accordance with the terms of the applicable contractual agreements and any discretionary bonus when there is a legal or contractual obligation. Signing-on fees are charged evenly, as part of operating expenses, to the income statement over the period of the player's contract. These fees are paid over the period of the player's contract. Loyalty fees are accrued, as part of operating expenses, to the income statement over the period to which they relate. Property, plant and equipment Freehold land is not depreciated. Leasehold property is amortised over the term of the lease. Other fixed assets are depreciated on a straight-line basis at annual rates appropriate to their estimated useful lives as follows: Freehold properties 2% - 4% Motor vehicles 20% General plant and equipment 10% - 33% The Group has taken advantage of the transitional provisions of IAS 16 'Property, Plant and Equipment' and retained the book amounts of certain assets which were revalued prior to the implementation of that Standard. The properties were last revalued at 31 July 1998 and the valuations have not subsequently been updated. Intangible fixed assets The costs associated with the acquisition of players and key football management staff registrations are capitalised as intangible fixed assets, at the fair value at the date of the acquisition. The acquisition costs are fully amortised over their useful economic lives, in equal annual instalments over the period of the respective contracts. Where a contract life is renegotiated the unamortised costs, together with the new costs relating to the contract extension, are amortised over the term of the new contract. Provision is made for any impairment of the carrying value of the playing squad should the carrying value of the squad as a whole exceed the amount recoverable from the squad as a whole through use or sale. Where a player is not considered to be part of the playing squad a provision for impairment would be made if the individual player's carrying value exceeds the amount recoverable through use or sale. Under the conditions of certain transfer agreements, further fees will be payable to the vendors in the event of the players concerned making a certain number of First Team appearances or on the occurrence of certain other specified future events. Liabilities in respect of these additional transfers are accounted for, as provisions, when it becomes probable that the number of appearances will be achieved or the specified future events will occur. Profits or losses on the disposal of these registrations represent the consideration receivable, net of any transaction costs, less the unamortised cost of the original registration. Preference shares Convertible Redeemable Preference Shares ('CRPS') are regarded as compound instruments, consisting of a liability component and an equity component. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible debt. The difference between the proceeds of issue of the CRPS and the fair value assigned to the liability component, representing the embedded option to convert the liability into equity of the group, is included in equity. Issue costs were apportioned between the liability and equity components of the CRPS based on their relative carrying amounts at the date of issue. The portion relating to the equity component is charged directly against equity. The finance expense on the liability component is calculated by applying the prevailing market interest rate for similar non-convertible debt to the liability component of the instrument. The difference between this amount and the interest paid is added to the carrying amount of the liability component. These statements were approved by the Board of Directors on 27 March 2008, and are not audited. These results were announced to the Stock Exchange on 27 March 2008 and are being posted to all shareholders. Copies will be available to personal callers at the registered office, Bill Nicholson Way, 748 High Road, Tottenham, London, N17 0AP. 2. Explanation of transition to IFRS The effect of the changes to the group's accounting policies as a result of IFRS adoption were as follows: Reconciliation of profit from UK GAAP to IFRS 6 months Year ended ended 31 30 June December 2006 2007 £'000 £'000 Profit for the period as previously reported under UK GAAP 13,764 18,895 IFRS Adjustments: Intangible assets (IAS 38) 1 176 Discounting of long term receivables and payables (IAS 39) (80) (156) Employee benefits (IAS 19) (138) - Unwinding of deferred tax discount (IAS 12) - 153 Deferred tax on business combinations (IAS 12) - 90 Profit for the period as restated under IFRS 13,547 19,158 Reconciliation of equity from UK GAAP to IFRS As at As at 31 As at 30 June December 1 July 2007 2006 2006 £'000 £'000 £'000 Total equity as previously reported under UK GAAP 48,560 43,690 29,956 IFRS Adjustments: Intangible assets (IAS 38) (1,928) (1,143) (585) Discounting of long term receivables and payables (IAS 39) 1,369 564 85 Employee benefits (IAS 19) - (138) - Unwinding of deferred tax discount (IAS 12) (1,603) (1,756) (1,756) Deferred tax on business combinations (IAS 12) (270) (360) (360) Total equity as restated under IFRS 46,128 40,857 27,340 IAS 38 Intangible assets Under IAS 38 'Intangible assets', any intangible assets acquired on deferred terms are recorded at the fair value at the date of acquisition. The fair value represents the net present value of the costs of acquiring players and key football management staff registrations. Under UK GAAP the acquisition costs were not discounted. The discounted asset results in a reduction to the income statement amortisation charge. IAS 39 Financial instruments: recognition and measurement In accordance with IAS39 'Financial Instruments: recognition and measurement', any intangible assets acquired on deferred terms are recorded at the discounted present value at the date of acquisition. The associated payable is then increased to the settlement value over the period of deferral, with this value being charged as a notional finance cost through the income statement. Under UK GAAP the deferred creditor had not been discounted. Similarly any intangible asset disposed of on deferred terms will be initially recorded at the discounted present value of future receipts and the receivable is then increased to the settlement value over the period of deferral with this value being charged as notional finance income through the income statement. Under UK GAAP the deferred debtor had not been discounted. In respect of intangible asset acquisitions, the differing rate at which the finance cost and amortisation are recognised in the income statement produces a deferred tax credit. In respect of intangible asset disposals the finance income recognised produces a deferred tax asset. The adjustments are stated net of deferred tax. IAS 19 Employee benefits IAS 19 'Employee benefits' requires that holiday pay earned but not taken by employees should be recognised at the accounting period end. The adjustments are stated net of deferred tax. IAS 12 Income tax a) Unwinding of deferred tax discount; under IFRS it is prohibited to discount a deferred tax liability or asset and as such the Group has unwound the discount it previously applied under UK GAAP. b) Deferred tax arising on business combinations; IAS12 requires a deferred tax liability to be recognised on fair value adjustments on consolidation resulting in carrying amounts of assets or liabilities in the consolidated financial statements that differ from the carrying amounts in the acquired entity's financial statements, and consequently from their tax bases where equivalent adjustments are not recognised for tax purposes. This results in a deferred tax liability in respect of the fair value of properties acquired as part of business combinations. There was no such requirement under UK GAAP. 3. Revenue analysis Revenue, which is all derived from the Group's principal activity, is analysed as follows: 6 months ended 6 months ended Year ended 31 December 2007 31 December 2006 30 June 2007 £'000 £'000 £'000 Revenue comprises: Gate receipts - Premier League 9,540 10,443 18,069 Gate receipts - Cup competitions 3,727 4,511 12,770 Media and broadcasting 17,767 10,905 33,734 Sponsorship and corporate hospitality 13,254 12,854 25,427 Merchandising 6,570 5,199 7,051 Other 3,622 3,858 6,040 54,480 47,770 103,091 4. Profit on disposal of intangible assets 6 months ended 6 months ended Year ended 31 December 2007 31 December 2006 30 June 2007 £'000 £'000 £'000 Proceeds 8,489 18,751 23,075 Net book value of disposals (4,177) (3,781) (4,354) 4,312 14,970 18,721 5. Taxation A corporation tax charge of £163,000 has been accrued as at 31 December 2007 on the profit before tax (adjusted for the interest charge in respect of the Convertible Redeemable Preference Shares) of £544,000 - an effective tax rate of 30%. 6. Dividends The Directors do not recommend an interim dividend (31 December 2006: £nil). During the period a final dividend on ordinary shares of £3.7m was paid. 7. (Loss)/earnings per share Earnings per share has been calculated using the weighted average number of shares in issue in each period. 6 months ended 6 months ended Year ended 31 December 2007 31 December 2006 30 June 2007 £'000 £'000 £'000 Basic earnings ((loss)/profit for the period) (189) 13,547 19,158 Interest charge in respect of CRPS - 800 1,091 Diluted (loss)/earnings (189) 14,347 20,249 Number Number Number Weighted average number of shares in issue 92,892,956 92,895,538 92,843,042 Effect of dilutive potential on ordinary shares: CRPS - 91,845,600 91,845,600 92,892,956 184,741,138 184,688,642 Basic (loss)/earnings per share (0.2p) 14.6p 20.6p Diluted (loss)/earnings per share (0.2p) 7.8p 11.0p The CRPS are not dilutive in the current period as they would reduce loss per share. 8. Receivables and Payables Analysis As at 31 As at 31 As at December 2007 December 2006 30 June 2007 £'000 £'000 £'000 Receivables: Amounts recoverable within one year Trade receivables (excluding transfer debtors) 5,215 5,664 13,391 Other receivables (excluding transfer debtors) 5,969 - 2,110 Receivables arising from player transfers 6,053 9,729 7,637 Other tax and social security - - 546 Prepayments and accrued income 9,174 6,727 5,417 26,411 22,120 29,102 Receivables: Amounts recoverable in more than one year Receivables arising from player transfers 2,290 2,605 741 Total receivables 28,701 24,725 29,843 Trade and other payables: Amounts due within one year Trade payables, accruals and deferred income (excluding 46,456 38,012 48,877 transfer creditors) Other tax and social security 2,375 2,309 2,460 Payables arising for player transfers 13,479 8,461 8,708 Total trade and other payables: Amounts due within one year 62,310 48,782 60,045 Trade and other payables: Amounts due after more than one year Other payables (excluding transfer creditors) - - 127 Payables arising from player transfers 8,445 7,525 17,658 Total trade and other payables: Amounts due after more than one 8,445 7,525 17,785 year Total trade and other payables 70,755 56,307 77,830 9. Loan facility In October 2007, the Group arranged a loan facility of up to £75,000,000 secured by a floating charge over certain freehold and leasehold properties. In November 2007, there was an initial drawdown of £11,250,000. The loan is being repaid over ten years in six-monthly instalments. Interest will be charged quarterly on the outstanding amount of the loan, at a rate which tracks LIBOR. The loan is included in the financial information net of £275,000 of associated loan arrangement costs which are being amortised over the term of the loan. INDEPENDENT REVIEW REPORT TO TOTTENHAM HOTSPUR PLC We have been engaged by the company to review the condensed set of financial statements in the interim financial report for the six months ended 31 December 2007 which comprises the income statement, the statement of changes in equity, the balance sheet, the statement of cash flows and related notes 1 to 9. We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. This report is made solely to the company in accordance with International Standard on Review Engagements 2410 issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state to them in an independent review 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, for our review work, for this report, or for the conclusions we have formed. Directors' responsibilities The interim financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim financial report in accordance with the AIM Rules of the London Stock Exchange. As disclosed in notes 1 and 2, the annual financial statements of the group will be prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this interim financial report have been prepared in accordance with the accounting policies the group intends to use in preparing its next annual financial statements. Our responsibility Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the interim financial report based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the six months ended 31 December 2007 is not prepared, in all material respects, in accordance with the AIM Rules of the London Stock Exchange. Deloitte & Touche LLP Chartered Accountants and Registered Auditor 27 March 2008 London UK Directors, Officers and Advisers Executive Chairman D P Levy Executive Director M J Collecott Non-Executive Directors E M Davies Sir K E Mills Company Secretary M J Collecott Registered office Bill Nicholson Way 748 High Road Tottenham London N17 OAP Registered number 1706358 Auditors Deloitte & Touche LLP Chartered Accountants London Bankers HSBC Bank plc 70 Pall Mall London SW1Y 5EZ AIM nominated adviser and broker Seymour Pierce Limited 20 Old Bailey London EC4M 7EN Registrars Capita Registrars Northern House Woodsome Park Fenay Bridge Huddersfield West Yorkshire HD8 0LA This information is provided by RNS The company news service from the London Stock Exchange

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