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Financial Statements |
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for the Year Ended 31 May 2022 |
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for |
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The Grimsby Town Football Club Limited |
REGISTERED NUMBER:
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Financial Statements |
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for the Year Ended 31 May 2022 |
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for |
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The Grimsby Town Football Club Limited |
The Grimsby Town Football Club Limited (Registered number: 00034760) |
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Contents of the Financial Statements |
for the Year Ended 31 May 2022 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 4 |
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The Grimsby Town Football Club Limited |
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Company Information |
for the Year Ended 31 May 2022 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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Chartered Accountants |
Newland House |
The Point |
Weaver Road |
LINCOLN |
Lincolnshire |
LN6 3QN |
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BANKERS: |
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50-52 Victoria Street West |
GRIMSBY |
N E Lincolnshire |
DN31 1BL |
The Grimsby Town Football Club Limited (Registered number: 00034760) |
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Balance Sheet |
31 May 2022 |
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31/5/22 | 31/5/21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
Stocks | 6 |
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Debtors | 7 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 8 |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
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9 |
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NET (LIABILITIES)/ASSETS | ( |
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CAPITAL AND RESERVES |
Called up share capital | 12 |
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Revaluation reserve | 13 |
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Retained earnings | 13 | ( |
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SHAREHOLDERS' FUNDS | ( |
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The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
The Grimsby Town Football Club Limited (Registered number: 00034760) |
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Balance Sheet - continued |
31 May 2022 |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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The Grimsby Town Football Club Limited (Registered number: 00034760) |
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Notes to the Financial Statements |
for the Year Ended 31 May 2022 |
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1. | STATUTORY INFORMATION |
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The Grimsby Town Football Club Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Turnover |
Turnover represents all income arising from the ordinary activities of the company and excludes transfer fees receivable and Value Added Tax. Match receipts are shown after deduction of League and Football Association levies and amounts due to visiting clubs. |
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Going concern |
In assessing the appropriateness of the going concern assumption the directors have produced detailed budgets. These budgets show that cash inflows may be insufficient to meet the company's day to day working capital requirements. The directors have also indicated their willingness and ability to support the company by providing adequate loan facilities to enable it to meet its financial obligations as they fall due for a period of twelve months from the date on which these financial statements are signed. Therefore, having made appropriate enquiries, the financial statements make no provision for any adjustment should the going concern basis not be appropriate. |
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Tangible fixed assets |
Tangible fixed assets are stated at cost or valuation net of depreciation and provisions for impairment. No depreciation has been provided on freehold property, as Blundell Park continues to be valued in the financial statements at an amount at least equivalent to the likely net disposal proceeds. Depreciation in respect of other tangible fixed assets is provided for at the following rates on a straight line basis calculated to write-off the cost or valuation, less any estimated residual value, of each asset over its useful economic life. |
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Motor vehicles | 25% |
Computer equipment | 33% |
Fixtures, fittings and equipment | 15% |
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Financial instruments |
Financial instruments are recognised in the company's statement of financial position when the company becomes the party to the contractual provisions of the instrument. |
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Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
The Grimsby Town Football Club Limited (Registered number: 00034760) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 May 2022 |
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2. | ACCOUNTING POLICIES - continued |
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Taxation |
The charge for taxation is based upon the results for the year and takes into account taxation deferred through timing differences between the treatment of certain items for taxation and accounting purposes. Deferred tax is recognised without discounting in respect of these timing differences which have arisen but not yet reversed by the balance sheet date except as otherwise required by FRS 102. |
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Leases |
Assets held under finance leases are capitalised as tangible fixed assets and are depreciated over the shorter of the lease term and their useful economic life. The capital element of obligations are recorded as liabilities, the interest element being charges to the profit and loss account evenly over the period of the lease. |
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Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
The Grimsby Town Football Club Limited (Registered number: 00034760) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 May 2022 |
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2. | ACCOUNTING POLICIES - continued |
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Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
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Cash and cash equivalents |
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. |
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Classification of financial liabilities |
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 company after deducting all of its liabilities. |
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Basic financial liabilities |
Basic financial liabilities, Including creditors and loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payment is discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
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Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
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Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the Impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
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Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
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If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
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The Grimsby Town Football Club Limited (Registered number: 00034760) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 May 2022 |
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2. | ACCOUNTING POLICIES - continued |
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
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Grants |
Grants received in respect of expenditure which is charged to the profit and loss account are dealt with in the profit and loss account in the year of receipt. Grants received in respect of expenditure of a capital nature are treated as deferred income and released to the profit and loss account by instalments over the expected useful economic life of the related assets. |
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Player trading |
The costs associated with the acquisition of players' registrations are capitalised as intangible fixed assets. These costs are fully amortised in equal annual instalments over the period of the players' contracts including any agreed extensions. Players' registrations are written down for impairment when the amortised value exceeds the amount recoverable through use or sale. Future costs which may become due are recognised within the original cost of acquisition if, in the opinion of the directors, it is probable that these costs will be incurred. Where similar circumstances arise from the disposal of players' registrations, these future receipts are not recognised as part of the proceeds of disposal until such time as the events upon which these receipts are dependent, are known to have occurred. No value is recognised In the financial statements for players developed within the company. |
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Signing on fees |
Signing on fees are charged to the profit and loss account in the accounting period when they become due under the terms of the players' contract. Instalments due in the future are not provided for but are noted as contingent liabilities. Signing on fees paid as a consequence of the transfer of a players' registration are included In the profit and loss on disposal of players' registrations. |
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Deferred income |
Deferred income comprises amounts received from sponsorship, season tickets and other income, which is released to the profit and loss account on a straight line basis over the period to which it relates. |
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Pension costs and other post-retirement benefits |
The company contributes to defined contribution pension schemes for certain employees, the assets of which are held separately from those of the company in independently administered funds. Pension costs represent contributions payable by the company in the year. |
The Grimsby Town Football Club Limited (Registered number: 00034760) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 May 2022 |
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2. | ACCOUNTING POLICIES - continued |
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Government grants |
Government grants received are treated as deferred creditors and credited to the profit and loss account over the estimated useful life of the relevant fixed assets. |
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Coronavirus Job Retention Scheme grants are charged to the profit and loss account in the period they relate. |
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Disclosure adjustment to comparative figures |
During the year an exercise was undertaken to re-map certain income and expenditure types in the financial statements so that they better represented the current commercial arrangements improving financial transparency. This exercise was also completed to re-state the 30 June 2021 figures. There has been no adjustment to the reported profit but some transactions have moved between sales and cost of sales. |
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Going Concern |
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Management have prepared and reviewed budgets for the next twelve months and the impact of the business plan on cash flows. Following this review and the confirmation from investors of their intention to support the company it has been concluded that it is appropriate for the financial statements to be prepared on the going concern basis. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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4. | INTANGIBLE FIXED ASSETS |
Player |
registrations |
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COST |
At 1 June 2021 |
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Disposals | ( |
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At 31 May 2022 |
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AMORTISATION |
At 1 June 2021 |
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Amortisation for year |
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Eliminated on disposal | ( |
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At 31 May 2022 |
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NET BOOK VALUE |
At 31 May 2022 |
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At 31 May 2021 |
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The Grimsby Town Football Club Limited (Registered number: 00034760) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 May 2022 |
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5. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | and | Motor |
property | fittings | vehicles | Totals |
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COST OR VALUATION |
At 1 June 2021 |
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Additions |
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Disposals |
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At 31 May 2022 |
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DEPRECIATION |
At 1 June 2021 |
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Charge for year |
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Eliminated on disposal |
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At 31 May 2022 |
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NET BOOK VALUE |
At 31 May 2022 |
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At 31 May 2021 |
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The Grimsby Town Football Club Limited (Registered number: 00034760) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 May 2022 |
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5. | TANGIBLE FIXED ASSETS - continued |
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Cost or valuation at 31 May 2022 is represented by: |
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Freehold | Fixtures & | Motor |
property | fittings | vehicles | Totals |
£ | £ | £ | £ |
Valuation in 2016 | 273,000 | - | - | 273,000 |
Cost | 1,346,146 | 551,225 | 19,796 | 1,917,167 |
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1,619,146 | 551,225 | 19,796 | 2,190,167 |
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If freehold property had not been revalued, it would have been included at the following historical cost: |
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2022 | 2021 |
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Cost | 1,346,146 | 1,346,146 |
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Aggregate depreciation | 969,146 | 969,146 |
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Value of land in freehold land and buildings | 377,000 | 377,000 |
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The company's freehold property was valued on the 23 September 2016 by an external valuer, Mr Andrew Clark BSc FRICS MCIArb, of Clark Weightman Limited Chartered Surveyors and Commercial Property Consultants. The valuation has been based on the assumption that the property continues to be owner occupied for the purposes of the company's business, although the valuation also assumed that it would be redeveloped in the future with the market value being derived from comparable recent transactions for development land on an arms length basis. In the opinion of the directors, the current fair value of the property is not materially different. |
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6. | STOCKS |
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2022 | 2021 |
£ | £ |
Goods for resale | 77,953 | 57,998 |
The Grimsby Town Football Club Limited (Registered number: 00034760) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 May 2022 |
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7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/5/22 | 31/5/21 |
£ | £ |
Trade debtors |
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Other debtors |
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Prepayments and accrued income |
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8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/5/22 | 31/5/21 |
£ | £ |
Other loans (see note 10) |
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Hire purchase contracts (see note 11) |
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Trade creditors |
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Deferred grants | 16,256 | 16,256 |
Tax |
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Social security and other taxes |
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Other creditors |
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Accruals and deferred income |
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Accrued expenses |
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9. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
31/5/22 | 31/5/21 |
£ | £ |
Other loans (see note 10) |
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Hire purchase contracts (see note 11) |
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Amounts owed to group undertakings |
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Deferred grants |
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10. | LOANS |
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An analysis of the maturity of loans is given below: |
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2022 | 2021 |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans | 449,375 | 869,800 |
Amounts falling due after one year: |
Other loans | 1,500,000 | 750,000 |
The Grimsby Town Football Club Limited (Registered number: 00034760) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 May 2022 |
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11. | LEASING AGREEMENTS |
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Minimum lease payments under hire purchase fall due as follows: |
2022 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year | 1,540 | 4,599 |
Between one and five years | - | 1,699 |
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1,540 | 6,298 |
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12. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
20,649 | Ordinary | £100 | 2,064,900 | 2,064,900 |
5,100 | Ordinary | £50 | 255,000 | 255,000 |
1,600 | Ordinary | £25 | 40,000 | 40,000 |
20,000 | Ordinary | £1 | 20,000 | 20,000 |
2,379,900 | 2,379,900 |
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13. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
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At 1 June 2021 | ( |
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(2,333,721 | ) |
Deficit for the year | ( |
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At 31 May 2022 | ( |
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(3,265,084 | ) |
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14. | CONTINGENT LIABILITIES |
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There are potential liabilities and assets in respect of the company's player trading. Due to the variable nature of these amounts, it is not possible to calculate the maximum potential liability or asset. |
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15. | POST BALANCE SHEET EVENTS |
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On the 5th June 2022 the club were successful in securing promotion back to the English Football League. At the year end the outcome of this match was unknown and therefore income and costs relating to it can not be brought into these financial statements. The net cost of promotion had these costs been included would have been £171,277. |
The Grimsby Town Football Club Limited (Registered number: 00034760) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 May 2022 |
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16. | ULTIMATE PARENT COMPANY |
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1878 Partners Limited is regarded by the directors as being the company's ultimate parent company. Mr A J Pettit and Mr J Stockwood own 100% of the issued ordinary share capital, |