FOR THE YEAR ENDED 30 JUNE 2022
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
COMPANY INFORMATION
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
CONTENTS
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2022
The Company operates as a professional football club, currently competing in Sky Bet League One of the EFL (English Football League). The principal activity of the Company continues to be the operation of a professional football club, together with associated activities.
The directors present their strategic report for the year ended 30 June 2022.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
The year under review was another strong one for Argyle, as the club continues to make great strides towards financial sustainability. Having met targets set for the past three years, significant progress has been made both on and off the field despite several challenges, including from the continuing impact of the Covid-19 pandemic and the present economic climate.
This strong financial performance was in part the result of an average attendance at Home Park of 13,130, which was the highest since Argyle last competed in the Championship. We also noted rises in other sources of income, including from our hospitality offering and our retail activities. Led by the Board of Directors and the Executive Leadership Team, the club continues to commit significant capital expenditure towards improving facilities in the stadium for our fans. As an example, investment in innovations such as the big screen - installed in August of this year with most of the capital expenditure authorised during the accounting period under review – will result in further improvements to our supporters’ match-day experience, while generating a return on investment through realising commercial opportunities for our sponsorsand advertisers. Similarly, the Board approved capital expenditure that has improved the look and feel outside Home Park stadium. Our new digital products, Argyle TV and mobile app service, generated impressive levels of income and did not see much of a decrease from the Covid-impacted 20/21 season, in which our digital services provided supporters with the only way to watch their club's fixtures. The success of these services, coupled with our increased attendances, demonstrates deeper and wider supporter engagement. Our strategy over the last few years has been to broaden our fan base by using available resources to make Argyle attractive to an increasing number of fans. It has been a successful strategy that has enabled us to continue to increase the resources available for the first team. We also benefited from the proceeds of a fantastic Emirates FA Cup run, which culminated in a wonderful performance at Stamford Bridge against the then European Champions, Chelsea, where the team came agonisingly close to pulling off a great cup upset. Transfer income predominantly came as a result of two departures during the accounting period. We received compensation following the departure of our first team manager Ryan Lowe to Preston North End, and one of our Academy prospects also departed in 21/22. While enabling increases in the football budget and significant infrastructure investment, these results and strong financial performance in recent years have enabled us to maintain a healthy cash balance. As can be seen in this year’s figures, the cash balance has remained steady at £6.8m. This balance enables us to continue to invest in infrastructure, and to develop the club for the long term. Earnings before interest, taxation, depreciation and amortisation (EBITDA) during the year under review were around £0.8m – a strong financial performances. However, you will note that the profit or loss statement shows a final deficit of £0.2m for the year. That is calculated by incorporating a depreciation charge associated with the development of the Mayflower Grandstand, which opened on New Year’s Day 2020, and a smaller amount of amortisation relating to player acquisitions in previous seasons.
The playing budget was increased in the 21/22 season – and performance certainly reflected that on the pitch, with the team narrowly missing out on a spot in the League One play-offs despite amassing 80 points. The club strategy is to fund further year on year improvements to the first team in a sustainable fashion, by allocating some of the increased turnover and profitability into the playing budget.
In line with our Vision and Values, and our mission to become a sustainable Championship club, much of the revenue generated in the 21/22 period was immediately designated for further infrastructure improvements, designed to enhance the club’s revenue generation, facilities development, and first-team budget.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
There remain several capital investment projects under review, including the proposed acquisition of land in Ernesettle and associated plans to develop our own elite top level facilities. In the 21/22 financial year, we have accrued expenses in the due diligence and planning for these future projects– but it is expected that these will greatly enhance club facilities for years to come.
There remains a clear intent to continue pursuing infrastructure investment at levels that cannot be met by existing cash flows and cash balances. The Board of Directors recognised that, despite our healthy cash reserves, additional funding would be beneficial for the infrastructure projects that will support our longer-term ambitions. In August 2022, therefore, following the end of the financial year under review, we were delighted to welcome a new group of investors in the club who share our long-term vision – with Argyle Green, LLC acquiring a 20% stake - in exchange for a £4m cash injection directly into the club. While this does not alter the club strategy, or our overarching Vision and Values, the investment will further strengthen our financial position and enable us to finance larger projects that we are confident will deliver substantial long-term benefits to Argyle. As a Board of Directors, we are extremely proud of the results achieved across financial year 21/22 – but, more importantly, look forward with excitement to the bright future ahead. On behalf of the Board, I would like to thank our outstanding executive team, led by Andrew Parkinson, our CEO. We have gained increasing recognition as being a well-run club that is thinking and investing for the long term while making sure that day-to-day operations are run efficiently and to a very high standard. We would also like to thank our supporters, partners, and the wider Argyle community for their valued contributions to another strong year for our club.
The principal risk to the company is the performance of the team, which may affect revenue and therefore profitability of match day activities and sponsorship.
In addition to this, the company faces the risks and uncertainties associated with the broader economic climate. Inflation has been predicted to rise to the highest level since 1976. This could impact the company in several ways, but most notably, increased supplier costs, increased energy costs, wage inflation and potentially reduced discretionary spend on live entertainment and events which is the key primary source of income for the company.
Ordinarily, a comparison between financial metrics relating to the profit or loss statement would be more meaningful. However, as a result of the significant impact on financial performance of the COVID-19 pandemic in the 2020/21 season, the comparisons are not as meaningful. Nonetheless, the financial KPIs demonstrate continued strong financial performance and progress towards our stated mission.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
Under section 172(1) of the Companies Act 2006, the Board has a duty to act in good faith and in a way that would be most likely to promote the success of the Company for the benefit of its shareholders, whilst having regard to matters set out in S172(1) (a-f) of the Act:
(a)
the likely long term consequences of decisions;
(b)
the interest of the company’s employees;
(c)
the need to foster the company’s business relationships with suppliers, customers and others;
(d)
the impact of the company’s operations on the community and the environment;
(e)
the desirability of the company maintaining a reputation for high standards of business and conduct; and
(f)
the need to act fairly as between the company’s owners.
To discharge their section 172(1) duties, the Board had regard to the factors set out above, together with the club’s values, in making the principal decisions taken by the company.
This report was approved by the board
and signed on its behalf.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2022
The Directors present their report and the financial statements for the year ended 30 June 2022.
The loss for the year, after taxation, amounted to £
240,453
(2021:
profit
£
376,034
)
.
No ordinary dividends were paid. No dividend is recommended.
The Directors who served during the year were:
In December of the 19/20 financial year, the directors and management formulated a clear mission for the club, consistent with our previously communicated Vision and Values. Our Vision is to be a successful football club, supported or respected by everybody in the South West and many beyond. At that point, we defined a successful football club as being one that was a sustainable Championship club within five years.
We will be operationally financially sustainable, without recourse to shareholders for new equity or loans. That, in turn, implies that our revenues will be sufficient to cover our operating expenses and maintenance requirements, and our playing squad. Sustainability is also our aim in football terms, whereby we will have a reasonable probability of being able to maintain a position in the Championship. To help us achieve this stated aim, we will continue to invest in key areas to provide the club with a platform for long term sustainability and success. The recent investment made by Argyle Green, LLC will provide us with an opportunity to do this. As noted above, in the 21/22 financial year we have continued to make significant progress towards this aim. We carry out a robust strategic planning process each year that is adapted and has evolved accordingly. We monitor progress against this strategic plan regularly throughout each year. These financial results provide us with an excellent platform to continue to strengthen Argyle on and off the pitch and we remain excited about the future of our club.
The club places considerable value on engagement with its employees and, within limits of commercial confidentiality, has continued to keep them fully informed of matters that affect progress of the company and that may be of interest to them as employees.
The club is committed to inclusion and works to eliminate discrimination, so that employees can work in a diverse environment free from intimidation, victimisation or harassment.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
Engagement with the Company’s stakeholders is a key component of club operations. This is achieved by:
∙
Suppliers - Engaging closely with suppliers via a detailed and transparent tender process, pre-start meetings and monthly progress meetings, using fair contract terms, paying promptly and providing safe working conditions. Using local suppliers where possible, whose values align with our own.
∙
Fans - Satisfying our fans and supporters is a top priority. Our relationship with them is both open and welcoming.
∙
Communities - We are committed to serving the community in which we live and work, and intend Plymouth Argyle to be a good representative for Plymouth and the wider South West.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
SECR Energy Use and Carbon Emissions Disclosure
The company discloses its energy use and greenhouse gas emissions in line with the requirements of the Companies Act 2006 (Strategic and Directors' Reports) Regulations 2013 and latest 2018 regulations.
Targets
Plymouth Argyle Football Club have committed to reduce emissions in line with climate science, with a pledge to reduce gross emissions by 50% by 2030 I ntensity Measurement The intensity metric chosen is average FTE. The average FTE was 83 at the financial year ending the 30th June 2022. This was chosen as the most suitable metric as the club’s carbon emissions are closely linked to average FTE.
Measures Taken to Improve Energy Efficiency
Implemented during the financial year ended 30 June 2022
∙
LED lights installed throughout Home Park.
∙
Pledged to UNFCCC Race to Zero (United Nations Framework Convention on Climate Change) to cut emissions by 50% by 2030.
∙
Released PAFC Environmental & Net Zero Plan.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
∙
Replaced plastic bags for paper bags in club shop.
∙
Partnered with Too Good to Go, ensuring all surplus food from events and match days is re-used in the community, avoiding entering the waste stream.
Implemented since the financial year ended 30 June 2022
∙
Partnered with Event Cup Solutions to eradicate single use plastic on matchdays.
∙
Rainwater harvesting system installed in Mayweather Grandstand, resulting in 40,000 litres of saved water.
∙
200 KW solar PV system installed at Home Park. Generating circa 25% of energy demand.
Planned
∙
Procurement of 100% clean renewable energy, backed by clean UK REGO's from Wind, Solar and Hydro generation.
∙
Phasing out of fossil fuels in club travel, through electrification or bridging drop in substitute sustainable fuels like HVO.
∙
Phasing out procurement activities with companies who are not demonstrating a commitment to sustainability
Planned
∙
Procurement
of
100% clean renewable energy, backed by clean UK REGO's from Wind, Solar and Hydro generation.
∙
Phasing out of fossil fuels in club travel, through electrification or bridging drop in substitute sustainable fuels like HVO.
∙
Phasing out procurement activities with companies who are not demonstrating a commitment to sustainability.
Following the end of the financial year under review, two significant events have occurred.
On 2 August 2022, the Company issued 5,305,000 ‘A’ Shares to Argyle Green, LLC, in exchange for payment of £4,000,000. On 9 August 2022, the Company announced that it had reached an agreement in principle with Parkway (Sports & Social Club) Limited to acquire land and buildings in Ernesettle, Plymouth.
The auditors, Bishop Fleming LLP, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
This report was approved by the board and signed on its behalf.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2022
The Directors are responsible for preparing the Strategic report, the Directors' report and the
financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year
. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
∙
select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙
make judgements and accounting estimates that are reasonable and prudent;
∙
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
We have audited the financial statements of Plymouth Argyle Football Club Limited (the 'Company') for the year ended 30 June 2022, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity
and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,
including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙
We have considered the nature of the sector, control environment, and financial performance;
∙
We have considered the results of enquiries with management and the directors in relation to their own identification and assessment of the risks of irregularities within the entity;
∙
We have reviewed the documentation of key processes and controls and performed walkthroughs of transactions to confirm that the systems are operating in line with documentation;
∙
We have obtained and reviewed the entity's documentation of their policies and procedures relating to:
°
Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
°
Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
°
The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
∙
We have considered the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we have considered the opportunities and incentives that may exist within the entity for fraud and identified the highest area of risk to be in relation to income recognition, with a particular risk in relation to year-end cut-off and completeness of funding. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.
We have also obtained an understanding of the legal and regulatory frameworks that the entity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, FRS 102 and UK tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the entity’s ability to operate or avoid a material penalty. These included the data protection legislation, health and safety regulations, employment law, food hygiene, alcohol licensing, EFL rules and regulations, and FA regulations.
Our procedures to respond to risks identified included the following:
∙
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙
Enquiring of management in relation to actual and potential claims or litigation;
∙
Performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
∙
Reviewing board meeting minutes;
∙
Performing detailed transactional testing in relation to the recognition of revenue with a particular focus around the year-end cut off and completeness of funding; and
Page 13
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED (CONTINUED)
∙
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business.
We also communicated identified laws and regulations and potential fraud risks to all members of the engagement team and remained alert to possible indicators of fraud or non-compliance with laws and regulations throughout the audit.
As a result of the inherent limitations of an audit, there is a risk that not all irregularities, including a material misstatement in the financial statements or non-compliance with regulation, will be detected by us. This risk increases the further removed compliance with a law and regulation is from the events and transactions reflected in the financial statements, given we will be less likely to be aware of it, or should the irregularity occur as a result of fraud rather than a one-off error, as this may involve intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' report.
This report is made solely to the Company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Salt Quay House
4 North East Quay
Sutton Harbour
PL4 0BN
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
Page 15
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
REGISTERED NUMBER:
07796376
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 20 to 34 form part of these financial statements.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
30 JUNE 2022
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
30 JUNE 2021
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2022
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
The Company is a private company limited by shares, registered in England and Wales. The registered
number is 07796376. The address of the registered office is Home Park, Plymouth, PL2 3DQ.
2.
ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
In assessing the appropriateness of the going concern assumption, management has produced detailed cash flow forecasts, considering all reasonably foreseeable potential scenarios and material uncertainties in relation to income and costs. Under all of these scenarios, the Club can meet its liabilities as they fall due for a period of not less than 12 months from the date of approval of these financial statements.
The directors have therefore concluded that it is appropriate for the financial statements to be prepared on the going concern basis.
Season ticket and sponsorship income is recognised as and when matches are played. Any income relating to matches unplayed at the year end is included within deferred income.
Central distributions from the Football Association and English Football League are recognised in the Statement of comprehensive income in the relevant financial period for the season to which the income relates. All other income is recognised on the provision of service or transfer of economic benefit. Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2.
ACCOUNTING POLICIES (continued)
The Company is a member of a multi-employer plan. It is not possible to identify the Company's share of the underlying assets and liabilities of the scheme and it is therefore accounted for as if it were a defined contribution scheme. The assets of the scheme are held separately from those of the company, being invested with an insurance company. Contributions to the scheme are based on actuarial advice, and charged to the profit and loss account as they become payable. The company continues to make contributions in respect of its share of the deficit of the defined benefit section of the Football League Limited Pension and Life Assurance Scheme. As one of the participating employees the company is advised only of its share of the scheme deficit and recognises a liability in respect of this.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2.
ACCOUNTING POLICIES (continued)
GOODWILL
OTHER INTANGIBLE ASSETS
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Assets under construction are not depreciated until construction has been completed and they are brought into use.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2.
ACCOUNTING POLICIES (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Company are assigned to those units.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2.
ACCOUNTING POLICIES (continued)
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
The assessment of the useful economic life and residual value of the Company's intangible assets involves an element of judgement based on historical experience with similar assets as well as anticipation of future events which may impact their useful life. The Company undertakes a review of the remaining useful lives of assets each year and will reduce the remaining useful lives, or impair where necessary.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
There were no factors that may affect future tax charges.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
13.
TANGIBLE FIXED ASSETS (CONTINUED)
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Share premium account
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £38,828 (2021: £29,012) . Contributions totalling £23,348 (2021: £14,638) were payable to the fund at the reporting date and are included in creditors.
The Company is also a member of the multi-employer Football League Limited Pension and Life Assurance defined benefit scheme. It is not possible to identify its share of the assets and liabilities, and therefore to allocate any actuarial surplus or deficit on a consistent basis; consequently contributions are expensed in the profit and loss account as they become payable. The assets of the scheme are held separately from those of the company in an independently administered fund. A liability of £120,961 (2021: £98,099) was payable at the reporting date and is included in creditors. A pension cost charge of £47,190 (2021: £58,203) has been included in the profit and loss account.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
On 2 August 2022, the Company issued 5,305,000 ‘A’ Shares to Argyle Green, LLC, in exchange for payment of £4,000,000. On 9 August 2022, the Company announced that it had reached an agreement in principle with Parkway (Sports & Social Club) Limited to acquire land and buildings in Ernesettle, Plymouth.
The ultimate controlling party is
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