FOR THE YEAR ENDED 30 JUNE 2021
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
COMPANY INFORMATION
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
CONTENTS
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2021
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 2021.
The year under review was one of the most unpredictable periods in the club’s modern history, with almost a whole season of Sky Bet League One football played behind closed doors – depriving the club of one of our most important sources of revenue - match-day income.
The club has nevertheless continued to make progress towards its publicly-stated aim of becoming a sustainable Championship level club. Despite a season shrouded in uncertainty, we were able to consolidate our status in Sky Bet League One, with a continuing focus on developing first-team players in our academy. A combination of generous backing from our supporters, sponsors, and other stakeholders, coupled with a cautious and mitigating approach from the Board of Directors and senior management, ensured that the club was able to deliver a profit of £376,043 during the year under review. While welcome, this accounting profit alone does not tell the full story of the financial risks to the club, and significant losses were only avoided by strong action from our management team, supported by the Board of Directors, and by the backing of other stakeholders in the club. Most notable were the outstanding support of our fanbase and sponsors, coupled with significant financial recompense from our insurance policies, and a grant from the Premier League. Firstly, our thanks must be expressed to our supporters, whose unparalleled generosity in turning down the offer of a refund for the remainder of the 19/20 season and purchasing season tickets for the 20/21 season, despite little prospect of watching their team live at Home Park, helped to offset the loss of ticket and associated match-day revenues. Similarly, our commercial sponsors continued to support the club, despite the disruption to their own businesses that all faced. In addition, the Government’s furlough scheme, and a restructure within the organisation enabled the club to become more efficient and control expenditure on wages and salaries, helping to protect against the worst possible financial outcomes that the pandemic could have created. The club was also able to make use of our refurbished Mayflower Grandstand conferencing facilities as a mass vaccination centre in partnership with the NHS. We are grateful to the NHS for the financial support that this opportunity gave us, and proud to have been able to support our community with such a valuable asset. While these contributions were vital, the club received significant one-off support payments to help us deal with the effects of the pandemic. Those one-off payments helped turn losses into profits in the accounting year under review, but, of course, will not be received in coming years. The club made a successful claim against its business interruption insurance policy, which secured the maximum claimable amount of around £2.5m. That we were able to make that successful claim is thanks to our management team, and the Board would like both to thank them and congratulate them on this significant achievement. In addition, like all EFL member clubs, Argyle received a grant from the Premier League of nearly £1.2m. We are grateful to the Premier League clubs for this support, and hope that it is a sign that a fairer sharing of the EPL’s revenues with the English football pyramid is on the horizon. These payments, together with furlough support and other grants received, amounted to income of over £4m in the year under review and were crucial in ensuring that the club avoided substantial losses in 20/21. In July 2020, at the peak of the uncertainty, majority shareholder Simon Hallett injected £3.5m into the club to provide security against a worst-case outcome. This was initially delivered in the form of a loan, and very shortly afterwards converted into share equity. Simon has said that this will be his final cash injection into the club. The result is that the club has cash reserves in excess of those held in previous years.
Page 1
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
The COVID-19 pandemic continues, and the future is unusually unclear, so these reserves give us a degree of security that we will be able to deal with the worst that could happen financially. It is important that we protect them and invest appropriately in assets that will serve our fans in the years to come. We will ensure that we have a competitive budget for Ryan, Neil and the team to continue to strengthen the squad. We will continue to invest in the academy, where we are already seeing positive outcomes with several academy graduates featuring regularly in the first team. There are a number projects off the pitch in which we will continue to invest. We have already enhanced the floodlighting at Home Park and introduced Argyle TV, for example, and will seek to make further improvements to our fans’ experience inside and outside the stadium. Given the myriad challenges our industry and community has faced over the year under review, we are encouraged by the financial performance evidenced in these accounts. We are in a strong financial position; we own our stadium and have virtually no debt aside from an interest-free loan that will be repaid through deductions in the basic award payments we receive annually from the EFL. Our supporters - and the community that we proudly represent in Plymouth and the South West - remain at the forefront of our thoughts and actions as we look to rebuild in the wake of the pandemic. Once again, the Board of Directors would like to place on record our gratitude to the Green Army, as well as our commercial partners, for their outstanding and continued support.
The club faces a number of risks and uncertainties and has measures in place to mitigate the impact of these. The revenues of the business are of course susceptible to the on-pitch performance of the football team.
Obviously, COVID-19 still presents significant risks, but as discussed above, the club has made every effort to minimise the impact of this and we are delighted to have been able to welcome our supporters back to Home Park at the start of the 20/21 season. Other risks include recruitment and retention of key personnel, negotiation of key commercial contracts, rules and regulations of the applicable football governing bodies, health and safety considerations and cash management. The club maintains a risk register which is reviewed, discussed and updated regularly.
Ordinarily, we would consider movements in revenue, cash balances, net income from player trading and wage costs as a percentage of turnover as financial key performance indicators. Naturally, the metrics have been significantly impacted by the COVID-19 pandemic reducing the value of a year-on-year comparison. The club continues to monitor these metrics on an ongoing basis.
Non-financial key performance indicators include, amongst others, divisional status, league position, number of season ticket holders, attendances and the number of social media followers.
This report was approved by the board on 15 October 2021
and signed on its behalf.
Page 2
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2021
The directors present their report and the financial statements for the year ended 30 June 2021.
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; and
∙
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.
The profit for the year, after taxation, amounted to £
376,034
(2020:
loss
£
674,076
)
.
No ordinary dividends were paid. No dividend is recommended.
The directors who served during the year were:
Page 3
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
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 Southwest 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 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, our capital investment 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. As noted above, in the 20/21 financial year we have continued to make significant progress towards this aim, despite the challenges of the pandemic. We carry out a robust strategic planning process each year that is adapted and 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.
There have been no significant events affecting the Company since the year end.
The auditors, Bishop Fleming LLP, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
Page 4
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
This report was approved by the board and signed on its behalf.
Page 5
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 2021, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity, the Analysis of Net Debt
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.
Page 6
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
Page 7
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 enviroment, 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
∙In addressing the risk of fraud through management override of controls, testing the appropriateness of
Page 8
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED (CONTINUED)
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
Page 9
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
Page 10
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
REGISTERED NUMBER:
07796376
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 16 to 30 form part of these financial statements.
Page 11
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
30 JUNE 2021
Page 12
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
30 JUNE 2020
Page 13
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
Page 14
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2021
Page 15
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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.
Page 16
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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.
Page 17
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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.
Page 18
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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 larely 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.
Page 19
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.
ACCOUNTING POLICIES (continued)
assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. 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.
Page 20
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Page 21
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Page 22
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Page 23
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
11.
TAXATION (CONTINUED)
There were no factors that may affect future tax charges.
Page 24
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Page 25
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Page 26
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
13.
TANGIBLE FIXED ASSETS (CONTINUED)
Page 27
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Page 28
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
During the year, a total of 3,500,000 shares were issued to one of the directors at par value of £1 each.
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 £29,012 (2020: £24,939) . Contributions totalling £14,638 (2020: £11,679) 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 £98,099 (2020: £60,839) was payable at the reporting date and is included in creditors. A pension cost charge of £58,203 (2020: £Nil) has been included in the profit and loss account.
Page 29
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
The ultimate controlling party is
Page 30
|