FOR THE YEAR ENDED 30 JUNE 2023
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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 2023
The Company operates as a professional football club, currently competing in Sky Bet Championship 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 2023.
Introduction
The 2022/23 season saw incredible success on the pitch, as Argyle clinched the Sky Bet League One title, therefore returning to the Sky Bet Championship for the first time since 2010. This is the culmination of a strategy set out in 2019 by the Board. This success is thanks to the superb efforts of everyone at the Club with the extraordinary support of our fans and partners. Performances on the pitch were backed up by significant progress off the pitch as our Club continued to expand its revenue base, in this first full year back to normal following the COVID-19 pandemic. Part of our Club’s mission is to achieve financial sustainability, and this remains a key pillar for us. As shareholders continue to commit funds to the Club, we continue to use those funds to invest in infrastructure. This investment will significantly improve facilities for fans, improve the environment for players now and in the future, and brings us a Club befitting our status as a Championship team. On-pitch performance Clinching the League One title on the last day of the campaign was a clear highlight, topping off a remarkable season for the Club. Our first team manager Steven Schumacher, his players and his staff secured several prestigious awards. These included the Sky Bet League One Manager of the Year for the 2022/23 campaign. We were delighted that Steven agreed to a two-year extension to his contract, committing his future to the Club until 2027. He is an exciting young manager who shares the Club’s vision and values, and plays an exciting, attacking brand of football that the Argyle fans have grown to love. Bali Mumba, on loan to us from Norwich City, was the Sky Bet League One Young Player of the Season. We were delighted that he agreed to join us on a permanent transfer following the end of the financial year. Further Club Success Argyle were clearly successful on the pitch but, beyond the playing squad, the Club went from strength to strength and was recognised in a number of ways:
∙The EFL Gold Family Excellence Award, which showcases the work we are doing to develop the fan experience and make Argyle a family-friendly football club.
∙The Stadium Business Awards and Football Business Awards - the Sustainability and Community Award
∙Football Business Awards - Best Corporate Social Responsibility Scheme and Silver Award for Best Use of Technology in Football
∙EFL Community Club of the Year, South West and West
∙EFL League One - Community Club of the Year
∙Plymouth Live - Corporate Social Responsibility Winner
∙Number 1 out of 92 clubs in football league for financial management in a Football Sustainability Matrix developed by London based finance firm, LCP
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
Financial Performance
We remain committed to transparency in our financial activities, and below we aim to set out clearly the state of the finances within Plymouth Argyle. The Club is reporting a loss for the financial year of £3.4m. This loss has been affected by a series of non-recurring items, and the underlying trading loss is lower. These non-recurring costs primarily relate to:
∙Contingent payments on loan transfer agreements triggered by promotion
∙Bonus payments to first team players and management triggered by promotion
∙A legacy payment to a bank in accordance with a promotion deed the Club entered into when it exited administration in 2011
We remain committed to financial sustainability, and our financial position remains strong. The Club is debt-free and retains a strong cash balance of over £5m at the year-end.
Revenues were at record levels, at almost £15m. Key factors to achieving this have been:
∙Average attendances at Home Park of 15,582;
∙Sales of 37,000 tickets for the Papa John’s Trophy final at Wembley Stadium in April;
∙Strong performances from Hospitality, with match days mostly sold out and mid-week demand strong for our conferencing and banqueting facilities;
∙Record levels of commercial income;
∙Record sales at the Argyle Superstore – including incredible demand for our replica shirts; and
∙The return of major concerts to Home Park, with appearances by Muse and Rod Stewart.
As a result of these revenues, we were able to invest in operations throughout the Club. Most notably, we were able to increase our spending on player wages by over a third compared to the prior season. We also continued to invest in improvements to fan experience and digital content.
This remains a key part of our strategy, whereby increases in income are used to finance investments both on and off the pitch. Capital Investment In August 2022, we welcomed a new group of investors when Argyle Green, LLC acquired a 20% stake in exchange for cash. Subsequently, majority shareholder Simon Hallett agreed to buy 3.3 million shares from some outgoing investors in that entity. Departing investors included Argyle Green managing members Michael and David Mincberg, with the former withdrawing from the Club's Board of Directors. Nick Giannotti became the sole managing member of Argyle Green and remains as an Argyle director. As a result, the Club has brought in £4m of new investment. It remains a key objective that shareholder funds are invested in infrastructure to ensure the long-term strength of the Club. Last year we reported that several capital investment projects were under review, including plans to develop our own elite top-level facilities. Excellent progress has been made on this front, and, during the year, we invested over £6 million including in:
∙The strategic acquisition of Goals (now known as Harpers Football Centre);
∙Improvements to the car park area behind the Beacon Electrical Mayflower Grandstand;
∙A Big Screen within the stadium;
∙Solar panels on the roof of the stadium;
∙The creation of a fan zone behind the Beacon Electrical Mayflower Grandstand; and
∙Various improvements to kiosks, stadium concourses and fan facilities.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
Future Outlook
In the coming financial year, we expect to see a similar pattern. We will continue to develop facilities and infrastructure, to improve fan experience, and improve facilities for football staff and players. We were also delighted to announce our active involvement in the redevelopment of Brickfields Sports Centre into a community hub. This proposed £11m investment by the Club (into a £21m project) will provide superb facilities for our ambitious youth academy. It will also provide a permanent home for the women’s team, another important part of our long-term vision. Strategic acquisitions such as these form part of the long-term plans set out by the Board. Summary Our vision has been to be a successful football club supported or respected by everyone in the South West and many beyond. We have come a long way towards realising that vision. The Board are very proud of the Club’s progress and achievements this year and once again extremely grateful to all our stakeholders. We have an exciting, young and talented group of players who have much room for development, and one of the brightest young managers in football. We look forward to the future ahead as the Club goes from strength to strength. On behalf of the Board, we would again like to thank our outstanding staff, led by Andrew Parkinson as CEO. We are recognised as being a values-driven and well-run club that is forward thinking and investing for the long term, while making sure that day-to-day operations are run efficiently and to very high standards. That is the result of our governance structures being strong and our executive team delivering superbly on our strategic plans. We would also like to thank our supporters, partners, and the wider Argyle community for their valued contributions during this promotion season. You are the reason why we exist and have enabled this progress. It was another strong year for our Club and we look forward to continued success in coming years.
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.
Trade debtors are monitored closely to minimise the risk of bad debts and amounts due from other clubs are covered by specific football creditor rules that help minimise these risks. Management maintains a risk register which is reviewed by the Board at each board meeting. Appropriate mitigations and actions are put in place accordingly. * Includes contingent payments made following achievement of promotion to the EFL Championship.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
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 2023
The Directors present their report and the financial statements for the year ended 30 June 2023.
The loss for the year, after taxation, amounted to £3,446,715 (2022: loss £240,453).
No ordinary dividends were paid. No dividend is recommended.
The Directors who served during the year were:
In December 2019, 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.
Following promotion to the Championship during the year under review, attention turned to how the Club can evolve that strategy and look forward with further optimism for the next five years to continue to grow our football club. The new Mission set by the Board is to be “a sustainable top six Championship club within five years, with Premier League aspirations”. 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. This is evident with projects like Brickfields and the ongoing investment around Home Park. Our Vision and Values will remain unchanged. We are excited about the future of Argyle.
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 2023
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.
In accordance with the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 we disclose our UK energy and Greenhouse Gas emissions:
UK GHG Emissions & Energy consumption - Financial Year ending 30 June 2023
Methodology
Greenhouse gas emissions are reported in gross tonnes CO2 equivalent in line with the requirements set out in the UK Government’s Environmental Reporting Guidelines (March 2019 version) and use the UK Government GHG (Green House Gas) Conversion Factors for Company Reporting (2023 version 1.1). The operational control approach for the club’s UK activities has been applied and is guided by the GHG Protocol – Corporate Standard (revised edition). Emissions from electricity are location based and report grid purchased electricity (Scope 2) only. Natural gas emissions are calculated based on Gross Calorific Values and transport on Net Calorific Values. Energy consumption is based on supplier’s invoices and include a limited number of estimated meter readings. Transport energy includes fuel used in club (Scope 1) and employees’ vehicles used for business purposes (Scope 3).
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
Energy efficiency action within the reporting year
The following actions have been taken during the financial year ended 30 June 2023:
∙Partnered with Event Cup Solutions to reduce single use plastic on matchdays.
∙Rainwater harvesting system installed in Beacon Electrical Mayflower Grandstand.
∙200 KW solar PV system installed at Home Park. Generating circa 25% of energy demand.
∙Procurement of 100% clean renewable energy, backed by clean UK REGO's from Wind, Solar and Hydro generation.
∙Installed ten EV charging points at Home Park stadium.
∙Continued to reduce the proportion of paper tickets in favour of digital.
∙Undertook programme of landscaping and tree planting around Home Park stadium.
∙Installed flush sensors on all urinals at Home Park stadium to reduce water consumption.
Climate Change Targets The club remains committed to halving our emissions by 2030, with a long-term target of achieving net zero by 2050. We are signatories to the Network Net Zero Community, which is aligned to the United Nations’ Race to Zero initiative.
On 3 May 2023, the Company entered into a share subscription agreement with its investors for funding of up to approximately £11,000,000 by way of a rights issue of 14,588,762 ‘A’ Shares. The first tranche of the share issue completed on 2 November 2023, the second tranche will be completed on 31 March 2024.
The auditors, Bishop Fleming LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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 2023
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 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity, 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.
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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
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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 2023
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
REGISTERED NUMBER:07796376
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 33 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 2023
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2023
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 2023
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 2023
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 2023
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 2023
2.ACCOUNTING POLICIES (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an 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.
Acquisition of trade and assets is accounted for using the acquisition method. The cost of an acquisition is measured at the aggregate of the acquisition date fair value of assets transferred and liabilities incurred. The identifiable assets acquired and liabilities assumed are principally measured at acquisition date fair value. Acquisition costs incurred are expensed. Any contingent consideration to be transferred by the acquirer is recognised at acquisition date fair value.
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 2023
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 2023
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 2023
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
On 2 August 2022, the Company issued 5,305,000 ‘A’ Shares to Argyle Green, LLC, in exchange for payment of £3,999,997.
Share premium account
Profit and loss account
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PLYMOUTH ARGYLE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 £74,385 (2022: £38,828). Contributions totaling £28,528 (2022: £23,348) 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 £98,265 (2022: £120,961) was payable at the reporting date and is included in creditors. A pension cost charge of £Nil (2022: £47,190) 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 2023
The ultimate controlling party is
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