Company registration number 11761052 (England and Wales)
FOOTBALL VENTURES (WHITES) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOOTBALL VENTURES (WHITES) LIMITED
COMPANY INFORMATION
Directors
Ms S Brittan
Mr M James
Mr N C Luckock
Company number
11761052
Registered office
University of Bolton Stadium
Burnden Way
Lostock
Bolton
BL6 6JW
Auditor
Sumer Auditco Limited
The Beehive
City Place
Gatwick
RH6 0PA
Bankers
Barclays Bank Plc
The Business Centre
PO Box 144
57 Victoria Square
Bolton
BL1 1FH
FOOTBALL VENTURES (WHITES) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 34
FOOTBALL VENTURES (WHITES) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -
The directors present the strategic report for the year ended 30 June 2023.
Review of the business
Objective
The objective of the Football Ventures Group is to successfully and profitably operate a professional football club and hotel and conference centre.
Strategy
The Directors’ objectives are to consolidate the football clubs position within the EFL and pursue promotion whilst stabilising the business. Furthermore, the Directors’ strategy is to improve the hotel operations and the experience of our guests to the hotel and stadium whilst improving the trading performance of the Group.
The strategy to achieve the objectives of the football club includes the following key elements:
The selection and appointment of an effective football management team;
Identifying talented players and securing these players on contracts within financial parameters;
To develop young players through the club’s B Team and academy system; and
Increasing the Group’s turnover by attracting new supporters and commercial partners and finding innovative ways to utilise the assets of the Group.
Principal risks and uncertainties
The Board acknowledges the risks and uncertainties that affect the Group and seek to minimise these wherever possible.
Risks and uncertainties for the football club arise primarily from the uncertainty of success on the football pitch. These and other risks are recognised and reviewed regularly through the Group’s management and planning processes, which are managed appropriately.
For the hotel business, risks and uncertainties arise principally out of increasing competition, both locally and regionally, and in particular with regards to conference and banqueting facilities. These and other risks are recognised and reviewed regularly through the Group’s management and planning processes and managed appropriately.
Development and performance
This is the fourth year of trading for the Group having purchased the assets out of administration from David Ruben and Partners LLP in the financial year ending 30 June 2020.
Following a respectable 9th place finish in EFL League 1 in the prior year, the club had a strong season, finishing 5th and reaching the League 1 play-offs, losing to Barnsley FC 1-0 in the 2nd semi final leg, to lose 2-1 on aggregate. The average attendance of supporters of 18,814 was a huge increase on the previous season average of 15,439.
The Club had a successful campaign in the Papa Johns EFL Trophy, reaching the final at Wembley, beating Plymouth Argyle FC 4-0 - the biggest ever win in an EFL Trophy Wembley final, in front of a crowd of 79,389.
The hotel's turnover continued to improve as continued investment was put into the facilities.
The group's loss for the year ended 30 June 2023 was £5.461m, up from the reported loss of £3.694m in 2022. The directors monitor performance through production of a detailed annual budget and the comparison of actual performance against budget.
The financial year has seen significant progress as the group continued to invest in the first team squad and stadium improvements, which has resulted in a managed trading loss.
FOOTBALL VENTURES (WHITES) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Key performance indicators
The Directors monitor key performance indicators to ensure they are within acceptable parameters.
They include for the football club:
They include for the hotel:
Other information and explanations
Position at year end
Despite the loss to 30 June 2023, the Group has a sound financial base from which to further improve the business. The Group is reliant on funding from its shareholders and such funding has been and continues to be made available from the shareholders when required.
In the year to 30 June 2023 the Group issued a Bond which raised £4.3m and received shareholder funding of £2.75m, with a further £2.25m being received after the reporting date.
Ms S Brittan
Director
28 March 2024
FOOTBALL VENTURES (WHITES) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2023.
Principal activities
The principal activity of the company and group is that of a professional football club together with related commercial activities, a stadium incorporating an integrated hotel with accommodation, conference and leisure facilities and an integrated business centre.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Ms S Brittan
Mr M James
Mr N C Luckock
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
Auditor
Sumer Auditco Limited were appointed as auditor of the company following the transfer of the audit business from Cowgill Holloway LLP, and are deemed to be reappointed under section 487 (2) of the Companies Act 2006.
FOOTBALL VENTURES (WHITES) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies 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 ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
Ms S Brittan
Director
28 March 2024
FOOTBALL VENTURES (WHITES) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FOOTBALL VENTURES (WHITES) LIMITED
- 5 -
Opinion
We have audited the financial statements of Football Ventures (Whites) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2023 and of the group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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.
Conclusions relating to going concern
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 group's and parent 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 auditor's 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
FOOTBALL VENTURES (WHITES) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FOOTBALL VENTURES (WHITES) LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
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 auditor's 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 identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: laws related to Health and Safety and Employment, UK Companies Act, Pension Legislation, Tax Legislation and English Football League Rules.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.
FOOTBALL VENTURES (WHITES) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FOOTBALL VENTURES (WHITES) LIMITED
- 7 -
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:
Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud
Identifying and assessing the design and effectiveness of controls that management have in place to prevent and detect fraud
Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether management have knowledge of any actual, suspected or alleged fraud;
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 auditor's 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.
Nilesh Modhvadia (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
28 March 2024
Statutory Auditor
The Beehive
City Place
Gatwick
RH6 0PA
FOOTBALL VENTURES (WHITES) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
19,429,171
13,829,584
Cost of sales
(15,709,320)
(11,215,016)
Gross profit
3,719,851
2,614,568
Administrative expenses
(9,184,760)
(8,621,095)
Other operating income
295,872
252,447
Operating loss
4
(5,169,037)
(5,754,080)
Interest receivable and similar income
207
2,311,283
Interest payable and similar expenses
7
(291,678)
(252,027)
Loss before taxation
(5,460,508)
(3,694,824)
Tax on loss
8
Loss for the financial year
(5,460,508)
(3,694,824)
Loss for the financial year is all attributable to the owners of the parent company.
FOOTBALL VENTURES (WHITES) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
2023
2022
£
£
Loss for the year
(5,460,508)
(3,694,824)
Other comprehensive income
-
-
Total comprehensive income for the year
(5,460,508)
(3,694,824)
Total comprehensive income for the year is all attributable to the owners of the parent company.
FOOTBALL VENTURES (WHITES) LIMITED
GROUP BALANCE SHEET
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
9
3,660,742
4,254,375
Other intangible assets
9
10,646,485
10,378,636
Total intangible assets
14,307,227
14,633,011
Tangible assets
10
11,736,169
12,674,631
26,043,396
27,307,642
Current assets
Stocks
13
818,251
616,593
Debtors
14
3,027,670
2,659,137
Cash at bank and in hand
4,199,896
1,561,807
8,045,817
4,837,537
Creditors: amounts falling due within one year
15
(13,401,213)
(11,573,113)
Net current liabilities
(5,355,396)
(6,735,576)
Total assets less current liabilities
20,688,000
20,572,066
Creditors: amounts falling due after more than one year
16
(8,736,793)
(5,935,312)
Net assets
11,951,207
14,636,754
Capital and reserves
Called up share capital
19
5,389,390
4,964,222
Share premium account
20,285,595
17,935,802
Capital redemption reserve
750,000
750,000
Profit and loss reserves
(14,473,778)
(9,013,270)
Total equity
11,951,207
14,636,754
The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
28 March 2024
Ms S Brittan
Director
FOOTBALL VENTURES (WHITES) LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
11
101
101
Current assets
Debtors
14
480,631
Cash at bank and in hand
4,072,754
1,221,971
4,072,754
1,702,602
Creditors: amounts falling due within one year
15
(2,536,716)
(466,690)
Net current assets
1,536,038
1,235,912
Total assets less current liabilities
1,536,139
1,236,013
Creditors: amounts falling due after more than one year
16
(4,296,102)
-
Net (liabilities)/assets
(2,759,963)
1,236,013
Capital and reserves
Called up share capital
19
5,389,390
4,964,222
Share premium account
20,285,595
17,935,802
Capital redemption reserve
750,000
750,000
Profit and loss reserves
(29,184,948)
(22,414,011)
Total equity
(2,759,963)
1,236,013
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £6,770,937 (2022 - £8,145,076 loss).
The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
28 March 2024
Ms S Brittan
Director
Company registration number 11761052 (England and Wales)
FOOTBALL VENTURES (WHITES) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2021
2,750,000
(5,318,446)
(2,568,446)
Year ended 30 June 2022:
Loss and total comprehensive income for the year
-
-
-
(3,694,824)
(3,694,824)
Issue of share capital
19
2,964,222
17,935,802
-
-
20,900,024
Redemption of shares
19
-
-
750,000
-
750,000
Reduction of shares
19
(750,000)
-
-
-
(750,000)
Balance at 30 June 2022
4,964,222
17,935,802
750,000
(9,013,270)
14,636,754
Year ended 30 June 2023:
Loss and total comprehensive income for the year
-
-
-
(5,460,508)
(5,460,508)
Issue of share capital
19
425,168
2,349,793
-
-
2,774,961
Balance at 30 June 2023
5,389,390
20,285,595
750,000
(14,473,778)
11,951,207
FOOTBALL VENTURES (WHITES) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2021
2,750,000
(14,268,935)
(11,518,935)
Year ended 30 June 2022:
Loss and total comprehensive income for the year
-
-
-
(8,145,076)
(8,145,076)
Issue of share capital
19
2,964,222
17,935,802
-
-
20,900,024
Redemption of shares
19
-
-
750,000
-
750,000
Reduction of shares
19
(750,000)
-
-
-
(750,000)
Balance at 30 June 2022
4,964,222
17,935,802
750,000
(22,414,011)
1,236,013
Year ended 30 June 2023:
Loss and total comprehensive income for the year
-
-
-
(6,770,937)
(6,770,937)
Issue of share capital
19
425,168
2,349,793
-
-
2,774,961
Balance at 30 June 2023
5,389,390
20,285,595
750,000
(29,184,948)
(2,759,963)
FOOTBALL VENTURES (WHITES) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
24
(5,113,910)
(5,575,757)
Interest paid
(291,678)
(252,027)
Net cash outflow from operating activities
(5,405,588)
(5,827,784)
Investing activities
Purchase of intangible assets
(1,032,793)
(1,128,547)
Proceeds from disposal of intangibles
23,270
29,645
Purchase of tangible fixed assets
(1,063,809)
(1,155,437)
Proceeds from disposal of tangible fixed assets
3,179,234
-
Interest received
207
2,311,283
Net cash generated from investing activities
1,106,109
56,944
Financing activities
Proceeds from issue of shares
2,774,961
7,699,975
Proceeds / (Repayment) of borrowings
4,193,340
(928,118)
Repayment of bank loans
(34,403)
(10,597)
Net cash generated from financing activities
6,933,898
6,761,260
Net increase in cash and cash equivalents
2,634,419
990,420
Cash and cash equivalents at beginning of year
1,561,807
571,387
Cash and cash equivalents at end of year
4,196,226
1,561,807
Relating to:
Cash at bank and in hand
4,199,896
1,561,807
Bank overdrafts included in creditors payable within one year
(3,670)
-
FOOTBALL VENTURES (WHITES) LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
75,822
(6,483,969)
Net cash inflow/(outflow) from operating activities
75,822
(6,483,969)
Financing activities
Proceeds from issue of shares
2,774,961
7,699,975
Net cash generated from financing activities
2,774,961
7,699,975
Net increase in cash and cash equivalents
2,850,783
1,216,006
Cash and cash equivalents at beginning of year
1,221,971
5,965
Cash and cash equivalents at end of year
4,072,754
1,221,971
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
1
Accounting policies
Company information
Football Ventures (Whites) Limited ("the company") is a private limited company domiciled and incorporated in England and Wales. The registered office is University of Bolton Stadium, Burnden Way, Lostock, Bolton, BL6 6JW.
The group consists of Football Ventures (Whites) Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Football Ventures (Whites) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 June 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The Group is financed by its shareholders and the shareholders have provided assurances that they will not withdraw amounts introduced into the Group for a minimum period of twelve months following the signing of these accounts and in addition the shareholders have committed to financing any shortfalls in cash as and when they fall due.
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover is recognised for accommodation when the services are provided. Match day and event turnover is recognised when the events take place.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
In accordance with FRS102 "Goodwill and Intangible Assets", fees payable on the transfer of players' registrations are capitalised at cost and written off over the length of the players' contracts. Profit or loss on the sale of players' registrations is based on transfer fees receivable and amortised cost of the players and is recognised in the period in which the transfers are made. Players' registrations are written down for impairment when the carrying amount exceeds the amount recoverable through use or sale. Future payments for the acquisition of a player's registration, which may become due dependent on the performance of the team and/or the individual player, are recognised within the original cost of acquisition if, in the opinion of the Directors, it is probable that these payments will eventually be made. Similar terms may exist in contracts for the sale of players' registrations but such payments are not recognised as part of the proceeds of disposal until the event upon which the payment is dependent is known to have occurred. Provision is made for any impairment.
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Intellectual property
50 years
Player transfer and agent fees
Over the term of the respective contract
1.8
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Stadium and academy
Over 50 years from the original date of construction
Freehold land and buildings
No depreciation is provided
Plant and equipment
3 to 10 years from original date of aquisition
Fixtures and fittings
3 to 10 years from original date of aquisition
Computers
3 to 10 years from original date of aquisition
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.12
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.13
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 20 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 21 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.18
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 22 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Depreciation of fixed assets
Fixed assets are depreciated over their anticipated useful life. The useful life is based on management's estimate of the period that the assets will generate revenue and will be reviewed annually for continued appropriateness. The carrying values will be tested for impairment where there is an indication that the value of an asset might be impaired. Depreciation of £443,045 (2022: £300,806) has been charged during the year.
Intangible fixed assets
Intangible fixed assets are amortised over their anticipated useful life. The useful life is based on management's estimate of the period that the assets will generate revenue and will be reviewed annually for continued appropriateness. The carrying values will be tested for impairment where there is an indication that the value of an asset might be impaired. Amortisation of £1,335,307 (2022: £1,062,527) has been charged during the year.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Professional Football
6,249,459
4,943,422
Food and beverage
2,246,098
1,632,858
Accommodation and leisure
4,336,614
3,682,464
Academy Income
551,898
518,346
Commercial
1,158,693
693,418
Retail
1,561,351
950,545
Corporate Sales
2,508,269
805,697
Communications
431,185
399,949
Car Parking
197,844
202,885
Fanzone
187,760
-
19,429,171
13,829,584
2023
2022
£
£
Other significant revenue
Interest income
207
2,311,283
Government grants received
-
21,140
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
3
Turnover and other revenue
(Continued)
- 23 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
19,429,171
13,829,584
As detailed within note 18 of these financial statements, following the refinance of other loans that are due to Prescot Business Park Limited, interest that had previously been accrued amounting to £1,688,258 was released to the profit and loss account during the prior reporting period.
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Government grants
-
(21,140)
Depreciation of owned tangible fixed assets
443,045
300,806
Profit on disposal of tangible fixed assets
(1,440,774)
-
Amortisation of intangible assets
1,335,307
1,062,527
Operating lease charges
31,774
27,538
Government grant income both 2022 related to the Coronavirus Job Retention Scheme.
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
54,950
49,500
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management, Administration & Football Players
198
130
-
-
Hotel Staff
92
120
-
-
Matchday
126
134
-
-
Total
416
384
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
6
Employees
(Continued)
- 24 -
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
11,522,814
9,186,909
Social security costs
1,140,042
928,953
-
-
Pension costs
171,775
148,303
12,834,631
10,264,165
Directors remuneration amounted to £Nil (2022: £Nil).
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
59,015
(9,119)
Other interest on financial liabilities
230,768
260,598
289,783
251,479
Other finance costs:
Interest on finance leases and hire purchase contracts
1,895
-
Other interest
-
548
Total finance costs
291,678
252,027
8
Taxation
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(5,460,508)
(3,694,824)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(1,365,127)
(705,356)
Tax effect of expenses that are not deductible in determining taxable profit
1,719,217
1,548,335
Tax effect of income not taxable in determining taxable profit
(432,928)
(567,281)
Tax effect of utilisation of tax losses not previously recognised
(240,210)
Change in unrecognised deferred tax assets
89,990
Permanent capital allowances in excess of depreciation
(11,152)
(35,488)
Taxation charge
-
-
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
9
Intangible fixed assets
Group
Goodwill
Intellectual property
Player transfer and agent fees
Total
£
£
£
£
Cost
At 1 July 2022
5,936,337
10,000,001
1,326,536
17,262,874
Additions
1,032,793
1,032,793
Disposals
(109,597)
(109,597)
At 30 June 2023
5,936,337
10,000,001
2,249,732
18,186,070
Amortisation and impairment
At 1 July 2022
1,681,962
566,701
381,200
2,629,863
Amortisation charged for the year
593,633
200,012
541,662
1,335,307
Disposals
(86,327)
(86,327)
At 30 June 2023
2,275,595
766,713
836,535
3,878,843
Carrying amount
At 30 June 2023
3,660,742
9,233,288
1,413,197
14,307,227
At 30 June 2022
4,254,375
9,433,300
945,336
14,633,011
The company had no intangible fixed assets at 30 June 2023 or 30 June 2022.
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 27 -
10
Tangible fixed assets
Group
Stadium and academy
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
£
Cost
At 1 July 2022
3,646,151
8,326,435
745,417
692,877
99,939
13,510,819
Additions
16,131
136,274
857,775
53,629
1,063,809
Disposals
(1,696,000)
(1,696,000)
At 30 June 2023
1,966,282
8,326,435
881,691
1,550,652
153,568
12,878,628
Depreciation and impairment
At 1 July 2022
262,203
83,840
303,503
157,960
28,682
836,188
Depreciation charged in the year
56,839
35,724
115,870
193,940
40,672
443,045
Eliminated in respect of disposals
(136,774)
(136,774)
At 30 June 2023
182,268
119,564
419,373
351,900
69,354
1,142,459
Carrying amount
At 30 June 2023
1,784,014
8,206,871
462,318
1,198,752
84,214
11,736,169
At 30 June 2022
3,383,948
8,242,595
441,914
534,917
71,257
12,674,631
The company had no tangible fixed assets at 30 June 2023 or 30 June 2022.
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
101
101
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022 and 30 June 2023
101
Carrying amount
At 30 June 2023
101
At 30 June 2022
101
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 28 -
12
Subsidiaries
Details of the company's subsidiaries at 30 June 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Bolton Sports Village Limited
United Kingdom
Ordinary
-
100.00
Bolton Sporting Ventures Limited
United Kingdom
Ordinary
-
100.00
The Bolton Wanderers Football & Athletic Company Limited
United Kingdom
Ordinary
-
100.00
FVWL Football Limited
United Kingdom
Ordinary
100.00
-
FVWL Hotel Limited
United Kingdom
Ordinary
100.00
-
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Bolton Sports Village Limited
2
-
Bolton Sporting Ventures Limited
1
-
The Bolton Wanderers Football & Athletic Company Limited
1
-
FVWL Football Limited
13,172,985
1,731,712
FVWL Hotel Limited
1,538,286
(421,283)
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
818,251
616,593
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
791,951
769,500
Other debtors
388,182
942,136
480,631
Prepayments and accrued income
1,847,537
947,501
3,027,670
2,659,137
-
480,631
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Other loans
17
1,401,571
Other borrowings
17
50,200
130,845
Trade creditors
3,687,171
3,407,349
1,690
Amounts owed to group undertakings
285,000
465,000
Other taxation and social security
865,584
548,416
-
-
Deferred income
2,206,258
1,986,761
Other creditors
2,899,140
4,293,695
2,251,716
Accruals and deferred income
2,291,289
1,206,047
13,401,213
11,573,113
2,536,716
466,690
Included within other creditors are monies received from shareholders relating to a share issue that occurred after the year end, these monies amounted to £2,249,977 (2022: £Nil).
16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
17
25,000
34,403
Other borrowings
17
4,125,000
5,540,200
Other creditors
4,586,793
360,709
4,296,102
8,736,793
5,935,312
4,296,102
-
Other borrowings are secured by fixed and floating charges over the land and buildings owned by the company, the charges include negative pledges.
Other borrowings were refinanced during the reporting period, with four equal instalments of £1,375,000 being due from 1 August 2023 and annually thereafter. The loan attracts interest at a rate of 5% on the original capital element of £5,500,000 as per an amended agreement dated 9 November 2022 with Prescot Business Park Limited.
Included within other creditors is £4,296,102 (2022: £Nil) relating to funds raised from the issue of bonds to the public during June 2023. The funds raised are to be used to support sporting enhancements, including player recruitment, training facilities and advanced sports science as well as enhancing the Club's infrastructure. The bonds are unsecured and have a fixed term of 5 years, with interest paid annually from June 2024 at a rate of 8.5%.
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 30 -
17
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
-
34,403
Bank overdrafts
3,670
Other borrowings
5,598,101
5,671,045
5,601,771
5,705,448
-
-
Payable within one year
1,451,771
130,845
Payable after one year
4,150,000
5,574,603
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
171,775
148,303
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued
Ordinary A of £1 each
5,389,365
4,964,197
5,389,365
4,964,197
Ordinary B of 0.01p each
241,920
241,920
25
25
5,631,285
5,206,117
5,389,390
4,964,222
During the reporting period 425,168 Ordinary A shares were issued for consideration amounting to £2,774,961.
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 31 -
20
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
21,168
16,480
-
-
Between two and five years
16,406
16,830
-
-
37,574
33,310
-
-
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 32 -
21
Related party transactions
The Group has taken advantage of the exemption conferred by FRS 102 not to disclose transactions with wholly owned members of the Group.
Bolton Wanderers Development Association (Chorley) Limited donated £9,036 (2022: £62,072) to the Company as contribution to the cost of projects completed by the company. At the reporting date the Company was owed £10,859 (2022: £49,688) by Bolton Wanderers Development Association (Chorley) Limited. Bolton Wanderers Development Association (Chorley) Limited is a Company limited by guarantee, with FVWL Football Limited being guarantor.
During the year the Company recharged utilities costs to James Industrial Limited Retirement Benefit Scheme of £37,198 (2022: £136,792). At the reporting date £22,682 (2022: £92,472) was outstanding. James Industrial Limited Retirement Benefit Scheme is related through common ownership.
Other loans amounting to £5,547,901 as at 30 June 2023 (2022: £5,500,000) were provided by Prescot Business Park Limited. Michael James, a Director of both the Company and the Company's parent Company is also a Director of Prescot Business Park Limited. The terms of the loan are set out within note 18.
Prescot Business Park Limited, charged the Company £61,200 (2022: £60,000) during the year for the lease of the north stand car parks. At the reporting date £18,000 (2022: £18,000) was outstanding and owing to Prescot Business Park Limited.
Made By Brittan Too Limited, charged the Company £29,292 (2022: £Nil), during the year relating to director services. At the reporting date £27,000 (2022: £Nil) was outstanding and owing to Made By Brittan Too Limited.
During the previous year the Company provided an interest-free loan to an individual amounting to £100,000. The individual is an employee of the Company and a shareholder of Football Ventures (Whites) Limited. The entire loan balance was resolved during the year ended 30 June 2023.
At the balance sheet date there was a balance of £2,251,716 included in other creditors (2022: other debtors of £478,941) in relation to amounts due to shareholders. £2,249,977 (2022: £nil) relates to payments received in advance of shares being issued. £nil (2022: £480,631) relates to amounts owed by shareholders in relation to share issues. £1,739 (2022: £1,690) relates to overpayments on share issues.
22
Events after the reporting date
The following material events took place after the reporting date:
Share issues
On 4 July 2023, the shareholders agreed to issue 336,832 'A' Ordinary shares in exchange for cash to an existing shareholder, BMLL Limited, amounting to £2,249,977.
On 16 October 2023, the shareholders agreed to issue a further 336,832 'A' Ordinary shares in exchange for cash to an existing shareholder, BMLL Limited, amounting to £2,249,970.
On 7 December 2023, the shareholders agreed to issue 189,148 'B3' Ordinary shares in exchange for cash to Ludonautics Limited amounting to £19.
23
Controlling party
There is no one ultimate controlling party.
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 33 -
24
Cash absorbed by group operations
2023
2022
£
£
Loss for the year after tax
(5,460,508)
(3,694,824)
Adjustments for:
Finance costs
291,678
252,027
Investment income
(207)
(2,311,283)
Gain on disposal of tangible fixed assets
(1,440,774)
-
Amortisation and impairment of intangible assets
1,335,307
1,062,527
Depreciation and impairment of tangible fixed assets
443,045
595,771
Movements in working capital:
Increase in stocks
(201,658)
(335,205)
Increase in debtors
(370,223)
(1,073,310)
Increase/(decrease) in creditors
69,933
(574,657)
Increase in deferred income
219,497
503,197
Cash absorbed by operations
(5,113,910)
(5,575,757)
25
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
Loss for the year after tax
(6,770,937)
(8,145,076)
Movements in working capital:
Decrease in debtors
478,941
139,935
Increase in creditors
6,367,818
1,521,172
Cash generated from/(absorbed by) operations
75,822
(6,483,969)
26
Analysis of changes in net funds/(debt) - group
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
1,561,807
2,638,089
4,199,896
Bank overdrafts
(3,670)
(3,670)
1,561,807
2,634,419
4,196,226
Borrowings excluding overdrafts
(205,448)
(5,392,653)
(5,598,101)
1,356,359
(2,758,234)
(1,401,875)
FOOTBALL VENTURES (WHITES) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 34 -
27
Analysis of changes in net funds - company
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
1,221,971
2,850,783
4,072,754
2023-06-302022-07-01falseCCH SoftwareCCH Accounts Production 2023.300Ms S BrittanMr M JamesMr N C Luckockfalse11761052bus:Consolidated2022-07-012023-06-30117610522022-07-012023-06-3011761052bus:Director12022-07-012023-06-3011761052bus:Director22022-07-012023-06-3011761052bus:Director32022-07-012023-06-3011761052bus:RegisteredOffice2022-07-012023-06-3011761052bus:Agent12022-07-012023-06-30117610522023-06-3011761052bus:Consolidated2021-07-012022-06-30117610522021-07-012022-06-3011761052bus:Consolidated2023-06-3011761052core:Goodwillbus:Consolidated2023-06-3011761052core:Goodwillbus:Consolidated2022-06-3011761052core:OtherResidualIntangibleAssetsbus:Consolidated2023-06-3011761052core:OtherResidualIntangibleAssetsbus:Consolidated2022-06-3011761052core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-06-3011761052core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-06-3011761052core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-06-3011761052core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-06-3011761052bus:Consolidated2022-06-3011761052core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-06-3011761052core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-06-3011761052core:PlantMachinerybus:Consolidated2023-06-3011761052core:FurnitureFittingsbus:Consolidated2023-06-3011761052core:ComputerEquipmentbus:Consolidated2023-06-3011761052core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-06-3011761052core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-06-3011761052core:PlantMachinerybus:Consolidated2022-06-3011761052core:FurnitureFittingsbus:Consolidated2022-06-3011761052core:ComputerEquipmentbus:Consolidated2022-06-3011761052core:ShareCapitalbus:Consolidated2023-06-3011761052core:ShareCapitalbus:Consolidated2022-06-3011761052core:SharePremiumbus:Consolidated2023-06-3011761052core:SharePremiumbus:Consolidated2022-06-3011761052core:CapitalRedemptionReservebus:Consolidated2023-06-3011761052core:CapitalRedemptionReservebus:Consolidated2022-06-3011761052core:ShareCapital2023-06-3011761052core:ShareCapital2022-06-3011761052core:SharePremium2023-06-3011761052core:SharePremium2022-06-3011761052core:CapitalRedemptionReserve2023-06-3011761052core:CapitalRedemptionReserve2022-06-3011761052core:RetainedEarningsAccumulatedLosses2023-06-3011761052core:ShareCapitalbus:Consolidated2021-06-3011761052core:SharePremiumbus:Consolidated2021-06-3011761052core:CapitalRedemptionReservebus:Consolidated2021-06-3011761052core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-06-3011761052core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-06-3011761052core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-06-3011761052core:ShareCapital2021-06-3011761052core:SharePremium2021-06-3011761052core:CapitalRedemptionReserve2021-06-3011761052core:RetainedEarningsAccumulatedLosses2021-06-3011761052core:RetainedEarningsAccumulatedLosses2022-06-30117610522022-06-3011761052core:ShareCapitalbus:Consolidated2021-07-012022-06-3011761052core:SharePremiumbus:Consolidated2021-07-012022-06-3011761052core:ShareCapitalbus:Consolidated2022-07-012023-06-3011761052core:SharePremiumbus:Consolidated2022-07-012023-06-3011761052core:ShareCapital2021-07-012022-06-3011761052core:SharePremium2021-07-012022-06-3011761052core:ShareCapital2022-07-012023-06-3011761052core:SharePremium2022-07-012023-06-3011761052bus:Consolidated2021-06-30117610522021-06-3011761052core:Goodwill2022-07-012023-06-3011761052core:IntangibleAssetsOtherThanGoodwill2022-07-012023-06-3011761052core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwill2022-07-012023-06-3011761052core:LandBuildingscore:OwnedOrFreeholdAssets2022-07-012023-06-3011761052core:LandBuildingscore:LongLeaseholdAssets2022-07-012023-06-3011761052core:PlantMachinery2022-07-012023-06-3011761052core:FurnitureFittings2022-07-012023-06-3011761052core:ComputerEquipment2022-07-012023-06-3011761052core:Goodwillbus:Consolidated2022-06-3011761052core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-06-3011761052core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-06-3011761052bus:Consolidated2022-06-3011761052core:Goodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-07-012023-06-3011761052core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-07-012023-06-3011761052core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-07-012023-06-3011761052core:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-07-012023-06-3011761052core:Goodwillbus:Consolidated2022-07-012023-06-3011761052core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-07-012023-06-3011761052core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-07-012023-06-3011761052core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-06-3011761052core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-06-3011761052core:PlantMachinerybus:Consolidated2022-06-3011761052core:FurnitureFittingsbus:Consolidated2022-06-3011761052core:ComputerEquipmentbus:Consolidated2022-06-3011761052core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-07-012023-06-3011761052core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-07-012023-06-3011761052core:PlantMachinerybus:Consolidated2022-07-012023-06-3011761052core:FurnitureFittingsbus:Consolidated2022-07-012023-06-3011761052core:ComputerEquipmentbus:Consolidated2022-07-012023-06-3011761052core:CurrentFinancialInstruments2023-06-3011761052core:CurrentFinancialInstrumentsbus:Consolidated2023-06-3011761052core:CurrentFinancialInstrumentsbus:Consolidated2022-06-3011761052core:CurrentFinancialInstruments2022-06-3011761052core:WithinOneYearbus:Consolidated2023-06-3011761052core:WithinOneYearbus:Consolidated2022-06-3011761052core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3011761052core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-3011761052core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-06-3011761052core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-06-3011761052core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-3011761052core:Non-currentFinancialInstrumentscore:AfterOneYear2022-06-3011761052core:Non-currentFinancialInstrumentsbus:Consolidated2023-06-3011761052core:Non-currentFinancialInstrumentsbus:Consolidated2022-06-3011761052core:Non-currentFinancialInstruments2023-06-3011761052core:Non-currentFinancialInstruments2022-06-3011761052core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-06-3011761052core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-06-3011761052core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12023-06-3011761052core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12022-06-3011761052core:Non-currentFinancialInstrumentscore:AfterOneYear22023-06-3011761052core:Non-currentFinancialInstrumentscore:AfterOneYear22022-06-3011761052bus:PrivateLimitedCompanyLtd2022-07-012023-06-3011761052bus:FRS1022022-07-012023-06-3011761052bus:Audited2022-07-012023-06-3011761052bus:ConsolidatedGroupCompanyAccounts2022-07-012023-06-3011761052bus:FullAccounts2022-07-012023-06-30xbrli:purexbrli:sharesiso4217:GBP