Company registration number SC005323 (Scotland)
THE HIBERNIAN FOOTBALL CLUB LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
THE HIBERNIAN FOOTBALL CLUB LIMITED
COMPANY INFORMATION
Directors
Ms K Hamilton
Ms G Hutchison
Mr B Kensell
Mr M McPherson
Mr A Paton
Mr I Gordon
(Appointed 7 March 2023)
Mrs K Gordon
(Appointed 7 March 2023)
Secretary
Mr C Gaunt
Company number
SC005323
Registered office
Easter Road Stadium
12 Albion Place
Edinburgh
EH7 5QG
Switchboard
0131 661 2159
Website
www.hibernianfc.co.uk
Auditor
Thomson Cooper
3 Castle Court
Carnegie Campus
Dunfermline
Fife
KY11 8PB
Bankers
Santander UK Plc
12 - 13 St Andrew Square
Edinburgh
EH2 2AF
Solicitors
Pinsent Masons
58 Morrison Street
Edinburgh
EH3 8BP
Main Sponsors
Bevvy - Club Sponsor
Joma - Technical Sponsor
Edinburgh
EH3 8BP
THE HIBERNIAN FOOTBALL CLUB LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 9
Profit and loss account
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 27
THE HIBERNIAN FOOTBALL CLUB LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -
The Directors present their Strategic Review along with the Directors’ Report and audited financial statements for the year ended 30 June 2023.
The Club is a leading professional football club in Scotland. Established in 1875, the Club owns Easter Road Stadium which is its registered home ground for senior competitions. The Club also has its own training centre near Ormiston, in East Lothian. The Club is a full member of the Scottish FA and the Scottish Professional Football League Limited.
Strategic Review
The Club’s results for the last five seasons may be summarised in the following table of key performance indicators:
| | | | | | | | |
League Position Division Scottish Cup League Cup UEFA | | 5th Premiership R4 QF Europa | | | 8th Premiership SF F Europa C | 5th Premiership R4 Group Stage nq | | |
| | | | | | | | |
| | | | | | | | |
Turnover Staff costs Operating profit/(loss) Transfer fees (loss)/gain Profit/(loss) before tax Wages/turnover ratio | | | | | | | | |
| | | | | | | | |
Fixed Assets Net Assets Cash balance | | | | | | | | |
*The wages/turnover ratio for the years ended 30 June 2020 and 30 June 2021 is inclusive of the furlough income received from United Kingdom’s Coronavirus Job Retention Scheme.
The Scottish Professional Football League 2022/2023 campaign began with Lee Johnson taking over the Manager role starting in the Scottish League Cup. As the Club failed to qualify for Europe, the campaign began in the group stages of the Scottish League Cup. Unfortunately, the Club failed to progress from the group stages of the competition, which was disappointing both from a sporting and financial perspective. The Scottish Cup campaign performance also failed to launch, as the Club lost to Heart of Midlothian in the Fourth Round of the competition--the round we entered into the competition.
Fortunately, the league campaign was more successful than our Cup campaigns, with the club returning to the Top Six of the league and ultimately finishing in 5th place. Due to Celtic winning the Scottish Cup, this league finish earned the club a spot in the 2023/2024 Europa Conference League competition.
Turnover increased by 4% from the previous year to £12.4m. This increase was primarily due to performance off the pitch, as the prior year included three matches at Hampden as part of deep runs into the cups. The club continued to grow it’s commercial revenue, through new partnership deals as well as upscaling existing sponsorship agreements. Central distributions in the current year decreased. Although we improved our league position from 8th place to 5th, lack of success in the Cup competitions, plus no European competition, drove the central distribution balance to be lower. The turnover of the Club also increased due to the Women’s team joining the wider football club as of 1 July 2022.
THE HIBERNIAN FOOTBALL CLUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
This increased turnover from ticket sales, commercial partnerships, central distribution, and donations related to the women’s team.
On the back of an 8th place finish in the 2021/2022 season, the worst finish from the Club since 2013-2014, the Club board and ownership took the decision to increase spending in order to bolster sporting performance. This investment focused on improving the squad as well as further investment in people and infrastructure at the training centre. Peer clubs also increased investment in the year, as we all looked to secure a third place finish. Securing third place, depending on the Scottish Cup result, provides the respective team with guaranteed group stages of Europe. At the start of the season, an opportunity arose to bring back Martin Boyle. The board decided that whilst this spending was unbudgeted and the Club would forgo the outstanding instalment transfer payments, the impact of bringing Boyle back to the team justified the cost. The club invested £2.8m in player registration, this is a significant amount of investing cash flows, and higher than the Club has spent on an annual basis historically.
In order to grow partnerships and fulfil the requirements of the enhanced hospitality and to accommodate the women’s team, the Club also investing in non-playing staff at both the stadium and the training centre. This increased the average number of commercial and administrative staff during the year from 42 to 44. The increased investment in the playing squad also required increased investment in support staff, with overall player and management numbers increased from 83 in 2022 to 116 in 2023. The Club also incorporated the Women’s team into the Club on 1 July 2022, the Women’s team structure was semi-professional so the increase in headcount did not include all full-time players. Overall the staff costs increased by £1.6m compared to the previous year. The important wage to turnover ratio increased by 10%, from 71% in the prior year, to 81% in the current year. The club began the year with a ratio more favourable, but with bringing back Martin Boyle along with other transfers late in the Summer window, this ratio grew to a higher percentage than historical trends. The payroll cost also increased due to coaches and players unlocking bonuses upon reaching a European place within the league. Furthermore the Club invested in securing contracts for the very successful development squad. The club endeavours to return the wage to turnover ratio back to the historical trend in the coming years, primarily through increasing turnover and player trading.
Other operating costs increased to £9.2m for the year compared to £5.6m in the previous year. This is partially explained by an increase in depreciation and amortisation of £0.4m and £0.8m, respectively. The increase in these costs represents the club’s investment in both the infrastructure and playing squad over the past 24 months. The Club also had higher costs associated with hospitality as the club more than doubled the covers on a matchday due to the increased offerings. Additionally, the rates relief experienced by the club until March 2022 ceased, increasing rate costs by 250%. In the previous year, we noted that the power, light, and heating costs increased by 240%, these costs continued to rise by 17%. Additionally, all match-day related costs increased due to supplier price increases to counteract the cost of living crisis; these include security, cleaning, policing, and traffic control.
Player trading resulted in a gain of £3.2m for the year compared to a gain of £2.1m achieved in the previous year. The current year gain is related to Josh Doig and Kevin Nisbet. At the end of 30 June 2023, approximately £2.5m of this amount was outstanding. The club continues to hold significant sell-on clauses for these sales, as well as Scottish International Ryan Porteous, and therefore feels strong regarding the performance of player trading during the year.
The Club had cash balances at 30 June 2023 of £2.1m, down from £5.2m at 30 June 2022. The decrease is driven primarily by the cash outflows from operations as well as increased spending on investment activities related to both player registrations and tangible assets. The tangible assets expenditures relate to both revenue producing activities such as completion of the West Stand hospitality fit-out, as well as improvements to the infrastructure at the football club. Installing a hybrid pitch at both Easter Road and at the Training Centre served as one of these projects, as well as improving the flood lighting at the Stadium, which will allow the club reach the UEFA stadium certification that allows for group stage European football. The investing cash proceeds were provided by an increase in financing cashflows from a loan provided by the Club’s ultimate parent company, as well as cash flows from the sale of player registrations.
THE HIBERNIAN FOOTBALL CLUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
Net assets at 30 June 2023 were £23.2m, down from £25.6m at 30 June 2022, primarily due to the loss achieved in the current year. Net assets at 30 June 2022 equate to 18.5p per share.
The Women’s team previously was held within the Hibernian Community Foundation, but on 1 July 2022, was incorporated into the club. During the year, the Hibernian Women’s Advisory Board was established, with Kathrin Hamilton as the Chairwoman. The advisory board worked to incorporate the team within the Club, as well as provide a vision for growth. The advisory board also partially funded the women’s team through donations that helped to secure previously part-time players on more sustainable contracts. This year also saw the creation of the Capital Cup, a joint effort with the Heart of Midlothian Football club and sponsored by Ballie Gifford, that saw the teams play at Easter Road and Tynecastle for the newly minted Capital Cup. The first fixture was played at Easter Road in November 2022 in front of a record breaking 8,000 spectators. Hibernian were able to win the cup through penalties. Unfortunately, Hearts won back the Cup in reverse fixture, also through penalties. The team had a very successful Sky Sports League Cup campaign, beating the league winners—Glasgow City—in the semi-final and reaching the final at Tynecastle against Rangers. This match was the first Scottish Women’s game featured on Sky Sports, however Rangers lifted the cup on this historic occasion by winning 2-0. The team ultimately finished in 5th place, after a campaign limited by significant injuries and a tough run of form in the post-split matches.
We recognise that the financial performance over the last two years has varied from the historical performance of the Club. We believe that we have taken the appropriate action to seek stability on the footballing side, which will have significant financial benefits. Revenues from attendances at matches and other income, including prize money depend on continuing sporting success, a dependency which affects all professional football clubs. In order to supplement sporting performance, the Club has worked to set targets within their club controlled income and seeks to maximise the performance within this area of the business. The club has grown significantly from a commercial perspective over the last two years, and will continue to look for opportunities to grow.
The Club seeks to invest in football talent within a budget while maintaining control over costs. Careful player trading can contribute to results for the year and help to offset any operating losses. The Club’s objective is to post a break even EBITDA from year to year, with the results from player trading supplementing any further investment cash outflows. However, sporting success can make this target difficult, especially if the club does not achieve its minimum targets in cup competitions.
The state of the economy affects the ability of supporters to attend matches. The Club continues to offer flexible and cost-effective ways to purchase tickets on a seasonal and match to match basis and seeks to provide value for money to supporters and to enhance the matchday experience. The Club seeks sporting success in league and cup competitions and strives to compete in Europe on a regular basis. The Club operates in an open and transparent manner with supporters and business partners at all levels and seeks to make a contribution to Scottish football generally.
The Board would like to thank all those who supported the Club during the 22/23 season. Particularly we would like to thank the outpouring of support from the too soon passing of our former Executive Chairman Ronald Gordon in February 2023. With the unwavering support of the Gordon family, we seek to continue toward his vision to grow Hibernian both on and off the pitch.
Mr C Gaunt
Secretary
17 October 2023
THE HIBERNIAN FOOTBALL CLUB LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -
The Directors present their Report on the business of the Company together with the audited financial statements for the year ended 30 June 2023. The registered number of the Company is SC005323.
Principal activities
The principal activity of the company is the operation of a professional football club within Scottish Professional Football League ("SPFL").
Disclosure of information to auditor
The Directors who held office at the date of approval of this Directors’ report confirm that, so far as they are each aware, there is no relevant audit information of which the Company’s auditor is unaware; and each Director has taken all the steps that he ought to have taken as a Director to make themselves aware of any relevant audit information and to establish that the Company’s auditor is aware of that information.
Statement of Directors’ responsibilities in respect of the Strategic Review, the Directors’ Report and the Financial Statements
The Directors are responsible for preparing the Strategic Review, 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 they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 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 and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
• use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
THE HIBERNIAN FOOTBALL CLUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 5 -
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr R Gordon
(Deceased 21 February 2023)
Mr D Davies
(Resigned 9 February 2023)
Mr S Dunn
(Appointed 5 July 2022 and deceased 13 September 2023)
Ms J Goba
(Resigned 9 February 2023)
Ms K Hamilton
Ms G Hutchison
Mr B Kensell
Mr B Langham
(Resigned 2 October 2023)
Mr M McPherson
Mr A Paton
Mr B Houston
(Resigned 5 July 2022)
Mr I Gordon
(Appointed 7 March 2023)
Mrs K Gordon
(Appointed 7 March 2023)
Auditor
Thomson Cooper were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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 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 and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
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 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.
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 company’s auditor 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 company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
THE HIBERNIAN FOOTBALL CLUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 6 -
By order of the board
Mr C Gaunt
Mr B Kensell
Secretary
Director
17 October 2023
THE HIBERNIAN FOOTBALL CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE HIBERNIAN FOOTBALL CLUB LIMITED
- 7 -
Opinion
We have audited the financial statements of The Hibernian Football Club Limited (the 'company') for the year ended 30 June 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 company's affairs as at 30 June 2023 and of its 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 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 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.
THE HIBERNIAN FOOTBALL CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE HIBERNIAN FOOTBALL CLUB LIMITED
- 8 -
Matters on which we are required to report by exception
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.
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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, posting of unusual journals along with complex transactions and manipulating the company’s key performance indicators to meet targets. We discussed these risks with management, designed audit procedures to test the timing and existence of revenue, tested a sample of journals to confirm they were appropriate and reviewed areas of judgement for indicators of management bias to address these risks.
We communicated identified law 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.
The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and we assessed the extent of compliance with these laws and regulation as part of our procedures on the related financial statements items.
The company is also 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: health and safety, anti-bribery, employment law and certain aspects of company legislation recognising the nature of the company's activities and its legal form. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
THE HIBERNIAN FOOTBALL CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE HIBERNIAN FOOTBALL CLUB LIMITED
- 9 -
Context of the ability of the audit to detect fraud or breaches of law or regulation
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. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing stand would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omission, misrepresentation, or the override of internal controls. Our audit procedures are designed to detect material misstatements. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
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.
Sharon Collins (Senior Statutory Auditor)
For and on behalf of Thomson Cooper, Statutory Auditors
Dunfermline
17 October 2023
THE HIBERNIAN FOOTBALL CLUB LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
12,362,825
11,883,939
Administrative expenses
(19,312,793)
(15,804,511)
Other operating income
42,587
383,263
Operating loss
4
(6,907,381)
(3,537,309)
Interest receivable and similar income
8
25,733
4,717
Interest payable and similar expenses
9
(165,864)
(86,666)
Gain on disposal of intangible fixed assets
10
3,188,207
2,096,490
Loss before taxation
(3,859,305)
(1,522,768)
Tax on loss
11
13,793
56,909
Loss for the financial year
(3,845,512)
(1,465,859)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
THE HIBERNIAN FOOTBALL CLUB LIMITED
BALANCE SHEET
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
2,986,099
1,997,286
Tangible assets
13
26,473,042
25,722,412
29,459,141
27,719,698
Current assets
Debtors
14
5,407,835
4,114,565
Cash at bank and in hand
2,140,067
5,157,272
7,547,902
9,271,837
Creditors: amounts falling due within one year
15
(8,298,539)
(7,037,082)
Net current (liabilities)/assets
(750,637)
2,234,755
Total assets less current liabilities
28,708,504
29,954,453
Creditors: amounts falling due after more than one year
16
(5,470,056)
(4,387,700)
Net assets
23,238,448
25,566,753
Capital and reserves
Called up share capital
20
2,500,000
2,500,000
Share premium account
11,106,006
11,106,006
Revaluation reserve
6,974,329
7,140,056
Capital redemption reserve
339,750
339,750
Other reserves
2,900,118
1,433,605
Profit and loss reserves
(581,755)
3,047,336
Total equity
23,238,448
25,566,753
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 17 October 2023 and are signed on its behalf by:
Mr B Kensell
Director
Company registration number SC005323 (Scotland)
THE HIBERNIAN FOOTBALL CLUB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
£
£
Balance at 1 July 2021
2,500,000
11,106,006
7,305,783
339,750
1,482,584
4,298,489
27,032,612
Year ended 30 June 2022:
Loss and total comprehensive income
-
-
-
-
-
(1,465,859)
(1,465,859)
Transfers
-
-
(165,727)
-
(48,979)
214,706
-
Balance at 30 June 2022
2,500,000
11,106,006
7,140,056
339,750
1,433,605
3,047,336
25,566,753
Year ended 30 June 2023:
Loss and total comprehensive income
-
-
-
-
-
(3,845,512)
(3,845,512)
Transfers
-
-
(165,727)
-
1,466,513
216,421
1,517,207
Balance at 30 June 2023
2,500,000
11,106,006
6,974,329
339,750
2,900,118
(581,755)
23,238,448
THE HIBERNIAN FOOTBALL CLUB LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(3,755,095)
(428,645)
Interest paid
(139,795)
(37,687)
Income taxes refunded
-
10,157
Net cash outflow from operating activities
(3,894,890)
(456,175)
Investing activities
Purchase of intangible assets
(1,748,106)
(1,225,053)
Proceeds from disposal of intangibles
1,646,171
478,574
Purchase of tangible fixed assets
(1,899,305)
(3,020,515)
Proceeds from disposal of tangible fixed assets
-
31,399
Interest received
25,733
4,717
Net cash used in investing activities
(1,975,507)
(3,730,878)
Financing activities
Repayment of borrowings
3,204,648
1,949,157
Proceeds from finance leases
511,104
Payment of finance leases obligations
(351,456)
(60,491)
Net cash generated from financing activities
2,853,192
2,399,770
Net decrease in cash and cash equivalents
(3,017,205)
(1,787,283)
Cash and cash equivalents at beginning of year
5,157,272
6,944,555
Cash and cash equivalents at end of year
2,140,067
5,157,272
THE HIBERNIAN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
1
Accounting policies
Company information
The Hibernian Football Club Limited is a private company limited by shares incorporated in Scotland. The registered office is Easter Road Stadium, 12 Albion Place, Edinburgh, EH7 5QG.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 402 of the Companies Act 2006 not to prepare consolidated accounts. The loan company undertaking, Hibernian Business Limited, is excluded from these accounts as it is not material for the purpose of giving a true and fair view. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
The company incurred a loss of £3,845,512 (2022: £1,465,859) during the year, has net current liabilities of £750,637 (2022: assets £2,234,755) and a balance sheet surplus of £23,238,448 (2022: £25,566,753).true
The current and future cash position of the company has been reviewed by the Board. This included a comprehensive review of the financial projections and cash-flow requirements, covering a period beyond one year from the date of approval of the financial statements. The projections make key assumptions around:
• Maintaining Scottish Premiership status
• Season ticket revenues and match day income being consistent with operating in the SPFL Premiership
• Sponsorship and commercial income continuing to increase year-over-year
• Overheads and payroll costs being similar to the level incurred in the current period, subject to inflationary rises;
• Income from net player transfer activities;
• Support from the majority shareholder;
After due consideration of the above, including the potential impact of key assumptions not materialising, the Board are satisfied that they consider that the company has adequate resources to continue in operational existence for a period of not less than twelve months from the date of approval of the accounts. Accordingly, the Board consider it appropriate to prepare the financial statements on the going concern basis.
1.3
Turnover
Turnover represents income derived from the operation of a professional football club and excludes value added tax. Income from the sale of season tickets in respect of the upcoming season is deferred until the commencement of the season, at which point it is recognised based on the games played. Gates receipts related to match day tickets and hospitality are recognised when games are played. Sponsorship and similar commercial income is recognised over the specific duration of the respective contracts. Awards earned by cup position and final league position are accounted for only when known at the end of a cup tournament or the end of the football season. All turnover originates from the United Kingdom and is related to the principal activity of the company.
THE HIBERNIAN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 15 -
1.4
Intangible fixed assets other than goodwill
The costs associated with the acquisition of players are capitalised and treated as intangible fixed assets. These amounts are amortised over the period of the contract on the basis that nil residual values are assumed. The company assess at each reporting date whether intangible fixed assets should be impaired.
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:
Player registrations
Over the term of the players contract
1.5
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:
Land and buildings
50 years
Plant and equipment
3-10 years
Fixtures and fittings
3-10 years
Motor vehicles
5 years
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 credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company 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.
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.
THE HIBERNIAN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 16 -
1.7
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.
1.8
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
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 company 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.
THE HIBERNIAN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
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.
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 company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
THE HIBERNIAN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.14
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.
1.15
Signing-on-fees payable to players are included within staff costs in the year in which they fall due.
THE HIBERNIAN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 19 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
Interest free loans have been discounted at a commercial rate based on the Bank of England base rate. The directors' consider that there are no other areas of significant judgement or estimation which effect the financial statements.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Football revenue
12,362,825
11,883,939
2023
2022
£
£
Other revenue
Interest income
25,733
4,717
Grants received
-
4,182
4
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses
9,063
6,653
Government grants
-
(4,182)
Depreciation of owned tangible fixed assets
1,148,675
705,663
Depreciation of tangible fixed assets held under finance leases
-
75,458
Profit on disposal of tangible fixed assets
(219)
(9,362)
Amortisation of intangible assets
1,521,181
744,023
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 company
17,850
16,975
THE HIBERNIAN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 20 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Players and management
116
83
Commercial and administration
44
42
Total
160
125
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
8,942,883
7,489,066
Social security costs
1,035,250
872,455
Pension costs
92,597
104,976
10,070,730
8,466,497
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
371,818
301,785
Company pension contributions to defined contribution schemes
26,550
22,917
398,368
324,702
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
326,818
302,158
Company pension contributions to defined contribution schemes
25,000
22,917
The level of executive pay is determined by a Remuneration Committee comprised on non-executive directors of the Company. The highest paid director was the chief executive of the company. Remuneration includes any performance related bonuses earned in the period.
The Executive Chairman and Non-Executive Directors did not receive any remuneration for their for their services to the company, except for their role outwith of their fiduciary duties as non-executive directors, and within the core operations of the club
THE HIBERNIAN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 21 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
25,733
4,717
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
25,733
4,717
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
80,798
4,906
Other finance costs:
Interest on finance leases and hire purchase contracts
34,372
32,781
Unwinding of discount on provisions
50,694
48,979
165,864
86,666
10
Amounts written off investments
2023
2022
£
£
Other gains and losses
3,188,207
2,096,490
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(13,793)
(56,909)
THE HIBERNIAN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
11
Taxation
(Continued)
- 22 -
The actual credit 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
(3,859,305)
(1,522,768)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(964,826)
(289,326)
Unutilised tax losses carried forward
964,826
289,326
Research and development tax credit
(13,793)
(56,909)
Taxation credit for the year
(13,793)
(56,909)
12
Intangible fixed assets
Player registrations
£
Cost
At 1 July 2022
3,061,677
Additions
2,843,744
Disposals
(981,094)
At 30 June 2023
4,924,327
Amortisation and impairment
At 1 July 2022
1,064,391
Amortisation charged for the year
1,521,181
Disposals
(647,344)
At 30 June 2023
1,938,228
Carrying amount
At 30 June 2023
2,986,099
At 30 June 2022
1,997,286
THE HIBERNIAN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 23 -
13
Tangible fixed assets
Land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2022
24,543,623
1,684,237
7,170,005
2,740,916
60,240
36,199,021
Additions
587,138
717,533
229,678
364,956
1,899,305
Transfers
854,109
(1,677,711)
534,891
288,711
At 30 June 2023
25,984,870
724,059
7,934,574
3,394,583
60,240
38,098,326
Depreciation and impairment
At 1 July 2022
2,577,743
5,546,003
2,298,193
54,670
10,476,609
Depreciation charged in the year
567,789
435,541
145,345
1,148,675
At 30 June 2023
3,145,532
5,981,544
2,443,538
54,670
11,625,284
Carrying amount
At 30 June 2023
22,839,338
724,059
1,953,030
951,045
5,570
26,473,042
At 30 June 2022
21,965,880
1,684,237
1,624,002
442,723
5,570
25,722,412
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and equipment
585,140
720,910
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,565,144
516,940
Corporation tax recoverable
64,303
Other debtors
13,516
Prepayments and accrued income
3,829,175
3,533,322
5,407,835
4,114,565
THE HIBERNIAN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 24 -
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
18
102,523
98,267
Other borrowings
17
144,100
Trade creditors
2,108,193
955,606
Taxation and social security
382,609
625,642
Deferred income
4,194,945
3,483,590
Accruals and deferred income
1,366,169
1,873,977
8,298,539
7,037,082
Deferred income is inclusive of £385,909 (2022: £403,979) that will be released after more than one year.
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
18
263,333
369,782
Other borrowings
17
4,717,699
3,397,552
Accruals and deferred income
489,024
620,366
5,470,056
4,387,700
17
Loans and overdrafts
2023
2022
£
£
Other loans
4,861,799
3,397,552
Payable within one year
144,100
Payable after one year
4,717,699
3,397,552
Other loans due represent a loan from the Scottish Government of £1,379,005 (2022: £1,448,395) and a loan from Bydand Sports LLC £3,482,794 (2022: £Nil). The loans from Scottish Government and Bydand Sports LLC are interest free and due after more than one year the loan has been discounted to reflect the net present value of the loan. The undiscounted value of the loans are £2,761,917 (2022: £2,882,000) and £5,000,000 (2022: £Nil) respectively.
The loan from Bydand Sports LLC from the prior year of £1,949,157 has been replaced by the new facility. The loan includes repayment triggers based on the performance of player trading and is secured on the fixed and floating assets of the company.
THE HIBERNIAN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
102,523
98,267
In two to five years
263,333
369,782
365,856
468,049
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
92,597
104,976
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 2p each
125,000,000
125,000,000
2,500,000
2,500,000
21
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
44,812
44,812
Between two and five years
6,825
51,637
51,637
96,449
THE HIBERNIAN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
-
969,278
23
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
£
£
Aggregate compensation
97,353
194,791
Transactions with related parties
During the year the company entered into the following transactions with related parties:
2023
2022
£
£
Donation from Chairman
45,351
-
24
Ultimate controlling party
The Company is a subsidiary undertaking of Bydand Sports LLC, whose registered office is at 251 Little Falls Drive, Wilmington, County of New Castle, Delaware 19808, United States of America.
Bydand Sports LLC is 100% owned by Bydand Enterprises LLC, the beneficial owner of 100% of the shares of which is Katherine Gordon. The results of these entities are not available to the public, and therefore the Company is not included in the consolidated results of its parent company.
The company is owned 67.2% by Bydand Sports LLC, 15.5% by Hibernian Supporters Limited and 17.3% from other minority shareholders.
At 30 June 2023 £5,000,000 undiscounted (2022: £1,949,457) is due to Bydand Sports LLC.
THE HIBERNIAN FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 27 -
25
Cash absorbed by operations
2023
2022
£
£
Loss for the year after tax
(3,845,512)
(1,465,859)
Adjustments for:
Taxation charged/(credited)
64,303
(56,909)
Finance costs
165,864
86,666
Investment income
(25,733)
(4,717)
Gain on disposal of tangible fixed assets
-
(9,362)
Amortisation and impairment of intangible assets
1,521,181
744,023
Depreciation and impairment of tangible fixed assets
1,148,675
781,121
Other gains and losses
(3,188,207)
(2,096,490)
Movements in working capital:
Increase in debtors
(670,500)
(791,347)
Increase in creditors
363,479
2,207,472
Increase in deferred income
711,355
176,757
Cash absorbed by operations
(3,755,095)
(428,645)
26
Analysis of changes in net funds/(debt)
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
5,157,272
(3,017,205)
2,140,067
Borrowings excluding overdrafts
(3,397,552)
(1,464,247)
(4,861,799)
Obligations under finance leases
(468,049)
102,193
(365,856)
1,291,671
(4,379,259)
(3,087,588)
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