9th Oct 2007 07:01
Powerleague Group plc09 October 2007 9 October 2007 POWERLEAGUE GROUP PLC Announcement of preliminary results for the year ended 30 June 2007 Introduction Powerleague Group plc is the market-leading operator of premium quality,purpose-built 5-a-side football centres in the United Kingdom. We offer ourcustomers the option of competitive league matches, corporate tournaments orsocial play within an environment of excellent service and first classfacilities. We continue to focus on increasing our national brand presence tomeet local and regional demand for small-sided football. In addition we areextending our relationships with a growing number of superb sponsors, blue-chipcompanies and major brands wishing to align themselves with grass-roots footballand our customer base. Highlights 2007 * Revenue increased by 12% to £23.0 million (2006: £20.5 million) * Centre like for like branch revenue increased by 5% (2006: 3.0%) * Sponsorship and events revenue increased by 41% * EBITDA before exceptional items increased by 18% to £8.4 million (2006: £7.1 million) * Operating profit before exceptional items up 24% to £6.1 million (2006: £4.9 million) * Profit before taxation increased by 56% to £5.0 million (2006: £3.2 million) * Proposed dividend of 1.1p (2006: 0.75p) per ordinary share, up 47% * Earnings per share increased by 66% to 4.47p (2006: 2.69p) Results for the periods to 30 June 2007 and 1 July 2006 represent 52 weeks'trading and references to "year" throughout these accounts refer to theseperiods as defined. Claude Littner, Chairman of Powerleague, commented: "This has been anotherrecord-breaking year for Powerleague. We have benefited from our new centreopenings, the increased investment programme in our existing estate as well asan excellent increase in sponsorship and events revenues." "With the addition of Cardiff, Milton Keynes and City of London which have allopened in the last three months, we now have 37 centres and we continue toinvest in our existing portfolio of centres. We are on schedule to open furthercentres in this financial year, one of which is currently under constructionalongside Shrewsbury Town FC's new football stadium. These new centres, combinedwith our successful core estate, give me confidence in another healthyperformance for Powerleague this coming year." Enquiries: Powerleague Group plc Tavistock Communications Claude Littner, Executive Chairman Lulu Bridges Sean Tracey, Chief Executive John West Tel: 020 7920 3150 (9 October 2007 only) Tel: 020 7920 3150 Tel: 0141 887 7758 (thereafter) CHAIRMAN'S STATEMENT Introduction I am delighted to report another record breaking year of strong growth for theGroup. In the twelve months to 30 June 2007, our Group has achieved growth inrevenues, profits and earnings per share. Results Group revenue for the year increased by 12% to £23.0 million (2006: £20.5million). EBITDA before exceptional items increased by 18% to £8.4 millionwhilst operating profit before exceptional items increased by 24% to £6.1million. For the first time, the financial statements have been prepared underInternational Financial Reporting Standards (IFRSs). A detailed explanation ofthe changes made and reconciliations from our previously published UK GAAPinformation is given in note 8. Dividends Given the continued high levels of cash generation from operating activities andoverall strong performance of the Group, your Board is recommending the paymentof a final dividend for the year of 1.1p (2006: 0.75p), up 47%. The dividend, ifapproved, will be paid on 3 December 2007 to shareholders on the register at theclose of business on 9 November 2007. Leading Position and Innovative Approach Powerleague continues to lead the 5-a-side football market, and currentlyoperates 37 purpose-built centres across the UK. We have continued with ourstrategy of extending our footprint of centres in the UK and since the year endhave opened in Milton Keynes, Cardiff and a further centre in the City ofLondon. The new City of London centre is worthy of special mention as we haveconverted railway arches and created a unique indoor facility. We are onschedule to open further centres in the current financial year which will extendour dominance of the premium commercial 5-a-side market. Our sponsorship and events revenues have grown significantly during the period,increasing by over 40% year on year. This reflects the continued development andstrength of the Powerleague brand, and the Group's ability to attract and workclosely with global brands which are excited by both our target market andgrass-roots football in the United Kingdom. Development Programme As the first organisation to forge ties with the education sector to develop5-a-side centres, our latest openings further reinforce this special partnershipapproach. Both the Milton Keynes and Cardiff centres have been developed withschools. This 'win-win' formula provides the schools with top quality facilitiesfor use during the day and Powerleague with superbly located centres forcommercial use in the evenings and at weekends. We now have twelve centresdeveloped within this sector. As outlined at the time of the interim results in February, we have beenimplementing our strategy of increasing investment in our existing portfolio ofcentres. Last year's investment in refurbishing 57 pitches in the latest fifthgeneration surfaces helped increase pitch utilisation and drive improvement inlike for like sales from 3% to 5%. A further 80 pitches have been refurbishedthis summer taking to 80% the number of pitches in the estate with the lateststate-of-the-art playing surfaces. Further investment has also gone into sixbars which have been updated with plasma screens and comfortable,customer-friendly seating areas. Our commitment to providing our customers with excellent facilities and a greatexperience within a safe environment remains at the core of our business model.The unrivalled industry knowledge encompassed within our network of Managers andHead Office personnel, underpinned by our high staff retention levels, providescontinuity of service and first class tournament, league and social play. We continue to invest in long-standing and key employees who deliver serviceexcellence to our customers and reward them through a share option scheme aswell as bonus schemes based on achieving or exceeding a range of targets. Outlook With three centres already open since the year-end, I can announce a furthersite is now under construction alongside Shrewsbury Town FC's new footballstadium. This centre has met our strict criteria and we are delighted to haveacquired a site in such a prominent location. The centre is scheduled to open inFebruary 2008. The current pipeline of sites within the portfolio remains strongwith new opportunities being targeted within under-provided locations. The Group has continued to trade in line with expectations since the year-endand we have good reason to be encouraged by the opportunities for further growthin 2007 and beyond. Claude LittnerChairman CHIEF EXECUTIVE'S REPORT I am delighted to report that trading in the year to 30 June 2007 was strong,with growth in revenue, profit and pre-tax cash flow from operating activities.Revenue increased in the year from £20.5 million to £23.0 million, with like forlike branch sales up 5% (2006: 3%) and an exceptional performance in sponsorshipand events which generated 41% growth against the prior year. New openings Our Coventry and first City of London centre both opened just prior to the endof the last financial year and each has contributed encouragingly in its firstfull year of trading. Further growth is anticipated at both locations as moreprospective customers become aware of the Powerleague brand and excitingoffering. Our City of London centre in Worship Street has benefited fromlunchtime trade, high evening occupancy figures and a high volume of corporateevent bookings from City firms and Institutions. The high occupancy level experienced at our Kilmarnock centre provided us withthe opportunity of adding an additional 7-a-side pitch last summer on the spareparcel of land within our demise and this has proved highly successful. The Group took the opportunity in summer 2006, at the start of the lastfinancial year, to invest further in upgrading and improving the quality ofpitches in our core estate. In total, six centres were refurbished and 57pitches were resurfaced with the latest fifth generation playing surfaces. Thisperiod of consolidation and investment has helped drive like for like sales up5%, and further enhanced our customers' playing experience. This strategy of investing for growth has continued in the 2008 financial year,with work having been completed over the summer months in upgrading a further 80pitches in eight locations at a cost of £1.4 million. This has provided us withthe platform on which to re-market these centres, attract new customers andraise our prices, thereby generating additional revenue and margin. By the endof the summer, over 80% of our estate had the latest fifth generation pitchsurfaces. In addition, six of the Group's busiest bars at Fairlop, Peterborough, Stoke,Nottingham, Catford and Glasgow will also be refurbished and this, combined withfull pitch refurbishments at all these centres, will help boost revenues andfurther enhance our customers' overall playing experience. Pipeline Sites Since the year-end, Powerleague has opened an innovative indoor centre on a longlease at Old Street in the City of London. The pitches have been converted fromformer railway arches. The centre has already proved highly popular, with strongsales, high utilisation rates and encouraging levels of interest from bothlunchtime and evening players. In August 2007 the Group opened its eleventh education or "school site" inCardiff at the largest comprehensive school in the country. Located in aprominent and high profile location on a main arterial road into Cardiff, thecentre has ten fifth generation pitches, a licensed sports bar and excellentchanging facilities. Pre-opening sales have been highly encouraging and thecentre is forecast to make a strong contribution in the 2008 financial year. Powerleague Milton Keynes opened at the end of September 2007 at Walton HighSchool, the Group's twelfth education site which is a superb centre in a prizedlocation. The £2 million centre has ten 5-a-side pitches and two 7-a-sidepitches, all with fifth generation playing surfaces, excellent changingfacilities and a licensed sports bar. Advanced bookings have proved highlyencouraging, and the centre is expected to make a strong contribution in theyear. As the pioneer of this partnership approach within the education sector, to datewe have over 20,000 children per week playing free throughout our portfolio ofcentres. With child obesity currently a 'hot topic', we believe that we areproviding a most important facility for children to get fit, maintain a healthylifestyle and enjoy the sport. From a business perspective, our philosophy from the early days of the Group haspaid dividends; the local children who played at our earliest centres not onlyestablished a strong relationship with and loyalty to the centre and its staff,but have now developed into paying customers. Our approach is to continue toembrace the local community in which our centres are located. Future Pipeline An exciting new site alongside Shrewsbury Town FC's new 10,000 seat stadium isnow under construction. With a catchment area of over 200,000 people within a20-minute drive time, prominent location off the A5 and no commercialcompetition, we believe this site will prove very popular. In addition, the bararea will also benefit from increased revenues when the Championship club playsits home matches. The Group has over thirty sites at various stages in the planning process, ofwhich six, at the time of writing, are in the hands of lawyers, negotiating andfinalising the agreements to lease. As Powerleague's brand and profile grows, sotoo do the opportunities presented to us to develop 5-a-side centres. However,many do not fit our criteria and those that do have to go through planningprocedures which are not always straightforward or speedy. While this may beviewed as a potential barrier to entry it brings other challenges, in that it isnot always easy to predict when a site will be able to go under construction. Iam greatly encouraged by the quality and number of sites we are processing andthe progress we are making to open centres in areas of the country which areunder-served or completely lacking in the provision of purpose-built facilities. Sponsorship and Corporate Events Over the last 12 months and as forecast in last year's annual report,sponsorship and corporate events have continued to develop, with sales up 41%year on year. We have an impressive client list, supplemented by long-termsponsorship partners, headed by Xbox, Nike, Lucozade and Budweiser. We have alsoworked with O2 and Toyota to promote their brands to Powerleague customers aspart of a wider media campaign. Furthermore, during this period we have hostedand managed new 5-a-side events for a wealth of companies such as Goldman Sachs,sThree, NCP and Deloitte. In addition, Powerleague successfully retainednational events for Barclays Bank, JD Weatherspoon, and Sainsbury's. Looking forward to the next 12 months, exciting new opportunities for furthergrowth remain in this area. The 2008 European Championships ('Euro 2008') willattract further interest in football from major brands and we are ideally placedto take advantage of such opportunities. In fact, we are already engaged indiscussions with a number of brands with regard to future activity. Ourproactive approach to sourcing and instigating innovative marketing ideas hashelped develop this lucrative income stream. Principal Risks and Uncertainties As with any business, there is always a dependence on a number of employees whooccupy key positions and are tasked to achieve the Group's objectives. Weprovide an attractive salary and incentive package designed to retain andmotivate all employees and these key people in particular. Health and Safety is a priority and is discussed both at branch and Board level,with audits undertaken by qualified managers. The pipeline of sites is an important factor as it impacts our roll-outprogramme. Key to this is market intelligence in finding suitable potentialsites and then managing them through the planning process. We are confident thatwe have the expertise to develop and bring new sites to fruition in line withour forecasts. Competitor activity may have an adverse impact if a 5-a-side centre isestablished within close proximity and encroaches on our existing catchmentarea. However, with so many geographic areas not yet well served bypurpose-built 5-a-side football facilities, we view this as a risk which anysensible commercial operator should take into account when considering new sitedevelopment. Corporate and Social Responsibility Powerleague continues to work with a number of charities on a local and nationalbasis. In the year under review, we have hosted and managed national events forChildline, Clic Sergeant and the Motor and Allied Benevolent Fund. We have alsodeveloped a partnership with The Bobby Moore Fund which tackles bowel cancer andis part of Cancer Research UK. Over the next 12 months, we plan to strengthenour links with cancer charities and develop a National Charity Tournament toraise awareness. As outlined earlier, the Group continues to offer free play in all centres forlocal schools and community groups. This helps in tackling issues such asobesity, lack of quality, purpose-built sports facilities, and also provides thetwelve education sector institutions where we have centres with an additionalincome stream by way of rental. Staff I would once again like to thank our staff for their hard work, loyalty andcommitment to the Group over the past year. Our network of staff at branch andHead Office continues to perform to the highest standards and their unrivalledexperience in the industry provides the essential building blocks to manage ourexisting business and to continue growing. Outlook With three excellent new centres having opened in the past three months, afurther centre under construction alongside Shrewsbury Town FC and a strongpipeline of future sites being progressed, our prospects look very encouraging.With further investment in the core business improving our profitability, andsponsorship and events revenue continuing to flourish, the Group is well placedto grow over the next financial period. The increasing popularity of 5-a-sidefootball and Powerleague's prominent market position mean we are well placed totake full advantage of future opportunities. Euro 2008 will bring further prominence to the small-sided game as companies andbrands strive to engage with the active participants. We are confident that thecoming year will be another one of continued growth. Sean TraceyChief Executive FINANCIAL REVIEW Revenue and Profit At £23.0 million, revenue in the year to 30 June 2007 increased by 12% over theprior year. EBITDA before exceptional items increased by 18% to £8.4 million, as detailedbelow: 52 weeks 52 weeks ended ended 30 June 2007 1 July 2006 £'000 £'000-----------------------------------------------------------------------------Profit for the year 3,659 2,201Taxation expense 1,299 1,034Net interest expense 1,104 995Exceptional items 28 702Depreciation of tangible fixed assets 2,279 2,157----------------------------------------------------------------------------- -----------------------------------------------------------------------------EBITDA before exceptional items 8,369 7,089----------------------------------------------------------------------------- -----------------------------------------------------------------------------EBITDA margin before exceptional items 36.3% 34.6%----------------------------------------------------------------------------- The significant factors generating the improvement in EBITDA before exceptionalitems were the full-year contributions from the three new centres, 5% growth incentre like for like revenue and 41% growth in sponsorship and events revenue.In addition, costs have been tightly controlled, with the staff cost to revenueratio improving to 21.7% (2006: 22.3%) and an improvement in operatingefficiency with central overheads remaining constant year on year. International Financial Reporting Standards (IFRS) This is the first time the Group has reported under IFRS. We have chosen toadopt before we are required to do so in order to align ourselves with bestpractice as early as possible. The most significant changes arose in the area of property, plant and equipment,with a reduction in net assets to reflect the unwinding of revaluations from2004 and 2005 together with the resultant reduction in depreciation charge tothe income statement. An impairment review carried out after the reversal of therevaluation resulted in a net impairment credit in 2005 and a net impairmentcharge in 2006. Net assets were increased by de-recognition of the negativegoodwill arising on acquisitions in 2005 and 2006 and there has been a resultantreduction in the release of negative goodwill to the income statement. Ourdeferred taxation liability has been increased to reflect future taxation due onthe fair value of assets acquired in 2005 and 2006. Full details of the changes are provided in note 8. Interest During the year, we made repayments of £2.0 million on our term loans. In May2007, we refinanced our existing term loan, development loans and overdraft intoone 5-year term loan of £17.6m, which bears interest at 1% over Bank of Englandbase rate ('base rate'), a reduction from the previous margin of 1.15%. At thesame time a new development facility of £4.5m was secured, which will convertinto a 5-year term loan once it is fully drawn and will also bear interest at 1%over base rate. No sums had been drawn under this facility at 30 June 2007. Theaverage rate payable during the year was 6.5%. Earning per Share Basic and diluted earnings per share was 4.47p for the current year comparedwith 2.69p for 2006. In addition to the change in EBITDA described above,earnings per share improved year on year due in part to the impairment ofproperty, plant and equipment in 2006 and in part to the reversal in 2007 ofdeferred taxation timing differences which reduced the taxation charge. Taxation A detailed analysis of taxation is set out at note 3 to the financialstatements. The effective corporation tax rate is 26%. This is below the standardcorporation tax rate of 30% due to utilisation of a small loss brought forwardfrom prior years together with a reduction in the prior year provision which hasbeen credited to this financial year. The provision for deferred taxation isreduced in 2007 by a credit arising from the change in rate of provision from30% to 28% in line with the reduction in the standard rate of UK corporation taxfrom April 2008. The year to 1 July 2006 was the first in which the Group was tax paying.Corporation tax payable amounted to 19% of reported profit as £1.3 million inlosses brought forward offset the tax charge. Cash flow Cash flow before taxation generated from operating activities has increased by£90,000 year on year. Operating profit has increased by £1,832,000, of which£702,000 relates to impairment in property, plant and expenditure in 2006.Receivables have increased year on year, partly due to the recognition of sumsdue for the sale of the Dunfermline centre (£283,000), which are payable over 10years, and partly due to an increase in trade receivables at the year end due tothe high level of corporate events activity. Payables have also increased yearon year, arising from capital works underway at the year end. Net cash flow from operating activities, which takes into account taxation paid,has fallen by £1,392,000, with taxation paid in the year of £1,416,000 comparedwith a refund in the prior year of £66,000. This was the first year in which theGroup qualified for the requirement to pay taxation in quarterly instalments,two of which were made before the year end. The whole liability for the 2006year end was also paid during 2007. This differential will reduce next year. Control Environment The Group operates tight controls over its financial operations. Control overincome at branch level is maintained with the assistance of our bespoke bookingsystem, which, in addition to controlling pitch bookings, also encompasses acash reconciliation facility. Control over expenditure is maintained partlythrough a low level of delegated authority and partly though our recentlyimplemented bespoke purchase order system; this system is web based and permitsfull visibility from branch to director level. These systems are fully scalableand further investment will not be required as our number of centres increases. Financial Risk Management As Powerleague Group's operations are all situated within the United Kingdom,the principal financial risk is associated with interest rates. The Groupborrows in sterling at floating rates of interest. Interest risk is mitigated byregularly comparing the likelihood and cost of interest rate rises against thecost of relevant financial instruments. The Group has had no currency dealingsand therefore no foreign exchange exposures. The Group's principal financialinstruments comprise cash, short-term deposits and borrowings and longer termborrowing, together with accounts receivable and payable arising directly fromoperations. The main risk arising from these instruments is liquidity. Tomitigate the liquidity risk, cash collection is rigorously enforced and theinvestment decision process includes careful consideration of level and timingof payback and overall rates of return. Going Concern The Directors have a reasonable expectation that the Group has adequateresources to continue in operational existence for the foreseeable future. Forthis reason, they continue to adopt the going concern basis in preparing thefinancial statements. Sheena BeckwithFinance Director POWERLEAGUE GROUP PLC Group income statementfor the year ended 30 June 2007 52 weeks 52 weeks ended 30 ended 1 June 2007 July 2006 Notes £'000 £'000-----------------------------------------------------------------------------Revenue 23,030 20,488 Cost of sales (3,946) (3,640)-----------------------------------------------------------------------------Gross profit 19,084 16,848----------------------------------------------------------------------------- Administrative expenses (12,994) (11,916)Exceptional items 2 (28) (702)-----------------------------------------------------------------------------Total administration expenses (13,022) (12,618)----------------------------------------------------------------------------- -----------------------------------------------------------------------------Operating profit 6,062 4,230----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Analysed as: Operating profit excluding exceptional items 6,090 4,932 Exceptional items 2 (28) (702)----------------------------------------------------------------------------- Finance revenue - bank interest 6 -Finance costs (1,110) (995) -----------------------------------------------------------------------------Profit for the year before tax 4,958 3,235----------------------------------------------------------------------------- Tax expense 3 (1,299) (1,034) -----------------------------------------------------------------------------Profit for the year 3,659 2,201============================================================================= Earnings per ordinary share - basic and diluted 4 4.47 2.69- basic and diluted, adjusted 4 4.51 3.82 Group statement of recognised income and expensefor the year ended 30 June 2007 52 weeks 52 weeks ended 30 ended 1 June 2007 July 2006 £'000 £'000 Profit for the year 3,659 2,201----------------------------------------------------------------------------- Total recognised income and expense for the year attributable to equity holders of the parent 3,659 2,201----------------------------------------------------------------------------- Group balance sheetas at 30 June 2007 As at As at 30 June 1 July 2007 2006 Notes £'000 £'000-----------------------------------------------------------------------------Non-current assets Property, plant and equipment 43,940 41,429Intangible assets 258 258Other receivables 302 200----------------------------------------------------------------------------- 44,500 41,887----------------------------------------------------------------------------- Current assets Inventories 158 174Trade and other receivables 1,516 1,092Cash and cash equivalents 549 516----------------------------------------------------------------------------- 2,223 1,782----------------------------------------------------------------------------- Assets in disposal group held for sale - 283-----------------------------------------------------------------------------Total assets 46,723 43,952----------------------------------------------------------------------------- Current liabilities Trade and other payables 3,310 3,496Income tax payable 571 715Borrowings 4,991 3,769----------------------------------------------------------------------------- 8,872 7,980----------------------------------------------------------------------------- Non-current liabilities Other payables 329 422Borrowings 14,060 15,138Deferred tax liabilities 4,164 4,137----------------------------------------------------------------------------- 18,553 19,697----------------------------------------------------------------------------- Liabilities in disposal group held for sale - 35 -----------------------------------------------------------------------------Total liabilities 27,425 27,712----------------------------------------------------------------------------- -----------------------------------------------------------------------------Net assets 19,298 16,240----------------------------------------------------------------------------- Equity Called up share capital 8,182 8,182Share premium account 7,287 7,287Merger reserve (4,999) (4,999)Retained earnings 8,828 5,770-----------------------------------------------------------------------------Total equity 19,298 16,240----------------------------------------------------------------------------- Group cash flow statementFor the year ended 30 June 2007 52 weeks 52 weeks ended 30 ended 1 June 2007 July 2006 Notes £'000 £'000-----------------------------------------------------------------------------Net cash inflow/outflows from operating activities 5 6,183 7,575----------------------------------------------------------------------------- Cash flows from investing activities Purchase of property, plant and equipment (4,790) (6,670)Sale of property, plant and equipment 283 -Acquisition of subsidiary undertakings - (981)Cash acquired with subsidiary undertaking - 8Interest received 6 ------------------------------------------------------------------------------Net cash inflow/outflows from investing activities (4,501) (7,643)----------------------------------------------------------------------------- Cash flows from financing activities Interest paid (1,170) (997)Dividends paid to shareholders (614) -New borrowings 17,633 4,516Repayment of borrowings (17,860) (2,995)-----------------------------------------------------------------------------Net cash inflow/outflows from financing activities (2,011) 524----------------------------------------------------------------------------- -----------------------------------------------------------------------------Net decrease cash and cash equivalents (329) 456Cash and cash equivalents at beginning of year (598) (1,054)-----------------------------------------------------------------------------Cash and cash equivalents at end of (927) (598)----------------------------------------------------------------------------- NOTES TO FINANCIAL INFORMATION 1. Accounting policies Basis of preparation The consolidated financial statements have been prepared in accordance withInternational Financial Reporting Standards ("IFRS") as adopted by the EuropeanUnion as they apply to the financial statements of the Group for the year ended30 June 2007 and applied in accordance with the Companies Act 1985. Theaccounting policies which follow set out those policies which apply in preparingthe financial statements for the year ended 30 June 2007. For all periods up to and including the year ended 1 July 2006, the Groupprepared its financial statements in accordance with United Kingdom generallyaccepted accounting practice (UK GAAP). These financial statements, for the yearended 30 June 2007, are the first the Group has elected to prepare in accordancewith International Financial Reporting Standards (IFRSs). Refer to note 30 forfurther details of the transition to IFRS. The Group undertook a group reorganisation in May 2005. This arrangementresulted in the addition of a new parent company to the Group. The Group haschosen to take the IFRS 1 First Time Adoption exemption from restating businesscombinations before the date of transition to IFRS and, as such, the Group hasnot restated this business combination under IFRS but continue to apply UK GAAPmerger accounting. Further details of the IFRS exemption are included withinnote 30. The consolidated financial information has been prepared on a going concernbasis under the historical cost convention. The Group financial information ispresented in pounds sterling and all values are rounded to the nearest thousand(£'000) unless otherwise indicated. The following standards and interpretations have not been applied in theconsolidated financial information as, although in issue at the date ofpreparation, they were not effective for the periods covered by thisconsolidated financial information: Effective date IFRS 7 'Financial Instruments: Disclosures'; and the related amendment to IAS 1 on capital disclosures 1 January 2007 IFRS 8 'Operating Segments' 1 January 2009 IFRIC 10 'Interim reporting and impairment' 1 November 2006 IFRIC 11 'IFRS 2 - Group and Treasury Share Transactions' 1 March 2007 IFRIC 12 'Service Concession Arrangements' 1 January 2008 IFRIC 13 'Customer Loyalty Programmes' 1 July 2008 IFRIC 14 'The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their interaction' 1 January 2008 The Directors anticipate that the adoption of these standards andinterpretations on or after 1 July 2007 will have no material impact on thefinancial statements of the Group except for the additional disclosures oncapital and financial instruments. 2. Exceptional items 52 weeks 52 weeks ended 30 ended 1 June 2007 July 2006 £'000 £'000-----------------------------------------------------------------------------Impairment of assets held for sale - 216Loss on sale of assets 28 -Impairment of property, plant and equipment - 486-----------------------------------------------------------------------------Total exceptional items 28 702----------------------------------------------------------------------------- The impairment of assets held for sale relates to the centre at Dunfermline,which, at 1 July 2006, was the subject of a provisional sale agreement. Theimpairment reflects the difference between the carrying value of the asset andthe anticipated net proceeds from the sale. The disposal of this centre wascompleted on 25 September 2006. 3. Taxation Tax on profit on ordinary activities The charge for taxation on profit for the year comprises: 52 weeks 52 weeks ended 30 ended 1 June 2007 July 2006 £'000 £'000-----------------------------------------------------------------------------Current tax: UK corporation tax 1,329 696Adjustment in respect of prior years (57) (55)----------------------------------------------------------------------------- 1,272 641----------------------------------------------------------------------------- Deferred tax: (note 21) Origination and reversal of temporary differences 306 393 Effect of reduction in tax rate from 30% to 28% (279) ------------------------------------------------------------------------------ 27 393----------------------------------------------------------------------------- -----------------------------------------------------------------------------Charge for taxation on profit for the year 1,299 1,034----------------------------------------------------------------------------- UK corporation tax is calculated at 30% (2006: 30%) of the estimated assessableprofit for the year. Reconciliation of the total tax charge The charge for the year can be reconciled to the profit for the year beforetaxation per the consolidated income statement as follows: 52 weeks 52 weeks ended 30 ended 1 June 2007 July 2006 £'000 £'000-----------------------------------------------------------------------------Profit for the year before taxation 4,958 3,235----------------------------------------------------------------------------- Profit for the year before taxation multiplied by the standard rate of corporation tax in the UK of 30% (2006: 30%) 1,487 971Effects of: Expenses not deductible for tax purposes 136 155 Adjustment in respect of rate changes (279) - Adjustment in respect of prior years (57) (117) Other 12 25-----------------------------------------------------------------------------Charge for taxation on profit for the year 1,299 1,034----------------------------------------------------------------------------- Factors that may affect future tax chargesA deferred tax asset has not been recognised in respect of timing differencesrelating to non-trading deficits as there is insufficient evidence that theasset will be recovered. The amount of the asset not recognised is £607,000(2006: £651,000). The asset would be recovered if appropriate future taxableprofits are made. 4. Earnings per share Basic earnings per ordinary 10p share is calculated by dividing the earningsattributable to ordinary shareholders by the weighted average number of ordinaryshares in issue during the year, which was 81,820,000 (2006: 81,820,000). Diluted earnings per share is calculated by dividing the earnings attributableto ordinary shareholders by the weighted average number of ordinary sharesoutstanding during the year plus the weighted average number of ordinary sharesthat would be issued on the conversion of all the dilutive potential ordinaryshares into ordinary shares. For the year ended 30 June 2007, this was81,954,000 (2006: 81,820,000). 2007 2006 ------------------------ ----------------------- Profit for Earnings Profit for Earnings the year per share the year per share £000 p £000 P Basic earnings per share 3,659 4.47 2,201 2.69 Diluted earnings per share 3,659 4.47 2,201 2.69 Adjusted earnings per ordinary 10p share is calculated using profit adjusted forexceptional items and the taxation effect of those exceptional items. Thismeasure has been selected to exclude one-off exceptional items and thus enablefuture adjusted earnings per share calculations, which are not affected by theabove items, to be meaningfully compared with the past. 2007 2006 ------------------------ ----------------------- Profit for Earnings Profit for Earnings the year per share the year per share £000 p £000 P Basic adjusted earnings per share 3,694 4.51 3,128 3.82 Diluted adjusted earnings per share 3,694 4.51 3,128 3.82 2007 2006 No. ('000) No. ('000)----------------------------------------------------------------------------Basic weighted average number of shares 81,820 81,820Dilutive potential ordinary shares: Employee share options 134 -----------------------------------------------------------------------------Diluted weighted average number of shares 81,954 81,820---------------------------------------------------------------------------- Reconciliation of profit for the year: 52 weeks 52 weeks ended 30 ended 1 June 2007 July 2006 £'000 £'000----------------------------------------------------------------------------Profit for basic and diluted earnings per share 3,659 2,201Exceptional operating items 28 702Taxation effect of exceptional items 7 232----------------------------------------------------------------------------Profit for adjusted earnings per share 3,694 3,135---------------------------------------------------------------------------- 5. Reconciliation of cash flow from operating activities Group 52 weeks 52 weeks ended ended 30 June 2007 1 July 2006 £'000 £'000-----------------------------------------------------------------------------Retained profit 3,659 2,201Taxation expense 1,299 1,034Net interest expense 1,104 995-----------------------------------------------------------------------------Operating profit 6,062 4,230Adjustments for: Depreciation of property, plant and equipment 2,279 2,157Release of deferred grant (1) (1)Impairment of property, plant and equipment - 702Decrease/(increase) in inventories 16 (55)Increase in receivables (526) (48)(Decrease)/increase in payables (231) 524-----------------------------------------------------------------------------Cash flow generated from operating activities 7,599 7,509Income taxes (paid)/refunded (1,416) 66-----------------------------------------------------------------------------Net cash flow from operating activities 6,183 7,575----------------------------------------------------------------------------- 6. Reconciliation of net cash flow to movement in net debt 52 weeks 52 weeks ended ended 30 June 2007 1 July 2006 £'000 £'000----------------------------------------------------------------------------(Decrease)/increase in cash in the year (329) 456Net cash outflow/(inflow) from decrease/ (increase) in debt 227 (1,756)---------------------------------------------------------------------------- (102) (1,300)Movement in net debt arising from cash flows Amortisation of issue costs (9) (12)Accrued interest costs - (94)Opening net debt (18,391) (16,985)----------------------------------------------------------------------------Closing net debt (18,502) (18,391)---------------------------------------------------------------------------- 7. Analysis of changes in net debt At 2 July Cash flows Non-cash At 30 June 2006 transactions 2007 £'000 £'000 £'000 £'000------------------------------------------------------------------------------Cash in hand and at bank 516 33 - 549Bank overdraft (1,114) (362) - (1,476)------------------------------------------------------------------------------ (598) (329) - (927)Debt due within one year (2,655) (860) - (3,515)Debt due after one year (15,138) 1,087 (9) (14,060)------------------------------------------------------------------------------Closing net debt (18,391) (102) (9) (18,502)------------------------------------------------------------------------------ 8. Transition to International Financial Reporting Standards ("IFRSs") For all periods up to and including the year ended 1 July 2006, the Groupprepared its financial statements in accordance with United Kingdom generallyaccepted accounting practice (UK GAAP). The Group is required to report underIFRSs from its interim results for the six month period ended 30 December 2007but has elected to adopt IFRS earlier and these financial statements, for theyear ended 30 June 2007, are the first the Group has prepared in accordance withIFRSs as adopted by the European Union (EU). Accordingly, the Group has prepared financial statements which comply with IFRSsapplicable for periods beginning on or after 2 July 2006 and the significantaccounting policies meeting those requirements are described in note 2. In preparing these financial statements, the Group has started from an openingbalance sheet as at 3 July 2005, the Group's date of transition to IFRSs, andmade those changes in accounting policies and other restatements required byIFRS 1 for the first-time adoption of IFRSs. This note explains the principaladjustments made by the Group in restating its UK GAAP balance sheet as at 3July 2005 and its previously published UK GAAP financial statements for the yearended 1 July 2006. Exemptions applied IFRS 1 allows first-time adopters certain exemptions from the generalrequirement to apply IFRSs retrospectively. The Group has taken the followingexemptions: * IFRS 3 Business Combinations has not been applied to acquisitions of subsidiaries that occurred before 3 July 2005. Group reconciliation of equity at 3 July 2005 IAS 16 Property, IAS 19 IAS 36 IFRS 3 IAS 7 IAS 12 plant & Employee Impairment Business Cash Taxation equipment benefits of assets Combinations GAAP (note3) (note4) (note5) (note6) (note8) (note9) IFRS £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000-----------------------------------------------------------------------------------------------------Non-current assets Property, plant and equipment 61,500 (27,936) 2,860 36,424 Negative goodwill (2,110) 2,110 - Other receivables - 250 - 250----------------------------------------------------------------------------------------------------- 59,390 250 (27,936) 2,860 2,110 36,674----------------------------------------------------------------------------------------------------- Current assets Inventories 115 115 Trade and other receivables 944 50 994 Cash and cash equivalents 755 (300) 455----------------------------------------------------------------------------------------------------- 1,814 (250) 1,564----------------------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------------------Total assets 61,204 (27,936) 2,860 2,110 38,238----------------------------------------------------------------------------------------------------- Current liabilities Trade and other payables 2,857 74 2,931 Borrowings 4,164 4,164----------------------------------------------------------------------------------------------------- 7,021 74 7,095----------------------------------------------------------------------------------------------------- Non-current liabilities Other payables 498 498 Borrowings 13,276 13,276 Deferred tax liabilities 1,816 1,514 3,330----------------------------------------------------------------------------------------------------- 15,590 1,514 17,104----------------------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------------------Total liabilities 22,611 1,514 74 24,199----------------------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------------------Net assets 38,593 (1,514) (27,936) (74) 2,860 2,110 14,039----------------------------------------------------------------------------------------------------- Equity Called up share capital 8,182 8,182 Share premium account 7,287 7,287 Merger reserve - (4,999) (4,999) Revaluation reserve 19,458 (19,458) - Retained earnings 3,666 (1,514) (3,479) (74) 2,860 2,110 3,569-----------------------------------------------------------------------------------------------------Total equity 38,593 (1,514) (27,936) (74) 2,860 2,110 14,039----------------------------------------------------------------------------------------------------- Group reconciliation of equity at 1 July 2006 IFRS 5 IAS 7 IAS 16 non- non- IAS 12 Property, IAS 19 IAS 36 IFRS 3 current curren Income plant & Employee Impairment Business assets assets taxes equipment benefits of assets Combinations GAAP (note2) (note3) (note4) (note5) (note6) (note8) (note9) IFRS £'000 £000 £'000 £'000 £'000 £'000 £'000 £'000 £'000-------------------------------------------------------------------------------------------------------------Non-current assets Property, plant and equipment 68,984 (283) (29,646) 2,374 41,429 Negative goodwill (1,915) (118) 2,291 258 Other receivables 200 200------------------------------------------------------------------------------------------------------------- 67,069 (401) 200 (29,646) 2,374 2,291 41,887------------------------------------------------------------------------------------------------------------- Current assets Inventories 174 174 Trade and other receivables 1,042 50 1,092 Cash and cash equivalents 766 (250) 516------------------------------------------------------------------------------------------------------------- 1,982 (200) 1,782------------------------------------------------------------------------------------------------------------- Assets in disposal group heldfor sale 283 283------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------Total assets 69,051 (118) (29,646) 2,374 2,291 43,952------------------------------------------------------------------------------------------------------------- Current liabilities Trade and other payables 3,408 88 3,496 Taxation payable 715 715 Borrowings 3,769 3,769------------------------------------------------------------------------------------------------------------- 7,892 88 7,980------------------------------------------------------------------------------------------------------------- Non-current liabilities Other payables 457 (35) 422 Borrowings 15,138 15,138 Deferred tax liabilities 2,640 1,076 421 4,137------------------------------------------------------------------------------------------------------------- 18,235 (35) 1,076 421 19,697-------------------------------------------------------------------------------------------------------------Liabilities in disposal group held for sale 35 35-------------------------------------------------------------------------------------------------------------Total liabilities 26,127 1,076 88 421 27,712------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------Net assets 42,924 (118) (1,076) (29,646) (88) 2,374 1,870 16,240------------------------------------------------------------------------------------------------------------- Equity Called up share capital 8,182 8,182 Share premium account 7,287 7,287 Merger reserve - (4,999) (4,999) Revaluation reserve 21,168 (21,168) - Retained earnings 6,287 (118) (1,076) (3,479) (88) 2,374 1,870 5,770-------------------------------------------------------------------------------------------------------------Total equity 42,924 (118) (1,076)(29,646) (88) 2,374 1,870 16,240------------------------------------------------------------------------------------------------------------- Company reconciliation of equity as at 3 July 2005 UK GAAP IAS 27 IFRSs Consolidated & separate accounts £'000 (note 7) £'000-----------------------------------------------------------------------Non-current assets Investments 5,026 16,974 22,000----------------------------------------------------------------------- 5,026 16,974 22,000----------------------------------------------------------------------- Current assets Trade and other receivables 10,399 10,399----------------------------------------------------------------------- Net assets 15,425 16,974 32,399----------------------------------------------------------------------- Represented by: Capital and reserves Called up share capital 8,182 8,182 Share premium account 7,287 7,287 Merger reserve 16,974 16,974 Retained earnings (44) (44)-----------------------------------------------------------------------Shareholders' funds 15,425 16,974 32,399----------------------------------------------------------------------- Company reconciliation of equity as at 1 July 2006 UK GAAP IAS 27 IFRSs Consolidated & separate accounts £'000 (note 7) £'000-----------------------------------------------------------------------Non-current assets Investments 5,026 16,974 22,000----------------------------------------------------------------------- 5,026 16,974 22,000----------------------------------------------------------------------- Current assets Trade and other receivables 10,866 10,866----------------------------------------------------------------------- Total assets 15,892 16,974 32,866-----------------------------------------------------------------------Current liabilities Income tax payable 172 172-----------------------------------------------------------------------Total liabilities 172 172-----------------------------------------------------------------------Net assets 15,720 16,974 32,694----------------------------------------------------------------------- Represented by: Capital and reserves Called up share capital 8,182 8,182 Share premium account 7,287 7,287 Merger reserve - 16,974 16,974 Retained earnings 251 251-----------------------------------------------------------------------Shareholders' funds 15,720 16,974 32,694----------------------------------------------------------------------- Group reconciliation of profit for the year ended 1 July 2006 UK GAAP Restated IFRS £'000 (note 10) £'000------------------------------------------------------------------------------Revenue 20,488 20,488 Cost of sales (3,640) (3,640) ----------------------------------Gross profit 16,848 16,848 Administrative expenses (12,018) 102 (11,916)Exceptional items (96) (606) (702) ----------------------------------Total administration expenses (12,114) (504) (12,618) Operating profit 4,734 (504) 4,230 Loss on disposal of fixed assets (319) 319 - Finance costs (995) - (995) ----------------------------------Profit for the year before tax 3,420 (185) 3,235 Tax expense (1,472) 438 (1,034) ----------------------------------Profit for the year 1,948 253 2,201------------------------------------------------------------------------------ Notes to the restatement of equity from UK GAAP to IFRS (1) IFRS 3 - 'Business combinations' The Group has taken the option exemption under IFRS 1 'First Time Adoption ofInternational Reporting Standards' not to apply IFRS 3 - 'Business combinations'retrospectively to acquisitions or mergers which occurred prior to 2 July 2005.As required in IFRS 3, the Group has revisited the acquisition accounting for JJBoyle Leisure Ltd which was acquired in May 2006 and as a result, goodwill hasarisen on acquisition for the year ended 1 July 2006 (see note (9) below). (2) IFRS 5 - 'Non-current assets held for sale' Under UK GAAP, assets held for sale are not separately classified, but heldwithin Total Fixed Assets. IFRS 5 requires that any assets held for sale and anyrelated liabilities should be separately classified on the balance sheet andshould not be depreciated from the date they meet the criteria to be recognisedas held for sale. At 1 July 2006, £283,000 was classified as being held forsale, being the impaired net book value of the Dunfermline centre. It met thecriteria of being held for sale in May 2006 with a credit to profit of £2,000from the reduction in depreciation. Negative goodwill held on the balance sheet under UK GAAP was de-recognised attransition and accordingly the amount released on disposal of this centre of£118,000 was charged to profit. Increased costs of disposal increased theimpairment by a further £2,000. (3) IAS 7 - 'Cash and cash equivalents" Under UK GAAP, cash on hand included deposits held on escrow by third partieswith the potential to be released back to the Group on satisfaction of certainconditions, over a period of up to five years. However, IAS 7 defines cashequivalents as those with an expected maturity of less than three months.Consequently, balances of £300,000 and £250,000 are reclassified from cash andcash equivalents in the Group Balance Sheet as at 3 July 2005 and 1 July 2006respectively. (4) IAS 12 - 'Income taxes' Under UK GAAP, there is no provision made for deferred taxation on assets whichhave been revalued, as there was no commitment at each Balance Sheet date torealise the assets in a manner giving rise to a tax liability. IAS 12 requiresthat where assets are revalued and they are subsequently being depreciated, atemporary difference exists and provision for deferred taxation is required. Whilst the majority of revaluations previously held in the balance sheet havebeen reversed under IAS 16, where these revaluations related to the fair valueadjustment of an acquisition, the revaluation cannot be reversed. Accordingly, adeferred taxation liability of £1,514,000 has been recognised at 2 July 2005, onthe assets of the VIDA acquisition. As the assets underlying the provision are depreciated, the temporary differencereverses. A release has been made from deferred taxation of £438,000 in the yearended 1 July 2006. The net impact of the IFRS changes on deferred taxation is as follows: 2005 2006 £'000 £'000Provision on VIDA assets 1,514 1,514Reversal of temporary differences (438)--------------------------------------------------------------------Change in deferred taxation provision 1,514 1,076-------------------------------------------------------------------- (5) IAS 16 - 'Property, Plant and Equipment' Under UK GAAP, at the date of transition, properties were carried at theirrevalued amount on the basis of their value in use. The Group has elected not totake the exemption under IFRS 1 'First Time Adoption of International ReportingStandards' to measure assets at transition at their fair value or previouslyrevalued amount under IFRS, but has applied IAS 16 retrospectively to measureassets at their depreciated historical cost. The impact on equity is as follows: 2005 2006 £'000 £'000Elimination of revaluation reserve (24,457) (26,840)Amounts previously applied to eliminate mergerreserve 4,999 4,999Transfer to profit and loss reserve - 673--------------------------------------------------------------------Change in revaluation reserve (19,458) (21,168)-------------------------------------------------------------------- Reversal of previous impairment credit (note below) (3,523) (3,523)Reduction of depreciation 44 44--------------------------------------------------------------------Change in profit and loss reserve (3,479) (3,479)-------------------------------------------------------------------- --------------------------------------------------------------------Amounts previously applied to eliminate merger reserve (4,999) (4,999)--------------------------------------------------------------------Change in merger reserve (4,999) (4,999)-------------------------------------------------------------------- --------------------------------------------------------------------Net change in reserves (27,936) (29,646)-------------------------------------------------------------------- Note: under UK GAAP, where a revaluation surplus related to a former impairmentof assets, this surplus was credited to the profit and loss account. Under IFRS,on reversal of the revaluation, this credit has therefore been reversed also. Under UK GAAP, gains or losses on disposal of assets were classified asnon-operating and reported separately. Under IFRS, this classification is notrecognised and therefore the loss on disposal of £319,000 has been reclassifiedas operating costs. (6) IAS 19 - 'Employee benefits' - employee benefit accruals Under UK GAAP, FRS 12 (Provisions, contingent liabilities and contingent assets)allowed for varying practical implementation and the Group did not make aprovision for holiday pay. IAS 19 requires that when employees provide a serviceto a company, the estimated amount that will be paid in exchange for theseservices should be recognised. On transition to IFRS, the company has recognised an accrual for employeebenefits in respect of holiday pay. The adjustment on transition reflects acumulative adjustment at the date of transition and following transition, themovement in this accrual reflects the current year service cost. Arising from the recognition of this accrual, net assets have been reduced by£74,000 as at 1 July 2005 and £14,000 at 2 July 2006. (7) IAS 27 - 'Consolidated and Separate Financial Statements' Under UK GAAP merger accounting, the investment of Powerleague Group plc('Group') in Powerleague Fives Ltd ("Fives") was stated at the nominal value ofthe shares issued to the subsidiaries and the difference between the nominalvalue of shares issued and shares received was recognised in a merger reserve.IAS 27 requires the carrying value of an investment to be stated at the lower ofcost and estimated recoverable amount. "Cost" is defined as the amount of cashor cash equivalents paid or the fair value of the considerations given, toacquire an asset. Group acquired the shares in Fives concurrent with floating onAIM. As Fives comprises the entire business operation it is reasonable to valuethe shares in Fives at the market value of the Group shares on flotation i.e.44p. Accordingly, the fair value of the investment in Fives has been restated at£22,000,000. (8) IAS 36 - 'Impairment of Assets' In common with UK GAAP, IAS 36 requires that a review is carried out at leastannually to ensure that the carrying value of an asset is not in excess of itsrecoverable amount, being the higher of an asset's (or cash-generating unit's)fair value less costs to sell and its value in use. The future cash flow of eachcentre has been compared with its carrying value at transition and at 1 July2006. The following adjustments have been made to carrying value: 2005 2006 £'000 £'000Reversal of previous impairment 2,860 3,322Impairment of property, plant and equipment - (948)--------------------------------------------------------------------------Net change in reserves 2,860 2,374-------------------------------------------------------------------------- The reversal of previous impairment of tangible fixed assets relates to animpairment of certain facilities that was recognised in the profit and lossaccount in the year ended 30 June 2001 and has arisen as a result of animprovement in trading performance and in the expected cash flows arising fromthe operation of these facilities. (9) IFRS 3 - 'Business Combinations' Under UK GAAP, entities are permitted to capitalise negative goodwill arising ona business combination. However, IFRS 3 prohibits this treatment and requiresthat any excess of an acquirer's interest in the net fair value of an acquiree'sidentifiable net assets over the cost of those assets should be recognisedimmediately in profit or loss. As a result, the entity has derecognised negativegoodwill as noted in the table below. As required in IFRS 3, the Group has alsorevisited the acquisition accounting for JJ Boyle Leisure Ltd which was acquiredin May 2006 and as a result, goodwill has arisen on acquisition for the yearended 1 July 2006. This is shown in the following table: 2005 2006 £'000 £'000De-recognition of negative goodwill at 2 July 2005 2,110 2,110Reversal of release of negative goodwill for yearto 1 July 2006 (240)Reversal of negative goodwill originally recognisedon acquisition 163Goodwill on acquisition of JJ Boyle Leisure Ltd 258Deferred tax (421)--------------------------------------------------------------------------Net change in reserves 2,110 1,870-------------------------------------------------------------------------- (10) Restatement of profit for the year ended 1 July 2006 from UK GAAP to IFRS The effect of the above GAAP differences on reported profit of the Group for theyear ended 1 July 2006 is as follows: 1 July 2006 Note £'000--------------------------------------------------------------------------Reported profit under UK GAAP 1,948 Reduction in depreciation arising from reclassification of asset held for sale (2) 2Reduction in depreciation arising from restatement to historical cost (5) 673Reclassification of non-operating loss on disposal of fixed assets to operating costs (5) (319)Holiday pay accrual (6) (14)Reversal of amortisation of negative goodwill (9) (240)--------------------------------------------------------------------------Decrease in administrative expenses 102-------------------------------------------------------------------------- Increase in impairment of assets held for sale (2) (120)Impairment of property, plant & equipment (8) (948)Restatement of impairment previously based on revalued amounts (8) 462Increase in exceptional items (606)-------------------------------------------------------------------------- Reclassification of disposal of fixed assets to (5) 319depreciation --------------------------------------------------------------------------Impact of taxation changes (4) 438-------------------------------------------------------------------------- --------------------------------------------------------------------------Reported profit for the year under IFRS 2,201-------------------------------------------------------------------------- (11) Restatement of cash flow statement from UK GAAP to IFRS The transition from UK GAAP to IFRS has no effect on reported cash flowsgenerated by the Group. The IFRS cash flow statement is presented in a differentformat from that required under UK GAAP, with cash flows split into threecategories of activity - operating activities, investing activities andfinancing activities. The reconciling items between the UK GAAP presentation andthe IFRS presentation have no net impact on the cash flows generated. 9. Annual report and accounts The annual report and accounts for the year ended 30 June 2007 will be posted toShareholders in October 2007. Additional copies will be available via theCompany's website, www.powerleagueplc.com, or from the Company Secretary at theCompany's Head Office at Anchor Grounds, Blackhall St, Paisley, PA1 1TD. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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