30th Mar 2005 07:00
Charlton Athletic PLC30 March 2005 CHARLTON ATHLETIC PLC ("Charlton" or the "Company")30 March 2005 INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 DECEMBER 2004 CHAIRMAN'S INTERIM STATEMENT In this, the football club's centenary season, I present the Company's tradingresults for the six months to 31 December 2004. The Company recorded a net lossof £1,682,000 on turnover of £19.5m. Overall turnover fell by 8% and overheadsincreased by 7% when compared with the results to 31 December 2003. However,these results are broadly in line with our forecasts. FINANCIAL HIGHLIGHTS 6 months ended 6 months ended 31 December 31 December 2004 2003 Turnover 19,483 21,258Operating overheads (19,974) (18,556)Operating (loss)/profit before playeramortisation and player trading (491) 2,702Amortisation of player costs (2,085) (2,085)Exceptional charge (0) (1,041)Profit on player disposals 1,063 19Net loss (1,682) (690) Net assets 26,163 16,037 The key element of our turnover remains the income we receive through thecentral FA Premier League broadcast and commercial contracts. The new three-yeardomestic and international broadcasting rights contracts have resulted in a 10%reduction in the amount received compared to the last year of the previousagreement. This is the principal reason for the reduction in turnover. We are pleased to report that we again have in excess of 21,500 season ticketholders. Our match income in this period was earned from ten home matches in thePremiership, an increase of one Premiership match from last season and so therewas an increase in gate receipts and other commercial income in this period. Wehave recently initiated a new service called Valley Express that provides both amatch ticket and coach transport from 60 towns in Kent, Surrey, Sussex andEssex. This has been very successful with in excess of 1,000 supportersregularly using the service. Our costs have risen again this period due mainly to increased personnel squadcosts and although the rate of increase has fallen significantly from last year,we are committed to keep close control over these costs. They currentlyrepresent 73% of our turnover. The Company used the profit generated last year, principally from the sale ofScott Parker to Chelsea, to develop and strengthen the playing squad, committingan initial £7.6m on the costs of acquiring players and there is a further £2m ofcontingent payments forecast. As a result we have welcomed Stephan Andersen,Bryan Hughes, Francis Jeffers, Talal El Karkouri, Danny Murphy, and DennisRommedahl to our football club. As I write the team are in 7th position in the Premiership with 43 points from30 matches, and with our status now assured we once again enter the final stageof the season with a very real prospect of bringing European football to TheValley. This season also offered the prospect of an extended run in the FA Cup,when having won our first two matches at The Valley we surprisingly lost toLeicester City in the fifth round. Losing at home to Crystal Palace in the thirdround of the Carling Cup was also a big disappointment. At all levels the football club is in a healthy position. The reserve team isset to retain the FA Premier Reserve League championship, the youth academyteams are performing well at all levels and most importantly four academyplayers have signed professional contracts since the beginning of the season.The women's team has qualified to play Everton in the Women's FA Cup final andis currently top of the Women's FA Premier League. This all demonstrates thestrength in depth that the football club has developed. The FA Premier League faces many new challenges going forward. We collectivelymust not allow our product to be overexposed on television as ultimately thiswill almost certainly lead to a decline in match attendances. In addition to theeffect this could have on revenues, I am particularly concerned that we protectthe level of away support as this provides the passionate atmosphere, which isso integral to the popularity and appeal of Premiership football throughout theworld. We must implement measures, including greater fairness in the distribution ofbroadcasting revenues, aimed at enhancing the competitiveness of the League.Predictability is the enemy of even our most successful clubs. We will continue to build Charlton Athletic with the same level of commitmentand financial responsibility that we have demonstrated in recent years and Iremain very confident about our future. Richard Murray21 March 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNTFor the six months ended 31 December 2004 Unaudited results Operations 6 months 12 months excluding Amortisation to 31 December to 30 amortisation and player 2003 June and player trading Total 2004 trading Unaudited Unaudited Unaudited Unaudited Audited £'000 £'000 £'000 £'000 £'000 TURNOVER 19,483 0 19,483 21,258 42,606 Operating expenses (19,974) (2,085) (22,059) (20,641) (42,605)Exceptional items 0 0 0 (1,041) (40) OPERATING (LOSS)/PROFIT (491) (2,085) (2,576) (424) (39) Profit on disposal of 0 1,063 1,063 19 11,659players (LOSS)/PROFIT BEFORE (491 (1,022) (1,513) (405) 11,620INTEREST AND TAXATION Net interest payable (169) (285) (502) (LOSS)/PROFIT ON ORDINARY (1,682) (690) 11,118ACTIVITIES BEFORETAXATION Taxation 0 0 0 (LOSS)/PROFIT for the (1,682) (690) 11,118period (LOSSES)/EARNINGS PER (3.1)p (1.3)p 20.2pSHARE (pence) CONSOLIDATED BALANCE SHEETat 31 December 2004 As at As at 31 December 2003 30 June 2004 Unaudited Unaudited Audited £'000 £'000 £'000FIXED ASSETSTangible fixed assets 35,317 35,697 35,309Intangible assets 10,022 5,586 4,685 45,339 41,283 39,994CURRENT ASSETSStocks 274 275 152Debtors 3,499 751 7,580Cash at bank and in hand 4,188 0 10,488TOTAL ASSETS 53,300 42,309 58,214 Creditors falling due within one year and (13,695) (10,551) (15,655)deferred income TOTAL ASSETS LESS CURRENT LIABILITIES 39,605 31,758 42,559 Creditors falling due after one year (7,749) (9,897) (8,774)Grants and deferred income (5,693) (5,824) (5,940) NET ASSETS 26,163 16,037 27,845 CAPITAL AND RESERVESCalled up share capital 27,485 27,485 27,485Share premium account 2,019 2,019 2,019Revaluation reserve 6,535 6,560 6,547Profit and loss account (9,876) (20,027) (8,206) EQUITY SHAREHOLDERS'FUNDS 26,163 16,037 27,845 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the six months ended 31 December 2004 1. The financial statements combine the results of Charlton Athletic plc and its two subsidiaries, Charlton Athletic Football Company Limited and Charlton Athletic Holdings Limited. The financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention, as modified by the revaluation of freehold properties. 2. Turnover represents income receivable from commercial activities excluding transfer fees and value added tax. 3. Grants received in respect of safety work and ground improvement are treated as deferred income and released to the profit and loss account over the life of the assets to which they relate. 4. The net amount received by the Company through long term season ticket schemes is treated as deferred income in the balance sheet and is released to the profit and loss account over the period for which the investors receive their season ticket. 5. Tangible fixed assets are written down over their estimated useful lives. 6. The costs of obtaining players' registrations are capitalised and amortised evenly over the period of the respective players' contracts. Provision is made, where in the opinion of the directors, an impairment of the carrying value of the player's registrations has occurred. These provisions are shown as exceptional items. 7. Signing on fees are recognised in the profit and loss account evenly through the period covered by the players' contracts. 8. There is no liability for corporation taxation arising in the period. 9. The Company has no recognised gains or losses other than the profit shown for the financial period. 10. The calculation of earnings per share is based on the loss of £1,682,000 (2003: loss £690,000) for the six months and on the weighted average of 54,969,293 shares in issue during this period (2003: 54,969,293). 11. The financial information for the six months ended 31 December 2003 and 31 December 2004 contained in this statement is unaudited and does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985 ("the Act"). The financial information for the year ended 30 June 2004 is an abridged version of the group's published financial statements for that period, which contained an unqualified audit report and which has been filed with the Registrar of Companies. The audit report contained no statement under Section 237 (2) or (3) of the Act. 12. Copies of this statement are being sent to shareholders and are available from Charlton Athletic plc, The Valley, Floyd Road, London, SE7 8BL. These results were announced to the London Stock Exchange on 30 March 2005 anddistributed to shareholders at that date. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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