Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2018shares | |
Entity Registrant Name | Manchester United plc |
Entity Central Index Key | 1,549,107 |
Document Type | 20-F |
Document Period End Date | Jun. 30, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --06-30 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Class A ordinary shares | |
Entity Common Stock, Shares Outstanding | 40,526,390 |
Class B ordinary shares | |
Entity Common Stock, Shares Outstanding | 124,000,000 |
Consolidated income statement
Consolidated income statement - GBP (£) £ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Consolidated income statement | ||||
Revenue | £ 590,022 | £ 581,204 | £ 515,345 | |
Operating expenses | (564,006) | (511,315) | (436,709) | |
Profit/(loss) on disposal of intangible assets | 18,119 | 10,926 | (9,786) | |
Operating profit/(loss) | 44,135 | 80,815 | 68,850 | |
Finance costs | (24,233) | (25,013) | (20,459) | |
Finance income | 6,195 | 736 | 442 | |
Net finance costs | (18,038) | (24,277) | (20,017) | |
Profit on ordinary activities before tax | 26,097 | 56,538 | 48,833 | |
Tax expense | (63,367) | (17,361) | (12,462) | |
(Loss)/profit for the year | £ (37,270) | £ 39,177 | £ 36,371 | |
(Loss)/earnings per share during the year | ||||
Basic (loss)/earnings per share | £ (0.2270) | £ 0.2388 | £ 0.2219 | |
Diluted (loss)/earnings per share | [1] | £ (0.2270) | £ 0.2382 | £ 0.2213 |
[1] | For the year ended 30 June 2018, potential ordinary shares are antidilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded. For the years ended 30 June 2017 and 2016, potential ordinary shares have been treated as dilutive, as their inclusion in the diluted earnings per share calculation decreases earnings per share. |
Consolidated statement of compr
Consolidated statement of comprehensive income - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated statement of comprehensive income | |||
(Loss)/profit for the year | £ (37,270) | £ 39,177 | £ 36,371 |
Items that may be subsequently reclassified to profit or loss | |||
Cash flow hedges (note 31.2) | 25,878 | 1,946 | (58,025) |
Tax (expense)/credit relating to cash flow hedges (note 31.2) | (21,892) | (681) | 20,307 |
Other comprehensive income/(loss) for the year, net of tax | 3,986 | 1,265 | (37,718) |
Total comprehensive (loss)/income for the year | £ (33,284) | £ 40,442 | £ (1,347) |
Consolidated balance sheet
Consolidated balance sheet - GBP (£) | Jun. 30, 2018 | Jun. 30, 2017 |
Non-current assets | ||
Property, plant and equipment | £ 245,401,000 | £ 244,738,000 |
Investment property | 13,836,000 | 13,966,000 |
Intangible assets | 799,640,000 | 717,544,000 |
Derivative financial instruments | 4,807,000 | 1,666,000 |
Trade and other receivables | 4,724,000 | 15,399,000 |
Tax receivable | 547,000 | |
Deferred tax asset | 63,974,000 | 142,107,000 |
Total non-current assets | 1,132,929,000 | 1,135,420,000 |
Current assets | ||
Inventories | 1,416,000 | 1,637,000 |
Derivative financial instruments | 1,159,000 | 3,218,000 |
Trade and other receivables | 168,060,000 | 103,732,000 |
Tax receivable | 800,000 | |
Cash and cash equivalents | 242,022,000 | 290,267,000 |
Total current assets | 413,457,000 | 398,854,000 |
Total assets | 1,546,386,000 | 1,534,274,000 |
Equity | ||
Share capital | 53,000 | 53,000 |
Share premium | 68,822,000 | 68,822,000 |
Merger reserve | 249,030,000 | 249,030,000 |
Hedging reserve | (27,738,000) | (31,724,000) |
Retained earnings | 135,099,000 | 191,436,000 |
Total equity | 425,266,000 | 477,617,000 |
Non-current liabilities | ||
Derivative financial instruments | 655,000 | |
Trade and other payables | 104,271,000 | 83,587,000 |
Borrowings | 486,694,000 | 497,630,000 |
Deferred revenue | 37,085,000 | 39,648,000 |
Deferred tax liabilities | 28,559,000 | 20,828,000 |
Total non-current liabilities | 656,609,000 | 642,348,000 |
Current liabilities | ||
Derivative financial instruments | 1,253,000 | |
Tax liabilities | 3,874,000 | 9,772,000 |
Trade and other payables | 267,996,000 | 190,315,000 |
Borrowings | 9,074,000 | 5,724,000 |
Deferred revenue | 183,567,000 | 207,245,000 |
Total current liabilities | 464,511,000 | 414,309,000 |
Total equity and liabilities | £ 1,546,386,000 | £ 1,534,274,000 |
Consolidated statement of chang
Consolidated statement of changes in equity | Share capitalGBP (£) | Share premiumGBP (£) | Merger reserveGBP (£) | Hedging reserveGBP (£) | Retained earningsGBP (£) | USD ($) | GBP (£) |
Equity at beginning of period at Jun. 30, 2015 | £ 52,000 | £ 68,822,000 | £ 249,030,000 | £ 4,729,000 | £ 155,285,000 | £ 477,918,000 | |
Comprehensive income (loss) | |||||||
(Loss)/profit for the year | 36,371,000 | 36,371,000 | |||||
Cash flow hedges | (58,025,000) | (58,025,000) | |||||
Tax (expense)/credit relating to cash flow hedges | 20,307,000 | 20,307,000 | |||||
Total comprehensive (loss)/income for the year | (37,718,000) | 36,371,000 | (1,347,000) | ||||
Equity-settled share-based payments (note 22) | 1,795,000 | 1,795,000 | |||||
Dividends paid (note 12) | (20,084,000) | $ (29,501,000) | (20,084,000) | ||||
Equity at end of period at Jun. 30, 2016 | 52,000 | 68,822,000 | 249,030,000 | (32,989,000) | 173,367,000 | 458,282,000 | |
Comprehensive income (loss) | |||||||
(Loss)/profit for the year | 39,177,000 | 39,177,000 | |||||
Cash flow hedges | 1,946,000 | 1,946,000 | |||||
Tax (expense)/credit relating to cash flow hedges | (681,000) | (681,000) | |||||
Total comprehensive (loss)/income for the year | 1,265,000 | 39,177,000 | 40,442,000 | ||||
Equity-settled share-based payments (note 22) | 2,187,000 | 2,187,000 | |||||
Dividends paid (note 12) | (23,295,000) | (29,525,000) | (23,295,000) | ||||
Proceeds from shares issued (note 21) | 1,000 | 1,000 | |||||
Equity at end of period at Jun. 30, 2017 | 53,000 | 68,822,000 | 249,030,000 | (31,724,000) | 191,436,000 | 477,617,000 | |
Comprehensive income (loss) | |||||||
(Loss)/profit for the year | (37,270,000) | (37,270,000) | |||||
Cash flow hedges | 25,878,000 | 25,878,000 | |||||
Tax (expense)/credit relating to cash flow hedges | (21,892,000) | (21,892,000) | |||||
Total comprehensive (loss)/income for the year | 3,986,000 | (37,270,000) | (33,284,000) | ||||
Equity-settled share-based payments (note 22) | 2,915,000 | 2,915,000 | |||||
Dividends paid (note 12) | (21,982,000) | $ (29,555,000) | (21,982,000) | ||||
Equity at end of period at Jun. 30, 2018 | £ 53,000 | £ 68,822,000 | £ 249,030,000 | £ (27,738,000) | £ 135,099,000 | £ 425,266,000 |
Consolidated statement of cash
Consolidated statement of cash flows - GBP (£) | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Cash flows from operating activities | ||||
Cash generated from operations | £ 119,604,000 | £ 251,759,000 | £ 200,864,000 | |
Interest paid | (18,904,000) | (19,523,000) | (13,219,000) | |
Interest received | 1,187,000 | 736,000 | 487,000 | |
Tax paid | (6,637,000) | (5,312,000) | (2,040,000) | |
Net cash generated from operating activities | 95,250,000 | 227,660,000 | 186,092,000 | |
Cash flows from investing activities | ||||
Payments for property, plant and equipment | (13,260,000) | (8,373,000) | (5,101,000) | |
Proceeds from sale of property, plant and equipment | 81,000 | 19,000 | ||
Payments for investment property | (641,000) | |||
Payments for intangible assets | [1] | (154,955,000) | (193,825,000) | (138,095,000) |
Proceeds from sale of intangible assets | [1] | 46,865,000 | 51,871,000 | 38,357,000 |
Net cash used in investing activities | (121,269,000) | (150,968,000) | (104,820,000) | |
Cash flows from financing activities | ||||
Repayment of borrowings | (419,000) | (395,000) | (371,000) | |
Dividends paid | (21,982,000) | (23,295,000) | (20,084,000) | |
Net cash used in financing activities | (22,401,000) | (23,690,000) | (20,455,000) | |
Net (decrease)/increase in cash and cash equivalents | (48,420,000) | 53,002,000 | 60,817,000 | |
Cash and cash equivalents at beginning of year | 290,267,000 | 229,194,000 | 155,752,000 | |
Exchange gains on cash and cash equivalents | 175,000 | 8,071,000 | 12,625,000 | |
Cash and cash equivalents at end of year | £ 242,022,000 | £ 290,267,000 | £ 229,194,000 | |
[1] | Payments and proceeds for intangible assets primarily relate to player and key football management staff registrations. When acquiring or selling players’ and key football management staff registrations it is normal industry practice for payments terms to spread over more than one year and consideration may also include non-cash items. Details of registrations additions and disposals are provided in note 15. Trade payables in relation to the acquisition of registrations at the balance sheet date are provided in note 23. Trade receivables in relation to the disposal of registrations at the balance sheet date are provided in note 19. |
General information
General information | 12 Months Ended |
Jun. 30, 2018 | |
General information | |
General information | 1 General information Manchester United plc (the "Company") and its subsidiaries (together the "Group") is a professional football club together with related and ancillary activities. The Company incorporated under the Companies Law (2011 Revision) of the Cayman Islands, as amended and restated from time to time. The address of its principal executive office is Sir Matt Busby Way, Old Trafford, Manchester M16 0RA, United Kingdom. The Company's shares are listed on the New York Stock Exchange. These financial statements are presented in pounds sterling and all values are rounded to the nearest thousand (£'000) except when otherwise indicated. These financial statements were approved by the board of directors on 28 September 2018. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Jun. 30, 2018 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2 Summary of significant accounting policies The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 2.1 Basis of preparation The consolidated financial statements of Manchester United plc have been prepared on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB") and IFRS Interpretations Committee ("IFRS IC") interpretations. The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities (including derivative financial instruments) which are recognized at fair value through profit and loss, unless cash flow hedge accounting applies. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 3. 2.1.1 Changes in accounting policy and disclosures a) New standards, amendments and interpretations No new standards, amendments or interpretations, effective for the first time for the financial year beginning on or after 1 July 2017, have had a material impact on the consolidated financial statements of the Group. b) New standards, amendments and interpretations not yet adopted A number of new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 July 2017, and have not been applied in preparing these consolidated financial statements. None of these is expected to have a significant effect on the consolidated financial statements of the Group, except as set out below. • IFRS 9, "Financial instruments", addresses the classification, measurement and recognition of financial assets and financial liabilities. The impact of IFRS 9 has been assessed and the new standard does not have a significant effect on the classification and measurement of financial assets and financial liabilities. IFRS 9 also introduces the expected credit losses model for the recognition of financial asset impairment which replaces the incurred loss model of IAS 39. Management does not expect a significant change to the recognition of impairments under the new standard. In addition, the Group's current hedge relationships will qualify as continuing hedges upon the adoption of IFRS 9. The new standard also introduces expanded disclosure requirements and changes in presentation. These will change the nature and extent of the Group's disclosures about its financial instruments particularly in the year of adoption of the new standard. The Group will adopt IFRS 9 from 1 July 2018. • IFRS 15, "Revenue from contracts with customers", deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows from an entity's contracts with customers. The standard replaces IAS 18, "Revenue" and IAS 11, "Construction Contracts" and related interpretations. The impact of IFRS 15 has been assessed by management including a thorough review of existing contractual arrangements. IFRS 15 focuses on the identification and satisfaction of performance obligations and includes specific guidance on the methods for measuring progress towards complete satisfaction of a performance obligation. Such guidance was not present in IAS 18 and therefore treatment was open to interpretation. As a result of the specific guidance in IFRS 15, revenue on certain commercial contracts will be recognized earlier under the new standard. The directors estimate that the opening balance sheet adjustment on 1 July 2018 will be to increase net assets by £1.8 million. The Group will adopt IFRS 15 from 1 July 2018 and will apply the standard retrospectively to each prior reporting period presented. • IFRS 16, "Leases" addresses the definition of a lease, recognition and measurement of leases and establishes principles for reporting useful information to users of financial statements about the leasing activities of both lessees and lessors. A key change arising from IFRS 16 is that most operating leases will be accounted for on balance sheet for lessees. As at the reporting date, the Group has non-cancellable operating lease commitments, however, the Group has not yet determined to what extent these commitments will result in the recognition of an asset and a liability for future payments and how this will affect the Group's profit and classification of cash flows. The Group expects to adopt IFRS 16 from 1 July 2019. 2.2 Consolidation Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognized amounts of the acquiree's identifiable net assets. Acquisition-related costs are expensed as incurred. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any previous interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total consideration transferred, non-controlling interest recognized and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized directly in the income statement. Inter-company transactions, balances and unrealized gains and losses on transactions between Group companies are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. 2.3 Segment reporting The Group has one reportable segment, being the operation of a professional football club. The Chief Operating Decision Maker (being the board of directors and executive officers of Manchester United plc), who is responsible for allocating resources and assessing performance obtains financial information, being the Consolidated income statement, Consolidated balance sheet and Consolidated statement of cash flows, and the analysis of changes in net debt, about the Group as a whole. The Group has investment property, however, this is not considered to be a material business segment and is therefore not reported as such. 2.4 Foreign currency translation a) Functional and presentation currency Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in pounds sterling, which is the Group's presentation currency. b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where settlements of such transactions, and from the translation at year-end exchange rates items, are re-measured. Foreign exchange gains and losses resulting from the settlement of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement, except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to unhedged borrowings are presented in the income statement within finance costs or income. All other foreign exchange gains and losses are presented in the income statement within operating expenses. c) Group companies The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentational currency are translated into the presentational currency as follows: (i) assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; (ii) income and expenses for each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of each transaction); and (iii) all resulting exchange differences are recognized in other comprehensive income. On disposal of a foreign operation any cumulative exchange differences held in equity are reclassified to the income statement. d) Exchange rates The most important exchange rates per £1.00 that have been used in preparing the financial statements are: Closing rate Average rate 2018 2017 2016 2018 2017 2016 Euro US Dollar 2.5 Revenue recognition Revenue is measured at the fair value of consideration received or receivable from the Group's principal activities excluding transfer fees and value added tax. The Group's principal revenue streams are Commercial, Broadcasting and Matchday. The Group recognizes revenue when the amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to the entity; and when specific criteria have been met for each of the Group's activities as described below. a) Commercial Commercial revenue (whether settled in cash or value in kind) comprises revenue receivable from the exploitation of the Manchester United brand through sponsorship and other commercial agreements, including minimum guaranteed revenue, revenue receivable from retailing Manchester United branded merchandise in the UK and licensing the manufacture, distribution and sale of such goods globally, and fees for the Manchester United first team undertaking tours. For sponsorship contracts any additional revenue receivable over and above the minimum guaranteed revenue contained in the sponsorship and licensing agreements is taken to revenue when a reliable estimate of the future performance of the contract can be obtained and it is probable that the amounts will not be recouped by the sponsor in future years. Revenue is recognized over the term of the sponsorship agreement in line with the performance obligations included within the contract and based on the sponsorship rights enjoyed by the individual sponsor. In instances where the sponsorship rights remain the same over the duration of the contract, revenue is recognized on a straight-line basis. In respect of contracts with multiple elements, the Group allocates the total consideration receivable to each separately identifiable element based on their relative fair values, and then recognizes the allocated revenue on a straight-line basis over the relevant period of each element. The Group has a 10-year agreement with adidas which began on 1 August 2015. The minimum guarantee payable by adidas over the term of the agreement is £750 million, subject to certain adjustments. Payments due in a particular year may increase if the club's first team wins the Premier League, FA Cup or Champions League, or decrease if the club's first team fails to participate in the Champions League for two or more consecutive seasons with the maximum possible increase being £4 million per year and the maximum possible reduction being 30% of the applicable payment for the year in which the second or other consecutive season of non-participation falls. Revenue is currently being recognized based on management's estimate that the full minimum guarantee amount will be received, as management does not expect two consecutive seasons of non-participation in the Champions League. Retail revenue is recognized at the point of sale while license revenue is recognized in the period in which the goods and services are provided. Commercial revenue which is received in advance of a period end but relating to future periods is treated as deferred revenue. The deferred revenue is then released to revenue on an accruals basis in accordance with the substance of the relevant agreements. b) Broadcasting Broadcasting revenue represents revenue receivable from all UK and overseas broadcasting contracts, including contracts negotiated centrally by the Premier League and UEFA. Distributions from the Premier League comprise a fixed element (which is recognized evenly as domestic home league matches are played), facility fees for live coverage and highlights of domestic home and away matches (which are recognized when the respective match is played), and merit awards (based on finishing position in the league, which are recognized when they are known at the end of each football season). Distributions from UEFA relating to participation in UEFA competitions comprise market pool payments (which are recognized over the matches played in the competition, a portion of which reflects Manchester United's performance relative to the other Premier League clubs in the competition) and fixed amounts for participation in individual matches (which are recognized when the matches are played). Broadcasting revenue which is received in advance of a period end but relating to future periods is treated as deferred revenue. The deferred revenue is then released to revenue on an accruals basis in accordance with the substance of the relevant agreements. c) Matchday Matchday revenue is recognized based on matches played throughout the year with revenue from each match being recognized only when the match has been played. Revenue from related activities such as Conference and Events or the Museum is recognized as the event or service is provided or the facility is used. Matchday revenue includes revenue receivable from all domestic and European match day activities from Manchester United games at Old Trafford, together with the Group's share of gate receipts from domestic cup matches not played at Old Trafford, and fees for arranging other events at the Old Trafford stadium. As the Group acts as the principal in the sale of match tickets, the share of gate receipts payable to the other participating club and competition organizer for domestic cup matches played at Old Trafford is treated as an operating expense. Matchday revenue which is received in advance of a period end but relating to future periods (mainly the sale of seasonal facilities for first team matches at Old Trafford) is treated as deferred revenue. The deferred revenue is then released to revenue as the matches are played. d) Finance income Finance income is recognized using the effective interest rate method. e) Accrued revenue Revenue from matchday activities, broadcasting and commercial contracts, which is received after the period to which it relates, is accrued as earned. f) Deferred revenue Revenue from matchday activities, broadcasting and commercial contracts, received or receivable prior to the period end in respect of future periods, is deferred. 2.6 Operating leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease. Rentals receivable under sub-tenancy agreements (net of any incentives given to the lessee) are credited to the income statement on a straight-line basis over the lease term. The risk and rewards of ownership on the sub-let property remain with the third party lessor. 2.7 Exceptional items Exceptional items are disclosed separately in the financial statements where it is necessary to do so to provide further understanding of the financial performance of the Group. They are material items of income or expense that have been shown separately due to the significance of their nature or amount. 2.8 Pension costs The Group is one of a number of participating employers in The Football League Limited Pension and Life Assurance Scheme ('the scheme'—see note 30.1). The Group is unable to identify its share of the assets and liabilities of the scheme and therefore accounts for its contributions as if they were paid to a defined contribution scheme. The Group's contributions into this scheme are reflected within the income statement when they fall due. Full provision has been made for the additional contributions that the Group has been requested to pay to help fund the scheme deficit. The Group also operates a defined contribution scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The Group's contributions into this scheme are reflected within the income statement when they fall due. 2.9 Share-based payments The Group operates a share-based compensation plan under which the entity receives services from employees as consideration for equity instruments of the Group. Equity-settled share-based payments to employees are measured at the fair value of the equity instruments at the grant date. The fair value excludes the effect of non-market based vesting conditions. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of equity instruments that will eventually vest. At each balance sheet date, the Group revises its estimate of the number of equity instruments expected to vest as a result of the effect of non-market based vesting conditions. The impact of the revision of the original estimates, if any, is recognized in the income statement such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity reserves. For cash-settled share-based payments to employees, a liability is recognized for the services acquired, measured initially at the fair value of the liability. At each balance sheet date until the liability is settled, and at the date of settlement, the fair value of the liability is re-measured, with any changes in fair value recognized in profit or loss for the year. Details regarding the determination of the fair value of share-based transactions are set out in note 22. 2.10 Current and deferred tax The tax expense or credit for the period comprises current and deferred tax. Tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income, in which case the tax is also recognized in other comprehensive income. The current tax expense or credit is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Although the Company is organized as a Cayman Islands corporation, it reports as a US domestic corporation for US federal income tax purposes and is subject to US federal income tax on the Group's worldwide income. In addition, the Group is subject to income and other taxes in various other jurisdictions, including the UK. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to (or recovered from) the tax authorities. Deferred tax is recognized on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred liability is settled. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. 2.11 Dividend distribution Dividend distributions to the Company's shareholders are recognized when they become legally payable. In the case of interim dividends, this is when they are paid. 2.12 Property, plant and equipment Property, plant and equipment is initially measured at cost (comprising the purchase price, after deducting discounts and rebates, and any directly attributable costs) and is subsequently carried at cost less accumulated depreciation and any provision for impairment. Subsequent costs, for example, capital improvements and refurbishment, are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Where appropriate, the carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. Land is not depreciated. With the exception of freehold property acquired before 1 August 1999, depreciation is calculated using the straight-line method to write-down assets to their residual value over the estimated useful lives as follows: Freehold property 75 years Computer equipment and software (included within Plant and machinery) 3 years Plant and machinery 4 - 5 years Fixtures and fittings 7 years Freehold property acquired before 1 August 1999 is depreciated on a reducing balance basis at an annual rate of 1.33%. The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Any impairment charges arising are recognized in the income statement when the carrying amount of an asset is greater than the estimated recoverable amount, which is the higher of an asset's fair value less costs to sell and value in use, and are calculated with reference to future discounted cash flows that the asset is expected to generate when considered as part of a cash-generating unit. Prior impairments are reviewed for possible reversal at each balance sheet date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within operating expenses within the income statement. 2.13 Investment property Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Group, is classified as investment property. Investment property is initially measured at cost (comprising the purchase price, after deducting discounts and rebates, and any directly attributable costs) and is subsequently carried at cost less accumulated depreciation and any provision for impairment. Investment property is depreciated using the straight-line method over 50 years. Investment properties are reviewed for impairment when there is a triggering event such as a decline in the property market. An impairment charge is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. Prior impairments are reviewed for possible reversal at each balance sheet date. If an impairment charge subsequently reverses, the carrying amount of the asset 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 charge been recognized for the asset in prior years. 2.14 Intangible assets—goodwill a) Initial recognition Goodwill represents the excess of the cost of an acquisition over the fair value of the Group's share of the net identifiable assets of the acquired subsidiary at the date of acquisition. b) Impairment Management considers there to be one material cash generating unit for the purposes of the annual impairment review, being the operation of a professional football club. Goodwill is not subject to amortization and is tested annually for impairment or more frequently if events or changes in circumstances indicate a potential impairment. An impairment loss is recognized in the income statement when the carrying value of goodwill exceeds its recoverable amount. Its recoverable amount is the higher of fair value less costs of disposal and value in use. Prior impairments are not subsequently reviewed for possible reversal at each balance sheet date. 2.15 Intangible assets—registrations and football staff remuneration a) Remuneration Remuneration is charged to operating expenses on a straight-line basis over the contract periods based on the amount payable to players and key football management staff for that period. Any performance bonuses are recognized when the Company considers that it is probable that the condition related to the payment will be achieved. Signing-on fees are typically paid to players and key football management staff in equal annual installments over the term of the contract. Installments are paid at or near the beginning of each financial year and recognized as prepayments within trade and other receivables. They are subsequently charged to the income statement (as operating expenses) on a straight-line basis over the financial year. Signing-on fees paid form part of cash flows from operating activities. Loyalty fees are bonuses which are paid to players and key football management staff either at the beginning of a renewed contract or in installments over the term of their contract in recognition for either past or future performance. Loyalty bonuses for past service are typically paid in a lump sum amount upon renewal of a contract. These loyalty bonuses require no future service and are not subject to any claw-back provisions were the individual to subsequently leave the club during their new contract term. They are expensed once the Company has a present legal or constructive obligation to make the payment. Loyalty bonuses for ongoing service are typically paid in arrears in equal annual installments over the term of the contract. These are paid at the beginning of the next financial year and the related charge is recognized within operating expenses in the income statement on a straight-line basis over the current financial year. b) Initial recognition The costs associated with the acquisition of players' and key football management staff registrations are capitalized at the fair value of the consideration payable. Costs include transfer fees, PL levy fees, agents' fees incurred by the club and other directly attributable costs. Costs also include the fair value of any contingent consideration, which is primarily payable to the player's former club (with associated levy fees payable to the PL), once payment becomes probable. Subsequent reassessments of the amount of contingent consideration payable are also included in the cost of the player's registration. The estimate of the fair value of the contingent consideration payable requires management to assess the likelihood of specific performance conditions being met which would trigger the payment of the contingent consideration. This assessment is carried out on an individual player basis. The additional amount of contingent consideration potentially payable, in excess of the amounts included in the cost of registrations, is disclosed in note 29.2. Costs are fully amortized using the straight-line method over the period covered by the player's and key football management staff contract. c) Renegotiation Where a contract is extended, any costs associated with securing the extension are added to the unamortized balance (at the date of the amendment) and the revised book value is amortized over the remaining revised contract life. d) Disposals and loan income Assets available for sale (principally players' registrations) are classified as assets held for sale when their carrying value is expected to be recovered principally through a sale transaction and a sale is considered to be highly probable. Highly probable is defined as being actively marketed by the club, with unconditional offers having been received prior to a period end. These assets would be stated at the lower of the carrying amount and fair value less costs to sell. Gains and losses on disposal of players' and key football management staff registrations are determined by comparing the fair value of the consideration receivable, net of any transaction costs, with the carrying amount and are recognized separately in the income statement within profit on disposal of intangible assets. Where a part of the consideration receivable is contingent on specified performance conditions, this amount is recognized in the income statement when receipt is virtually certain. Loan income on players temporarily loaned to other football clubs is recognized separately in the income statement within profit/(loss) on disposal of intangible assets. e) Impairment Management does not consider that it is possible to determine the value in use of an individual player or key football management staff in isolation as that individual (unless via a sale or insurance recovery) cannot generate cash flows on their own. While management does not consider any individual can be separated from the single cash generating unit ("CGU"), being the operations of the Group as a whole, there may be certain circumstances where an individual is taken out of the CGU, when it becomes clear that they will not participate with the club's first team again, for example, a player sustaining a career threatening injury or is permanently removed from the first team playing squad for another reason. If such circumstances were to arise, the carrying value of the individual would be assessed against the Group's best estimate of the individual's fair value less any costs to sell and an impairment charge made in operating expenses reflecting any loss arising. 2.16 Intangible assets—other Other intangible assets comprise website, mobile applications and trademark registration costs and are initially measured at cost and are subsequently carried at cost less accumulated amortization and any provision for impairment. Amortization is calculated using the straight-line method to write-down assets to their residual value over the estimated useful lives as follows: Website and mobile applications 3 years Trademark registrations 10 years The assets' residual values and useful lives are reviewed and adjusted if appropriate at each balance sheet date. 2.17 Derivative financial instruments and hedging activities Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The resulting gain or loss is recognized in the income statement immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in th |
Critical accounting estimates a
Critical accounting estimates and judgments | 12 Months Ended |
Jun. 30, 2018 | |
Critical accounting estimates and judgments | |
Critical accounting estimates and judgments | 3 Critical accounting estimates and judgments Estimates, judgments and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 3.1 Critical accounting estimates and assumptions The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. a) Revenue recognition—minimum guarantee Minimum guaranteed revenue is recognized over the term of the sponsorship agreement in line with the performance obligations included within the contract and based on the sponsorship benefits enjoyed by the individual sponsor. In instances where the sponsorship rights remain the same over the duration of the contract, revenue is recognized on a straight-line basis. The minimum guarantee payable by adidas is subject to certain adjustments. Payments due in a particular year may increase if the club's first team wins certain competitions or decrease if the club's first team fails to participate in the Champions League for two or more consecutive seasons with the reduction being 30% of the applicable payment for the year in which the second or other consecutive season of non-participation falls. Management's current best estimate is that the full minimum guarantee amount will be received, as management does not expect two consecutive seasons of non-participation in the Champions League. b) Intangible assets—goodwill The Group annually tests whether goodwill has suffered any impairment or more frequently if events or changes in circumstances indicate a potential impairment, in accordance with its accounting policy. The recoverable amount of the cash-generating unit has been determined based on a value-in-use calculation. This calculation requires the use of estimates, both in arriving at the expected future cash flows and the application of a suitable discount rate in order to calculate the present value of these flows. These calculations have been carried out in accordance with the assumptions set out in note 15. c) Intangible assets—registrations The costs associated with the acquisition of players' and key football management staff registrations are capitalized at the fair value of the consideration payable, including an estimate of the fair value of any contingent consideration. Subsequent reassessments of the amount of contingent consideration payable are also included in the cost of the player's and key football management staff registration. The estimate of the fair value of the contingent consideration payable requires management to assess the likelihood of specific performance conditions being met which would trigger the payment of the contingent consideration. This assessment is carried out on an individual basis. The maximum additional amount that could be payable as of 30 June 2018 is disclosed in note 29.2. The Group will perform an impairment review on intangible assets, including player and key football management staff registrations, if adverse events indicate that the amortized carrying value of the asset may not be recoverable. While no individual can be separated from the single cash generating unit ("CGU"), being the operations of the Group as a whole, there may be certain circumstances where an individual is taken out of the CGU, when it becomes clear that they will not participate with the club's first team again, for example, a player sustaining a career threatening injury or is permanently removed from the first team squad for another reason. If such circumstances were to arise, the carrying value of the individual would be assessed against the Group's best estimate of the individual's fair value less any costs to sell. d) Tax Tax is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management establishes provisions where appropriate on the basis of amounts expected to be paid to (or recovered from) the tax authorities. From time to time the Group is involved in discussions with tax authorities in relation to ongoing tax matters and, where appropriate, provisions are made based on management's assessment of each case. Future tax expense or credit may be higher or lower than estimates made when determining whether it is appropriate to record a provision and the amount to be recorded. Furthermore, changes in the legislative framework or applicable tax case law may result in management reassessing the recognition of tax provisions in future periods. e) Recognition of deferred tax assets Deferred tax assets are recognized only to the extent that it is probable that the associated deductions will be available for use against future profits and that there will be sufficient future taxable profit available against which the temporary differences can be utilized, provided the asset can be reliably quantified. In estimating future taxable profit, management use "base case" approved forecasts which incorporate a number of assumptions, including a prudent level of future uncontracted revenue in the forecast period. In arriving at a judgment in relation to the recognition of deferred tax assets, management considers the regulations applicable to tax and advice on their interpretation. Future taxable income may be higher or lower than estimates made when determining whether it is appropriate to record a tax asset and the amount to be recorded. Furthermore, changes in the legislative framework or applicable tax case law may result in management reassessing the recognition of deferred tax assets in future periods. 3.2 Critical judgments in applying the entity's accounting policies The Group does not believe that there are currently any significant accounting judgments. |
Segment information
Segment information | 12 Months Ended |
Jun. 30, 2018 | |
Segment information | |
Segment information | 4 Segment information The principal activity of the Group is the operation of a professional football club. All of the activities of the Group support the operation of the football club and the success of the first team is critical to the ongoing development of the Group. Consequently the Chief Operating Decision Maker regards the Group as operating in one material segment, being the operation of a professional football club. All revenue derives from the Group's principal activity in the United Kingdom. Revenue can be analysed into its three main components as follows: 2018 2017 2016 Commercial Broadcasting Matchday Revenue derived from entities accounting for more than 10% of revenue in either 2018, 2017 or 2016 were as follows: 2018 2017 2016 Premier League adidas General Motors (Chevrolet) <10% All non-current assets, other than US deferred tax assets, are held within the United Kingdom. |
Operating expenses
Operating expenses | 12 Months Ended |
Jun. 30, 2018 | |
Operating expenses | |
Operating expenses | 5 Operating expenses 2018 2017 2016 Employee benefit expense (note 7) ) ) ) Operating lease costs ) ) ) Auditors' remuneration: audit of parent company and consolidated financial statements ) ) ) Auditors' remuneration: audit of the Company's subsidiaries ) ) ) Auditors' remuneration: tax compliance services ) ) ) Auditors' remuneration: other services ) ) ) Foreign exchange (losses)/gains ) ) Gain/(loss) on disposal of property, plant and equipment ) ) Depreciation—property, plant and equipment (note 13) ) ) ) Depreciation—investment property (note 14) ) ) ) Amortization (note 15) ) ) ) Sponsorship, other commercial and broadcasting costs ) ) ) External matchday costs ) ) ) Property costs ) ) ) Other operating expenses (individually less than £10,000,000) ) ) ) Exceptional items (note 6) ) ) ) ) ) |
Exceptional items
Exceptional items | 12 Months Ended |
Jun. 30, 2018 | |
Exceptional items | |
Exceptional items | 6 Exceptional items 2018 2017 2016 Football League pension scheme deficit (note 30) — — Impairment reversal/(charge)—registrations (note 15) — Compensation paid for loss of office — — The Football League pension scheme deficit reflects the present value of the additional contributions the Group is expected to pay to remedy the revised deficit of the scheme pursuant to the latest triennial actuarial valuation at 31 August 2017. A registrations impairment charge amounting to £6,693,000 was originally made in the year ended 30 June 2016 in respect of a player who was no longer considered to be a member of the first team playing squad. This impairment was reversed during the year ended 30 June 2017 as the player was re-established as a member of the first team playing squad. The reversal was calculated to increase the carrying value of the player's registration to the value that would have been recognized had the original impairment not occurred (that is after taking account of normal amortization that would have been charged had no impairment occurred). Compensation paid for loss of office relates to amounts payable to former team managers and certain members of the coaching staff. |
Employees
Employees | 12 Months Ended |
Jun. 30, 2018 | |
Employees | |
Employees | 7 Employees 7.1 Employee benefit expense and average number of people employed 2018 2017 2016 Wages and salaries (including bonuses) Social security costs Share-based payments (note 22) Pension costs—defined contribution schemes (note 30.2) Details of the pension arrangements offered by the Company and the Group are disclosed in note 30. The average number of employees during the year, including directors, was as follows: 2018 2017 2016 By activity: Football—players Football—technical and coaching Commercial Media Administration and other Average number of employees The Group also employs approximately 3,858 temporary staff on match days (2017: 2,053; 2016: 2,124), the costs of which are included in the employee benefit expense above. 7.2 Key management compensation Key management includes directors (executive and non-executive) of the Company and executive directors and officers of the Group's main operating company, Manchester United Football Club Limited. The compensation paid or payable to key management for employee services, which is included in the employee benefit expense table above, is shown below: 2018 2017 2016 Short-term employee benefits Share-based payments Post-employment benefits |
Profit_(loss) on disposal of in
Profit/(loss) on disposal of intangible assets | 12 Months Ended |
Jun. 30, 2018 | |
Profit/(loss) on disposal of intangible assets | |
Profit/(loss) on disposal of intangible assets | 8 Profit/(loss) on disposal of intangible assets 2018 2017 2016 Profit/(loss) on disposal of registrations Player loan income — |
Net finance costs
Net finance costs | 12 Months Ended |
Jun. 30, 2018 | |
Net finance costs | |
Net finance costs | 9 Net finance costs 2018 2017 2016 Interest payable on bank loans and overdrafts ) ) ) Interest payable on secured term loan facility and senior secured notes ) ) ) Amortization of issue costs on secured term loan facility and senior secured notes ) ) ) Foreign exchange gains/(losses) on retranslation of unhedged US dollar borrowings — ) Unwinding of discount relating to registrations ) ) ) Fair value movements on derivative financial instruments: Embedded foreign exchange derivatives ) ) Total finance costs ) ) ) Foreign exchange gains on retranslation of unhedged US dollar borrowings — — Interest receivable on short-term bank deposits Total finance income Net finance costs ) ) ) |
Tax expense
Tax expense | 12 Months Ended |
Jun. 30, 2018 | |
Tax expense | |
Tax expense | 10 Tax expense 2018 2017 2016 Current tax: Current tax on (loss)/profit for the year ) ) ) Adjustment in respect of previous years ) ) Foreign tax ) ) ) Total current tax credit/(expense) ) ) Deferred tax: US deferred tax: Origination and reversal of temporary differences ) ) ) Adjustment in respect of previous years ) Impact of change in US federal corporate income tax rate on opening balance(1) ) — — Total US deferred tax (expense)/credit (note 25) ) ) UK deferred tax: Origination and reversal of temporary differences ) ) Adjustment in respect of previous years ) Impact of change in UK corporation tax rate — Total UK deferred tax (expense)/credit (note 25) ) ) Total deferred tax (expense)/credit ) ) Total tax expense ) ) ) A reconciliation of the total tax expense is as follows: 2018 2017 2016 Profit before tax Profit before tax multiplied by weighted average US federal corporate income tax rate of 28.0% (2017: 35.0%; 2016: 35.0%) ) ) ) Tax effects of: Adjustment in respect of previous years ) Difference in tax rates on non-US operations ) Foreign exchange gains on US dollar denominated tax basis Expenses not deductible for tax purposes ) ) ) Impact of change in US federal corporate income tax rate on opening balance(1) ) — — Re-measurement of unrealized foreign exchange US deferred tax asset(2) ) — — Re-measurement of foreign tax credit US deferred tax asset(3) — — One time mandatory US tax charge ) — — Total tax expense ) ) ) (1) The current year deferred tax expense includes a non-cash, tax accounting write-off of £48.8 million following the substantive enactment of US tax reform on 22 December 2017. The non-cash write-off was primarily due to the reduction in the US federal corporate income tax rate from 35% to 21% which necessitated re-measurement of the existing US deferred tax position in the period to 31 December 2017. (2) It is no longer deemed probable that the cumulative unrealized foreign exchange loss arising on USD denominated debt will be deductible for US tax purposes when realized. The associated deferred tax asset was therefore derecognized resulting in a non-cash tax charge of £8.8 million in the year. (3) The deferred tax asset associated with foreign tax credits is continuously re-measured. This has resulted in a write back of £1.6 million in the year. In addition to the amount recognized in the income statement, the following amounts relating to tax have been recognized directly in other comprehensive income: 2018 2017 2016 Current tax — US deferred tax (note 25) ) ) UK deferred tax (note 25) ) ) Total tax (expense)/credit recognized in other comprehensive income ) ) |
(Loss)_earnings per share
(Loss)/earnings per share | 12 Months Ended |
Jun. 30, 2018 | |
(Loss)/earnings per share | |
(Loss)/earnings per share | 11 (Loss)/earnings per share (a) Basic Basic (loss)/earnings per share is calculated by dividing the (loss)/profit for the year by the weighted average number of ordinary shares in issue during the year. 2018 2017 2016 Class A ordinary shares (thousands) Class B ordinary shares (thousands) (Loss)/profit attributable to owners of the parent (£'000) ) Basic (loss)/earnings per share (pence) ) (b) Diluted Diluted (loss)/earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue during the year to assume conversion of all dilutive potential ordinary shares. The Company has one category of dilutive potential ordinary shares: share awards pursuant to the 2012 Equity Incentive Plan (the "Equity Plan"). Share awards pursuant to the Equity Plan are assumed to have been converted into ordinary shares at the beginning of the financial year. 2018 2017 2016 Class A ordinary shares (thousands) Adjustment for assumed conversion into Class A ordinary shares (thousands) Class B ordinary shares (thousands) (Loss)/profit attributable to owners of the parent (£'000) ) Diluted (loss)/earnings per share (pence)(1) ) (1) For the year ended 30 June 2018, potential ordinary shares are anti-dilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded. For the years ended 30 June 2017 and 2016, potential ordinary shares have been treated as dilutive, as their inclusion in the diluted earnings per share calculation decreases earnings per share. |
Dividends
Dividends | 12 Months Ended |
Jun. 30, 2018 | |
Dividends | |
Dividends | 12 Dividends Dividends paid in the year were $29,555,000 (2017: $29,525,000; 2016: $29,501,000) equivalent to $0.18 (2017: $0.18; 2016: $0.18) per share. The pounds sterling equivalents were £21,982,000 (2017: £23,295,000; 2016: £20,084,000) equivalent to £0.13 (2017: £0.14; 2016: £0.12) per share. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of property, plant and equipment | |
Property, plant and equipment | 13 Property, plant and equipment Freehold Plant and Fixtures Total At 1 July 2016 Cost Accumulated depreciation ) ) ) ) Net book amount Year ended 30 June 2017 Opening net book amount Additions Disposals — ) ) ) Depreciation charge ) ) ) ) Closing net book amount At 30 June 2017 Cost Accumulated depreciation ) ) ) ) Net book amount Year ended 30 June 2018 Opening net book amount Additions — Disposals ) — ) ) Depreciation charge ) ) ) ) Closing net book amount At 30 June 2018 Cost Accumulated depreciation ) ) ) ) Net book amount Freehold property primarily comprises the Old Trafford stadium and the Aon Training Complex. Property, plant and equipment with a net book amount of £205,388,000 (2017: £199,990,000) has been pledged to secure the secured term loan facility and senior secured notes borrowings of the Group (see note 24). Capital commitments at the balance sheet date are disclosed in note 29.1. |
Investment property
Investment property | 12 Months Ended |
Jun. 30, 2018 | |
Investment properties | |
Investment property | 14 Investment property £'000 At 1 July 2016 Cost Accumulated depreciation and impairment ) Net book amount Year ended 30 June 2017 Opening net book amount Additions Depreciation charge ) Closing net book amount At 30 June 2017 Cost Accumulated depreciation and impairment ) Net book amount Year ended 30 June 2018 Opening net book amount Depreciation charge ) Closing net book amount At 30 June 2018 Cost Accumulated depreciation and impairment ) Net book amount Investment property was externally valued as of 30 June 2018 in accordance with the Royal Institution of Chartered Surveyors ("RICS") Valuation—Professional Standards, January 2014. The valuation supported the carrying amount as of 30 June 2018 and consequently there were no changes to the net book value. The external valuation was carried out on the basis of Market Value, as defined in the RICS Valuation—Professional Standards, January 2014. Fair value of investment property is determined using inputs that are not based on observable market data, consequently the asset is categorized as Level 3 (see note 31.4). The fair value of investment property as of 30 June 2018 was £16,450,000 (2017: £14,868,000). The property rental revenue earned by the Group from its investment property amounted to £1,371,000 (2017: £1,260,000; 2016: £1,336,000). Direct operating expenses arising on investment property, all of which generated rental income, in the year amounted to £182,000 (2017: £679,000; 2016: £652,000). The future aggregate minimum rentals receivable under non-cancellable operating leases are disclosed in note 28.2. Investment property with a net book amount of £6,630,000 (2017: £6,660,000) has been pledged to secure the secured bank loan borrowings of the Group (see note 24). As of 30 June 2018, the Group had no contractual obligations to purchase, construct or develop investment property (2017: £nil). As of 30 June 2018, the Group had no material contractual obligations for repairs, maintenance or enhancements to investment property (2017: not material). |
Intangible assets
Intangible assets | 12 Months Ended |
Jun. 30, 2018 | |
Intangible assets. | |
Intangible assets | 15 Intangible assets Goodwill Registrations Other Total At 1 July 2016 Cost Accumulated amortization — ) ) ) Net book amount Year ended 30 June 2017 Opening net book amount Additions — Disposals — ) — ) Amortization charge — ) ) ) Reversal of impairment (note 6) — — Closing book amount At 30 June 2017 Cost Accumulated amortization — ) ) ) Net book amount Year ended 30 June 2018 Opening net book amount Additions — Disposals — ) — ) Amortization charge — ) ) ) Closing book amount At 30 June 2018 Cost Accumulated amortization — ) ) ) Net book amount Impairment tests for goodwill Goodwill arose largely in relation to the Group's acquisition of Manchester United Limited in 2005. Goodwill is not subject to amortization and is tested annually for impairment (normally at the end of the third fiscal quarter) or more frequently if events or changes in circumstances indicate a potential impairment. An impairment test has been performed on the carrying value of goodwill based on value-in-use calculations. The value-in-use calculations have used pre-tax cash flow projections based on the financial budgets approved by management covering a five-year period. The budgets are based on past experience in respect of revenues, variable and fixed costs, registrations and other capital expenditure and working capital assumptions. For each accounting period, cash flows beyond the five-year period are extrapolated using a terminal growth rate of 2.5% (2017: 2.5%), which does not exceed the long term average growth rate for the UK economy in which the cash generating unit operates. The other key assumptions used in the value in use calculations for each period are the pre-tax discount rate, which has been determined at 7.8% (2017: 8.6%) for each period, and certain assumptions around progression in domestic and UEFA competitions, and registrations capital expenditure. Management determined budgeted revenue growth based on historical performance and its expectations of market development. The discount rates are pre-tax and reflect the specific risks relating to the business. The following sensitivity analysis was performed: • increase the discount rate by 1%; • more prudent assumptions around qualification for UEFA competitions. In each of these scenarios the estimated recoverable amount substantially exceeds the carrying value for the cash generating unit and accordingly no impairment was identified. Having assessed the future anticipated cash flows, management believes that any reasonably possible changes in key assumptions would not result in an impairment of goodwill. Registrations The unamortized balance of existing registrations as of 30 June 2018 was £369.5 million, of which £138.5 million is expected to be amortized in the year ended 30 June 2019. The remaining balance is expected to be amortized over the four years to 30 June 2023. This does not take into account player additions after 30 June 2018, which would have the effect of increasing the amortization expense in future periods, nor does it consider disposals subsequent to 30 June 2018, which would have the effect of decreasing future amortization charges. Furthermore, any contract renegotiations would also impact future charges. Other intangible assets Other intangible assets comprise website, mobile applications and trademark registration costs. Other intangible assets include internally generated assets whose cost and accumulated amortization as of 30 June 2018 was £1,412,000 and £39,000 respectively (2017: £1,026,000 and £nil respectively). Capital commitments at the balance sheet date are disclosed in note 29.1. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2018 | |
Inventories | |
Inventories | 16 Inventories 2018 2017 Finished goods The cost of inventories recognized as an expense and included in operating expenses for the year amounted to £8,450,000 (2017: £8,598,000; 2016: £7,228,000). Reversal/write-down of inventories to net realizable value amounted to a reversal of £4,000 (2017: reversal of £173,000; 2016: write-down of £177,000;). These were recognized as a credit (reversal) or expense (write-down) during the year and included in operating expenses. |
Financial instruments by catego
Financial instruments by category | 12 Months Ended |
Jun. 30, 2018 | |
Financial instruments by category | |
Financial instruments by category | 17 Financial instruments by category Note 2018 2017 Assets as per balance sheet Derivatives used for hedging: Derivative financial instruments — At fair value through profit and loss: Derivative financial instruments Loans and receivables: Trade and other receivables excluding prepayments(1) Cash and cash equivalents Liabilities as per balance sheet Derivatives used for hedging: Derivative financial instruments — At fair value through profit and loss: Derivative financial instruments — Other financial liabilities at amortized cost: Trade and other payables excluding social security and other taxes(2) Borrowings (1) Prepayments are excluded from the trade and other receivables balance, as this analysis is required only for financial instruments. (2) Social security and other taxes are excluded from the trade and other payables balance, as this analysis is required only for financial instruments. The Group's exposure to various risks associated with the financial instruments is discussed in note 31. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial assets mentioned above. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Jun. 30, 2018 | |
Derivative financial instrument | |
Derivative financial instruments | 18 Derivative financial instruments 2018 2017 Assets Liabilities Assets Liabilities Derivatives used for hedging: Interest rate swaps — — ) Derivatives at fair value through profit or loss: Embedded foreign exchange derivatives — — Forward foreign exchange contracts — ) — ) Less non-current portion: Derivatives used for hedging: Interest rate swaps — — ) Derivatives at fair value through profit or loss: Embedded foreign exchange derivatives — — Forward foreign exchange contracts — — — Non-current derivative financial instruments — ) Current derivative financial instruments — ) The ineffective portion recognized in profit or loss that arises from cash flow hedges amounts to £nil (2017: £nil). Further details of derivative financial instruments are provided in note 31. |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Jun. 30, 2018 | |
Trade and other receivables | |
Trade and other receivables | 19 Trade and other receivables 2018 2017 Trade receivables Less: provision for impairment of trade receivables ) ) Net trade receivables Other receivables Accrued revenue Prepayments Less: non-current portion: Trade receivables Non-current trade and other receivables Current trade and other receivables Net trade receivables include transfer fees receivable from other football clubs of £29,214,000 (2017: £46,343,000) of which £4,724,000 (2017: £15,399,000) is receivable after more than one year. Net trade receivables also include £77,357,000 (2017: £26,241,000) of deferred revenue that is contractually payable to the Group, but recorded in advance of the earnings process, with corresponding amounts recorded as deferred revenue liabilities. Information about the impairment of trade and other receivables, their credit quality and the Group's exposure to foreign currency risk, interest rate risk and credit risk can be found in note 31. The fair value of net trade receivables as at 30 June 2018 was £124,050,000 (2017: £77,351,000) before discounting of cash flows. The fair value of other receivables is not materially different to their carrying amount. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Jun. 30, 2018 | |
Cash and cash equivalents | |
Cash and cash equivalents | 20 Cash and cash equivalents 2018 2017 Cash at bank and in hand Cash and cash equivalents for the purposes of the consolidated statement of cash flows are as above. |
Share capital
Share capital | 12 Months Ended |
Jun. 30, 2018 | |
Share capital. | |
Share capital | 21 Share capital Number of Ordinary At 1 July 2016 Employee share-based compensation awards—issue of shares At 30 June 2017 Employee share-based compensation awards—issue of shares — At 30 June 2018 The Company has two classes of ordinary shares outstanding: Class A ordinary shares and Class B ordinary shares, each with a par value of $0.0005 per share. The rights of the holders of Class A ordinary shares and Class B ordinary shares are identical, except with respect to voting and conversion. Each Class A ordinary share is entitled to one vote per share and is not convertible into any other shares. Each Class B ordinary share is entitled to 10 votes per share and is convertible into one Class A ordinary share at any time. In addition, Class B ordinary shares will automatically convert into Class A ordinary shares upon certain transfers and other events, including upon the date when holders of all Class B ordinary shares cease to hold Class B ordinary shares representing, in the aggregate, at least 10% of the total number of Class A and Class B ordinary shares outstanding. For special resolutions (which are required for certain important matters including mergers and changes to the Company's governing documents), which require the vote of two-thirds of the votes cast, at any time that Class B ordinary shares remain outstanding, the voting power permitted to be exercised by the holders of the Class B ordinary shares will be weighted such that the Class B ordinary shares shall represent, in the aggregate, 67% of the voting power of all shareholders. All shares issued by the Company are fully paid. As of 30 June 2018, the Company's issued share capital comprised 40,526,390 Class A ordinary shares and 124,000,000 Class B ordinary shares. |
Share-based payments
Share-based payments | 12 Months Ended |
Jun. 30, 2018 | |
Share-based payments | |
Share-based payments | 22 Share-based payments The Company operates a share-based award plan, the 2012 Equity Incentive Award Plan (the "Equity Plan"), established in 2012. Under the Equity Plan, 16,000,000 shares of our Class A ordinary shares have initially been reserved for issuance pursuant to a variety of share-based awards, including share options, share appreciation rights, or SARs, restricted share awards, restricted share unit awards, deferred share awards, deferred share unit awards, dividend equivalent awards, share payment awards and other share-based awards. Of these reserved shares, 15,115,703 remain available for issuance. Certain directors, members of executive management and selected employees have been awarded Class A ordinary shares, pursuant to the Equity Plan. These shares are subject to varying vesting schedules over multi-year periods. Employees are not entitled to dividends until the awards vest. The fair value of these shares was the quoted market price on the date of award, adjusted where applicable for expected dividends i.e. the fair value of the awards was reduced. It is assumed that semi-annual dividends will be paid for the foreseeable future. The Company may choose whether to settle the awards wholly in shares or reduce the number of shares awarded by a value equal to the recipient's liability to any income tax and social security contributions that would arise if all the shares due to vest had vested. Accordingly the awards may be either equity-settled or cash-settled. Movements in the number of share awards outstanding and therefore potentially issuable as new shares are as follows: Number of Class A At 1 July 2017 Awarded Forfeited ) Vested ) At 30 June 2018 The fair value of the shares awarded during the year was $20.42 (£15.48) per share. For the year ended 30 June 2018 the Group recognized total expenses related to equity-settled share-based payment transactions of £2,915,000 (2017: £2,187,000; 2016: £1,795,000) and total expenses related to cash-settled share-based payment transactions of £3,301,000 (2017: £1,903,000; 2016: £1,539,000). |
Trade and other payables
Trade and other payables | 12 Months Ended |
Jun. 30, 2018 | |
Trade and other payables | |
Trade and other payables | 23 Trade and other payables 2018 2017 Trade payables Other payables Accrued expenses Social security and other taxes Less: non-current portion: Trade payables Other payables Non-current trade and other payables Current trade and other payables Trade payables include transfer fees and other associated costs in relation to the acquisition of registrations of £258,316,000 (2017: £179,133,000) of which £102,067,000 (2017: £82,866,000) is due after more than one year. Of the amount due after more than one year, £65,495,000 (2017: £76,821,000) is expected to be paid between 1 and 2 years, and the balance of £36,572,000 (2017: £6,045,000) is expected to be paid between 2 and 5 years. Accrued expenses include £4,795,000 (2017: £3,274,000) related to share-based payment transactions expected to be cash-settled. The fair value of trade payables as at 30 June 2018 was £270,548,000 (2017: £194,052,000) before discounting of cash flows. The fair value of other payables is not materially different to their carrying amount. |
Borrowings
Borrowings | 12 Months Ended |
Jun. 30, 2018 | |
Borrowings | |
Borrowings | 24 Borrowings 2018 2017 Senior secured notes Secured term loan facility Secured bank loan Accrued interest on senior secured notes Less: non-current portion: Senior secured notes Secured term loan facility Secured bank loan — Non-current borrowings Current borrowings The senior secured notes of £318,347,000 (2017: £323,113,000) is stated net of unamortized issue costs amounting to £3,770,000 (2017: £4,112,000). The outstanding principal amount of the senior secured notes is $425,000,000 (2017: $425,000,000). The senior secured notes have a fixed coupon rate of 3.79% per annum and interest is paid semi-annually. The senior secured notes mature on 25 June 2027. The Group has the option to redeem the senior secured notes in part, in an amount not less than 5% of the aggregate principal amount of the senior secured notes then outstanding, or in full, at any time at 100% of the principal amount plus a "make-whole" premium of an amount equal to the discounted value (based on the US Treasury rate) of the remaining interest payments due on the senior secured notes up to 25 June 2027. The senior secured notes were originally issued by MU Finance plc (now known as MU Finance Limited), and were novated to Manchester United Football Club Limited on 14 June 2018. The senior secured notes are guaranteed by Red Football Limited, Red Football Junior Limited, Manchester United Limited and MU Finance Limited (formerly known as MU Finance plc) and are secured against substantially all of the assets of those entities and Manchester United Football Club Limited. These entities are all wholly owned subsidiaries of Manchester United plc. The secured term loan facility of £168,347,000 (2017: £170,767,000) is stated net of unamortized issue costs amounting to £2,185,000 (2017: £2,470,000). The outstanding principal amount of the secured term loan facility is $225,000,000 (2017: $225,000,000). The secured term loan facility attracts interest of US dollar LIBOR plus an applicable margin of between 1.25% and 1.75% per annum and interest is paid monthly. The remaining balance of the secured term loan facility is repayable on 26 June 2025, although the Group has the option to repay the secured term loan facility at any time. The secured term loan facility was originally provided to MU Finance plc (now known as MU Finance Limited), and was novated to Manchester United Football Club Limited on 14 June 2018. The secured term loan facility is guaranteed by Red Football Limited, Red Football Junior Limited, Manchester United Limited, MU Finance Limited (formerly known as MU Finance plc) and Manchester United Football Club Limited and is secured against substantially all of the assets of each of those entities. These entities are all wholly owned subsidiaries of Manchester United plc. The secured bank loan of £3,750,000 (2017: £4,169,000) comprises a bank loan within Alderley Urban Investments Limited, a subsidiary of Manchester United Limited, that attracts interest of LIBOR + 1% per annum. £106,000 (2017: £525,000) is repayable in quarterly installments through to July 2018, with the remaining balance of £3,644,000 (2017: £3,644,000) being re-payable at par on 9 July 2018. The loan is secured by way of a first legal charge over a Group investment property, known as the Manchester International Freight Terminal, and the loan is also guaranteed by Manchester United Limited. The Group also has an undrawn committed revolving borrowing facility of up to £125,000,000 plus (subject to certain conditions) the ability to incur a further £25,000,000 by way of incremental facilities. The facility terminates on 26 June 2021 (although it may be possible for any incremental facilities to terminate after such date). Drawdowns would attract interest of LIBOR or EURIBOR plus an applicable margin of between 1.25% and 1.75% per annum (depending on the total net leverage ratio at that time). No drawdowns were made from these facilities during 2018 or 2017. The Group's revolving facility, the secured term loan facility and the note purchase agreement governing the senior secured notes each contain certain covenants, including a financial maintenance covenant that requires the Group to maintain a consolidated profit/loss for the period before depreciation, amortization of, and profit on disposal of, registrations, exceptional items, net finance costs and tax ("EBITDA") of not less than £65 million for each 12 month testing period, as well as customary covenants, including (but not limited to) restrictions on incurring additional indebtedness; paying dividends or making other distributions, repurchasing or redeeming our capital stock or making other restricted payments; selling assets, including capital stock of restricted subsidiaries; entering into agreements that restrict distributions of restricted subsidiaries; consolidating, merging, selling or otherwise disposing of all or substantially all assets; entering into sale and leaseback transactions; entering into transactions with affiliates; and incurring liens. As of 30 June 2018, the Group was in compliance with all covenants under its revolving facility, the secured term loan facility and the note purchase agreement governing the senior secured notes. Analysis of changes in net debt Net debt is defined as non-current and current borrowings minus cash and cash equivalents. Net debt is a financial performance indicator that is used by the Group's management to monitor liquidity risk. The Group believes that net debt is meaningful for investors as it provides a clear overview of the net indebtedness position of the Group and is used by the Chief Operating Decision Maker in managing the business. The following tables provide a reconciliation of the movement in the Group's net debt. At 1 July Cash flows Non-cash At 30 June Non-current borrowings — ) Current borrowings ) Less: cash and cash equivalents ) ) ) Non-cash movements largely comprise a foreign exchange gain arising on translation of the US dollar denominated secured term loan facility and senior secured notes, amortization of debt issue costs and the movement on accrued interest on senior secured notes, partially offset by a foreign exchange gain arising on translation of foreign currency denominated cash and cash equivalents. At 1 July Cash flows Non-cash At 30 June Non-current borrowings — Current borrowings ) Less: cash and cash equivalents ) ) ) ) ) Non-cash movements largely comprise a foreign exchange loss arising on translation of the US dollar denominated secured term loan facility and senior secured notes, amortization of debt issue costs and the movement on accrued interest on senior secured notes, partially offset by a foreign exchange gain arising on translation of foreign currency denominated cash and cash equivalents. |
Deferred tax
Deferred tax | 12 Months Ended |
Jun. 30, 2018 | |
Deferred tax | |
Deferred tax | 25 Deferred tax Deferred tax assets and deferred tax liabilities are offset where the Group has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after allowable offset): 2018 2017 US deferred tax assets ) ) UK deferred tax liabilities At 30 June ) ) The movement in deferred tax assets and deferred tax liabilities during the year is as follows: 2018 2017 At 1 July ) ) Expensed/(credited) to income statement (note 10) ) Expensed to other comprehensive income Reclassification to tax receivable — At 30 June ) ) The current year reclassification to tax receivable relates to alternative minimum tax payable which prior to the US tax reform was expected to be offset against future US tax liabilities. Following US tax reform (substantively enacted on 22 December 2017) this is now expected to be repaid to the Group. The movement in US net deferred tax assets are as follows: Foreign Net Unrealized Intangible Deferred Other(1) Total At 1 July 2016 ) ) ) ) ) ) ) (Credited)/expensed to income statement (note 10) ) ) ) ) Expensed to other comprehensive income (note 10) — — — — At 30 June 2017 ) ) ) ) ) ) ) Expensed/(credited) to income statement (note 10) ) (Credited)/expensed to other comprehensive income (note 10) ) ) — — — Reclassification to tax receivable — — — — — At 30 June 2018 ) ) ) ) ) ) (1) The "Other" deferred tax asset balance of £2,009,000 primarily comprises bad debt provision not allowed until written off of £2,017,000, provisions not allowed until paid of £3,747,000, and upwards revaluation of tax bases of real estate at the time of the IPO in 2012 of £2,830,000, partially offset by temporary differences arising on depreciation of £6,704,000. Deferred tax assets are recognized only to the extent that it is probable that there will be sufficient future taxable profits available against which temporary differences can be utilized. There is an unrecognized deferred tax asset of £19,610,000 as at 30 June 2018 (2017: £nil) in respect of foreign tax credits in the US. The movement in UK net deferred tax liabilities are as follows: Accelerated Rolled Non Property Net Other(1) Total At 1 July 2016 ) ) Expensed/(credited) to income statement (note 10) ) ) ) ) Expensed to other comprehensive income (note 10) — — — — — At 30 June 2017 ) ) (Credited)/expensed to income statement (note 10) ) ) ) ) Expensed to other comprehensive income (note 10) — — — — — At 30 June 2018 ) ) (1) The "Other" deferred tax asset balance of £4,568,000 primarily comprises losses carried forward arising from UK tax legislation introduced during the year ended 30 June 2017. Deferred tax assets are recognized on losses carried forward only to the extent that it is probable that they will be available for use against future profits and that there will be sufficient future taxable profit available against which the temporary differences can be utilised. At 30 June 2018 the Group had no unrecognized UK deferred tax assets (2017: £nil). |
Cash generated from operations
Cash generated from operations | 12 Months Ended |
Jun. 30, 2018 | |
Cash generated from operations | |
Cash generated from operations | 26 Cash generated from operations Notes 2018 2017 2016 Profit before tax Adjustments for: Depreciation 13, 14 Impairment (reversal)/charge 6 — ) Amortization 15 (Profit)/loss on disposal of intangible assets ) ) Net finance costs (Profit)/loss on disposal of property, plant and equipment ) Equity-settled share-based payments 22 Foreign exchange losses/(gains) on operating activities ) Reclassified from hedging reserve Changes in working capital: Inventories ) ) Trade and other receivables(1) ) ) Trade and other payables and deferred revenue(1) ) Cash generated from operations (1) These amounts exclude non-cash movements and movements in respect of items reported elsewhere in the consolidated statement of cash flows, primarily in investing activities (where the timing of acquisitions and disposals and related cash flows can differ), resulting in: • an increase in changes to trade and other receivables of £18,374,000 (2017: reduction of £3,224,000; 2016: reduction of £20,676,000); and • an increase in changes to trade and other payables and deferred revenue of £74,088,000 (2017: reduction of £26,428,000; 2016: reduction of £26,838,000). |
Contingencies
Contingencies | 12 Months Ended |
Jun. 30, 2018 | |
Contingencies | |
Contingencies | 27 Contingencies At 30 June 2018, the Group had no material contingent liabilities in respect of legal claims arising in the ordinary course of business. Contingent fees are disclosed in note 29.2. |
Operating lease arrangements
Operating lease arrangements | 12 Months Ended |
Jun. 30, 2018 | |
Operating lease arrangements | |
Operating lease arrangements | 28 Operating lease arrangements 28.1 The group as lessee The Group leases various premises and plant and equipment under non-cancellable operating lease agreements. The majority of the lease agreements are renewable at the end of the lease period at market rate. The lease expenditure charged to the income statement during the year is disclosed in note 5. The future aggregate minimum lease payments under non-cancellable operating leases are as follows: 2018 2017 No later than 1 year Later than 1 year and no later than 5 years Later than 5 years 28.2 The group as lessor The Group leases out its investment properties. The future aggregate minimum rentals receivable under non-cancellable operating leases are as follows: 2018 2017 No later than 1 year Later than 1 year and no later than 5 years Later than 5 years |
Capital commitments and conting
Capital commitments and contingent fees | 12 Months Ended |
Jun. 30, 2018 | |
Capital commitments and contingent fees | |
Capital commitments and contingent fees | 29 Capital commitments and contingent fees 29.1 Capital commitments As of 30 June 2018, the Group had capital commitments relating to property, plant and equipment amounting to £4.1 million (2017: £6.8 million) and to other intangible assets amounting to £nil (2017: £nil). 29.2 Contingent fees Under the terms of certain contracts with other football clubs and agents in respect of player transfers, additional amounts, in excess of the amounts included in the cost of registrations, would be payable by the Group if certain substantive performance conditions are met. These excess amounts are only recognized within the cost of registrations when the Company considers that it is probable that the condition related to the payment will be achieved. The maximum additional amounts that could be payable is £66,411,000 (2017: £44,633,000). No material adjustment was required to the amounts included in the cost of registrations during the year (2017: no material adjustments) and consequently there was no material impact on the amortization of registration charges in the income statement (2017: no material impact). As of 30 June 2018 the potential amount payable by type of condition and category of player was: First team Other Total Type of condition: MUFC appearances/team success/new contract International appearances As of 30 June 2017 the potential amount payable by type of condition and category of player was: First team Other Total Type of condition: MUFC appearances/team success/new contract International appearances Similarly, under the terms of contracts with other football clubs for player transfers, additional amounts would be payable to the Group if certain specific performance conditions are met. In accordance with the recognition criteria for contingent assets, such amounts are only disclosed by the Group when probable and recognized when virtually certain. As of 30 June 2018, the amount of such receipt considered to be probable was £2.4 million (2017: £0.8 million). |
Pension arrangements
Pension arrangements | 12 Months Ended |
Jun. 30, 2018 | |
Pension arrangements | |
Pension arrangements | 30 Pension arrangements 30.1 Defined benefit scheme The Group participates in the Football League Pension and Life Assurance Scheme ('the Scheme'). The Scheme is a funded multi-employer defined benefit scheme, with 92 participating employers, and where members may have periods of service attributable to several participating employers. The Group is unable to identify its share of the assets and liabilities of the Scheme and therefore accounts for its contributions as if they were paid to a defined contribution scheme. The Group has received confirmation that the assets and liabilities of the Scheme cannot be split between the participating employers. The Group is advised only of the additional contributions it is required to pay to make good the deficit. These contributions could increase in the future if one or more of the participating employers exits the Scheme. The last triennial actuarial valuation of the Scheme was carried out at 31 August 2017 where the total deficit on the ongoing valuation basis was £30.4 million. The accrual of benefits ceased within the Scheme on 31 August 1999, therefore there are no contributions relating to current accrual. The Group pays monthly contributions based on a notional split of the total expenses and deficit contributions of the Scheme. A charge of £1,917,000 (2017: £nil; 2016: £nil) has been made to the income statement during the year, representing the present value of the additional contributions the Group is expected to pay to remedy the revised deficit of the Scheme. The Group currently pays total contributions of £459,000 per annum and this amount will increase by 5% per annum from September 2019. Based on the actuarial valuation assumptions, this will be sufficient to pay off the deficit by 31 October 2023. As of 30 June 2018, the present value of the Group's outstanding contributions (i.e. its future liability) is £2,638,000 (2017: £1,146,000). This amounts to £434,000 (2017: £425,000) due within one year and £2,204,000 (2017: £721,000) due after more than one year and is included within other payables. The funding objective of the Trustees of the Scheme is to have sufficient assets to meet the Technical Provisions of the Scheme. In order to remove the deficit revealed at the previous actuarial valuation (dated 31 August 2017), deficit contributions are payable by all participating clubs. Payments are made in accordance with a pension contribution schedule. As the Scheme is closed to accrual, there are no additional costs associated with the accruing of members' future benefits. In the case of a club being relegated from the Football League and being unable to settle its debt then the remaining clubs may, in exceptional circumstances, have to share the deficit. Upon the wind-up of the Scheme with a surplus, any surplus will be used to augment benefits. Under the more likely scenario of there being a deficit, this will be split amongst the clubs in line with their contribution schedule. Should an individual club choose to leave the Scheme, they would be required to pay their share of the deficit based on a proxy buyout basis (i.e. valuing the benefits on a basis consistent with buying out the benefits with an insurance company). 30.2 Defined contribution schemes Contributions made to defined contribution pension arrangements are charged to the income statement in the period in which they become payable and for the year ended 30 June 2018 amounted to £2,686,000 (2017: £2,435,000; 2016: £2,427,000). As at 30 June 2018, contributions of £295,000 (2017: £284,000) due in respect of the current reporting period had not been paid over to the pension schemes. The assets of all pension schemes to which the Group contributes are held separately from the Group in independently administered funds. |
Financial risk management
Financial risk management | 12 Months Ended |
Jun. 30, 2018 | |
Financial risk management | |
Financial risk management | 31 Financial risk management 31.1 Financial risk factors The Group's activities expose it to a variety of financial risks: market risk (including currency risk and interest rate risk), credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's financial performance. The Group uses derivative financial instruments to hedge certain risk exposures. The policy for each of the above risks is described in more detail below. a) Market risk (i) Currency risk The Group is exposed to the following currency risks: • Significant revenue received in Euros primarily as a result of participation in UEFA competitions. During the year ended 30 June 2018 the Group received a total of €43.4 million of revenue denominated in Euros (2017: €47.2 million; 2016: €48.1 million). The Group seeks to hedge the majority of the currency risk of this revenue either by using contracted future currency expenses (including player transfer fee commitments) or by placing forward contracts, at the point at which it becomes reasonably certain that it will receive the revenue. • Significant amount of commercial revenue denominated in US dollars. During the year ended 30 June 2018 the Group recognized a total of $164.4 million of revenue denominated in US dollars (2017: $157.9 million; 2016: $182.6 million). The currency risk on these US dollar revenues is hedged to the extent possible (see note 31.2 below). • Risks arising from the US dollar denominated secured term loan facility and senior secured notes (see note 24). At 30 June 2018 the secured term loan facility and senior secured notes included principal amounts of $650,000,000 (2017: $650,000,000) denominated in US dollars. The currency risk on these US dollar borrowings (net of the Group's US dollar cash balances) is hedged to the extent possible (see note 31.2 below). Interest is paid on these borrowings in US dollars. • Payments and receipts of transfer fees may also give rise to foreign currency exposures. Due to the nature of player transfers the Group may not always be able to predict such cash flows until the transfer has taken place. Where possible and depending on the payment profile of transfer fees payable and receivable the Group will seek to hedge future payments and receipts at the point it becomes reasonably certain that the payments will be made or the income will be received. When hedging income to be received, the Group also takes account of the credit risk of the counterparty. It is the policy of the Group to enter into forward foreign exchange contracts to cover specific foreign currency payments and receipts. The following table details the forward foreign currency contracts outstanding at the balance sheet date: 2018 2017 Average Foreign Notional Fair Average Foreign Notional Fair Buy Euro ) ) ) ) Sell Euro — — — — ) The carrying amounts of the Group's material foreign currency denominated monetary assets and monetary liabilities are as follows: 2018 2017 Euro US Dollar Euro US Dollar Monetary assets Monetary liabilities ) ) ) ) ) ) ) ) At 30 June 2018: • if pounds sterling had strengthened by 10% against the Euro, with all other variables held constant, equity and post-tax profit for the year would have been £4.2 million higher (2017: £6.0 million higher). • if pounds sterling had weakened by 10% against the Euro, with all other variables held constant, equity and post-tax profit for the year would have been £5.2 million lower (2017: £7.3 million lower). • if pounds sterling had strengthened by 10% against the US dollar, with all other variables held constant, equity and post-tax profit for the year would have been £17.8 million higher (2017: £18.6 million higher). • if pounds sterling had weakened by 10% against the US dollar, with all other variables held constant, equity and post-tax profit for the year would have been £21.7 million lower (2017: £22.8 million lower). The Group also has a number of embedded foreign exchange derivatives in host Commercial revenue contracts. These are recognized separately in the financial statements at fair value since they are not closely related to the host contract. As of 30 June 2018 the fair value of such derivatives was a net asset of £624,000 (2017: £1,714,000). (ii) Interest rate risk The Group has no significant interest bearing assets other than cash on deposit which attracts interest at a small margin above UK base rates. The Group's interest rate risk arises from its borrowings. Borrowings issued at variable interest rates expose the Group to cash flow interest rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. The Group's borrowings are denominated in US dollar and pounds sterling. Full details of the Group's borrowings and associated interest rates can be found in note 24. The Group manages its cash flow interest rate risk where considered appropriate using interest rate swaps. Such interest rate swaps have the economic effect of converting borrowings from floating rates to fixed rates. Consequently, the impact on equity and post-tax profit of a 1.0% shift in interest rates would not be material to any periods presented. Details of the interest rate swaps committed to at the balance sheet date are provided in note 31.2 below. b) Credit risk Credit risk is managed on a Group basis and arises from favorable derivative financial instruments, trade and other receivables (excluding prepayments) and cash and cash equivalents. Management does not expect any material losses from non-performance by these counterparties. A substantial majority of the Group's Broadcasting revenue is derived from media contracts negotiated by the Premier League and UEFA with media distributors, and although the Premier League obtains guarantees to support certain of its media contracts, typically in the form of letters of credit issued by commercial banks, it remains the Group's single largest credit exposure. The Group derives commercial and sponsorship revenue from certain corporate sponsors, including global, regional, mobile, media and supplier sponsors in respect of which the Group may manage its credit risk by seeking advance payments, installments and/or bank guarantees where appropriate. The substantial majority of this revenue is derived from a limited number of sources. The Group is also exposed to other football clubs globally for the payment of transfer fees on players. Depending on the transaction, some of these fees are paid to the Group in installments. The Group tries to manage its credit risk with respect to those clubs by requiring payments in advance or, in the case of payments on installment, requiring bank guarantees on such payments in certain circumstances. However, the Group cannot ensure these efforts will eliminate its credit exposure to other clubs. A change in credit quality at one of the media broadcasters for the Premier League or UEFA, one of the Group's sponsors or a club to whom the Group has sold a player can increase the risk that such counterparty is unable or unwilling to pay amounts owed to the Group. Derivative financial instruments and cash and cash equivalents are placed with counterparties with a minimum Moody's rating of Aa3. Credit terms offered by the Group vary depending on the type of sale. For seasonal match day facilities and sponsorship contracts, payment is usually required in advance of the season to which the sale relates. For other sales the credit terms typically range from 14 - 30 days, although specific agreements may be negotiated in individual contracts with terms beyond 30 days. For player transfer activities, credit terms are determined on a contract by contract basis. Of the net total trade receivable balance of £123,797,000 (2017: £76,606,000), £29,214,000 (2017: £46,343,000) relates to amounts receivable from various other football clubs in relation to player trading. As of 30 June 2018, trade receivables of £111,912,000 (2017: £54,501,000) were neither past due nor impaired. Management considers that, based on historical information about default rates and the current strength of relationships (a number of which are recurring long term relationships) the credit quality of trade receivables that are neither past due nor impaired is good. As of 30 June 2018, trade receivables of £11,885,000 (2017: £22,104,000) were past due but not impaired. These relate to independent customers for whom there is no recent history of default. The ageing analysis of these trade receivables is as follows: 2018 2017 Up to 3 months past due Over 3 months past due As of 30 June 2018, trade receivables of £9,708,000 (2017: £14,113,000) were impaired and fully provided for. The ageing of these receivables, based on due date, is as follows: 2018 2017 Up to 3 months Over 3 months Movements on the provision for impairment of trade receivables are as follows: 2018 2017 Brought forward Provision for receivables impairment Receivables provided subsequently written off ) — Receivables offset against deferred revenue Foreign exchange (gains)/losses on retranslation ) Carried forward The creation and release of provision for impaired receivables have been included in 'other operating expenses' in the income statement (note 5). The other classes within trade and other receivables do not contain impaired assets. c) Liquidity risk The Group's policy is to maintain a balance of continuity of funding and flexibility through the use of secured term loan facilities, senior secured notes and other borrowings as applicable. The annual cash flow is cyclical in nature with a significant portion of cash inflows being received prior to the start of the playing season. Ultimate responsibility for liquidity risk management rests with the executive directors of Manchester United plc. The directors use management information tools including budgets and cash flow forecasts to constantly monitor and manage current and future liquidity. Cash flow forecasting is performed on a regular basis which includes rolling forecasts of the Group's liquidity requirements to ensure that the Group has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. The Group's borrowing facilities are described in note 24. Financing facilities have been agreed at appropriate levels having regard to the Group's operating cash flows and future development plans. Surplus cash held by the operating entities over and above that required for working capital management are invested by Group finance in interest bearing current accounts or money market deposits. As of 30 June 2018, the Group held cash and cash equivalents of £242,022,000 (2017: £290,267,000). The table below analyses the Group's non-derivative financial liabilities and net-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows including interest and therefore differs from the carrying amounts in the consolidated balance sheet. Less than Between Between Over Trade and other payables excluding social security and other taxes(1) Borrowings Non-trading(2) and net settled derivative financial instruments: cash inflow ) ) ) ) At 30 June 2018 Trade and other payables excluding social security and other taxes(1) — Borrowings Non-trading(2) and net settled derivative financial instruments: cash outflow cash inflow ) — — — At 30 June 2017 (1) Social security and other taxes are excluded from trade and other payables balance, as this analysis is required only for financial instruments. (2) Non-trading derivatives are included at their fair value at the balance sheet date. 31.2 Hedging activities The Group uses derivative financial instruments to hedge certain exposures, and has designated certain derivatives as hedges of cash flows (cash flow hedge). The Group hedges the foreign exchange risk on contracted future US dollar revenues whenever possible using the Group's US dollar net borrowings as the hedging instrument. The foreign exchange gains or losses arising on re-translation of the Group's US dollar net borrowings used in the hedge are initially recognized in other comprehensive income, rather than being recognized in the income statement immediately. Amounts previously recognized in other comprehensive income and accumulated in the hedging reserve are subsequently reclassified into the income statement in the same accounting period, and within the same income statement line (i.e. commercial revenue), as the underlying future US dollar revenues, which given the varying lengths of the commercial revenue contracts will be between July 2018 to June 2023. The foreign exchange gains or losses arising on re-translation of the Group's unhedged US dollar borrowings are recognized in the income statement immediately (within net finance costs). The table below details the net borrowings being hedged at the balance sheet date: 2018 2017 USD borrowings Hedged USD cash ) ) Net USD debt Hedged future USD revenues ) ) Unhedged USD borrowings Closing exchange rate The Group hedges its cash flow interest rate risk where considered appropriate using interest rate swaps. Such interest rate swaps have the economic effect of converting borrowings from floating rates to fixed rates. The effective portion of changes in the fair value of the interest rate swap is initially recognized in other comprehensive income, rather than being recognized in the income statement immediately. Amounts previously recognized in other comprehensive income and accumulated in the hedging reserve are subsequently reclassified into the income statement in the same accounting period, and within the same income statement line (i.e. finance costs), as the underlying interest payments, which given the term of the swap will be between July 2018 to June 2024. The following table details the interest rate swaps at the balance sheet date that are used to hedge borrowings: 2018 2017 Current hedged principal value of loan outstanding ($'000) Rate received 1 month $ LIBOR 1 month $ LIBOR Rate paid Fixed 2.032% Fixed 2.032% Expiry date 30 June 2024 30 June 2024 As of 30 June 2018 the fair value of the above interest rate swaps was an asset of £4,490,000 (2017: liability of £655,000). The Group seeks to hedge the majority of the currency risk on revenue arising as a result of participation in UEFA competitions, either by using contracted future foreign currency expenses (including player transfer fee commitments) or by placing forward foreign exchange contracts, at the point at which it becomes reasonably certain that it will receive the revenue. Details of movements on the hedging reserve are as follows: Future Interest Other Total, Tax Total, Balance at 1 July 2015 ) — ) Foreign exchange differences on hedged currency risks ) — — ) — ) Reclassified to income statement — — Fair value movement — ) — ) — ) Tax impact — — — — Movement recognized in other comprehensive loss ) ) — ) ) Balance at 30 June 2016 ) ) — ) ) Foreign exchange differences on hedged currency risks ) — ) — ) Reclassified to income statement — ) — Fair value movement — — — Tax impact — — — — ) ) Movement recognized in other comprehensive income ) ) ) Balance at 30 June 2017 ) ) ) ) ) Foreign exchange differences on hedged currency risks — ) — Reclassified to income statement — — Fair value movement — — — Tax impact — — — — ) ) Movement recognized in other comprehensive income ) ) Balance at 30 June 2018 ) ) ) ) ) Based on exchange rates existing as of 30 June 2018, a 10% appreciation of the UK pounds sterling compared to the US dollar would have resulted in a credit to the hedging reserve in respect of future US dollar revenues of approximately £21,154,000 (2017: £20,966,000) before tax. Conversely, a 10% depreciation of the UK pounds sterling compared to the US dollar would have resulted in a debit to the hedging reserve in respect of US dollar future revenues of approximately £25,855,000 (2017: £25,625,000) before tax. 31.3 Capital risk management The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to shareholders through the optimisation of the debt and equity balance. Capital is calculated as "equity" as shown in the balance sheet plus net debt. Net debt is calculated as total borrowings (including "current and non-current borrowings" as shown in the balance sheet) less cash and cash equivalents and is used by management in monitoring the net indebtedness of the Group. A reconciliation of net debt is shown in note 24. As of 30 June 2018, the Group had total borrowings of £495.8 million (2017: £503.4 million). As described in note 24 above, the Group's revolving facility, the secured term loan facility and the note purchase agreement governing the senior secured notes each contain certain covenants that restrict the activities of Red Football Limited and its subsidiaries. As of 30 June 2018, the Group was in compliance with all covenants under its revolving facility, the secured term loan facility and the note purchase agreement governing the senior secured notes. 31.4 Fair value estimation The following table presents the financial instruments carried at fair value. The different levels used in measuring fair value have been defined as follows: • Level 1—quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2—inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); • Level 3—inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). 2018 2017 Assets Derivative used for hedging (note 18): Interest rate swaps — Derivatives at fair value through profit or loss (note 18): Embedded foreign exchange derivatives Forward foreign exchange contracts Liabilities Derivative used for hedging (note 18): Interest rate swaps — ) Derivatives at fair value through profit or loss (note 18): Forward foreign exchange contracts — ) The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is categorised as Level 2. All of the financial instruments detailed above are categorised as Level 2. Specific valuation techniques used include: • The fair value of embedded foreign exchange derivatives is determined as the change in the fair value of the embedded derivative at the contract inception date and the fair value of the embedded derivative at the balance sheet date; the fair value of the embedded derivative is determined using forward exchange rates with the resulting value discounted to present value; • The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with the resulting value discounted back to present value; • The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves. |
Related party transactions
Related party transactions | 12 Months Ended |
Jun. 30, 2018 | |
Related party transactions | |
Related party transactions | 32 Related party transactions Trusts and other entities controlled by six lineal descendants of Mr. Malcolm Glazer collectively own 7.45% of our issued and outstanding Class A ordinary shares and all of our issued and outstanding Class B ordinary shares, representing 97.07% of the voting power of our outstanding capital stock. |
Subsidiaries
Subsidiaries | 12 Months Ended |
Jun. 30, 2018 | |
Subsidiaries | |
Subsidiaries | 33 Subsidiaries The following companies are the subsidiary undertakings of the Company as of 30 June 2018: Subsidiaries Principal activity % of ownership Red Football Finance Limited* Finance company Red Football Holdings Limited* Holding company Red Football Shareholder Limited Holding company Red Football Joint Venture Limited Holding company Red Football Limited Holding company Red Football Junior Limited Holding company Manchester United Limited Holding company Alderley Urban Investments Limited Property investment Manchester United Commercial Enterprises (Ireland) Limited Dormant company Manchester United Football Club Limited Professional football club Manchester United Women's Football Club Limited Professional football club Manchester United Interactive Limited Dormant company MU 099 Limited Dormant company MU Commercial Holdings Limited Holding company MU Commercial Holdings Junior Limited Holding company MU Finance Limited (formerly known as MU Finance plc) Finance company MU RAML Limited Retail and licensing company MUTV Limited Media company RAML USA LLC Retail company * Direct investment of Manchester United plc, others are held by subsidiary undertakings. All of the above are incorporated and operate in England and Wales, with the exception of Red Football Finance Limited which is incorporated and operates in the Cayman Islands, Manchester United Commercial Enterprises (Ireland) Limited which is incorporated in Ireland and RAML USA LLC which is incorporated in the state of Delaware in the United States. The registered office or principal executive office of all the above, with the exception of Manchester United Commercial Enterprises (Ireland) Limited and RAML USA LLC, is Sir Matt Busby Way, Old Trafford, Manchester, M16 0RA, United Kingdom. The registered office of Manchester United Commercial Enterprises (Ireland) Limited is 4 th Floor, 8-34 Percy Place, Dublin 4, Republic of Ireland. The registered office of RAML USA LLC is Corporation Trust Centre, 1209 Orange Street, Wilmington, New Castle County, Delaware 19801, USA. |
Events after the balance sheet
Events after the balance sheet date | 12 Months Ended |
Jun. 30, 2018 | |
Events after the balance sheet date | |
Events after the balance sheet date | 34 Events after the balance sheet date 34.1 Registrations The playing registrations of certain footballers have been disposed of, subsequent to 30 June 2018, for total proceeds, net of associated costs, of £19,920,000. The associated net book value was £1,297,000. Also subsequent to 30 June 2018, Solidarity contributions, sell-on fees and contingent consideration totalling £3,557,000, became receivable in respect of previous playing registration disposals. Subsequent to 30 June 2018 the playing registrations of certain players were acquired or extended for a total consideration, including associated costs, of £2,388,000. Also subsequent to 30 June 2018, sell-on fees and contingent consideration totalling £520,000, became payable in respect of previous playing registration acquisitions. Payments are due within the next 5 years. |
Additional information-Financia
Additional information-Financial Statement Schedule I | 12 Months Ended |
Jun. 30, 2018 | |
Additional information-Financial Statement Schedule I | |
Additional information-Financial Statement Schedule I | 35 Additional information—Financial Statement Schedule I Schedule I has been provided pursuant to the requirements of Securities and Exchange Commission ("SEC") Regulation S-X Rule 12-04(a), which require condensed financial information as to financial position, cash flows and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented, as the restricted net assets of Manchester United plc's consolidated subsidiaries as of 30 June 2018 exceeded the 25% threshold. As of 30 June 2018, the Group had total borrowings of £495.8 million (2017: £503.4 million). As described in note 24 above, the Group's revolving facility, the secured term loan facility and the note purchase agreement governing the senior secured notes each contain certain covenants that restrict the activities of Red Football Limited and its subsidiaries, including restricted payment covenants. The restricted payment covenants allow dividends in certain circumstances, including to the extent dividends do not exceed 50% of the cumulative consolidated net income of Red Football Limited and its restricted subsidiaries, provided there is no event of default and Red Football Limited is able to meet the principal and interest payments on its debt under a fixed charge coverage test. As of 30 June 2018, the Group was in compliance with the restricted payment covenants and all other covenants under its revolving facility, the secured term loan facility and the note purchase agreement governing the senior secured notes. Certain information and footnote disclosures normally included in financial statements prepared in accordance with International Financial Reporting Standards have been condensed or omitted. The footnote disclosures contain supplemental information only and, as such, these statements should be read in conjunction with the notes to the accompanying consolidated financial statements. The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements, except that investments in subsidiaries are included at cost less any provision for impairment in value. As of 30 June 2018, 2017 and 2016 there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. During the year ended 30 June 2018, cash dividends equivalent to $0.18 (2017: $0.18; 2016: $0.18) per share were declared and paid by the Company. The pounds sterling equivalents were £0.13 (2017: £0.14; 2016: £0.12) per share. Condensed income statement of the Company Year ended 30 June 2018 2017 2016 Revenue — — — Operating expenses ) ) ) Exceptional items — — — Operating loss ) ) ) Income from shares in group undertakings Profit on ordinary activities before tax Tax expense — — — Profit for the year There were no items of other comprehensive loss or income in the years ended 30 June 2018, 2017 or 2016 and therefore no statement of comprehensive income has been presented. Condensed balance sheet of the Company As of 30 June 2018 £'000 2017 £'000 ASSETS Non-current assets Investment in subsidiaries Current assets Other receivables Cash and cash equivalents Total assets EQUITY AND LIABILITIES Equity Share capital Share premium Retained earnings Current liabilities Other payables Total equity and liabilities Condensed statement of changes in equity of the Company Share Share Retained Total equity Balance at 1 July 2015 Profit for the year — — Total comprehensive income for the year — — Equity-settled share based payments — — Dividends paid — — ) ) Balance at 30 June 2016 Profit for the year — — Total comprehensive income for the year — — Equity-settled share based payments — — Dividends paid — — ) ) Proceeds from shares issued — — Balance at 30 June 2017 Profit for the year — — Total comprehensive income for the year — — Equity-settled share based payments — — Dividends paid — — ) ) Balance at 30 June 2018 Condensed statement of cash flows of the Company Year ended 30 June 2018 2017 2016 Cash flows from operating activities Profit before tax Adjustments for: Equity-settled share-based payments Foreign exchange losses on operating activities — Changes in working capital: Other receivables ) ) ) Other payables ) Net cash generated from operating activities Cash flows from financing activities Dividends paid ) ) ) Net cash used in financing activities ) ) ) Net (decrease)/increase in cash and cash equivalents ) ) Cash and cash equivalents at beginning of year Exchange losses on cash and cash equivalents ) ) — Cash and cash equivalents at end of year The following reconciliations are provided as additional information to satisfy the Schedule I SEC requirements for parent-only financial information. 2018 2017 2016 IFRS profit/(loss) reconciliation: Parent only—IFRS profit for the year Additional (loss)/profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost ) Consolidated IFRS (loss)/profit for the year ) IFRS equity reconciliation: Parent only—IFRS equity Additional profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost Consolidated—IFRS equity |
Summary of significant accoun42
Summary of significant accounting policies (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Summary of significant accounting policies | |
Basis of preparation | 2.1 Basis of preparation The consolidated financial statements of Manchester United plc have been prepared on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB") and IFRS Interpretations Committee ("IFRS IC") interpretations. The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities (including derivative financial instruments) which are recognized at fair value through profit and loss, unless cash flow hedge accounting applies. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 3. 2.1.1 Changes in accounting policy and disclosures a) New standards, amendments and interpretations No new standards, amendments or interpretations, effective for the first time for the financial year beginning on or after 1 July 2017, have had a material impact on the consolidated financial statements of the Group. b) New standards, amendments and interpretations not yet adopted A number of new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 July 2017, and have not been applied in preparing these consolidated financial statements. None of these is expected to have a significant effect on the consolidated financial statements of the Group, except as set out below. • IFRS 9, "Financial instruments", addresses the classification, measurement and recognition of financial assets and financial liabilities. The impact of IFRS 9 has been assessed and the new standard does not have a significant effect on the classification and measurement of financial assets and financial liabilities. IFRS 9 also introduces the expected credit losses model for the recognition of financial asset impairment which replaces the incurred loss model of IAS 39. Management does not expect a significant change to the recognition of impairments under the new standard. In addition, the Group's current hedge relationships will qualify as continuing hedges upon the adoption of IFRS 9. The new standard also introduces expanded disclosure requirements and changes in presentation. These will change the nature and extent of the Group's disclosures about its financial instruments particularly in the year of adoption of the new standard. The Group will adopt IFRS 9 from 1 July 2018. • IFRS 15, "Revenue from contracts with customers", deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows from an entity's contracts with customers. The standard replaces IAS 18, "Revenue" and IAS 11, "Construction Contracts" and related interpretations. The impact of IFRS 15 has been assessed by management including a thorough review of existing contractual arrangements. IFRS 15 focuses on the identification and satisfaction of performance obligations and includes specific guidance on the methods for measuring progress towards complete satisfaction of a performance obligation. Such guidance was not present in IAS 18 and therefore treatment was open to interpretation. As a result of the specific guidance in IFRS 15, revenue on certain commercial contracts will be recognized earlier under the new standard. The directors estimate that the opening balance sheet adjustment on 1 July 2018 will be to increase net assets by £1.8 million. The Group will adopt IFRS 15 from 1 July 2018 and will apply the standard retrospectively to each prior reporting period presented. • IFRS 16, "Leases" addresses the definition of a lease, recognition and measurement of leases and establishes principles for reporting useful information to users of financial statements about the leasing activities of both lessees and lessors. A key change arising from IFRS 16 is that most operating leases will be accounted for on balance sheet for lessees. As at the reporting date, the Group has non-cancellable operating lease commitments, however, the Group has not yet determined to what extent these commitments will result in the recognition of an asset and a liability for future payments and how this will affect the Group's profit and classification of cash flows. The Group expects to adopt IFRS 16 from 1 July 2019. |
Consolidation | 2.2 Consolidation Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognized amounts of the acquiree's identifiable net assets. Acquisition-related costs are expensed as incurred. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any previous interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total consideration transferred, non-controlling interest recognized and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized directly in the income statement. Inter-company transactions, balances and unrealized gains and losses on transactions between Group companies are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. |
Segment reporting | 2.3 Segment reporting The Group has one reportable segment, being the operation of a professional football club. The Chief Operating Decision Maker (being the board of directors and executive officers of Manchester United plc), who is responsible for allocating resources and assessing performance obtains financial information, being the Consolidated income statement, Consolidated balance sheet and Consolidated statement of cash flows, and the analysis of changes in net debt, about the Group as a whole. The Group has investment property, however, this is not considered to be a material business segment and is therefore not reported as such. |
Foreign currency translation | 2.4 Foreign currency translation a) Functional and presentation currency Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in pounds sterling, which is the Group's presentation currency. b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where settlements of such transactions, and from the translation at year-end exchange rates items, are re-measured. Foreign exchange gains and losses resulting from the settlement of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement, except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to unhedged borrowings are presented in the income statement within finance costs or income. All other foreign exchange gains and losses are presented in the income statement within operating expenses. c) Group companies The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentational currency are translated into the presentational currency as follows: (i) assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; (ii) income and expenses for each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of each transaction); and (iii) all resulting exchange differences are recognized in other comprehensive income. On disposal of a foreign operation any cumulative exchange differences held in equity are reclassified to the income statement. d) Exchange rates The most important exchange rates per £1.00 that have been used in preparing the financial statements are: Closing rate Average rate 2018 2017 2016 2018 2017 2016 Euro US Dollar |
Revenue recognition | 2.5 Revenue recognition Revenue is measured at the fair value of consideration received or receivable from the Group's principal activities excluding transfer fees and value added tax. The Group's principal revenue streams are Commercial, Broadcasting and Matchday. The Group recognizes revenue when the amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to the entity; and when specific criteria have been met for each of the Group's activities as described below. a) Commercial Commercial revenue (whether settled in cash or value in kind) comprises revenue receivable from the exploitation of the Manchester United brand through sponsorship and other commercial agreements, including minimum guaranteed revenue, revenue receivable from retailing Manchester United branded merchandise in the UK and licensing the manufacture, distribution and sale of such goods globally, and fees for the Manchester United first team undertaking tours. For sponsorship contracts any additional revenue receivable over and above the minimum guaranteed revenue contained in the sponsorship and licensing agreements is taken to revenue when a reliable estimate of the future performance of the contract can be obtained and it is probable that the amounts will not be recouped by the sponsor in future years. Revenue is recognized over the term of the sponsorship agreement in line with the performance obligations included within the contract and based on the sponsorship rights enjoyed by the individual sponsor. In instances where the sponsorship rights remain the same over the duration of the contract, revenue is recognized on a straight-line basis. In respect of contracts with multiple elements, the Group allocates the total consideration receivable to each separately identifiable element based on their relative fair values, and then recognizes the allocated revenue on a straight-line basis over the relevant period of each element. The Group has a 10-year agreement with adidas which began on 1 August 2015. The minimum guarantee payable by adidas over the term of the agreement is £750 million, subject to certain adjustments. Payments due in a particular year may increase if the club's first team wins the Premier League, FA Cup or Champions League, or decrease if the club's first team fails to participate in the Champions League for two or more consecutive seasons with the maximum possible increase being £4 million per year and the maximum possible reduction being 30% of the applicable payment for the year in which the second or other consecutive season of non-participation falls. Revenue is currently being recognized based on management's estimate that the full minimum guarantee amount will be received, as management does not expect two consecutive seasons of non-participation in the Champions League. Retail revenue is recognized at the point of sale while license revenue is recognized in the period in which the goods and services are provided. Commercial revenue which is received in advance of a period end but relating to future periods is treated as deferred revenue. The deferred revenue is then released to revenue on an accruals basis in accordance with the substance of the relevant agreements. b) Broadcasting Broadcasting revenue represents revenue receivable from all UK and overseas broadcasting contracts, including contracts negotiated centrally by the Premier League and UEFA. Distributions from the Premier League comprise a fixed element (which is recognized evenly as domestic home league matches are played), facility fees for live coverage and highlights of domestic home and away matches (which are recognized when the respective match is played), and merit awards (based on finishing position in the league, which are recognized when they are known at the end of each football season). Distributions from UEFA relating to participation in UEFA competitions comprise market pool payments (which are recognized over the matches played in the competition, a portion of which reflects Manchester United's performance relative to the other Premier League clubs in the competition) and fixed amounts for participation in individual matches (which are recognized when the matches are played). Broadcasting revenue which is received in advance of a period end but relating to future periods is treated as deferred revenue. The deferred revenue is then released to revenue on an accruals basis in accordance with the substance of the relevant agreements. c) Matchday Matchday revenue is recognized based on matches played throughout the year with revenue from each match being recognized only when the match has been played. Revenue from related activities such as Conference and Events or the Museum is recognized as the event or service is provided or the facility is used. Matchday revenue includes revenue receivable from all domestic and European match day activities from Manchester United games at Old Trafford, together with the Group's share of gate receipts from domestic cup matches not played at Old Trafford, and fees for arranging other events at the Old Trafford stadium. As the Group acts as the principal in the sale of match tickets, the share of gate receipts payable to the other participating club and competition organizer for domestic cup matches played at Old Trafford is treated as an operating expense. Matchday revenue which is received in advance of a period end but relating to future periods (mainly the sale of seasonal facilities for first team matches at Old Trafford) is treated as deferred revenue. The deferred revenue is then released to revenue as the matches are played. d) Finance income Finance income is recognized using the effective interest rate method. e) Accrued revenue Revenue from matchday activities, broadcasting and commercial contracts, which is received after the period to which it relates, is accrued as earned. f) Deferred revenue Revenue from matchday activities, broadcasting and commercial contracts, received or receivable prior to the period end in respect of future periods, is deferred. |
Operating leases | 2.6 Operating leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease. Rentals receivable under sub-tenancy agreements (net of any incentives given to the lessee) are credited to the income statement on a straight-line basis over the lease term. The risk and rewards of ownership on the sub-let property remain with the third party lessor. |
Exceptional items | 2.7 Exceptional items Exceptional items are disclosed separately in the financial statements where it is necessary to do so to provide further understanding of the financial performance of the Group. They are material items of income or expense that have been shown separately due to the significance of their nature or amount. |
Pension costs | 2.8 Pension costs The Group is one of a number of participating employers in The Football League Limited Pension and Life Assurance Scheme ('the scheme'—see note 30.1). The Group is unable to identify its share of the assets and liabilities of the scheme and therefore accounts for its contributions as if they were paid to a defined contribution scheme. The Group's contributions into this scheme are reflected within the income statement when they fall due. Full provision has been made for the additional contributions that the Group has been requested to pay to help fund the scheme deficit. The Group also operates a defined contribution scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The Group's contributions into this scheme are reflected within the income statement when they fall due. |
Share-based payments | 2.9 Share-based payments The Group operates a share-based compensation plan under which the entity receives services from employees as consideration for equity instruments of the Group. Equity-settled share-based payments to employees are measured at the fair value of the equity instruments at the grant date. The fair value excludes the effect of non-market based vesting conditions. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of equity instruments that will eventually vest. At each balance sheet date, the Group revises its estimate of the number of equity instruments expected to vest as a result of the effect of non-market based vesting conditions. The impact of the revision of the original estimates, if any, is recognized in the income statement such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity reserves. For cash-settled share-based payments to employees, a liability is recognized for the services acquired, measured initially at the fair value of the liability. At each balance sheet date until the liability is settled, and at the date of settlement, the fair value of the liability is re-measured, with any changes in fair value recognized in profit or loss for the year. Details regarding the determination of the fair value of share-based transactions are set out in note 22. |
Current and deferred tax | 2.10 Current and deferred tax The tax expense or credit for the period comprises current and deferred tax. Tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income, in which case the tax is also recognized in other comprehensive income. The current tax expense or credit is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Although the Company is organized as a Cayman Islands corporation, it reports as a US domestic corporation for US federal income tax purposes and is subject to US federal income tax on the Group's worldwide income. In addition, the Group is subject to income and other taxes in various other jurisdictions, including the UK. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to (or recovered from) the tax authorities. Deferred tax is recognized on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred liability is settled. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. |
Dividend distribution | 2.11 Dividend distribution Dividend distributions to the Company's shareholders are recognized when they become legally payable. In the case of interim dividends, this is when they are paid. |
Property, plant and equipment | 2.12 Property, plant and equipment Property, plant and equipment is initially measured at cost (comprising the purchase price, after deducting discounts and rebates, and any directly attributable costs) and is subsequently carried at cost less accumulated depreciation and any provision for impairment. Subsequent costs, for example, capital improvements and refurbishment, are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Where appropriate, the carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. Land is not depreciated. With the exception of freehold property acquired before 1 August 1999, depreciation is calculated using the straight-line method to write-down assets to their residual value over the estimated useful lives as follows: Freehold property 75 years Computer equipment and software (included within Plant and machinery) 3 years Plant and machinery 4 - 5 years Fixtures and fittings 7 years Freehold property acquired before 1 August 1999 is depreciated on a reducing balance basis at an annual rate of 1.33%. The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Any impairment charges arising are recognized in the income statement when the carrying amount of an asset is greater than the estimated recoverable amount, which is the higher of an asset's fair value less costs to sell and value in use, and are calculated with reference to future discounted cash flows that the asset is expected to generate when considered as part of a cash-generating unit. Prior impairments are reviewed for possible reversal at each balance sheet date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within operating expenses within the income statement. |
Investment property | 2.13 Investment property Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Group, is classified as investment property. Investment property is initially measured at cost (comprising the purchase price, after deducting discounts and rebates, and any directly attributable costs) and is subsequently carried at cost less accumulated depreciation and any provision for impairment. Investment property is depreciated using the straight-line method over 50 years. Investment properties are reviewed for impairment when there is a triggering event such as a decline in the property market. An impairment charge is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. Prior impairments are reviewed for possible reversal at each balance sheet date. If an impairment charge subsequently reverses, the carrying amount of the asset 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 charge been recognized for the asset in prior years. |
Intangible assets - goodwill | 2.14 Intangible assets—goodwill a) Initial recognition Goodwill represents the excess of the cost of an acquisition over the fair value of the Group's share of the net identifiable assets of the acquired subsidiary at the date of acquisition. b) Impairment Management considers there to be one material cash generating unit for the purposes of the annual impairment review, being the operation of a professional football club. Goodwill is not subject to amortization and is tested annually for impairment or more frequently if events or changes in circumstances indicate a potential impairment. An impairment loss is recognized in the income statement when the carrying value of goodwill exceeds its recoverable amount. Its recoverable amount is the higher of fair value less costs of disposal and value in use. Prior impairments are not subsequently reviewed for possible reversal at each balance sheet date. |
Intangible assets - registrations and football staff remuneration | 2.15 Intangible assets—registrations and football staff remuneration a) Remuneration Remuneration is charged to operating expenses on a straight-line basis over the contract periods based on the amount payable to players and key football management staff for that period. Any performance bonuses are recognized when the Company considers that it is probable that the condition related to the payment will be achieved. Signing-on fees are typically paid to players and key football management staff in equal annual installments over the term of the contract. Installments are paid at or near the beginning of each financial year and recognized as prepayments within trade and other receivables. They are subsequently charged to the income statement (as operating expenses) on a straight-line basis over the financial year. Signing-on fees paid form part of cash flows from operating activities. Loyalty fees are bonuses which are paid to players and key football management staff either at the beginning of a renewed contract or in installments over the term of their contract in recognition for either past or future performance. Loyalty bonuses for past service are typically paid in a lump sum amount upon renewal of a contract. These loyalty bonuses require no future service and are not subject to any claw-back provisions were the individual to subsequently leave the club during their new contract term. They are expensed once the Company has a present legal or constructive obligation to make the payment. Loyalty bonuses for ongoing service are typically paid in arrears in equal annual installments over the term of the contract. These are paid at the beginning of the next financial year and the related charge is recognized within operating expenses in the income statement on a straight-line basis over the current financial year. b) Initial recognition The costs associated with the acquisition of players' and key football management staff registrations are capitalized at the fair value of the consideration payable. Costs include transfer fees, PL levy fees, agents' fees incurred by the club and other directly attributable costs. Costs also include the fair value of any contingent consideration, which is primarily payable to the player's former club (with associated levy fees payable to the PL), once payment becomes probable. Subsequent reassessments of the amount of contingent consideration payable are also included in the cost of the player's registration. The estimate of the fair value of the contingent consideration payable requires management to assess the likelihood of specific performance conditions being met which would trigger the payment of the contingent consideration. This assessment is carried out on an individual player basis. The additional amount of contingent consideration potentially payable, in excess of the amounts included in the cost of registrations, is disclosed in note 29.2. Costs are fully amortized using the straight-line method over the period covered by the player's and key football management staff contract. c) Renegotiation Where a contract is extended, any costs associated with securing the extension are added to the unamortized balance (at the date of the amendment) and the revised book value is amortized over the remaining revised contract life. d) Disposals and loan income Assets available for sale (principally players' registrations) are classified as assets held for sale when their carrying value is expected to be recovered principally through a sale transaction and a sale is considered to be highly probable. Highly probable is defined as being actively marketed by the club, with unconditional offers having been received prior to a period end. These assets would be stated at the lower of the carrying amount and fair value less costs to sell. Gains and losses on disposal of players' and key football management staff registrations are determined by comparing the fair value of the consideration receivable, net of any transaction costs, with the carrying amount and are recognized separately in the income statement within profit on disposal of intangible assets. Where a part of the consideration receivable is contingent on specified performance conditions, this amount is recognized in the income statement when receipt is virtually certain. Loan income on players temporarily loaned to other football clubs is recognized separately in the income statement within profit/(loss) on disposal of intangible assets. e) Impairment Management does not consider that it is possible to determine the value in use of an individual player or key football management staff in isolation as that individual (unless via a sale or insurance recovery) cannot generate cash flows on their own. While management does not consider any individual can be separated from the single cash generating unit ("CGU"), being the operations of the Group as a whole, there may be certain circumstances where an individual is taken out of the CGU, when it becomes clear that they will not participate with the club's first team again, for example, a player sustaining a career threatening injury or is permanently removed from the first team playing squad for another reason. If such circumstances were to arise, the carrying value of the individual would be assessed against the Group's best estimate of the individual's fair value less any costs to sell and an impairment charge made in operating expenses reflecting any loss arising. |
Intangible assets - other | 2.16 Intangible assets—other Other intangible assets comprise website, mobile applications and trademark registration costs and are initially measured at cost and are subsequently carried at cost less accumulated amortization and any provision for impairment. Amortization is calculated using the straight-line method to write-down assets to their residual value over the estimated useful lives as follows: Website and mobile applications 3 years Trademark registrations 10 years The assets' residual values and useful lives are reviewed and adjusted if appropriate at each balance sheet date. |
Derivative financial instruments and hedging activities | 2.17 Derivative financial instruments and hedging activities Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The resulting gain or loss is recognized in the income statement immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in the income statement depends on the nature of the hedging relationship. The Group designates certain derivatives as hedges of a particular risk associated with a recognized asset or liability or a highly probable forecast transaction (cash flow hedge). The Group hedges the foreign exchange risk on a portion of contracted, and hence highly probable, future US dollar revenues whenever possible using a portion of the Group's US dollar net borrowings as the hedging instrument. Foreign exchange gains or losses arising on re-translation of the Group's US dollar net borrowings used in the hedge are initially recognized in other comprehensive income, rather than being recognized in the income statement immediately. The foreign exchange gains or losses arising on re-translation of the Group's unhedged US dollar borrowings are recognized in the income statement immediately. The Group hedges its cash flow interest rate risk where considered appropriate using interest rate swaps. Such interest rate swaps have the economic effect of converting borrowings from floating rates to fixed rates. The effective portion of changes in the fair value of the interest rate swap is initially recognized in other comprehensive income, rather than being recognized in the income statement immediately. The gain or loss relating to any ineffective portion is recognized in the income statement immediately. The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair value or cash flows of hedged items. The Group uses a variety of methods to assess hedge effectiveness depending on the nature and type of the hedging relationship, including critical terms comparison, dollar offset method and regression analysis. Derivatives embedded in other financial instruments or host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of the host contracts and the host contracts are not measured at fair value through profit or loss. The fair values of various derivative instruments are disclosed in note 18. Movements on the hedging reserve in other comprehensive income are shown in the statement of changes in equity. The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to any ineffective portion is recognized immediately in the income statement. Amounts previously recognized in other comprehensive income and accumulated in the hedging reserve within equity are reclassified to the income statement in the periods when the hedged item affects the income statement (for example, when the forecast transaction that is hedged takes place). When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the hedged item is ultimately recognized in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement. |
Inventories | 2.18 Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished goods comprises cost of purchase and, where appropriate, other directly attributable costs. It excludes borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. |
Trade and other receivables | 2.19 Trade and other receivables Trade and other receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Trade and other receivables are recognized initially at fair value, and subsequently measured at amortized cost using the effective interest method, less provision for impairment. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets. |
Cash and cash equivalents | 2.20 Cash and cash equivalents Cash and cash equivalents includes cash in hand, deposits held at call with banks, and, if applicable, other short-term highly liquid investments with original maturities of three months or less. |
Share capital and reserves | 2.21 Share capital and reserves Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds of the issue. The merger reserve arose as a result of reorganization transactions and represents the difference between the equity of the acquired company (Red Football Shareholder Limited) and the investment by the acquiring company (Manchester United plc). The hedging reserve is used to reflect the effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges. |
Trade and other payables | 2.22 Trade and other payables Trade and other payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. 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. |
Borrowings | 2.23 Borrowings Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortized cost; any differences between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest rate method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case the fee is deferred until draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates. |
Summary of significant accoun43
Summary of significant accounting policies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Summary of significant accounting policies | |
Schedule of exchange rates per 1.00 | The most important exchange rates per £1.00 that have been used in preparing the financial statements are: Closing rate Average rate 2018 2017 2016 2018 2017 2016 Euro US Dollar |
Schedule of estimated useful lives of property, plant and equipment | Freehold property 75 years Computer equipment and software (included within Plant and machinery) 3 years Plant and machinery 4 - 5 years Fixtures and fittings 7 years |
Schedule of estimated useful lives of other intangible assets | Website and mobile applications 3 years Trademark registrations 10 years |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment information | |
Schedule of revenue from main components | 2018 2017 2016 Commercial Broadcasting Matchday |
Schedule of revenue derived from entities accounting for more than 10% of revenue | 2018 2017 2016 Premier League adidas General Motors (Chevrolet) <10% |
Operating expenses (Tables)
Operating expenses (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Operating expenses | |
Schedule of operating expenses | 2018 2017 2016 Employee benefit expense (note 7) ) ) ) Operating lease costs ) ) ) Auditors' remuneration: audit of parent company and consolidated financial statements ) ) ) Auditors' remuneration: audit of the Company's subsidiaries ) ) ) Auditors' remuneration: tax compliance services ) ) ) Auditors' remuneration: other services ) ) ) Foreign exchange (losses)/gains ) ) Gain/(loss) on disposal of property, plant and equipment ) ) Depreciation—property, plant and equipment (note 13) ) ) ) Depreciation—investment property (note 14) ) ) ) Amortization (note 15) ) ) ) Sponsorship, other commercial and broadcasting costs ) ) ) External matchday costs ) ) ) Property costs ) ) ) Other operating expenses (individually less than £10,000,000) ) ) ) Exceptional items (note 6) ) ) ) ) ) |
Exceptional items (Tables)
Exceptional items (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Exceptional items | |
Schedule of exceptional items | 2018 2017 2016 Football League pension scheme deficit (note 30) — — Impairment reversal/(charge)—registrations (note 15) — Compensation paid for loss of office — — |
Employees (Tables)
Employees (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Employees | |
Schedule of employee benefit expense | 2018 2017 2016 Wages and salaries (including bonuses) ) ) ) Social security costs ) ) ) Share-based payments (note 22) ) ) ) Pension costs—defined contribution schemes (note 30.2) ) ) ) ) ) ) |
Schedule of average number of employees | 2018 2017 2016 By activity: Football—players Football—technical and coaching Commercial Media Administration and other Average number of employees |
Schedule of compensation paid or payable to key management for employee services | 2018 2017 2016 Short-term employee benefits Share-based payments Post-employment benefits |
Profit_(loss) on disposal of 48
Profit/(loss) on disposal of intangible assets (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Profit/(loss) on disposal of intangible assets | |
Schedule of profit (loss) on disposal of intangible assets | 2018 2017 2016 Profit/(loss) on disposal of registrations Player loan income — |
Net finance costs (Tables)
Net finance costs (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Net finance costs | |
Schedule of net finance costs | 9 Net finance costs 2018 2017 2016 Interest payable on bank loans and overdrafts ) ) ) Interest payable on secured term loan facility and senior secured notes ) ) ) Amortization of issue costs on secured term loan facility and senior secured notes ) ) ) Foreign exchange gains/(losses) on retranslation of unhedged US dollar borrowings — ) Unwinding of discount relating to registrations ) ) ) Fair value movements on derivative financial instruments: Embedded foreign exchange derivatives ) ) Total finance costs ) ) ) Foreign exchange gains on retranslation of unhedged US dollar borrowings — — Interest receivable on short-term bank deposits Total finance income Net finance costs ) ) ) |
Tax expense (Tables)
Tax expense (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Tax expense | |
Schedule of tax expense | 2018 2017 2016 Current tax: Current tax on (loss)/profit for the year ) ) ) Adjustment in respect of previous years ) ) Foreign tax ) ) ) Total current tax credit/(expense) ) ) Deferred tax: US deferred tax: Origination and reversal of temporary differences ) ) ) Adjustment in respect of previous years ) Impact of change in US federal corporate income tax rate on opening balance(1) ) — — Total US deferred tax (expense)/credit (note 25) ) ) UK deferred tax: Origination and reversal of temporary differences ) ) Adjustment in respect of previous years ) Impact of change in UK corporation tax rate — Total UK deferred tax (expense)/credit (note 25) ) ) Total deferred tax (expense)/credit ) ) Total tax expense ) ) ) |
Schedule of reconciliation of the total tax expense | 2018 2017 2016 Profit before tax Profit before tax multiplied by weighted average US federal corporate income tax rate of 28.0% (2017: 35.0%; 2016: 35.0%) ) ) ) Tax effects of: Adjustment in respect of previous years ) Difference in tax rates on non-US operations ) Foreign exchange gains on US dollar denominated tax basis Expenses not deductible for tax purposes ) ) ) Impact of change in US federal corporate income tax rate on opening balance(1) ) — — Re-measurement of unrealized foreign exchange US deferred tax asset(2) ) — — Re-measurement of foreign tax credit US deferred tax asset(3) — — One time mandatory US tax charge ) — — Total tax expense ) ) ) (1) The current year deferred tax expense includes a non-cash, tax accounting write-off of £48.8 million following the substantive enactment of US tax reform on 22 December 2017. The non-cash write-off was primarily due to the reduction in the US federal corporate income tax rate from 35% to 21% which necessitated re-measurement of the existing US deferred tax position in the period to 31 December 2017. (2) It is no longer deemed probable that the cumulative unrealized foreign exchange loss arising on USD denominated debt will be deductible for US tax purposes when realized. The associated deferred tax asset was therefore derecognized resulting in a non-cash tax charge of £8.8 million in the year. (3) The deferred tax asset associated with foreign tax credits is continuously re-measured. This has resulted in a write back of £1.6 million in the year. |
Schedule of amounts relating to tax recognized directly in other comprehensive income | 2018 2017 2016 Current tax — US deferred tax (note 25) ) ) UK deferred tax (note 25) ) ) Total tax (expense)/credit recognized in other comprehensive income ) ) |
(Loss)_earnings per share (Tabl
(Loss)/earnings per share (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
(Loss)/earnings per share | |
Schedule of (loss)/earnings per share | 2018 2017 2016 Class A ordinary shares (thousands) Class B ordinary shares (thousands) (Loss)/profit attributable to owners of the parent (£'000) ) Basic (loss)/earnings per share (pence) ) 2018 2017 2016 Class A ordinary shares (thousands) Adjustment for assumed conversion into Class A ordinary shares (thousands) Class B ordinary shares (thousands) (Loss)/profit attributable to owners of the parent (£'000) ) Diluted (loss)/earnings per share (pence)(1) ) (1) For the year ended 30 June 2018, potential ordinary shares are anti-dilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded. For the years ended 30 June 2017 and 2016, potential ordinary shares have been treated as dilutive, as their inclusion in the diluted earnings per share calculation decreases earnings per share. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of property, plant and equipment | |
Schedule of property, plant and equipment | Freehold Plant and Fixtures Total At 1 July 2016 Cost Accumulated depreciation ) ) ) ) Net book amount Year ended 30 June 2017 Opening net book amount Additions Disposals — ) ) ) Depreciation charge ) ) ) ) Closing net book amount At 30 June 2017 Cost Accumulated depreciation ) ) ) ) Net book amount Year ended 30 June 2018 Opening net book amount Additions — Disposals ) — ) ) Depreciation charge ) ) ) ) Closing net book amount At 30 June 2018 Cost Accumulated depreciation ) ) ) ) Net book amount |
Investment property (Table)
Investment property (Table) | 12 Months Ended |
Jun. 30, 2018 | |
Investment properties | |
Schedule of investment property | £'000 At 1 July 2016 Cost Accumulated depreciation and impairment ) Net book amount Year ended 30 June 2017 Opening net book amount Additions Depreciation charge ) Closing net book amount At 30 June 2017 Cost Accumulated depreciation and impairment ) Net book amount Year ended 30 June 2018 Opening net book amount Depreciation charge ) Closing net book amount At 30 June 2018 Cost Accumulated depreciation and impairment ) Net book amount |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Intangible assets. | |
Schedule of intangible assets | Goodwill Registrations Other Total At 1 July 2016 Cost Accumulated amortization — ) ) ) Net book amount Year ended 30 June 2017 Opening net book amount Additions — Disposals — ) — ) Amortization charge — ) ) ) Reversal of impairment (note 6) — — Closing book amount At 30 June 2017 Cost Accumulated amortization — ) ) ) Net book amount Year ended 30 June 2018 Opening net book amount Additions — Disposals — ) — ) Amortization charge — ) ) ) Closing book amount At 30 June 2018 Cost Accumulated amortization — ) ) ) Net book amount |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Inventories | |
Schedule of inventories | 2018 2017 Finished goods |
Financial instruments by cate56
Financial instruments by category (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Financial instruments by category | |
Schedule of financial instruments by category | Note 2018 2017 Assets as per balance sheet Derivatives used for hedging: Derivative financial instruments — At fair value through profit and loss: Derivative financial instruments Loans and receivables: Trade and other receivables excluding prepayments(1) Cash and cash equivalents Liabilities as per balance sheet Derivatives used for hedging: Derivative financial instruments — At fair value through profit and loss: Derivative financial instruments — Other financial liabilities at amortized cost: Trade and other payables excluding social security and other taxes(2) Borrowings (1) Prepayments are excluded from the trade and other receivables balance, as this analysis is required only for financial instruments. (2) Social security and other taxes are excluded from the trade and other payables balance, as this analysis is required only for financial instruments. |
Derivative financial instrume57
Derivative financial instruments (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Derivative financial instrument | |
Schedule of derivative financial instruments | 2018 2017 Assets Liabilities Assets Liabilities Derivatives used for hedging: Interest rate swaps — — ) Derivatives at fair value through profit or loss: Embedded foreign exchange derivatives — — Forward foreign exchange contracts — ) — ) Less non-current portion: Derivatives used for hedging: Interest rate swaps — — ) Derivatives at fair value through profit or loss: Embedded foreign exchange derivatives — — Forward foreign exchange contracts — — — Non-current derivative financial instruments — ) Current derivative financial instruments — ) |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Trade and other receivables | |
Schedule of trade and other receivables | 2018 2017 Trade receivables Less: provision for impairment of trade receivables ) ) Net trade receivables Other receivables Accrued revenue Prepayments Less: non-current portion: Trade receivables Non-current trade and other receivables Current trade and other receivables |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | 2018 2017 Cash at bank and in hand |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Share capital. | |
Schedule of share capital | Number of Ordinary At 1 July 2016 Employee share-based compensation awards—issue of shares At 30 June 2017 Employee share-based compensation awards—issue of shares — At 30 June 2018 |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Share-based payments | |
Schedule of movements in the number of share awards outstanding | Number of Class A At 1 July 2017 Awarded Forfeited ) Vested ) At 30 June 2018 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Trade and other payables | |
Schedule of trade and other payables | 2018 2017 Trade payables Other payables Accrued expenses Social security and other taxes Less: non-current portion: Trade payables Other payables Non-current trade and other payables Current trade and other payables |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Borrowings | |
Schedule of borrowings | 2018 2017 Senior secured notes Secured term loan facility Secured bank loan Accrued interest on senior secured notes Less: non-current portion: Senior secured notes Secured term loan facility Secured bank loan — Non-current borrowings Current borrowings |
Schedule of reconciliation of the movement in the Group's net debt | At 1 July Cash flows Non-cash At 30 June Non-current borrowings — ) Current borrowings ) Less: cash and cash equivalents ) ) ) At 1 July Cash flows Non-cash At 30 June Non-current borrowings — Current borrowings ) Less: cash and cash equivalents ) ) ) ) ) |
Deferred tax (Tables)
Deferred tax (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of temporary difference, unused tax losses and unused tax credits | |
Schedule of deferred taxes | Deferred tax assets and deferred tax liabilities are offset where the Group has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after allowable offset): 2018 2017 US deferred tax assets ) ) UK deferred tax liabilities At 30 June ) ) The movement in deferred tax assets and deferred tax liabilities during the year is as follows: 2018 2017 At 1 July ) ) Expensed/(credited) to income statement (note 10) ) Expensed to other comprehensive income Reclassification to tax receivable — At 30 June ) ) |
US | |
Disclosure of temporary difference, unused tax losses and unused tax credits | |
Schedule of movement in deferred tax assets and deferred tax liabilities | Foreign Net Unrealized Intangible Deferred Other(1) Total At 1 July 2016 ) ) ) ) ) ) ) (Credited)/expensed to income statement (note 10) ) ) ) ) Expensed to other comprehensive income (note 10) — — — — At 30 June 2017 ) ) ) ) ) ) ) Expensed/(credited) to income statement (note 10) ) (Credited)/expensed to other comprehensive income (note 10) ) ) — — — Reclassification to tax receivable — — — — — At 30 June 2018 ) ) ) ) ) ) (1) The "Other" deferred tax asset balance of £2,009,000 primarily comprises bad debt provision not allowed until written off of £2,017,000, provisions not allowed until paid of £3,747,000, and upwards revaluation of tax bases of real estate at the time of the IPO in 2012 of £2,830,000, partially offset by temporary differences arising on depreciation of £6,704,000. |
UK | |
Disclosure of temporary difference, unused tax losses and unused tax credits | |
Schedule of movement in deferred tax assets and deferred tax liabilities | Accelerated Rolled Non Property Net Other(1) Total At 1 July 2016 ) ) Expensed/(credited) to income statement (note 10) ) ) ) ) Expensed to other comprehensive income (note 10) — — — — — At 30 June 2017 ) ) (Credited)/expensed to income statement (note 10) ) ) ) ) Expensed to other comprehensive income (note 10) — — — — — At 30 June 2018 ) ) (1) The "Other" deferred tax asset balance of £4,568,000 primarily comprises losses carried forward arising from UK tax legislation introduced during the year ended 30 June 2017. |
Cash generated from operations
Cash generated from operations (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Cash generated from operations | |
Schedule of cash generated from operations | Notes 2018 2017 2016 Profit before tax Adjustments for: Depreciation 13, 14 Impairment (reversal)/charge 6 — ) Amortization 15 (Profit)/loss on disposal of intangible assets ) ) Net finance costs (Profit)/loss on disposal of property, plant and equipment ) Equity-settled share-based payments 22 Foreign exchange losses/(gains) on operating activities ) Reclassified from hedging reserve Changes in working capital: Inventories ) ) Trade and other receivables(1) ) ) Trade and other payables and deferred revenue(1) ) Cash generated from operations (1) These amounts exclude non-cash movements and movements in respect of items reported elsewhere in the consolidated statement of cash flows, primarily in investing activities (where the timing of acquisitions and disposals and related cash flows can differ), resulting in: • an increase in changes to trade and other receivables of £18,374,000 (2017: reduction of £3,224,000; 2016: reduction of £20,676,000); and • an increase in changes to trade and other payables and deferred revenue of £74,088,000 (2017: reduction of £26,428,000; 2016: reduction of £26,838,000). |
Operating lease arrangements (T
Operating lease arrangements (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Operating lease arrangements | |
Schedule of future aggregate minimum lease payments under non-cancellable operating lease | 2018 2017 No later than 1 year Later than 1 year and no later than 5 years Later than 5 years |
Schedule of future aggregate minimum rental receivable under non-cancellable operating lease | 2018 2017 No later than 1 year Later than 1 year and no later than 5 years Later than 5 years |
Capital commitments and conti67
Capital commitments and contingent fees (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Capital commitments and contingent fees | |
Schedule of potential amount payable by type of condition and category of player | As of 30 June 2018 the potential amount payable by type of condition and category of player was: First team Other Total Type of condition: MUFC appearances/team success/new contract International appearances As of 30 June 2017 the potential amount payable by type of condition and category of player was: First team Other Total Type of condition: MUFC appearances/team success/new contract International appearances |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Financial risk management | |
Schedule of forward foreign currency contracts outstanding at balance sheet date | 2018 2017 Average Foreign Notional Fair Average Foreign Notional Fair Buy Euro ) ) ) ) Sell Euro — — — — ) |
Schedule of carrying amounts of foreign currency denominated monetary assets and monetary liabilities | 2018 2017 Euro US Dollar Euro US Dollar Monetary assets Monetary liabilities ) ) ) ) ) ) ) ) |
Schedule of ageing analysis of trade receivables that are past due but not impaired | 2018 2017 Up to 3 months past due Over 3 months past due |
Schedule of ageing of trade receivables that are determined to be impaired | 2018 2017 Up to 3 months Over 3 months |
Schedule of movements on provision for impairment of trade receivables | 2018 2017 Brought forward Provision for receivables impairment Receivables provided subsequently written off ) — Receivables offset against deferred revenue Foreign exchange (gains)/losses on retranslation ) Carried forward |
Schedule of contractual undiscounted cash flows including interest | Less than Between Between Over Trade and other payables excluding social security and other taxes(1) Borrowings Non-trading(2) and net settled derivative financial instruments: cash inflow ) ) ) ) At 30 June 2018 Trade and other payables excluding social security and other taxes(1) — Borrowings Non-trading(2) and net settled derivative financial instruments: cash outflow cash inflow ) — — — At 30 June 2017 (1) Social security and other taxes are excluded from trade and other payables balance, as this analysis is required only for financial instruments. (2) Non-trading derivatives are included at their fair value at the balance sheet date. |
Schedule of net borrowings being hedged at balance sheet date | 2018 2017 USD borrowings Hedged USD cash ) ) Net USD debt Hedged future USD revenues ) ) Unhedged USD borrowings Closing exchange rate |
Schedule of interest rate swaps at balance sheet date that are used to hedge borrowings | 2018 2017 Current hedged principal value of loan outstanding ($'000) Rate received 1 month $ LIBOR 1 month $ LIBOR Rate paid Fixed 2.032% Fixed 2.032% Expiry date 30 June 2024 30 June 2024 |
Schedule of movements on the hedging reserve | Future Interest Other Total, Tax Total, Balance at 1 July 2015 ) — ) Foreign exchange differences on hedged currency risks ) — — ) — ) Reclassified to income statement — — Fair value movement — ) — ) — ) Tax impact — — — — Movement recognized in other comprehensive loss ) ) — ) ) Balance at 30 June 2016 ) ) — ) ) Foreign exchange differences on hedged currency risks ) — ) — ) Reclassified to income statement — ) — Fair value movement — — — Tax impact — — — — ) ) Movement recognized in other comprehensive income ) ) ) Balance at 30 June 2017 ) ) ) ) ) Foreign exchange differences on hedged currency risks — ) — Reclassified to income statement — — Fair value movement — — — Tax impact — — — — ) ) Movement recognized in other comprehensive income ) ) Balance at 30 June 2018 ) ) ) ) ) |
Schedule of financial instruments carried at fair value | 2018 2017 Assets Derivative used for hedging (note 18): Interest rate swaps — Derivatives at fair value through profit or loss (note 18): Embedded foreign exchange derivatives Forward foreign exchange contracts Liabilities Derivative used for hedging (note 18): Interest rate swaps — ) Derivatives at fair value through profit or loss (note 18): Forward foreign exchange contracts — ) |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Subsidiaries | |
Schedule of subsidiary undertakings | Subsidiaries Principal activity % of ownership Red Football Finance Limited* Finance company Red Football Holdings Limited* Holding company Red Football Shareholder Limited Holding company Red Football Joint Venture Limited Holding company Red Football Limited Holding company Red Football Junior Limited Holding company Manchester United Limited Holding company Alderley Urban Investments Limited Property investment Manchester United Commercial Enterprises (Ireland) Limited Dormant company Manchester United Football Club Limited Professional football club Manchester United Women's Football Club Limited Professional football club Manchester United Interactive Limited Dormant company MU 099 Limited Dormant company MU Commercial Holdings Limited Holding company MU Commercial Holdings Junior Limited Holding company MU Finance Limited (formerly known as MU Finance plc) Finance company MU RAML Limited Retail and licensing company MUTV Limited Media company RAML USA LLC Retail company * Direct investment of Manchester United plc, others are held by subsidiary undertakings. |
Additional information-Financ70
Additional information-Financial Statement Schedule I (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Additional information-Financial Statement Schedule I | |
Statement of condensed income statement | Year ended 30 June 2018 2017 2016 Revenue — — — Operating expenses ) ) ) Exceptional items — — — Operating loss ) ) ) Income from shares in group undertakings Profit on ordinary activities before tax Tax expense — — — Profit for the year |
Statement of condensed balance sheet | As of 30 June 2018 £'000 2017 £'000 ASSETS Non-current assets Investment in subsidiaries Current assets Other receivables Cash and cash equivalents Total assets EQUITY AND LIABILITIES Equity Share capital Share premium Retained earnings Current liabilities Other payables Total equity and liabilities |
Statement of condensed statement of changes in equity | Share Share Retained Total equity Balance at 1 July 2015 Profit for the year — — Total comprehensive income for the year — — Equity-settled share based payments — — Dividends paid — — ) ) Balance at 30 June 2016 Profit for the year — — Total comprehensive income for the year — — Equity-settled share based payments — — Dividends paid — — ) ) Proceeds from shares issued — — Balance at 30 June 2017 Profit for the year — — Total comprehensive income for the year — — Equity-settled share based payments — — Dividends paid — — ) ) Balance at 30 June 2018 |
Statement of condensed statement of cash flows | Year ended 30 June 2018 2017 2016 Cash flows from operating activities Profit before tax Adjustments for: Equity-settled share-based payments Foreign exchange losses on operating activities — Changes in working capital: Other receivables ) ) ) Other payables ) Net cash generated from operating activities Cash flows from financing activities Dividends paid ) ) ) Net cash used in financing activities ) ) ) Net (decrease)/increase in cash and cash equivalents ) ) Cash and cash equivalents at beginning of year Exchange losses on cash and cash equivalents ) ) — Cash and cash equivalents at end of year |
Statement of reconciliation of parent and consolidated financial information | 2018 2017 2016 IFRS profit/(loss) reconciliation: Parent only—IFRS profit for the year Additional (loss)/profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost ) Consolidated IFRS (loss)/profit for the year ) IFRS equity reconciliation: Parent only—IFRS equity Additional profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost Consolidated—IFRS equity |
Summary of significant accoun71
Summary of significant accounting policies - Changes in accounting policy and disclosures (Details) £ in Millions | 12 Months Ended | |
Jun. 30, 2018item | Jul. 01, 2018GBP (£) | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Number of new standards, amendments or interpretations, effective for the first time, that had material impact | item | 0 | |
Forecast | Increase (decrease) due to application of IFRS 15 | ||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Net assets | £ | £ 1.8 |
Summary of significant accoun72
Summary of significant accounting policies - Segment reporting (Details) | 12 Months Ended |
Jun. 30, 2018segment | |
Segment reporting | |
Number of material segments | 1 |
Summary of significant accoun73
Summary of significant accounting policies - Exchange rates (Details) | 12 Months Ended | ||||||||
Jun. 30, 2018$ / £ | Jun. 30, 2018$ / £€ / £ | Jun. 30, 2017$ / £ | Jun. 30, 2017$ / £€ / £ | Jun. 30, 2016$ / £ | Jun. 30, 2016$ / £€ / £ | Jun. 30, 2018€ / £ | Jun. 30, 2017€ / £ | Jun. 30, 2016€ / £ | |
Exchange rates | |||||||||
Closing rate | 1.3194 | 1.3194 | 1.2988 | 1.2988 | 1.3332 | 1.3332 | 1.1309 | 1.1379 | 1.2009 |
Average rate | 1.3465 | 1.1327 | 1.2774 | 1.1663 | 1.4774 | 1.3363 |
Summary of significant accoun74
Summary of significant accounting policies - Revenue recognition (Details) - adidas £ in Millions | Aug. 01, 2015GBP (£)item |
Information about adidas agreement | |
Term of agreement (in years) | 10 years |
Minimum guarantee payable | £ 750 |
Maximum increase in guarantee payable per year | £ 4 |
Maximum possible percentage of reduction in guarantee per year | 30.00% |
Number of consecutive seasons of non-participation in Champions League that would impact guarantee payable by adidas | item | 2 |
Summary of significant accoun75
Summary of significant accounting policies - Property, plant and equipment (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Freehold property acquired before 1 August 1999 | |
Property, plant and equipment | |
Depreciation rate on reducing balance basis (as a percent) | 1.33% |
Freehold property acquired after 1 August 1999 | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 75 years |
Computer equipment and software (included within Plant and machinery) | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 3 years |
Fixtures and fittings | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 7 years |
Minimum | Plant and machinery | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 4 years |
Maximum | Plant and machinery | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 5 years |
Summary of significant accoun76
Summary of significant accounting policies - Investment property (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Summary of significant accounting policies | |
Useful lives of investment property (in years) | 50 years |
Summary of significant accoun77
Summary of significant accounting policies - Intangible assets - Goodwill (Details) | Jun. 30, 2018item |
Summary of significant accounting policies | |
Number of material cash generating units for impairment review | 1 |
Summary of significant accoun78
Summary of significant accounting policies - Other intangible assets (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Website and mobile applications | |
Other intangible assets | |
Estimated useful lives of other intangible assets | 3 years |
Trademark registrations | |
Other intangible assets | |
Estimated useful lives of other intangible assets | 10 years |
Critical accounting estimates79
Critical accounting estimates and judgments (Details) - adidas | Aug. 01, 2015item |
Information about adidas agreement | |
Maximum possible percentage of reduction in guarantee per year | 30.00% |
Number of consecutive seasons of non-participation in Champions League that would impact guarantee payable by adidas | 2 |
Segment information - Revenue (
Segment information - Revenue (Details) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2018GBP (£)componentsegment | Jun. 30, 2017GBP (£) | Jun. 30, 2016GBP (£) | |
Segment information | |||
Number of material segments | segment | 1 | ||
Number of main components of revenue | component | 3 | ||
Revenue | £ 590,022 | £ 581,204 | £ 515,345 |
Commercial | |||
Segment information | |||
Revenue | 276,099 | 275,471 | 268,318 |
Broadcasting | |||
Segment information | |||
Revenue | 204,137 | 194,098 | 140,440 |
Matchday | |||
Segment information | |||
Revenue | £ 109,786 | £ 111,635 | £ 106,587 |
Segment information - Major cus
Segment information - Major customers (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of major customers | |||
Revenue | £ 590,022 | £ 581,204 | £ 515,345 |
Premier League | |||
Disclosure of major customers | |||
Revenue | 155,932 | 147,875 | 99,767 |
adidas | |||
Disclosure of major customers | |||
Revenue | £ 79,015 | 79,214 | 72,746 |
General Motors (Chevrolet) | |||
Disclosure of major customers | |||
Revenue | £ 59,396 | £ 58,896 |
Operating expenses (Details)
Operating expenses (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating expenses | |||
Employee benefit expense (note 7) | £ (295,935,000) | £ (263,464,000) | £ (232,242,000) |
Operating lease costs | (1,785,000) | (2,316,000) | (2,392,000) |
Auditors' remuneration: audit of parent company and consolidated financial statements | (28,000) | (27,000) | (26,000) |
Auditors' remuneration: audit of the Company's subsidiaries | (472,000) | (476,000) | (436,000) |
Auditors' remuneration: tax compliance services | (212,000) | (392,000) | (690,000) |
Auditors' remuneration: other services | (184,000) | (456,000) | (143,000) |
Foreign exchange (losses)/gains | (994,000) | (2,646,000) | 7,760,000 |
Gain/(loss) on disposal of property, plant and equipment | 81,000 | (43,000) | (126,000) |
Depreciation-property, plant and equipment (note 13) | (10,625,000) | (10,106,000) | (9,967,000) |
Depreciation-investment property (note 14) | (130,000) | (122,000) | (112,000) |
Amortization (note 15) | (138,380,000) | (124,434,000) | (88,009,000) |
Sponsorship, other commercial and broadcasting costs | (25,907,000) | (28,491,000) | (21,043,000) |
External matchday costs | (24,193,000) | (26,892,000) | (22,244,000) |
Property costs | (21,620,000) | (19,329,000) | (19,180,000) |
Other operating expenses (individually less than 10,000,000) | (41,705,000) | (36,874,000) | (32,724,000) |
Exceptional items (note 6) | (1,917,000) | 4,753,000 | (15,135,000) |
Total operating expenses | (564,006,000) | (511,315,000) | (436,709,000) |
Other operating expenses, limit for individual disclosure | £ 10,000,000 | £ 10,000,000 | £ 10,000,000 |
Exceptional items (Details)
Exceptional items (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Exceptional items | |||
Football League pension scheme deficit (note 30) | £ (1,917) | ||
Impairment reversal/(charge)-registrations (note 15) | £ 4,753 | £ (6,693) | |
Compensation paid for loss of office | (8,442) | ||
Total exceptional items | £ (1,917) | £ 4,753 | £ (15,135) |
Employees - Employee benefit ex
Employees - Employee benefit expense (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Employee benefit expense | |||
Wages and salaries (including bonuses) | £ (255,637,000) | £ (229,605,000) | £ (202,982,000) |
Social security costs | (31,396,000) | (27,334,000) | (23,499,000) |
Share-based payments (note 22) | (6,216,000) | (4,090,000) | (3,334,000) |
Pension costs-defined contribution schemes (note 30.2) | (2,686,000) | (2,435,000) | (2,427,000) |
Total employee benefit expense | £ (295,935,000) | £ (263,464,000) | £ (232,242,000) |
Employees - Average number of p
Employees - Average number of people employed (Details) - employee | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Average number of people employed | |||
Average number of employees | 922 | 865 | 799 |
Number of temporary staff on match days | 3,858 | 2,053 | 2,124 |
Football - players | |||
Average number of people employed | |||
Average number of employees | 81 | 74 | 74 |
Football - technical and coaching | |||
Average number of people employed | |||
Average number of employees | 165 | 136 | 94 |
Commercial | |||
Average number of people employed | |||
Average number of employees | 121 | 120 | 111 |
Media | |||
Average number of people employed | |||
Average number of employees | 87 | 90 | 94 |
Administration and other | |||
Average number of people employed | |||
Average number of employees | 468 | 445 | 426 |
Employees - Key management comp
Employees - Key management compensation (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Employees | |||
Short-term employee benefits | £ (7,620) | £ (8,601) | £ (7,908) |
Share-based payments | (5,275) | (3,654) | (3,131) |
Post-employment benefits | (20) | (71) | (70) |
Total key management compensation | £ (12,915) | £ (12,326) | £ (11,109) |
Profit_(loss) on disposal of 87
Profit/(loss) on disposal of intangible assets (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Profit/(loss) on disposal of intangible assets | |||
Profit/(loss) on disposal of registrations | £ 14,709 | £ 9,876 | £ (9,786) |
Player loan income | 3,410 | 1,050 | |
Total profit/(loss) on disposal of intangible assets | £ 18,119 | £ 10,926 | £ (9,786) |
Net finance costs (Details)
Net finance costs (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net finance costs | |||
Interest payable on bank loans and overdrafts | £ (1,458) | £ (1,502) | £ (1,381) |
Interest payable on secured term loan facility and senior secured notes | (17,567) | (18,784) | (17,306) |
Amortization of issue costs on secured term loan facility and senior secured notes | (627) | (608) | (544) |
Foreign exchange gains/(losses) on retranslation of unhedged US dollar borrowings | 1,816 | (4,136) | |
Unwinding of discount relating to registrations | (3,492) | (2,401) | (2,380) |
Fair value movements on derivative financial instruments: | |||
Embedded foreign exchange derivatives | (1,089) | (3,534) | 5,288 |
Total finance costs | (24,233) | (25,013) | (20,459) |
Foreign exchange gains on retranslation of unhedged US dollar borrowings | 4,952 | ||
Interest receivable on short-term bank deposits | 1,243 | 736 | 442 |
Total finance income | 6,195 | 736 | 442 |
Net finance costs | £ (18,038) | £ (24,277) | £ (20,017) |
Tax expense - Current tax and D
Tax expense - Current tax and Deferred tax (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Current tax: | |||
Total current tax credit/(expense) | £ 58 | £ (24,476) | £ (8,388) |
Deferred tax: | |||
Total deferred tax (expense)/credit | (63,425) | 7,115 | |
Total tax expense | |||
Total tax expense | (63,367) | (17,361) | (12,462) |
UK and US | |||
Current tax: | |||
Current tax on (loss)/profit for the year | (1,809) | (19,722) | (4,633) |
Adjustment in respect of previous years | 2,590 | (2,651) | (2,476) |
Deferred tax: | |||
Total deferred tax (expense)/credit | (63,425) | 7,115 | (4,074) |
US | |||
Deferred tax: | |||
Origination and reversal of temporary differences | (9,225) | (3,371) | (3,879) |
Adjustment in respect of previous years | (1,909) | 1,782 | 5,039 |
Impact of change in corporate tax rate | (48,832) | ||
Total deferred tax (expense)/credit | (59,966) | (1,589) | 1,160 |
UK | |||
Deferred tax: | |||
Origination and reversal of temporary differences | (3,701) | 6,171 | (5,258) |
Adjustment in respect of previous years | 242 | 938 | (2,687) |
Impact of change in corporate tax rate | 1,595 | 2,711 | |
Total deferred tax (expense)/credit | (3,459) | 8,704 | (5,234) |
Other than UK and US | |||
Current tax: | |||
Current tax on (loss)/profit for the year | £ (723) | £ (2,103) | £ (1,279) |
Tax expense - Reconciliation of
Tax expense - Reconciliation of the total tax expense (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of the total tax expense | ||||
Profit before tax | £ 26,097 | £ 56,538 | £ 48,833 | |
Profit before tax multiplied by weighted average US federal corporate income tax rate of 28.0% (2017: 35.0%; 2016: 35.0%) | (7,307) | (19,789) | (17,092) | |
Tax effects of: | ||||
Adjustment in respect of previous years | 923 | 69 | (124) | |
Difference in tax rates on non-US operations | 491 | 244 | (612) | |
Foreign exchange gains on US dollar denominated tax basis | 238 | 2,362 | 5,755 | |
Expenses not deductible for tax purposes | (648) | (247) | (389) | |
Impact of change in US federal corporate income tax rate on opening balance | (48,832) | |||
Re-measurement of unrealized foreign exchange US deferred tax asset | (8,795) | |||
Re-measurement of foreign tax credit US deferred tax asset | 1,637 | |||
One time mandatory US tax charge | (1,074) | |||
Total tax expense | £ (63,367) | £ (17,361) | £ (12,462) | |
US | ||||
Tax effects of: | ||||
Corporate tax rate | 21.00% | 28.00% | 35.00% | 35.00% |
Tax expense - Additional inform
Tax expense - Additional information related to tax (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income tax related to recognition in other comprehensive income | |||
Current tax | £ 16,251 | £ 1,466 | |
Deferred tax | £ (21,892) | (16,932) | |
Total tax (expense)/credit recognized in other comprehensive income | (21,892) | (681) | 20,307 |
US | |||
Income tax related to recognition in other comprehensive income | |||
Deferred tax | (17,620) | (1,764) | 10,660 |
UK | |||
Income tax related to recognition in other comprehensive income | |||
Deferred tax | £ (4,272) | £ (15,168) | £ 8,181 |
(Loss)_earnings per share (Deta
(Loss)/earnings per share (Details) £ / shares in Units, £ in Thousands, shares in Thousands | 12 Months Ended | |||
Jun. 30, 2018GBP (£)£ / sharesitemshares | Jun. 30, 2017GBP (£)£ / sharesshares | Jun. 30, 2016GBP (£)£ / sharesshares | ||
(Loss)/earnings per share | ||||
Weighted average number of ordinary shares outstanding, basic | 164,195 | 164,025 | 163,890 | |
Weighted average number of ordinary shares outstanding, diluted | 164,610 | 164,493 | 164,319 | |
(Loss)/profit attributable to owners of the parent | £ | £ (37,270) | £ 39,177 | £ 36,371 | |
(Loss)/profit attributable to owners of the parent | £ | £ (37,270) | £ 39,177 | £ 36,371 | |
Basic (loss)/earnings per share | £ / shares | £ (0.2270) | £ 0.2388 | £ 0.2219 | |
Diluted (loss)/earnings per share | £ / shares | [1] | £ (0.2270) | £ 0.2382 | £ 0.2213 |
Number of categories of dilutive potential ordinary shares | item | 1 | |||
Class A ordinary shares | ||||
(Loss)/earnings per share | ||||
Weighted average number of ordinary shares outstanding, basic | 40,195 | 40,025 | 39,890 | |
Adjustment for assumed conversion into Class A ordinary shares | 415 | 468 | 429 | |
Class B ordinary shares | ||||
(Loss)/earnings per share | ||||
Weighted average number of ordinary shares outstanding, basic | 124,000 | 124,000 | 124,000 | |
[1] | For the year ended 30 June 2018, potential ordinary shares are antidilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded. For the years ended 30 June 2017 and 2016, potential ordinary shares have been treated as dilutive, as their inclusion in the diluted earnings per share calculation decreases earnings per share. |
Dividends (Details)
Dividends (Details) | 12 Months Ended | |||||
Jun. 30, 2018USD ($)$ / shares | Jun. 30, 2018GBP (£)£ / shares | Jun. 30, 2017USD ($)$ / shares | Jun. 30, 2017GBP (£)£ / shares | Jun. 30, 2016USD ($)$ / shares | Jun. 30, 2016GBP (£)£ / shares | |
Dividends | ||||||
Dividends paid | $ 29,555,000 | £ 21,982,000 | $ 29,525,000 | £ 23,295,000 | $ 29,501,000 | £ 20,084,000 |
Dividends paid per share | (per share) | $ 0.18 | £ 0.13 | $ 0.18 | £ 0.14 | $ 0.18 | £ 0.12 |
Property, plant and equipment94
Property, plant and equipment (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of changes in property, plant and equipment | |||
Opening amount | £ 244,738,000 | £ 245,714,000 | |
Additions | 11,311,000 | 9,173,000 | |
Disposals | (23,000) | (43,000) | |
Depreciation charge | (10,625,000) | (10,106,000) | £ (9,967,000) |
Closing amount | 245,401,000 | 244,738,000 | 245,714,000 |
Net book amount of property, plant and equipment pledged as security | 205,388,000 | 199,990,000 | |
Cost / gross value | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 354,083,000 | 349,906,000 | |
Closing amount | 361,957,000 | 354,083,000 | 349,906,000 |
Accumulated depreciation, amortization and impairment | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | (109,345,000) | (104,192,000) | |
Closing amount | (116,556,000) | (109,345,000) | (104,192,000) |
Freehold property | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 222,628,000 | 225,926,000 | |
Additions | 3,000 | ||
Disposals | (5,000) | ||
Depreciation charge | (3,288,000) | (3,301,000) | |
Closing amount | 219,335,000 | 222,628,000 | 225,926,000 |
Freehold property | Cost / gross value | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 269,372,000 | 269,369,000 | |
Closing amount | 269,367,000 | 269,372,000 | 269,369,000 |
Freehold property | Accumulated depreciation, amortization and impairment | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | (46,744,000) | (43,443,000) | |
Closing amount | (50,032,000) | (46,744,000) | (43,443,000) |
Plant and machinery | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 3,385,000 | 4,241,000 | |
Additions | 2,605,000 | 1,578,000 | |
Disposals | (7,000) | ||
Depreciation charge | (1,821,000) | (2,427,000) | |
Closing amount | 4,169,000 | 3,385,000 | 4,241,000 |
Plant and machinery | Cost / gross value | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 34,475,000 | 36,728,000 | |
Closing amount | 34,790,000 | 34,475,000 | 36,728,000 |
Plant and machinery | Accumulated depreciation, amortization and impairment | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | (31,090,000) | (32,487,000) | |
Closing amount | (30,621,000) | (31,090,000) | (32,487,000) |
Fixtures and fittings | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 18,725,000 | 15,547,000 | |
Additions | 8,706,000 | 7,592,000 | |
Disposals | (18,000) | (36,000) | |
Depreciation charge | (5,516,000) | (4,378,000) | |
Closing amount | 21,897,000 | 18,725,000 | 15,547,000 |
Fixtures and fittings | Cost / gross value | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 50,236,000 | 43,809,000 | |
Closing amount | 57,800,000 | 50,236,000 | 43,809,000 |
Fixtures and fittings | Accumulated depreciation, amortization and impairment | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | (31,511,000) | (28,262,000) | |
Closing amount | £ (35,903,000) | £ (31,511,000) | £ (28,262,000) |
Investment property (Details)
Investment property (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investment property | |||
Opening amount | £ 13,966,000 | £ 13,447,000 | |
Additions | 641,000 | ||
Depreciation charge | (130,000) | (122,000) | £ (112,000) |
Closing amount | 13,836,000 | 13,966,000 | 13,447,000 |
Investment property, rental revenue | 1,371,000 | 1,260,000 | 1,336,000 |
Direct operating expenses arising on investment property, generated rental income | 182,000 | 679,000 | 652,000 |
Net book value of pledged investment property | 6,630,000 | 6,660,000 | |
Contractual obligations to purchase, construct or develop investment property | 0 | 0 | |
Cost / gross value | |||
Investment property | |||
Opening amount | 19,769,000 | 19,128,000 | |
Closing amount | 19,769,000 | 19,769,000 | 19,128,000 |
Accumulated depreciation, amortization and impairment | |||
Investment property | |||
Opening amount | (5,803,000) | (5,681,000) | |
Closing amount | (5,933,000) | (5,803,000) | £ (5,681,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed | |||
Investment property | |||
Opening amount | 14,868,000 | ||
Closing amount | £ 16,450,000 | £ 14,868,000 |
Intangible assets - Reconciliat
Intangible assets - Reconciliation of intangible assets (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of intangible assets | |||
Opening amount | £ 717,544 | £ 665,634 | |
Additions | 247,677 | 208,944 | |
Disposals | (27,201) | (37,353) | |
Amortization charge | (138,380) | (124,434) | £ (88,009) |
Reversal of impairment (note 6) | 4,753 | ||
Closing amount | 799,640 | 717,544 | 665,634 |
Cost / gross value | |||
Reconciliation of intangible assets | |||
Opening amount | 1,073,505 | 936,112 | |
Closing amount | 1,217,426 | 1,073,505 | 936,112 |
Accumulated depreciation, amortization and impairment | |||
Reconciliation of intangible assets | |||
Opening amount | (355,961) | (270,478) | |
Closing amount | (417,786) | (355,961) | (270,478) |
Goodwill | |||
Reconciliation of intangible assets | |||
Opening amount | 421,453 | 421,453 | |
Closing amount | 421,453 | 421,453 | 421,453 |
Goodwill | Cost / gross value | |||
Reconciliation of intangible assets | |||
Opening amount | 421,453 | 421,453 | |
Closing amount | 421,453 | 421,453 | 421,453 |
Registrations | |||
Reconciliation of intangible assets | |||
Opening amount | 290,520 | 241,724 | |
Additions | 243,182 | 205,091 | |
Disposals | (27,201) | (37,353) | |
Amortization charge | (136,993) | (123,695) | |
Reversal of impairment (note 6) | 4,753 | ||
Closing amount | 369,508 | 290,520 | 241,724 |
Registrations | Cost / gross value | |||
Reconciliation of intangible assets | |||
Opening amount | 645,433 | 511,893 | |
Closing amount | 785,594 | 645,433 | 511,893 |
Registrations | Accumulated depreciation, amortization and impairment | |||
Reconciliation of intangible assets | |||
Opening amount | (354,913) | (270,169) | |
Closing amount | (416,086) | (354,913) | (270,169) |
Other intangible assets | |||
Reconciliation of intangible assets | |||
Opening amount | 5,571 | 2,457 | |
Additions | 4,495 | 3,853 | |
Amortization charge | (1,387) | (739) | |
Closing amount | 8,679 | 5,571 | 2,457 |
Other intangible assets | Cost / gross value | |||
Reconciliation of intangible assets | |||
Opening amount | 6,619 | 2,766 | |
Closing amount | 10,379 | 6,619 | 2,766 |
Other intangible assets | Accumulated depreciation, amortization and impairment | |||
Reconciliation of intangible assets | |||
Opening amount | (1,048) | (309) | |
Closing amount | £ (1,700) | £ (1,048) | £ (309) |
Intangible Assets - Impairment
Intangible Assets - Impairment tests for goodwill (Details) - Goodwill - GBP (£) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit | ||
Financial budget period | 5 years | |
Terminal growth rate used to extrapolate cashflows (as a percent) | 2.50% | 2.50% |
Pre-tax discount rate (as a percent) | 7.80% | 8.60% |
Percentage of increase in discount rate for sensitivity analysis | 1.00% | |
Impairment loss | £ 0 |
Intangible assets - Registratio
Intangible assets - Registrations and Other intangible assets (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Intangible assets | |||
Intangible assets and goodwill | £ 799,640,000 | £ 717,544,000 | £ 665,634,000 |
Cost / gross value | |||
Intangible assets | |||
Intangible assets and goodwill | 1,217,426,000 | 1,073,505,000 | 936,112,000 |
Accumulated depreciation, amortization and impairment | |||
Intangible assets | |||
Intangible assets and goodwill | (417,786,000) | (355,961,000) | (270,478,000) |
Registrations | |||
Intangible assets | |||
Intangible assets and goodwill | £ 369,508,000 | 290,520,000 | 241,724,000 |
Useful life of assets beyond one year after current year | 4 years | ||
Registrations | Less than 1 year | |||
Intangible assets | |||
Intangible assets and goodwill | £ 138,500,000 | ||
Registrations | Cost / gross value | |||
Intangible assets | |||
Intangible assets and goodwill | 785,594,000 | 645,433,000 | 511,893,000 |
Registrations | Accumulated depreciation, amortization and impairment | |||
Intangible assets | |||
Intangible assets and goodwill | (416,086,000) | (354,913,000) | (270,169,000) |
Other intangible assets | |||
Intangible assets | |||
Intangible assets and goodwill | 8,679,000 | 5,571,000 | 2,457,000 |
Other intangible assets | Cost / gross value | |||
Intangible assets | |||
Intangible assets and goodwill | 10,379,000 | 6,619,000 | 2,766,000 |
Other intangible assets | Cost / gross value | Internally generated | |||
Intangible assets | |||
Intangible assets and goodwill | 1,412,000 | 1,026,000 | |
Other intangible assets | Accumulated depreciation, amortization and impairment | |||
Intangible assets | |||
Intangible assets and goodwill | (1,700,000) | (1,048,000) | £ (309,000) |
Other intangible assets | Accumulated depreciation, amortization and impairment | Internally generated | |||
Intangible assets | |||
Intangible assets and goodwill | £ (39,000) | £ 0 |
Inventories (Details)
Inventories (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Inventories | |||
Finished goods | £ 1,416,000 | £ 1,637,000 | |
Cost of inventory recognized during the period | 8,450,000 | 8,598,000 | £ 7,228,000 |
(Reversal)/write-down of inventories to net realizable value | £ (4,000) | £ (173,000) | £ 177,000 |
Financial instruments by cat100
Financial instruments by category (Details) - GBP (£) £ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure of detailed information about financial instruments | ||
Financial assets | £ 409,910 | £ 400,782 |
Financial liabilities | 850,118 | 761,041 |
Derivatives used for hedging: | Derivative financial instruments | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 655 | |
At fair value through profit and loss: | Derivative financial instruments | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 1,253 | |
Other financial liabilities at amortized cost: | Trade and other payables excluding social security and other taxes | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 354,350 | 255,779 |
Other financial liabilities at amortized cost: | Borrowings | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 495,768 | 503,354 |
Derivative financial instruments | Derivatives used for hedging: | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 4,490 | |
Derivative financial instruments | At fair value through profit and loss | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 1,476 | 4,884 |
Trade and other receivables excluding prepayments | Loans and receivables: | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 161,922 | 105,631 |
Cash and cash equivalents | Loans and receivables: | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | £ 242,022 | £ 290,267 |
Derivative financial instrum101
Derivative financial instruments (Details) - GBP (£) £ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of detailed information about financial instruments | ||
Derivative financial instruments, assets | £ 5,966 | £ 4,884 |
Derivative financial instruments, liabilities | (1,908) | |
Derivative financial instruments, non-current assets | 4,807 | 1,666 |
Derivative financial instruments, non-current liabilities | (655) | |
Derivative financial instruments, current assets | 1,159 | 3,218 |
Derivative financial instruments, current liabilities | (1,253) | |
Ineffective portion of cash flow hedge recognized in profit or loss | 0 | 0 |
Interest rate swap | Derivatives used for hedging: | ||
Disclosure of detailed information about financial instruments | ||
Derivative financial instruments, assets | 4,490 | |
Derivative financial instruments, non-current assets | 4,490 | |
Embedded foreign exchange derivatives | At fair value through profit and loss | ||
Disclosure of detailed information about financial instruments | ||
Derivative financial instruments, assets | 624 | 1,714 |
Derivative financial instruments, non-current assets | 317 | 855 |
Forward foreign currency contracts | At fair value through profit and loss | ||
Disclosure of detailed information about financial instruments | ||
Derivative financial instruments, assets | £ 852 | 3,170 |
Derivative financial instruments, non-current assets | 811 | |
Interest rate swap | Derivatives used for hedging: | ||
Disclosure of detailed information about financial instruments | ||
Derivative financial instruments, liabilities | (655) | |
Derivative financial instruments, non-current liabilities | (655) | |
Forward foreign currency contracts | At fair value through profit and loss: | ||
Disclosure of detailed information about financial instruments | ||
Derivative financial instruments, liabilities | £ (1,253) |
Trade and other receivables (De
Trade and other receivables (Details) - GBP (£) | Jun. 30, 2018 | Jun. 30, 2017 |
Trade and other receivables | ||
Trade receivables | £ 123,797,000 | £ 76,606,000 |
Other receivables | 107,000 | 270,000 |
Accrued revenue | 38,018,000 | 28,755,000 |
Trade and other receivables before prepayments | 161,922,000 | 105,631,000 |
Prepayments | 10,862,000 | 13,500,000 |
Total trade and other receivables | 172,784,000 | 119,131,000 |
Less: non-current portion: | ||
Trade receivables | 4,724,000 | 15,399,000 |
Non-current trade and other receivables | 4,724,000 | 15,399,000 |
Current trade and other receivables | 168,060,000 | 103,732,000 |
Transfer fees receivable | 29,214,000 | 46,343,000 |
Deferred revenue | 77,357,000 | 26,241,000 |
Due after 1 year | ||
Less: non-current portion: | ||
Transfer fees receivable | 4,724,000 | 15,399,000 |
Cost / gross value | ||
Trade and other receivables | ||
Trade receivables | 133,505,000 | 90,719,000 |
Accumulated impairment | ||
Trade and other receivables | ||
Trade receivables | (9,708,000) | (14,113,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Trade and other receivables | ||
Trade receivables | £ 124,050,000 | £ 77,351,000 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - GBP (£) £ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Cash and cash equivalents | ||
Cash at bank and in hand | £ 242,022 | £ 290,267 |
Share capital (Details)
Share capital (Details) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2018GBP (£)Voteitemshares | Jun. 30, 2017GBP (£)shares | Jun. 30, 2018$ / sharesshares | |
Ordinary shares | |||
Balance at the beginning | £ | £ 53 | ||
Issue of equity | £ | £ 1 | ||
Balance at the end | £ | £ 53 | £ 53 | |
Number of class of ordinary shares | item | 2 | ||
Number of class A shares to which one B share is convertible | shares | 1 | ||
Proportion of votes required for special resolutions | 66.67% | ||
Ordinary shares | |||
Number of shares | |||
Balance at the beginning (in shares) | shares | 164,195,000 | 164,025,000 | |
Employee share-based compensation awards - issue of shares (in shares) | shares | 331,000 | 170,000 | |
Balance at the end (in shares) | shares | 164,526,000 | 164,195,000 | |
Ordinary shares | |||
Balance at the beginning | £ | £ 53 | £ 52 | |
Issue of equity | £ | 1 | ||
Balance at the end | £ | £ 53 | £ 53 | |
Class A ordinary shares | |||
Ordinary shares | |||
Par value per ordinary share (in dollars per share) | $ / shares | $ 0.0005 | ||
Number of voting right per share | Vote | 1 | ||
Number of shares issued | shares | 40,526,390 | ||
Class B ordinary shares | |||
Ordinary shares | |||
Par value per ordinary share (in dollars per share) | $ / shares | $ 0.0005 | ||
Number of voting right per share | Vote | 10 | ||
Percentage of ordinary shares outstanding below which Class B shares will convert to Class A | 10.00% | ||
Percentage of voting power of shareholders | 67.00% | ||
Number of shares issued | shares | 124,000,000 |
Share-based payments (Details)
Share-based payments (Details) | 12 Months Ended | |||
Jun. 30, 2018$ / sharesshares | Jun. 30, 2018GBP (£)EquityInstruments£ / sharesshares | Jun. 30, 2017GBP (£)EquityInstruments | Jun. 30, 2016GBP (£) | |
Disclosure of terms and conditions of share-based payment arrangement | ||||
Expenses related to equity-settled share-based payment transactions | £ | £ 2,915,000 | £ 2,187,000 | £ 1,795,000 | |
Expenses related to cash-settled share-based payment transactions | £ | £ 3,301,000 | £ 1,903,000 | £ 1,539,000 | |
Class A ordinary shares | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Shares reserved for issuance | shares | 16,000,000 | 16,000,000 | ||
Shares that remain available for issuance | shares | 15,115,703 | 15,115,703 | ||
Outstanding in share-based payment arrangement at beginning of period | 295,913 | |||
Awarded | 121,408 | |||
Forfeited | (2,532) | |||
Vested | (331,636) | |||
Outstanding in share-based payment arrangement at end of period | 83,153 | 295,913 | ||
Fair value of shares awarded (per share) | (per share) | $ 20.42 | £ 15.48 |
Trade and other payables (Detai
Trade and other payables (Details) - GBP (£) | Jun. 30, 2018 | Jun. 30, 2017 |
Trade and other payables | ||
Trade payables | £ 266,316,000 | £ 191,359,000 |
Other payables | 4,754,000 | 3,258,000 |
Accrued expenses | 83,280,000 | 61,162,000 |
Trade and other payables before Social security and other taxes | 354,350,000 | 255,779,000 |
Social security and other taxes | 17,917,000 | 18,123,000 |
Total trade and other payables | 372,267,000 | 273,902,000 |
Less: non-current portion: | ||
Trade payables | 102,067,000 | 82,866,000 |
Other payables | 2,204,000 | 721,000 |
Non-current trade and other payables | 104,271,000 | 83,587,000 |
Current trade and other payables | 267,996,000 | 190,315,000 |
Transfer fees and other associated costs | 258,316,000 | 179,133,000 |
Liabilities from share-based payment transactions | 4,795,000 | 3,274,000 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Trade and other payables | ||
Trade payables | 270,548,000 | 194,052,000 |
Due after 1 year | ||
Less: non-current portion: | ||
Transfer fees and other associated costs | 102,067,000 | 82,866,000 |
Between 1 and 2 years | ||
Less: non-current portion: | ||
Transfer fees and other associated costs | 65,495,000 | 76,821,000 |
Between 2 and 5 years | ||
Less: non-current portion: | ||
Transfer fees and other associated costs | £ 36,572,000 | £ 6,045,000 |
Borrowings (Details)
Borrowings (Details) | 12 Months Ended | |||||
Jun. 30, 2018GBP (£) | Jun. 30, 2017GBP (£) | Jun. 30, 2018USD ($) | Jun. 30, 2018GBP (£) | Jun. 30, 2017USD ($) | Jun. 30, 2017GBP (£) | |
Disclosure of detailed information about borrowings | ||||||
Total borrowings | £ 495,768,000 | £ 503,354,000 | ||||
Non-current borrowings | 486,694,000 | 497,630,000 | ||||
Current borrowings | 9,074,000 | 5,724,000 | ||||
Minimum amount of consolidated profit or loss (EBITDA) to be maintained | £ 65,000,000 | |||||
Period of time for financial maintenance covenant testing | 12 months | |||||
Senior secured notes | ||||||
Disclosure of detailed information about borrowings | ||||||
Total borrowings | 318,347,000 | 323,113,000 | ||||
Non-current borrowings | 318,347,000 | 323,113,000 | ||||
Unamortized issue costs on borrowings | 3,770,000 | 4,112,000 | ||||
Principal amount / Notional amount | $ | $ 425,000,000 | $ 425,000,000 | ||||
Secured term loan facility | ||||||
Disclosure of detailed information about borrowings | ||||||
Total borrowings | 168,347,000 | 170,767,000 | ||||
Non-current borrowings | 168,347,000 | 170,767,000 | ||||
Unamortized issue costs on borrowings | 2,185,000 | 2,470,000 | ||||
Principal amount / Notional amount | $ | $ 225,000,000 | $ 225,000,000 | ||||
Secured bank loan | ||||||
Disclosure of detailed information about borrowings | ||||||
Total borrowings | 3,750,000 | 4,169,000 | ||||
Non-current borrowings | 3,750,000 | |||||
Accrued interest on senior secured notes | ||||||
Disclosure of detailed information about borrowings | ||||||
Total borrowings | 5,324,000 | 5,305,000 | ||||
Undrawn committed revolving borrowing facility | ||||||
Disclosure of detailed information about borrowings | ||||||
Undrawn committed revolving borrowings facility | 125,000,000 | |||||
Incremental borrowings | £ 25,000,000 | |||||
Amount drawn down from borrowing facilities | £ 0 | £ 0 | ||||
Fixed interest rate | Senior secured notes | ||||||
Disclosure of detailed information about borrowings | ||||||
Borrowings, interest rate | 3.79% | 3.79% | ||||
Floating interest rate | Secured term loan facility | ||||||
Disclosure of detailed information about borrowings | ||||||
Borrowings, interest rate basis | US dollar LIBOR | |||||
Floating interest rate | Secured bank loan | ||||||
Disclosure of detailed information about borrowings | ||||||
Borrowings, interest rate basis | LIBOR | |||||
Adjustment to interest rate basis | 1.00% | 1.00% | ||||
Floating interest rate | Undrawn committed revolving borrowing facility | ||||||
Disclosure of detailed information about borrowings | ||||||
Borrowings, interest rate basis | LIBOR or EURIBOR | |||||
Minimum | Senior secured notes | ||||||
Disclosure of detailed information about borrowings | ||||||
Percentage aggregate principal amount debt redemption | 5.00% | |||||
Minimum | Floating interest rate | Secured term loan facility | ||||||
Disclosure of detailed information about borrowings | ||||||
Adjustment to interest rate basis | 1.25% | 1.25% | ||||
Minimum | Floating interest rate | Undrawn committed revolving borrowing facility | ||||||
Disclosure of detailed information about borrowings | ||||||
Adjustment to interest rate basis | 1.25% | 1.25% | ||||
Maximum | Senior secured notes | ||||||
Disclosure of detailed information about borrowings | ||||||
Percentage aggregate principal amount debt redemption | 100.00% | |||||
Maximum | Floating interest rate | Secured term loan facility | ||||||
Disclosure of detailed information about borrowings | ||||||
Adjustment to interest rate basis | 1.75% | 1.75% | ||||
Maximum | Floating interest rate | Undrawn committed revolving borrowing facility | ||||||
Disclosure of detailed information about borrowings | ||||||
Adjustment to interest rate basis | 1.75% | 1.75% | ||||
Not later than one month | Secured bank loan | ||||||
Disclosure of detailed information about borrowings | ||||||
Total borrowings | £ 106,000 | |||||
Not later than thirteen months | Secured bank loan | ||||||
Disclosure of detailed information about borrowings | ||||||
Total borrowings | 525,000 | |||||
Maturity date 9 July 2018 | Secured bank loan | ||||||
Disclosure of detailed information about borrowings | ||||||
Total borrowings | £ 3,644,000 | £ 3,644,000 |
Borrowings - Net debt (Details)
Borrowings - Net debt (Details) - GBP (£) £ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Net debt reconciliation | ||
Net debt at beginning of the period | £ 213,087 | £ 260,898 |
Net debt cash flow adjustment | 31,337 | (69,662) |
Net debt non-cash adjustment | 9,322 | 21,851 |
Net debt at end of the period | 253,746 | 213,087 |
Non-current borrowings | ||
Net debt reconciliation | ||
Net debt at beginning of the period | 497,630 | 484,528 |
Net debt non-cash adjustment | (10,936) | 13,102 |
Net debt at end of the period | 486,694 | 497,630 |
Current borrowings | ||
Net debt reconciliation | ||
Net debt at beginning of the period | 5,724 | 5,564 |
Net debt cash flow adjustment | (17,083) | (16,660) |
Net debt non-cash adjustment | 20,433 | 16,820 |
Net debt at end of the period | 9,074 | 5,724 |
Cash and cash equivalents | ||
Net debt reconciliation | ||
Net debt at beginning of the period | (290,267) | (229,194) |
Net debt cash flow adjustment | 48,420 | (53,002) |
Net debt non-cash adjustment | (175) | (8,071) |
Net debt at end of the period | £ (242,022) | £ (290,267) |
Deferred tax - Analysis of the
Deferred tax - Analysis of the deferred tax (Details) - GBP (£) £ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Disclosure of temporary difference, unused tax losses and unused tax credits | |||
Deferred tax asset | £ (63,974) | £ (142,107) | |
Deferred tax liabilities | 28,559 | 20,828 | |
Deferred tax liability (asset) | (35,415) | (121,279) | £ (131,096) |
US | |||
Disclosure of temporary difference, unused tax losses and unused tax credits | |||
Deferred tax asset | (63,974) | (142,107) | |
Deferred tax liability (asset) | (63,974) | (142,107) | (145,460) |
UK | |||
Disclosure of temporary difference, unused tax losses and unused tax credits | |||
Deferred tax liabilities | 28,559 | 20,828 | |
Deferred tax liability (asset) | £ 28,559 | £ 20,828 | £ 14,364 |
Deferred tax - Rollforward (Det
Deferred tax - Rollforward (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | £ (121,279,000) | £ (131,096,000) | |
Expensed/(credited) to income statement | 63,425,000 | (7,115,000) | |
(Credited)/expensed to other comprehensive income | 21,892,000 | 16,932,000 | |
Reclassification to tax receivable | 547,000 | ||
Deferred tax liability (asset) at end of period | (35,415,000) | (121,279,000) | £ (131,096,000) |
US | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | (142,107,000) | (145,460,000) | |
Expensed/(credited) to income statement | 59,966,000 | 1,589,000 | (1,160,000) |
(Credited)/expensed to other comprehensive income | 17,620,000 | 1,764,000 | (10,660,000) |
Reclassification to tax receivable | 547,000 | ||
Deferred tax liability (asset) at end of period | (63,974,000) | (142,107,000) | (145,460,000) |
Unrecognised deferred tax assets | 19,610,000 | 0 | |
US | Foreign tax credits | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | (40,047,000) | (26,776,000) | |
Expensed/(credited) to income statement | 13,504,000 | (14,354,000) | |
(Credited)/expensed to other comprehensive income | (4,271,000) | 1,083,000 | |
Deferred tax liability (asset) at end of period | (30,814,000) | (40,047,000) | (26,776,000) |
US | Accelerated tax depreciation | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at end of period | 6,704,000 | ||
US | Net operating losses | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | (1,070,000) | (21,658,000) | |
Expensed/(credited) to income statement | (2,096,000) | 20,588,000 | |
(Credited)/expensed to other comprehensive income | (233,000) | ||
Deferred tax liability (asset) at end of period | (3,399,000) | (1,070,000) | (21,658,000) |
US | Unrealized foreign exchange and derivative movements | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | (32,859,000) | (27,838,000) | |
Expensed/(credited) to income statement | 11,931,000 | (5,702,000) | |
(Credited)/expensed to other comprehensive income | 22,124,000 | 681,000 | |
Deferred tax liability (asset) at end of period | 1,196,000 | (32,859,000) | (27,838,000) |
US | Intangible assets | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | (47,247,000) | (60,591,000) | |
Expensed/(credited) to income statement | 26,026,000 | 13,344,000 | |
Deferred tax liability (asset) at end of period | (21,221,000) | (47,247,000) | (60,591,000) |
US | Deferred revenue | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | (15,459,000) | (5,163,000) | |
Expensed/(credited) to income statement | 7,732,000 | (10,296,000) | |
Deferred tax liability (asset) at end of period | (7,727,000) | (15,459,000) | (5,163,000) |
US | Other | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | (5,425,000) | (3,434,000) | |
Expensed/(credited) to income statement | 2,869,000 | (1,991,000) | |
Reclassification to tax receivable | 547,000 | ||
Deferred tax liability (asset) at end of period | (2,009,000) | (5,425,000) | (3,434,000) |
US | Bad debts disallowed | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at end of period | (2,017,000) | ||
US | Provision disallowed | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at end of period | (3,747,000) | ||
US | Upwards revaluation of tax bases | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at end of period | (2,830,000) | ||
UK | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | 20,828,000 | 14,364,000 | |
Expensed/(credited) to income statement | 3,459,000 | (8,704,000) | 5,234,000 |
(Credited)/expensed to other comprehensive income | 4,272,000 | 15,168,000 | (8,181,000) |
Deferred tax liability (asset) at end of period | 28,559,000 | 20,828,000 | 14,364,000 |
Unrecognised deferred tax assets | 0 | 0 | |
UK | Accelerated tax depreciation | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | 836,000 | 684,000 | |
Expensed/(credited) to income statement | (31,000) | 152,000 | |
Deferred tax liability (asset) at end of period | 805,000 | 836,000 | 684,000 |
UK | Rolled over gain on player disposal | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | 5,176,000 | 3,258,000 | |
Expensed/(credited) to income statement | 2,213,000 | 1,918,000 | |
Deferred tax liability (asset) at end of period | 7,389,000 | 5,176,000 | 3,258,000 |
UK | Non qualifying property | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | 11,901,000 | 12,605,000 | |
Expensed/(credited) to income statement | (3,000) | (704,000) | |
Deferred tax liability (asset) at end of period | 11,898,000 | 11,901,000 | 12,605,000 |
UK | Property fair value adjustment | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | 13,576,000 | 14,829,000 | |
Expensed/(credited) to income statement | (429,000) | (1,253,000) | |
Deferred tax liability (asset) at end of period | 13,147,000 | 13,576,000 | 14,829,000 |
UK | Net operating losses | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | (27,000) | (1,795,000) | |
Expensed/(credited) to income statement | (85,000) | 1,768,000 | |
Deferred tax liability (asset) at end of period | (112,000) | (27,000) | (1,795,000) |
UK | Other | |||
Deferred tax asset liability | |||
Deferred tax liability (asset) at beginning of period | (10,634,000) | (15,217,000) | |
Expensed/(credited) to income statement | 1,794,000 | (10,585,000) | |
(Credited)/expensed to other comprehensive income | 4,272,000 | 15,168,000 | |
Deferred tax liability (asset) at end of period | £ (4,568,000) | £ (10,634,000) | £ (15,217,000) |
Cash generated from operatio111
Cash generated from operations (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash generated from operations | |||
Profit before tax | £ 26,097,000 | £ 56,538,000 | £ 48,833,000 |
Adjustments for: | |||
Depreciation | 10,755,000 | 10,228,000 | 10,079,000 |
Impairment (reversal)/charge | (4,753,000) | 6,693,000 | |
Amortization | 138,380,000 | 124,434,000 | 88,009,000 |
(Profit)/loss on disposal of intangible assets | (18,119,000) | (10,926,000) | 9,786,000 |
Net finance costs | 18,038,000 | 24,277,000 | 20,017,000 |
(Profit)/loss on disposal of property, plant and equipment | (81,000) | 43,000 | 126,000 |
Equity-settled share-based payments | 2,915,000 | 2,187,000 | 1,795,000 |
Foreign exchange losses/(gains) on operating activities | 994,000 | 2,646,000 | (7,660,000) |
Reclassified from hedging reserve | 14,395,000 | 4,765,000 | 1,382,000 |
Changes in working capital: | |||
Inventories | 221,000 | (711,000) | (926,000) |
Trade and other receivables | (72,027,000) | 17,525,000 | (31,741,000) |
Trade and other payables and deferred revenue | (1,964,000) | 25,506,000 | 54,471,000 |
Cash generated from operations | 119,604,000 | 251,759,000 | 200,864,000 |
Increase/(reduction) in changes to trade and other receivables | 18,374,000 | (3,224,000) | (20,676,000) |
Increase/(reduction) in changes in trade and other payables and deferred revenue | £ 74,088,000 | £ (26,428,000) | £ (26,838,000) |
Contingencies (Details)
Contingencies (Details) | Jun. 30, 2018GBP (£) |
Contingencies | |
Estimated financial effect of contingent liabilities | £ 0 |
Operating lease arrangements -
Operating lease arrangements - Aggregate minimum lease payments (Details) - GBP (£) £ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Operating lease arrangements by lessee | ||
Minimum lease payments payable under non-cancellable operating lease | £ 8,361 | £ 10,781 |
Less than 1 year | ||
Operating lease arrangements by lessee | ||
Minimum lease payments payable under non-cancellable operating lease | 1,756 | 2,256 |
Later than 1 year and no later than 5 years | ||
Operating lease arrangements by lessee | ||
Minimum lease payments payable under non-cancellable operating lease | 2,739 | 4,557 |
Over 5 years | ||
Operating lease arrangements by lessee | ||
Minimum lease payments payable under non-cancellable operating lease | £ 3,866 | £ 3,968 |
Operating lease arrangements114
Operating lease arrangements - Aggregate minimum rentals receivable (Details) - GBP (£) £ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Operating lease arrangements by lessor | ||
Future minimum lease rentals receivable under non-cancellable operating lease | £ 13,694 | £ 15,803 |
Less than 1 year | ||
Operating lease arrangements by lessor | ||
Future minimum lease rentals receivable under non-cancellable operating lease | 1,278 | 1,257 |
Later than 1 year and no later than 5 years | ||
Operating lease arrangements by lessor | ||
Future minimum lease rentals receivable under non-cancellable operating lease | 2,866 | 4,617 |
Over 5 years | ||
Operating lease arrangements by lessor | ||
Future minimum lease rentals receivable under non-cancellable operating lease | £ 9,550 | £ 9,929 |
Capital commitments and cont115
Capital commitments and contingent fees - Capital commitment (Details) - GBP (£) | Jun. 30, 2018 | Jun. 30, 2017 |
Property, plant and equipment | ||
Capital commitments | ||
Capital commitments | £ 4,100,000 | £ 6,800,000 |
Other intangible assets | ||
Capital commitments | ||
Capital commitments | £ 0 | £ 0 |
Capital commitments and cont116
Capital commitments and contingent fees - Contingent fees (Details) - GBP (£) | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure of contingent fee | ||
Additional fees payable, first team squad | £ 58,170,000 | £ 38,133,000 |
Additional fees payable, other | 8,241,000 | 6,500,000 |
Additional fees payable | 66,411,000 | 44,633,000 |
Probable effect of contingent assets | 2,400,000 | 800,000 |
MUFC appearances/team success/new contract | ||
Disclosure of contingent fee | ||
Additional fees payable, first team squad | 46,827,000 | 26,845,000 |
Additional fees payable, other | 8,194,000 | 6,453,000 |
Additional fees payable | 55,021,000 | 33,298,000 |
International appearances | ||
Disclosure of contingent fee | ||
Additional fees payable, first team squad | 11,343,000 | 11,288,000 |
Additional fees payable, other | 47,000 | 47,000 |
Additional fees payable | £ 11,390,000 | £ 11,335,000 |
Pension arrangements - Defined
Pension arrangements - Defined benefit scheme (Details) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2018GBP (£)item | Jun. 30, 2017GBP (£) | Jun. 30, 2016GBP (£) | Aug. 31, 2017GBP (£) | |
Pension arrangements | |||||
Present value of additional contributions Group is expected to pay to remedy revised deficit | £ 1,917,000 | ||||
Football League Pension and Life Assurance Scheme | |||||
Pension arrangements | |||||
Number of participating employers | item | 92 | ||||
Total deficit on actuarial valuation | £ 30,400,000 | ||||
Contribution to current accrual of benefits | £ 0 | ||||
Present value of additional contributions Group is expected to pay to remedy revised deficit | 1,917,000 | £ 0 | £ 0 | ||
Total contributions paid by Group based on actuarial valuation | 459,000 | ||||
Percentage of increase in contributions | 5.00% | ||||
Present value of outstanding contributions to defined benefit plan | 2,638,000 | 1,146,000 | |||
Football League Pension and Life Assurance Scheme | Less than 1 year | |||||
Pension arrangements | |||||
Present value of outstanding contributions to defined benefit plan | 434,000 | 425,000 | |||
Football League Pension and Life Assurance Scheme | Due after 1 year | |||||
Pension arrangements | |||||
Present value of outstanding contributions to defined benefit plan | £ 2,204,000 | £ 721,000 |
Pension arrangements - Defin118
Pension arrangements - Defined contribution schemes (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension arrangements | |||
Contributions to defined contribution pension arrangements | £ 2,686,000 | £ 2,435,000 | £ 2,427,000 |
Amount of contributions due that had not been paid to pension schemes | £ 295,000 | £ 284,000 |
Financial risk management - Mar
Financial risk management - Market risk (Details) € in Thousands | Jun. 30, 2018EUR (€)€ / £ | Jun. 30, 2017EUR (€)€ / £ | Jun. 30, 2018EUR (€) | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€)$ / £ | Jun. 30, 2018EUR (€)€ / £ | Jun. 30, 2018EUR (€) | Jun. 30, 2018GBP (£) | Jun. 30, 2017EUR (€) | Jun. 30, 2017USD ($) | Jun. 30, 2017EUR (€)$ / £ | Jun. 30, 2017EUR (€)€ / £ | Jun. 30, 2017GBP (£) | Jun. 30, 2016EUR (€) | Jun. 30, 2016USD ($) | Jun. 30, 2016$ / £ | Jun. 30, 2016€ / £ | Jun. 30, 2016GBP (£) | Jun. 30, 2018USD ($) | Jun. 30, 2018GBP (£) | Jun. 30, 2017USD ($) | Jun. 30, 2017GBP (£) |
Details of currency and interest rate risks | ||||||||||||||||||||||
Revenue | £ 590,022,000 | £ 581,204,000 | £ 515,345,000 | |||||||||||||||||||
Forward foreign currency contracts outstanding at the balance sheet date | ||||||||||||||||||||||
Average exchange rate | 1.3465 | 1.1327 | 1.2774 | 1.1663 | 1.4774 | 1.3363 | ||||||||||||||||
Derivative financial instruments, assets | £ 5,966,000 | £ 4,884,000 | ||||||||||||||||||||
Derivative financial instruments, liabilities | (1,908,000) | |||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Derivative financial assets | 5,966,000 | 4,884,000 | ||||||||||||||||||||
Embedded foreign exchange derivatives | ||||||||||||||||||||||
Forward foreign currency contracts outstanding at the balance sheet date | ||||||||||||||||||||||
Derivative financial instruments, assets | 624,000 | 1,714,000 | ||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Derivative financial assets | 624,000 | 1,714,000 | ||||||||||||||||||||
Buy Euro | Forward foreign currency contracts | ||||||||||||||||||||||
Details of currency and interest rate risks | ||||||||||||||||||||||
Principal amount / Notional amount | € (46,000) | € (115,283) | € (46,000) | € (46,000) | € (46,000) | € (46,000) | € (115,283) | € (115,283) | € (115,283) | (39,919,000) | (98,980,000) | |||||||||||
Forward foreign currency contracts outstanding at the balance sheet date | ||||||||||||||||||||||
Average exchange rate | € / £ | 1.1523 | 1.1647 | ||||||||||||||||||||
Principal amount / Notional amount | € (46,000) | € (115,283) | (46,000) | (46,000) | (46,000) | € (46,000) | (115,283) | (115,283) | (115,283) | (39,919,000) | (98,980,000) | |||||||||||
Derivative financial instruments, assets | 852,000 | 3,170,000 | ||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Derivative financial assets | 852,000 | 3,170,000 | ||||||||||||||||||||
Sell Euro | Forward foreign currency contracts | ||||||||||||||||||||||
Details of currency and interest rate risks | ||||||||||||||||||||||
Principal amount / Notional amount | € 10,000 | 10,000 | 10,000 | 10,000 | 7,540,000 | |||||||||||||||||
Forward foreign currency contracts outstanding at the balance sheet date | ||||||||||||||||||||||
Average exchange rate | € / £ | 1.3262 | |||||||||||||||||||||
Principal amount / Notional amount | € 10,000 | 10,000 | 10,000 | 10,000 | 7,540,000 | |||||||||||||||||
Derivative financial instruments, liabilities | (1,253,000) | |||||||||||||||||||||
Interest rate risk | ||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Percentage of reasonably possible change in risk assumption | 1.00% | |||||||||||||||||||||
Euro | ||||||||||||||||||||||
Details of currency and interest rate risks | ||||||||||||||||||||||
Revenue | € | 43,400 | 47,200 | € 48,100 | |||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Monetary assets in foreign currency | € | 82,073 | 70,457 | 82,073 | 82,073 | 82,073 | € 82,073 | 70,457 | 70,457 | 70,457 | |||||||||||||
Monetary liabilities in foreign currency | € | (154,951) | (185,960) | (154,951) | (154,951) | (154,951) | (154,951) | (185,960) | (185,960) | (185,960) | |||||||||||||
Monetary assets (liabilities) in foreign currency, net | € | € (72,878) | € (115,503) | € (72,878) | € (72,878) | € (72,878) | € (72,878) | € (115,503) | € (115,503) | € (115,503) | |||||||||||||
Euro | Currency risk | ||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Percentage of reasonably possible change in risk assumption | 10.00% | |||||||||||||||||||||
Increase (decrease) in post-tax profit due to reasonably possible strengthening of GBP against currency | 4,200,000 | 6,000,000 | ||||||||||||||||||||
Increase (decrease) in equity due to reasonably possible strengthening of GBP against currency | 4,200,000 | 6,000,000 | ||||||||||||||||||||
Increase (decrease) in post-tax profit due to reasonably possible weakening of GBP against currency | (5,200,000) | (7,300,000) | ||||||||||||||||||||
Increase (decrease) in equity due to reasonably possible weakening of GBP against currency | (5,200,000) | (7,300,000) | ||||||||||||||||||||
US dollar | ||||||||||||||||||||||
Details of currency and interest rate risks | ||||||||||||||||||||||
Revenue | $ | $ 164,400,000 | $ 157,900,000 | $ 182,600,000 | |||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Monetary assets in foreign currency | $ | $ 292,168,000 | $ 244,826,000 | ||||||||||||||||||||
Monetary liabilities in foreign currency | $ | (650,531,000) | (654,507,000) | ||||||||||||||||||||
Monetary assets (liabilities) in foreign currency, net | $ | (358,363,000) | (409,681,000) | ||||||||||||||||||||
US dollar | Currency risk | ||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Percentage of reasonably possible change in risk assumption | 10.00% | |||||||||||||||||||||
Increase (decrease) in post-tax profit due to reasonably possible strengthening of GBP against currency | 17,800,000 | 18,600,000 | ||||||||||||||||||||
Increase (decrease) in equity due to reasonably possible strengthening of GBP against currency | 17,800,000 | 18,600,000 | ||||||||||||||||||||
Increase (decrease) in post-tax profit due to reasonably possible weakening of GBP against currency | £ (21,700,000) | £ (22,800,000) | ||||||||||||||||||||
Increase (decrease) in equity due to reasonably possible weakening of GBP against currency | £ (21,700,000) | £ (22,800,000) | ||||||||||||||||||||
Secured term loan facility and senior secured notes | ||||||||||||||||||||||
Details of currency and interest rate risks | ||||||||||||||||||||||
Principal amount / Notional amount | $ | 650,000,000 | 650,000,000 | ||||||||||||||||||||
Forward foreign currency contracts outstanding at the balance sheet date | ||||||||||||||||||||||
Principal amount / Notional amount | $ | $ 650,000,000 | $ 650,000,000 |
Financial risk management - Cre
Financial risk management - Credit risk (Details) - GBP (£) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Details of credit risk | ||
Number of days for payment that specific agreements may go beyond | 30 days | |
Trade receivables | £ 123,797,000 | £ 76,606,000 |
Transfer fees receivable | 29,214,000 | 46,343,000 |
Cost / gross value | ||
Details of credit risk | ||
Trade receivables | £ 133,505,000 | 90,719,000 |
Minimum | ||
Details of credit risk | ||
Credit term for other sales | 14 days | |
Maximum | ||
Details of credit risk | ||
Credit term for other sales | 30 days | |
Neither past due nor impaired | ||
Details of credit risk | ||
Trade receivables | £ 111,912,000 | 54,501,000 |
Past due but not impaired | ||
Details of credit risk | ||
Trade receivables | 11,885,000 | 22,104,000 |
Impaired and fully provided for | Cost / gross value | ||
Details of credit risk | ||
Trade receivables | 9,708,000 | 14,113,000 |
Up to 3 months past due | Past due but not impaired | ||
Details of credit risk | ||
Trade receivables | 11,462,000 | 20,670,000 |
Up to 3 months past due | Impaired and fully provided for | Cost / gross value | ||
Details of credit risk | ||
Trade receivables | 2,772,000 | 5,519,000 |
Over 3 months past due | Past due but not impaired | ||
Details of credit risk | ||
Trade receivables | 423,000 | 1,434,000 |
Over 3 months past due | Impaired and fully provided for | Cost / gross value | ||
Details of credit risk | ||
Trade receivables | £ 6,936,000 | £ 8,594,000 |
Financial risk management - Mov
Financial risk management - Movements on provision for impairment (Details) - Trade receivables - GBP (£) £ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Movements on the provision for impairment of trade receivables | ||
Brought forward | £ 14,113 | £ 6,451 |
Provision for receivables impairment | 160 | 336 |
Receivables provided subsequently written off | (6,943) | |
Receivables offset against deferred revenue | 2,591 | 6,807 |
Foreign exchange (gains)/losses on retranslation | (213) | 519 |
Carried forward | £ 9,708 | £ 14,113 |
Financial risk management - Liq
Financial risk management - Liquidity risk (Details) - GBP (£) | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Details of liquidity risk | ||||
Cash and cash equivalents | £ 242,022,000 | £ 290,267,000 | £ 229,194,000 | £ 155,752,000 |
Less than 1 year | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 272,749,000 | 191,636,000 | ||
Financial liabilities, undiscounted cash flows | 271,149,000 | 192,836,000 | ||
Less than 1 year | Trade and other payables excluding social security and other taxes | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 250,300,000 | 172,173,000 | ||
Less than 1 year | Borrowings | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 22,449,000 | 19,463,000 | ||
Less than 1 year | Cash outflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | 2,453,000 | |||
Less than 1 year | Cash inflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | (1,600,000) | (1,253,000) | ||
Between 1 and 2 years | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 86,550,000 | 94,025,000 | ||
Financial liabilities, undiscounted cash flows | 85,802,000 | 94,930,000 | ||
Between 1 and 2 years | Trade and other payables excluding social security and other taxes | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 67,858,000 | 71,282,000 | ||
Between 1 and 2 years | Borrowings | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 18,692,000 | 22,743,000 | ||
Between 1 and 2 years | Cash outflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | 905,000 | |||
Between 1 and 2 years | Cash inflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | (748,000) | |||
Between 2 and 5 years | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 96,355,000 | 52,958,000 | ||
Financial liabilities, undiscounted cash flows | 94,110,000 | 53,239,000 | ||
Between 2 and 5 years | Trade and other payables excluding social security and other taxes | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 40,280,000 | 14,981,000 | ||
Between 2 and 5 years | Borrowings | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 56,075,000 | 37,977,000 | ||
Between 2 and 5 years | Cash outflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | 281,000 | |||
Between 2 and 5 years | Cash inflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | (2,245,000) | |||
Over 5 years | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 554,639,000 | 601,218,000 | ||
Financial liabilities, undiscounted cash flows | 553,891,000 | 601,405,000 | ||
Over 5 years | Trade and other payables excluding social security and other taxes | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 191,000 | |||
Over 5 years | Borrowings | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 554,448,000 | 601,218,000 | ||
Over 5 years | Cash outflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | £ 187,000 | |||
Over 5 years | Cash inflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | £ (748,000) |
Financial risk management - Hed
Financial risk management - Hedging activities (Details) £ in Thousands, $ in Thousands | Jun. 30, 2018USD ($) | Jun. 30, 2018$ / £ | Jun. 30, 2018€ / £ | Jun. 30, 2018GBP (£) | Jun. 30, 2017USD ($) | Jun. 30, 2017$ / £ | Jun. 30, 2017€ / £ | Jun. 30, 2017GBP (£) | Jun. 30, 2016$ / £ | Jun. 30, 2016€ / £ | Jun. 30, 2016GBP (£) |
Financial risk management activities | |||||||||||
Net debt | £ | £ 253,746 | £ 213,087 | £ 260,898 | ||||||||
Closing exchange rate | 1.3194 | 1.1309 | 1.2988 | 1.1379 | 1.3332 | 1.2009 | |||||
US dollar | |||||||||||
Financial risk management activities | |||||||||||
Net debt | $ 521,500 | $ 524,700 | |||||||||
Hedged future USD revenues | (307,019) | (299,533) | |||||||||
Unhedged USD borrowings | 214,481 | 225,167 | |||||||||
Borrowings | US dollar | |||||||||||
Financial risk management activities | |||||||||||
Net debt | 650,000 | 650,000 | |||||||||
Cash and cash equivalents | |||||||||||
Financial risk management activities | |||||||||||
Net debt | £ | £ (242,022) | £ (290,267) | £ (229,194) | ||||||||
Cash and cash equivalents | US dollar | |||||||||||
Financial risk management activities | |||||||||||
Net debt | $ (128,500) | $ (125,300) |
Financial risk management - Swa
Financial risk management - Swaps (Details) - Interest rate swap $ in Thousands | Jun. 30, 2018USD ($) | Jun. 30, 2018GBP (£) | Jun. 30, 2017USD ($) | Jun. 30, 2017GBP (£) |
Financial risk management activities | ||||
Current hedged principal value of loan outstanding | $ | $ 150,000 | $ 225,000 | ||
Fair value of interest rate swaps, asset | £ 4,490,000 | |||
Fair value of interest rate swaps, liability | £ 655,000 | |||
Long position | ||||
Financial risk management activities | ||||
Rate paid | 2.032% | 2.032% | 2.032% | 2.032% |
Financial risk management - 125
Financial risk management - Movements on the hedging reserve (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Movements on the hedging reserve | |||
Reserve of cash flow hedges, beginning balance | £ (31,724,000) | £ (32,989,000) | £ 4,729,000 |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges | |||
Foreign exchange differences on hedged currency risks | 6,338,000 | (11,874,000) | (49,808,000) |
Reclassified to income statement | 14,395,000 | 4,765,000 | 4,047,000 |
Fair value movement | 5,145,000 | 9,055,000 | (12,264,000) |
Tax impact | (21,892,000) | (681,000) | 20,307,000 |
Movement recognized in other comprehensive income (loss) | 3,986,000 | 1,265,000 | (37,718,000) |
Reserve of cash flow hedges, ending balance | (27,738,000) | (31,724,000) | (32,989,000) |
Movements on hedging reserve before tax | |||
Reserve of cash flow hedges, before tax, beginning balance | (48,807,000) | (50,753,000) | 7,272,000 |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, before tax | |||
Foreign exchange differences on hedged currency risks | 6,338,000 | (11,874,000) | (49,808,000) |
Reclassified to income statement | 14,395,000 | 4,765,000 | 4,047,000 |
Fair value movement | 5,145,000 | 9,055,000 | (12,264,000) |
Movement recognized in other comprehensive income (loss) | 25,878,000 | 1,946,000 | (58,025,000) |
Reserve of cash flow hedges, before tax, ending balance | (22,929,000) | (48,807,000) | (50,753,000) |
Movements on hedging reserve tax | |||
Reserve of cash flow hedges, tax, beginning balance | 17,083,000 | 17,764,000 | (2,543,000) |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, tax | |||
Movement recognized in other comprehensive income (loss) | (21,892,000) | (681,000) | 20,307,000 |
Reserve of cash flow hedges, tax, ending balance | (4,809,000) | 17,083,000 | 17,764,000 |
Currency risk | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges | |||
Foreign exchange differences on hedged currency risks | 6,522,000 | (11,998,000) | (49,808,000) |
Reclassified to income statement | 14,272,000 | 5,040,000 | 1,382,000 |
Movements on hedging reserve before tax | |||
Reserve of cash flow hedges, before tax, beginning balance | (48,001,000) | (41,043,000) | 7,383,000 |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, before tax | |||
Foreign exchange differences on hedged currency risks | 6,522,000 | (11,998,000) | (49,808,000) |
Reclassified to income statement | 14,272,000 | 5,040,000 | 1,382,000 |
Movement recognized in other comprehensive income (loss) | 20,794,000 | (6,958,000) | (48,426,000) |
Reserve of cash flow hedges, before tax, ending balance | £ (27,207,000) | (48,001,000) | (41,043,000) |
Currency risk | US dollar | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, tax | |||
Percentage of reasonably possible change in risk assumption | 10.00% | ||
Increase (decrease) in reserve of cash flow hedges before tax due to reasonably possible strengthening of GBP against currency | £ 21,154,000 | 20,966,000 | |
Increase (decrease) in reserve of cash flow hedges before tax due to reasonably possible weakening of GBP against currency | (25,855,000) | (25,625,000) | |
Interest rate risk | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges | |||
Reclassified to income statement | 2,665,000 | ||
Fair value movement | 5,145,000 | 9,055,000 | (12,264,000) |
Movements on hedging reserve before tax | |||
Reserve of cash flow hedges, before tax, beginning balance | (655,000) | (9,710,000) | (111,000) |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, before tax | |||
Reclassified to income statement | 2,665,000 | ||
Fair value movement | 5,145,000 | 9,055,000 | (12,264,000) |
Movement recognized in other comprehensive income (loss) | 5,145,000 | 9,055,000 | (9,599,000) |
Reserve of cash flow hedges, before tax, ending balance | £ 4,490,000 | (655,000) | (9,710,000) |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, tax | |||
Percentage of reasonably possible change in risk assumption | 1.00% | ||
Other price risk | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges | |||
Foreign exchange differences on hedged currency risks | £ (184,000) | 124,000 | |
Reclassified to income statement | 123,000 | (275,000) | |
Movements on hedging reserve before tax | |||
Reserve of cash flow hedges, before tax, beginning balance | (151,000) | 0 | 0 |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, before tax | |||
Foreign exchange differences on hedged currency risks | (184,000) | 124,000 | |
Reclassified to income statement | 123,000 | (275,000) | |
Movement recognized in other comprehensive income (loss) | (61,000) | (151,000) | |
Reserve of cash flow hedges, before tax, ending balance | £ (212,000) | £ (151,000) | £ 0 |
Financial risk management - Cap
Financial risk management - Capital risk management (Details) - GBP (£) £ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Financial risk management | ||
Borrowings | £ 495,768 | £ 503,354 |
Financial risk management - Fai
Financial risk management - Fair value estimation (Details) - Level 2 of fair value hierarchy [member] - GBP (£) £ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Capital risk management and fair value estimation | ||
Financial assets (liabilities), at fair value | £ 5,966 | £ 2,976 |
Derivatives used for hedging: | Interest rate swap | ||
Capital risk management and fair value estimation | ||
Financial liabilities, at fair value | (655) | |
At fair value through profit and loss: | Forward foreign currency contracts | ||
Capital risk management and fair value estimation | ||
Financial liabilities, at fair value | (1,253) | |
Embedded foreign exchange derivatives | At fair value through profit and loss | ||
Capital risk management and fair value estimation | ||
Financial assets, at fair value | 624 | 1,714 |
Forward foreign currency contracts | At fair value through profit and loss | ||
Capital risk management and fair value estimation | ||
Financial assets, at fair value | 852 | £ 3,170 |
Interest rate swap | Derivatives used for hedging: | ||
Capital risk management and fair value estimation | ||
Financial assets, at fair value | £ 4,490 |
Related party transactions (Det
Related party transactions (Details) - Trusts and other entities controlled by descendants of Malcolm Glazer | Jun. 30, 2018item |
Related party transactions | |
Number of lineal descendants of Mr. Malcolm Glazer | 6 |
Voting power on outstanding capital stock (as a percent) | 97.07% |
Class A ordinary shares | |
Related party transactions | |
Ownership interest on issued and outstanding ordinary shares (as a percent) | 7.45% |
Class B ordinary shares | |
Related party transactions | |
Ownership interest on issued and outstanding ordinary shares (as a percent) | 100.00% |
Subsidiaries (Details)
Subsidiaries (Details) | Jun. 30, 2018 |
Red Football Finance Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
Red Football Holdings Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
Red Football Shareholder Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
Red Football Joint Venture Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
Red Football Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
Red Football Junior Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
Manchester United Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
Alderley Urban Investments Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
Manchester United Commercial Enterprises (Ireland) Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
Manchester United Football Club Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
Manchester United Women's Football Club Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
Manchester United Interactive Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
MU 099 Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
MU Commercial Holdings Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
MU Commercial Holdings Junior Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
MU Finance Limited (formerly known as MU Finance plc) | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
MU RAML Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
MUTV Limited | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
RAML USA LLC | |
Subsidiaries | |
Percentage of ownership interest | 100.00% |
Events after the balance she130
Events after the balance sheet date (Details) - GBP (£) | 3 Months Ended | 12 Months Ended | |||
Sep. 28, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Events after the balance sheet date | |||||
Proceeds from disposal of intangible assets, net of associated costs | [1] | £ 46,865,000 | £ 51,871,000 | £ 38,357,000 | |
Net book value of disposals of intangible assets | 27,201,000 | 37,353,000 | |||
Additions or extensions of intangible assets | 247,677,000 | 208,944,000 | |||
Registrations | |||||
Events after the balance sheet date | |||||
Net book value of disposals of intangible assets | 27,201,000 | 37,353,000 | |||
Additions or extensions of intangible assets | £ 243,182,000 | £ 205,091,000 | |||
Disposal of playing registrations | Registrations | |||||
Events after the balance sheet date | |||||
Proceeds from disposal of intangible assets, net of associated costs | £ 19,920,000 | ||||
Net book value of disposals of intangible assets | 1,297,000 | ||||
Solidarity contributions, sell-on fees and contingent consideration receivable | 3,557,000 | ||||
Acquisition or extension of playing registrations | Registrations | |||||
Events after the balance sheet date | |||||
Additions or extensions of intangible assets | 2,388,000 | ||||
Sell-on fees and contingent consideration payable | £ 520,000 | ||||
Due term of payments | 5 years | ||||
[1] | Payments and proceeds for intangible assets primarily relate to player and key football management staff registrations. When acquiring or selling players’ and key football management staff registrations it is normal industry practice for payments terms to spread over more than one year and consideration may also include non-cash items. Details of registrations additions and disposals are provided in note 15. Trade payables in relation to the acquisition of registrations at the balance sheet date are provided in note 23. Trade receivables in relation to the disposal of registrations at the balance sheet date are provided in note 19. |
Additional information-Finan131
Additional information-Financial Statement Schedule I (Details) £ / shares in Units, £ in Thousands | 12 Months Ended | |||||
Jun. 30, 2018GBP (£)$ / shares | Jun. 30, 2018GBP (£)£ / shares | Jun. 30, 2017GBP (£)$ / shares | Jun. 30, 2017GBP (£)£ / shares | Jun. 30, 2016$ / shares | Jun. 30, 2016£ / shares | |
Condensed financial information | ||||||
Borrowings | £ 495,768 | £ 495,768 | £ 503,354 | £ 503,354 | ||
Dividends recognised as distributions to owners per share | (per share) | £ 0.18 | £ 0.13 | £ 0.18 | £ 0.14 | $ 0.18 | £ 0.12 |
Parent Company | ||||||
Condensed financial information | ||||||
Dividends recognised as distributions to owners per share | (per share) | £ 0.18 | £ 0.13 | £ 0.18 | £ 0.14 | $ 0.18 | £ 0.12 |
Red Football Limited | ||||||
Condensed financial information | ||||||
Dividend limit in relation to consolidated net income under restricted payment covenants | 50.00% | 50.00% |
Additional information-Finan132
Additional information-Financial Statement Schedule I - Condensed income statement (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed income statement | |||
Revenue | £ 590,022 | £ 581,204 | £ 515,345 |
Exceptional items | (1,917) | 4,753 | (15,135) |
Operating profit/(loss) | 44,135 | 80,815 | 68,850 |
Profit on ordinary activities before tax | 26,097 | 56,538 | 48,833 |
Tax expense | (63,367) | (17,361) | (12,462) |
(Loss)/profit for the year | (37,270) | 39,177 | 36,371 |
Parent Company | |||
Condensed income statement | |||
Operating expenses | (3,423) | (2,013) | (84) |
Operating profit/(loss) | (3,423) | (2,013) | (84) |
Income from shares in group undertakings | 21,982 | 23,295 | 20,084 |
Profit on ordinary activities before tax | 18,559 | 21,282 | 20,000 |
(Loss)/profit for the year | £ 18,559 | £ 21,282 | £ 20,000 |
Additional information-Finan133
Additional information-Financial Statement Schedule I - Condensed balance sheet (Details) - GBP (£) | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Non-current assets | ||||
Total non-current assets | £ 1,132,929,000 | £ 1,135,420,000 | ||
Current assets | ||||
Cash and cash equivalents | 242,022,000 | 290,267,000 | £ 229,194,000 | £ 155,752,000 |
Total current assets | 413,457,000 | 398,854,000 | ||
Total assets | 1,546,386,000 | 1,534,274,000 | ||
Equity | ||||
Share capital | 53,000 | 53,000 | ||
Share premium | 68,822,000 | 68,822,000 | ||
Retained earnings | 135,099,000 | 191,436,000 | ||
Total equity | 425,266,000 | 477,617,000 | 458,282,000 | 477,918,000 |
Current liabilities | ||||
Total current liabilities | 464,511,000 | 414,309,000 | ||
Total equity and liabilities | 1,546,386,000 | 1,534,274,000 | ||
Parent Company | ||||
Non-current assets | ||||
Investment in subsidiaries | 319,265,000 | 319,265,000 | ||
Total non-current assets | 319,265,000 | 319,265,000 | ||
Current assets | ||||
Other receivables | 1,314,000 | 1,123,000 | ||
Cash and cash equivalents | 340,000 | 522,000 | 221,000 | 224,000 |
Total current assets | 1,654,000 | 1,645,000 | ||
Total assets | 320,919,000 | 320,910,000 | ||
Equity | ||||
Share capital | 53,000 | 53,000 | ||
Share premium | 68,822,000 | 68,822,000 | ||
Retained earnings | 247,806,000 | 248,314,000 | ||
Total equity | 316,681,000 | 317,189,000 | £ 317,014,000 | £ 315,303,000 |
Current liabilities | ||||
Other payables | 4,238,000 | 3,721,000 | ||
Total current liabilities | 4,238,000 | 3,721,000 | ||
Total equity and liabilities | £ 320,919,000 | £ 320,910,000 |
Additional information-Finan134
Additional information-Financial Statement Schedule I - Condensed statement of changes in equity (Details) | 12 Months Ended | |||||
Jun. 30, 2018USD ($) | Jun. 30, 2018GBP (£) | Jun. 30, 2017USD ($) | Jun. 30, 2017GBP (£) | Jun. 30, 2016USD ($) | Jun. 30, 2016GBP (£) | |
Condensed statement of changes in equity | ||||||
Equity at beginning of period | £ 477,617,000 | £ 458,282,000 | £ 477,918,000 | |||
(Loss)/profit for the year | (37,270,000) | 39,177,000 | 36,371,000 | |||
Total comprehensive (loss)/income for the year | (33,284,000) | 40,442,000 | (1,347,000) | |||
Equity-settled share-based payments | 2,915,000 | 2,187,000 | 1,795,000 | |||
Dividends paid | $ (29,555,000) | (21,982,000) | $ (29,525,000) | (23,295,000) | $ (29,501,000) | (20,084,000) |
Proceeds from shares issued | 1,000 | |||||
Equity at end of period | 425,266,000 | 477,617,000 | 458,282,000 | |||
Share capital | ||||||
Condensed statement of changes in equity | ||||||
Equity at beginning of period | 53,000 | 52,000 | 52,000 | |||
Proceeds from shares issued | 1,000 | |||||
Equity at end of period | 53,000 | 53,000 | 52,000 | |||
Share premium | ||||||
Condensed statement of changes in equity | ||||||
Equity at beginning of period | 68,822,000 | 68,822,000 | 68,822,000 | |||
Equity at end of period | 68,822,000 | 68,822,000 | 68,822,000 | |||
Retained earnings | ||||||
Condensed statement of changes in equity | ||||||
Equity at beginning of period | 191,436,000 | 173,367,000 | 155,285,000 | |||
(Loss)/profit for the year | (37,270,000) | 39,177,000 | 36,371,000 | |||
Total comprehensive (loss)/income for the year | (37,270,000) | 39,177,000 | 36,371,000 | |||
Equity-settled share-based payments | 2,915,000 | 2,187,000 | 1,795,000 | |||
Dividends paid | (21,982,000) | (23,295,000) | (20,084,000) | |||
Equity at end of period | 135,099,000 | 191,436,000 | 173,367,000 | |||
Parent Company | ||||||
Condensed statement of changes in equity | ||||||
Equity at beginning of period | 317,189,000 | 317,014,000 | 315,303,000 | |||
(Loss)/profit for the year | 18,559,000 | 21,282,000 | 20,000,000 | |||
Total comprehensive (loss)/income for the year | 18,559,000 | 21,282,000 | 20,000,000 | |||
Equity-settled share-based payments | 2,915,000 | 2,187,000 | 1,795,000 | |||
Dividends paid | (21,982,000) | (23,295,000) | (20,084,000) | |||
Proceeds from shares issued | 1,000 | |||||
Equity at end of period | 316,681,000 | 317,189,000 | 317,014,000 | |||
Parent Company | Share capital | ||||||
Condensed statement of changes in equity | ||||||
Equity at beginning of period | 53,000 | 52,000 | 52,000 | |||
Proceeds from shares issued | 1,000 | |||||
Equity at end of period | 53,000 | 53,000 | 52,000 | |||
Parent Company | Share premium | ||||||
Condensed statement of changes in equity | ||||||
Equity at beginning of period | 68,822,000 | 68,822,000 | 68,822,000 | |||
Equity at end of period | 68,822,000 | 68,822,000 | 68,822,000 | |||
Parent Company | Retained earnings | ||||||
Condensed statement of changes in equity | ||||||
Equity at beginning of period | 248,314,000 | 248,140,000 | 246,429,000 | |||
(Loss)/profit for the year | 18,559,000 | 21,282,000 | 20,000,000 | |||
Total comprehensive (loss)/income for the year | 18,559,000 | 21,282,000 | 20,000,000 | |||
Equity-settled share-based payments | 2,915,000 | 2,187,000 | 1,795,000 | |||
Dividends paid | (21,982,000) | (23,295,000) | (20,084,000) | |||
Equity at end of period | £ 247,806,000 | £ 248,314,000 | £ 248,140,000 |
Additional information-Finan135
Additional information-Financial Statement Schedule I - Condensed statement of cash flows (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities | |||
Profit before tax | £ 26,097,000 | £ 56,538,000 | £ 48,833,000 |
Adjustments for: | |||
Equity-settled share-based payments | 2,915,000 | 2,187,000 | 1,795,000 |
Foreign exchange losses on operating activities | 994,000 | 2,646,000 | (7,660,000) |
Changes in working capital: | |||
Other receivables | (72,027,000) | 17,525,000 | (31,741,000) |
Net cash generated from operating activities | 95,250,000 | 227,660,000 | 186,092,000 |
Cash flows from financing activities | |||
Dividends paid | (21,982,000) | (23,295,000) | (20,084,000) |
Net cash used in financing activities | (22,401,000) | (23,690,000) | (20,455,000) |
Net (decrease)/increase in cash and cash equivalents | (48,420,000) | 53,002,000 | 60,817,000 |
Cash and cash equivalents at beginning of year | 290,267,000 | 229,194,000 | 155,752,000 |
Exchange losses on cash and cash equivalents | 175,000 | 8,071,000 | 12,625,000 |
Cash and cash equivalents at end of year | 242,022,000 | 290,267,000 | 229,194,000 |
Parent Company | |||
Cash flows from operating activities | |||
Profit before tax | 18,559,000 | 21,282,000 | 20,000,000 |
Adjustments for: | |||
Equity-settled share-based payments | 2,915,000 | 2,187,000 | 1,795,000 |
Foreign exchange losses on operating activities | 114,000 | 42,000 | |
Changes in working capital: | |||
Other receivables | (191,000) | (998,000) | (124,000) |
Other payables | 517,000 | 1,125,000 | (1,590,000) |
Net cash generated from operating activities | 21,914,000 | 23,638,000 | 20,081,000 |
Cash flows from financing activities | |||
Dividends paid | (21,982,000) | (23,295,000) | (20,084,000) |
Net cash used in financing activities | (21,982,000) | (23,295,000) | (20,084,000) |
Net (decrease)/increase in cash and cash equivalents | (68,000) | 343,000 | (3,000) |
Cash and cash equivalents at beginning of year | 522,000 | 221,000 | 224,000 |
Exchange losses on cash and cash equivalents | (114,000) | (42,000) | |
Cash and cash equivalents at end of year | £ 340,000 | £ 522,000 | £ 221,000 |
Additional information-Finan136
Additional information-Financial Statement Schedule I - Reconciliations (Details) - GBP (£) £ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
IFRS profit/(loss) reconciliation: | ||||
Additional (loss)/profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost | £ (55,829) | £ 17,895 | £ 16,371 | |
IFRS (loss)/profit for the year | (37,270) | 39,177 | 36,371 | |
IFRS equity reconciliation: | ||||
Additional profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost | 108,585 | 160,428 | 141,268 | |
IFRS equity | 425,266 | 477,617 | 458,282 | £ 477,918 |
Parent Company | ||||
IFRS profit/(loss) reconciliation: | ||||
IFRS (loss)/profit for the year | 18,559 | 21,282 | 20,000 | |
IFRS equity reconciliation: | ||||
IFRS equity | £ 316,681 | £ 317,189 | £ 317,014 | £ 315,303 |