Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2019shares | |
Entity Registrant Name | Manchester United plc |
Entity Central Index Key | 0001549107 |
Document Type | 20-F |
Document Period End Date | Jun. 30, 2019 |
Amendment Flag | false |
Entity Emerging Growth Company | false |
Current Fiscal Year End Date | --06-30 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Shell Company | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Class A ordinary shares | |
Entity Common Stock, Shares Outstanding | 40,570,967 |
Class B ordinary shares | |
Entity Common Stock, Shares Outstanding | 124,000,000 |
Consolidated statement of profi
Consolidated statement of profit or loss - GBP (£) £ in Thousands | 12 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Consolidated statement of profit or loss | ||||||
Revenue from contracts with customers | £ 627,122 | £ 589,758 | [1] | £ 581,254 | [1] | |
Operating expenses | (602,936) | (564,006) | (511,315) | |||
Profit on disposal of intangible assets | 25,799 | 18,119 | 10,926 | |||
Operating profit | 49,985 | 43,871 | [1] | 80,865 | [1] | |
Finance costs | (25,470) | (24,233) | (25,013) | |||
Finance income | 2,961 | 6,195 | 736 | |||
Net finance costs | (22,509) | (18,038) | (24,277) | |||
Profit before income tax | 27,476 | 25,833 | [1] | 56,588 | [1] | |
Income tax expense | (8,595) | (63,462) | [1] | (17,379) | [1] | |
Profit/(loss) for the year | £ 18,881 | £ (37,629) | [1] | £ 39,209 | [1] | |
Earnings/(loss) per share during the period | ||||||
Basic earnings/(loss) per share | £ 0.1148 | £ (0.2292) | [1] | £ 0.2390 | [1] | |
Diluted earnings/(loss) per share | [2] | £ 0.1147 | £ (0.2292) | [1] | £ 0.2384 | [1] |
[1] | Comparative amounts have been restated—see note 33 for further details. | |||||
[2] | 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 2019 and 2017, 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, 2019 | Jun. 30, 2018 | [1] | Jun. 30, 2017 | [1] | |
Consolidated statement of comprehensive income | |||||
Profit/(loss) for the year | £ 18,881 | £ (37,629) | £ 39,209 | ||
Items that may be reclassified to profit or loss | |||||
Movements on hedges | (6,720) | 25,397 | 2,471 | ||
Income tax expense relating to movements on hedges (note 27.2) | (1,266) | (21,684) | (865) | ||
Other comprehensive (loss)/income for the year, net of tax | (7,986) | 3,713 | 1,606 | ||
Total comprehensive income/(loss) for the year | £ 10,895 | £ (33,916) | £ 40,815 | ||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Consolidated balance sheet
Consolidated balance sheet - GBP (£) | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Non-current assets | ||||||
Property, plant and equipment | £ 246,032,000 | £ 245,401,000 | £ 244,738,000 | |||
Investment properties | 24,979,000 | 13,836,000 | 13,966,000 | |||
Intangible assets | 768,857,000 | 799,640,000 | 717,544,000 | |||
Deferred tax assets | 58,415,000 | 63,332,000 | [1] | 141,485,000 | [1] | |
Trade receivables | 9,889,000 | 4,724,000 | 15,399,000 | |||
Tax receivables | 547,000 | |||||
Derivative financial instruments | 30,000 | 4,807,000 | 1,666,000 | |||
Total non-current assets | 1,108,202,000 | 1,132,287,000 | [1] | 1,134,798,000 | [1] | |
Current assets | ||||||
Inventories | 2,130,000 | 1,416,000 | 1,637,000 | |||
Prepayments | 13,030,000 | 10,862,000 | 13,500,000 | |||
Contract assets - accrued revenue | 39,532,000 | 38,018,000 | 28,755,000 | |||
Trade receivables | 23,851,000 | 119,073,000 | 61,207,000 | |||
Other receivables | 1,188,000 | 107,000 | 270,000 | |||
Tax receivable | 643,000 | 800,000 | ||||
Derivative financial instruments | 312,000 | 1,159,000 | 3,218,000 | |||
Cash and cash equivalents | 307,637,000 | 242,022,000 | 290,267,000 | £ 229,194,000 | ||
Total current assets | 388,323,000 | 413,457,000 | 398,854,000 | |||
Total assets | 1,496,525,000 | 1,545,744,000 | [1] | 1,533,652,000 | [1] | |
Equity | ||||||
Share capital | 53,000 | 53,000 | 53,000 | |||
Share premium | 68,822,000 | 68,822,000 | 68,822,000 | |||
Merger reserve | 249,030,000 | 249,030,000 | 249,030,000 | |||
Hedging reserve | (35,544,000) | (27,558,000) | [1] | (31,271,000) | [1] | (32,877,000) |
Retained earnings | 132,841,000 | 136,757,000 | [1] | 193,453,000 | [1] | |
Total equity | 415,202,000 | 427,104,000 | [1] | 480,087,000 | [1] | £ 460,379,000 |
Non-current liabilities | ||||||
Deferred tax labilities | 31,865,000 | 29,134,000 | [1] | 21,536,000 | [1] | |
Contract liabilities - deferred revenue | 33,354,000 | 37,085,000 | 39,648,000 | |||
Trade and other payables | 79,183,000 | 104,271,000 | 83,587,000 | |||
Borrowings | 505,779,000 | 486,694,000 | 497,630,000 | |||
Derivative financial instruments | 2,298,000 | 655,000 | ||||
Total non-current liabilities | 652,479,000 | 657,184,000 | [1] | 643,056,000 | [1] | |
Current liabilities | ||||||
Contract liabilities - deferred revenue | 190,146,000 | 180,512,000 | [1] | 203,445,000 | [1] | |
Trade and other payables | 230,386,000 | 267,996,000 | 190,315,000 | |||
Tax liabilities | 2,859,000 | 3,874,000 | 9,772,000 | |||
Borrowings | 5,453,000 | 9,074,000 | 5,724,000 | |||
Derivative financial instruments | 1,253,000 | |||||
Total current liabilities | 428,844,000 | 461,456,000 | [1] | 410,509,000 | [1] | |
Total equity and liabilities | £ 1,496,525,000 | £ 1,545,744,000 | [1] | £ 1,533,652,000 | [1] | |
[1] | Comparative amounts have been restated—see note 33 for further details. |
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 year (As previously reported) at Jun. 30, 2016 | £ 52,000 | £ 68,822,000 | £ 249,030,000 | £ (32,989,000) | £ 173,367,000 | £ 458,282,000 | |||
Equity at beginning of year (Adjustment) at Jun. 30, 2016 | [1] | 112,000 | 1,985,000 | 2,097,000 | |||||
Equity at beginning of year at Jun. 30, 2016 | 52,000 | 68,822,000 | 249,030,000 | (32,877,000) | 175,352,000 | 460,379,000 | |||
Comprehensive income (loss) | |||||||||
Profit/(loss) for the year | As previously reported | 39,177,000 | ||||||||
Profit/(loss) for the year | Adjustment | 32,000 | ||||||||
Profit/(loss) for the year | [1] | 39,209,000 | 39,209,000 | ||||||
Cash flow hedges | As previously reported | 1,946,000 | ||||||||
Cash flow hedges | Adjustment | 525,000 | ||||||||
Cash flow hedges | [1] | 2,471,000 | 2,471,000 | ||||||
Tax expense relating to movements on hedges | As previously reported | (681,000) | ||||||||
Tax expense relating to movements on hedges | Adjustment | (184,000) | ||||||||
Tax expense relating to movements on hedges | [1] | (865,000) | (865,000) | ||||||
Total comprehensive income/(loss) for the year | As previously reported | 40,442,000 | ||||||||
Total comprehensive income/(loss) for the year | Adjustment | 373,000 | ||||||||
Total comprehensive income/(loss) for the year | 1,606,000 | 39,209,000 | 40,815,000 | [1] | |||||
Equity-settled share-based payments (note 25) | 2,187,000 | 2,187,000 | |||||||
Dividends paid (note 12) | (23,295,000) | $ (29,525,000) | (23,295,000) | ||||||
Proceeds from shares issued | 1,000 | 1,000 | |||||||
Equity at end of year (As previously reported) at Jun. 30, 2017 | 477,617,000 | ||||||||
Equity at end of year (Adjustment) at Jun. 30, 2017 | 2,470,000 | ||||||||
Equity at end of year at Jun. 30, 2017 | 53,000 | 68,822,000 | 249,030,000 | (31,271,000) | 193,453,000 | 480,087,000 | [1] | ||
Comprehensive income (loss) | |||||||||
Profit/(loss) for the year | As previously reported | (37,270,000) | ||||||||
Profit/(loss) for the year | Adjustment | (359,000) | ||||||||
Profit/(loss) for the year | [1] | (37,629,000) | (37,629,000) | ||||||
Cash flow hedges | As previously reported | 25,878,000 | ||||||||
Cash flow hedges | Adjustment | (481,000) | ||||||||
Cash flow hedges | [1] | 25,397,000 | 25,397,000 | ||||||
Tax expense relating to movements on hedges | As previously reported | (21,892,000) | ||||||||
Tax expense relating to movements on hedges | Adjustment | 208,000 | ||||||||
Tax expense relating to movements on hedges | [1] | (21,684,000) | (21,684,000) | ||||||
Total comprehensive income/(loss) for the year | As previously reported | (33,284,000) | ||||||||
Total comprehensive income/(loss) for the year | Adjustment | (632,000) | ||||||||
Total comprehensive income/(loss) for the year | 3,713,000 | (37,629,000) | (33,916,000) | [1] | |||||
Equity-settled share-based payments (note 25) | 2,915,000 | 2,915,000 | |||||||
Dividends paid (note 12) | (21,982,000) | (29,555,000) | (21,982,000) | ||||||
Equity at end of year (As previously reported) at Jun. 30, 2018 | 425,266,000 | ||||||||
Equity at end of year (Adjustment) at Jun. 30, 2018 | 1,838,000 | ||||||||
Equity at end of year at Jun. 30, 2018 | 53,000 | 68,822,000 | 249,030,000 | (27,558,000) | 136,757,000 | 427,104,000 | [1] | ||
Comprehensive income (loss) | |||||||||
Profit/(loss) for the year | 18,881,000 | 18,881,000 | |||||||
Cash flow hedges | (6,720,000) | (6,720,000) | |||||||
Tax expense relating to movements on hedges | (1,266,000) | (1,266,000) | |||||||
Total comprehensive income/(loss) for the year | (7,986,000) | 18,881,000 | 10,895,000 | ||||||
Equity-settled share-based payments (note 25) | 699,000 | 699,000 | |||||||
Dividends paid (note 12) | (23,326,000) | $ (29,615,000) | (23,326,000) | ||||||
Deferred tax expense relating to share-based payments (note 16) | (170,000) | (170,000) | |||||||
Equity at end of year at Jun. 30, 2019 | £ 53,000 | £ 68,822,000 | £ 249,030,000 | £ (35,544,000) | £ 132,841,000 | £ 415,202,000 | |||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Consolidated statement of cash
Consolidated statement of cash flows - GBP (£) | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Cash flows from operating activities | ||||
Cash generated from operations | £ 263,609,000 | £ 119,604,000 | £ 251,759,000 | |
Interest paid | (18,986,000) | (18,904,000) | (19,523,000) | |
Interest received | 2,857,000 | 1,187,000 | 736,000 | |
Tax paid | (2,696,000) | (6,637,000) | (5,312,000) | |
Net cash inflow from operating activities | 244,784,000 | 95,250,000 | 227,660,000 | |
Cash flows from investing activities | ||||
Payments for property, plant and equipment | (13,737,000) | (13,260,000) | (8,373,000) | |
Proceeds from sale of property, plant and equipment | 81,000 | |||
Payments for investment properties | (12,424,000) | (641,000) | ||
Payments for intangible assets | [1] | (178,175,000) | (154,955,000) | (193,825,000) |
Proceeds from sale of intangible assets | [1] | 42,994,000 | 46,865,000 | 51,871,000 |
Net cash outflow from investing activities | (161,342,000) | (121,269,000) | (150,968,000) | |
Cash flows from financing activities | ||||
Repayment of borrowings | (3,750,000) | (419,000) | (395,000) | |
Dividends paid | (23,326,000) | (21,982,000) | (23,295,000) | |
Net cash outflow from financing activities | (27,076,000) | (22,401,000) | (23,690,000) | |
Net increase/(decrease) in cash and cash equivalents | 56,366,000 | (48,420,000) | 53,002,000 | |
Cash and cash equivalents at beginning of period | 242,022,000 | 290,267,000 | 229,194,000 | |
Effect of exchange rate changes on cash and cash equivalents | 9,249,000 | 175,000 | 8,071,000 | |
Cash and cash equivalents at end of period | £ 307,637,000 | £ 242,022,000 | £ 290,267,000 | |
[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 reporting date are provided in note 22. Trade receivables in relation to the disposal of registrations at the reporting date are provided in note 18. |
General information
General information | 12 Months Ended |
Jun. 30, 2019 | |
General information | |
General information | 1 General information Manchester United plc (the “Company”) and its subsidiaries (together the “Group”) is a men's and women's professional football club together with related and ancillary activities. The Company incorporated under the Companies Law (as amended) of the Cayman Islands. 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 24 September 2019. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Jun. 30, 2019 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2 Summary of significant accounting policies This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements to the extent they have not been disclosed in the other notes below. The policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the Group consisting of Manchester United plc and its subsidiaries. 2.1 Basis of preparation (i) The consolidated financial statements of Manchester United plc have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and interpretations issued by the IFRS Interpretations Committee ("IFRS IC") applicable to companies reporting under IFRS. The financial statements comply with IFRS as issued by the International Accounting Standards Board (“IASB”). (ii) The consolidated financial statements have been prepared on a historical cost basis, 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 hedge accounting applies. (iii) The Group has applied the following standards and amendments for the first time for the annual reporting period commencing 1 July 2018: · IFRS 9, “Financial instruments”, addresses the classification, measurement and recognition of financial assets and financial liabilities. The implementation of IFRS 9 did not have a material impact on the Group’s financial statements as at 1 July 2018. The new standard introduced expanded disclosure requirements and changes in presentation. These have changed the nature and extent of the Group’s disclosures about its financial instruments. · 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 implementation of IFRS 15 did have a material impact on the Group’s financial statements as at 1 July 2018 and consequently prior year amounts have been restated. Further details can be found in note 33. (iv) Certain new standards and interpretations have been published that are not mandatory for 30 June 2019 reporting periods and have not been early adopted by the Group. The Group’s assessment of the impact of these new standards and interpretations is set out below. · IFRS 16, “Leases” · The Group will adopt IFRS 16 from 1 July 2019. IFRS 16 introduces a single lease accounting model, requiring a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The lessee is required to recognize a right-of-use asset representing the right to use the underlying asset, and a lease liability representing the obligation to pay lease payments. Thus, leases classified as operating leases with lease payments recorded in the consolidated statement of profit or loss under the existing accounting policy will be included in the consolidated balance sheet. · The Group has elected to apply the ‘simplified approach’ on initial adoption of IFRS 16, consequently comparative information will not be restated. The Group has also elected to apply the following transitional practical expedients: · lease liabilities will be measured at the present value of the remaining lease payments, discounted using the Group’s incremental borrowing rate as at 1 July 2019; · right-of-use assets will be measured at an amount equal to the lease liability. · The new treatment of leases will result in an increase in non-current assets and financial liabilities as these leases are capitalised as well as increasing underlying EBITDA, offset by an increase in depreciation and an increase in finance charges. This will result in a higher operating profit. The depreciation charge is constant over the lease period, but finance charges decrease as the remaining lease liability decreases, resulting in a net reduction in profit before tax in the early part of a lease arrangement but a positive profit impact towards the end of the contract in contrast to the typical straight-line treatment of existing operating lease expenses. · The Group expects to recognise right-of-use assets of approximately £6.0 million on 1 July 2019 and lease liabilities of the same amount. The Group expects that profit before tax for the year ending 30 June 2020 will decrease by approximately £0.1 million as a result of adopting the new standard. Adjusted EBITDA and operating profit are expected to increase by approximately £1.7 million. Operating cash flows will increase and financing cash flows decrease by £1.6 million as repayment of the principal portion of the lease liabilities will be classified as cash flows from financing activities. · The difference between the operating lease commitment disclosure in note 29.2 (£8.1 million) and the above IFRS 16 lease liability balances is primarily due to the fact that the IFRS 16 lease liability balances are discounted. · The Group’s activities as a lessor are not expected to be materially impacted by the new standard. There are no other standards that are not yet effective and that would be expected to have a material impact on the Group in the future reporting periods or on foreseeable future transactions. 2.2 Principles of consolidation and equity accounting 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 to direct the activities of 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 acquisition method of accounting is used to account for business combinations by the Group. The consideration transferred for the acquisition of a subsidiary comprises the: · fair values of the assets transferred · liabilities incurred to the former owners of the acquired business · equity interests issued by the Group · fair value of any asset or liability resulting from a contingent consideration arrangement, and · fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognizes any non‑controlling interest in the acquired entity on an acquisition‑by‑acquisition basis either at fair value or at the non‑controlling interest’s proportionate share of the acquired entity's net identifiable assets. Acquisition‑related costs are expensed as incurred. The excess of the: · consideration transferred, · the amount of any non‑controlling interest in the acquired entity, and · acquisition date fair value of any previous interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in profit or loss as a bargain purchase. Inter-company transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. 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 men's and women's 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 statement of profit or loss, 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 properties, however, this is not considered to be a material business segment and is therefore not reported as such. 2.4 Foreign currency translation (i) 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 functional and presentation currency. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss. They are deferred in other comprehensive income if they relate to qualifying cash flow hedges. Foreign exchange gains and losses that relate to unhedged borrowings are presented in the statement of profit or loss, within finance costs or finance income. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within operating expenses. (iii) Group companies The results and financial position of foreign operations (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: · assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet · income and expenses for each statement of profit or loss and statement of comprehensive income are translated at average exchange rates (unless this 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 the transactions), and · all resulting exchange differences are recognized in other comprehensive income. (iv) Exchange rates The most important exchange rates per £1.00 that have been used in preparing the financial statements are: Closing rate Average rate 2019 2018 2017 2019 2018 2017 Euro 1.1170 1.1309 1.1379 1.1346 1.1327 1.1663 US Dollar 1.2718 1.3194 1.2988 1.2959 1.3465 1.2774 2.5 Revenue recognition The Group’s accounting policies for revenue from contracts with customers are disclosed in note 4. 2.6 Employee benefits (i) Liabilities for wages and salaries, including non-monetary benefits and annual leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service, are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as accruals and classified as current liabilities in the balance sheet. (ii) 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. They are subsequently charged to profit or loss (as employee benefit 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 employee benefit expenses in profit or loss on a straight-line basis over the current financial year. (iii) The Group is one of a number of participating employers in The Football League Limited Pension and Life Assurance Scheme (‘the scheme’—see note 26.1). 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 statement of profit or loss 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 recognized as an employee benefit expenses when they are due. (iv) 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 reporting 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 profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity. 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 reporting 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 25. 2.7 Operating leases Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease. Lease income from operating leases where the Group is lessor is recognized in income on a straight-line basis over the lease term. The respective leased assets are included in the balance sheet based on their nature. 2.8 The Group's accounting policies for exceptional items are disclosed in note 6. 2.9 Income tax The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current income tax expense or credit is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period 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 corporate income tax purposes and is subject to US federal corporate 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 income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognized only if it is probable that future taxable profit will be available to utilize those temporary differences and losses. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current and deferred tax is recognized in profit or loss, 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. 2.10 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. 2.11 Goodwill is not subject to amortization and is tested annually for impairment or more frequently if events or changes in circumstances indicate it might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in profit or loss for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use, and is calculated with reference to future discounted cash flows that the asset is expected to generate when considered as part of a cash-generating unit. Assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. If an impairment 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. 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 men’s first team again, for example, a player sustaining a career threatening injury or is permanently removed from the men’s 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. 2.12 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. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. The depreciation methods and periods used by the Group are disclosed in note 13. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss. 2.13 Investment properties The Group’s accounting policy for investment properties is disclosed in note 14. 2.14 Intangible assets The cost of and amortization methods and periods used by the Group for goodwill, registrations and other intangible assets are disclosed in note 15. The assets’ useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. 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 the end of a reporting period. 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 profit or loss 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 profit or loss when receipt is virtually certain. Loan income on players temporarily loaned to other football clubs is recognized separately in profit or loss within profit on disposal of intangible assets. 2.15 Inventories The Group’s accounting policy for inventories is disclosed in note 17. 2.16 Trade receivables The Group’s accounting policy for trade receivables is disclosed in note 18. 2.17 Derivatives and hedging activities Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Group designates certain derivatives as hedges of a particular risk associated with the cash flows of recognized assets and liabilities and highly probable forecast transactions (cash flow hedges). At inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged items, including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking its hedge transactions. The fair values of derivative financial instruments are disclosed in note 19. Movements in the hedging reserve are shown in the statement of changes in equity. The full fair value of a derivative is classified as a non-current asset or liability when the remaining maturity of the item is more than 12 months, it is classified as a current asset or liability when the remaining maturity of the item is less than 12 months. (i) 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 profit or loss. 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 profit or loss immediately. The foreign exchange gains or losses arising on re-translation of the Group’s unhedged US dollar borrowings are recognized in profit or loss 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 a portion of variable rate 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 profit or loss immediately. The gain or loss relating to any ineffective portion is recognized in profit or loss immediately. Amounts previously recognized in other comprehensive income and accumulated in the hedging reserve within equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for example, when the forecast transaction that is hedged takes place). When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss existing in equity at that time remains in equity and is reclassified when the forecast transaction is ultimately recognized in profit or loss. When the forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately reclassified to profit or loss. (ii) Certain derivative instruments are not designated as hedging instruments and consequently do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognized immediately in profit or loss. 2.18 For the purposes of presentation in the consolidated statement of cash flows, cash and cash equivalents includes cash in hand, deposits held at call with financial institutions, and, if applicable, other short-term highly liquid investments with original maturities of three months or less. 2.19 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. 2.20 Trade and other payables The Group’s accounting policy for trade and other payables is disclosed in note 22. 2.21 Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss 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. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. |
Critical estimates and judgment
Critical estimates and judgments | 12 Months Ended |
Jun. 30, 2019 | |
Critical estimates and judgments | |
Critical estimates and judgments | 3 Critical estimates and judgments The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgment in applying the Group’s accounting policies. This note provides an overview of the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be wrong. Detailed information about each of these estimates and judgments is included in other notes together with information about the basis of calculation for each affected line item in the financial statements. 3.1 The areas involving significant estimates or judgments are: · Minimum guarantee revenue recognition—see note 4.3(i) · Fair value and impairment of registrations—see note 15 · Recognition of deferred tax assets—see note 16 Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Group and that are believed to be reasonable under the circumstances. |
Revenue from contracts with cus
Revenue from contracts with customers | 12 Months Ended |
Jun. 30, 2019 | |
Revenue from contracts with customers. | |
Revenue from contracts with customers | 4 Revenue from contracts with customers 4.1 The principal activity of the Group is the operation of men's and women's professional football clubs. All of the activities of the Group support the operation of the football clubs and the success of the men’s first team in particular 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 professional football clubs. All revenue derives from the Group’s principal activity in the United Kingdom. Revenue can be analysed into its three main components as follows: Restated(1) Restated(1) 2019 2018 2017 £’000 £’000 £’000 Sponsorship 173,010 172,982 171,530 Retail, merchandising, apparel & products licensing revenue 102,083 102,853 103,991 Commercial 275,093 275,835 275,521 Domestic competitions 148,018 155,123 145,605 European competitions 83,138 38,276 39,541 Other 10,054 10,738 8,952 Broadcasting 241,210 204,137 194,098 Matchday 110,819 109,786 111,635 627,122 589,758 581,254 (1) Comparative amounts have been restated—see note 33 for further details. Revenue derived from entities accounting for more than 10% of revenue in either 2019, 2018 or 2017 were as follows: Restated(1) 2019 2018 2017 £’000 £’000 £’000 Premier League 150,959 155,932 147,875 UEFA 83,138 <10 % <10 % adidas 78,813 79,015 79,214 General Motors (Chevrolet) <10 % <10 % 59,446 (1) Comparative amounts have been restated—see note 33 for further details. All non‑current assets, other than US deferred tax assets, are held within the United Kingdom. 4.2 Details of movements on assets related to contracts with customers are as follows: Current contract assets —accrued revenue £’000 At 1 July 2017 28,755 Recognized in revenue during the year 38,018 Cash received during the year (28,755) At 30 June 2018 38,018 Recognized in revenue during the year 39,532 Cash received during the year (38,018) At 30 June 2019 39,532 A contract asset (accrued revenue) is recognized if commercial, broadcasting or matchday revenue performance obligations are satisfied prior to unconditional consideration being due under the contract. Details of movements on liabilities related to contracts with customers are as follows: Current contract Non-current contract Total contract liabilities — liabilities— liabilities— deferred revenue deferred revenue deferred revenue £’000 £’000 £’000 At 1 July 2017 as previously reported (207,245) (39,648) (246,893) Adjustment(1) 3,800 — 3,800 Restated at 1 July 2017 (203,445) (39,648) (243,093) Recognized in revenue during the year 203,445 — 203,445 Cash received during the year (177,426) (523) (177,949) Reclassified to current during the year (3,086) 3,086 — At 30 June 2018 (180,512) (37,085) (217,597) Recognized in revenue during the year 180,512 — 180,512 Cash received during the year (180,494) (5,921) (186,415) Reclassified to current during the year (9,652) 9,652 — At 30 June 2019 (190,146) (33,354) (223,500) (1) Comparative amounts have been restated—see note 33 for further details. Commercial, broadcasting and matchday consideration which is received in advance of the performance obligation being satisfied is treated as a contract liability (deferred revenue). The deferred revenue is then recognized as revenue when the performance obligation is satisfied. The Group receives substantial amounts of deferred revenue prior to the previous financial year end which is then recognized as revenue throughout the current and, where applicable, future financial years. 4.3 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 transaction price can be determined; when it is probable that it will collect the consideration to which it is entitled; and when specific performance obligations have been met for each of the Group’s activities as described below. In instances where the transaction price contains an element of variable or contingent consideration, revenue is recognized based on the most likely amount expected to be received, but only to the extent that it is highly probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable or contingent consideration is subsequently resolved. (i) 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 men’s first team undertaking tours. 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 as performance obligations are satisfied evenly over time (i.e. on a straight-line basis). In respect of contracts with multiple performance obligations, the Group allocates the total consideration receivable to each separately identifiable performance obligation based on their relative fair values, and then recognizes the allocated revenue as performance obligations are satisfied evenly over time (i.e. on a straight-line basis) . Retail revenue is recognized when control of the products has transferred, being at the point of sale to the customer. License revenue in respect of right to access licences is recognized in line with the performance obligations included within the contract, in instances where these remain the same over the duration of the contract, revenue is recognized evenly on a time elapsed (i.e. straight-line) basis. Sales-based royalty revenue is recognized only when the subsequent sale is made. Significant estimates and judgments—minimum guarantee revenue recognition 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 as performance obligations are satisfied evenly over time (i.e. on a straight-line basis). 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 men’s first team wins the Premier League, FA Cup or Champions League, or decrease if the club’s men’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 is the most likely amount that will be received, as management does not expect two consecutive seasons of non-participation in the Champions League. (ii) 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 each performance obligation is satisfied i.e. as each Premier League match is played), facility fees for live coverage and highlights of domestic home and away matches (which are recognized when the respective performance obligation is satisfied i.e. the respective match is played), and merit awards (which, being variable consideration, are recognized when each performance obligation is satisfied i.e. as each Premier League match is played, based on management’s estimate of where the men’s first team will finish at the end of the football season i.e. the most likely outcome). Distributions from UEFA relating to participation in European 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), fixed amounts for participation in individual matches (which are recognized when the matches are played) and an individual club coefficient share (which is recognized over the group stage matches). (iii) Matchday revenue is recognized based on matches played throughout the year with revenue from each match (including season ticket allocated amounts) only being recognized when the performance obligation is satisfied i.e. 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. |
Operating expenses
Operating expenses | 12 Months Ended |
Jun. 30, 2019 | |
Operating expenses | |
Operating expenses | 5 Operating expenses 2019 2018 2017 £’000 £’000 £’000 Employee benefit expenses (note 7) (332,356) (295,935) (263,464) Operating lease costs (1,974) (1,785) (2,316) Auditors’ remuneration: audit of parent company and consolidated financial statements (28) (28) (27) Auditors’ remuneration: audit of the Company’s subsidiaries (489) (472) (476) Auditors’ remuneration: tax compliance services (160) (212) (392) Auditors’ remuneration: other services (45) (184) (456) Foreign exchange gains/(losses) on operating activities 76 (994) (2,646) Gain/(loss) on disposal of property, plant and equipment — 81 (43) Depreciation — property, plant and equipment (note 13) (11,569) (10,625) (10,106) Depreciation—investment properties (note 14) (157) (130) (122) Impairment—investment properties (note 14) (1,124) — — Amortization (note 15) (129,154) (138,380) (124,434) Sponsorship, other commercial and broadcasting costs (23,092) (25,907) (28,491) External matchday costs (20,317) (24,193) (26,892) Property costs (21,211) (21,620) (19,329) Other operating expenses (individually less than £10,000,000) (41,737) (41,705) (36,874) Exceptional items (note 6) (19,599) (1,917) 4,753 (602,936) (564,006) (511,315) |
Exceptional items
Exceptional items | 12 Months Ended |
Jun. 30, 2019 | |
Exceptional items | |
Exceptional items | 6 Exceptional items 2019 2018 2017 £’000 £’000 £’000 Compensation paid for loss of office (19,599) — — Football League pension scheme deficit (note 26) — (1,917) — Impairment reversal—registrations (note 15) — — 4,753 (19,599) (1,917) 4,753 Compensation paid for loss of office relates to amounts payable to a former men's first team manager and certain members of the coaching staff. 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 men’s 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 men’s 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). (i) Accounting policy 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. |
Employee benefit expenses
Employee benefit expenses | 12 Months Ended |
Jun. 30, 2019 | |
Employee benefit expenses | |
Employee benefit expenses | 7 Employee benefit expenses 7.1 Employee benefit expenses and average number of people employed 2019 2018 2017 £’000 £’000 £’000 Wages and salaries (including bonuses) (293,424) (255,637) (229,605) Social security costs (34,799) (31,396) (27,334) Share-based payments (note 25) (1,251) (6,216) (4,090) Pension costs—defined contribution schemes (note 26.2) (2,882) (2,686) (2,435) (332,356) (295,935) (263,464) Details of the pension arrangements offered by the Company and the Group are disclosed in note 26. The average number of employees during the year, including directors, was as follows: 2019 2018 2017 Number Number Number By activity: Football—men's and women's players 104 81 74 Football—technical and coaching 163 165 136 Commercial 114 121 120 Media 85 87 90 Administration and other 474 468 445 Average number of employees 940 922 865 The Group also employs approximately 3,340 temporary staff on match days (2018: 3,858; 2017: 2,053), 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: 2019 2018 2017 £’000 £’000 £’000 Short-term employee benefits (9,961) (7,620) (8,601) Share-based payments (748) (5,275) (3,654) Post-employment benefits (20) (20) (71) (10,729) (12,915) (12,326) |
Profit on disposal of intangibl
Profit on disposal of intangible assets | 12 Months Ended |
Jun. 30, 2019 | |
Profit on disposal of intangible assets | |
Profit on disposal of intangible assets | 8 Profit on disposal of intangible assets 2019 2018 2017 £’000 £’000 £’000 Profit on disposal of registrations 24,720 14,709 9,876 Player loan income 1,079 3,410 1,050 25,799 18,119 10,926 |
Net finance costs
Net finance costs | 12 Months Ended |
Jun. 30, 2019 | |
Net finance costs | |
Net finance costs | 9 Net finance costs 2019 2018 2017 £’000 £’000 £’000 Interest payable on bank loans and overdrafts (1,162) (1,458) (1,502) Interest payable on secured term loan facility and senior secured notes (18,351) (17,567) (18,784) Amortization of issue costs on secured term loan facility and senior secured notes (647) (627) (608) Foreign exchange (losses)/gains on retranslation of unhedged US dollar borrowings (2,650) — 1,816 Unwinding of discount relating to registrations (2,280) (3,492) (2,401) Fair value movements on derivative financial instruments: Embedded foreign exchange derivatives (380) (1,089) (3,534) Total finance costs (25,470) (24,233) (25,013) Interest receivable on short-term bank deposits 2,822 1,243 736 Foreign exchange gains on retranslation of unhedged US dollar borrowings — 4,952 — Hedge ineffectiveness on cash flow hedges 139 — — Total finance income 2,961 6,195 736 Net finance costs (22,509) (18,038) (24,277) |
Income tax expense
Income tax expense | 12 Months Ended |
Jun. 30, 2019 | |
Income tax expense | |
Income tax expense | 10 Income tax expense Restated(1) Restated(1) 2019 2018 2017 £’000 £’000 £’000 Current tax: Current tax on profit for the year (498) (1,809) (19,722) Adjustment in respect of previous years 229 2,590 (2,651) Foreign tax (214) (723) (2,103) Total current tax (expense)/credit (483) 58 (24,476) Deferred tax: US deferred tax: Origination and reversal of temporary differences (3,452) (9,371) (3,379) Adjustment in respect of previous years 776 (1,787) 1,782 Impact of change in US federal corporate income tax rate on opening balance(2) — (48,954) — Total US deferred tax expense (note 16) (2,676) (60,112) (1,597) UK deferred tax: Origination and reversal of temporary differences (5,515) (3,650) 6,161 Adjustment in respect of previous years 79 242 938 Impact of change in UK corporation tax rate — — 1,595 Total UK deferred tax (expense)/credit (note 16) (5,436) (3,408) 8,694 Total deferred tax (expense)/credit (8,112) (63,520) 7,097 Total income tax expense (8,595) (63,462) (17,379) A reconciliation of the total income tax expense is as follows: Restated(1) Restated(1) 2019 2018 2017 £’000 £’000 £’000 Profit before tax 27,476 25,833 56,588 Profit before tax multiplied by weighted average US federal corporate income tax rate of 21.0% (2018: 28.0%; 2017: 35.0%) (5,770) (7,233) (19,806) Tax effects of: Adjustment in respect of previous years 1,085 923 69 Difference in tax rates on non-US operations 63 491 244 Foreign exchange gains on US dollar denominated tax basis 1,311 238 2,362 Expenses not deductible for tax purposes (3,093) (695) (248) Impact of change in US federal corporate income tax rate on opening balance(2) — (48,954) — Re-measurement of unrealized foreign exchange US deferred tax asset (3) — (8,795) — Re-measurement of foreign tax credit US deferred tax asset(4) (2,191) 1,637 — One time mandatory US tax charge — (1,074) — Total income tax expense (8,595) (63,462) (17,379) (1) Comparative amounts have been restated—see note 33 for further details. (2) The deferred tax expense for the year ended 30 June 2018 included a non-cash, tax accounting write-off of £49.0 million following the 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 then existing US deferred tax position. (3) It is no longer deemed probable that the cumulative unrealized foreign exchange gains or losses 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 expense of £8.8 million in the year ended 30 June 2018. Unrealized foreign exchange gains or losses arising on USD denominated debt are now treated as permanent differences within expenses not deductible for tax purposes. (4) The deferred tax asset associated with foreign tax credits is continuously re-measured. This has resulted in a write-off of £2.2 million (2018: write back of £1.6 million; 2017: £nil). In addition to the amount recognized in the statement of profit or loss, the following amounts relating to tax have been recognized directly in other comprehensive income: Restated(1) Restated(1) 2019 2018 2017 £’000 £’000 £’000 US deferred tax (note 16) (2,208) (17,494) (1,860) UK deferred tax (note 16) 2,842 (4,190) (15,256) Total deferred tax 634 (21,684) (17,116) Current tax (1,900) — 16,251 Total income tax expense recognized in other comprehensive income (1,266) (21,684) (865) (1) Comparative amounts have been restated—see note 33 for further details. |
Earnings_(loss) per share
Earnings/(loss) per share | 12 Months Ended |
Jun. 30, 2019 | |
Earnings/(loss) per share | |
Earnings/(loss) per share | 11 Earnings/(loss) per share Restated(1) Restated(1) 2019 2018 2017 Profit/(loss) for the year (£’000) 18,881 (37,629) 39,209 Basic earnings/(loss) per share (pence) 11.48 (22.92) 23.90 Diluted earnings/(loss) per share (pence)(2) 11.47 (22.92) 23.84 (1) Comparative amounts have been restated—see note 33 for further details. (2) 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 2019 and 2017, potential ordinary shares have been treated as dilutive, as their inclusion in the diluted earnings per share calculation decreases earnings per share. (i) Basic earnings/(loss) per share is calculated by dividing the profit/(loss) for the year by the weighted average number of ordinary shares in issue during the financial year. (ii) Diluted earnings/(loss) per share Diluted earnings/(loss) 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. (iii) Weighted average number of shares used as the denominator 2019 2018 2017 Number Number Number ‘000 ‘000 ‘000 Class A ordinary shares 40,526 40,195 40,025 Class B ordinary shares 124,000 124,000 124,000 Weighted average number of ordinary shares used as the denominator in calculating basic earnings/(loss) per share 164,526 164,195 164,025 Adjustment for calculation of diluted earnings/(loss) per share assumed conversion into Class A ordinary shares 140 415 468 Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings/(loss) per share 164,666 164,610 164,493 |
Dividends
Dividends | 12 Months Ended |
Jun. 30, 2019 | |
Dividends | |
Dividends | 12 Dividends Dividends paid in the year were $29,615,000 (2018: $29,555,000; 2017: $29,525,000) equivalent to $0.18 (2018: $0.18; 2017: $0.18) per share. The pounds sterling equivalents were £23,326,000 (2018: £21,982,000; 2017: £23,295,000) equivalent to £0.14 (2018: £0.13; 2017: £0.14) per share. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure of property, plant and equipment | |
Property, plant and equipment | 13 Property, plant and equipment Freehold Plant and Fixtures property machinery and fittings Total £’000 £’000 £’000 £’000 At 1 July 2017 Cost 269,372 34,475 50,236 354,083 Accumulated depreciation (46,744) (31,090) (31,511) (109,345) Net book amount 222,628 3,385 18,725 244,738 Year ended 30 June 2018 Opening net book amount 222,628 3,385 18,725 244,738 Additions — 2,605 8,706 11,311 Disposals (5) — (18) (23) Depreciation charge (3,288) (1,821) (5,516) (10,625) Closing net book amount 219,335 4,169 21,897 245,401 At 30 June 2018 Cost 269,367 34,790 57,800 361,957 Accumulated depreciation (50,032) (30,621) (35,903) (116,556) Net book amount 219,335 4,169 21,897 245,401 Year ended 30 June 2019 Opening net book amount 219,335 4,169 21,897 245,401 Additions 16 3,573 8,611 12,200 Transfers (241) 4 237 — Depreciation charge (3,284) (2,589) (5,696) (11,569) Closing net book amount 215,826 5,157 25,049 246,032 At 30 June 2019 Cost 268,981 34,845 64,806 368,632 Accumulated depreciation (53,155) (29,688) (39,757) (122,600) Net book amount 215,826 5,157 25,049 246,032 (i) Property, plant and equipment with a net book amount of £202,664,000 (2018: £205,388,000) has been pledged to secure the secured term loan facility and senior secured notes borrowings of the Group (see note 23). (ii) Land is not depreciated. With the exception of freehold property acquired before 1 August 1999, depreciation is calculated using the straight-line method to allocate cost, net of residual values, 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%. See note 2.12 for the other accounting policies relevant to property, plant and equipment, and note 2.11 for the Group’s policy regarding impairments. (iii) See note 29.1 for disclosure of capital commitments relating to property, plant and equipment. |
Investment properties
Investment properties | 12 Months Ended |
Jun. 30, 2019 | |
Investment properties | |
Investment properties | 14 Investment properties £’000 At 1 July 2017 Cost 19,769 Accumulated depreciation and impairment (5,803) Net book amount 13,966 Year ended 30 June 2018 Opening net book amount 13,966 Depreciation charge (130) Closing net book amount 13,836 At 30 June 2018 Cost 19,769 Accumulated depreciation and impairment (5,933) Net book amount 13,836 Year ended 30 June 2019 Opening net book amount 13,836 Additions 12,424 Depreciation charge (157) Impairment charge (1,124) Closing net book amount 24,979 At 30 June 2019 Cost 32,193 Accumulated depreciation and impairment (7,214) Net book amount 24,979 (i) Other amounts recognized in profit or loss for investment properties 2019 2018 2017 £’000 £’000 £’000 Rental revenue 1,749 1,371 1,260 Direct operating expenses from properties, all of which generated rental revenue 416 182 679 The future minimum rentals receivable under non-cancellable operating leases are disclosed in note 29.2. (ii) Carrying value of investment properties Investment properties are held for long-term rental yields or for capital appreciation or both, and are not occupied by the Group. Investment properties are initially measured at cost (comprising the purchase price, after deducting discounts and rebates, and any directly attributable costs) and are subsequently carried at cost less accumulated depreciation and any provision for impairment. Investment properties are depreciated using the straight-line method over 50 years. Investment properties were externally valued as of 30 June 2019 in accordance with the Royal Institution of Chartered Surveyors (“RICS”) Valuation—Professional Standards, January 2014. The fair value of investment properties as of 30 June 2019 was £27,633,000 (2018: £16,450,000). 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 properties is determined using inputs that are not based on observable market data, consequently the asset is categorized as Level 3 (see note 27.4). (iii) The Group had no material contractual commitments to purchase, construct or develop investment properties or for repairs, maintenance or enhancements (2018: not material). |
Intangible assets
Intangible assets | 12 Months Ended |
Jun. 30, 2019 | |
Intangible assets. | |
Intangible assets | 15 Intangible assets Other intangible Goodwill Registrations assets Total £’000 £’000 £’000 £’000 At 1 July 2017 Cost 421,453 645,433 6,619 1,073,505 Accumulated amortization — (354,913) (1,048) (355,961) Net book amount 421,453 290,520 5,571 717,544 Year ended 30 June 2018 Opening net book amount 421,453 290,520 5,571 717,544 Additions — 243,182 4,495 247,677 Disposals — (27,201) — (27,201) Amortization charge — (136,993) (1,387) (138,380) Closing book amount 421,453 369,508 8,679 799,640 At 30 June 2018 Cost 421,453 785,594 10,379 1,217,426 Accumulated amortization — (416,086) (1,700) (417,786) Net book amount 421,453 369,508 8,679 799,640 Year ended 30 June 2019 Opening net book amount 421,453 369,508 8,679 799,640 Additions — 103,326 3,585 106,911 Disposals — (8,540) — (8,540) Amortization charge — (125,532) (3,622) (129,154) Closing book amount 421,453 338,762 8,642 768,857 At 30 June 2019 Cost 421,453 772,328 13,964 1,207,745 Accumulated amortization — (433,566) (5,322) (438,888) Net book amount 421,453 338,762 8,642 768,857 (i) Goodwill arose largely in relation to the Group’s acquisition of Manchester United Limited in 2005 and represents the excess of the cost of the acquisition over the fair value of the Group’s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill is not amortized but it is tested annually for impairment or more frequently if events or changes in circumstances indicate it might be impaired. Goodwill is carried at cost less accumulated impairment losses. When goodwill is tested for impairment the recoverable amount of the cash-generating unit is 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 below. 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 2.0% (2018: 2.5%), which does not exceed the long term average growth rate for the UK economy in which the cash generating unit operates. Management considers there to be one material cash generating unit for the purposes of the annual impairment review, being the operation of professional football clubs. 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 7.6% (2018: 7.8%) for each period, and certain assumptions around progression in domestic and UEFA club 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 club 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. 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, Premier League 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 Premier League), once payment becomes probable. 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. Registrations costs are fully amortized using the straight-line method over the period covered by the player’s and key football management staff contract. 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. Other intangible assets comprise website, mobile applications, software 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, mobile applications and software 3 years Trademark registrations 10 years See note 2.14 for the other accounting policies relevant to intangible assets, and note 2.11 for the Group’s policy regarding impairments. Significant estimates and judgments—fair value and impairment of registrations The costs associated with the acquisition of players’ and key football management staff registrations include an estimate of the fair value of any contingent consideration. 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 2019 is disclosed in note 28.1. 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. The unamortized balance of existing registrations as of 30 June 2019 was £338.8 million, of which £124.6 million is expected to be amortized in the year ended 30 June 2020. The remaining balance is expected to be amortized over the four years to 30 June 2024. This does not take into account player additions after 30 June 2019, which would have the effect of increasing the amortization expense in future periods, nor does it consider disposals subsequent to 30 June 2019, which would have the effect of decreasing future amortization charges. Furthermore, any contract renegotiations would also impact future charges. (ii) See note 29.1 for disclosure of capital commitments relating to other intangible assets. (iii) Other intangible assets include internally generated assets whose cost and accumulated amortization as of 30 June 2019 was £1,979,000 and £667,000 respectively (2018: £1,412,000 and £39,000 respectively). |
Deferred tax
Deferred tax | 12 Months Ended |
Jun. 30, 2019 | |
Deferred tax | |
Deferred tax | 16 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): Restated(1) 2019 2018 £’000 £’000 US deferred tax assets (58,415) (63,332) UK deferred tax liabilities 31,865 29,134 At 30 June (26,550) (34,198) The movement in deferred tax assets and deferred tax liabilities during the year is as follows: Restated(1) 2019 2018 £’000 £’000 At 1 July (34,198) (119,949) Expensed to statement of profit or loss (note 10) 8,112 63,520 (Credited)/expensed to other comprehensive income (note 10) (634) 21,684 Expense relating to share-based payments(2) 170 — Reclassification to tax receivable(3) — 547 At 30 June (26,550) (34,198) (1) Comparative amounts have been restated—see note 33 for further details. (2) Expense relating to share-based payments arise on the movement in the share price on equity-settled awards between the grant date and the reporting date—see consolidated statement of changes in equity above. (3) The reclassification to tax receivable in the year ended 30 June 2018 relates to alternative minimum tax payable which prior to the US tax reform was expected to be offset against future US tax liabilities. Following the US tax reform (substantively enacted on 22 December 2017) this was expected to be repaid to the Group. The movement in US net deferred tax assets are as follows: Unrealized foreign exchange Net and Foreign operating derivative Intangible Deferred tax credits losses movements assets revenue Other Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 At 1 July 2017 (restated(1)) (40,047) (1,070) (32,859) (47,247) (15,459) (4,803) (141,485) Expensed/(credited) to statement of profit or loss (note 10) 13,504 (2,096) 11,931 26,026 7,732 3,015 60,112 (Credited)/expensed to other comprehensive income (note 10) (4,271) (233) 22,124 — — (126) 17,494 Reclassification to tax receivable — — — — — 547 547 At 30 June 2018 (30,814) (3,399) 1,196 (21,221) (7,727) (1,367) (63,332) Expensed/(credited) to statement of profit or loss (note 10) (279) 795 (344) 6,163 (21) (3,638) 2,676 Expensed/(credited) to other comprehensive income (note 10) 942 2,604 (1,338) — — — 2,208 Expense relating to share-based payments (137) — — — — 170 33 At 30 June 2019 (30,288) — (486) (15,058) (7,748) (4,835) (58,415) (1) Comparative amounts have been restated—see note 33 for further details. The movement in UK net deferred tax liabilities are as follows: Rolled Property Accelerated over gain Non fair Net tax on player qualifying value operating depreciation disposal property adjustment losses Other(1) Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 At 1 July 2017 836 5,176 11,901 13,576 (27) (9,926) 21,536 (Credited)/expensed to statement of profit or loss (note 10) (31) 2,213 (3) (429) (85) 1,743 3,408 Expensed to other comprehensive income (note 10) — — — — — 4,190 4,190 At 30 June 2018 805 7,389 11,898 13,147 (112) (3,993) 29,134 Expensed/(credited) to statement of profit or loss (note 10) (99) 1,933 (3) (429) 112 3,922 5,436 (Credited) to other comprehensive income (note 10) — — — — — (2,842) (2,842) Expense relating to share-based payments — — — — — 137 137 At 30 June 2019 706 9,322 11,895 12,718 — (2,776) 31,865 (1) The “Other” deferred tax asset balance primarily comprises foreign exchange differences; fair value movements recognized in the hedging reserve; property, plant and equipment temporary differences; and salaries not paid before 15 September of the following year. Significant estimates and judgments—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. At 30 June 2019 there is an unrecognized US deferred tax asset of £18,971,000 (2018: £19,610,000) in respect of foreign tax credits in the US. At 30 June 2019, the Group had no unrecognized UK deferred tax assets (2018: £ nil). |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2019 | |
Inventories | |
Inventories | 17 Inventories 2019 2018 £’000 £’000 Finished goods 2,130 1,416 (i) 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 estimated costs necessary to make the sale. (ii) Inventories recognized as an expense during the year ended 30 June 2019 amounted to £8,664,000 (2018: £8,450,000; 2017: £8,598,000). These were included in operating expenses. |
Trade receivables
Trade receivables | 12 Months Ended |
Jun. 30, 2019 | |
Trade receivables. | |
Trade receivables | 18 Trade receivables 2019 2018 £’000 £’000 Trade receivables 46,694 133,505 Less: provision for impairment of trade receivables (12,954) (9,708) Net trade receivables 33,740 123,797 Less: non-current portion Trade receivables 9,889 4,724 Non-current trade receivables 9,889 4,724 Current trade and receivables 23,851 119,073 (i) Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Trade receivables are recognized initially at fair value. The Group holds trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest method, less provision for impairment. Details about the Group’s impairment policies and the calculation of the provision for impairment are provided in note 27.1(b). If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets. (ii) Net trade receivables include transfer fees receivable from other football clubs of £18,270,000 (2018: £29,214,000) of which £9,889,000 (2018: £4,724,000) is receivable after more than one year. Net trade receivables also include £12,725,000 (2018: £77,357,000) of deferred revenue that is contractually payable to the Group, but recorded in advance of the earnings process, with corresponding amounts recorded as contract liabilities—deferred revenue. (iii) The fair value of net trade receivables as at 30 June 2019 was £34,259,000 (2018: £124,050,000) before discounting of cash flows. (iv) Information about the impairment of trade receivables, their credit quality and the Group’s exposure to foreign exchange risk, interest rate risk and credit risk can be found in note 27. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Jun. 30, 2019 | |
Derivative financial instruments. | |
Derivative financial instruments | 19 Derivative financial instruments The Group has the following derivative financial instruments: 2019 2018 Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000 Used for hedging: Interest rate swaps — (2,298) 4,490 — At fair value through profit or loss: Embedded foreign exchange derivatives 245 — 624 — Forward foreign exchange contracts 97 — 852 — 342 (2,298) 5,966 — Less non-current portion: Used for hedging: Interest rate swaps — (2,298) 4,490 — At fair value through profit or loss: Embedded foreign exchange derivatives 30 — 317 — Non-current derivative financial instruments 30 (2,298) 4,807 — Current derivative financial instruments 312 — 1,159 — (i) Derivative financial instruments are carried at fair value. The different levels used in measuring fair value have been defined in accounting standards as follows: · Level 1—the fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting period. · Level 2—the fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. · Level 3—if one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. (ii) All of the financial instruments detailed above are included in level 2. Specific valuation techniques used to value financial instruments include: · The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves; · 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 end of the reporting period; 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 end of the reporting period, with the resulting value discounted back to present value. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Jun. 30, 2019 | |
Cash and cash equivalents | |
Cash and cash equivalents | 20 Cash and cash equivalents 2019 2018 £’000 £’000 Cash at bank and in hand 307,637 242,022 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, 2019 | |
Share capital. | |
Share capital | 21 Share capital Number of Ordinary shares shares (thousands) £’000 At 1 July 2017 164,195 53 Employee share-based compensation awards — issue of shares 331 — At 30 June 2018 164,526 53 Employee share-based compensation awards—issue of shares 45 — At 30 June 2019 164,571 53 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 2019, the Company’s issued share capital comprised 40,570,967 Class A ordinary shares and 124,000,000 Class B ordinary shares. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Jun. 30, 2019 | |
Trade and other payables | |
Trade and other payables | 22 Trade and other payables 2019 2018 £’000 £’000 Trade payables 196,644 266,316 Other payables 4,689 4,754 Accrued expenses 94,381 83,280 Social security and other taxes 13,855 17,917 309,569 372,267 Less: non-current portion Trade payables 77,438 102,067 Other payables 1,745 2,204 Non-current trade and other payables 79,183 104,271 Current trade and other payables 230,386 267,996 (i) Trade and other payables are liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method. They are classified as current liabilities if payment is due within one year or less. If not they are presented as non-current liabilities. (ii) Trade payables include transfer fees and other associated costs in relation to the acquisition of registrations of £187,544,000 (2018: £258,316,000) of which £77,438,000 (2018: £102,067,000) is due after more than one year. Of the amount due after more than one year, £59,889,000 (2018: £65,495,000) is expected to be paid between 1 and 2 years, and the balance of £17,549,000 (2018: £36,572,000) is expected to be paid between 2 and 5 years. (iii) Accrued expenses include £1,165,000 (2018: £4,795,000) related to share‑based payment transactions expected to be cash‑settled. (iv) The fair value of trade payables as at 30 June 2019 was £199,922,000 (2018: £270,548,000) 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, 2019 | |
Borrowings | |
Borrowings | 23 Borrowings 2019 2018 £’000 £’000 Senior secured notes 330,757 318,347 Secured term loan facility 175,022 168,347 Secured bank loan — 3,750 Accrued interest on senior secured notes 5,453 5,324 511,232 495,768 Less: non-current portion Senior secured notes 330,757 318,347 Secured term loan facility 175,022 168,347 Non-current borrowings 505,779 486,694 Current borrowings 5,453 9,074 (i) The senior secured notes of £330,757,000 (2018: £318,347,000) is stated net of unamortized issue costs amounting to £3,414,000 (2018: £3,770,000). The outstanding principal amount of the senior secured notes is $425,000,000 (2018: $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 issued by our wholly-owned subsidiary, Manchester United Football Club Limited, and are guaranteed by Red Football Limited, Red Football Junior Limited, Manchester United Limited and MU Finance Limited 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 £175,022,000 (2018: £168,347,000) is stated net of unamortized issue costs amounting to £1,894,000 (2018: £2,185,000). The outstanding principal amount of the secured term loan facility is $225,000,000 (2018: $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. Subsequent to 30 June 2019, the facility was amended by an amendment and restatement agreement dated 5 August 2019 which became effective on 6 August 2019 to, among other things, extend the expiry date. Consequently, the remaining balance of the secured term loan facility is repayable on 6 August 2029, although the Group has the option to repay the secured term loan facility at any time before then. The secured term loan facility was provided to our wholly-owned subsidiary, Manchester United Football Club Limited, and is guaranteed by Red Football Limited, Red Football Junior Limited, Manchester United Limited, MU Finance Limited 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 was repaid at par on 9 July 2018. The loan attracted interest of LIBOR + 1% per annum. 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 4 April 2025 (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 2019 or 2018. 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. (ii) The Group has complied with all covenants under its revolving facility, the secured term loan facility and the note purchase agreement governing the senior secured notes during the 2019 and 2018 reporting period. |
Cash flow information
Cash flow information | 12 Months Ended |
Jun. 30, 2019 | |
Cash flow information | |
Cash flow information | 24 Cash flow information 24.1 Restated(1) Restated(1) 2019 2018 2017 Note £’000 £’000 £’000 Profit before tax 27,476 25,833 56,588 Adjustments for: Depreciation 13, 14 11,726 10,755 10,228 Impairment charge/(reversal) 6,14 1,124 — (4,753) Amortization 15 129,154 138,380 124,434 Profit on disposal of intangible assets 8 (25,799) (18,119) (10,926) Net finance costs 9 22,509 18,038 24,277 (Profit)/loss on disposal of property, plant and equipment — (81) 43 Non-cash employee benefit expense — equity-settled share-based payments 25 699 2,915 2,187 Foreign exchange (gains)/losses on operating activities (76) 994 2,646 Reclassified from hedging reserve 6,250 13,914 5,290 Changes in working capital: Inventories (714) 221 (711) Prepayments (2,168) 2,638 895 Contract assets—accrued revenue (1,514) (9,263) 12,198 Trade receivables(2) 82,086 (64,492) 5,089 Other receivables (1,081) 163 (657) Contract liabilities—deferred revenue 5,903 (25,496) 18,576 Trade and other payables(2) 8,034 23,204 6,355 Cash generated from operations 263,609 119,604 251,759 (1) Comparative amounts have been restated—see note 33 for further details. (2) 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 receivables of £7,971,000 (2018: increase of £18,374,000; 2017: decrease of £3,224,000);and · a decrease in changes to trade and other payables of £70,732,000 (2018: increase of £74,088,000; 2017: decrease of £26,428,000). 24.2 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 an analysis of net debt and the movements in net debt for each of the periods presented. Non-current Current Cash and cash borrowings borrowings equivalents Total £’000 £’000 £’000 £’000 Net debt at 1 July 2017 497,630 5,724 (290,267) 213,087 Cash flows — (17,083) 48,420 31,337 Non-cash movements (10,936) 20,433 (175) 9,322 Net debt at 30 June 2018 486,694 9,074 (242,022) 253,746 Cash flows — (21,973) (56,366) (78,339) Non-cash movements 18,352 (9,249) 28,188 Net debt at 30 June 2019 505,779 5,453 (307,637) 203,595 Non-cash movements largely comprise foreign exchange gains or losses arising on re-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 foreign exchange gain or losses arising on translation of foreign currency denominated cash and cash equivalents. |
Share-based payments
Share-based payments | 12 Months Ended |
Jun. 30, 2019 | |
Share-based payments | |
Share-based payments | 25 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 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, 15,059,727 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 ordinary shares At 1 July 2018 83,153 Awarded 55,976 Vested (44,577) At 30 June 2019 94,552 The fair value of the shares awarded during the year was $18.30 (£14.34) per share. For the year ended 30 June 2019, the Group recognized total expenses related to equity‑settled share‑based payment transactions of £699,000 (2018: £2,915,000; 2017: £2,187,000) and total expenses related to cash‑settled share‑based payment transactions of £552,000 (2018: £3,301,000; 2017: £1,903,000). |
Pension arrangements
Pension arrangements | 12 Months Ended |
Jun. 30, 2019 | |
Pension arrangements | |
Pension arrangements | 26 Pension arrangements 26.1 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 £nil (2018: £1,917,000; 2017: £nil) has been made to the statement of profit or loss 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 2019, the present value of the Group’s outstanding contributions (i.e. its future liability) is £2,204,000 (2018: £2,638,000). This amounts to £459,000 (2018: £434,000) due within one year and £1,745,000 (2018: £2,204,000) 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). 26.2 Defined contribution schemes Contributions made to defined contribution pension arrangements are charged to the statement of profit or loss in the period in which they become payable and for the year ended 30 June 2019 amounted to £2,882,000 (2017: £2,686,000; 2017: £2,435,000). As at 30 June 2019, contributions of £335,000 (2018: £295,000) 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, 2019 | |
Financial risk management | |
Financial risk management | 27 Financial risk management 27.1 Financial risk factors This note explains the Group’s exposure to financial risks and how those risks could affect the Group’s future financial performance. 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 financial risk is described in more detail below. a) Market risk (i) Foreign exchange risk The Group is exposed to the following foreign exchange risks: · Significant revenue received in Euros primarily as a result of participation in UEFA club competitions. During the year ended 30 June 2019 the Group recognized a total of €94.4 million of revenue denominated in Euros (2018: €43.4 million; 2017: €47.2 million). The Group seeks to hedge the majority of the foreign exchange risk of this revenue either by using contracted future foreign exchange 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 2019 the Group recognized a total of $155.9 million of revenue denominated in US dollars (2018: $164.4 million; 2017: $157.9 million). The foreign exchange risk on these US dollar revenues is hedged to the extent possible (see note 27.2 below). · Risks arising from the US dollar denominated secured term loan facility and senior secured notes (see note 23). At 30 June 2019 the secured term loan facility and senior secured notes included principal amounts of $650,000,000 (2018: $650,000,000) denominated in US dollars. The foreign exchange risk on these US dollar borrowings (net of the Group’s US dollar cash balances) is hedged to the extent possible (see note 27.2 below). Interest is paid on these borrowings in US dollars. · Payments and receipts of transfer fees may also give rise to foreign exchange 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. · Payments of operating expenses may also give rise to foreign exchange exposures. We seek to hedge future payments either by using future foreign exchange revenue or by placing forward contracts. It is the policy of the Group to enter into forward foreign exchange contracts to cover specific foreign exchange payments and receipts. The following table details the forward foreign exchange contracts outstanding at the reporting date: 2019 2018 Average Foreign Notional Fair Average Foreign Notional Fair exchange currency value value exchange currency value value rate €’000 €'000 €'000 rate €’000 €'000 €'000 Buy Euro 1.1272 (6,639) (5,890) 97 1.1523 (46,000) (39,919) 852 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 2019 the fair value of such derivatives was an asset of £245,000 (2018: £624,000). The Group’s exposure to material foreign currency risk at the end of the reporting period, expressed in pounds sterling, was as follows: 2019 2018 Euro US Dollar Euro US Dollar €'000 €'000 €'000 €'000 Contract assets — accrued revenue 713 1,316 — — Trade receivables 10,286 10,718 10,720 89,262 Derivative financial assets — — 852 5,114 Cash and cash equivalents 30,276 244,156 61,854 127,688 Trade and other payables (22,657) (1,609) (137,018) (1,033) Borrowings — (505,779) — (492,018) Derivative financial liabilities — (2,298) — — 18,618 (253,496) (63,592) (270,987) Sensitivity As shown in the table above, the Group is primarily exposed to changes in Euro/GBP and USD/GBP exchange rates. The sensitivity of equity and post-tax profit as at 30 June 2019 was as follows: · 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 £2.1 million lower (2018: £4.2 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 £1.6 million higher (2018: £5.2 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 £21.8 million higher (2018: £17.8 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 £29.6 million lower (2018: £21.7 million lower). (ii) 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 23. 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 a portion of variable rate borrowings from floating rates to fixed rates. 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 reporting date are provided in note 27.2 below. b) Credit risk Credit risk is managed on a Group basis and arises from contract assets, trade receivables, other receivables, favorable derivative financial instruments, and cash and cash equivalents. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected provision for impairment for all trade receivables, other receivables and contract assets. To measure the expected credit losses, trade receivables, other receivables and contract assets have been grouped based on shared risk characteristics and the days past due. Contract assets relate to unbilled revenue and have substantially the same risk characteristics as the trade receivables for the same types of contracts. Gross trade receivables can be analysed by due date and whether or not impaired as follows: 2019 2018 £’000 £’000 Neither past due nor impaired 29,437 111,912 Past due, not impaired 4,303 11,885 Past due, fully impaired 12,954 9,708 Gross trade receivables 46,694 133,505 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 £ 33,740,000 (2018: £123,797,000), £ 18,270,000 (2018: £ 29,214,000) relates to amounts receivable from various other football clubs in relation to player trading. Management considers that, based on historical information about default rates, the current strength of relationships (a number of which are recurring long term relationships), and forward looking information, the credit quality of trade receivables and other receivables that are neither past due nor impaired, and for contract assets, is good. Trade receivables that are past due but not impaired relate to independent customers for whom there is no recent history of default. Accordingly the identified provision for impairment for these receivables was immaterial. The identified provision for impairment of trade receivables that are past due and impaired is 100%. The closing provision for impairment of trade receivables as of 30 June 2019 reconciles to the opening provision for impairment as follows: 2019 2018 £’000 £’000 Provision as of 1 July 9,708 14,113 Increase in provision recognized in profit or loss during the year 985 160 Receivables written off during the year as uncollectible (279) (6,943) Receivables offset against contract liabilities—deferred revenue 2,517 2,591 Foreign exchange losses/(gains) on retranslation recognized in profit or loss during the year 23 (213) Provision as of 30 June 12,954 9,708 Trade receivables and contact assets are written off when there is no reasonable expectation of recovery. The creation and release of provision for impaired receivables have been included in ‘other operating expenses’ in the statement of profit or loss. While other receivables, favorable derivative financial instruments, and cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the identified provision for impairment on these items was immaterial. 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 23. 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 2019, the Group held cash and cash equivalents of £307,637,000 (2018: £242,022,000). The table below analyses the Group’s non-derivative financial liabilities and net-settled derivative financial instruments into relevant maturity groupings based on the remaining period at the reporting 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 1 year 1 and 2 years 2 and 5 years 5 years £’000 £’000 £’000 £’000 Trade and other payables excluding social security and other taxes(1) 217,136 61,542 19,657 — Borrowings 19,024 19,024 57,073 555,441 236,160 80,566 76,730 555,441 Non-trading(2) and net settled derivative financial instruments: Cash outflow 460 460 1,379 — Cash inflow (97) — — — At 30 June 2019 236,523 81,026 78,109 555,441 Trade and other payables excluding social security and other taxes(1) 250,300 67,858 40,280 191 Borrowings 22,449 18,692 56,075 554,448 272,749 86,550 96,355 554,639 Non-trading(2) and net settled derivative financial instruments: Cash inflow (1,600) (748) (2,245) (748) At 30 June 2018 271,149 85,802 94,110 553,891 (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 reporting date. 27.2 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 statement of profit or loss immediately. Amounts previously recognized in other comprehensive income and accumulated in the hedging reserve are subsequently reclassified into the statement of profit or loss in the same accounting period, and within the same statement of profit or loss 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 2019 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 statement of profit or loss immediately (within net finance costs). The table below details the net borrowings being hedged at the reporting date: 2019 2018 $’000 $’000 USD borrowings 650,000 650,000 Hedged USD cash (308,838) (128,500) Net USD debt 341,162 521,500 Hedged future USD revenues (211,153) (307,019) Unhedged USD borrowings 130,009 214,481 Closing exchange rate 1.2718 1.3194 The Group hedges its cash flow interest rate risk where considered appropriate using interest rate swaps. Such interest rate swaps have the economic effect of converting a portion of variable rate borrowings from floating rates to fixed rates. The effective portion of changes in the fair value of the interest rate swap is initially recognized in other comprehensive income, rather than being recognized in the statement of profit or loss immediately. Amounts previously recognized in other comprehensive income and accumulated in the hedging reserve are subsequently reclassified into the statement of profit or loss in the same accounting period, and within the same statement of profit or loss line (i.e. finance costs), as the underlying interest payments, which given the term of the swap will be between July 2019 to June 2024. The following table details the interest rate swaps at the reporting date that are used to hedge borrowings: 2019 2018 Current hedged principal value of loan outstanding ($‘000) 150,000 150,000 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 2019, the fair value of the above interest rate swaps was a liability of £2,298,000 (2018: asset of £4,490,000). The Group also seeks to hedge the majority of the foreign exchange risk on revenue arising as a result of participation in UEFA club competitions, either by using contracted future foreign exchange 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. The Group also seeks to hedge the foreign exchange risk on other contracted future foreign exchange expenses using available foreign exchange cash balances and forward foreign exchange contracts. Details of movements on the hedging reserve are as follows: Future Interest US dollar rate Total, Total, revenues swap Other before tax Tax after tax £’000 £’000 £’000 £’000 £’000 £’000 Balance at 1 July 2016 as previously reported (41,043) (9,710) — (50,753) 17,764 (32,989) Adjustment(1) 172 172 (60) 112 Restated balance at 1 July 2016 (40,871) (9,710) — (50,581) 17,704 (32,877) Exchange differences on hedged foreign exchange risks (11,998) — 124 (11,874) — (11,874) Reclassified to profit or loss (restated(1)) 5,565 — (275) 5,290 — 5,290 Change in fair value — 9,055 — 9,055 — 9,055 Tax relating to above (restated(1)) — — — — (865) (865) Movement recognized in other comprehensive income (6,433) 9,055 (151) 2,471 (865) 1,606 Balance at 30 June 2017 (47,304) (655) (151) (48,110) 16,839 (31,271) Exchange differences on hedged foreign exchange risks 6,522 — (184) 6,338 — 6,338 Reclassified to profit or loss (restated(1)) 13,791 — 123 13,914 — 13,914 Change in fair value — 5,145 — 5,145 — 5,145 Tax relating to above (restated(1)) — — — — (21,684) (21,684) Movement recognized in other comprehensive income 20,313 5,145 (61) 25,397 (21,684) 3,713 Balance at 30 June 2018 (26,991) 4,490 (212) (22,713) (4,845) (27,558) Exchange differences on hedged foreign exchange risks (6,350) — 168 (6,182) — (6,182) Reclassified to profit or loss 6,004 — 246 6,250 — 6,250 Change in fair value — (6,788) — (6,788) — (6,788) Tax relating to above — — — — (1,266) (1,266) Movement recognized in other comprehensive income (346) (6,788) 414 (6,720) (1,266) (7,986) Balance at 30 June 2019 (27,337) (2,298) 202 (29,433) (6,111) (35,544) (1) Comparative amounts have been restated—see note 33 for further details. Based on exchange rates existing as of 30 June 2019, 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 £ 15,093,000 (2018: £ 21,154,000) 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 £ 18,447,000 (2018: £ 25,855,000) before tax. 27.3 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 24.2. As of 30 June 2019, the Group had total borrowings of £511.2 million (2018: £495.8 million). As described in note 23 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 2019, 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. |
Contingent liabilities and cont
Contingent liabilities and contingent assets | 12 Months Ended |
Jun. 30, 2019 | |
Contingent liabilities and contingent assets | |
Contingent liabilities and contingent assets | 28 Contingent liabilities and contingent assets 28.1 Contingent liabilities The Group had contingent liabilities at 30 June 2019 in respect of: (i) 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 Group considers that it is probable that the condition related to the payment will be achieved. The maximum additional amounts that could be payable is £74,321,000 (2018: £66,411,000). No material adjustment was required to the amounts included in the cost of registrations during the year (2018: no material adjustments) and consequently there was no material impact on the amortization of registration charges in the statement of profit or loss (2018: no material impact). As of 30 June 2019, the potential amount payable by type of condition and category of player was: First team squad Other Total £’000 £’000 £’000 Type of condition: MUFC appearances/team success/new contract 35,722 8,805 44,527 International appearances 11,573 22 11,595 Other 17,905 294 18,199 65,200 9,121 74,321 As of 30 June 2018, the potential amount payable by type of condition and category of player was: First team squad Other Total £’000 £’000 £’000 Type of condition: MUFC appearances/team success/new contract 29,142 7,789 36,931 International appearances 11,343 47 11,390 Other 17,685 405 18,090 58,170 8,241 66,411 (ii) We are currently in active discussions with UK tax authorities over a number of tax areas in relation to arrangements with players and players’ representatives. It is possible that in the future, as a result of discussions between the Group and UK tax authorities, as well as discussions UK tax authorities are holding with other stakeholders within the football industry, interpretations of applicable rules will be challenged, which could result in liabilities in relation to these matters. The information usually required by IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’, is not disclosed on the grounds that it is not practicable to be disclosed. 28.2 (i) Under the terms of certain contracts with other football clubs in respect of 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 2019, the amount of such receipt considered to be probable was £707,000 (2018: £2,392,000). |
Commitments
Commitments | 12 Months Ended |
Jun. 30, 2019 | |
Commitments | |
Commitments | 29 Commitments 29.1 Capital commitments As of 30 June 2019, the Group had contracted capital expenditure relating to property, plant and equipment amounting to £3,794,000 (2018: £4,054,000)and to other intangible assets amounting to £nil (2018: £nil). These amounts are not recognized as liabilities. 29.2 (i) The Group leases various offices 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 statement of profit or loss during the year is disclosed in note 5. Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: 2019 2018 £’000 £’000 Within 1 year 1,956 1,756 Later than 1 year but not later than 5 years 2,346 2,739 Later than 5 years 3,785 3,866 8,087 8,361 (ii) The Group leases out its investment properties. The minimum rentals in relation to non-cancellable operating leases are receivable as follows: 2019 2018 £’000 £’000 Within 1 year 2,100 1,278 Later than 1 year but not later than 5 years 5,777 2,866 Later than 5 years 13,994 9,550 21,871 13,694 |
Events occurring after the repo
Events occurring after the reporting period | 12 Months Ended |
Jun. 30, 2019 | |
Events occurring after the reporting period | |
Events occurring after the reporting period | 30 Events occurring after the reporting period 30.1 Registrations The playing registrations of certain footballers have been disposed of on a permanent or temporary basis, subsequent to 30 June 2019, for total proceeds, net of associated costs, of £66,926,000. The associated net book value was £51,901,000. Also subsequent to 30 June 2019, solidarity contributions, sell-on fees and contingent consideration totaling £1,421,000, became receivable in respect of previous playing registration disposals. Subsequent to 30 June 2019 the playing registrations of certain players were acquired or extended for a total consideration, including associated costs, of £99,388,000. Payments are due within the next 5 years. 30.2 Secured term loan facility The Group has a secured term loan facility, the outstanding principal amount of which is $225,000,000. The facility was amended by an amendment and restatement agreement dated 5 August 2019 which became effective on 6 August 2019 to, among other things, extend the expiry date to 6 August 2029. |
Related party transactions
Related party transactions | 12 Months Ended |
Jun. 30, 2019 | |
Related party transactions | |
Related party transactions | 31 Related party transactions Trusts and other entities controlled by six lineal descendants of Mr. Malcolm Glazer collectively own 7.44% 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, 2019 | |
Subsidiaries | |
Subsidiaries | 32 Subsidiaries The Group’s subsidiaries at 30 June 2019 are set out below. The proportion of ownership interest held equals the voting rights held by the Group. % of ownership Name of entity Principal activity interest Red Football Finance Limited* Finance company 100 Red Football Holdings Limited* Holding company 100 Red Football Shareholder Limited Holding company 100 Red Football Joint Venture Limited Holding company 100 Red Football Limited Holding company 100 Red Football Junior Limited Holding company 100 Manchester United Limited Holding company 100 Alderley Urban Investments Limited Property investment 100 Manchester United Commercial Enterprises (Ireland) Limited Dormant company 100 Manchester United Football Club Limited Professional football club 100 Manchester United Women’s Football Club Limited Professional football club 100 Manchester United Interactive Limited Dormant company 100 MU 099 Limited Dormant company 100 MU Commercial Holdings Limited Holding company 100 MU Commercial Holdings Junior Limited Holding company 100 MU Finance Limited Finance company 100 MU RAML Limited Retail and licensing company 100 MUTV Limited Media company 100 RAML USA LLC Retail company 100 * 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. |
Restatement of prior periods fo
Restatement of prior periods following implementation of IFRS 15 | 12 Months Ended |
Jun. 30, 2019 | |
Restatement of prior periods following implementation of IFRS 15 | |
Restatement of prior periods following implementation of IFRS 15 | 33 Restatement of prior periods following implementation of IFRS 15 The Group adopted IFRS 15 ‘Revenue from contracts with customers’ with effect from 1 July 2018. The implementation of IFRS 15 had a cumulative material impact on the Group’s financial statements as at 1 July 2018 and consequently prior year amounts have been restated. The following tables and notes explain how this restatement affected the consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated balance sheet, and consolidated statement of cash flows. Commercial revenue 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 therefore revenue on certain commercial contracts is recognised earlier under IFRS 15. The effect of the retrospective application is an increase in cumulative revenue recognised over the financial years up to and including the year ended 30 June 2018 including a reduction to the amount of revenue recognised during the financial year ended 30 June 2018 only. Broadcasting revenue The adoption of IFRS 15 impacted the recognition of broadcasting revenue in prior year quarters, however, it did not affect the amount of broadcasting revenue recognized for the financial year as a whole. Matchday revenue The adoption of IFRS 15 has no impact on the recognition of matchday revenue. Tax, deferred tax, hedging reserve, retained earnings and deferred revenue The impact of the above changes in revenue recognition had subsequent impact on tax (including deferred tax), the hedging reserve, retained earnings and deferred revenue. Tax—adjustments to the tax expense and deferred tax are directly in line with the adjustments to revenue. Hedging reserve—adjustments to commercial revenue impact the hedging reserve as the underlying US dollar revenue is initially hedged against a portion of the Group’s US dollar net borrowings. Amounts accumulated in the hedging reserve are reclassified to the statement of profit or loss in the period when the hedged revenue is recognized in the statement of profit or loss. Deferred revenue—all other adjustments to revenue impact deferred revenue as the revenue is received or receivable prior to the period in which the revenue is recognised. Consolidated statement of profit or loss for the year ended 30 June 2017 As previously reported Adjustment Restated £’000 £’000 £’000 Commercial revenue 275,471 50 275,521 Broadcasting revenue 194,098 — 194,098 Matchday revenue 111,635 — 111,635 Total revenue 581,204 50 581,254 Operating expenses (511,315) — (511,315) Profit on disposal of intangible assets 10,926 — 10,926 Operating profit 80,815 50 80,865 Finance costs (25,013) — (25,013) Finance income 736 — 736 Net finance costs (24,277) — (24,277) Profit before income tax 56,538 50 56,588 Income tax expense (17,361) (18) (17,379) Profit for the year 39,177 32 39,209 Earnings per share during the year: Basic earnings per share (pence) 23.88 0.02 23.90 Diluted earnings per share (pence) 23.82 0.02 23.84 Consolidated statement of comprehensive income for the year ended 30 June 2017 As previously reported Adjustment Restated £’000 £’000 £’000 Profit for the year 39,177 32 39,209 Other comprehensive income: Items that may be subsequently reclassified to profit or loss Movements on hedges 1,946 525 2,471 Tax expense relating to movements on hedges (681) (184) (865) Other comprehensive income for the year, net of tax 1,265 341 1,606 Total comprehensive income for the year 40,442 373 40,815 Consolidated balance sheet as of 30 June 2017 As previously reported Adjustment Restated £’000 £’000 £’000 ASSETS Non-current assets Property, plant and equipment 244,738 — 244,738 Investment properties 13,966 — 13,966 Intangible assets 717,544 — 717,544 Deferred tax asset 142,107 (622) 141,485 Trade receivables 15,399 — 15,399 Derivative financial instruments 1,666 — 1,666 1,135,420 (622) 1,134,798 Current assets Inventories 1,637 — 1,637 Prepayments 13,500 — 13,500 Contract assets — accrued revenue 28,755 — 28,755 Trade receivables 61,207 — 61,207 Other receivables 270 — 270 Derivative financial instruments 3,218 — 3,218 Cash and cash equivalents 290,267 — 290,267 398,854 — 398,854 Total assets 1,534,274 (622) 1,533,652 EQUITY AND LIABILITIES Equity Share capital 53 — 53 Share premium 68,822 — 68,822 Merger reserve 249,030 — 249,030 Hedging reserve (31,724) 453 (31,271) Retained earnings 191,436 2,017 193,453 477,617 2,470 480,087 Non-current liabilities Deferred tax liabilities 20,828 708 21,536 Contract liabilities—deferred revenue 39,648 — 39,648 Trade and other payables 83,587 — 83,587 Borrowings 497,630 — 497,630 Derivative financial instruments 655 — 655 642,348 708 643,056 Current liabilities Contract liabilities—deferred revenue 207,245 (3,800) 203,445 Trade and other payables 190,315 — 190,315 Tax liabilities 9,772 — 9,772 Borrowings 5,724 — 5,724 Derivative financial instruments 1,253 — 1,253 414,309 (3,800) 410,509 Total equity and liabilities 1,534,274 (622) 1,533,652 Consolidated statement of cash flows for the year ended 30 June 2017 The implementation of IFRS 15 affected elements of cash generated from operations but did not affect the overall total. Other than that, the implementation of IFRS 15 had no impact on the consolidated statement of cash flows. Cash generated from operations for the year ended 30 June 2017 As previously reported Adjustment Restated £’000 £’000 £’000 Profit before tax 56,538 50 56,588 Depreciation 10,228 — 10,228 Impairment reversal (4,753) — (4,753) Amortization 124,434 — 124,434 Profit on disposal of intangible assets (10,926) — (10,926) Net finance costs 24,277 — 24,277 Loss on disposal of property, plant and equipment 43 43 Non-cash employee benefit expense — equity-settled share-based payments 2,187 — 2,187 Foreign exchange losses on operating activities 2,646 — 2,646 Reclassified from hedging reserve 4,765 525 5,290 Changes in working capital: Inventories (711) — (711) Prepayments 895 — 895 Contract assets—accrued revenue 12,198 — 12,198 Trade receivables 5,089 — 5,089 Other receivables (657) — (657) Contract liabilities—deferred revenue 19,151 (575) 18,576 Trade and other payables 6,355 — 6,355 Cash generated from operations 251,759 — 251,759 Consolidated statement of profit or loss for the year ended 30 June 2018 As previously reported Adjustment Restated £’000 £’000 £’000 Commercial revenue 276,099 (264) 275,835 Broadcasting revenue 204,137 — 204,137 Matchday revenue 109,786 — 109,786 Total revenue 590,022 (264) 589,758 Operating expenses (564,006) — (564,006) Profit on disposal of intangible assets 18,119 — 18,119 Operating profit 44,135 (264) 43,871 Finance costs (24,233) — (24,233) Finance income 6,195 — 6,195 Net finance costs (18,038) — (18,038) Profit before income tax 26,097 (264) 25,833 Income tax expense (63,367) (95) (63,462) Loss for the year (37,270) (359) (37,629) Loss per share during the year: Basic loss per share (pence) (22.70) (0.22) (22.92) Diluted loss per share (pence) (22.70) (0.22) (22.92) Consolidated statement of comprehensive income for the year ended 30 June 2018 As previously reported Adjustment Restated £’000 £’000 £’000 Loss for the year (37,270) (359) (37,629) Other comprehensive income: Items that may be subsequently reclassified to profit or loss Movements on hedges 25,878 (481) 25,397 Tax expense relating to movements on hedges (21,892) 208 (21,684) Other comprehensive income for the year, net of tax 3,986 (273) 3,713 Total comprehensive loss for the year (33,284) (632) (33,916) Consolidated balance sheet as of 30 June 2018 As previously reported Adjustment Restated £’000 £’000 £’000 ASSETS Non-current assets Property, plant and equipment 245,401 — 245,401 Investment properties 13,836 — 13,836 Intangible assets 799,640 — 799,640 Deferred tax asset 63,974 (642) 63,332 Trade receivables 4,724 — 4,724 Tax receivable 547 — 547 Derivative financial instruments 4,807 — 4,807 1,132,929 (642) 1,132,287 Current assets Inventories 1,416 — 1,416 Prepayments 10,862 — 10,862 Contract assets—accrued revenue 38,018 — 38,018 Trade receivables 119,073 — 119,073 Other receivables 107 — 107 Tax receivable 800 — 800 Derivative financial instruments 1,159 — 1,159 Cash and cash equivalents 242,022 — 242,022 413,457 — 413,457 Total assets 1,546,386 (642) 1,545,744 EQUITY AND LIABILITIES Equity Share capital 53 — 53 Share premium 68,822 — 68,822 Merger reserve 249,030 — 249,030 Hedging reserve (27,738) 180 (27,558) Retained earnings 135,099 1,658 136,757 425,266 1,838 427,104 Non-current liabilities Deferred tax liabilities 28,559 575 29,134 Contract liabilities—deferred revenue 37,085 — 37,085 Trade and other payables 104,271 — 104,271 Borrowings 486,694 — 486,694 656,609 575 657,184 Current liabilities Contract liabilities—deferred revenue 183,567 (3,055) 180,512 Trade and other payables 267,996 — 267,996 Tax liabilities 3,874 — 3,874 Borrowings 9,074 — 9,074 464,511 (3,055) 461,456 Total equity and liabilities 1,546,386 (642) 1,545,744 Consolidated statement of cash flows for the year ended 30 June 2018 The implementation of IFRS 15 affected elements of cash generated from operations but did not affect the overall total. Other than that, the implementation of IFRS 15 had no impact on the consolidated statement of cash flows. Cash generated from operations for the year ended 30 June 2018 As previously reported Adjustment Restated £’000 £’000 £’000 Profit before tax 26,097 (264) 25,833 Depreciation 10,755 — 10,755 Amortization 138,380 — 138,380 Profit on disposal of intangible assets (18,119) — (18,119) Net finance costs 18,038 — 18,038 Profit on disposal of property, plant and equipment (81) (81) Equity-settled share-based payments 2,915 — 2,915 Foreign exchange losses on operating activities 994 — 994 Reclassified from hedging reserve 14,395 (481) 13,914 Changes in working capital: Inventories 221 — 221 Prepayments 2,638 — 2,638 Contract assets—accrued revenue (9,263) — (9,263) Trade receivables (64,492) — (64,492) Other receivables 163 — 163 Contract liabilities—deferred revenue (26,241) 745 (25,496) Trade and other payables 23,204 — 23,204 Cash generated from operations 119,604 — 119,604 |
Additional information-Financia
Additional information-Financial Statement Schedule I | 12 Months Ended |
Jun. 30, 2019 | |
Additional information-Financial Statement Schedule I | |
Additional information-Financial Statement Schedule I | 34 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 2019 exceeded the 25% threshold. As of 30 June 2019, the Group had total borrowings of £511.2 million (2018: £495.8 million). As described in note 23 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 2019, 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 2019, 2018 and 2017 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 2019, cash dividends equivalent to $0.18 (2018: $0.18; 2017: $0.18) per share were declared and paid by the Company. The pounds sterling equivalents were £0.14 (2018: £ 0.13; 2017: £0.14 ) per share. Condensed statement of profit or loss of the Company Year ended 30 June 2019 2018 2017 £’000 £’000 £’000 Operating expenses (3,455) (3,423) (2,013) Income from shares in group undertakings 23,326 21,982 23,295 Profit before income tax 19,871 18,559 21,282 Income tax expense — — — Profit for the year 19,871 18,559 21,282 There were no items of other comprehensive loss or income in the years ended 30 June 2019, 2018 or 2017 and therefore no statement of comprehensive income has been presented. Condensed balance sheet of the Company As of 30 June 2019 2018 £’000 £’000 ASSETS Non-current assets Investment in subsidiaries 319,265 319,265 319,265 319,265 Current assets Other receivables 1,108 1,314 Cash and cash equivalents 116 340 1,224 1,654 Total assets 320,489 320,919 EQUITY AND LIABILITIES Equity Share capital 53 53 Share premium 68,822 68,822 Retained earnings 245,050 247,806 313,925 316,681 Current liabilities Other payables 6,564 4,238 6,564 4,238 Total equity and liabilities 320,489 320,919 Condensed statement of changes in equity of the Company Share Share Retained capital premium earnings Total equity £’000 £’000 £’000 £’000 Balance at 1 July 2016 52 68,822 248,140 317,014 Profit for the year — — 21,282 21,282 Total comprehensive income for the year — — 21,282 21,282 Equity-settled share based payments — — 2,187 2,187 Dividends paid — — (23,295) (23,295) Proceeds from shares issued 1 — — 1 Balance at 30 June 2017 53 68,822 248,314 317,189 Profit for the year — — 18,559 18,559 Total comprehensive income for the year — — 18,559 18,559 Equity-settled share based payments — — 2,915 2,915 Dividends paid — — (21,982) (21,982) Balance at 30 June 2018 53 68,822 247,806 316,681 Profit for the year — — 19,871 19,871 Total comprehensive income for the year — — 19,871 19,871 Equity-settled share based payments — — 699 699 Dividends paid — — (23,326) (23,326) Balance at 30 June 2019 53 68,822 245,050 313,925 Condensed statement of cash flows of the Company Year ended 30 June 2019 2018 2017 £’000 £’000 £’000 Cash flows from operating activities Profit before tax 19,871 18,559 21,282 Adjustments for: Non-cash employee benefit expense — equity-settled share-based payments 699 2,915 2,187 Foreign exchange (gains)/losses on operating activities (37) 114 42 Changes in working capital: Other receivables 206 (191) (998) Other payables 2,326 517 1,125 Net cash inflow from operating activities 23,065 21,914 23,638 Cash flows from financing activities Dividends paid (23,326) (21,982) (23,295) Net cash outflow from financing activities (23,326) (21,982) (23,295) Net (decrease)/increase in cash and cash equivalents (261) (68) 343 Cash and cash equivalents at beginning of year 340 522 221 Exchange losses on cash and cash equivalents 37 (114) (42) Cash and cash equivalents at end of year 116 340 522 The following reconciliations are provided as additional information to satisfy the Schedule I SEC requirements for parent‑only financial information. Restated(1) Restated(1) 2019 2018 2017 £’000 £’000 £’000 IFRS profit/(loss) reconciliation: Parent only — IFRS profit for the year 19,871 18,559 21,282 Additional (loss)/profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost (990) (56,188) 17,927 Consolidated IFRS profit/(loss) for the year 18,881 (37,629) 39,209 IFRS equity reconciliation: Parent only—IFRS equity 313,925 316,681 317,189 Additional profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost 101,277 110,423 162,898 Consolidated—IFRS equity 415,202 427,104 480,087 (1) Comparative amounts have been restated—see note 33 for further details. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Summary of significant accounting policies | |
Basis of preparation | 2.1 Basis of preparation (i) The consolidated financial statements of Manchester United plc have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and interpretations issued by the IFRS Interpretations Committee ("IFRS IC") applicable to companies reporting under IFRS. The financial statements comply with IFRS as issued by the International Accounting Standards Board (“IASB”). (ii) The consolidated financial statements have been prepared on a historical cost basis, 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 hedge accounting applies. (iii) The Group has applied the following standards and amendments for the first time for the annual reporting period commencing 1 July 2018: · IFRS 9, “Financial instruments”, addresses the classification, measurement and recognition of financial assets and financial liabilities. The implementation of IFRS 9 did not have a material impact on the Group’s financial statements as at 1 July 2018. The new standard introduced expanded disclosure requirements and changes in presentation. These have changed the nature and extent of the Group’s disclosures about its financial instruments. · 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 implementation of IFRS 15 did have a material impact on the Group’s financial statements as at 1 July 2018 and consequently prior year amounts have been restated. Further details can be found in note 33. (iv) Certain new standards and interpretations have been published that are not mandatory for 30 June 2019 reporting periods and have not been early adopted by the Group. The Group’s assessment of the impact of these new standards and interpretations is set out below. · IFRS 16, “Leases” · The Group will adopt IFRS 16 from 1 July 2019. IFRS 16 introduces a single lease accounting model, requiring a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The lessee is required to recognize a right-of-use asset representing the right to use the underlying asset, and a lease liability representing the obligation to pay lease payments. Thus, leases classified as operating leases with lease payments recorded in the consolidated statement of profit or loss under the existing accounting policy will be included in the consolidated balance sheet. · The Group has elected to apply the ‘simplified approach’ on initial adoption of IFRS 16, consequently comparative information will not be restated. The Group has also elected to apply the following transitional practical expedients: · lease liabilities will be measured at the present value of the remaining lease payments, discounted using the Group’s incremental borrowing rate as at 1 July 2019; · right-of-use assets will be measured at an amount equal to the lease liability. · The new treatment of leases will result in an increase in non-current assets and financial liabilities as these leases are capitalised as well as increasing underlying EBITDA, offset by an increase in depreciation and an increase in finance charges. This will result in a higher operating profit. The depreciation charge is constant over the lease period, but finance charges decrease as the remaining lease liability decreases, resulting in a net reduction in profit before tax in the early part of a lease arrangement but a positive profit impact towards the end of the contract in contrast to the typical straight-line treatment of existing operating lease expenses. · The Group expects to recognise right-of-use assets of approximately £6.0 million on 1 July 2019 and lease liabilities of the same amount. The Group expects that profit before tax for the year ending 30 June 2020 will decrease by approximately £0.1 million as a result of adopting the new standard. Adjusted EBITDA and operating profit are expected to increase by approximately £1.7 million. Operating cash flows will increase and financing cash flows decrease by £1.6 million as repayment of the principal portion of the lease liabilities will be classified as cash flows from financing activities. · The difference between the operating lease commitment disclosure in note 29.2 (£8.1 million) and the above IFRS 16 lease liability balances is primarily due to the fact that the IFRS 16 lease liability balances are discounted. · The Group’s activities as a lessor are not expected to be materially impacted by the new standard. There are no other standards that are not yet effective and that would be expected to have a material impact on the Group in the future reporting periods or on foreseeable future transactions. |
Principles of consolidation and equity accounting | 2.2 Principles of consolidation and equity accounting 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 to direct the activities of 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 acquisition method of accounting is used to account for business combinations by the Group. The consideration transferred for the acquisition of a subsidiary comprises the: · fair values of the assets transferred · liabilities incurred to the former owners of the acquired business · equity interests issued by the Group · fair value of any asset or liability resulting from a contingent consideration arrangement, and · fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognizes any non‑controlling interest in the acquired entity on an acquisition‑by‑acquisition basis either at fair value or at the non‑controlling interest’s proportionate share of the acquired entity's net identifiable assets. Acquisition‑related costs are expensed as incurred. The excess of the: · consideration transferred, · the amount of any non‑controlling interest in the acquired entity, and · acquisition date fair value of any previous interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in profit or loss as a bargain purchase. Inter-company transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. 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 men's and women's 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 statement of profit or loss, 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 properties, 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 (i) 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 functional and presentation currency. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss. They are deferred in other comprehensive income if they relate to qualifying cash flow hedges. Foreign exchange gains and losses that relate to unhedged borrowings are presented in the statement of profit or loss, within finance costs or finance income. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within operating expenses. (iii) Group companies The results and financial position of foreign operations (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: · assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet · income and expenses for each statement of profit or loss and statement of comprehensive income are translated at average exchange rates (unless this 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 the transactions), and · all resulting exchange differences are recognized in other comprehensive income. (iv) Exchange rates The most important exchange rates per £1.00 that have been used in preparing the financial statements are: Closing rate Average rate 2019 2018 2017 2019 2018 2017 Euro 1.1170 1.1309 1.1379 1.1346 1.1327 1.1663 US Dollar 1.2718 1.3194 1.2988 1.2959 1.3465 1.2774 |
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 transaction price can be determined; when it is probable that it will collect the consideration to which it is entitled; and when specific performance obligations have been met for each of the Group’s activities as described below. In instances where the transaction price contains an element of variable or contingent consideration, revenue is recognized based on the most likely amount expected to be received, but only to the extent that it is highly probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable or contingent consideration is subsequently resolved. (i) 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 men’s first team undertaking tours. 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 as performance obligations are satisfied evenly over time (i.e. on a straight-line basis). In respect of contracts with multiple performance obligations, the Group allocates the total consideration receivable to each separately identifiable performance obligation based on their relative fair values, and then recognizes the allocated revenue as performance obligations are satisfied evenly over time (i.e. on a straight-line basis) . Retail revenue is recognized when control of the products has transferred, being at the point of sale to the customer. License revenue in respect of right to access licences is recognized in line with the performance obligations included within the contract, in instances where these remain the same over the duration of the contract, revenue is recognized evenly on a time elapsed (i.e. straight-line) basis. Sales-based royalty revenue is recognized only when the subsequent sale is made. (ii) 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 each performance obligation is satisfied i.e. as each Premier League match is played), facility fees for live coverage and highlights of domestic home and away matches (which are recognized when the respective performance obligation is satisfied i.e. the respective match is played), and merit awards (which, being variable consideration, are recognized when each performance obligation is satisfied i.e. as each Premier League match is played, based on management’s estimate of where the men’s first team will finish at the end of the football season i.e. the most likely outcome). Distributions from UEFA relating to participation in European 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), fixed amounts for participation in individual matches (which are recognized when the matches are played) and an individual club coefficient share (which is recognized over the group stage matches). (iii) Matchday revenue is recognized based on matches played throughout the year with revenue from each match (including season ticket allocated amounts) only being recognized when the performance obligation is satisfied i.e. 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. |
Employee benefits | 2.6 Employee benefits (i) Liabilities for wages and salaries, including non-monetary benefits and annual leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service, are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as accruals and classified as current liabilities in the balance sheet. (ii) 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. They are subsequently charged to profit or loss (as employee benefit 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 employee benefit expenses in profit or loss on a straight-line basis over the current financial year. (iii) The Group is one of a number of participating employers in The Football League Limited Pension and Life Assurance Scheme (‘the scheme’—see note 26.1). 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 statement of profit or loss 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 recognized as an employee benefit expenses when they are due. (iv) 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 reporting 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 profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity. 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 reporting 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 25. |
Operating leases | 2.7 Operating leases Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease. Lease income from operating leases where the Group is lessor is recognized in income on a straight-line basis over the lease term. The respective leased assets are included in the balance sheet based on their nature. |
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. |
Income tax | 2.9 Income tax The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current income tax expense or credit is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period 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 corporate income tax purposes and is subject to US federal corporate 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 income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognized only if it is probable that future taxable profit will be available to utilize those temporary differences and losses. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current and deferred tax is recognized in profit or loss, 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. |
Dividend distribution | 2.10 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. |
Impairment of assets | 2.11 Goodwill is not subject to amortization and is tested annually for impairment or more frequently if events or changes in circumstances indicate it might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in profit or loss for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use, and is calculated with reference to future discounted cash flows that the asset is expected to generate when considered as part of a cash-generating unit. Assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. If an impairment 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. 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 men’s first team again, for example, a player sustaining a career threatening injury or is permanently removed from the men’s 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. |
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. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. The depreciation methods and periods used by the Group are disclosed in note 13. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss. Depreciation methods and useful lives Land is not depreciated. With the exception of freehold property acquired before 1 August 1999, depreciation is calculated using the straight-line method to allocate cost, net of residual values, 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%. See note 2.12 for the other accounting policies relevant to property, plant and equipment, and note 2.11 for the Group’s policy regarding impairments. |
Investment property | Investment properties are held for long-term rental yields or for capital appreciation or both, and are not occupied by the Group. Investment properties are initially measured at cost (comprising the purchase price, after deducting discounts and rebates, and any directly attributable costs) and are subsequently carried at cost less accumulated depreciation and any provision for impairment. Investment properties are depreciated using the straight-line method over 50 years. Investment properties were externally valued as of 30 June 2019 in accordance with the Royal Institution of Chartered Surveyors (“RICS”) Valuation—Professional Standards, January 2014. The fair value of investment properties as of 30 June 2019 was £27,633,000 (2018: £16,450,000). 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 properties is determined using inputs that are not based on observable market data, consequently the asset is categorized as Level 3 (see note 27.4). |
Intangible assets | 2.14 Intangible assets The cost of and amortization methods and periods used by the Group for goodwill, registrations and other intangible assets are disclosed in note 15. The assets’ useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. 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 the end of a reporting period. 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 profit or loss 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 profit or loss when receipt is virtually certain. Loan income on players temporarily loaned to other football clubs is recognized separately in profit or loss within profit on disposal of intangible assets. Cost of and amortization methods and useful lives Goodwill arose largely in relation to the Group’s acquisition of Manchester United Limited in 2005 and represents the excess of the cost of the acquisition over the fair value of the Group’s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill is not amortized but it is tested annually for impairment or more frequently if events or changes in circumstances indicate it might be impaired. Goodwill is carried at cost less accumulated impairment losses. When goodwill is tested for impairment the recoverable amount of the cash-generating unit is 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. 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, Premier League 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 Premier League), once payment becomes probable. 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. Registrations costs are fully amortized using the straight-line method over the period covered by the player’s and key football management staff contract. 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. Other intangible assets comprise website, mobile applications, software 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, mobile applications and software 3 years Trademark registrations 10 years See note 2.14 for the other accounting policies relevant to intangible assets, and note 2.11 for the Group’s policy regarding impairments. |
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 estimated costs necessary to make the sale. |
Trade receivables | Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Trade receivables are recognized initially at fair value. The Group holds trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest method, less provision for impairment. Details about the Group’s impairment policies and the calculation of the provision for impairment are provided in note 27.1(b). If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets. |
Derivatives and hedging activities | 2.17 Derivatives and hedging activities Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Group designates certain derivatives as hedges of a particular risk associated with the cash flows of recognized assets and liabilities and highly probable forecast transactions (cash flow hedges). At inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged items, including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking its hedge transactions. The fair values of derivative financial instruments are disclosed in note 19. Movements in the hedging reserve are shown in the statement of changes in equity. The full fair value of a derivative is classified as a non-current asset or liability when the remaining maturity of the item is more than 12 months, it is classified as a current asset or liability when the remaining maturity of the item is less than 12 months. (i) 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 profit or loss. 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 profit or loss immediately. The foreign exchange gains or losses arising on re-translation of the Group’s unhedged US dollar borrowings are recognized in profit or loss 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 a portion of variable rate 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 profit or loss immediately. The gain or loss relating to any ineffective portion is recognized in profit or loss immediately. Amounts previously recognized in other comprehensive income and accumulated in the hedging reserve within equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for example, when the forecast transaction that is hedged takes place). When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss existing in equity at that time remains in equity and is reclassified when the forecast transaction is ultimately recognized in profit or loss. When the forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately reclassified to profit or loss. (ii) Certain derivative instruments are not designated as hedging instruments and consequently do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognized immediately in profit or loss. |
Cash and cash equivalents | 2.18 For the purposes of presentation in the consolidated statement of cash flows, cash and cash equivalents includes cash in hand, deposits held at call with financial institutions, and, if applicable, other short-term highly liquid investments with original maturities of three months or less. |
Share capital and reserves | 2.19 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 | Trade and other payables are liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method. They are classified as current liabilities if payment is due within one year or less. If not they are presented as non-current liabilities. |
Borrowings | 2.21 Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss 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. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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 2019 2018 2017 2019 2018 2017 Euro 1.1170 1.1309 1.1379 1.1346 1.1327 1.1663 US Dollar 1.2718 1.3194 1.2988 1.2959 1.3465 1.2774 |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Revenue from contracts with customers. | |
Schedule of revenue derived from principal activity | Restated(1) Restated(1) 2019 2018 2017 £’000 £’000 £’000 Sponsorship 173,010 172,982 171,530 Retail, merchandising, apparel & products licensing revenue 102,083 102,853 103,991 Commercial 275,093 275,835 275,521 Domestic competitions 148,018 155,123 145,605 European competitions 83,138 38,276 39,541 Other 10,054 10,738 8,952 Broadcasting 241,210 204,137 194,098 Matchday 110,819 109,786 111,635 627,122 589,758 581,254 (1) Comparative amounts have been restated—see note 33 for further details. |
Schedule of revenue derived from entities accounting for more than 10% of revenue | Restated(1) 2019 2018 2017 £’000 £’000 £’000 Premier League 150,959 155,932 147,875 UEFA 83,138 <10 % <10 % adidas 78,813 79,015 79,214 General Motors (Chevrolet) <10 % <10 % 59,446 (1) Comparative amounts have been restated—see note 33 for further details. |
Schedule of assets and liabilities related to contracts with customers | Current contract assets —accrued revenue £’000 At 1 July 2017 28,755 Recognized in revenue during the year 38,018 Cash received during the year (28,755) At 30 June 2018 38,018 Recognized in revenue during the year 39,532 Cash received during the year (38,018) At 30 June 2019 39,532 Current contract Non-current contract Total contract liabilities — liabilities— liabilities— deferred revenue deferred revenue deferred revenue £’000 £’000 £’000 At 1 July 2017 as previously reported (207,245) (39,648) (246,893) Adjustment(1) 3,800 — 3,800 Restated at 1 July 2017 (203,445) (39,648) (243,093) Recognized in revenue during the year 203,445 — 203,445 Cash received during the year (177,426) (523) (177,949) Reclassified to current during the year (3,086) 3,086 — At 30 June 2018 (180,512) (37,085) (217,597) Recognized in revenue during the year 180,512 — 180,512 Cash received during the year (180,494) (5,921) (186,415) Reclassified to current during the year (9,652) 9,652 — At 30 June 2019 (190,146) (33,354) (223,500) (1) Comparative amounts have been restated—see note 33 for further details. |
Operating expenses (Tables)
Operating expenses (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Operating expenses | |
Schedule of operating expenses | 2019 2018 2017 £’000 £’000 £’000 Employee benefit expenses (note 7) (332,356) (295,935) (263,464) Operating lease costs (1,974) (1,785) (2,316) Auditors’ remuneration: audit of parent company and consolidated financial statements (28) (28) (27) Auditors’ remuneration: audit of the Company’s subsidiaries (489) (472) (476) Auditors’ remuneration: tax compliance services (160) (212) (392) Auditors’ remuneration: other services (45) (184) (456) Foreign exchange gains/(losses) on operating activities 76 (994) (2,646) Gain/(loss) on disposal of property, plant and equipment — 81 (43) Depreciation — property, plant and equipment (note 13) (11,569) (10,625) (10,106) Depreciation—investment properties (note 14) (157) (130) (122) Impairment—investment properties (note 14) (1,124) — — Amortization (note 15) (129,154) (138,380) (124,434) Sponsorship, other commercial and broadcasting costs (23,092) (25,907) (28,491) External matchday costs (20,317) (24,193) (26,892) Property costs (21,211) (21,620) (19,329) Other operating expenses (individually less than £10,000,000) (41,737) (41,705) (36,874) Exceptional items (note 6) (19,599) (1,917) 4,753 (602,936) (564,006) (511,315) |
Exceptional items (Tables)
Exceptional items (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Exceptional items | |
Schedule of exceptional items | 2019 2018 2017 £’000 £’000 £’000 Compensation paid for loss of office (19,599) — — Football League pension scheme deficit (note 26) — (1,917) — Impairment reversal—registrations (note 15) — — 4,753 (19,599) (1,917) 4,753 |
Employee benefit expenses (Tabl
Employee benefit expenses (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Employee benefit expenses | |
Schedule of employee benefit expenses | 2019 2018 2017 £’000 £’000 £’000 Wages and salaries (including bonuses) (293,424) (255,637) (229,605) Social security costs (34,799) (31,396) (27,334) Share-based payments (note 25) (1,251) (6,216) (4,090) Pension costs—defined contribution schemes (note 26.2) (2,882) (2,686) (2,435) (332,356) (295,935) (263,464) |
Schedule of average number of employees | 2019 2018 2017 Number Number Number By activity: Football—men's and women's players 104 81 74 Football—technical and coaching 163 165 136 Commercial 114 121 120 Media 85 87 90 Administration and other 474 468 445 Average number of employees 940 922 865 |
Schedule of compensation paid or payable to key management for employee services | 2019 2018 2017 £’000 £’000 £’000 Short-term employee benefits (9,961) (7,620) (8,601) Share-based payments (748) (5,275) (3,654) Post-employment benefits (20) (20) (71) (10,729) (12,915) (12,326) |
Profit on disposal of intangi_2
Profit on disposal of intangible assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Profit on disposal of intangible assets | |
Schedule of profit on disposal of intangible assets | 2019 2018 2017 £’000 £’000 £’000 Profit on disposal of registrations 24,720 14,709 9,876 Player loan income 1,079 3,410 1,050 25,799 18,119 10,926 |
Net finance costs (Tables)
Net finance costs (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Net finance costs | |
Schedule of net finance costs | 2019 2018 2017 £’000 £’000 £’000 Interest payable on bank loans and overdrafts (1,162) (1,458) (1,502) Interest payable on secured term loan facility and senior secured notes (18,351) (17,567) (18,784) Amortization of issue costs on secured term loan facility and senior secured notes (647) (627) (608) Foreign exchange (losses)/gains on retranslation of unhedged US dollar borrowings (2,650) — 1,816 Unwinding of discount relating to registrations (2,280) (3,492) (2,401) Fair value movements on derivative financial instruments: Embedded foreign exchange derivatives (380) (1,089) (3,534) Total finance costs (25,470) (24,233) (25,013) Interest receivable on short-term bank deposits 2,822 1,243 736 Foreign exchange gains on retranslation of unhedged US dollar borrowings — 4,952 — Hedge ineffectiveness on cash flow hedges 139 — — Total finance income 2,961 6,195 736 Net finance costs (22,509) (18,038) (24,277) |
Income tax expense (Tables)
Income tax expense (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income tax expense | |
Schedule of income tax expense | Restated(1) Restated(1) 2019 2018 2017 £’000 £’000 £’000 Current tax: Current tax on profit for the year (498) (1,809) (19,722) Adjustment in respect of previous years 229 2,590 (2,651) Foreign tax (214) (723) (2,103) Total current tax (expense)/credit (483) 58 (24,476) Deferred tax: US deferred tax: Origination and reversal of temporary differences (3,452) (9,371) (3,379) Adjustment in respect of previous years 776 (1,787) 1,782 Impact of change in US federal corporate income tax rate on opening balance(2) — (48,954) — Total US deferred tax expense (note 16) (2,676) (60,112) (1,597) UK deferred tax: Origination and reversal of temporary differences (5,515) (3,650) 6,161 Adjustment in respect of previous years 79 242 938 Impact of change in UK corporation tax rate — — 1,595 Total UK deferred tax (expense)/credit (note 16) (5,436) (3,408) 8,694 Total deferred tax (expense)/credit (8,112) (63,520) 7,097 Total income tax expense (8,595) (63,462) (17,379) |
Schedule of reconciliation of the total income tax expense | Restated(1) Restated(1) 2019 2018 2017 £’000 £’000 £’000 Profit before tax 27,476 25,833 56,588 Profit before tax multiplied by weighted average US federal corporate income tax rate of 21.0% (2018: 28.0%; 2017: 35.0%) (5,770) (7,233) (19,806) Tax effects of: Adjustment in respect of previous years 1,085 923 69 Difference in tax rates on non-US operations 63 491 244 Foreign exchange gains on US dollar denominated tax basis 1,311 238 2,362 Expenses not deductible for tax purposes (3,093) (695) (248) Impact of change in US federal corporate income tax rate on opening balance(2) — (48,954) — Re-measurement of unrealized foreign exchange US deferred tax asset (3) — (8,795) — Re-measurement of foreign tax credit US deferred tax asset(4) (2,191) 1,637 — One time mandatory US tax charge — (1,074) — Total income tax expense (8,595) (63,462) (17,379) (1) Comparative amounts have been restated—see note 33 for further details. (2) The deferred tax expense for the year ended 30 June 2018 included a non-cash, tax accounting write-off of £49.0 million following the 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 then existing US deferred tax position. (3) It is no longer deemed probable that the cumulative unrealized foreign exchange gains or losses 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 expense of £8.8 million in the year ended 30 June 2018. Unrealized foreign exchange gains or losses arising on USD denominated debt are now treated as permanent differences within expenses not deductible for tax purposes. (4) The deferred tax asset associated with foreign tax credits is continuously re-measured. This has resulted in a write-off of £2.2 million (2018: write back of £1.6 million; 2017: £nil). |
Schedule of amounts relating to tax recognized directly in other comprehensive income | Restated(1) Restated(1) 2019 2018 2017 £’000 £’000 £’000 US deferred tax (note 16) (2,208) (17,494) (1,860) UK deferred tax (note 16) 2,842 (4,190) (15,256) Total deferred tax 634 (21,684) (17,116) Current tax (1,900) — 16,251 Total income tax expense recognized in other comprehensive income (1,266) (21,684) (865) (1) Comparative amounts have been restated—see note 33 for further details. |
Earnings_(loss) per share (Tabl
Earnings/(loss) per share (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Earnings/(loss) per share | |
Schedule of earnings/(loss) per share | Restated(1) Restated(1) 2019 2018 2017 Profit/(loss) for the year (£’000) 18,881 (37,629) 39,209 Basic earnings/(loss) per share (pence) 11.48 (22.92) 23.90 Diluted earnings/(loss) per share (pence)(2) 11.47 (22.92) 23.84 (1) Comparative amounts have been restated—see note 33 for further details. (2) 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 2019 and 2017, potential ordinary shares have been treated as dilutive, as their inclusion in the diluted earnings per share calculation decreases earnings per share. |
Schedule of weighted average number of shares | 2019 2018 2017 Number Number Number ‘000 ‘000 ‘000 Class A ordinary shares 40,526 40,195 40,025 Class B ordinary shares 124,000 124,000 124,000 Weighted average number of ordinary shares used as the denominator in calculating basic earnings/(loss) per share 164,526 164,195 164,025 Adjustment for calculation of diluted earnings/(loss) per share assumed conversion into Class A ordinary shares 140 415 468 Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings/(loss) per share 164,666 164,610 164,493 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure of property, plant and equipment | |
Schedule of property, plant and equipment | Freehold Plant and Fixtures property machinery and fittings Total £’000 £’000 £’000 £’000 At 1 July 2017 Cost 269,372 34,475 50,236 354,083 Accumulated depreciation (46,744) (31,090) (31,511) (109,345) Net book amount 222,628 3,385 18,725 244,738 Year ended 30 June 2018 Opening net book amount 222,628 3,385 18,725 244,738 Additions — 2,605 8,706 11,311 Disposals (5) — (18) (23) Depreciation charge (3,288) (1,821) (5,516) (10,625) Closing net book amount 219,335 4,169 21,897 245,401 At 30 June 2018 Cost 269,367 34,790 57,800 361,957 Accumulated depreciation (50,032) (30,621) (35,903) (116,556) Net book amount 219,335 4,169 21,897 245,401 Year ended 30 June 2019 Opening net book amount 219,335 4,169 21,897 245,401 Additions 16 3,573 8,611 12,200 Transfers (241) 4 237 — Depreciation charge (3,284) (2,589) (5,696) (11,569) Closing net book amount 215,826 5,157 25,049 246,032 At 30 June 2019 Cost 268,981 34,845 64,806 368,632 Accumulated depreciation (53,155) (29,688) (39,757) (122,600) Net book amount 215,826 5,157 25,049 246,032 |
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 |
Investment properties (Table)
Investment properties (Table) | 12 Months Ended |
Jun. 30, 2019 | |
Investment properties | |
Schedule of investment property | £’000 At 1 July 2017 Cost 19,769 Accumulated depreciation and impairment (5,803) Net book amount 13,966 Year ended 30 June 2018 Opening net book amount 13,966 Depreciation charge (130) Closing net book amount 13,836 At 30 June 2018 Cost 19,769 Accumulated depreciation and impairment (5,933) Net book amount 13,836 Year ended 30 June 2019 Opening net book amount 13,836 Additions 12,424 Depreciation charge (157) Impairment charge (1,124) Closing net book amount 24,979 At 30 June 2019 Cost 32,193 Accumulated depreciation and impairment (7,214) Net book amount 24,979 |
Schedule of other amounts recognized in profit or loss for investment properties | 2019 2018 2017 £’000 £’000 £’000 Rental revenue 1,749 1,371 1,260 Direct operating expenses from properties, all of which generated rental revenue 416 182 679 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Intangible assets. | |
Schedule of intangible assets | Other intangible Goodwill Registrations assets Total £’000 £’000 £’000 £’000 At 1 July 2017 Cost 421,453 645,433 6,619 1,073,505 Accumulated amortization — (354,913) (1,048) (355,961) Net book amount 421,453 290,520 5,571 717,544 Year ended 30 June 2018 Opening net book amount 421,453 290,520 5,571 717,544 Additions — 243,182 4,495 247,677 Disposals — (27,201) — (27,201) Amortization charge — (136,993) (1,387) (138,380) Closing book amount 421,453 369,508 8,679 799,640 At 30 June 2018 Cost 421,453 785,594 10,379 1,217,426 Accumulated amortization — (416,086) (1,700) (417,786) Net book amount 421,453 369,508 8,679 799,640 Year ended 30 June 2019 Opening net book amount 421,453 369,508 8,679 799,640 Additions — 103,326 3,585 106,911 Disposals — (8,540) — (8,540) Amortization charge — (125,532) (3,622) (129,154) Closing book amount 421,453 338,762 8,642 768,857 At 30 June 2019 Cost 421,453 772,328 13,964 1,207,745 Accumulated amortization — (433,566) (5,322) (438,888) Net book amount 421,453 338,762 8,642 768,857 |
Schedule of estimated useful lives of other intangible assets | Website, mobile applications and software 3 years Trademark registrations 10 years |
Deferred tax (Tables)
Deferred tax (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Deferred Tax | |
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): Restated(1) 2019 2018 £’000 £’000 US deferred tax assets (58,415) (63,332) UK deferred tax liabilities 31,865 29,134 At 30 June (26,550) (34,198) The movement in deferred tax assets and deferred tax liabilities during the year is as follows: Restated(1) 2019 2018 £’000 £’000 At 1 July (34,198) (119,949) Expensed to statement of profit or loss (note 10) 8,112 63,520 (Credited)/expensed to other comprehensive income (note 10) (634) 21,684 Expense relating to share-based payments(2) 170 — Reclassification to tax receivable(3) — 547 At 30 June (26,550) (34,198) (1) Comparative amounts have been restated—see note 33 for further details. (2) Expense relating to share-based payments arise on the movement in the share price on equity-settled awards between the grant date and the reporting date—see consolidated statement of changes in equity above. (3) The reclassification to tax receivable in the year ended 30 June 2018 relates to alternative minimum tax payable which prior to the US tax reform was expected to be offset against future US tax liabilities. Following the US tax reform (substantively enacted on 22 December 2017) this was expected to be repaid to the Group. |
US | |
Deferred Tax | |
Schedule of movements in net deferred tax asset | Unrealized foreign exchange Net and Foreign operating derivative Intangible Deferred tax credits losses movements assets revenue Other Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 At 1 July 2017 (restated(1)) (40,047) (1,070) (32,859) (47,247) (15,459) (4,803) (141,485) Expensed/(credited) to statement of profit or loss (note 10) 13,504 (2,096) 11,931 26,026 7,732 3,015 60,112 (Credited)/expensed to other comprehensive income (note 10) (4,271) (233) 22,124 — — (126) 17,494 Reclassification to tax receivable — — — — — 547 547 At 30 June 2018 (30,814) (3,399) 1,196 (21,221) (7,727) (1,367) (63,332) Expensed/(credited) to statement of profit or loss (note 10) (279) 795 (344) 6,163 (21) (3,638) 2,676 Expensed/(credited) to other comprehensive income (note 10) 942 2,604 (1,338) — — — 2,208 Expense relating to share-based payments (137) — — — — 170 33 At 30 June 2019 (30,288) — (486) (15,058) (7,748) (4,835) (58,415) (1) Comparative amounts have been restated—see note 33 for further details. |
UK | |
Deferred Tax | |
Schedule of movements in net deferred tax asset | Rolled Property Accelerated over gain Non fair Net tax on player qualifying value operating depreciation disposal property adjustment losses Other(1) Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 At 1 July 2017 836 5,176 11,901 13,576 (27) (9,926) 21,536 (Credited)/expensed to statement of profit or loss (note 10) (31) 2,213 (3) (429) (85) 1,743 3,408 Expensed to other comprehensive income (note 10) — — — — — 4,190 4,190 At 30 June 2018 805 7,389 11,898 13,147 (112) (3,993) 29,134 Expensed/(credited) to statement of profit or loss (note 10) (99) 1,933 (3) (429) 112 3,922 5,436 (Credited) to other comprehensive income (note 10) — — — — — (2,842) (2,842) Expense relating to share-based payments — — — — — 137 137 At 30 June 2019 706 9,322 11,895 12,718 — (2,776) 31,865 (1) The “Other” deferred tax asset balance primarily comprises foreign exchange differences; fair value movements recognized in the hedging reserve; property, plant and equipment temporary differences; and salaries not paid before 15 September of the following year. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Inventories | |
Schedule of inventories | 2019 2018 £’000 £’000 Finished goods 2,130 1,416 |
Trade receivables (Tables)
Trade receivables (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Trade receivables. | |
Schedule of trade receivables | 2019 2018 £’000 £’000 Trade receivables 46,694 133,505 Less: provision for impairment of trade receivables (12,954) (9,708) Net trade receivables 33,740 123,797 Less: non-current portion Trade receivables 9,889 4,724 Non-current trade receivables 9,889 4,724 Current trade and receivables 23,851 119,073 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Derivative financial instruments. | |
Schedule of derivative financial instruments | 2019 2018 Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000 Used for hedging: Interest rate swaps — (2,298) 4,490 — At fair value through profit or loss: Embedded foreign exchange derivatives 245 — 624 — Forward foreign exchange contracts 97 — 852 — 342 (2,298) 5,966 — Less non-current portion: Used for hedging: Interest rate swaps — (2,298) 4,490 — At fair value through profit or loss: Embedded foreign exchange derivatives 30 — 317 — Non-current derivative financial instruments 30 (2,298) 4,807 — Current derivative financial instruments 312 — 1,159 — |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | 2019 2018 £’000 £’000 Cash at bank and in hand 307,637 242,022 |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Share capital. | |
Schedule of share capital | Number of Ordinary shares shares (thousands) £’000 At 1 July 2017 164,195 53 Employee share-based compensation awards — issue of shares 331 — At 30 June 2018 164,526 53 Employee share-based compensation awards—issue of shares 45 — At 30 June 2019 164,571 53 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Trade and other payables | |
Schedule of trade and other payables | 2019 2018 £’000 £’000 Trade payables 196,644 266,316 Other payables 4,689 4,754 Accrued expenses 94,381 83,280 Social security and other taxes 13,855 17,917 309,569 372,267 Less: non-current portion Trade payables 77,438 102,067 Other payables 1,745 2,204 Non-current trade and other payables 79,183 104,271 Current trade and other payables 230,386 267,996 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Borrowings | |
Schedule of borrowings | 2019 2018 £’000 £’000 Senior secured notes 330,757 318,347 Secured term loan facility 175,022 168,347 Secured bank loan — 3,750 Accrued interest on senior secured notes 5,453 5,324 511,232 495,768 Less: non-current portion Senior secured notes 330,757 318,347 Secured term loan facility 175,022 168,347 Non-current borrowings 505,779 486,694 Current borrowings 5,453 9,074 |
Cash flow information (Tables)
Cash flow information (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Cash flow information | |
Schedule of cash generated from operations | Restated(1) Restated(1) 2019 2018 2017 Note £’000 £’000 £’000 Profit before tax 27,476 25,833 56,588 Adjustments for: Depreciation 13, 14 11,726 10,755 10,228 Impairment charge/(reversal) 6,14 1,124 — (4,753) Amortization 15 129,154 138,380 124,434 Profit on disposal of intangible assets 8 (25,799) (18,119) (10,926) Net finance costs 9 22,509 18,038 24,277 (Profit)/loss on disposal of property, plant and equipment — (81) 43 Non-cash employee benefit expense — equity-settled share-based payments 25 699 2,915 2,187 Foreign exchange (gains)/losses on operating activities (76) 994 2,646 Reclassified from hedging reserve 6,250 13,914 5,290 Changes in working capital: Inventories (714) 221 (711) Prepayments (2,168) 2,638 895 Contract assets—accrued revenue (1,514) (9,263) 12,198 Trade receivables(2) 82,086 (64,492) 5,089 Other receivables (1,081) 163 (657) Contract liabilities—deferred revenue 5,903 (25,496) 18,576 Trade and other payables(2) 8,034 23,204 6,355 Cash generated from operations 263,609 119,604 251,759 (1) Comparative amounts have been restated—see note 33 for further details. (2) 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 receivables of £7,971,000 (2018: increase of £18,374,000; 2017: decrease of £3,224,000);and · a decrease in changes to trade and other payables of £70,732,000 (2018: increase of £74,088,000; 2017: decrease of £26,428,000). |
Schedule of reconciliation of the movement in the Group's net debt | Non-current Current Cash and cash borrowings borrowings equivalents Total £’000 £’000 £’000 £’000 Net debt at 1 July 2017 497,630 5,724 (290,267) 213,087 Cash flows — (17,083) 48,420 31,337 Non-cash movements (10,936) 20,433 (175) 9,322 Net debt at 30 June 2018 486,694 9,074 (242,022) 253,746 Cash flows — (21,973) (56,366) (78,339) Non-cash movements 18,352 (9,249) 28,188 Net debt at 30 June 2019 505,779 5,453 (307,637) 203,595 |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Share-based payments | |
Schedule of movements in the number of share awards outstanding | Number of Class A ordinary shares At 1 July 2018 83,153 Awarded 55,976 Vested (44,577) At 30 June 2019 94,552 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Financial risk management | |
Schedule of forward foreign currency contracts outstanding at balance sheet date | 2019 2018 Average Foreign Notional Fair Average Foreign Notional Fair exchange currency value value exchange currency value value rate €’000 €'000 €'000 rate €’000 €'000 €'000 Buy Euro 1.1272 (6,639) (5,890) 97 1.1523 (46,000) (39,919) 852 |
Schedule of exposure to material foreign currency risk | 2019 2018 Euro US Dollar Euro US Dollar €'000 €'000 €'000 €'000 Contract assets — accrued revenue 713 1,316 — — Trade receivables 10,286 10,718 10,720 89,262 Derivative financial assets — — 852 5,114 Cash and cash equivalents 30,276 244,156 61,854 127,688 Trade and other payables (22,657) (1,609) (137,018) (1,033) Borrowings — (505,779) — (492,018) Derivative financial liabilities — (2,298) — — 18,618 (253,496) (63,592) (270,987) |
Schedule of gross trade receivables analysed by due date and whether or not impaired | 2019 2018 £’000 £’000 Neither past due nor impaired 29,437 111,912 Past due, not impaired 4,303 11,885 Past due, fully impaired 12,954 9,708 Gross trade receivables 46,694 133,505 |
Schedule of movements on provision for impairment of trade receivables | 2019 2018 £’000 £’000 Provision as of 1 July 9,708 14,113 Increase in provision recognized in profit or loss during the year 985 160 Receivables written off during the year as uncollectible (279) (6,943) Receivables offset against contract liabilities—deferred revenue 2,517 2,591 Foreign exchange losses/(gains) on retranslation recognized in profit or loss during the year 23 (213) Provision as of 30 June 12,954 9,708 |
Schedule of contractual undiscounted cash flows including interest | Less than Between Between Over 1 year 1 and 2 years 2 and 5 years 5 years £’000 £’000 £’000 £’000 Trade and other payables excluding social security and other taxes(1) 217,136 61,542 19,657 — Borrowings 19,024 19,024 57,073 555,441 236,160 80,566 76,730 555,441 Non-trading(2) and net settled derivative financial instruments: Cash outflow 460 460 1,379 — Cash inflow (97) — — — At 30 June 2019 236,523 81,026 78,109 555,441 Trade and other payables excluding social security and other taxes(1) 250,300 67,858 40,280 191 Borrowings 22,449 18,692 56,075 554,448 272,749 86,550 96,355 554,639 Non-trading(2) and net settled derivative financial instruments: Cash inflow (1,600) (748) (2,245) (748) At 30 June 2018 271,149 85,802 94,110 553,891 (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 reporting date. |
Schedule of net borrowings being hedged at balance sheet date | 2019 2018 $’000 $’000 USD borrowings 650,000 650,000 Hedged USD cash (308,838) (128,500) Net USD debt 341,162 521,500 Hedged future USD revenues (211,153) (307,019) Unhedged USD borrowings 130,009 214,481 Closing exchange rate 1.2718 1.3194 |
Schedule of interest rate swaps at balance sheet date that are used to hedge borrowings | 2019 2018 Current hedged principal value of loan outstanding ($‘000) 150,000 150,000 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 US dollar rate Total, Total, revenues swap Other before tax Tax after tax £’000 £’000 £’000 £’000 £’000 £’000 Balance at 1 July 2016 as previously reported (41,043) (9,710) — (50,753) 17,764 (32,989) Adjustment(1) 172 172 (60) 112 Restated balance at 1 July 2016 (40,871) (9,710) — (50,581) 17,704 (32,877) Exchange differences on hedged foreign exchange risks (11,998) — 124 (11,874) — (11,874) Reclassified to profit or loss (restated(1)) 5,565 — (275) 5,290 — 5,290 Change in fair value — 9,055 — 9,055 — 9,055 Tax relating to above (restated(1)) — — — — (865) (865) Movement recognized in other comprehensive income (6,433) 9,055 (151) 2,471 (865) 1,606 Balance at 30 June 2017 (47,304) (655) (151) (48,110) 16,839 (31,271) Exchange differences on hedged foreign exchange risks 6,522 — (184) 6,338 — 6,338 Reclassified to profit or loss (restated(1)) 13,791 — 123 13,914 — 13,914 Change in fair value — 5,145 — 5,145 — 5,145 Tax relating to above (restated(1)) — — — — (21,684) (21,684) Movement recognized in other comprehensive income 20,313 5,145 (61) 25,397 (21,684) 3,713 Balance at 30 June 2018 (26,991) 4,490 (212) (22,713) (4,845) (27,558) Exchange differences on hedged foreign exchange risks (6,350) — 168 (6,182) — (6,182) Reclassified to profit or loss 6,004 — 246 6,250 — 6,250 Change in fair value — (6,788) — (6,788) — (6,788) Tax relating to above — — — — (1,266) (1,266) Movement recognized in other comprehensive income (346) (6,788) 414 (6,720) (1,266) (7,986) Balance at 30 June 2019 (27,337) (2,298) 202 (29,433) (6,111) (35,544) (1) Comparative amounts have been restated—see note 33 for further details. |
Contingent liabilities and co_2
Contingent liabilities and contingent assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Contingent liabilities and contingent assets | |
Schedule of potential amount payable by type of condition and category of player | As of 30 June 2019, the potential amount payable by type of condition and category of player was: First team squad Other Total £’000 £’000 £’000 Type of condition: MUFC appearances/team success/new contract 35,722 8,805 44,527 International appearances 11,573 22 11,595 Other 17,905 294 18,199 65,200 9,121 74,321 As of 30 June 2018, the potential amount payable by type of condition and category of player was: First team squad Other Total £’000 £’000 £’000 Type of condition: MUFC appearances/team success/new contract 29,142 7,789 36,931 International appearances 11,343 47 11,390 Other 17,685 405 18,090 58,170 8,241 66,411 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments | |
Schedule of future aggregate minimum lease payments under non-cancellable operating lease | 2019 2018 £’000 £’000 Within 1 year 1,956 1,756 Later than 1 year but not later than 5 years 2,346 2,739 Later than 5 years 3,785 3,866 8,087 8,361 |
Schedule of future aggregate minimum rental receivable under non-cancellable operating lease | 2019 2018 £’000 £’000 Within 1 year 2,100 1,278 Later than 1 year but not later than 5 years 5,777 2,866 Later than 5 years 13,994 9,550 21,871 13,694 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Subsidiaries | |
Schedule of subsidiary undertakings | % of ownership Name of entity Principal activity interest Red Football Finance Limited* Finance company 100 Red Football Holdings Limited* Holding company 100 Red Football Shareholder Limited Holding company 100 Red Football Joint Venture Limited Holding company 100 Red Football Limited Holding company 100 Red Football Junior Limited Holding company 100 Manchester United Limited Holding company 100 Alderley Urban Investments Limited Property investment 100 Manchester United Commercial Enterprises (Ireland) Limited Dormant company 100 Manchester United Football Club Limited Professional football club 100 Manchester United Women’s Football Club Limited Professional football club 100 Manchester United Interactive Limited Dormant company 100 MU 099 Limited Dormant company 100 MU Commercial Holdings Limited Holding company 100 MU Commercial Holdings Junior Limited Holding company 100 MU Finance Limited Finance company 100 MU RAML Limited Retail and licensing company 100 MUTV Limited Media company 100 RAML USA LLC Retail company 100 * Direct investment of Manchester United plc, others are held by subsidiary undertakings. |
Restatement of prior periods _2
Restatement of prior periods following implementation of IFRS 15 (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Restatement of prior periods following implementation of IFRS 15 | |
Schedule of restatement of prior periods following implementation of IFRS 15 | Consolidated statement of profit or loss for the year ended 30 June 2017 As previously reported Adjustment Restated £’000 £’000 £’000 Commercial revenue 275,471 50 275,521 Broadcasting revenue 194,098 — 194,098 Matchday revenue 111,635 — 111,635 Total revenue 581,204 50 581,254 Operating expenses (511,315) — (511,315) Profit on disposal of intangible assets 10,926 — 10,926 Operating profit 80,815 50 80,865 Finance costs (25,013) — (25,013) Finance income 736 — 736 Net finance costs (24,277) — (24,277) Profit before income tax 56,538 50 56,588 Income tax expense (17,361) (18) (17,379) Profit for the year 39,177 32 39,209 Earnings per share during the year: Basic earnings per share (pence) 23.88 0.02 23.90 Diluted earnings per share (pence) 23.82 0.02 23.84 Consolidated statement of comprehensive income for the year ended 30 June 2017 As previously reported Adjustment Restated £’000 £’000 £’000 Profit for the year 39,177 32 39,209 Other comprehensive income: Items that may be subsequently reclassified to profit or loss Movements on hedges 1,946 525 2,471 Tax expense relating to movements on hedges (681) (184) (865) Other comprehensive income for the year, net of tax 1,265 341 1,606 Total comprehensive income for the year 40,442 373 40,815 Consolidated balance sheet as of 30 June 2017 As previously reported Adjustment Restated £’000 £’000 £’000 ASSETS Non-current assets Property, plant and equipment 244,738 — 244,738 Investment properties 13,966 — 13,966 Intangible assets 717,544 — 717,544 Deferred tax asset 142,107 (622) 141,485 Trade receivables 15,399 — 15,399 Derivative financial instruments 1,666 — 1,666 1,135,420 (622) 1,134,798 Current assets Inventories 1,637 — 1,637 Prepayments 13,500 — 13,500 Contract assets — accrued revenue 28,755 — 28,755 Trade receivables 61,207 — 61,207 Other receivables 270 — 270 Derivative financial instruments 3,218 — 3,218 Cash and cash equivalents 290,267 — 290,267 398,854 — 398,854 Total assets 1,534,274 (622) 1,533,652 EQUITY AND LIABILITIES Equity Share capital 53 — 53 Share premium 68,822 — 68,822 Merger reserve 249,030 — 249,030 Hedging reserve (31,724) 453 (31,271) Retained earnings 191,436 2,017 193,453 477,617 2,470 480,087 Non-current liabilities Deferred tax liabilities 20,828 708 21,536 Contract liabilities—deferred revenue 39,648 — 39,648 Trade and other payables 83,587 — 83,587 Borrowings 497,630 — 497,630 Derivative financial instruments 655 — 655 642,348 708 643,056 Current liabilities Contract liabilities—deferred revenue 207,245 (3,800) 203,445 Trade and other payables 190,315 — 190,315 Tax liabilities 9,772 — 9,772 Borrowings 5,724 — 5,724 Derivative financial instruments 1,253 — 1,253 414,309 (3,800) 410,509 Total equity and liabilities 1,534,274 (622) 1,533,652 Consolidated statement of cash flows for the year ended 30 June 2017 The implementation of IFRS 15 affected elements of cash generated from operations but did not affect the overall total. Other than that, the implementation of IFRS 15 had no impact on the consolidated statement of cash flows. Cash generated from operations for the year ended 30 June 2017 As previously reported Adjustment Restated £’000 £’000 £’000 Profit before tax 56,538 50 56,588 Depreciation 10,228 — 10,228 Impairment reversal (4,753) — (4,753) Amortization 124,434 — 124,434 Profit on disposal of intangible assets (10,926) — (10,926) Net finance costs 24,277 — 24,277 Loss on disposal of property, plant and equipment 43 43 Non-cash employee benefit expense — equity-settled share-based payments 2,187 — 2,187 Foreign exchange losses on operating activities 2,646 — 2,646 Reclassified from hedging reserve 4,765 525 5,290 Changes in working capital: Inventories (711) — (711) Prepayments 895 — 895 Contract assets—accrued revenue 12,198 — 12,198 Trade receivables 5,089 — 5,089 Other receivables (657) — (657) Contract liabilities—deferred revenue 19,151 (575) 18,576 Trade and other payables 6,355 — 6,355 Cash generated from operations 251,759 — 251,759 Consolidated statement of profit or loss for the year ended 30 June 2018 As previously reported Adjustment Restated £’000 £’000 £’000 Commercial revenue 276,099 (264) 275,835 Broadcasting revenue 204,137 — 204,137 Matchday revenue 109,786 — 109,786 Total revenue 590,022 (264) 589,758 Operating expenses (564,006) — (564,006) Profit on disposal of intangible assets 18,119 — 18,119 Operating profit 44,135 (264) 43,871 Finance costs (24,233) — (24,233) Finance income 6,195 — 6,195 Net finance costs (18,038) — (18,038) Profit before income tax 26,097 (264) 25,833 Income tax expense (63,367) (95) (63,462) Loss for the year (37,270) (359) (37,629) Loss per share during the year: Basic loss per share (pence) (22.70) (0.22) (22.92) Diluted loss per share (pence) (22.70) (0.22) (22.92) Consolidated statement of comprehensive income for the year ended 30 June 2018 As previously reported Adjustment Restated £’000 £’000 £’000 Loss for the year (37,270) (359) (37,629) Other comprehensive income: Items that may be subsequently reclassified to profit or loss Movements on hedges 25,878 (481) 25,397 Tax expense relating to movements on hedges (21,892) 208 (21,684) Other comprehensive income for the year, net of tax 3,986 (273) 3,713 Total comprehensive loss for the year (33,284) (632) (33,916) Consolidated balance sheet as of 30 June 2018 As previously reported Adjustment Restated £’000 £’000 £’000 ASSETS Non-current assets Property, plant and equipment 245,401 — 245,401 Investment properties 13,836 — 13,836 Intangible assets 799,640 — 799,640 Deferred tax asset 63,974 (642) 63,332 Trade receivables 4,724 — 4,724 Tax receivable 547 — 547 Derivative financial instruments 4,807 — 4,807 1,132,929 (642) 1,132,287 Current assets Inventories 1,416 — 1,416 Prepayments 10,862 — 10,862 Contract assets—accrued revenue 38,018 — 38,018 Trade receivables 119,073 — 119,073 Other receivables 107 — 107 Tax receivable 800 — 800 Derivative financial instruments 1,159 — 1,159 Cash and cash equivalents 242,022 — 242,022 413,457 — 413,457 Total assets 1,546,386 (642) 1,545,744 EQUITY AND LIABILITIES Equity Share capital 53 — 53 Share premium 68,822 — 68,822 Merger reserve 249,030 — 249,030 Hedging reserve (27,738) 180 (27,558) Retained earnings 135,099 1,658 136,757 425,266 1,838 427,104 Non-current liabilities Deferred tax liabilities 28,559 575 29,134 Contract liabilities—deferred revenue 37,085 — 37,085 Trade and other payables 104,271 — 104,271 Borrowings 486,694 — 486,694 656,609 575 657,184 Current liabilities Contract liabilities—deferred revenue 183,567 (3,055) 180,512 Trade and other payables 267,996 — 267,996 Tax liabilities 3,874 — 3,874 Borrowings 9,074 — 9,074 464,511 (3,055) 461,456 Total equity and liabilities 1,546,386 (642) 1,545,744 Consolidated statement of cash flows for the year ended 30 June 2018 The implementation of IFRS 15 affected elements of cash generated from operations but did not affect the overall total. Other than that, the implementation of IFRS 15 had no impact on the consolidated statement of cash flows. Cash generated from operations for the year ended 30 June 2018 As previously reported Adjustment Restated £’000 £’000 £’000 Profit before tax 26,097 (264) 25,833 Depreciation 10,755 — 10,755 Amortization 138,380 — 138,380 Profit on disposal of intangible assets (18,119) — (18,119) Net finance costs 18,038 — 18,038 Profit on disposal of property, plant and equipment (81) (81) Equity-settled share-based payments 2,915 — 2,915 Foreign exchange losses on operating activities 994 — 994 Reclassified from hedging reserve 14,395 (481) 13,914 Changes in working capital: Inventories 221 — 221 Prepayments 2,638 — 2,638 Contract assets—accrued revenue (9,263) — (9,263) Trade receivables (64,492) — (64,492) Other receivables 163 — 163 Contract liabilities—deferred revenue (26,241) 745 (25,496) Trade and other payables 23,204 — 23,204 Cash generated from operations 119,604 — 119,604 |
Additional information-Financ_2
Additional information-Financial Statement Schedule I (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Additional information-Financial Statement Schedule I | |
Statement of condensed statement of profit or loss | Year ended 30 June 2019 2018 2017 £’000 £’000 £’000 Operating expenses (3,455) (3,423) (2,013) Income from shares in group undertakings 23,326 21,982 23,295 Profit before income tax 19,871 18,559 21,282 Income tax expense — — — Profit for the year 19,871 18,559 21,282 |
Statement of condensed balance sheet | As of 30 June 2019 2018 £’000 £’000 ASSETS Non-current assets Investment in subsidiaries 319,265 319,265 319,265 319,265 Current assets Other receivables 1,108 1,314 Cash and cash equivalents 116 340 1,224 1,654 Total assets 320,489 320,919 EQUITY AND LIABILITIES Equity Share capital 53 53 Share premium 68,822 68,822 Retained earnings 245,050 247,806 313,925 316,681 Current liabilities Other payables 6,564 4,238 6,564 4,238 Total equity and liabilities 320,489 320,919 |
Statement of condensed statement of changes in equity | Share Share Retained capital premium earnings Total equity £’000 £’000 £’000 £’000 Balance at 1 July 2016 52 68,822 248,140 317,014 Profit for the year — — 21,282 21,282 Total comprehensive income for the year — — 21,282 21,282 Equity-settled share based payments — — 2,187 2,187 Dividends paid — — (23,295) (23,295) Proceeds from shares issued 1 — — 1 Balance at 30 June 2017 53 68,822 248,314 317,189 Profit for the year — — 18,559 18,559 Total comprehensive income for the year — — 18,559 18,559 Equity-settled share based payments — — 2,915 2,915 Dividends paid — — (21,982) (21,982) Balance at 30 June 2018 53 68,822 247,806 316,681 Profit for the year — — 19,871 19,871 Total comprehensive income for the year — — 19,871 19,871 Equity-settled share based payments — — 699 699 Dividends paid — — (23,326) (23,326) Balance at 30 June 2019 53 68,822 245,050 313,925 |
Statement of condensed statement of cash flows | Year ended 30 June 2019 2018 2017 £’000 £’000 £’000 Cash flows from operating activities Profit before tax 19,871 18,559 21,282 Adjustments for: Non-cash employee benefit expense — equity-settled share-based payments 699 2,915 2,187 Foreign exchange (gains)/losses on operating activities (37) 114 42 Changes in working capital: Other receivables 206 (191) (998) Other payables 2,326 517 1,125 Net cash inflow from operating activities 23,065 21,914 23,638 Cash flows from financing activities Dividends paid (23,326) (21,982) (23,295) Net cash outflow from financing activities (23,326) (21,982) (23,295) Net (decrease)/increase in cash and cash equivalents (261) (68) 343 Cash and cash equivalents at beginning of year 340 522 221 Exchange losses on cash and cash equivalents 37 (114) (42) Cash and cash equivalents at end of year 116 340 522 |
Statement of reconciliation of parent and consolidated financial information | Restated(1) Restated(1) 2019 2018 2017 £’000 £’000 £’000 IFRS profit/(loss) reconciliation: Parent only — IFRS profit for the year 19,871 18,559 21,282 Additional (loss)/profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost (990) (56,188) 17,927 Consolidated IFRS profit/(loss) for the year 18,881 (37,629) 39,209 IFRS equity reconciliation: Parent only—IFRS equity 313,925 316,681 317,189 Additional profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost 101,277 110,423 162,898 Consolidated—IFRS equity 415,202 427,104 480,087 (1) Comparative amounts have been restated—see note 33 for further details. |
Summary of significant accoun_4
Summary of significant accounting policies - Leases (Details) - GBP (£) £ in Thousands | 12 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Disclosure of expected impact of initial application of new standards or interpretations | ||||||
Profit before tax | £ 27,476 | £ 25,833 | [1] | £ 56,588 | [1] | |
Operating profit | 49,985 | 43,871 | [1] | 80,865 | [1] | |
Operating cash flows | 244,784 | 95,250 | 227,660 | |||
Financing cash flows | (27,076) | (22,401) | £ (23,690) | |||
Operating lease commitment | 8,087 | £ 8,361 | ||||
Forecast | Increase (decrease) due to application of IFRS 16 | ||||||
Disclosure of expected impact of initial application of new standards or interpretations | ||||||
Right-of-use assets | 6,000 | |||||
Lease liabilities | £ 6,000 | |||||
Profit before tax | £ (100) | |||||
Adjusted EBITDA | 1,700 | |||||
Operating profit | 1,700 | |||||
Operating cash flows | 1,600 | |||||
Financing cash flows | £ (1,600) | |||||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Summary of significant accoun_5
Summary of significant accounting policies - Segment reporting (Details) | 12 Months Ended |
Jun. 30, 2019segment | |
Segment reporting | |
Number of material segments | 1 |
Summary of significant accoun_6
Summary of significant accounting policies - Exchange rates (Details) | 12 Months Ended | ||||||||
Jun. 30, 2019$ / £ | Jun. 30, 2019$ / £€ / £ | Jun. 30, 2018$ / £ | Jun. 30, 2018$ / £€ / £ | Jun. 30, 2017$ / £ | Jun. 30, 2017$ / £€ / £ | Jun. 30, 2019€ / £ | Jun. 30, 2018€ / £ | Jun. 30, 2017€ / £ | |
Exchange rates | |||||||||
Closing rate | 1.2718 | 1.2718 | 1.3194 | 1.3194 | 1.2988 | 1.2988 | 1.1170 | 1.1309 | 1.1379 |
Average rate | 1.2959 | 1.1346 | 1.3465 | 1.1327 | 1.2774 | 1.1663 |
Revenue from contracts with c_3
Revenue from contracts with customers - Disaggregation of revenue from contract with customers (Details) £ in Thousands | 12 Months Ended | ||||
Jun. 30, 2019GBP (£)componentsegment | Jun. 30, 2018GBP (£) | Jun. 30, 2017GBP (£) | |||
Revenue from contracts with customers | |||||
Number of material segments | segment | 1 | ||||
Number of main components of revenue | component | 3 | ||||
Revenue from contracts with customers | £ 627,122 | £ 589,758 | [1] | £ 581,254 | [1] |
Commercial | |||||
Revenue from contracts with customers | |||||
Revenue from contracts with customers | 275,093 | 275,835 | 275,521 | ||
Sponsorship | |||||
Revenue from contracts with customers | |||||
Revenue from contracts with customers | 173,010 | 172,982 | 171,530 | ||
Retail, merchandising, apparel and products licensing revenue | |||||
Revenue from contracts with customers | |||||
Revenue from contracts with customers | 102,083 | 102,853 | 103,991 | ||
Broadcasting | |||||
Revenue from contracts with customers | |||||
Revenue from contracts with customers | 241,210 | 204,137 | 194,098 | ||
Domestic competitions | |||||
Revenue from contracts with customers | |||||
Revenue from contracts with customers | 148,018 | 155,123 | 145,605 | ||
European competitions | |||||
Revenue from contracts with customers | |||||
Revenue from contracts with customers | 83,138 | 38,276 | 39,541 | ||
Other | |||||
Revenue from contracts with customers | |||||
Revenue from contracts with customers | 10,054 | 10,738 | 8,952 | ||
Matchday | |||||
Revenue from contracts with customers | |||||
Revenue from contracts with customers | £ 110,819 | £ 109,786 | £ 111,635 | ||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Revenue from contracts with c_4
Revenue from contracts with customers - Revenue derived from entities accounting for more than 10% of revenue (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Revenue from contracts with customers | |||||
Revenue from contracts with customers | £ 627,122 | £ 589,758 | [1] | £ 581,254 | [1] |
Premier League | |||||
Revenue from contracts with customers | |||||
Revenue from contracts with customers | 150,959 | 155,932 | 147,875 | ||
UEFA | |||||
Revenue from contracts with customers | |||||
Revenue from contracts with customers | 83,138 | ||||
adidas | |||||
Revenue from contracts with customers | |||||
Revenue from contracts with customers | £ 78,813 | £ 79,015 | 79,214 | ||
General Motors (Chevrolet) | |||||
Revenue from contracts with customers | |||||
Revenue from contracts with customers | £ 59,446 | ||||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Revenue from contracts with c_5
Revenue from contracts with customers - Assets and liabilities related to contracts with customers (Details) - GBP (£) £ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from contracts with customers | ||
Contract liabilities - deferred revenue at beginning of year | £ (217,597) | £ (243,093) |
Recognized in revenue during the year | 180,512 | 203,445 |
Cash received during the year | (186,415) | (177,949) |
Contract liabilities - deferred revenue at end of year | (223,500) | (217,597) |
Current contract assets and contract liabilities | ||
Revenue from contracts with customers | ||
Contract assets - accrued revenue at beginning of period | 38,018 | 28,755 |
Recognized in revenue during the year | 39,532 | 38,018 |
Cash received during the year | (38,018) | (28,755) |
Contract assets - accrued revenue at end of period | 39,532 | 38,018 |
Contract liabilities - deferred revenue at beginning of year | (180,512) | (203,445) |
Recognized in revenue during the year | 180,512 | 203,445 |
Cash received during the year | (180,494) | (177,426) |
Reclassified to current during the year | (9,652) | (3,086) |
Contract liabilities - deferred revenue at end of year | (190,146) | (180,512) |
Non-current contract assets and contract liabilities | ||
Revenue from contracts with customers | ||
Contract liabilities - deferred revenue at beginning of year | (37,085) | (39,648) |
Cash received during the year | (5,921) | (523) |
Reclassified to current during the year | 9,652 | 3,086 |
Contract liabilities - deferred revenue at end of year | £ (33,354) | (37,085) |
As previously reported | ||
Revenue from contracts with customers | ||
Contract liabilities - deferred revenue at beginning of year | (246,893) | |
As previously reported | Current contract assets and contract liabilities | ||
Revenue from contracts with customers | ||
Contract liabilities - deferred revenue at beginning of year | (207,245) | |
As previously reported | Non-current contract assets and contract liabilities | ||
Revenue from contracts with customers | ||
Contract liabilities - deferred revenue at beginning of year | (39,648) | |
Adjustment | ||
Revenue from contracts with customers | ||
Contract liabilities - deferred revenue at beginning of year | 3,800 | |
Adjustment | Current contract assets and contract liabilities | ||
Revenue from contracts with customers | ||
Contract liabilities - deferred revenue at beginning of year | £ 3,800 |
Revenue from contracts with c_6
Revenue from contracts with customers - Significant estimates and judgments - adidas contract 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 |
Number of consecutive seasons of non-participation in Champions League that would impact guarantee payable by adidas | item | 2 |
Maximum increase in guarantee payable per year | £ 4 |
Maximum possible percentage of reduction in guarantee per year | 30.00% |
Operating expenses (Details)
Operating expenses (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating expenses | |||
Employee benefit expenses (note 7) | £ (332,356,000) | £ (295,935,000) | £ (263,464,000) |
Operating lease costs | (1,974,000) | (1,785,000) | (2,316,000) |
Auditors' remuneration: audit of parent company and consolidated financial statements | (28,000) | (28,000) | (27,000) |
Auditors' remuneration: audit of the Company's subsidiaries | (489,000) | (472,000) | (476,000) |
Auditors' remuneration: tax compliance services | (160,000) | (212,000) | (392,000) |
Auditors' remuneration: other services | (45,000) | (184,000) | (456,000) |
Foreign exchange gains/(losses) on operating activities | 76,000 | (994,000) | (2,646,000) |
Gain/(loss) on disposal of property, plant and equipment | 81,000 | (43,000) | |
Depreciation - property, plant and equipment (note 13) | (11,569,000) | (10,625,000) | (10,106,000) |
Depreciation - investment properties (note 14) | (157,000) | (130,000) | (122,000) |
Impairment - investment properties (note 14) | (1,124,000) | ||
Amortization (note 15) | (129,154,000) | (138,380,000) | (124,434,000) |
Sponsorship, other commercial and broadcasting costs | (23,092,000) | (25,907,000) | (28,491,000) |
External matchday costs | (20,317,000) | (24,193,000) | (26,892,000) |
Property costs | (21,211,000) | (21,620,000) | (19,329,000) |
Other operating expenses (individually less than 10,000,000) | (41,737,000) | (41,705,000) | (36,874,000) |
Exceptional items (note 6) | (19,599,000) | (1,917,000) | 4,753,000 |
Total operating expenses | (602,936,000) | (564,006,000) | (511,315,000) |
Other operating expenses, limit for individual disclosure | £ 10,000,000 | £ 10,000,000 | £ 10,000,000 |
Exceptional items (Details)
Exceptional items (Details) - GBP (£) | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Exceptional items | ||||
Compensation paid for loss of office | £ (19,599,000) | |||
Football League pension scheme deficit (note 26) | £ (1,917,000) | |||
Impairment reversal/(charge) - registrations (note 15) | £ 4,753,000 | £ (6,693,000) | ||
Total exceptional items | £ (19,599,000) | £ (1,917,000) | £ 4,753,000 |
Employee benefit expenses (Deta
Employee benefit expenses (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee benefit expenses | |||
Wages and salaries (including bonuses) | £ (293,424,000) | £ (255,637,000) | £ (229,605,000) |
Social security costs | (34,799,000) | (31,396,000) | (27,334,000) |
Share-based payments (note 25) | (1,251,000) | (6,216,000) | (4,090,000) |
Pension costs-defined contribution schemes (note 26.2) | (2,882,000) | (2,686,000) | (2,435,000) |
Total employee benefit expenses | £ (332,356,000) | £ (295,935,000) | £ (263,464,000) |
Employee benefit expenses - Ave
Employee benefit expenses - Average number of people employed (Details) - employee | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Average number of people employed | |||
Average number of employees | 940 | 922 | 865 |
Number of temporary staff on match days | 3,340 | 3,858 | 2,053 |
Football - men's and women's players | |||
Average number of people employed | |||
Average number of employees | 104 | 81 | 74 |
Football - technical and coaching | |||
Average number of people employed | |||
Average number of employees | 163 | 165 | 136 |
Commercial | |||
Average number of people employed | |||
Average number of employees | 114 | 121 | 120 |
Media | |||
Average number of people employed | |||
Average number of employees | 85 | 87 | 90 |
Administration and other | |||
Average number of people employed | |||
Average number of employees | 474 | 468 | 445 |
Employee benefit expenses - Key
Employee benefit expenses - Key management compensation (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee benefit expenses | |||
Short-term employee benefits | £ (9,961) | £ (7,620) | £ (8,601) |
Share-based payments | (748) | (5,275) | (3,654) |
Post-employment benefits | (20) | (20) | (71) |
Total key management compensation | £ (10,729) | £ (12,915) | £ (12,326) |
Profit on disposal of intangi_3
Profit on disposal of intangible assets (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Profit on disposal of intangible assets | |||
Profit on disposal of registrations | £ 24,720 | £ 14,709 | £ 9,876 |
Player loan income | 1,079 | 3,410 | 1,050 |
Total profit on disposal of intangible assets | £ 25,799 | £ 18,119 | £ 10,926 |
Net finance costs (Details)
Net finance costs (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net finance costs | |||
Interest payable on bank loans and overdrafts | £ (1,162) | £ (1,458) | £ (1,502) |
Interest payable on secured term loan facility and senior secured notes | (18,351) | (17,567) | (18,784) |
Amortization of issue costs on secured term loan facility and senior secured notes | (647) | (627) | (608) |
Foreign exchange (losses)/gains on retranslation of unhedged US dollar borrowings | (2,650) | 1,816 | |
Unwinding of discount relating to registrations | (2,280) | (3,492) | (2,401) |
Fair value movements on derivative financial instruments: | |||
Embedded foreign exchange derivatives | (380) | (1,089) | (3,534) |
Total finance costs | (25,470) | (24,233) | (25,013) |
Interest receivable on short-term bank deposits | 2,822 | 1,243 | 736 |
Foreign exchange gains on retranslation of unhedged US dollar borrowings | 4,952 | ||
Hedge ineffectiveness on cash flow hedges | 139 | ||
Total finance income | 2,961 | 6,195 | 736 |
Net finance costs | £ (22,509) | £ (18,038) | £ (24,277) |
Income Tax expense - Current ta
Income Tax expense - Current tax and Deferred tax (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Current tax: | |||||
Total current tax (expense)/credit | £ (483) | £ 58 | £ (24,476) | ||
Deferred tax: | |||||
Total deferred tax (expense)/credit | (8,112) | (63,520) | 7,097 | ||
Total tax expense | |||||
Total tax expense | (8,595) | (63,462) | [1] | (17,379) | [1] |
UK and US | |||||
Current tax: | |||||
Current tax on profit for the period | (498) | (1,809) | (19,722) | ||
Adjustment in respect of previous years | 229 | 2,590 | (2,651) | ||
US | |||||
Deferred tax: | |||||
Origination and reversal of temporary differences | (3,452) | (9,371) | (3,379) | ||
Adjustment in respect of previous years | 776 | (1,787) | 1,782 | ||
Impact of change in corporate tax rate | (48,954) | ||||
Total deferred tax (expense)/credit | (2,676) | (60,112) | (1,597) | ||
UK | |||||
Deferred tax: | |||||
Origination and reversal of temporary differences | (5,515) | (3,650) | 6,161 | ||
Adjustment in respect of previous years | 79 | 242 | 938 | ||
Impact of change in corporate tax rate | 1,595 | ||||
Total deferred tax (expense)/credit | (5,436) | (3,408) | 8,694 | ||
Other than UK and US | |||||
Current tax: | |||||
Current tax on profit for the period | £ (214) | £ (723) | £ (2,103) | ||
[1] | Comparative amounts have been restated—see note 33 for further details. |
IncomeTax expense - Reconciliat
IncomeTax expense - Reconciliation of the total tax expense (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018 | Dec. 21, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Reconciliation of the total tax expense | |||||||
Profit before tax | £ 27,476 | £ 25,833 | [1] | £ 56,588 | [1] | ||
Profit before tax multiplied by weighted average US federal corporate income tax rate of 21.0% (2018: 28.0%; 2017: 35.0%) | (5,770) | (7,233) | (19,806) | ||||
Tax effects of: | |||||||
Adjustment in respect of previous years | 1,085 | 923 | 69 | ||||
Difference in tax rates on non-US operations | 63 | 491 | 244 | ||||
Foreign exchange gains on US dollar denominated tax basis | 1,311 | 238 | 2,362 | ||||
Expenses not deductible for tax purposes | (3,093) | (695) | (248) | ||||
Impact of change in US federal corporate income tax rate on opening balance | (48,954) | ||||||
Re-measurement of unrealized foreign exchange US deferred tax asset | (8,795) | ||||||
Re-measurement of foreign tax credit US deferred tax asset | (2,191) | 1,637 | |||||
One time mandatory US tax charge | (1,074) | ||||||
Total tax expense | £ (8,595) | £ (63,462) | [1] | £ (17,379) | [1] | ||
US | |||||||
Tax effects of: | |||||||
Corporate tax rate | 21.00% | 35.00% | 21.00% | 28.00% | 35.00% | ||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Income Tax expense - Additional
Income Tax expense - Additional information related to tax (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income tax related to recognition in other comprehensive income | |||
Deferred tax (note 16) | £ 634 | £ (21,684) | £ (17,116) |
Current tax | (1,900) | 16,251 | |
Total income tax expense recognized in other comprehensive income | (1,266) | (21,684) | (865) |
US | |||
Income tax related to recognition in other comprehensive income | |||
Deferred tax (note 16) | (2,208) | (17,494) | (1,860) |
UK | |||
Income tax related to recognition in other comprehensive income | |||
Deferred tax (note 16) | £ 2,842 | £ (4,190) | £ (15,256) |
Earnings_(loss) per share (Deta
Earnings/(loss) per share (Details) £ / shares in Units, £ in Thousands, shares in Thousands | 12 Months Ended | |||||
Jun. 30, 2019GBP (£)£ / sharesitemshares | Jun. 30, 2018GBP (£)£ / sharesshares | Jun. 30, 2017GBP (£)£ / sharesshares | ||||
Earnings/(loss) per share | ||||||
Profit/(loss) for the year | £ | £ 18,881 | £ (37,629) | [1] | £ 39,209 | [1] | |
Basic earnings/(loss) per share | £ / shares | £ 0.1148 | £ (0.2292) | [1] | £ 0.2390 | [1] | |
Diluted earnings/(loss) per share | £ / shares | [2] | £ 0.1147 | £ (0.2292) | [1] | £ 0.2384 | [1] |
Number of categories of dilutive potential ordinary shares | item | 1 | |||||
Weighted average number of ordinary shares used as the denominator in calculating basic earnings/(loss) per share | 164,526 | 164,195 | 164,025 | |||
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings/(loss) per share | 164,666 | 164,610 | 164,493 | |||
Class A ordinary shares | ||||||
Earnings/(loss) per share | ||||||
Weighted average number of ordinary shares used as the denominator in calculating basic earnings/(loss) per share | 40,526 | 40,195 | 40,025 | |||
Adjustment for assumed conversion into Class A ordinary shares | 140 | 415 | 468 | |||
Class B ordinary shares | ||||||
Earnings/(loss) per share | ||||||
Weighted average number of ordinary shares used as the denominator in calculating basic earnings/(loss) per share | 124,000 | 124,000 | 124,000 | |||
[1] | Comparative amounts have been restated—see note 33 for further details. | |||||
[2] | 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 2019 and 2017, 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, 2019USD ($)$ / shares | Jun. 30, 2019GBP (£)£ / shares | Jun. 30, 2018USD ($)$ / shares | Jun. 30, 2018GBP (£)£ / shares | Jun. 30, 2017USD ($)$ / shares | Jun. 30, 2017GBP (£)£ / shares | |
Dividends | ||||||
Dividends paid | $ 29,615,000 | £ 23,326,000 | $ 29,555,000 | £ 21,982,000 | $ 29,525,000 | £ 23,295,000 |
Dividends paid per share | (per share) | $ 0.18 | £ 0.14 | $ 0.18 | £ 0.13 | $ 0.18 | £ 0.14 |
Property, plant and equipment_2
Property, plant and equipment (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of changes in property, plant and equipment | |||
Opening amount | £ 245,401,000 | £ 244,738,000 | |
Additions | 12,200,000 | 11,311,000 | |
Disposals | (23,000) | ||
Depreciation charge | (11,569,000) | (10,625,000) | £ (10,106,000) |
Closing amount | 246,032,000 | 245,401,000 | 244,738,000 |
Net book amount of property, plant and equipment pledged as security | 202,664,000 | 205,388,000 | |
Cost / gross value | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 361,957,000 | 354,083,000 | |
Closing amount | 368,632,000 | 361,957,000 | 354,083,000 |
Accumulated depreciation, amortization and impairment | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | (116,556,000) | (109,345,000) | |
Closing amount | (122,600,000) | (116,556,000) | (109,345,000) |
Freehold property | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 219,335,000 | 222,628,000 | |
Additions | 16,000 | ||
Disposals | (5,000) | ||
Transfers | (241,000) | ||
Depreciation charge | (3,284,000) | (3,288,000) | |
Closing amount | 215,826,000 | 219,335,000 | 222,628,000 |
Freehold property | Cost / gross value | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 269,367,000 | 269,372,000 | |
Closing amount | 268,981,000 | 269,367,000 | 269,372,000 |
Freehold property | Accumulated depreciation, amortization and impairment | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | (50,032,000) | (46,744,000) | |
Closing amount | (53,155,000) | (50,032,000) | (46,744,000) |
Plant and machinery | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 4,169,000 | 3,385,000 | |
Additions | 3,573,000 | 2,605,000 | |
Transfers | 4,000 | ||
Depreciation charge | (2,589,000) | (1,821,000) | |
Closing amount | 5,157,000 | 4,169,000 | 3,385,000 |
Plant and machinery | Cost / gross value | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 34,790,000 | 34,475,000 | |
Closing amount | 34,845,000 | 34,790,000 | 34,475,000 |
Plant and machinery | Accumulated depreciation, amortization and impairment | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | (30,621,000) | (31,090,000) | |
Closing amount | (29,688,000) | (30,621,000) | (31,090,000) |
Fixtures and fittings | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 21,897,000 | 18,725,000 | |
Additions | 8,611,000 | 8,706,000 | |
Disposals | (18,000) | ||
Transfers | 237,000 | ||
Depreciation charge | (5,696,000) | (5,516,000) | |
Closing amount | 25,049,000 | 21,897,000 | 18,725,000 |
Fixtures and fittings | Cost / gross value | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 57,800,000 | 50,236,000 | |
Closing amount | 64,806,000 | 57,800,000 | 50,236,000 |
Fixtures and fittings | Accumulated depreciation, amortization and impairment | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | (35,903,000) | (31,511,000) | |
Closing amount | £ (39,757,000) | £ (35,903,000) | £ (31,511,000) |
Property, plant and equipment -
Property, plant and equipment - Depreciation methods and useful lives (Details) | 12 Months Ended |
Jun. 30, 2019 | |
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 |
Investment property (Details)
Investment property (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Investment property | |||
Opening amount | £ 13,836,000 | £ 13,966,000 | |
Additions | 12,424,000 | ||
Depreciation charge | (157,000) | (130,000) | £ (122,000) |
Impairment charge | (1,124,000) | ||
Closing amount | 24,979,000 | 13,836,000 | 13,966,000 |
Rental revenue | 1,749,000 | 1,371,000 | 1,260,000 |
Direct operating expenses from properties, all of which generated rental revenue | £ 416,000 | 182,000 | 679,000 |
Useful lives of investment property (in years) | 50 years | ||
Cost / gross value | |||
Investment property | |||
Opening amount | £ 19,769,000 | 19,769,000 | |
Closing amount | 32,193,000 | 19,769,000 | 19,769,000 |
Accumulated depreciation, amortization and impairment | |||
Investment property | |||
Opening amount | (5,933,000) | (5,803,000) | |
Closing amount | (7,214,000) | (5,933,000) | £ (5,803,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed | |||
Investment property | |||
Opening amount | 16,450,000 | ||
Closing amount | £ 27,633,000 | £ 16,450,000 |
Intangible assets - Reconciliat
Intangible assets - Reconciliation of intangible assets (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of intangible assets | |||
Opening amount | £ 799,640 | £ 717,544 | |
Additions | 106,911 | 247,677 | |
Disposals | (8,540) | (27,201) | |
Amortization charge | (129,154) | (138,380) | £ (124,434) |
Closing amount | 768,857 | 799,640 | 717,544 |
Cost / gross value | |||
Reconciliation of intangible assets | |||
Opening amount | 1,217,426 | 1,073,505 | |
Closing amount | 1,207,745 | 1,217,426 | 1,073,505 |
Accumulated depreciation, amortization and impairment | |||
Reconciliation of intangible assets | |||
Opening amount | (417,786) | (355,961) | |
Closing amount | (438,888) | (417,786) | (355,961) |
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 | 369,508 | 290,520 | |
Additions | 103,326 | 243,182 | |
Disposals | (8,540) | (27,201) | |
Amortization charge | (125,532) | (136,993) | |
Closing amount | 338,762 | 369,508 | 290,520 |
Registrations | Cost / gross value | |||
Reconciliation of intangible assets | |||
Opening amount | 785,594 | 645,433 | |
Closing amount | 772,328 | 785,594 | 645,433 |
Registrations | Accumulated depreciation, amortization and impairment | |||
Reconciliation of intangible assets | |||
Opening amount | (416,086) | (354,913) | |
Closing amount | (433,566) | (416,086) | (354,913) |
Other intangible assets | |||
Reconciliation of intangible assets | |||
Opening amount | 8,679 | 5,571 | |
Additions | 3,585 | 4,495 | |
Amortization charge | (3,622) | (1,387) | |
Closing amount | 8,642 | 8,679 | 5,571 |
Other intangible assets | Cost / gross value | |||
Reconciliation of intangible assets | |||
Opening amount | 10,379 | 6,619 | |
Closing amount | 13,964 | 10,379 | 6,619 |
Other intangible assets | Accumulated depreciation, amortization and impairment | |||
Reconciliation of intangible assets | |||
Opening amount | (1,700) | (1,048) | |
Closing amount | £ (5,322) | £ (1,700) | £ (1,048) |
Intangible assets - Impairment
Intangible assets - Impairment tests for goodwill (Details) - Goodwill | 12 Months Ended | |
Jun. 30, 2019GBP (£)item | Jun. 30, 2018 | |
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) | 2.00% | 2.50% |
Number of material cash generating units for impairment review | item | 1 | |
Pre-tax discount rate (as a percent) | 7.60% | 7.80% |
Percentage of increase in discount rate for sensitivity analysis | 1.00% | |
Impairment loss | £ | £ 0 |
Intangible assets - Amortizatio
Intangible assets - Amortization methods and useful lives (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Website, mobile applications and software | |
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 |
Intangible assets - Significant
Intangible assets - Significant estimates and judgments - fair value and impairment of registrations (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Intangible assets | |||
Intangible assets and goodwill | £ 768,857,000 | £ 799,640,000 | £ 717,544,000 |
Cost / gross value | |||
Intangible assets | |||
Intangible assets and goodwill | 1,207,745,000 | 1,217,426,000 | 1,073,505,000 |
Accumulated depreciation, amortization and impairment | |||
Intangible assets | |||
Intangible assets and goodwill | (438,888,000) | (417,786,000) | (355,961,000) |
Registrations | |||
Intangible assets | |||
Intangible assets and goodwill | £ 338,762,000 | 369,508,000 | 290,520,000 |
Useful life of assets beyond one year after current year | 4 years | ||
Registrations | Less than 1 year | |||
Intangible assets | |||
Intangible assets and goodwill | £ 124,600,000 | ||
Registrations | Cost / gross value | |||
Intangible assets | |||
Intangible assets and goodwill | 772,328,000 | 785,594,000 | 645,433,000 |
Registrations | Accumulated depreciation, amortization and impairment | |||
Intangible assets | |||
Intangible assets and goodwill | (433,566,000) | (416,086,000) | (354,913,000) |
Other intangible assets | |||
Intangible assets | |||
Intangible assets and goodwill | 8,642,000 | 8,679,000 | 5,571,000 |
Other intangible assets | Cost / gross value | |||
Intangible assets | |||
Intangible assets and goodwill | 13,964,000 | 10,379,000 | 6,619,000 |
Other intangible assets | Cost / gross value | Internally generated | |||
Intangible assets | |||
Intangible assets and goodwill | 1,979,000 | 1,412,000 | |
Other intangible assets | Accumulated depreciation, amortization and impairment | |||
Intangible assets | |||
Intangible assets and goodwill | (5,322,000) | (1,700,000) | £ (1,048,000) |
Other intangible assets | Accumulated depreciation, amortization and impairment | Internally generated | |||
Intangible assets | |||
Intangible assets and goodwill | £ (667,000) | £ (39,000) |
Deferred tax - Analysis of the
Deferred tax - Analysis of the deferred tax (Details) - GBP (£) £ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Analysis of deferred tax | |||||
Deferred tax assets | £ (58,415) | £ (63,332) | [1] | £ (141,485) | [1] |
Deferred tax labilities | 31,865 | 29,134 | [1] | 21,536 | [1] |
Net deferred tax asset | (26,550) | (34,198) | (119,949) | ||
US | |||||
Analysis of deferred tax | |||||
Deferred tax assets | (58,415) | (63,332) | |||
Net deferred tax asset | (58,415) | (63,332) | (141,485) | ||
UK | |||||
Analysis of deferred tax | |||||
Deferred tax labilities | 31,865 | 29,134 | |||
Net deferred tax asset | £ 31,865 | £ 29,134 | £ 21,536 | ||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Deferred tax - Movements in net
Deferred tax - Movements in net deferred tax asset (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | £ (34,198,000) | £ (119,949,000) | |
Expensed/(credited) to statement of profit or loss | 8,112,000 | 63,520,000 | £ (7,097,000) |
(Credited)/expensed to other comprehensive income | (634,000) | 21,684,000 | 17,116,000 |
Expense relating to share-based payments | 170,000 | ||
Reclassification to tax receivable | 547,000 | ||
Net deferred tax liability/(asset) at end of period | (26,550,000) | (34,198,000) | (119,949,000) |
US | |||
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | (63,332,000) | (141,485,000) | |
Expensed/(credited) to statement of profit or loss | 2,676,000 | 60,112,000 | 1,597,000 |
(Credited)/expensed to other comprehensive income | 2,208,000 | 17,494,000 | 1,860,000 |
Expense relating to share-based payments | 33,000 | ||
Reclassification to tax receivable | 547,000 | ||
Net deferred tax liability/(asset) at end of period | (58,415,000) | (63,332,000) | (141,485,000) |
Unrecognised deferred tax assets | 18,971,000 | 19,610,000 | |
US | Foreign tax credits | |||
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | (30,814,000) | (40,047,000) | |
Expensed/(credited) to statement of profit or loss | (279,000) | 13,504,000 | |
(Credited)/expensed to other comprehensive income | 942,000 | (4,271,000) | |
Expense relating to share-based payments | (137,000) | ||
Net deferred tax liability/(asset) at end of period | (30,288,000) | (30,814,000) | (40,047,000) |
US | Net operating losses | |||
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | (3,399,000) | (1,070,000) | |
Expensed/(credited) to statement of profit or loss | 795,000 | (2,096,000) | |
(Credited)/expensed to other comprehensive income | 2,604,000 | (233,000) | |
Net deferred tax liability/(asset) at end of period | (3,399,000) | (1,070,000) | |
US | Unrealized foreign exchange and derivative movements | |||
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | 1,196,000 | (32,859,000) | |
Expensed/(credited) to statement of profit or loss | (344,000) | 11,931,000 | |
(Credited)/expensed to other comprehensive income | (1,338,000) | 22,124,000 | |
Net deferred tax liability/(asset) at end of period | (486,000) | 1,196,000 | (32,859,000) |
US | Intangible assets | |||
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | (21,221,000) | (47,247,000) | |
Expensed/(credited) to statement of profit or loss | 6,163,000 | 26,026,000 | |
Net deferred tax liability/(asset) at end of period | (15,058,000) | (21,221,000) | (47,247,000) |
US | Deferred revenue | |||
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | (7,727,000) | (15,459,000) | |
Expensed/(credited) to statement of profit or loss | (21,000) | 7,732,000 | |
Net deferred tax liability/(asset) at end of period | (7,748,000) | (7,727,000) | (15,459,000) |
US | Other | |||
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | (1,367,000) | (4,803,000) | |
Expensed/(credited) to statement of profit or loss | (3,638,000) | 3,015,000 | |
(Credited)/expensed to other comprehensive income | (126,000) | ||
Expense relating to share-based payments | 170,000 | ||
Reclassification to tax receivable | 547,000 | ||
Net deferred tax liability/(asset) at end of period | (4,835,000) | (1,367,000) | (4,803,000) |
UK | |||
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | 29,134,000 | 21,536,000 | |
Expensed/(credited) to statement of profit or loss | 5,436,000 | 3,408,000 | (8,694,000) |
(Credited)/expensed to other comprehensive income | (2,842,000) | 4,190,000 | 15,256,000 |
Expense relating to share-based payments | 137,000 | ||
Net deferred tax liability/(asset) at end of period | 31,865,000 | 29,134,000 | 21,536,000 |
Unrecognised deferred tax assets | 0 | 0 | |
UK | Accelerated tax depreciation | |||
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | 805,000 | 836,000 | |
Expensed/(credited) to statement of profit or loss | (99,000) | (31,000) | |
Net deferred tax liability/(asset) at end of period | 706,000 | 805,000 | 836,000 |
UK | Rolled over gain on player disposal | |||
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | 7,389,000 | 5,176,000 | |
Expensed/(credited) to statement of profit or loss | 1,933,000 | 2,213,000 | |
Net deferred tax liability/(asset) at end of period | 9,322,000 | 7,389,000 | 5,176,000 |
UK | Non qualifying property | |||
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | 11,898,000 | 11,901,000 | |
Expensed/(credited) to statement of profit or loss | (3,000) | (3,000) | |
Net deferred tax liability/(asset) at end of period | 11,895,000 | 11,898,000 | 11,901,000 |
UK | Property fair value adjustment | |||
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | 13,147,000 | 13,576,000 | |
Expensed/(credited) to statement of profit or loss | (429,000) | (429,000) | |
Net deferred tax liability/(asset) at end of period | 12,718,000 | 13,147,000 | 13,576,000 |
UK | Net operating losses | |||
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | (112,000) | (27,000) | |
Expensed/(credited) to statement of profit or loss | 112,000 | (85,000) | |
Net deferred tax liability/(asset) at end of period | (112,000) | (27,000) | |
UK | Other | |||
Movements in net deferred tax asset | |||
Net deferred tax liability/(asset) at beginning of period | (3,993,000) | (9,926,000) | |
Expensed/(credited) to statement of profit or loss | 3,922,000 | 1,743,000 | |
(Credited)/expensed to other comprehensive income | (2,842,000) | 4,190,000 | |
Expense relating to share-based payments | 137,000 | ||
Net deferred tax liability/(asset) at end of period | £ (2,776,000) | £ (3,993,000) | £ (9,926,000) |
Inventories (Details)
Inventories (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Inventories | |||
Finished goods | £ 2,130,000 | £ 1,416,000 | |
Cost of inventory recognized during the period | £ 8,664,000 | £ 8,450,000 | £ 8,598,000 |
Trade receivables (Details)
Trade receivables (Details) - GBP (£) | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Trade receivables | |||
Trade receivables | £ 33,740,000 | £ 123,797,000 | |
Less: non-current portion | |||
Trade receivables | 9,889,000 | 4,724,000 | £ 15,399,000 |
Non-current trade receivables | 9,889,000 | 4,724,000 | 15,399,000 |
Current trade and receivables | 23,851,000 | 119,073,000 | £ 61,207,000 |
Transfer fees receivable | 18,270,000 | 29,214,000 | |
Deferred revenue contractually payable to Group | 12,725,000 | 77,357,000 | |
Due after 1 year | |||
Less: non-current portion | |||
Transfer fees receivable | 9,889,000 | 4,724,000 | |
Cost / gross value | |||
Trade receivables | |||
Trade receivables | 46,694,000 | 133,505,000 | |
Accumulated impairment | |||
Trade receivables | |||
Trade receivables | (12,954,000) | (9,708,000) | |
Not measured at fair value in statement of financial position but for which fair value is disclosed | |||
Trade receivables | |||
Trade receivables | £ 34,259,000 | £ 124,050,000 |
Derivative financial instrume_3
Derivative financial instruments (Details) - GBP (£) £ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure of detailed information about financial instruments | |||
Derivative financial instruments, assets | £ 342 | £ 5,966 | |
Derivative financial instruments, liabilities | (2,298) | ||
Derivative financial instruments, non-current assets | 30 | 4,807 | £ 1,666 |
Derivative financial instruments, non-current liabilities | (2,298) | (655) | |
Derivative financial instruments, current assets | 312 | 1,159 | 3,218 |
Derivative financial instruments, current liabilities | £ (1,253) | ||
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 | 245 | 624 | |
Derivative financial instruments, non-current assets | 30 | 317 | |
Forward foreign currency contracts | At fair value through profit and loss | |||
Disclosure of detailed information about financial instruments | |||
Derivative financial instruments, assets | 97 | £ 852 | |
Interest rate swap | Derivatives used for hedging: | |||
Disclosure of detailed information about financial instruments | |||
Derivative financial instruments, liabilities | (2,298) | ||
Derivative financial instruments, non-current liabilities | £ (2,298) |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - GBP (£) £ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Cash and cash equivalents | ||
Cash at bank and in hand | £ 307,637 | £ 242,022 |
Share capital (Details)
Share capital (Details) £ in Thousands | 12 Months Ended | |||
Jun. 30, 2019GBP (£)Voteitemshares | Jun. 30, 2018GBP (£)shares | Jun. 30, 2017GBP (£)shares | Jun. 30, 2019$ / sharesshares | |
Ordinary shares | ||||
Balance at the beginning | £ | £ 53 | £ 53 | ||
Employee share-based compensation awards - issue of shares | £ | £ 1 | |||
Balance at the end | £ | £ 53 | £ 53 | £ 53 | |
Number of class of ordinary shares | item | 2 | |||
Number of class A shares to which one B share is convertible | 1 | |||
Proportion of votes required for special resolutions | 66.67% | |||
Ordinary shares | ||||
Number of shares | ||||
Balance at the beginning (in shares) | 164,526,000 | 164,195,000 | ||
Employee share-based compensation awards - issue of shares (in shares) | 45,000 | 331,000 | ||
Balance at the end (in shares) | 164,571,000 | 164,526,000 | 164,195,000 | |
Ordinary shares | ||||
Balance at the beginning | £ | £ 53 | £ 53 | ||
Balance at the end | £ | £ 53 | £ 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 | 40,570,967 | |||
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 | 124,000,000 |
Trade and other payables (Detai
Trade and other payables (Details) - GBP (£) | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Trade and other payables | |||
Trade payables | £ 196,644,000 | £ 266,316,000 | |
Other payables | 4,689,000 | 4,754,000 | |
Accrued expenses | 94,381,000 | 83,280,000 | |
Social security and other taxes | 13,855,000 | 17,917,000 | |
Total trade and other payables | 309,569,000 | 372,267,000 | |
Less: non-current portion | |||
Trade payables | 77,438,000 | 102,067,000 | |
Other payables | 1,745,000 | 2,204,000 | |
Non-current trade and other payables | 79,183,000 | 104,271,000 | £ 83,587,000 |
Current trade and other payables | 230,386,000 | 267,996,000 | £ 190,315,000 |
Transfer fees and other associated costs | 187,544,000 | 258,316,000 | |
Liabilities from share-based payment transactions | 1,165,000 | 4,795,000 | |
Not measured at fair value in statement of financial position but for which fair value is disclosed | |||
Trade and other payables | |||
Trade payables | 199,922,000 | 270,548,000 | |
Due after 1 year | |||
Less: non-current portion | |||
Transfer fees and other associated costs | 77,438,000 | 102,067,000 | |
Between 1 and 2 years | |||
Less: non-current portion | |||
Transfer fees and other associated costs | 59,889,000 | 65,495,000 | |
Between 2 and 5 years | |||
Less: non-current portion | |||
Transfer fees and other associated costs | £ 17,549,000 | £ 36,572,000 |
Borrowings (Details)
Borrowings (Details) | 12 Months Ended | ||||||
Jun. 30, 2019GBP (£) | Jun. 30, 2018GBP (£) | Jun. 30, 2019USD ($) | Jun. 30, 2019GBP (£) | Jun. 30, 2018USD ($) | Jun. 30, 2018GBP (£) | Jun. 30, 2017GBP (£) | |
Disclosure of detailed information about borrowings | |||||||
Total borrowings | £ 511,232,000 | £ 495,768,000 | |||||
Non-current borrowings | 505,779,000 | 486,694,000 | £ 497,630,000 | ||||
Current borrowings | 5,453,000 | 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 | 330,757,000 | 318,347,000 | |||||
Non-current borrowings | 330,757,000 | 318,347,000 | |||||
Unamortized issue costs on borrowings | 3,414,000 | 3,770,000 | |||||
Principal amount / Notional amount | $ | $ 425,000,000 | $ 425,000,000 | |||||
Secured term loan facility | |||||||
Disclosure of detailed information about borrowings | |||||||
Total borrowings | 175,022,000 | 168,347,000 | |||||
Non-current borrowings | 175,022,000 | 168,347,000 | |||||
Unamortized issue costs on borrowings | 1,894,000 | 2,185,000 | |||||
Principal amount / Notional amount | $ | $ 225,000,000 | $ 225,000,000 | |||||
Secured bank loan | |||||||
Disclosure of detailed information about borrowings | |||||||
Total borrowings | 3,750,000 | ||||||
Accrued interest on senior secured notes | |||||||
Disclosure of detailed information about borrowings | |||||||
Total borrowings | 5,453,000 | £ 5,324,000 | |||||
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 | |||||||
Debt redemption, percentage of aggregate principal amount | 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 | |||||||
Debt redemption, percentage of aggregate principal amount | 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% |
Cash flow information (Details)
Cash flow information (Details) - GBP (£) | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Cash flow information | |||||
Profit before tax | £ 27,476,000 | £ 25,833,000 | [1] | £ 56,588,000 | [1] |
Depreciation | 11,726,000 | 10,755,000 | 10,228,000 | ||
Impairment charge/(reversal) | 1,124,000 | (4,753,000) | |||
Amortization | 129,154,000 | 138,380,000 | 124,434,000 | ||
Profit on disposal of intangible assets | (25,799,000) | (18,119,000) | (10,926,000) | ||
Net finance costs | 22,509,000 | 18,038,000 | 24,277,000 | ||
(Profit)/loss on disposal of property, plant and equipment | (81,000) | 43,000 | |||
Non-cash employee benefit expense - equity-settled share-based payments | 699,000 | 2,915,000 | 2,187,000 | ||
Foreign exchange (gains)/losses on operating activities | (76,000) | 994,000 | 2,646,000 | ||
Reclassified from hedging reserve | 6,250,000 | 13,914,000 | 5,290,000 | ||
Changes in working capital: | |||||
Inventories | (714,000) | 221,000 | (711,000) | ||
Prepayments | (2,168,000) | 2,638,000 | 895,000 | ||
Contract assets - accrued revenue | (1,514,000) | (9,263,000) | 12,198,000 | ||
Trade receivables | 82,086,000 | (64,492,000) | 5,089,000 | ||
Other receivables | (1,081,000) | 163,000 | (657,000) | ||
Contract liabilities - deferred revenue | 5,903,000 | (25,496,000) | 18,576,000 | ||
Trade and other payables | 8,034,000 | 23,204,000 | 6,355,000 | ||
Cash generated from operations | 263,609,000 | 119,604,000 | 251,759,000 | ||
Adjustments for: | |||||
Increase/(decrease) in changes to trade receivables | 7,971,000 | 18,374,000 | (3,224,000) | ||
Increase/(decrease) in changes in trade and other payables | £ (70,732,000) | £ 74,088,000 | £ (26,428,000) | ||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Cash flow information - Net deb
Cash flow information - Net debt (Details) - GBP (£) £ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of detailed information about borrowings | ||
Net debt at beginning of the period | £ 253,746 | £ 213,087 |
Net debt cash flow adjustment | (78,339) | 31,337 |
Net debt non-cash adjustment | 28,188 | 9,322 |
Net debt at end of the period | 203,595 | 253,746 |
Non-current borrowings | ||
Disclosure of detailed information about borrowings | ||
Net debt at beginning of the period | 486,694 | 497,630 |
Net debt non-cash adjustment | 19,085 | (10,936) |
Net debt at end of the period | 505,779 | 486,694 |
Current borrowings | ||
Disclosure of detailed information about borrowings | ||
Net debt at beginning of the period | 9,074 | 5,724 |
Net debt cash flow adjustment | (21,973) | (17,083) |
Net debt non-cash adjustment | 18,352 | 20,433 |
Net debt at end of the period | 5,453 | 9,074 |
Cash and cash equivalents | ||
Disclosure of detailed information about borrowings | ||
Net debt at beginning of the period | (242,022) | (290,267) |
Net debt cash flow adjustment | (56,366) | 48,420 |
Net debt non-cash adjustment | (9,249) | (175) |
Net debt at end of the period | £ (307,637) | £ (242,022) |
Share-based payments (Details)
Share-based payments (Details) | 12 Months Ended | |||
Jun. 30, 2019$ / sharesshares | Jun. 30, 2019GBP (£)EquityInstruments£ / sharesshares | Jun. 30, 2018GBP (£)EquityInstruments | Jun. 30, 2017GBP (£) | |
Disclosure of terms and conditions of share-based payment arrangement | ||||
Expenses related to equity-settled share-based payment transactions | £ | £ 699,000 | £ 2,915,000 | £ 2,187,000 | |
Expenses related to cash-settled share-based payment transactions | £ | £ 552,000 | £ 3,301,000 | £ 1,903,000 | |
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 | 15,059,727 | 15,059,727 | ||
Outstanding in share-based payment arrangement at beginning of period | 83,153 | |||
Awarded | 55,976 | |||
Vested | (44,577) | |||
Outstanding in share-based payment arrangement at end of period | 94,552 | 83,153 | ||
Fair value of shares awarded (per share) | (per share) | $ 18.30 | £ 14.34 |
Pension arrangements (Details)
Pension arrangements (Details) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019GBP (£)item | Jun. 30, 2018GBP (£) | Jun. 30, 2017GBP (£) | 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 | 0 | 1,917,000 | £ 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 pension arrangements | 2,204,000 | 2,638,000 | |||
Football League Pension and Life Assurance Scheme | Less than 1 year | |||||
Pension arrangements | |||||
Present value of outstanding contributions to pension arrangements | 459,000 | 434,000 | |||
Football League Pension and Life Assurance Scheme | Due after 1 year | |||||
Pension arrangements | |||||
Present value of outstanding contributions to pension arrangements | £ 1,745,000 | £ 2,204,000 |
Pension arrangements - Defined
Pension arrangements - Defined contribution schemes (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension arrangements | |||
Contributions to defined contribution pension arrangements | £ 2,882,000 | £ 2,686,000 | £ 2,435,000 |
Amount of contributions due that had not been paid to pension schemes | £ 335,000 | £ 295,000 |
Financial risk management - Mar
Financial risk management - Market risk (Details) € in Thousands | Jun. 30, 2019EUR (€)€ / £ | Jun. 30, 2018EUR (€)€ / £ | Jun. 30, 2019EUR (€) | Jun. 30, 2019USD ($) | Jun. 30, 2019EUR (€)$ / £ | Jun. 30, 2019EUR (€)€ / £ | Jun. 30, 2019EUR (€) | Jun. 30, 2019GBP (£) | Jun. 30, 2018EUR (€) | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€)$ / £ | Jun. 30, 2018EUR (€)€ / £ | Jun. 30, 2018EUR (€) | Jun. 30, 2018GBP (£) | Jun. 30, 2017EUR (€) | Jun. 30, 2017USD ($) | Jun. 30, 2017GBP (£)$ / £ | Jun. 30, 2017GBP (£)€ / £ | Jun. 30, 2017GBP (£) | Jun. 30, 2019USD ($) | Jun. 30, 2019GBP (£) | Jun. 30, 2018USD ($) | Jun. 30, 2018GBP (£) | Jun. 30, 2016GBP (£) | ||
Details of currency and interest rate risks | ||||||||||||||||||||||||||
Revenue | £ 627,122,000 | £ 589,758,000 | [1] | £ 581,254,000 | [1] | |||||||||||||||||||||
Forward foreign currency contracts outstanding at the balance sheet date | ||||||||||||||||||||||||||
Average exchange rate | 1.2959 | 1.1346 | 1.3465 | 1.1327 | 1.2774 | 1.1663 | ||||||||||||||||||||
Derivative financial instruments, assets | £ 342,000 | £ 5,966,000 | ||||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||||||
Trade receivables | 33,740,000 | 123,797,000 | ||||||||||||||||||||||||
Derivative financial assets | 342,000 | 5,966,000 | ||||||||||||||||||||||||
Cash and cash equivalents | £ 290,267,000 | £ 290,267,000 | £ 290,267,000 | 307,637,000 | 242,022,000 | £ 229,194,000 | ||||||||||||||||||||
Trade and other payables | (309,569,000) | (372,267,000) | ||||||||||||||||||||||||
Borrowings | (511,232,000) | (495,768,000) | ||||||||||||||||||||||||
Derivative financial liabilities | (2,298,000) | |||||||||||||||||||||||||
Embedded foreign exchange derivatives | ||||||||||||||||||||||||||
Forward foreign currency contracts outstanding at the balance sheet date | ||||||||||||||||||||||||||
Derivative financial instruments, assets | 245,000 | 624,000 | ||||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||||||
Derivative financial assets | 245,000 | 624,000 | ||||||||||||||||||||||||
Buy Euro | Forward foreign currency contracts | ||||||||||||||||||||||||||
Forward foreign currency contracts outstanding at the balance sheet date | ||||||||||||||||||||||||||
Average exchange rate | € / £ | 1.1272 | 1.1523 | ||||||||||||||||||||||||
Principal amount / Notional amount | € 6,639 | € 46,000 | € 6,639 | € 6,639 | € 6,639 | € 6,639 | € 46,000 | € 46,000 | € 46,000 | € 46,000 | 5,890,000 | 39,919,000 | ||||||||||||||
Derivative financial instruments, assets | 97,000 | 852,000 | ||||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||||||
Derivative financial assets | 97,000 | 852,000 | ||||||||||||||||||||||||
Interest rate risk | ||||||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||||||
Percentage of reasonably possible change in risk assumption | 1.00% | 1.00% | ||||||||||||||||||||||||
Euro | ||||||||||||||||||||||||||
Details of currency and interest rate risks | ||||||||||||||||||||||||||
Revenue | € | € 94,400 | € 43,400 | € 47,200 | |||||||||||||||||||||||
Forward foreign currency contracts outstanding at the balance sheet date | ||||||||||||||||||||||||||
Derivative financial instruments, assets | 852,000 | |||||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||||||
Contract assets - accrued revenue | 713,000 | |||||||||||||||||||||||||
Trade receivables | 10,286,000 | 10,720,000 | ||||||||||||||||||||||||
Derivative financial assets | 852,000 | |||||||||||||||||||||||||
Cash and cash equivalents | 30,276,000 | 61,854,000 | ||||||||||||||||||||||||
Trade and other payables | (22,657,000) | (137,018,000) | ||||||||||||||||||||||||
Exposure to foreign currency, net | 18,618,000 | (63,592,000) | ||||||||||||||||||||||||
Euro | Currency risk | ||||||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||||||
Percentage of reasonably possible change in risk assumption | 10.00% | 10.00% | ||||||||||||||||||||||||
Increase (decrease) in post-tax profit due to reasonably possible strengthening of GBP against currency | (2,100,000) | 4,200,000 | ||||||||||||||||||||||||
Increase (decrease) in equity due to reasonably possible strengthening of GBP against currency | (2,100,000) | 4,200,000 | ||||||||||||||||||||||||
Increase (decrease) in post-tax profit due to reasonably possible weakening of GBP against currency | 1,600,000 | (5,200,000) | ||||||||||||||||||||||||
Increase (decrease) in equity due to reasonably possible weakening of GBP against currency | 1,600,000 | (5,200,000) | ||||||||||||||||||||||||
US dollar | ||||||||||||||||||||||||||
Details of currency and interest rate risks | ||||||||||||||||||||||||||
Revenue | $ | $ 155,900,000 | $ 164,400,000 | $ 157,900,000 | |||||||||||||||||||||||
Forward foreign currency contracts outstanding at the balance sheet date | ||||||||||||||||||||||||||
Derivative financial instruments, assets | 5,114,000 | |||||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||||||
Contract assets - accrued revenue | 1,316,000 | |||||||||||||||||||||||||
Trade receivables | 10,718,000 | 89,262,000 | ||||||||||||||||||||||||
Derivative financial assets | 5,114,000 | |||||||||||||||||||||||||
Cash and cash equivalents | 244,156,000 | 127,688,000 | ||||||||||||||||||||||||
Trade and other payables | (1,609,000) | (1,033,000) | ||||||||||||||||||||||||
Borrowings | (505,779,000) | (492,018,000) | ||||||||||||||||||||||||
Derivative financial liabilities | (2,298,000) | |||||||||||||||||||||||||
Exposure to foreign currency, net | (253,496,000) | (270,987,000) | ||||||||||||||||||||||||
US dollar | Currency risk | ||||||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||||||
Percentage of reasonably possible change in risk assumption | 10.00% | 10.00% | ||||||||||||||||||||||||
Increase (decrease) in post-tax profit due to reasonably possible strengthening of GBP against currency | 21,800,000 | 17,800,000 | ||||||||||||||||||||||||
Increase (decrease) in equity due to reasonably possible strengthening of GBP against currency | 21,800,000 | 17,800,000 | ||||||||||||||||||||||||
Increase (decrease) in post-tax profit due to reasonably possible weakening of GBP against currency | £ (29,600,000) | £ (21,700,000) | ||||||||||||||||||||||||
Increase (decrease) in equity due to reasonably possible weakening of GBP against currency | £ (29,600,000) | £ (21,700,000) | ||||||||||||||||||||||||
Secured term loan facility and senior secured notes | ||||||||||||||||||||||||||
Forward foreign currency contracts outstanding at the balance sheet date | ||||||||||||||||||||||||||
Principal amount / Notional amount | $ | $ 650,000,000 | $ 650,000,000 | ||||||||||||||||||||||||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Financial risk management - Cre
Financial risk management - Credit risk (Details) - GBP (£) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Details of credit risk | ||
Number of days for payment that specific agreements may go beyond | 30 days | |
Trade receivables | £ 33,740,000 | £ 123,797,000 |
Transfer fees receivable | £ 18,270,000 | 29,214,000 |
Percentage of provision for trade receivables that are past due and impaired | 100.00% | |
Minimum | ||
Details of credit risk | ||
Credit term for other sales | 14 days | |
Maximum | ||
Details of credit risk | ||
Credit term for other sales | 30 days | |
Cost / gross value | ||
Details of credit risk | ||
Trade receivables | £ 46,694,000 | 133,505,000 |
Trade receivables | Cost / gross value | ||
Details of credit risk | ||
Financial assets | 46,694,000 | 133,505,000 |
Trade receivables | Cost / gross value | Neither past due nor impaired | ||
Details of credit risk | ||
Financial assets | 29,437,000 | 111,912,000 |
Trade receivables | Cost / gross value | Past due, not impaired | ||
Details of credit risk | ||
Financial assets | 4,303,000 | 11,885,000 |
Trade receivables | Cost / gross value | Past due, fully impaired | ||
Details of credit risk | ||
Financial assets | £ 12,954,000 | £ 9,708,000 |
Financial risk management - Mov
Financial risk management - Movements on provision for impairment (Details) - Trade receivables - Accumulated impairment - GBP (£) £ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Movements on the provision for impairment of trade receivables | ||
Provision at beginning of period | £ 9,708 | £ 14,113 |
Increase in provision recognized in profit or loss during the year | 985 | 160 |
Receivables written off during the year as uncollectible | (279) | (6,943) |
Receivables offset against contract liabilities - deferred revenue | 2,517 | 2,591 |
Foreign exchange losses/(gains) on retranslation recognized in profit or loss during the year | 23 | (213) |
Provision at end of period | £ 12,954 | £ 9,708 |
Financial risk management - Liq
Financial risk management - Liquidity risk (Details) - GBP (£) | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Details of liquidity risk | ||||
Cash and cash equivalents | £ 307,637,000 | £ 242,022,000 | £ 290,267,000 | £ 229,194,000 |
Less than 1 year | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 236,160,000 | 272,749,000 | ||
Financial liabilities, undiscounted cash flows | 236,523,000 | 271,149,000 | ||
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 | 217,136,000 | 250,300,000 | ||
Less than 1 year | Borrowings | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 19,024,000 | 22,449,000 | ||
Less than 1 year | Cash outflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | 460,000 | |||
Less than 1 year | Cash inflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | (97,000) | (1,600,000) | ||
Between 1 and 2 years | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 80,566,000 | 86,550,000 | ||
Financial liabilities, undiscounted cash flows | 81,026,000 | 85,802,000 | ||
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 | 61,542,000 | 67,858,000 | ||
Between 1 and 2 years | Borrowings | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 19,024,000 | 18,692,000 | ||
Between 1 and 2 years | Cash outflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | 460,000 | |||
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 | 76,730,000 | 96,355,000 | ||
Financial liabilities, undiscounted cash flows | 78,109,000 | 94,110,000 | ||
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 | 19,657,000 | 40,280,000 | ||
Between 2 and 5 years | Borrowings | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 57,073,000 | 56,075,000 | ||
Between 2 and 5 years | Cash outflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | 1,379,000 | |||
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 | 555,441,000 | 554,639,000 | ||
Financial liabilities, undiscounted cash flows | 555,441,000 | 553,891,000 | ||
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 | £ 555,441,000 | 554,448,000 | ||
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, 2019USD ($) | Jun. 30, 2019$ / £ | Jun. 30, 2019€ / £ | Jun. 30, 2019GBP (£) | Jun. 30, 2018USD ($) | Jun. 30, 2018$ / £ | Jun. 30, 2018€ / £ | Jun. 30, 2018GBP (£) | Jun. 30, 2017$ / £ | Jun. 30, 2017€ / £ | Jun. 30, 2017GBP (£) |
Financial risk management activities | |||||||||||
Net debt | £ | £ 203,595 | £ 253,746 | £ 213,087 | ||||||||
Closing exchange rate | 1.2718 | 1.1170 | 1.3194 | 1.1309 | 1.2988 | 1.1379 | |||||
US dollar | |||||||||||
Financial risk management activities | |||||||||||
Net debt | $ 341,162 | $ 521,500 | |||||||||
Hedged future USD revenues | (211,153) | (307,019) | |||||||||
Unhedged USD borrowings | 130,009 | 214,481 | |||||||||
Borrowings | US dollar | |||||||||||
Financial risk management activities | |||||||||||
Net debt | 650,000 | 650,000 | |||||||||
Cash and cash equivalents | |||||||||||
Financial risk management activities | |||||||||||
Net debt | £ | £ (307,637) | £ (242,022) | £ (290,267) | ||||||||
Cash and cash equivalents | US dollar | |||||||||||
Financial risk management activities | |||||||||||
Net debt | $ (308,838) | $ (128,500) |
Financial risk management - Swa
Financial risk management - Swaps (Details) - Interest rate swap $ in Thousands | 12 Months Ended | |
Jun. 30, 2019GBP (£)USD ($) | Jun. 30, 2018GBP (£)USD ($) | |
Financial risk management activities | ||
Fair value of interest rate swaps, asset | £ 4,490,000 | |
Fair value of interest rate swaps, liability | £ 2,298,000 | |
Long position | ||
Financial risk management activities | ||
Current hedged principal value of loan outstanding | $ | 150,000 | 150,000 |
Rate received | 1 month $ LIBOR | 1 month $ LIBOR |
Rate paid | 2.032% | 2.032% |
Financial risk management - M_2
Financial risk management - Movements on the hedging reserve (Details) - GBP (£) | 12 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Movements on the hedging reserve | ||||||
Reserve of cash flow hedges, beginning balance | £ (27,558,000) | [1] | £ (31,271,000) | [1] | £ (32,877,000) | |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges | ||||||
Exchange differences on hedged foreign exchange risks | (6,182,000) | 6,338,000 | (11,874,000) | |||
Reclassified to profit or loss | 6,250,000 | 13,914,000 | 5,290,000 | |||
Change in fair value | (6,788,000) | 5,145,000 | 9,055,000 | |||
Tax relating to above | (1,266,000) | (21,684,000) | [1] | (865,000) | [1] | |
Movement recognized in other comprehensive income | (7,986,000) | 3,713,000 | 1,606,000 | |||
Reserve of cash flow hedges, ending balance | (35,544,000) | (27,558,000) | [1] | (31,271,000) | [1] | |
Movements on hedging reserve before tax | ||||||
Reserve of cash flow hedges, before tax, beginning balance | (22,713,000) | (48,110,000) | (50,581,000) | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, before tax | ||||||
Exchange differences on hedged foreign exchange risks | (6,182,000) | 6,338,000 | (11,874,000) | |||
Reclassified to profit or loss | 6,250,000 | 13,914,000 | 5,290,000 | |||
Change in fair value | (6,788,000) | 5,145,000 | 9,055,000 | |||
Movement recognized in other comprehensive income (loss) | (6,720,000) | 25,397,000 | [1] | 2,471,000 | [1] | |
Reserve of cash flow hedges, before tax, ending balance | (29,433,000) | (22,713,000) | (48,110,000) | |||
Movements on hedging reserve tax | ||||||
Reserve of cash flow hedges, tax, beginning balance | (4,845,000) | 16,839,000 | 17,704,000 | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, tax | ||||||
Tax expense relating to movements on hedges | (1,266,000) | (21,684,000) | [1] | (865,000) | [1] | |
Reserve of cash flow hedges, tax, ending balance | (6,111,000) | (4,845,000) | 16,839,000 | |||
As previously reported | ||||||
Movements on the hedging reserve | ||||||
Reserve of cash flow hedges, beginning balance | (27,738,000) | (31,724,000) | (32,989,000) | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges | ||||||
Tax relating to above | (21,892,000) | (681,000) | ||||
Reserve of cash flow hedges, ending balance | (27,738,000) | (31,724,000) | ||||
Movements on hedging reserve before tax | ||||||
Reserve of cash flow hedges, before tax, beginning balance | (50,753,000) | |||||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, before tax | ||||||
Movement recognized in other comprehensive income (loss) | 25,878,000 | 1,946,000 | ||||
Movements on hedging reserve tax | ||||||
Reserve of cash flow hedges, tax, beginning balance | 17,764,000 | |||||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, tax | ||||||
Tax expense relating to movements on hedges | (21,892,000) | (681,000) | ||||
Adjustment | ||||||
Movements on the hedging reserve | ||||||
Reserve of cash flow hedges, beginning balance | 180,000 | 453,000 | 112,000 | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges | ||||||
Tax relating to above | 208,000 | (184,000) | ||||
Reserve of cash flow hedges, ending balance | 180,000 | 453,000 | ||||
Movements on hedging reserve before tax | ||||||
Reserve of cash flow hedges, before tax, beginning balance | 172,000 | |||||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, before tax | ||||||
Movement recognized in other comprehensive income (loss) | (481,000) | 525,000 | ||||
Movements on hedging reserve tax | ||||||
Reserve of cash flow hedges, tax, beginning balance | (60,000) | |||||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, tax | ||||||
Tax expense relating to movements on hedges | 208,000 | (184,000) | ||||
Currency risk | ||||||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges | ||||||
Exchange differences on hedged foreign exchange risks | (6,350,000) | 6,522,000 | (11,998,000) | |||
Reclassified to profit or loss | 6,004,000 | 13,791,000 | 5,565,000 | |||
Movements on hedging reserve before tax | ||||||
Reserve of cash flow hedges, before tax, beginning balance | (26,991,000) | (47,304,000) | (40,871,000) | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, before tax | ||||||
Exchange differences on hedged foreign exchange risks | (6,350,000) | 6,522,000 | (11,998,000) | |||
Reclassified to profit or loss | 6,004,000 | 13,791,000 | 5,565,000 | |||
Movement recognized in other comprehensive income (loss) | (346,000) | 20,313,000 | (6,433,000) | |||
Reserve of cash flow hedges, before tax, ending balance | £ (27,337,000) | £ (26,991,000) | (47,304,000) | |||
Currency risk | As previously reported | ||||||
Movements on hedging reserve before tax | ||||||
Reserve of cash flow hedges, before tax, beginning balance | (41,043,000) | |||||
Currency risk | Adjustment | ||||||
Movements on hedging reserve before tax | ||||||
Reserve of cash flow hedges, before tax, beginning balance | 172,000 | |||||
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% | 10.00% | ||||
Increase (decrease) in reserve of cash flow hedges before tax due to reasonably possible strengthening of GBP against currency | £ 15,093,000 | £ 21,154,000 | ||||
Increase (decrease) in reserve of cash flow hedges before tax due to reasonably possible weakening of GBP against currency | (18,447,000) | (25,855,000) | ||||
Interest rate risk | ||||||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges | ||||||
Change in fair value | (6,788,000) | 5,145,000 | 9,055,000 | |||
Movements on hedging reserve before tax | ||||||
Reserve of cash flow hedges, before tax, beginning balance | 4,490,000 | (655,000) | (9,710,000) | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, before tax | ||||||
Change in fair value | (6,788,000) | 5,145,000 | 9,055,000 | |||
Movement recognized in other comprehensive income (loss) | (6,788,000) | 5,145,000 | 9,055,000 | |||
Reserve of cash flow hedges, before tax, ending balance | £ (2,298,000) | £ 4,490,000 | (655,000) | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, tax | ||||||
Percentage of reasonably possible change in risk assumption | 1.00% | 1.00% | ||||
Interest rate risk | As previously reported | ||||||
Movements on hedging reserve before tax | ||||||
Reserve of cash flow hedges, before tax, beginning balance | (9,710,000) | |||||
Other price risk | ||||||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges | ||||||
Exchange differences on hedged foreign exchange risks | £ 168,000 | £ (184,000) | 124,000 | |||
Reclassified to profit or loss | 246,000 | 123,000 | (275,000) | |||
Movements on hedging reserve before tax | ||||||
Reserve of cash flow hedges, before tax, beginning balance | (212,000) | (151,000) | ||||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, before tax | ||||||
Exchange differences on hedged foreign exchange risks | 168,000 | (184,000) | 124,000 | |||
Reclassified to profit or loss | 246,000 | 123,000 | (275,000) | |||
Movement recognized in other comprehensive income (loss) | 414,000 | (61,000) | (151,000) | |||
Reserve of cash flow hedges, before tax, ending balance | £ 202,000 | £ (212,000) | (151,000) | |||
Other price risk | As previously reported | ||||||
Movements on hedging reserve before tax | ||||||
Reserve of cash flow hedges, before tax, beginning balance | £ 0 | |||||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Financial risk management - Cap
Financial risk management - Capital risk management (Details) - GBP (£) £ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Financial risk management | ||
Borrowings | £ 511,232 | £ 495,768 |
Contingent liabilities and co_3
Contingent liabilities and contingent assets (Details) - GBP (£) | Jun. 30, 2019 | Jun. 30, 2018 |
Transfer fees | ||
Additional fees payable, first team squad | £ 65,200,000 | £ 58,170,000 |
Additional fees payable, other | 9,121,000 | 8,241,000 |
Additional fees payable | 74,321,000 | 66,411,000 |
Probable effect of contingent assets | 707,000 | 2,392,000 |
MUFC appearances/team success/new contract | ||
Transfer fees | ||
Additional fees payable, first team squad | 35,722,000 | 29,142,000 |
Additional fees payable, other | 8,805,000 | 7,789,000 |
Additional fees payable | 44,527,000 | 36,931,000 |
International appearances | ||
Transfer fees | ||
Additional fees payable, first team squad | 11,573,000 | 11,343,000 |
Additional fees payable, other | 22,000 | 47,000 |
Additional fees payable | 11,595,000 | 11,390,000 |
Other | ||
Transfer fees | ||
Additional fees payable, first team squad | 17,905,000 | 17,685,000 |
Additional fees payable, other | 294,000 | 405,000 |
Additional fees payable | £ 18,199,000 | £ 18,090,000 |
Commitments (Details)
Commitments (Details) - GBP (£) | Jun. 30, 2019 | Jun. 30, 2018 |
Property, plant and equipment | ||
Capital commitments | ||
Capital commitments | £ 3,794,000 | £ 4,054,000 |
Other intangible assets | ||
Capital commitments | ||
Capital commitments | £ 0 | £ 0 |
Commitments - Aggregate minimum
Commitments - Aggregate minimum lease payments (Details) - GBP (£) £ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Operating lease arrangements by lessee | ||
Minimum lease payments payable under non-cancellable operating lease | £ 8,087 | £ 8,361 |
Less than 1 year | ||
Operating lease arrangements by lessee | ||
Minimum lease payments payable under non-cancellable operating lease | 1,956 | 1,756 |
Later than 1 year and no later than 5 years | ||
Operating lease arrangements by lessee | ||
Minimum lease payments payable under non-cancellable operating lease | 2,346 | 2,739 |
Over 5 years | ||
Operating lease arrangements by lessee | ||
Minimum lease payments payable under non-cancellable operating lease | £ 3,785 | £ 3,866 |
Commitments - Aggregate minim_2
Commitments - Aggregate minimum rentals receivable (Details) - GBP (£) £ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Operating lease arrangements by lessor | ||
Future minimum lease rentals receivable under non-cancellable operating lease | £ 21,871 | £ 13,694 |
Less than 1 year | ||
Operating lease arrangements by lessor | ||
Future minimum lease rentals receivable under non-cancellable operating lease | 2,100 | 1,278 |
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 | 5,777 | 2,866 |
Over 5 years | ||
Operating lease arrangements by lessor | ||
Future minimum lease rentals receivable under non-cancellable operating lease | £ 13,994 | £ 9,550 |
Events occuring after the repor
Events occuring after the reporting period (Details) | 3 Months Ended | 12 Months Ended | |||||
Sep. 24, 2019GBP (£) | Jun. 30, 2019GBP (£) | Jun. 30, 2018GBP (£) | Jun. 30, 2017GBP (£) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | ||
Events after the reporting date | |||||||
Proceeds from disposal of intangible assets, net of associated costs | [1] | £ 42,994,000 | £ 46,865,000 | £ 51,871,000 | |||
Net book value of disposals of intangible assets | 8,540,000 | 27,201,000 | |||||
Additions or extensions of intangible assets | 106,911,000 | 247,677,000 | |||||
Secured term loan facility | |||||||
Events after the reporting date | |||||||
Principal amount / Notional amount | $ | $ 225,000,000 | $ 225,000,000 | |||||
Registrations | |||||||
Events after the reporting date | |||||||
Net book value of disposals of intangible assets | 8,540,000 | 27,201,000 | |||||
Additions or extensions of intangible assets | £ 103,326,000 | £ 243,182,000 | |||||
Disposal of playing registrations | Registrations | |||||||
Events after the reporting date | |||||||
Proceeds from disposal of intangible assets, net of associated costs | £ 66,926,000 | ||||||
Net book value of disposals of intangible assets | 51,901,000 | ||||||
Solidarity contributions, sell-on fees and contingent consideration receivable | 1,421,000 | ||||||
Acquisition or extension of playing registrations | Registrations | |||||||
Events after the reporting date | |||||||
Additions or extensions of intangible assets | £ 99,388,000 | ||||||
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 reporting date are provided in note 22. Trade receivables in relation to the disposal of registrations at the reporting date are provided in note 18. |
Related party transactions (Det
Related party transactions (Details) - Trusts and other entities controlled by descendants of Malcolm Glazer | Jun. 30, 2019item |
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) | 7.44% |
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, 2019 |
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 | |
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% |
Restatement of prior periods _3
Restatement of prior periods following implementation of IFRS 15 - Consolidated statement of profit or loss (Details) - GBP (£) £ / shares in Units, £ in Thousands | 12 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Income statement | ||||||
Revenue from contracts with customers | £ 627,122 | £ 589,758 | [1] | £ 581,254 | [1] | |
Operating expenses | (602,936) | (564,006) | (511,315) | |||
Profit on disposal of intangible assets | 25,799 | 18,119 | 10,926 | |||
Operating profit | 49,985 | 43,871 | [1] | 80,865 | [1] | |
Finance costs | (25,470) | (24,233) | (25,013) | |||
Finance income | 2,961 | 6,195 | 736 | |||
Net finance costs | (22,509) | (18,038) | (24,277) | |||
Profit before income tax | 27,476 | 25,833 | [1] | 56,588 | [1] | |
Income tax expense | (8,595) | (63,462) | [1] | (17,379) | [1] | |
Profit/(loss) for the year | £ 18,881 | £ (37,629) | [1] | £ 39,209 | [1] | |
Earnings per share during the period: | ||||||
Basic earnings per share | £ 0.1148 | £ (0.2292) | [1] | £ 0.2390 | [1] | |
Diluted earnings per share | [2] | £ 0.1147 | £ (0.2292) | [1] | £ 0.2384 | [1] |
As previously reported | ||||||
Income statement | ||||||
Revenue from contracts with customers | £ 590,022 | £ 581,204 | ||||
Operating expenses | (564,006) | (511,315) | ||||
Profit on disposal of intangible assets | 18,119 | 10,926 | ||||
Operating profit | 44,135 | 80,815 | ||||
Finance costs | (24,233) | (25,013) | ||||
Finance income | 6,195 | 736 | ||||
Net finance costs | (18,038) | (24,277) | ||||
Profit before income tax | 26,097 | 56,538 | ||||
Income tax expense | (63,367) | (17,361) | ||||
Profit/(loss) for the year | £ (37,270) | £ 39,177 | ||||
Earnings per share during the period: | ||||||
Basic earnings per share | £ (0.2270) | £ 0.2388 | ||||
Diluted earnings per share | £ (0.2270) | £ 0.2382 | ||||
Adjustment | ||||||
Income statement | ||||||
Revenue from contracts with customers | £ (264) | £ 50 | ||||
Operating profit | (264) | 50 | ||||
Profit before income tax | (264) | 50 | ||||
Income tax expense | (95) | (18) | ||||
Profit/(loss) for the year | £ (359) | £ 32 | ||||
Earnings per share during the period: | ||||||
Basic earnings per share | £ (0.0022) | £ 0.0002 | ||||
Diluted earnings per share | £ (0.0022) | £ 0.0002 | ||||
Commercial | ||||||
Income statement | ||||||
Revenue from contracts with customers | £ 275,093 | £ 275,835 | £ 275,521 | |||
Commercial | As previously reported | ||||||
Income statement | ||||||
Revenue from contracts with customers | 276,099 | 275,471 | ||||
Commercial | Adjustment | ||||||
Income statement | ||||||
Revenue from contracts with customers | (264) | 50 | ||||
Broadcasting | ||||||
Income statement | ||||||
Revenue from contracts with customers | 241,210 | 204,137 | 194,098 | |||
Broadcasting | As previously reported | ||||||
Income statement | ||||||
Revenue from contracts with customers | 204,137 | 194,098 | ||||
Matchday | ||||||
Income statement | ||||||
Revenue from contracts with customers | £ 110,819 | 109,786 | 111,635 | |||
Matchday | As previously reported | ||||||
Income statement | ||||||
Revenue from contracts with customers | £ 109,786 | £ 111,635 | ||||
[1] | Comparative amounts have been restated—see note 33 for further details. | |||||
[2] | 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 2019 and 2017, potential ordinary shares have been treated as dilutive, as their inclusion in the diluted earnings per share calculation decreases earnings per share. |
Restatement of prior periods _4
Restatement of prior periods following implementation of IFRS 15 - Consolidated statement of comprehensive income (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Statement of comprehensive income | |||||
Profit/(loss) for the year | £ 18,881 | £ (37,629) | [1] | £ 39,209 | [1] |
Items that may be reclassified to profit or loss | |||||
Movements on hedges | (6,720) | 25,397 | [1] | 2,471 | [1] |
Tax expense relating to movements on hedges | (1,266) | (21,684) | [1] | (865) | [1] |
Other comprehensive (loss)/income for the year, net of tax | (7,986) | 3,713 | [1] | 1,606 | [1] |
Total comprehensive income/(loss) for the year | £ 10,895 | (33,916) | [1] | 40,815 | [1] |
As previously reported | |||||
Statement of comprehensive income | |||||
Profit/(loss) for the year | (37,270) | 39,177 | |||
Items that may be reclassified to profit or loss | |||||
Movements on hedges | 25,878 | 1,946 | |||
Tax expense relating to movements on hedges | (21,892) | (681) | |||
Other comprehensive (loss)/income for the year, net of tax | 3,986 | 1,265 | |||
Total comprehensive income/(loss) for the year | (33,284) | 40,442 | |||
Adjustment | |||||
Statement of comprehensive income | |||||
Profit/(loss) for the year | (359) | 32 | |||
Items that may be reclassified to profit or loss | |||||
Movements on hedges | (481) | 525 | |||
Tax expense relating to movements on hedges | 208 | (184) | |||
Other comprehensive (loss)/income for the year, net of tax | (273) | 341 | |||
Total comprehensive income/(loss) for the year | £ (632) | £ 373 | |||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Restatement of prior periods _5
Restatement of prior periods following implementation of IFRS 15 - Consolidated balance sheet (Details) - GBP (£) | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Non-current assets | |||||||
Property, plant and equipment | £ 246,032,000 | £ 245,401,000 | £ 244,738,000 | ||||
Investment properties | 24,979,000 | 13,836,000 | 13,966,000 | ||||
Intangible assets | 768,857,000 | 799,640,000 | 717,544,000 | ||||
Deferred tax assets | 58,415,000 | 63,332,000 | [1] | 141,485,000 | [1] | ||
Trade receivables | 9,889,000 | 4,724,000 | 15,399,000 | ||||
Tax receivable | 547,000 | ||||||
Derivative financial instruments | 30,000 | 4,807,000 | 1,666,000 | ||||
Total non-current assets | 1,108,202,000 | 1,132,287,000 | [1] | 1,134,798,000 | [1] | ||
Current assets | |||||||
Inventories | 2,130,000 | 1,416,000 | 1,637,000 | ||||
Prepayments | 13,030,000 | 10,862,000 | 13,500,000 | ||||
Contract assets - accrued revenue | 39,532,000 | 38,018,000 | 28,755,000 | ||||
Trade receivables | 23,851,000 | 119,073,000 | 61,207,000 | ||||
Other current receivables | 1,188,000 | 107,000 | 270,000 | ||||
Tax receivable | 643,000 | 800,000 | |||||
Derivative financial instruments | 312,000 | 1,159,000 | 3,218,000 | ||||
Cash and cash equivalents | 307,637,000 | 242,022,000 | 290,267,000 | £ 229,194,000 | |||
Total current assets | 388,323,000 | 413,457,000 | 398,854,000 | ||||
Total assets | 1,496,525,000 | 1,545,744,000 | [1] | 1,533,652,000 | [1] | ||
Equity | |||||||
Share capital | 53,000 | 53,000 | 53,000 | ||||
Share premium | 68,822,000 | 68,822,000 | 68,822,000 | ||||
Merger reserve | 249,030,000 | 249,030,000 | 249,030,000 | ||||
Hedging reserve | (35,544,000) | (27,558,000) | [1] | (31,271,000) | [1] | (32,877,000) | |
Retained earnings | 132,841,000 | 136,757,000 | [1] | 193,453,000 | [1] | ||
Total equity | 415,202,000 | 427,104,000 | [1] | 480,087,000 | [1] | 460,379,000 | |
Non-current liabilities | |||||||
Deferred tax labilities | 31,865,000 | 29,134,000 | [1] | 21,536,000 | [1] | ||
Contract liabilities - deferred revenue | 33,354,000 | 37,085,000 | 39,648,000 | ||||
Trade and other payables | 79,183,000 | 104,271,000 | 83,587,000 | ||||
Borrowings | 505,779,000 | 486,694,000 | 497,630,000 | ||||
Derivative financial instruments | 2,298,000 | 655,000 | |||||
Total non-current liabilities | 652,479,000 | 657,184,000 | [1] | 643,056,000 | [1] | ||
Current liabilities | |||||||
Contract liabilities - deferred revenue | 190,146,000 | 180,512,000 | [1] | 203,445,000 | [1] | ||
Trade and other payables | 230,386,000 | 267,996,000 | 190,315,000 | ||||
Tax liabilities | 2,859,000 | 3,874,000 | 9,772,000 | ||||
Borrowings | 5,453,000 | 9,074,000 | 5,724,000 | ||||
Derivative financial instruments | 1,253,000 | ||||||
Total current liabilities | 428,844,000 | 461,456,000 | [1] | 410,509,000 | [1] | ||
Total equity and liabilities | £ 1,496,525,000 | 1,545,744,000 | [1] | 1,533,652,000 | [1] | ||
As previously reported | |||||||
Non-current assets | |||||||
Property, plant and equipment | 245,401,000 | 244,738,000 | |||||
Investment properties | 13,836,000 | 13,966,000 | |||||
Intangible assets | 799,640,000 | 717,544,000 | |||||
Deferred tax assets | 63,974,000 | 142,107,000 | |||||
Trade receivables | 4,724,000 | 15,399,000 | |||||
Tax receivable | 547,000 | ||||||
Derivative financial instruments | 4,807,000 | 1,666,000 | |||||
Total non-current assets | 1,132,929,000 | 1,135,420,000 | |||||
Current assets | |||||||
Inventories | 1,416,000 | 1,637,000 | |||||
Prepayments | 10,862,000 | 13,500,000 | |||||
Contract assets - accrued revenue | 38,018,000 | 28,755,000 | |||||
Trade receivables | 119,073,000 | 61,207,000 | |||||
Other current receivables | 107,000 | 270,000 | |||||
Tax receivable | 800,000 | ||||||
Derivative financial instruments | 1,159,000 | 3,218,000 | |||||
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) | (32,989,000) | ||||
Retained earnings | 135,099,000 | 191,436,000 | |||||
Total equity | 425,266,000 | 477,617,000 | 458,282,000 | ||||
Non-current liabilities | |||||||
Deferred tax labilities | 28,559,000 | 20,828,000 | |||||
Contract liabilities - deferred revenue | 37,085,000 | 39,648,000 | |||||
Trade and other payables | 104,271,000 | 83,587,000 | |||||
Borrowings | 486,694,000 | 497,630,000 | |||||
Derivative financial instruments | 655,000 | ||||||
Total non-current liabilities | 656,609,000 | 642,348,000 | |||||
Current liabilities | |||||||
Contract liabilities - deferred revenue | 183,567,000 | 207,245,000 | |||||
Trade and other payables | 267,996,000 | 190,315,000 | |||||
Tax liabilities | 3,874,000 | 9,772,000 | |||||
Borrowings | 9,074,000 | 5,724,000 | |||||
Derivative financial instruments | 1,253,000 | ||||||
Total current liabilities | 464,511,000 | 414,309,000 | |||||
Total equity and liabilities | 1,546,386,000 | 1,534,274,000 | |||||
Adjustment | |||||||
Non-current assets | |||||||
Deferred tax assets | (642,000) | (622,000) | |||||
Total non-current assets | (642,000) | (622,000) | |||||
Current assets | |||||||
Total assets | (642,000) | (622,000) | |||||
Equity | |||||||
Hedging reserve | 180,000 | 453,000 | 112,000 | ||||
Retained earnings | 1,658,000 | 2,017,000 | |||||
Total equity | 1,838,000 | 2,470,000 | £ 2,097,000 | [1] | |||
Non-current liabilities | |||||||
Deferred tax labilities | 575,000 | 708,000 | |||||
Total non-current liabilities | 575,000 | 708,000 | |||||
Current liabilities | |||||||
Contract liabilities - deferred revenue | (3,055,000) | (3,800,000) | |||||
Total current liabilities | (3,055,000) | (3,800,000) | |||||
Total equity and liabilities | £ (642,000) | £ (622,000) | |||||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Restatement of prior periods _6
Restatement of prior periods following implementation of IFRS 15 - Consolidated statement of cash flows (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Statement of cash flows | |||||
Profit before tax | £ 27,476 | £ 25,833 | [1] | £ 56,588 | [1] |
Depreciation | 11,726 | 10,755 | 10,228 | ||
Impairment reversal | 1,124 | (4,753) | |||
Amortization | 129,154 | 138,380 | 124,434 | ||
Profit on disposal of intangible assets | (25,799) | (18,119) | (10,926) | ||
Net finance costs | 22,509 | 18,038 | 24,277 | ||
(Profit)/loss on disposal of property, plant and equipment | (81) | 43 | |||
Equity-settled share-based payments | 699 | 2,915 | 2,187 | ||
Foreign exchange (gains)/losses on operating activities | (76) | 994 | 2,646 | ||
Reclassified from hedging reserve | 6,250 | 13,914 | 5,290 | ||
Changes in working capital: | |||||
Inventories | (714) | 221 | (711) | ||
Prepayments | (2,168) | 2,638 | 895 | ||
Contract assets - accrued revenue | (1,514) | (9,263) | 12,198 | ||
Trade receivables | 82,086 | (64,492) | 5,089 | ||
Other receivables | (1,081) | 163 | (657) | ||
Contract liabilities - deferred revenue | 5,903 | (25,496) | 18,576 | ||
Trade and other payables | 8,034 | 23,204 | 6,355 | ||
Cash generated from operations | £ 263,609 | 119,604 | 251,759 | ||
As previously reported | |||||
Statement of cash flows | |||||
Profit before tax | 26,097 | 56,538 | |||
Depreciation | 10,755 | 10,228 | |||
Impairment reversal | (4,753) | ||||
Amortization | 138,380 | 124,434 | |||
Profit on disposal of intangible assets | (18,119) | (10,926) | |||
Net finance costs | 18,038 | 24,277 | |||
(Profit)/loss on disposal of property, plant and equipment | (81) | 43 | |||
Equity-settled share-based payments | 2,915 | 2,187 | |||
Foreign exchange (gains)/losses on operating activities | 994 | 2,646 | |||
Reclassified from hedging reserve | 14,395 | 4,765 | |||
Changes in working capital: | |||||
Inventories | 221 | (711) | |||
Prepayments | 2,638 | 895 | |||
Contract assets - accrued revenue | (9,263) | 12,198 | |||
Trade receivables | (64,492) | 5,089 | |||
Other receivables | 163 | (657) | |||
Contract liabilities - deferred revenue | (26,241) | 19,151 | |||
Trade and other payables | 23,204 | 6,355 | |||
Cash generated from operations | 119,604 | 251,759 | |||
Adjustment | |||||
Statement of cash flows | |||||
Profit before tax | (264) | 50 | |||
Reclassified from hedging reserve | (481) | 525 | |||
Changes in working capital: | |||||
Contract liabilities - deferred revenue | £ 745 | £ (575) | |||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Additional information-Financ_3
Additional information-Financial Statement Schedule I (Details) £ / shares in Units, £ in Thousands | 12 Months Ended | |||||
Jun. 30, 2019GBP (£)$ / shares | Jun. 30, 2019GBP (£)£ / shares | Jun. 30, 2018GBP (£)$ / shares | Jun. 30, 2018GBP (£)£ / shares | Jun. 30, 2017$ / shares | Jun. 30, 2017£ / shares | |
Condensed financial information | ||||||
Borrowings | £ 511,232 | £ 511,232 | £ 495,768 | £ 495,768 | ||
Dividends recognised as distributions to owners per share | (per share) | £ 0.18 | £ 0.14 | £ 0.18 | £ 0.13 | $ 0.18 | £ 0.14 |
Red Football Limited | ||||||
Condensed financial information | ||||||
Dividend limit in relation to consolidated net income under restricted payment covenants | 50.00% | 50.00% | ||||
Parent | ||||||
Condensed financial information | ||||||
Dividends recognised as distributions to owners per share | (per share) | £ 0.18 | £ 0.14 | £ 0.18 | £ 0.13 | $ 0.18 | £ 0.14 |
Additional information-Financ_4
Additional information-Financial Statement Schedule I - Condensed statement of profit or loss (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Condensed statement of profit or loss | |||||
Profit before income tax | £ 27,476 | £ 25,833 | [1] | £ 56,588 | [1] |
Income Tax expense | (8,595) | (63,462) | [1] | (17,379) | [1] |
Profit/(loss) for the year | 18,881 | (37,629) | [1] | 39,209 | [1] |
Parent | |||||
Condensed statement of profit or loss | |||||
Operating expenses | (3,455) | (3,423) | (2,013) | ||
Income from shares in group undertakings | 23,326 | 21,982 | 23,295 | ||
Profit before income tax | 19,871 | 18,559 | 21,282 | ||
Profit/(loss) for the year | £ 19,871 | £ 18,559 | £ 21,282 | ||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Additional information-Financ_5
Additional information-Financial Statement Schedule I - Condensed balance sheet (Details) - GBP (£) | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Non-current assets | ||||||
Total non-current assets | £ 1,108,202,000 | £ 1,132,287,000 | [1] | £ 1,134,798,000 | [1] | |
Current assets | ||||||
Other receivables | 1,188,000 | 107,000 | 270,000 | |||
Cash and cash equivalents | 307,637,000 | 242,022,000 | 290,267,000 | £ 229,194,000 | ||
Total current assets | 388,323,000 | 413,457,000 | 398,854,000 | |||
Total assets | 1,496,525,000 | 1,545,744,000 | [1] | 1,533,652,000 | [1] | |
Equity | ||||||
Share capital | 53,000 | 53,000 | 53,000 | |||
Share premium | 68,822,000 | 68,822,000 | 68,822,000 | |||
Retained earnings | 132,841,000 | 136,757,000 | [1] | 193,453,000 | [1] | |
Total equity | 415,202,000 | 427,104,000 | [1] | 480,087,000 | [1] | 460,379,000 |
Current liabilities | ||||||
Total current liabilities | 428,844,000 | 461,456,000 | [1] | 410,509,000 | [1] | |
Total equity and liabilities | 1,496,525,000 | 1,545,744,000 | [1] | 1,533,652,000 | [1] | |
Parent | ||||||
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 | 1,108,000 | 1,314,000 | ||||
Cash and cash equivalents | 116,000 | 340,000 | 522,000 | 221,000 | ||
Total current assets | 1,224,000 | 1,654,000 | ||||
Total assets | 320,489,000 | 320,919,000 | ||||
Equity | ||||||
Share capital | 53,000 | 53,000 | ||||
Share premium | 68,822,000 | 68,822,000 | ||||
Retained earnings | 245,050,000 | 247,806,000 | ||||
Total equity | 313,925,000 | 316,681,000 | £ 317,189,000 | £ 317,014,000 | ||
Current liabilities | ||||||
Other payables | 6,564,000 | 4,238,000 | ||||
Total current liabilities | 6,564,000 | 4,238,000 | ||||
Total equity and liabilities | £ 320,489,000 | £ 320,919,000 | ||||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Additional information-Financ_6
Additional information-Financial Statement Schedule I - Condensed statement of changes in equity (Details) | 12 Months Ended | ||||||||
Jun. 30, 2019USD ($) | Jun. 30, 2019GBP (£) | Jun. 30, 2018USD ($) | Jun. 30, 2018GBP (£) | Jun. 30, 2017USD ($) | Jun. 30, 2017GBP (£) | ||||
Equity at beginning of year | £ 427,104,000 | [1] | £ 480,087,000 | [1] | £ 460,379,000 | ||||
Profit/(loss) for the year | 18,881,000 | (37,629,000) | [1] | 39,209,000 | [1] | ||||
Total comprehensive income/(loss) for the year | 10,895,000 | (33,916,000) | [1] | 40,815,000 | [1] | ||||
Equity-settled share based payments | 699,000 | 2,915,000 | 2,187,000 | ||||||
Dividends paid | $ (29,615,000) | (23,326,000) | $ (29,555,000) | (21,982,000) | $ (29,525,000) | (23,295,000) | |||
Proceeds from shares issued | 1,000 | ||||||||
Equity at end of year | 415,202,000 | 427,104,000 | [1] | 480,087,000 | [1] | ||||
Share capital | |||||||||
Equity at beginning of year | 53,000 | 53,000 | 52,000 | ||||||
Proceeds from shares issued | 1,000 | ||||||||
Equity at end of year | 53,000 | 53,000 | 53,000 | ||||||
Share premium | |||||||||
Equity at beginning of year | 68,822,000 | 68,822,000 | 68,822,000 | ||||||
Equity at end of year | 68,822,000 | 68,822,000 | 68,822,000 | ||||||
Retained earnings | |||||||||
Equity at beginning of year | 136,757,000 | 193,453,000 | 175,352,000 | ||||||
Profit/(loss) for the year | 18,881,000 | (37,629,000) | [1] | 39,209,000 | [1] | ||||
Total comprehensive income/(loss) for the year | 18,881,000 | (37,629,000) | 39,209,000 | ||||||
Equity-settled share based payments | 699,000 | 2,915,000 | 2,187,000 | ||||||
Dividends paid | (23,326,000) | (21,982,000) | (23,295,000) | ||||||
Equity at end of year | 132,841,000 | 136,757,000 | 193,453,000 | ||||||
Parent | |||||||||
Equity at beginning of year | 316,681,000 | 317,189,000 | 317,014,000 | ||||||
Profit/(loss) for the year | 19,871,000 | 18,559,000 | 21,282,000 | ||||||
Total comprehensive income/(loss) for the year | 19,871,000 | 18,559,000 | 21,282,000 | ||||||
Equity-settled share based payments | 699,000 | 2,915,000 | 2,187,000 | ||||||
Dividends paid | (23,326,000) | (21,982,000) | (23,295,000) | ||||||
Proceeds from shares issued | 1,000 | ||||||||
Equity at end of year | 313,925,000 | 316,681,000 | 317,189,000 | ||||||
Parent | Share capital | |||||||||
Equity at beginning of year | 53,000 | 53,000 | 52,000 | ||||||
Proceeds from shares issued | 1,000 | ||||||||
Equity at end of year | 53,000 | 53,000 | 53,000 | ||||||
Parent | Share premium | |||||||||
Equity at beginning of year | 68,822,000 | 68,822,000 | 68,822,000 | ||||||
Equity at end of year | 68,822,000 | 68,822,000 | 68,822,000 | ||||||
Parent | Retained earnings | |||||||||
Equity at beginning of year | 247,806,000 | 248,314,000 | 248,140,000 | ||||||
Profit/(loss) for the year | 19,871,000 | 18,559,000 | 21,282,000 | ||||||
Total comprehensive income/(loss) for the year | 19,871,000 | 18,559,000 | 21,282,000 | ||||||
Equity-settled share based payments | 699,000 | 2,915,000 | 2,187,000 | ||||||
Dividends paid | (23,326,000) | (21,982,000) | (23,295,000) | ||||||
Equity at end of year | £ 245,050,000 | £ 247,806,000 | £ 248,314,000 | ||||||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Additional information-Financ_7
Additional information-Financial Statement Schedule I - Condensed statement of cash flows (Details) - GBP (£) | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Cash flows from operating activities | |||||
Profit before tax | £ 27,476,000 | £ 25,833,000 | [1] | £ 56,588,000 | [1] |
Adjustments for: | |||||
Non-cash employee benefit expense - equity-settled share-based payments | 699,000 | 2,915,000 | 2,187,000 | ||
Foreign exchange (gains)/losses on operating activities | (76,000) | 994,000 | 2,646,000 | ||
Changes in working capital: | |||||
Other receivables | (1,081,000) | 163,000 | (657,000) | ||
Net cash inflow from operating activities | 244,784,000 | 95,250,000 | 227,660,000 | ||
Cash flows from financing activities | |||||
Dividends paid | (23,326,000) | (21,982,000) | (23,295,000) | ||
Net cash outflow from financing activities | (27,076,000) | (22,401,000) | (23,690,000) | ||
Net increase/(decrease) in cash and cash equivalents | 56,366,000 | (48,420,000) | 53,002,000 | ||
Cash and cash equivalents at beginning of period | 242,022,000 | 290,267,000 | 229,194,000 | ||
Effect of exchange rate changes on cash and cash equivalents | 9,249,000 | 175,000 | 8,071,000 | ||
Cash and cash equivalents at end of period | 307,637,000 | 242,022,000 | 290,267,000 | ||
Parent | |||||
Cash flows from operating activities | |||||
Profit before tax | 19,871,000 | 18,559,000 | 21,282,000 | ||
Adjustments for: | |||||
Non-cash employee benefit expense - equity-settled share-based payments | 699,000 | 2,915,000 | 2,187,000 | ||
Foreign exchange (gains)/losses on operating activities | (37,000) | 114,000 | 42,000 | ||
Changes in working capital: | |||||
Other receivables | 206,000 | (191,000) | (998,000) | ||
Other payables | 2,326,000 | 517,000 | 1,125,000 | ||
Net cash inflow from operating activities | 23,065,000 | 21,914,000 | 23,638,000 | ||
Cash flows from financing activities | |||||
Dividends paid | (23,326,000) | (21,982,000) | (23,295,000) | ||
Net cash outflow from financing activities | (23,326,000) | (21,982,000) | (23,295,000) | ||
Net increase/(decrease) in cash and cash equivalents | (261,000) | (68,000) | 343,000 | ||
Cash and cash equivalents at beginning of period | 340,000 | 522,000 | 221,000 | ||
Effect of exchange rate changes on cash and cash equivalents | 37,000 | (114,000) | (42,000) | ||
Cash and cash equivalents at end of period | £ 116,000 | £ 340,000 | £ 522,000 | ||
[1] | Comparative amounts have been restated—see note 33 for further details. |
Additional information-Financ_8
Additional information-Financial Statement Schedule I - Reconciliations (Details) - GBP (£) £ in Thousands | 12 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |||
IFRS profit/(loss) reconciliation: | ||||||
Additional (loss)/profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost | £ (990) | £ (56,188) | £ 17,927 | |||
IFRS (loss)/profit for the year | 18,881 | (37,629) | [1] | 39,209 | [1] | |
IFRS equity reconciliation: | ||||||
Additional profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost | 101,277 | 110,423 | 162,898 | |||
IFRS equity | 415,202 | 427,104 | [1] | 480,087 | [1] | £ 460,379 |
Parent | ||||||
IFRS profit/(loss) reconciliation: | ||||||
IFRS (loss)/profit for the year | 19,871 | 18,559 | 21,282 | |||
IFRS equity reconciliation: | ||||||
IFRS equity | £ 313,925 | £ 316,681 | £ 317,189 | £ 317,014 | ||
[1] | Comparative amounts have been restated—see note 33 for further details. |