EXHIBIT 99.1
RED FOOTBALL LIMITED
First Quarter Results
Fiscal Year Ended 30 June 2015
Bond Group Parent: Red Football Limited
Bond Issuer: MU Finance plc
21 November 2014
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
The summary financial information provided overleaf has been derived from the unaudited interim consolidated financial statements of Red Football Limited as at and for the three months ended 30 September 2014 and 2013, which have been prepared in accordance with International Financial Reporting Standards (“IFRSs”), as issued by the International Accounting Standards Board (‘IASB’) and IFRS Interpretations Committee (“IFRS IC”) interpretations.
INTERIM CONSOLIDATED INCOME STATEMENT - UNAUDITED
|
| Three months ended |
| ||
|
| 2014 |
| 2013 |
|
Commercial |
| 56,746 |
| 59,857 |
|
Broadcasting |
| 16,811 |
| 19,330 |
|
Matchday |
| 15,113 |
| 19,334 |
|
Total revenue |
| 88,670 |
| 98,521 |
|
|
|
|
|
|
|
Employee benefit expenses |
| (49,352 | ) | (52,895 | ) |
Other operating expenses |
| (18,987 | ) | (23,388 | ) |
Operating profit before depreciation, amortization, and profit on disposal of players’ registrations (“EBITDA”) |
| 20,331 |
| 22,238 |
|
Depreciation |
| (2,336 | ) | (1,983 | ) |
Amortization |
| (21,177 | ) | (11,904 | ) |
Operating (loss)/profit before profit on disposal of players’ registrations |
| (3,182 | ) | 8,351 |
|
Profit on disposal of players’ registrations |
| 18,328 |
| 996 |
|
Operating profit |
| 15,146 |
| 9,347 |
|
Net interest payable on loans and deferred element of terminated interest rate swap |
| (521 | ) | (616 | ) |
Foreign exchange losses on US dollar denominated bank accounts |
| — |
| (3,014 | ) |
Interest payable on secured term loan facility and senior secured notes |
| (5,085 | ) | (4,916 | ) |
Amortization of issue discount and debt issue/finance costs |
| (522 | ) | (296 | ) |
Costs associated with debt refinancing |
| (1,249 | ) | — |
|
Unwinding of discount relating to player transfer fees and onerous lease provision |
| (519 | ) | (38 | ) |
Fair value movement on derivative financial instruments |
| 1,324 |
| (885 | ) |
Ineffectiveness of cash flow hedges |
| 435 |
| — |
|
Net finance costs |
| (6,137 | ) | (9,765 | ) |
Profit/(loss) before tax |
| 9,009 |
| (418 | ) |
Tax (expense)/ credit |
| (5,131 | ) | 2,416 |
|
Profit for the period |
| 3,878 |
| 1,998 |
|
INTERIM CONSOLIDATED BALANCE SHEET - UNAUDITED
|
|
|
| At 30 September |
| ||
|
| Note |
| 2014 |
| 2013 |
|
ASSETS |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
| 254,338 |
| 256,244 |
|
Investment property |
|
|
| 13,643 |
| 14,051 |
|
Goodwill |
|
|
| 421,453 |
| 421,453 |
|
Players’ registrations and other intangible assets |
|
|
| 292,496 |
| 144,680 |
|
Derivative financial instruments |
|
|
| 1,155 |
| — |
|
Trade and other receivables |
| 1 |
| — |
| 241 |
|
|
|
|
| 983,085 |
| 836,669 |
|
Current assets |
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
| 74 |
| 882 |
|
Trade and other receivables |
| 1 |
| 672,881 |
| 678,011 |
|
Cash and cash equivalents |
|
|
| 90,047 |
| 83,384 |
|
|
|
|
| 763,002 |
| 762,277 |
|
Total assets |
|
|
| 1,746,087 |
| 1,598,946 |
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
Share capital |
|
|
| — |
| — |
|
Capital contribution reserve |
|
|
| 474,203 |
| 474,203 |
|
Hedging reserve |
|
|
| 18,882 |
| 19,395 |
|
Retained earnings |
|
|
| 432,125 |
| 410,573 |
|
|
|
|
| 925,210 |
| 904,171 |
|
Non-current liabilities |
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
| 1,498 |
| 1,649 |
|
Trade and other payables |
| 2 |
| 47,137 |
| 18,014 |
|
Borrowings |
|
|
| 359,445 |
| 353,476 |
|
Deferred revenue |
|
|
| 15,291 |
| 18,023 |
|
Provisions |
|
|
| — |
| 845 |
|
Deferred tax liabilities |
|
|
| 26,022 |
| 14,913 |
|
|
|
|
| 449,393 |
| 406,920 |
|
Current liabilities |
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
| 650 |
| 571 |
|
Current tax liabilities |
|
|
| 1,976 |
| 5,472 |
|
Trade and other payables |
| 2 |
| 180,608 |
| 107,020 |
|
Borrowings |
|
|
| 2,731 |
| 7,571 |
|
Deferred revenue |
|
|
| 185,519 |
| 166,757 |
|
Provisions |
|
|
| — |
| 464 |
|
|
|
|
| 371,484 |
| 287,855 |
|
Total equity and liabilities |
|
|
| 1,746,087 |
| 1,598,946 |
|
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS — UNAUDITED
|
| Three months ended |
| ||
|
| 2014 |
| 2013 |
|
Cash flows from operating activities |
|
|
|
|
|
Profit/(loss) before tax |
| 9,009 |
| (418 | ) |
Depreciation |
| 2,336 |
| 1,983 |
|
Amortization |
| 21,177 |
| 11,904 |
|
Profit on disposal of players’ registrations |
| (18,328 | ) | (996 | ) |
Net finance costs |
| 6,137 |
| 9,765 |
|
Profit on disposal of property, plant and equipment |
| 4 |
| — |
|
Foreign exchange gains on operating activities |
| (627 | ) | — |
|
Other fair value losses/(gains) on derivative financial instruments |
| 634 |
| (160 | ) |
Reclassified from hedging reserve |
| (1,195 | ) | (188 | ) |
Decrease in trade and other receivables |
| 72,109 |
| 536 |
|
(Decrease)/increase in trade and other payables and deferred revenue |
| (8,038 | ) | 10,685 |
|
Decrease in provisions |
| — |
| (160 | ) |
Cash generated from operations |
| 83,218 |
| 32,951 |
|
Interest paid |
| (8,729 | ) | (9,146 | ) |
Debt finance costs paid relating to borrowings |
| (866 | ) | (19 | ) |
Interest received |
| 49 |
| 59 |
|
Income tax paid |
| (763 | ) | (487 | ) |
Net cash generated from operating activities |
| 72,909 |
| 23,358 |
|
Cash flows from investing activities |
|
|
|
|
|
Purchases of property, plant and equipment |
| (1,942 | ) | (4,093 | ) |
Purchases of players’ registrations and other intangible assets |
| (71,302 | ) | (33,450 | ) |
Proceeds from sale of players’ registrations |
| 15,443 |
| 6,655 |
|
Net cash used in investing activities |
| (57,801 | ) | (30,888 | ) |
Cash flows from financing activities |
|
|
|
|
|
Loan to parent undertaking |
| — |
| (181 | ) |
Proceeds from borrowings |
| 4,704 |
| — |
|
Repayment of borrowings |
| (97 | ) | (91 | ) |
Net cash generated from/(used in) financing activities |
| 4,607 |
| (272 | ) |
Net increase/(decrease) in cash and cash equivalents |
| 19,715 |
| (7,802 | ) |
Cash and cash equivalents at beginning of period |
| 66,158 |
| 94,200 |
|
Exchange gains/(losses) on cash and cash equivalents |
| 4,174 |
| (3,014 | ) |
Cash and cash equivalents at end of period |
| 90,047 |
| 83,384 |
|
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
1. Trade and other receivables
|
| At 30 September |
| ||
|
| 2014 |
| 2013 |
|
Net trade receivables |
| 30,334 |
| 11,353 |
|
Receivables owed by group undertakings |
| 601,391 |
| 613,862 |
|
Other receivables |
| 918 |
| 3,178 |
|
Accrued income |
| 29,149 |
| 30,976 |
|
|
| 661,792 |
| 659,369 |
|
Prepayments |
| 11,089 |
| 18,883 |
|
|
| 672,881 |
| 678,252 |
|
Less: non-current portion: |
|
|
|
|
|
Trade receivables |
| — |
| 241 |
|
Non-current trade and other receivables |
| — |
| 241 |
|
Current trade and other receivables |
| 672,881 |
| 678,011 |
|
2. Trade and other payables
|
| At 30 September |
| ||
|
| 2014 |
| 2013 |
|
Trade payables |
| 130,128 |
| 42,339 |
|
Payables owed to group undertakings |
| 40,391 |
| 34,091 |
|
Other payables |
| 9,667 |
| 16,792 |
|
Accrued expenses |
| 31,920 |
| 20,026 |
|
|
| 212,106 |
| 113,248 |
|
Social security and other taxes |
| 15,639 |
| 11,786 |
|
|
| 227,745 |
| 125,034 |
|
Less: non-current portion: |
|
|
|
|
|
Trade payables |
| 43,518 |
| 7,291 |
|
Other payables |
| 3,619 |
| 10,723 |
|
Non-current trade and other payables |
| 47,137 |
| 18,014 |
|
Current trade and other payables |
| 180,608 |
| 107,020 |
|