Exhibit 99.1
RED FOOTBALL LIMITED
Third Quarter and Year to Date Results
Fiscal Year Ended 30 June 2015
Bond Group Parent: Red Football Limited
Bond Issuer: MU Finance plc
15 May 2015
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 and nine months ended 31 March 2015 and 2014, 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.
CONSOLIDATED INCOME STATEMENT - UNAUDITED
|
| Three months ended |
| Nine months ended |
| ||||
|
| 2015 |
| 2014 |
| 2015 |
| 2014 |
|
Commercial revenue |
| 47,842 |
| 42,833 |
| 151,029 |
| 144,986 |
|
Broadcasting revenue |
| 21,713 |
| 35,608 |
| 66,908 |
| 101,861 |
|
Matchday revenue |
| 25,415 |
| 37,054 |
| 71,464 |
| 90,096 |
|
Total revenue |
| 94,970 |
| 115,495 |
| 289,401 |
| 336,943 |
|
|
|
|
|
|
|
|
|
|
|
Employee benefit expenses |
| (50,076 | ) | (53,333 | ) | (148,152 | ) | (157,832 | ) |
Other operating expenses |
| (19,387 | ) | (22,052 | ) | (53,005 | ) | (65,152 | ) |
Operating profit before depreciation, amortization, exceptional items, and profit on disposal of players’ registrations (“adjusted EBITDA”) |
| 25,507 |
| 40,110 |
| 88,244 |
| 113,959 |
|
Depreciation |
| (2,469 | ) | (2,206 | ) | (7,365 | ) | (6,274 | ) |
Amortization |
| (25,708 | ) | (13,841 | ) | (73,931 | ) | (39,163 | ) |
Exceptional items |
| (1,247 | ) | — |
| (1,247 | ) | (293 | ) |
Operating (loss)/profit before profit on disposal of players’ registrations |
| (3,917 | ) | 24,063 |
| 5,701 |
| 68,229 |
|
(Loss)/profit on disposal of players’ registrations |
| (1,556 | ) | 2,361 |
| 18,204 |
| 4,203 |
|
Operating (loss)/profit |
| (5,473 | ) | 26,424 |
| 23,905 |
| 72,432 |
|
Net interest payable on loans, deferred element of terminated interest rate swap and unwinding of discount factors |
| (1,005 | ) | (601 | ) | (4,699 | ) | (1,884 | ) |
Interest payable on secured term loan and senior secured notes |
| (5,630 | ) | (5,008 | ) | (15,964 | ) | (14,580 | ) |
Amortization of issue discount and debt issue/finance costs |
| (561 | ) | (765 | ) | (1,623 | ) | (1,392 | ) |
Foreign exchange losses on US dollar bank accounts |
| — |
| — |
|
|
| (2,696 | ) |
Fair value movement on derivative financial instruments |
| 1,563 |
| (90 | ) | 4,041 |
| (1,640 | ) |
Ineffectiveness on cash flow hedges |
| (234 | ) | 543 |
| — |
| 791 |
|
Net finance costs |
| (5,867 | ) | (5,921 | ) | (18,245 | ) | (21,401 | ) |
(Loss)/profit before tax |
| (11,340 | ) | 20,503 |
| 5,660 |
| 51,031 |
|
Tax expense |
| (11,315 | ) | (13,726 | ) | (21,626 | ) | (24,485 | ) |
(Loss)/profit for the period |
| (22,655 | ) | 6,777 |
| (15,966 | ) | 26,546 |
|
INTERIM CONSOLIDATED BALANCE SHEET - UNAUDITED
|
|
|
| As at 31 March |
| ||
|
| Note |
| 2015 |
| 2014 |
|
ASSETS |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
| 252,494 |
| 255,332 |
|
Investment property |
|
|
| 13,587 |
| 13,700 |
|
Goodwill |
|
|
| 421,453 |
| 421,453 |
|
Players’ registrations and other intangible assets |
|
|
| 237,760 |
| 161,769 |
|
Derivative financial instruments |
|
|
| 1,323 |
| 791 |
|
Trade and other receivables |
| 1 |
| 1,000 |
| 141 |
|
|
|
|
| 927,617 |
| 853,186 |
|
Current assets |
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
| 1,354 |
| 317 |
|
Trade and other receivables |
| 1 |
| 713,656 |
| 690,955 |
|
Cash and cash equivalents |
|
|
| 10,966 |
| 34,131 |
|
|
|
|
| 725,976 |
| 725,403 |
|
Total assets |
|
|
| 1,653,593 |
| 1,578,589 |
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
Share capital |
|
|
| — |
| — |
|
Capital contribution reserve |
|
|
| 474,203 |
| 474,203 |
|
Hedging reserve |
|
|
| (8,288 | ) | 25,656 |
|
Retained earnings |
|
|
| 412,281 |
| 435,121 |
|
|
|
|
| 878,196 |
| 934,980 |
|
Non-current liabilities |
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
| 4,087 |
| 1,919 |
|
Trade and other payables |
| 2 |
| 39,827 |
| 27,941 |
|
Borrowings |
|
|
| 392,480 |
| 339,679 |
|
Deferred revenue |
|
|
| 24,464 |
| 14,440 |
|
Deferred tax liabilities |
|
|
| 26,568 |
| 29,140 |
|
|
|
|
| 487,426 |
| 413,119 |
|
Current liabilities |
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
| 2,340 |
| 1,072 |
|
Current tax liabilities |
|
|
| 1,753 |
| 2,786 |
|
Trade and other payables |
| 2 |
| 171,444 |
| 126,700 |
|
Borrowings |
|
|
| 2,950 |
| 11,991 |
|
Deferred revenue |
|
|
| 109,484 |
| 87,941 |
|
|
|
|
| 287,971 |
| 230,490 |
|
Total equity and liabilities |
|
|
| 1,653,593 |
| 1,578,589 |
|
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS — UNAUDITED
|
| Three months ended |
| Nine months ended |
| ||||
|
| 2015 |
| 2014 |
| 2015 |
| 2014 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
(Loss)/profit before tax |
| (11,340 | ) | 20,503 |
| 5,660 |
| 51,031 |
|
Depreciation |
| 2,469 |
| 2,206 |
| 7,365 |
| 6,274 |
|
Impairment |
| — |
| — |
| — |
| 293 |
|
Amortization |
| 25,708 |
| 13,841 |
| 73,931 |
| 39,163 |
|
Loss/(profit) on disposal of players’ registrations |
| 1,556 |
| (2,361 | ) | (18,204 | ) | (4,203 | ) |
Net finance costs |
| 5,867 |
| 5,921 |
| 18,245 |
| 21,401 |
|
Loss/(profit) on disposal of property, plant and equipment |
| — |
| — |
| 5 |
| (43 | ) |
Foreign exchange losses/(gains) on operating activities |
| 449 |
| 97 |
| (499 | ) | 464 |
|
Other fair value losses/(gains) on derivative financial instruments |
| 3,131 |
| (58 | ) | 4,342 |
| (184 | ) |
Reclassified from hedging reserve |
| (1,383 | ) | (260 | ) | (3,774 | ) | (778 | ) |
(Increase)/decrease in trade and other receivables |
| (26,668 | ) | (7,217 | ) | 24,996 |
| (10,617 | ) |
Decrease in trade and other payables and deferred revenue |
| (2,978 | ) | (36,598 | ) | (66,457 | ) | (69,999 | ) |
Decrease in provisions |
| — |
| — |
| — |
| (1,475 | ) |
Cash (used in)/generated from operations |
| (3,189 | ) | (3,926 | ) | 45,610 |
| 31,327 |
|
Interest paid |
| (10,907 | ) | (8,830 | ) | (24,136 | ) | (22,794 | ) |
Debt finance costs paid relating to borrowings |
| — |
| — |
| (824 | ) | (123 | ) |
Interest received |
| 368 |
| 36 |
| 457 |
| 143 |
|
Tax (paid)/refund |
| (1,271 | ) | 175 |
| (2,158 | ) | (1,071 | ) |
Net cash (used in)/generated from operating activities |
| (14,999 | ) | (12,545 | ) | 18,949 |
| 7,482 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
| (293 | ) | (1,679 | ) | (4,086 | ) | (8,557 | ) |
Proceeds from sale of property, plant and equipment |
| — |
| — |
| — |
| 50 |
|
Purchases of players’ registrations and other intangible assets |
| (14,406 | ) | (24,815 | ) | (101,272 | ) | (62,102 | ) |
Proceeds from sale of players’ registrations |
| 3,447 |
| 1,500 |
| 20,163 |
| 8,556 |
|
Net cash used in investing activities |
| (11,252 | ) | (24,994 | ) | (85,195 | ) | (62,053 | ) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
Proceeds from borrowings |
| — |
| — |
| 4,704 |
| — |
|
Repayment of borrowings |
| (102 | ) | (97 | ) | (301 | ) | (284 | ) |
Loan to parent undertaking |
| — |
| (42 | ) | — |
| (634 | ) |
Net cash (used in)/generated from financing activities |
| (102 | ) | (139 | ) | 4,403 |
| (918 | ) |
Net decrease in cash and cash equivalents |
| (26,353 | ) | (37,678 | ) | (61,843 | ) | (55,489 | ) |
Cash and cash equivalents at beginning of period |
| 36,887 |
| 71,930 |
| 66,158 |
| 94,200 |
|
Foreign exchange gains/(losses) on cash and cash equivalents |
| 432 |
| (121 | ) | 6,651 |
| (4,580 | ) |
Cash and cash equivalents at end of period |
| 10,966 |
| 34,131 |
| 10,966 |
| 34,131 |
|
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
1. Trade and other receivables
|
| As at 31 March |
| ||
|
| 2015 |
| 2014 |
|
Net trade receivables |
| 74,744 |
| 33,049 |
|
Receivables owed by group undertakings |
| 605,940 |
| 613,941 |
|
Other receivables |
| 25 |
| 662 |
|
Accrued revenue |
| 30,849 |
| 35,364 |
|
|
| 711,558 |
| 683,016 |
|
Prepayments |
| 3,098 |
| 8,080 |
|
|
| 714,656 |
| 691,096 |
|
Less: non-current portion: |
|
|
|
|
|
Trade receivables |
| 1,000 |
| 141 |
|
Non-current trade and other receivables |
| 1,000 |
| 141 |
|
Current trade and other receivables |
| 713,656 |
| 690,955 |
|
2. Trade and other payables
|
| As at 31 March |
| ||
|
| 2015 |
| 2014 |
|
Trade payables |
| 104,566 |
| 54,300 |
|
Payables owed to group undertakings |
| 53,336 |
| 50,303 |
|
Other payables |
| 7,982 |
| 14,242 |
|
Accrued expenses |
| 38,297 |
| 27,544 |
|
|
| 204,181 |
| 146,389 |
|
Social security and other taxes |
| 7,090 |
| 8,252 |
|
|
| 211,271 |
| 154,641 |
|
Less: non-current portion: |
|
|
|
|
|
Trade payables |
| 38,157 |
| 20,130 |
|
Other payables |
| 1,670 |
| 7,811 |
|
Non-current trade and other payables |
| 39,827 |
| 27,941 |
|
Current trade and other payables |
| 171,444 |
| 126,700 |
|