Document and Entity Information
Document and Entity Information | 6 Months Ended |
Dec. 31, 2019 | |
Document and Entity Information | |
Entity Registrant Name | Manchester United plc |
Entity Central Index Key | 0001549107 |
Document Type | 6-K |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --06-30 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Interim consolidated statement
Interim consolidated statement of profit or loss - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Interim consolidated statement of profit or loss | |||||
Revenue from contracts with customers | £ 168,455 | £ 208,612 | £ 303,826 | £ 343,638 | |
Operating expenses | (131,253) | (160,269) | (267,674) | (303,849) | |
(Loss)/profit on disposal of intangible assets | (715) | (4,349) | 11,302 | 18,079 | |
Operating profit | 36,487 | 43,994 | 47,454 | 57,868 | |
Finance costs | (5,386) | (7,131) | (11,912) | (12,946) | |
Finance income | 20,644 | 785 | 18,732 | 1,474 | |
Net finance income/(costs) | 15,258 | (6,346) | 6,820 | (11,472) | |
Profit before income tax | 51,745 | 37,648 | 54,274 | 46,396 | |
Income tax expense | (16,738) | (10,878) | (18,139) | (12,980) | |
Profit for the period | £ 35,007 | £ 26,770 | £ 36,135 | £ (14,535) | £ 33,416 |
Earnings per share during the period | |||||
Basic earnings per share | £ 0.2127 | £ 0.1627 | £ 0.2196 | £ 0.2031 | |
Diluted earnings per share | £ 0.2125 | £ 0.1626 | £ 0.2194 | £ 0.2029 |
Interim consolidated statemen_2
Interim consolidated statement of comprehensive income - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interim consolidated statement of comprehensive income | ||||
Profit for the period | £ 35,007 | £ 26,770 | £ 36,135 | £ 33,416 |
Items that may be reclassified to profit or loss | ||||
Movements on hedges | 14,162 | (6,429) | 9,904 | (7,286) |
Income tax credit/(expense) relating to movements on hedges | 947 | (199) | (607) | (849) |
Other comprehensive income/(loss) for the period, net of tax | 15,109 | (6,628) | 9,297 | (8,135) |
Total comprehensive income/(loss) for the period | £ 50,116 | £ 20,142 | £ 45,432 | £ 25,281 |
Interim consolidated balance sh
Interim consolidated balance sheet - GBP (£) £ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Non-current assets | |||
Property, plant and equipment | £ 253,523 | £ 246,032 | £ 246,910 |
Right-of-use assets | 5,168 | ||
Investment property | 24,792 | 24,979 | 13,772 |
Intangible assets | 758,476 | 768,857 | 739,472 |
Deferred tax asset | 53,862 | 58,415 | 57,636 |
Trade receivables | 40,586 | 9,889 | 10,387 |
Income tax receivable | 547 | ||
Derivative financial instruments | 30 | 2,559 | |
Total non-current assets | 1,136,407 | 1,108,202 | 1,071,283 |
Current assets | |||
Inventories | 2,535 | 2,130 | 2,610 |
Prepayments | 13,211 | 13,030 | 10,320 |
Contract assets - accrued revenue | 78,098 | 39,532 | 79,496 |
Trade receivables | 26,313 | 23,851 | 32,819 |
Other receivables | 614 | 1,188 | 1,597 |
Income tax receivable | 618 | 643 | 598 |
Derivative financial instruments | 312 | 625 | |
Cash and cash equivalents | 100,856 | 307,637 | 190,395 |
Total current assets | 222,245 | 388,323 | 318,460 |
Total assets | 1,358,652 | 1,496,525 | 1,389,743 |
Equity | |||
Share capital | 53 | 53 | 53 |
Share premium | 68,822 | 68,822 | 68,822 |
Merger reserve | 249,030 | 249,030 | 249,030 |
Hedging reserve | (26,247) | (35,544) | (35,693) |
Retained earnings | 169,341 | 132,841 | 170,544 |
Total equity | 460,999 | 415,202 | 452,756 |
Non-current liabilities | |||
Deferred tax liabilities | 37,766 | 31,865 | 33,302 |
Contract liabilities - deferred revenue | 23,605 | 33,354 | 32,952 |
Trade and other payables | 31,241 | 79,183 | 46,644 |
Borrowings | 486,852 | 505,779 | 502,576 |
Lease liabilities | 3,626 | ||
Derivative financial instruments | 2,323 | 2,298 | |
Total non-current liabilities | 585,413 | 652,479 | 615,474 |
Current liabilities | |||
Contract liabilities - deferred revenue | 143,577 | 190,146 | 129,662 |
Trade and other payables | 152,093 | 230,386 | 180,588 |
Income tax liabilities | 9,429 | 2,859 | 5,771 |
Borrowings | 5,288 | 5,453 | 5,492 |
Lease liabilities | 1,622 | ||
Derivative financial instruments | 231 | ||
Total current liabilities | 312,240 | 428,844 | 321,513 |
Total equity and liabilities | £ 1,358,652 | £ 1,496,525 | £ 1,389,743 |
Interim consolidated statemen_3
Interim consolidated statement of changes in equity - GBP (£) £ in Thousands | Share capital | Share premium | Merger reserve | Hedging reserve | Retained earnings | Total |
Equity at beginning of the period at Jun. 30, 2018 | £ 53 | £ 68,822 | £ 249,030 | £ (27,558) | £ 136,757 | £ 427,104 |
Comprehensive income (loss) | ||||||
Profit/(loss) for the period | 33,416 | 33,416 | ||||
Cash flow hedges | (7,286) | (7,286) | ||||
Tax expense relating to movements on hedges | (849) | (849) | ||||
Total comprehensive income/(loss) for the period | (8,135) | 33,416 | 25,281 | |||
Equity-settled share-based payments | 371 | 371 | ||||
Dividends paid | 0 | |||||
Equity at end of period at Dec. 31, 2018 | 53 | 68,822 | 249,030 | (35,693) | 170,544 | 452,756 |
Comprehensive income (loss) | ||||||
Profit/(loss) for the period | (14,535) | (14,535) | ||||
Cash flow hedges | 566 | 566 | ||||
Tax expense relating to movements on hedges | (417) | (417) | ||||
Total comprehensive income/(loss) for the period | 149 | (14,535) | (14,386) | |||
Equity-settled share-based payments | 328 | 328 | ||||
Dividends paid | (23,326) | (23,326) | ||||
Deferred tax expense relating to share-based payments | (170) | (170) | ||||
Equity at end of period at Jun. 30, 2019 | 53 | 68,822 | 249,030 | (35,544) | 132,841 | 415,202 |
Comprehensive income (loss) | ||||||
Profit/(loss) for the period | 36,135 | 36,135 | ||||
Cash flow hedges | 9,904 | 9,904 | ||||
Tax expense relating to movements on hedges | (607) | (607) | ||||
Total comprehensive income/(loss) for the period | 9,297 | 36,135 | 45,432 | |||
Equity-settled share-based payments | 365 | 365 | ||||
Dividends paid | 0 | |||||
Equity at end of period at Dec. 31, 2019 | £ 53 | £ 68,822 | £ 249,030 | £ (26,247) | £ 169,341 | £ 460,999 |
Interim consolidated statemen_4
Interim consolidated statement of cash flows - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash flow from operating activities | |||||
Cash (used in)/generated from operations | £ (13,833) | £ (41,019) | £ (18,439) | £ 82,337 | |
Interest paid | (1,585) | (1,734) | (9,951) | (9,507) | |
Debt finance costs paid | (555) | ||||
Interest received | 406 | 722 | 1,050 | 1,355 | |
Tax paid | (208) | (376) | (1,697) | (1,810) | |
Net cash (outflow)/inflow from operating activities | (15,220) | (42,407) | (29,592) | 72,375 | |
Cash flow from investing activities | |||||
Payments for property, plant and equipment | (9,879) | (2,414) | (13,030) | (7,318) | |
Payments for intangible assets | [1] | (11,598) | (16,418) | (187,311) | (145,056) |
Proceeds from sale of intangible assets | [1] | 4,530 | 255 | 22,009 | 25,183 |
Net cash outflow from investing activities | (16,947) | (18,577) | (178,332) | (127,191) | |
Cash flow from financing activities | |||||
Repayment of borrowings | (3,750) | ||||
Principal elements of lease payments | (382) | (761) | |||
Net cash outflow from financing activities | (382) | (761) | (3,750) | ||
Net decrease in cash and cash equivalents | (32,549) | (60,984) | (208,685) | (58,566) | |
Cash and cash equivalents at beginning of period | 140,307 | 247,505 | 307,637 | 242,022 | |
Effect of exchange rate changes on cash and cash equivalents | (6,902) | 3,874 | 1,904 | 6,939 | |
Cash and cash equivalents at end of period | £ 100,856 | £ 190,395 | £ 100,856 | £ 190,395 | |
[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 payment 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 17. Trade payables in relation to the acquisition of registrations at the reporting date are provided in note 24. Trade receivables in relation to the disposal of registrations at the reporting date are provided in note 20. |
General information
General information | 6 Months Ended |
Dec. 31, 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 Company’s shares are listed on the New York Stock Exchange under the symbol “MANU”. These financial statements are presented in pounds sterling and all values are rounded to the nearest thousand (£’000) except when otherwise indicated. These interim consolidated financial statements were approved for issue by the Audit Committee on 25 February 2020. |
Basis of preparation
Basis of preparation | 6 Months Ended |
Dec. 31, 2019 | |
Basis of preparation | |
Basis of preparation | 2 The interim consolidated financial statements of Manchester United plc have been prepared on a going concern basis and in accordance with International Accounting Standard 34 “Interim Financial Reporting”. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended 30 June 2019, as filed with the Securities and Exchange Commission on 24 September 2019, contained within the Company’s Annual Report on Form 20-F, which were prepared in accordance with International Financial Reporting Standards (“IFRS"). The report of the auditors on those financial statements was unqualified and did not contain an emphasis of matter paragraph. The results of operations for the interim periods should not be considered indicative of results to be expected for the full fiscal year. |
Accounting policies
Accounting policies | 6 Months Ended |
Dec. 31, 2019 | |
Accounting policies | |
Accounting policies | 3 Accounting policies The accounting policies adopted are consistent with those of the consolidated financial statements for the year ended 30 June 2019, with the exception of the implementation of IFRS 16 'Leases' and except as described below. Foreign exchange gains and losses that relate to transfer fees receivable from other football clubs are presented in the statement of profit or loss on a net basis within profit on disposal of intangible assets. Such amounts were previously immaterial. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings. New and amended standards and interpretations adopted by the Group · IFRS 16, “Leases” The Group adopted IFRS 16 'Leases' with effect from 1 July 2019. IFRS 16 introduced 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. The Group has elected to apply the ‘simplified approach’ on initial adoption of IFRS 16, consequently comparative information has not been restated. The Group also elected to apply the following transitional practical expedients: · lease liabilities are initially measured at the present value of the remaining lease payments, discounted using the Group’s incremental borrowing rate determined as 2.22% as at 1 July 2019; · right-of-use assets are measured at an amount equal to the lease liability; and · operating leases with a remaining lease term of less than 12 months as at 1 July 2019 are accounted for as short-term leases. The new treatment of leases has resulted in an increase in non-current assets and financial liabilities as these leases are capitalised and included on the Group balance sheet. The reduction in operating lease expenses is offset by an increase in depreciation and an increase in finance charges. This has resulted in a higher operating profit. This 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. This is in contrast to the previous typical straight-line treatment of operating lease expenses under IAS 17. The Group recognized right-of-use assets of £6.0 million on 1 July 2019 and lease liabilities of the same amount, measured as follows: £’000 Operating lease commitments disclosed as at 30 June 2019 8,087 Discounted using the Group’s incremental borrowing rate as at 1 July 2019 6,246 Less short term leases not recognized as a liability (270) Lease liability recognized as at 1 July 2019 5,976 The Group expects that operating profit for the year ending 30 June 2020 will increase by approximately £0.1 million as a result of adopting the new standard. Profit before tax is expected to decrease by approximately £0.1 million. Lease payments were previously presented as operating cash flows. Lease payments are now split into payments for the principal portion of the lease liability which are presented as financing cash flows, and payments for the interest portion of the lease liability which are presented as operating cash flows. There is no impact on overall cash flow. The Group’s activities as a lessor are not materially impacted by the new standard. · Phase 1 amendments to IFRS 9, “Financial instruments” for IBOR reform Phase 1 amendments to IFRS 9, “Financial instruments” for IBOR reform are effective for annual reporting periods beginning on or after 1 January 2020 with earlier application permitted. The Group has applied early adoption the amendments. New and amended standards and interpretations issued but not yet adopted There are no IFRS or IFRS IC interpretations that are not yet effective that would be expected to have a material impact on the Group in the future reporting periods or on foreseeable future transactions. |
Critical estimates and judgment
Critical estimates and judgments | 6 Months Ended |
Dec. 31, 2019 | |
Critical estimates and judgments | |
Critical estimates and judgments | 4 Critical estimates and judgments The preparation of interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the interim consolidated financial statements are considered to be minimum guarantee revenue recognition, fair value and impairment of intangible assets – registrations, and recognition of deferred tax assets. In preparing these interim consolidated financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 30 June 2019, with the exception of changes in estimates that are required in determining the provision for income taxes. |
Seasonality of revenue
Seasonality of revenue | 6 Months Ended |
Dec. 31, 2019 | |
Seasonality of revenue | |
Seasonality of revenue | 5 Seasonality of revenue We experience seasonality in our revenue and cash flow, limiting the overall comparability of interim financial periods. In any given interim period, our total revenue can vary based on the number of games played in that period, which affects the amount of Matchday and Broadcasting revenue recognized. Similarly, certain of our costs are derived from hosting games at Old Trafford, and these costs will also vary based on the number of games played in the period. We historically recognize the most revenue in our second and third fiscal quarters due to the scheduling of matches. However, a strong performance by our first team in European competitions and domestic cups could result in significant additional Matchday and Broadcasting revenue, and consequently we may recognize the most revenue in our fourth fiscal quarter in those years. 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. 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 UEFA Champions League, or decrease if the club's men's first team fails to participate in the UEFA 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. Participation in the UEFA Champions League is typically secured via a top 4 finish in the Premier League or winning the UEFA Europa League. Revenue is currently being recognized based on management's estimate as at 31 December 2019 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. 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 at the balance sheet date 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). 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. |
Revenue from contracts with cus
Revenue from contracts with customers | 6 Months Ended |
Dec. 31, 2019 | |
Revenue from contracts with customers | |
Revenue from contracts with customers | 6 Revenue from contracts with customers 6.1 Disaggregation of revenue from contracts with customers 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 on-going development of the Group. Consequently the chief operating decision maker (being the Board and executive officers of Manchester United plc) 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: Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 Sponsorship Retail, merchandising, apparel & product licensing Commercial 70,660 65,944 151,055 141,844 Domestic competitions 50,440 50,128 78,327 79,005 European competitions 11,935 50,918 14,949 62,212 Other 2,322 2,630 4,297 5,301 Broadcasting 64,697 103,676 97,573 146,518 Matchday 33,098 38,992 55,198 55,276 168,455 208,612 303,826 343,638 All non-current assets, other than US deferred tax assets, are held within the United Kingdom. 6.2 Assets and liabilities related to contracts with customers Details of movements on assets related to contracts with customers are as follows: Current contract assets – accrued revenue £’000 At 1 July 2018 38,018 Recognized in revenue during the period 74,034 Cash received/amounts invoiced during the period (32,556) At 31 December 2018 79,496 Recognized in revenue during the period 37,778 Cash received/amounts invoiced during the period (77,742) At 30 June 2019 39,532 Recognized in revenue during the period 74,877 Cash received/amounts invoiced during the period (36,311) At 31 December 2019 78,098 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 Non-current contract contract Total contract liabilities – liabilities – liabilities – deferred deferred deferred revenue revenue revenue £’000 £’000 £’000 At 1 July 2018 (180,512) (37,085) (217,597) Recognized in revenue during the period 112,215 — 112,215 Cash received/amounts invoiced during the period (56,519) (713) (57,232) Reclassified to current during the period (4,846) 4,846 — At 31 December 2018 (129,662) (32,952) (162,614) Recognized in revenue during the period 128,956 — 128,956 Cash received/amounts invoiced during the period (168,025) (21,817) (189,842) Reclassified to current during the period (21,415) 21,415 — At 30 June 2019 (190,146) (33,354) (223,500) Recognized in revenue during the period 125,635 — 125,635 Cash received/amounts invoiced during the period (69,317) — (69,317) Reclassified to current during the period (9,749) 9,749 — At 31 December 2019 (143,577) (23,605) (167,182) 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. |
Operating expenses
Operating expenses | 6 Months Ended |
Dec. 31, 2019 | |
Operating expenses | |
Operating expenses | 7 Operating expenses Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 Employee benefit expenses (70,965) (77,903) (141,175) (154,946) Depreciation - property, plant and equipment (note 14) (3,133) (2,938) (6,273) (5,715) Depreciation – right-of-use assets (note 15) (404) — (808) — Depreciation - investment property (note 16) (89) (32) (187) (64) Amortization (note 17) (31,257) (33,440) (63,444) (68,571) Other operating expenses (25,405) (26,357) (55,787) (54,954) Exceptional items (note 8) — (19,599) — (19,599) (131,253) (160,269) (267,674) (303,849) |
Exceptional items
Exceptional items | 6 Months Ended |
Dec. 31, 2019 | |
Exceptional items | |
Exceptional items | 8 Exceptional items Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 Compensation paid for loss of office — (19,599) — (19,599) — (19,599) — (19,599) Compensation paid for loss of office relates to amounts payable to the former manager and certain members of the coaching staff. |
(Loss)_profit on disposal of in
(Loss)/profit on disposal of intangible assets | 6 Months Ended |
Dec. 31, 2019 | |
(Loss)/profit on disposal of intangible assets | |
(Loss)/profit on disposal of intangible assets | 9 (Loss)/profit on disposal of intangible assets Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 (Loss)/profit on disposal of registrations (1,531) (4,508) 10,214 17,841 Player loan income 816 159 1,088 238 (715) (4,349) 11,302 18,079 |
Net finance income_(costs)
Net finance income/(costs) | 6 Months Ended |
Dec. 31, 2019 | |
Net finance income/(costs) | |
Net finance income/(costs) | 10 Net finance income/(costs) Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 Interest payable on bank loans and overdrafts (245) (261) (583) (525) Interest payable on secured term loan facility and senior secured notes (4,345) (4,859) (9,455) (9,390) Interest payable on lease liabilities (note 15) (33) — (68) — Amortization of issue costs on secured term loan facility and senior secured notes (146) (165) (291) (321) Foreign exchange losses on retranslation of unhedged US dollar borrowings — (1,316) — (1,535) Unwinding of discount relating to registrations (192) (505) (1,169) (1,231) Fair value movement on derivative financial instruments: Embedded foreign exchange derivatives (425) (25) (346) 56 Total finance costs (5,386) (7,131) (11,912) (12,946) Interest receivable on short-term bank deposits 415 785 1,070 1,474 Foreign exchange gains on retranslation of unhedged US dollar borrowings 19,522 — 17,074 — Hedge ineffectiveness on cash flow hedges 707 — 588 — Total finance income 20,644 785 18,732 1,474 Net finance income/(costs) 15,258 (6,346) 6,820 (11,472) |
Income tax expense
Income tax expense | 6 Months Ended |
Dec. 31, 2019 | |
Income tax expense | |
Income tax expense | 11 Income tax expense Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 Current tax Current tax on profit for the period (6,073) (1,953) (6,673) (2,603) Foreign tax (205) (292) (655) (403) Adjustment in respect of previous years (32) — (32) — Total current tax expense (6,310) (2,245) (7,360) (3,006) Deferred tax Origination and reversal of temporary differences (6,432) (8,633) (6,783) (9,974) Re-measurement of US deferred tax asset (3,996) — (3,996) — Total deferred tax expense (10,428) (8,633) (10,779) (9,974) Total income tax expense (16,738) (10,878) (18,139) (12,980) Tax is recognized based on management’s estimate of the weighted average annual tax rate expected for the full financial year. Based on current forecasts, the estimated weighted average annual tax rate used for the year to 30 June 2020 is 32.58% (30 June 2019: 28.2%). In addition to the amounts recognized in the statement of profit or loss, the following amounts relating to tax have been recognized in other comprehensive income: Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 Current tax (529) (1,453) (932) (959) Deferred tax (note 18) 1,476 1,254 325 110 Total income tax credit/(expense) recognized in other comprehensive income 947 (199) (607) (849) |
Earnings per share
Earnings per share | 6 Months Ended |
Dec. 31, 2019 | |
Earnings per share | |
Earnings per share | 12 Earnings per share Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 Profit for the period (£’000) 35,007 26,770 36,135 33,416 Basic earnings per share (pence) 21.27 16.27 21.96 20.31 Diluted earnings per share (pence) 21.25 16.26 21.94 20.29 (i) Basic earnings per share is calculated by dividing the profit for the period by the weighted average number of ordinary shares in issue during the period. (ii) Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue during the year to assume conversion of all dilutive potential ordinary shares. The Company has one category of dilutive potential ordinary shares: share awards pursuant to the 2012 Equity Incentive Plan (the “Equity Plan”). Share awards pursuant to the Equity Plan are assumed to have been converted into ordinary shares at the beginning of the financial year, or, if later, the date of issue of the potential ordinary shares. (iii) Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 Number Number Number Number ‘000 ‘000 ‘000 ‘000 Class A ordinary shares (thousands) 40,573 40,526 40,573 40,526 Class B ordinary shares (thousands) 124,000 124,000 124,000 124,000 Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share 164,573 164,526 164,573 164,526 Adjustment for calculation of diluted earnings per share assumed conversion into Class A ordinary shares 173 137 164 137 Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share 164,746 164,663 164,737 164,663 |
Dividends
Dividends | 6 Months Ended |
Dec. 31, 2019 | |
Dividends | |
Dividends | 13 Dividends No dividend has been paid by the Company during the six month period ended 31 December 2019 (six months ended 31 December 2018: £nil). A semi-annual dividend of $14,812,000, equivalent to $0.09 per share, was paid on 6 January 2020. The pounds sterling equivalent was £11,323,000. A further semi-annual dividend of $0.09 per share will be paid on 3 June 2020. |
Property, plant and equipment
Property, plant and equipment | 6 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment. | |
Property, plant and equipment | 14 Property, plant and equipment Freehold Plant and Fixtures property machinery and fittings Total £’000 £’000 £’000 £’000 At 1 July 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 Six months ended 31 December 2019 Opening net book amount 215,826 5,157 25,049 246,032 Additions — 1,384 12,380 13,764 Depreciation charge (1,631) (1,271) (3,371) (6,273) Closing net book amount 214,195 5,270 34,058 253,523 At 31 December 2019 Cost 268,981 36,229 77,186 382,396 Accumulated depreciation (54,786) (30,959) (43,128) (128,873) Net book amount 214,195 5,270 34,058 253,523 At 1 July 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 Six months ended 31 December 2018 Opening net book amount 219,335 4,169 21,897 245,401 Additions 23 1,308 5,893 7,224 Transfers (25) — 25 — Depreciation charge (1,638) (1,056) (3,021) (5,715) Closing net book amount 217,695 4,421 24,794 246,910 At 31 December 2018 Cost 269,365 36,098 63,718 369,181 Accumulated depreciation (51,670) (31,677) (38,924) (122,271) Net book amount 217,695 4,421 24,794 246,910 |
Leases
Leases | 6 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | 15 Leases As explained in note 3 above, the Group has adopted IFRS 16 for leases where the Group is the lessee with effect from 1 July 2019. (i) Amounts recognized in the consolidated balance sheet The balance sheet shows the following amounts relating to leases: Right-of-use assets: 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 Property 5,056 — — Plant and machinery 112 — — Total 5,168 — — Additions to right-of-use assets for the three and six months ended 31 December 2019 amounted £nil. Lease liabilities: 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 Current 1,622 — — Non-current 3,626 — — Total lease liabilities 5,248 — — The total cash outflow for leases for the three months ended 31 December 2019 amounted £398,000. The total cash outflow for leases for the six months ended 31 December 2019 amounted £796,000. (ii) Amounts recognized in the consolidated statement of profit or loss: 31 December 31 December 2019 2018 £’000 £’000 Depreciation charge of right-of-use assets Property (765) — Plant and machinery (43) — (808) — Interest expense (included in finance cost) (68) — Expense relating to short-term leases (included in operating expenses) (351) — Expense relating to low value leases (included in operating expenses) (8) — (iii) The group’s leasing activities and how these are accounted for The Group leases various offices and equipment. Until 30 June 2019, these leases of property, plant and equipment were classified and accounted for as operating leases and lease payments were charged to profit or loss on a straight-line basis over the period of the lease. From 1 July 2019, all leases with a term of more than 12 months, unless the underlying asset is of low value, are recognized as a right-of-use asset, with a corresponding lease liability, at the date at which the leased asset is available for use by the Group. The lease agreements do not impose any covenants other than the security interests in the right-of-use assets that are held by the lessor. Right-of-use assets may not be used as security for borrowing purposes. Lease liabilities are initially measured on a present value basis. Lease liabilities include the net present value of lease payments, less any lease incentives receivable. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, which is generally the case for leases of the Group, the Group’s incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are initially measured at cost comprising the following: · the amount of the initial measurement of the lease liability; · a ny lease payments made at or before the commencement date less any lease incentives received; · any initial direct costs; and · restoration costs. Right-of-use assets are depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. Payments associated with short-term leases of property, plant and equipment and all leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. |
Investment property
Investment property | 6 Months Ended |
Dec. 31, 2019 | |
Investment property | |
Investment properties | 16 Investment property Total £’000 At 1 July 2019 Cost 32,193 Accumulated depreciation and impairment (7,214) Net book amount 24,979 Six months ended 31 December 2019 Opening net book amount 24,979 Depreciation charge (187) Closing net book amount 24,792 At 31 December 2019 Cost 32,193 Accumulated depreciation and impairment (7,401) Net book amount 24,792 At 1 July 2018 Cost 19,769 Accumulated depreciation and impairment (5,933) Net book amount 13,836 Six months ended 31 December 2018 Opening net book amount 13,836 Depreciation charge (64) Closing net book amount 13,772 At 31 December 2018 Cost 19,769 Accumulated depreciation and impairment (5,997) Net book amount 13,772 Management obtained an external valuation report carried out in accordance with the Royal Institution of Chartered Surveyors (“RICS”) Valuation - Professional Standards, January 2014 as of 30 June 2019. The fair value of investment properties as of 30 June 2019 was £27,633,000. Management has considered the carrying amount of investment property as of 31 December 2019 and concluded that, as there are no indicators of impairment, an impairment test is not required. The external valuation was carried out on the basis of Market Value, as defined in the RICS Valuation – Professional Standards, January 2014. Fair value of investment property is determined using inputs that are not based on observable market data, consequently the asset is categorized as Level 3. |
Intangible assets
Intangible assets | 6 Months Ended |
Dec. 31, 2019 | |
Intangible assets. | |
Intangible assets | 17 Intangible assets Other intangible Goodwill Registrations assets Total £’000 £’000 £’000 £’000 At 1 July 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 Six months ended 31 December 2019 Opening net book amount 421,453 338,762 8,642 768,857 Additions — 103,489 1,476 104,965 Disposals — (51,902) — (51,902) Amortization charge — (61,172) (2,272) (63,444) Closing net book amount 421,453 329,177 7,846 758,476 At 31 December 2019 Cost 421,453 772,089 14,076 1,207,618 Accumulated amortization — (442,912) (6,230) (449,142) Net book amount 421,453 329,177 7,846 758,476 At 1 July 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 Six months ended 31 December 2018 Opening net book amount 421,453 369,508 8,679 799,640 Additions — 14,461 1,871 16,332 Disposals — (7,929) — (7,929) Amortization charge — (66,947) (1,624) (68,571) Closing net book amount 421,453 309,093 8,926 739,472 At 31 December 2018 Cost 421,453 764,746 12,250 1,198,449 Accumulated amortization — (455,653) (3,324) (458,977) Net book amount 421,453 309,093 8,926 739,472 Impairment tests for goodwill Goodwill is not subject to amortization and is tested annually for impairment (normally at the end of the third fiscal quarter) or more frequently if events or changes in circumstances indicate a potential impairment. Management has considered the carrying amount of goodwill as of 31 December 2019 and concluded that, as there are no indicators of impairment, a detailed impairment test is not required. 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. Other intangible assets Other intangible assets include internally generated assets whose cost and accumulated amortization as of 31 December 2019 was £2,076,000 and £1,065,000 respectively (31 December 2018: £1,559,000 and £275,000 respectively). |
Deferred tax
Deferred tax | 6 Months Ended |
Dec. 31, 2019 | |
Deferred tax | |
Deferred tax | 18 Deferred tax Deferred tax assets and 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) for financial reporting purposes: 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 US deferred tax assets (53,862) (58,415) (57,636) UK deferred tax liabilities 37,766 31,865 33,302 Net deferred tax asset (16,096) (26,550) (24,334) The movements in the net deferred tax asset are as follows: 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 At the beginning of the period (26,550) (34,198) (34,198) Expensed to the statement of profit or loss (note 11) 10,779 8,112 9,974 Credited to other comprehensive income (note 11) (325) (634) (110) Expense relating to share-based payments (1) — 170 — At the end of the period (16,096) (26,550) (24,334) (1) 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 interim consolidated statement of changes in equity above. |
Inventories
Inventories | 6 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Inventories | 19 Inventories 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 Finished goods 2,535 2,130 2,610 The cost of inventories recognized as an expense and included in operating expenses for the six months ended 31 December 2019 amounted to £4,888,000 (year ended 30 June 2019: £8,664,000; six months ended 31 December 2018: £4,769,000). |
Trade receivables
Trade receivables | 6 Months Ended |
Dec. 31, 2019 | |
Trade receivables. | |
Trade receivables | 20 Trade receivables 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 Trade receivables 69,633 46,694 58,500 Less: provision for impairment of trade receivables (2,734) (12,954) (15,294) Net trade receivables 66,899 33,740 43,206 Less: non-current portion Trade receivables 40,586 9,889 10,387 Non-current trade receivables 40,586 9,889 10,387 Current trade receivables 26,313 23,851 32,819 Net trade receivables include transfer fees receivable from other football clubs of £56,843,000 (30 June 2019: £18,270,000; 31 December 2018: £27,865,000) of which £40,586,000 (30 June 2019: £9,889,000; 31 December 2018: £10,387,000) is receivable after more than one year. Net trade receivables also include £4,255,000 (30 June 2018: £12,725,000; 31 December 2018: £7,474,000) 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. |
Derivative financial instrument
Derivative financial instruments | 6 Months Ended |
Dec. 31, 2019 | |
Derivative financial instruments | |
Derivative financial instruments | 21 Derivative financial instruments 31 December 2019 30 June 2019 31 December 2018 Assets Liabilities Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000 £’000 £’000 Used for hedging: Interest rate swaps — (2,317) — (2,298) 2,504 — At fair value through profit or loss: Embedded foreign exchange derivatives — (101) 245 — 680 — Forward foreign exchange contracts — (136) 97 — — — — (2,554) 342 (2,298) 3,184 — Less non-current portion: Used for hedging: Interest rate swaps — (2,317) — (2,298) 2,504 — At fair value through profit or loss: Embedded foreign exchange derivatives — — 30 — 55 — Forward foreign exchange contracts — (6) — — — — Non-current derivative financial instruments — (2,323) 30 (2,298) 2,559 — Current derivative financial instruments — (231) 312 — 625 — Fair value hierarchy 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. All of the financial instruments detailed above are included in level 2. |
Cash and cash equivalents
Cash and cash equivalents | 6 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents | |
Cash and cash equivalents | 22 Cash and cash equivalents 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 Cash at bank and in hand 100,856 307,637 190,395 Cash and cash equivalents for the purposes of the interim consolidated statement of cash flows are as above. |
Share capital
Share capital | 6 Months Ended |
Dec. 31, 2019 | |
Share capital. | |
Share capital | 23 Share capital Number of Ordinary shares shares (thousands) £’000 At 1 July 2018 164,526 53 Employee share-based compensation awards – issue of shares — — At 31 December 2018 164,526 53 Employee share-based compensation awards – issue of shares 45 — At 30 June 2019 164,571 53 Employee share-based compensation awards – issue of shares 2 — At 31 December 2019 164,573 53 The Company has two classes of ordinary shares outstanding: Class A ordinary shares and Class B ordinary shares. 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. |
Trade and other payables
Trade and other payables | 6 Months Ended |
Dec. 31, 2019 | |
Trade and other payables | |
Trade and other payables | 24 Trade and other payables 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 Trade payables 106,394 196,644 135,328 Other payables 2,807 4,689 3,559 Accrued expenses 63,984 94,381 77,061 Social security and other taxes 10,149 13,855 11,284 183,334 309,569 227,232 Less: non-current portion Trade payables 29,738 77,438 44,667 Other payables 1,503 1,745 1,977 Non-current trade and other payables 31,241 79,183 46,644 Current trade and other payables 152,093 230,386 180,588 Trade payables include transfer fees and other associated costs in relation to the acquisition of registrations of £97,884,000 (30 June 2019: £187,544,000; 31 December 2018: £128,554,000) of which £29,738,000 (30 June 2019: £77,438,000; 31 December 2018: £44,667,000) is due after more than one year. Of the amount due after more than one year, £13,889,000 (30 June 2019: £59,889,000; 31 December 2018: £32,336,000) is expected to be paid between 1 and 2 years, and the balance of £15,849,000 (30 June 2019: £17,549,000; 31 December 2018: £12,331,000) is expected to be paid between 2 and 5 years. |
Borrowings
Borrowings | 6 Months Ended |
Dec. 31, 2019 | |
Borrowings | |
Borrowings | 25 Borrowings 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 Senior secured notes 318,738 330,757 328,696 Secured term loan facility 168,114 175,022 173,880 Accrued interest on senior secured notes 5,288 5,453 5,492 492,140 511,232 508,068 Less: non-current portion Senior secured notes 318,738 330,757 328,696 Secured term loan facility 168,114 175,022 173,880 Non-current borrowings 486,852 505,779 502,576 Current borrowings 5,288 5,453 5,492 The senior secured notes of £318,738,000 (30 June 2019: £330,757,000; 31 December 2018: £328,696,000) is stated net of unamortized issue costs amounting to £3,231,000 (30 June 2019: £3,414,000; 31 December 2018: £3,594,000). The outstanding principal amount of the senior secured notes is $425,000,000 (30 June 2019: $425,000,000; 31 December 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. |
Cash (used in)_generated from o
Cash (used in)/generated from operations | 6 Months Ended |
Dec. 31, 2019 | |
Cash (used in)/generated from operations | |
Cash (used in)/generated from operations | 26 Cash (used in)/generated from operations Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 Profit before income tax 51,745 37,648 54,274 46,396 Adjustments for: Depreciation 3,626 2,970 7,268 5,779 Amortization 31,257 33,440 63,444 68,571 Loss/(profit) on disposal of intangible assets 715 4,349 (11,302) (18,079) Net finance (income)/costs (15,258) 6,346 (6,820) 11,472 Non-cash employee benefit expense - equity-settled share-based payments 227 161 365 371 Foreign exchange losses/(gains) on operating activities 87 (95) (286) 182 Reclassified from hedging reserve 2,957 1,536 5,811 2,844 Changes in working capital: Inventories 129 56 (405) (1,194) Prepayments 2,171 2,336 (181) 542 Contract assets – accrued revenue (38,165) (33,643) (38,566) (41,478) Trade receivables 6,160 2,442 8,504 81,719 Other receivables 14,655 (1,438) 574 (1,490) Contract liabilities – deferred revenue (66,449) (97,181) (56,318) (54,983) Trade and other payables (7,690) 54 (44,801) (18,315) Cash (used in)/generated from operations (13,833) (41,019) (18,439) 82,337 |
Pension arrangements
Pension arrangements | 6 Months Ended |
Dec. 31, 2019 | |
Pension arrangements | |
Pension arrangements | 27 Pension arrangements 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. The Group currently pays total contributions of £482,000 per annum and this amount will increase by 5% per annum from September 2020. Based on the actuarial valuation assumptions, this will be sufficient to pay off the deficit by 31 October 2023. As of 31 December 2019, the present value of the Group’s outstanding contributions (i.e. its future liability) is £1,977,000. This amounts to £474,000 (30 June 2019: £459,000; 31 December 2018: £446,000) due within one year and £1,503,000 (30 June 2019: £1,745,000; 31 December 2017: £1,977,000) due after more than one year and is included within other payables. Contributions are also made to defined contribution pension arrangements and are charged to the statement of profit or loss in the period in which they become payable. |
Financial risk management
Financial risk management | 6 Months Ended |
Dec. 31, 2019 | |
Financial risk management | |
Financial risk management | 28 Financial risk management 28.1 Financial risk factors The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, and cash flow and fair value interest rate risk), credit risk, and liquidity risk. The interim consolidated financial statements do not include all financial risk management information and disclosures required in the annual financial statements, they should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended 30 June 2019, as filed with the Securities and Exchange Commission on 24 September 2019, in the Company’s Annual Report on Form 20-F. There have been no changes in risk management since the previous financial year end or in any risk management policies. 28.2 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 January 2020 to June 2024. 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 balance sheet date: 31 December 30 June 31 December 2019 2019 2018 $’000 $’000 $’000 USD borrowings 650,000 650,000 650,000 Hedged USD cash (58,892) (308,838) (210,400) Net USD debt 591,108 341,162 439,600 Hedged future USD revenues (199,137) (211,153) (338,046) Unhedged USD borrowings 391,971 130,009 101,554 Closing USD exchange rate ($: £) 1.3200 1.2718 1.2790 The Group hedges its cash flow interest rate risk where considered appropriate using interest rate swaps. Such interest rate swaps have the economic effect of converting borrowings from floating rates to fixed rates. The effective portion of changes in the fair value of the interest rate swap is initially recognized in other comprehensive income, rather than being recognized in the 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. net finance costs), as the underlying interest payments, which given the term of the swap will be between January 2020 to June 2024. The following table details the interest rate swaps at the reporting date that are used to hedge borrowings: 31 December 30 June 31 December 2019 2019 2018 Principal value of loan outstanding ($’000) 150,000 150,000 150,000 Rate received 1 month $ LIBOR 1 month $ LIBOR 1 month $ LIBOR Rate paid Fixed 2.032 % Fixed 2.032 % Fixed 2.032 % Expiry date 30 June 2024 30 June 2024 30 June 2024 As of 31 December 2019 the fair value of the above interest rate swap was a liability of £2,317,000 (30 June 2019: liability of £2,298,000; 31 December 2018: asset of £2,504,000). 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. |
Contingent liabilities and cont
Contingent liabilities and contingent assets | 6 Months Ended |
Dec. 31, 2019 | |
Contingent liabilities and contingent assets | |
Contingent liabilities and contingent assets | 29 Contingent liabilities and contingent assets 29.1 Contingent liabilities The Group had contingent liabilities at 31 December 2019 in respect of: (i) Transfer fees Under the terms of certain contracts with other football clubs and agents in respect of player transfers, additional amounts, in excess of the amounts included in the cost of registrations, would be payable by the Group if certain substantive performance conditions are met. These excess amounts are only recognized within the cost of registrations when the 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 £60,211,000 (30 June 2019: £74,321,000; 31 December 2018: £66,184,000). No material adjustment was required to the amounts included in the cost of registrations during the period (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 31 December 2019, the potential amount payable by type of condition and category of player was: First team squad Other Total Type of condition £’000 £’000 £’000 MUFC appearances/team success/new contract 20,066 9,890 29,956 International appearances 11,102 — 11,102 Other 18,535 618 19,153 49,703 10,508 60,211 (ii) Tax matters 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. 29.2 Contingent assets (i) Transfer fees 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 31 December 2019, the amount of such receipt considered to be probable was £4,046,000 (30 June 2019: £707,000; 31 December 2018: £2,063,000). |
Commitments
Commitments | 6 Months Ended |
Dec. 31, 2019 | |
Commitments | |
Commitments | 30 Commitments 30.1 Capital commitments As at 31 December 2019, the Group had contracted capital expenditure relating to property, plant and equipment amounting to £4,523,000 (30 June 2019: £3,794,000; 31 December 2018: £1,970,000) and to other intangible assets amounting to £280,000 (30 June 2019: £nil; 31 December 2017: £nil). These amounts are not recognized as liabilities. 30.2 Non-cancellable operating leases The Group leases various offices and equipment under non-cancellable operating lease agreements. From 1 July 2019, the Group has recognized right-of-use assets for these leases, except for short term and low value leases. See note 3 and note 15 for further information. The Group also leases out its investment property. |
Related party transactions
Related party transactions | 6 Months Ended |
Dec. 31, 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 | 6 Months Ended |
Dec. 31, 2019 | |
Subsidiaries | |
Subsidiaries | 32 Subsidiaries The following companies are the subsidiary undertakings of the Company as of 31 December 2019: % of ownership Subsidiaries 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 Dormant 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 United States. |
Events after the reporting peri
Events after the reporting period | 6 Months Ended |
Dec. 31, 2019 | |
Events after after the reporting period | |
Events after the reporting period | 33 Events after the reporting period 33.1 Dividends An interim dividend of $14,812,000 (equivalent to $0.09 per share), the pounds sterling equivalent of which was £11,323,000, was paid on 6 January 2020. 33.2 Registrations The playing registrations of certain footballers have been disposed of, subsequent to 31 December 2019, for total proceeds, net of associated costs, of £1,278,000. The associated net book value was £160,000. Also subsequent to 31 December 2019, Solidarity contributions, sell-on fees and contingent consideration totalling £79,000, became receivable in respect of previous playing registration disposals. Subsequent to 31 December 2019 the playing registrations of certain players were acquired or extended for a total consideration, including associated costs, of £56,151,000. |
Accounting policies (Policies)
Accounting policies (Policies) | 6 Months Ended |
Dec. 31, 2019 | |
Accounting policies | |
Foreign exchange gains and losses | Foreign exchange gains and losses that relate to transfer fees receivable from other football clubs are presented in the statement of profit or loss on a net basis within profit on disposal of intangible assets. Such amounts were previously immaterial. |
Taxes on income | Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings. |
New and amended standards and interpretations adopted by the Group | New and amended standards and interpretations adopted by the Group · IFRS 16, “Leases” The Group adopted IFRS 16 'Leases' with effect from 1 July 2019. IFRS 16 introduced 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. The Group has elected to apply the ‘simplified approach’ on initial adoption of IFRS 16, consequently comparative information has not been restated. The Group also elected to apply the following transitional practical expedients: · lease liabilities are initially measured at the present value of the remaining lease payments, discounted using the Group’s incremental borrowing rate determined as 2.22% as at 1 July 2019; · right-of-use assets are measured at an amount equal to the lease liability; and · operating leases with a remaining lease term of less than 12 months as at 1 July 2019 are accounted for as short-term leases. The new treatment of leases has resulted in an increase in non-current assets and financial liabilities as these leases are capitalised and included on the Group balance sheet. The reduction in operating lease expenses is offset by an increase in depreciation and an increase in finance charges. This has resulted in a higher operating profit. This 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. This is in contrast to the previous typical straight-line treatment of operating lease expenses under IAS 17. The Group recognized right-of-use assets of £6.0 million on 1 July 2019 and lease liabilities of the same amount, measured as follows: £’000 Operating lease commitments disclosed as at 30 June 2019 8,087 Discounted using the Group’s incremental borrowing rate as at 1 July 2019 6,246 Less short term leases not recognized as a liability (270) Lease liability recognized as at 1 July 2019 5,976 The Group expects that operating profit for the year ending 30 June 2020 will increase by approximately £0.1 million as a result of adopting the new standard. Profit before tax is expected to decrease by approximately £0.1 million. Lease payments were previously presented as operating cash flows. Lease payments are now split into payments for the principal portion of the lease liability which are presented as financing cash flows, and payments for the interest portion of the lease liability which are presented as operating cash flows. There is no impact on overall cash flow. The Group’s activities as a lessor are not materially impacted by the new standard. · Phase 1 amendments to IFRS 9, “Financial instruments” for IBOR reform Phase 1 amendments to IFRS 9, “Financial instruments” for IBOR reform are effective for annual reporting periods beginning on or after 1 January 2020 with earlier application permitted. The Group has applied early adoption the amendments. |
New and amended standards and interpretations issued but not yet adopted | New and amended standards and interpretations issued but not yet adopted There are no IFRS or IFRS IC interpretations that are not yet effective that would be expected to have a material impact on the Group in the future reporting periods or on foreseeable future transactions. |
Leases | The Group leases various offices and equipment. Until 30 June 2019, these leases of property, plant and equipment were classified and accounted for as operating leases and lease payments were charged to profit or loss on a straight-line basis over the period of the lease. From 1 July 2019, all leases with a term of more than 12 months, unless the underlying asset is of low value, are recognized as a right-of-use asset, with a corresponding lease liability, at the date at which the leased asset is available for use by the Group. The lease agreements do not impose any covenants other than the security interests in the right-of-use assets that are held by the lessor. Right-of-use assets may not be used as security for borrowing purposes. Lease liabilities are initially measured on a present value basis. Lease liabilities include the net present value of lease payments, less any lease incentives receivable. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, which is generally the case for leases of the Group, the Group’s incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are initially measured at cost comprising the following: · the amount of the initial measurement of the lease liability; · a ny lease payments made at or before the commencement date less any lease incentives received; · any initial direct costs; and · restoration costs. Right-of-use assets are depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. Payments associated with short-term leases of property, plant and equipment and all leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less |
Accounting policies (Tables)
Accounting policies (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Accounting policies | |
Schedule of lease liabilities recognized as at 1 July 2019 | £’000 Operating lease commitments disclosed as at 30 June 2019 8,087 Discounted using the Group’s incremental borrowing rate as at 1 July 2019 6,246 Less short term leases not recognized as a liability (270) Lease liability recognized as at 1 July 2019 5,976 |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Revenue from contracts with customers | |
Schedule of revenue derived from principal activity | Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 Sponsorship Retail, merchandising, apparel & product licensing Commercial 70,660 65,944 151,055 141,844 Domestic competitions 50,440 50,128 78,327 79,005 European competitions 11,935 50,918 14,949 62,212 Other 2,322 2,630 4,297 5,301 Broadcasting 64,697 103,676 97,573 146,518 Matchday 33,098 38,992 55,198 55,276 168,455 208,612 303,826 343,638 |
Schedule of assets and liabilities related to contracts with customers | Current contract assets – accrued revenue £’000 At 1 July 2018 38,018 Recognized in revenue during the period 74,034 Cash received/amounts invoiced during the period (32,556) At 31 December 2018 79,496 Recognized in revenue during the period 37,778 Cash received/amounts invoiced during the period (77,742) At 30 June 2019 39,532 Recognized in revenue during the period 74,877 Cash received/amounts invoiced during the period (36,311) At 31 December 2019 78,098 Current Non-current contract contract Total contract liabilities – liabilities – liabilities – deferred deferred deferred revenue revenue revenue £’000 £’000 £’000 At 1 July 2018 (180,512) (37,085) (217,597) Recognized in revenue during the period 112,215 — 112,215 Cash received/amounts invoiced during the period (56,519) (713) (57,232) Reclassified to current during the period (4,846) 4,846 — At 31 December 2018 (129,662) (32,952) (162,614) Recognized in revenue during the period 128,956 — 128,956 Cash received/amounts invoiced during the period (168,025) (21,817) (189,842) Reclassified to current during the period (21,415) 21,415 — At 30 June 2019 (190,146) (33,354) (223,500) Recognized in revenue during the period 125,635 — 125,635 Cash received/amounts invoiced during the period (69,317) — (69,317) Reclassified to current during the period (9,749) 9,749 — At 31 December 2019 (143,577) (23,605) (167,182) |
Operating expenses (Tables)
Operating expenses (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Operating expenses | |
Schedule of operating expenses | Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 Employee benefit expenses (70,965) (77,903) (141,175) (154,946) Depreciation - property, plant and equipment (note 14) (3,133) (2,938) (6,273) (5,715) Depreciation – right-of-use assets (note 15) (404) — (808) — Depreciation - investment property (note 16) (89) (32) (187) (64) Amortization (note 17) (31,257) (33,440) (63,444) (68,571) Other operating expenses (25,405) (26,357) (55,787) (54,954) Exceptional items (note 8) — (19,599) — (19,599) (131,253) (160,269) (267,674) (303,849) |
Exceptional items (Tables)
Exceptional items (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Exceptional items | |
Schedule of exceptional items | Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 Compensation paid for loss of office — (19,599) — (19,599) — (19,599) — (19,599) |
(Loss)_profit on disposal of _2
(Loss)/profit on disposal of intangible assets (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
(Loss)/profit on disposal of intangible assets | |
Schedule of (Loss)/profit on disposal of intangible assets | Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 (Loss)/profit on disposal of registrations (1,531) (4,508) 10,214 17,841 Player loan income 816 159 1,088 238 (715) (4,349) 11,302 18,079 |
Net finance income_(costs) (Tab
Net finance income/(costs) (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Net finance income/(costs) | |
Schedule of net finance income/(costs) | Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 Interest payable on bank loans and overdrafts (245) (261) (583) (525) Interest payable on secured term loan facility and senior secured notes (4,345) (4,859) (9,455) (9,390) Interest payable on lease liabilities (note 15) (33) — (68) — Amortization of issue costs on secured term loan facility and senior secured notes (146) (165) (291) (321) Foreign exchange losses on retranslation of unhedged US dollar borrowings — (1,316) — (1,535) Unwinding of discount relating to registrations (192) (505) (1,169) (1,231) Fair value movement on derivative financial instruments: Embedded foreign exchange derivatives (425) (25) (346) 56 Total finance costs (5,386) (7,131) (11,912) (12,946) Interest receivable on short-term bank deposits 415 785 1,070 1,474 Foreign exchange gains on retranslation of unhedged US dollar borrowings 19,522 — 17,074 — Hedge ineffectiveness on cash flow hedges 707 — 588 — Total finance income 20,644 785 18,732 1,474 Net finance income/(costs) 15,258 (6,346) 6,820 (11,472) |
Income tax expense (Tables)
Income tax expense (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Income tax expense | |
Schedule of income tax expense | Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 Current tax Current tax on profit for the period (6,073) (1,953) (6,673) (2,603) Foreign tax (205) (292) (655) (403) Adjustment in respect of previous years (32) — (32) — Total current tax expense (6,310) (2,245) (7,360) (3,006) Deferred tax Origination and reversal of temporary differences (6,432) (8,633) (6,783) (9,974) Re-measurement of US deferred tax asset (3,996) — (3,996) — Total deferred tax expense (10,428) (8,633) (10,779) (9,974) Total income tax expense (16,738) (10,878) (18,139) (12,980) |
Schedule of amounts relating to tax recognized directly in other comprehensive income | Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 Current tax (529) (1,453) (932) (959) Deferred tax (note 18) 1,476 1,254 325 110 Total income tax credit/(expense) recognized in other comprehensive income 947 (199) (607) (849) |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Earnings per share | |
Schedule of earnings per share | Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 Profit for the period (£’000) 35,007 26,770 36,135 33,416 Basic earnings per share (pence) 21.27 16.27 21.96 20.31 Diluted earnings per share (pence) 21.25 16.26 21.94 20.29 |
Schedule of weighted average number of shares | Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 Number Number Number Number ‘000 ‘000 ‘000 ‘000 Class A ordinary shares (thousands) 40,573 40,526 40,573 40,526 Class B ordinary shares (thousands) 124,000 124,000 124,000 124,000 Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share 164,573 164,526 164,573 164,526 Adjustment for calculation of diluted earnings per share assumed conversion into Class A ordinary shares 173 137 164 137 Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share 164,746 164,663 164,737 164,663 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
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 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 Six months ended 31 December 2019 Opening net book amount 215,826 5,157 25,049 246,032 Additions — 1,384 12,380 13,764 Depreciation charge (1,631) (1,271) (3,371) (6,273) Closing net book amount 214,195 5,270 34,058 253,523 At 31 December 2019 Cost 268,981 36,229 77,186 382,396 Accumulated depreciation (54,786) (30,959) (43,128) (128,873) Net book amount 214,195 5,270 34,058 253,523 At 1 July 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 Six months ended 31 December 2018 Opening net book amount 219,335 4,169 21,897 245,401 Additions 23 1,308 5,893 7,224 Transfers (25) — 25 — Depreciation charge (1,638) (1,056) (3,021) (5,715) Closing net book amount 217,695 4,421 24,794 246,910 At 31 December 2018 Cost 269,365 36,098 63,718 369,181 Accumulated depreciation (51,670) (31,677) (38,924) (122,271) Net book amount 217,695 4,421 24,794 246,910 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Leases | |
Schedule of right-of-use assets | Right-of-use assets: 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 Property 5,056 — — Plant and machinery 112 — — Total 5,168 — — |
Schedule of lease liabilities | Lease liabilities: 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 Current 1,622 — — Non-current 3,626 — — Total lease liabilities 5,248 — — |
Schedule of amounts recognized in the consolidated statement of profit or loss | 31 December 31 December 2019 2018 £’000 £’000 Depreciation charge of right-of-use assets Property (765) — Plant and machinery (43) — (808) — Interest expense (included in finance cost) (68) — Expense relating to short-term leases (included in operating expenses) (351) — Expense relating to low value leases (included in operating expenses) (8) — |
Investment property (Table)
Investment property (Table) | 6 Months Ended |
Dec. 31, 2019 | |
Investment property | |
Schedule of investment property | Total £’000 At 1 July 2019 Cost 32,193 Accumulated depreciation and impairment (7,214) Net book amount 24,979 Six months ended 31 December 2019 Opening net book amount 24,979 Depreciation charge (187) Closing net book amount 24,792 At 31 December 2019 Cost 32,193 Accumulated depreciation and impairment (7,401) Net book amount 24,792 At 1 July 2018 Cost 19,769 Accumulated depreciation and impairment (5,933) Net book amount 13,836 Six months ended 31 December 2018 Opening net book amount 13,836 Depreciation charge (64) Closing net book amount 13,772 At 31 December 2018 Cost 19,769 Accumulated depreciation and impairment (5,997) Net book amount 13,772 |
Intangible assets (Tables)
Intangible assets (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Intangible assets. | |
Schedule of intangible assets | Other intangible Goodwill Registrations assets Total £’000 £’000 £’000 £’000 At 1 July 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 Six months ended 31 December 2019 Opening net book amount 421,453 338,762 8,642 768,857 Additions — 103,489 1,476 104,965 Disposals — (51,902) — (51,902) Amortization charge — (61,172) (2,272) (63,444) Closing net book amount 421,453 329,177 7,846 758,476 At 31 December 2019 Cost 421,453 772,089 14,076 1,207,618 Accumulated amortization — (442,912) (6,230) (449,142) Net book amount 421,453 329,177 7,846 758,476 At 1 July 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 Six months ended 31 December 2018 Opening net book amount 421,453 369,508 8,679 799,640 Additions — 14,461 1,871 16,332 Disposals — (7,929) — (7,929) Amortization charge — (66,947) (1,624) (68,571) Closing net book amount 421,453 309,093 8,926 739,472 At 31 December 2018 Cost 421,453 764,746 12,250 1,198,449 Accumulated amortization — (455,653) (3,324) (458,977) Net book amount 421,453 309,093 8,926 739,472 |
Deferred tax (Tables)
Deferred tax (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Deferred tax | |
Schedule of deferred taxes | The following is the analysis of the deferred tax balances (after allowable offset) for financial reporting purposes: 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 US deferred tax assets (53,862) (58,415) (57,636) UK deferred tax liabilities 37,766 31,865 33,302 Net deferred tax asset (16,096) (26,550) (24,334) The movements in the net deferred tax asset are as follows: 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 At the beginning of the period (26,550) (34,198) (34,198) Expensed to the statement of profit or loss (note 11) 10,779 8,112 9,974 Credited to other comprehensive income (note 11) (325) (634) (110) Expense relating to share-based payments (1) — 170 — At the end of the period (16,096) (26,550) (24,334) (1) 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 interim consolidated statement of changes in equity above. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Schedule of inventories | 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 Finished goods 2,535 2,130 2,610 |
Trade receivables (Tables)
Trade receivables (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Trade receivables. | |
Schedule of trade receivables | 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 Trade receivables 69,633 46,694 58,500 Less: provision for impairment of trade receivables (2,734) (12,954) (15,294) Net trade receivables 66,899 33,740 43,206 Less: non-current portion Trade receivables 40,586 9,889 10,387 Non-current trade receivables 40,586 9,889 10,387 Current trade receivables 26,313 23,851 32,819 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Derivative financial instruments | |
Schedule of derivative financial instruments | 31 December 2019 30 June 2019 31 December 2018 Assets Liabilities Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000 £’000 £’000 Used for hedging: Interest rate swaps — (2,317) — (2,298) 2,504 — At fair value through profit or loss: Embedded foreign exchange derivatives — (101) 245 — 680 — Forward foreign exchange contracts — (136) 97 — — — — (2,554) 342 (2,298) 3,184 — Less non-current portion: Used for hedging: Interest rate swaps — (2,317) — (2,298) 2,504 — At fair value through profit or loss: Embedded foreign exchange derivatives — — 30 — 55 — Forward foreign exchange contracts — (6) — — — — Non-current derivative financial instruments — (2,323) 30 (2,298) 2,559 — Current derivative financial instruments — (231) 312 — 625 — |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 Cash at bank and in hand 100,856 307,637 190,395 |
Share capital (Tables)
Share capital (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Share capital. | |
Schedule of share capital | Number of Ordinary shares shares (thousands) £’000 At 1 July 2018 164,526 53 Employee share-based compensation awards – issue of shares — — At 31 December 2018 164,526 53 Employee share-based compensation awards – issue of shares 45 — At 30 June 2019 164,571 53 Employee share-based compensation awards – issue of shares 2 — At 31 December 2019 164,573 53 |
Trade and other payables (Table
Trade and other payables (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Trade and other payables | |
Schedule of trade and other payables | 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 Trade payables 106,394 196,644 135,328 Other payables 2,807 4,689 3,559 Accrued expenses 63,984 94,381 77,061 Social security and other taxes 10,149 13,855 11,284 183,334 309,569 227,232 Less: non-current portion Trade payables 29,738 77,438 44,667 Other payables 1,503 1,745 1,977 Non-current trade and other payables 31,241 79,183 46,644 Current trade and other payables 152,093 230,386 180,588 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Borrowings | |
Schedule of borrowings | 31 December 30 June 31 December 2019 2019 2018 £’000 £’000 £’000 Senior secured notes 318,738 330,757 328,696 Secured term loan facility 168,114 175,022 173,880 Accrued interest on senior secured notes 5,288 5,453 5,492 492,140 511,232 508,068 Less: non-current portion Senior secured notes 318,738 330,757 328,696 Secured term loan facility 168,114 175,022 173,880 Non-current borrowings 486,852 505,779 502,576 Current borrowings 5,288 5,453 5,492 |
Cash (used in)_generated from_2
Cash (used in)/generated from operations (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Cash (used in)/generated from operations | |
Schedule of cash generated from operations | Three months ended Six months ended 31 December 31 December 2019 2018 2019 2018 £’000 £’000 £’000 £’000 Profit before income tax 51,745 37,648 54,274 46,396 Adjustments for: Depreciation 3,626 2,970 7,268 5,779 Amortization 31,257 33,440 63,444 68,571 Loss/(profit) on disposal of intangible assets 715 4,349 (11,302) (18,079) Net finance (income)/costs (15,258) 6,346 (6,820) 11,472 Non-cash employee benefit expense - equity-settled share-based payments 227 161 365 371 Foreign exchange losses/(gains) on operating activities 87 (95) (286) 182 Reclassified from hedging reserve 2,957 1,536 5,811 2,844 Changes in working capital: Inventories 129 56 (405) (1,194) Prepayments 2,171 2,336 (181) 542 Contract assets – accrued revenue (38,165) (33,643) (38,566) (41,478) Trade receivables 6,160 2,442 8,504 81,719 Other receivables 14,655 (1,438) 574 (1,490) Contract liabilities – deferred revenue (66,449) (97,181) (56,318) (54,983) Trade and other payables (7,690) 54 (44,801) (18,315) Cash (used in)/generated from operations (13,833) (41,019) (18,439) 82,337 |
Financial risk management (Tabl
Financial risk management (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Financial risk management | |
Schedule of net borrowings being hedged at balance sheet date | 31 December 30 June 31 December 2019 2019 2018 $’000 $’000 $’000 USD borrowings 650,000 650,000 650,000 Hedged USD cash (58,892) (308,838) (210,400) Net USD debt 591,108 341,162 439,600 Hedged future USD revenues (199,137) (211,153) (338,046) Unhedged USD borrowings 391,971 130,009 101,554 Closing USD exchange rate ($: £) 1.3200 1.2718 1.2790 |
Schedule of interest rate swaps at reporting date that are used to hedge borrowings | 31 December 30 June 31 December 2019 2019 2018 Principal value of loan outstanding ($’000) 150,000 150,000 150,000 Rate received 1 month $ LIBOR 1 month $ LIBOR 1 month $ LIBOR Rate paid Fixed 2.032 % Fixed 2.032 % Fixed 2.032 % Expiry date 30 June 2024 30 June 2024 30 June 2024 |
Contingent liabilities and co_2
Contingent liabilities and contingent assets (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Contingent liabilities and contingent assets | |
Schedule of potential amount payable by type of condition and category of player | First team squad Other Total Type of condition £’000 £’000 £’000 MUFC appearances/team success/new contract 20,066 9,890 29,956 International appearances 11,102 — 11,102 Other 18,535 618 19,153 49,703 10,508 60,211 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Subsidiaries | |
Schedule of subsidiary undertakings | % of ownership Subsidiaries 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 Dormant 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. |
Accounting policies - Leases (D
Accounting policies - Leases (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases | ||||||
Incremental borrowing rate (as a percent) | 2.22% | |||||
Right-of-use assets | £ 5,168 | £ 5,168 | ||||
Lease liability recognized as at 1 July 2019 | 5,248 | 5,248 | ||||
Operating profit | 36,487 | £ 43,994 | 47,454 | £ 57,868 | ||
Profit before tax | £ 51,745 | £ 37,648 | £ 54,274 | £ 46,396 | ||
Increase (decrease) due to adoption of IFRS 16 | ||||||
Leases | ||||||
Right-of-use assets | £ 6,000 | |||||
Operating lease commitments disclosed as at 30 June 2019 | 8,087 | |||||
Discounted using the Group's incremental borrowing rate as at 1 July 2019 | 6,246 | |||||
Less short term leases not recognized as a liability | (270) | |||||
Lease liability recognized as at 1 July 2019 | £ 5,976 | |||||
Increase (decrease) due to adoption of IFRS 16 | Forecast | ||||||
Leases | ||||||
Operating profit | £ 100 | |||||
Profit before tax | £ (100) |
Seasonality of revenue (Details
Seasonality of revenue (Details) - adidas £ in Millions | Aug. 01, 2015GBP (£)item |
Information about adidas agreement | |
Number of consecutive seasons of non-participation in Champions League that would impact guarantee payable by adidas | item | 2 |
Term of agreement (in years) | 10 years |
Minimum guarantee payable by parties under agreement | £ 750 |
Maximum increase in guarantee payable per year | £ 4 |
Maximum possible percentage of reduction in guarantee per year | 30.00% |
Revenue from contracts with c_3
Revenue from contracts with customers - Disaggregation of revenue from contract with customers (Details) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019GBP (£) | Dec. 31, 2018GBP (£) | Dec. 31, 2019GBP (£)componentsegment | Dec. 31, 2018GBP (£) | |
Revenue from contracts with customers | ||||
Number of material segments | segment | 1 | |||
Number of main components of revenue | component | 3 | |||
Revenue from contracts with customers | £ 168,455 | £ 208,612 | £ 303,826 | £ 343,638 |
Commercial | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | 70,660 | 65,944 | 151,055 | 141,844 |
Sponsorship | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | 45,147 | 40,300 | 98,777 | 89,916 |
Retail, merchandising, apparel & product licensing | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | 25,513 | 25,644 | 52,278 | 51,928 |
Broadcasting | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | 64,697 | 103,676 | 97,573 | 146,518 |
Domestic competitions | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | 50,440 | 50,128 | 78,327 | 79,005 |
European competitions | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | 11,935 | 50,918 | 14,949 | 62,212 |
Other | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | 2,322 | 2,630 | 4,297 | 5,301 |
Matchday | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | £ 33,098 | £ 38,992 | £ 55,198 | £ 55,276 |
Revenue from contracts with c_4
Revenue from contracts with customers - Assets and liabilities related to contracts with customers (Details) - GBP (£) £ in Thousands | 6 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue from contracts with customers | |||
Contract liabilities - deferred revenue at beginning of period | £ (223,500) | £ (162,614) | £ (217,597) |
Recognized in revenue during the period | 125,635 | 128,956 | 112,215 |
Cash received/amounts invoiced during the period | (69,317) | (189,842) | (57,232) |
Contract liabilities - deferred revenue at end of period | (167,182) | (223,500) | (162,614) |
Current contract assets and contract liabilities | |||
Revenue from contracts with customers | |||
Contract assets - accrued revenue at beginning of period | 39,532 | 79,496 | 38,018 |
Recognized in revenue during the period | 74,877 | 37,778 | 74,034 |
Cash received/amounts invoiced during the period | (36,311) | (77,742) | (32,556) |
Contract assets - accrued revenue at end of period | 78,098 | 39,532 | 79,496 |
Contract liabilities - deferred revenue at beginning of period | (190,146) | (129,662) | (180,512) |
Recognized in revenue during the period | 125,635 | 128,956 | 112,215 |
Cash received/amounts invoiced during the period | (69,317) | (168,025) | (56,519) |
Reclassified to current during the period | (9,749) | (21,415) | (4,846) |
Contract liabilities - deferred revenue at end of period | (143,577) | (190,146) | (129,662) |
Non-current contract assets and contract liabilities | |||
Revenue from contracts with customers | |||
Contract liabilities - deferred revenue at beginning of period | (33,354) | (32,952) | (37,085) |
Cash received/amounts invoiced during the period | (21,817) | (713) | |
Reclassified to current during the period | 9,749 | 21,415 | 4,846 |
Contract liabilities - deferred revenue at end of period | £ (23,605) | £ (33,354) | £ (32,952) |
Operating expenses (Details)
Operating expenses (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating expenses | ||||
Employee benefits expenses | £ (70,965) | £ (77,903) | £ (141,175) | £ (154,946) |
Depreciation - property, plant and equipment (note 14) | (3,133) | (2,938) | (6,273) | (5,715) |
Depreciation - right-of-use assets (note 15) | (404) | (808) | ||
Depreciation - investment property (note 16) | (89) | (32) | (187) | (64) |
Amortization (note 17) | (31,257) | (33,440) | (63,444) | (68,571) |
Other operating expenses | (25,405) | (26,357) | (55,787) | (54,954) |
Exceptional items (note 8) | (19,599) | (19,599) | ||
Total operating expenses | £ (131,253) | £ (160,269) | £ (267,674) | £ (303,849) |
Exceptional items (Details)
Exceptional items (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Exceptional items | ||
Compensation paid for loss of office | £ (19,599) | £ (19,599) |
Total exceptional items | £ (19,599) | £ (19,599) |
(Loss)_Profit on disposal of _3
(Loss)/Profit on disposal of intangible assets (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
(Loss)/profit on disposal of intangible assets | ||||
(Loss)/Profit on disposal of registrations | £ (1,531) | £ (4,508) | £ 10,214 | £ 17,841 |
Player loan income | 816 | 159 | 1,088 | 238 |
Total (loss)/profit on disposal of intangible assets | £ (715) | £ (4,349) | £ 11,302 | £ 18,079 |
Net finance income_(costs) (Det
Net finance income/(costs) (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net finance income/(costs) | ||||
Interest payable on bank loans and overdrafts | £ (245) | £ (261) | £ (583) | £ (525) |
Interest payable on secured term loan facility and senior secured notes | (4,345) | (4,859) | (9,455) | (9,390) |
Interest payable on lease liabilities (note 15) | (33) | (68) | ||
Amortization of issue costs on secured term loan facility and senior secured notes | (146) | (165) | (291) | (321) |
Foreign exchange losses on retranslation of unhedged US dollar borrowings | (1,316) | (1,535) | ||
Unwinding of discount relating to registrations | (192) | (505) | (1,169) | (1,231) |
Fair value movements on derivative financial instruments: | ||||
Embedded foreign exchange derivatives | (425) | (25) | (346) | 56 |
Total finance costs | (5,386) | (7,131) | (11,912) | (12,946) |
Interest receivable on short-term bank deposits | 415 | 785 | 1,070 | 1,474 |
Foreign exchange gains on retranslation of unhedged US dollar borrowings | 19,522 | 17,074 | ||
Hedge ineffectiveness on cash flow hedges | 707 | 588 | ||
Total finance income | 20,644 | 785 | 18,732 | 1,474 |
Net finance income/(costs) | £ 15,258 | £ (6,346) | £ 6,820 | £ (11,472) |
Income tax expense - Current ta
Income tax expense - Current tax and Deferred tax (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | |
Current tax: | ||||||
Total current tax expense | £ (6,310) | £ (2,245) | £ (7,360) | £ (3,006) | ||
Deferred tax: | ||||||
Origination and reversal of temporary differences | (6,432) | (8,633) | (6,783) | (9,974) | ||
Re-measurement of US deferred tax asset | (3,996) | (3,996) | ||||
Total deferred tax expense | (10,428) | (8,633) | (10,779) | (9,974) | £ (8,112) | |
Total tax expense | ||||||
Total income tax expense | (16,738) | (10,878) | (18,139) | (12,980) | ||
Corporate tax rate | 28.20% | |||||
Forecast | ||||||
Total tax expense | ||||||
Corporate tax rate | 32.58% | |||||
UK and US | ||||||
Current tax: | ||||||
Current tax on profit for the period | (6,073) | (1,953) | (6,673) | (2,603) | ||
Adjustment in respect of previous years | (32) | (32) | ||||
Other than UK and US | ||||||
Current tax: | ||||||
Current tax on profit for the period | £ (205) | £ (292) | £ (655) | £ (403) |
Income tax expense - Additional
Income tax expense - Additional information related to tax (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Income tax expense | |||||
Current tax | £ (529) | £ (1,453) | £ (932) | £ (959) | |
Deferred tax (note 18) | 1,476 | 1,254 | 325 | 110 | £ 634 |
Total income tax credit/(expense) recognized in other comprehensive income | £ 947 | £ (199) | £ (607) | £ (849) |
Earnings per share (Details)
Earnings per share (Details) £ / shares in Units, £ in Thousands, shares in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2019GBP (£)£ / sharesitemshares | Dec. 31, 2018GBP (£)£ / sharesshares | Dec. 31, 2019GBP (£)£ / sharesitemshares | Jun. 30, 2019GBP (£) | Dec. 31, 2018GBP (£)£ / sharesshares | |
Earnings per share | |||||
Profit for the period | £ | £ 35,007 | £ 26,770 | £ 36,135 | £ (14,535) | £ 33,416 |
Basic earnings per share | £ / shares | £ 0.2127 | £ 0.1627 | £ 0.2196 | £ 0.2031 | |
Diluted earnings per share | £ / shares | £ 0.2125 | £ 0.1626 | £ 0.2194 | £ 0.2029 | |
Number of categories of dilutive potential ordinary shares | item | 1 | 1 | |||
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share | 164,573 | 164,526 | 164,573 | 164,526 | |
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share | 164,746 | 164,663 | 164,737 | 164,663 | |
Class A ordinary shares | |||||
Earnings per share | |||||
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share | 40,573 | 40,526 | 40,573 | 40,526 | |
Adjustment for assumed conversion into Class A ordinary shares | 173 | 137 | 164 | 137 | |
Class B ordinary shares | |||||
Earnings per share | |||||
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share | 124,000 | 124,000 | 124,000 | 124,000 |
Dividends (Details)
Dividends (Details) | Jun. 03, 2020$ / shares | Jan. 06, 2020USD ($)$ / shares | Jan. 06, 2020GBP (£) | Dec. 31, 2019GBP (£) | Jun. 30, 2019GBP (£) | Dec. 31, 2018GBP (£) |
Disclosure of classes of share capital | ||||||
Dividends paid | £ | £ 0 | £ 23,326,000 | £ 0 | |||
Dividends paid before financial statements authorised for issue but not recognised as distribution to owners | $ 14,812,000 | £ 11,323,000 | ||||
Dividends paid before financial statements authorised for issue but not recognised as distribution to owners per share | $ 0.09 | |||||
Forecast | ||||||
Disclosure of classes of share capital | ||||||
Dividends paid per share | $ 0.09 |
Property, plant and equipment_2
Property, plant and equipment (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | £ 246,032 | £ 245,401 | ||
Additions | 13,764 | 7,224 | ||
Depreciation charge | £ (3,133) | £ (2,938) | (6,273) | (5,715) |
Closing amount | 253,523 | 246,910 | 253,523 | 246,910 |
Cost / gross value | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | 368,632 | 361,957 | ||
Closing amount | 382,396 | 369,181 | 382,396 | 369,181 |
Accumulated depreciation, amortization and impairment | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | (122,600) | (116,556) | ||
Closing amount | (128,873) | (122,271) | (128,873) | (122,271) |
Property | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | 215,826 | 219,335 | ||
Additions | 23 | |||
Transfers | (25) | |||
Depreciation charge | (1,631) | (1,638) | ||
Closing amount | 214,195 | 217,695 | 214,195 | 217,695 |
Property | Cost / gross value | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | 268,981 | 269,367 | ||
Closing amount | 268,981 | 269,365 | 268,981 | 269,365 |
Property | Accumulated depreciation, amortization and impairment | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | (53,155) | (50,032) | ||
Closing amount | (54,786) | (51,670) | (54,786) | (51,670) |
Plant and machinery | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | 5,157 | 4,169 | ||
Additions | 1,384 | 1,308 | ||
Depreciation charge | (1,271) | (1,056) | ||
Closing amount | 5,270 | 4,421 | 5,270 | 4,421 |
Plant and machinery | Cost / gross value | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | 34,845 | 34,790 | ||
Closing amount | 36,229 | 36,098 | 36,229 | 36,098 |
Plant and machinery | Accumulated depreciation, amortization and impairment | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | (29,688) | (30,621) | ||
Closing amount | (30,959) | (31,677) | (30,959) | (31,677) |
Fixtures and fittings | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | 25,049 | 21,897 | ||
Additions | 12,380 | 5,893 | ||
Transfers | 25 | |||
Depreciation charge | (3,371) | (3,021) | ||
Closing amount | 34,058 | 24,794 | 34,058 | 24,794 |
Fixtures and fittings | Cost / gross value | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | 64,806 | 57,800 | ||
Closing amount | 77,186 | 63,718 | 77,186 | 63,718 |
Fixtures and fittings | Accumulated depreciation, amortization and impairment | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | (39,757) | (35,903) | ||
Closing amount | £ (43,128) | £ (38,924) | £ (43,128) | £ (38,924) |
Leases - Amounts recognized in
Leases - Amounts recognized in the consolidated balance sheet (Details) | 3 Months Ended | 6 Months Ended |
Dec. 31, 2019GBP (£) | Dec. 31, 2019GBP (£) | |
Leases | ||
Right-of-use assets | £ 5,168,000 | £ 5,168,000 |
Additions to right-of-use assets | 0 | 0 |
Lease liabilities: | ||
Current | 1,622,000 | 1,622,000 |
Non-current | 3,626,000 | 3,626,000 |
Total lease liabilities | 5,248,000 | 5,248,000 |
Total cash outflow for leases | 398,000 | 796,000 |
Property | ||
Leases | ||
Right-of-use assets | 5,056,000 | 5,056,000 |
Plant and machinery | ||
Leases | ||
Right-of-use assets | £ 112,000 | £ 112,000 |
Leases - Amounts recognized i_2
Leases - Amounts recognized in the consolidated statement of profit or loss (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Leases | ||
Depreciation - right-of-use assets | £ (404) | £ (808) |
Interest expense (included in finance cost) | £ (33) | (68) |
Expense relating to short-term leases (included in operating expenses) | (351) | |
Expense relating to low value leases (included in operating expenses) | (8) | |
Property | ||
Leases | ||
Depreciation - right-of-use assets | (765) | |
Plant and machinery | ||
Leases | ||
Depreciation - right-of-use assets | £ (43) |
Investment property (Details)
Investment property (Details) - GBP (£) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment property | ||||
Opening amount | £ 24,979,000 | £ 13,836,000 | ||
Depreciation charge | £ (89,000) | £ (32,000) | (187,000) | (64,000) |
Closing amount | 24,792,000 | 13,772,000 | 24,792,000 | 13,772,000 |
Cost / gross value | ||||
Investment property | ||||
Opening amount | 32,193,000 | 19,769,000 | ||
Closing amount | 32,193,000 | 19,769,000 | 32,193,000 | 19,769,000 |
Accumulated depreciation, amortization and impairment | ||||
Investment property | ||||
Opening amount | (7,214,000) | (5,933,000) | ||
Closing amount | £ (7,401,000) | £ (5,997,000) | (7,401,000) | £ (5,997,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Investment property | ||||
Opening amount | £ 27,633,000 |
Intangible assets - Reconciliat
Intangible assets - Reconciliation of intangible assets (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of intangible assets | ||||
Opening net book amount | £ 768,857 | £ 799,640 | ||
Additions | 104,965 | 16,332 | ||
Disposals | (51,902) | (7,929) | ||
Amortization charge | £ (31,257) | £ (33,440) | (63,444) | (68,571) |
Closing net book amount | 758,476 | 739,472 | 758,476 | 739,472 |
Cost / gross value | ||||
Reconciliation of intangible assets | ||||
Opening net book amount | 1,207,745 | 1,217,426 | ||
Closing net book amount | 1,207,618 | 1,198,449 | 1,207,618 | 1,198,449 |
Accumulated depreciation, amortization and impairment | ||||
Reconciliation of intangible assets | ||||
Opening net book amount | (438,888) | (417,786) | ||
Closing net book amount | (449,142) | (458,977) | (449,142) | (458,977) |
Goodwill | ||||
Reconciliation of intangible assets | ||||
Opening net book amount | 421,453 | 421,453 | ||
Closing net book amount | 421,453 | 421,453 | 421,453 | 421,453 |
Goodwill | Cost / gross value | ||||
Reconciliation of intangible assets | ||||
Opening net book amount | 421,453 | 421,453 | ||
Closing net book amount | 421,453 | 421,453 | 421,453 | 421,453 |
Registrations | ||||
Reconciliation of intangible assets | ||||
Opening net book amount | 338,762 | 369,508 | ||
Additions | 103,489 | 14,461 | ||
Disposals | (51,902) | (7,929) | ||
Amortization charge | (61,172) | (66,947) | ||
Closing net book amount | 329,177 | 309,093 | 329,177 | 309,093 |
Registrations | Cost / gross value | ||||
Reconciliation of intangible assets | ||||
Opening net book amount | 772,328 | 785,594 | ||
Closing net book amount | 772,089 | 764,746 | 772,089 | 764,746 |
Registrations | Accumulated depreciation, amortization and impairment | ||||
Reconciliation of intangible assets | ||||
Opening net book amount | (433,566) | (416,086) | ||
Closing net book amount | (442,912) | (455,653) | (442,912) | (455,653) |
Other intangible assets | ||||
Reconciliation of intangible assets | ||||
Opening net book amount | 8,642 | 8,679 | ||
Additions | 1,476 | 1,871 | ||
Amortization charge | (2,272) | (1,624) | ||
Closing net book amount | 7,846 | 8,926 | 7,846 | 8,926 |
Other intangible assets | Cost / gross value | ||||
Reconciliation of intangible assets | ||||
Opening net book amount | 13,964 | 10,379 | ||
Closing net book amount | 14,076 | 12,250 | 14,076 | 12,250 |
Other intangible assets | Accumulated depreciation, amortization and impairment | ||||
Reconciliation of intangible assets | ||||
Opening net book amount | (5,322) | (1,700) | ||
Closing net book amount | £ (6,230) | £ (3,324) | £ (6,230) | £ (3,324) |
Intangible assets - Other intan
Intangible assets - Other intangible assets (Details) - GBP (£) | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Intangible assets | ||||
Intangible assets and goodwill | £ 758,476,000 | £ 768,857,000 | £ 739,472,000 | £ 799,640,000 |
Cost / gross value | ||||
Intangible assets | ||||
Intangible assets and goodwill | 1,207,618,000 | 1,207,745,000 | 1,198,449,000 | 1,217,426,000 |
Accumulated depreciation, amortization and impairment | ||||
Intangible assets | ||||
Intangible assets and goodwill | (449,142,000) | (438,888,000) | (458,977,000) | (417,786,000) |
Other intangible assets | ||||
Intangible assets | ||||
Intangible assets and goodwill | 7,846,000 | 8,642,000 | 8,926,000 | 8,679,000 |
Other intangible assets | Cost / gross value | ||||
Intangible assets | ||||
Intangible assets and goodwill | 14,076,000 | 13,964,000 | 12,250,000 | 10,379,000 |
Other intangible assets | Cost / gross value | Internally generated | ||||
Intangible assets | ||||
Intangible assets and goodwill | 2,076,000 | 1,559,000 | ||
Other intangible assets | Accumulated depreciation, amortization and impairment | ||||
Intangible assets | ||||
Intangible assets and goodwill | (6,230,000) | £ (5,322,000) | (3,324,000) | £ (1,700,000) |
Other intangible assets | Accumulated depreciation, amortization and impairment | Internally generated | ||||
Intangible assets | ||||
Intangible assets and goodwill | £ (1,065,000) | £ (275,000) |
Deferred tax - Analysis of the
Deferred tax - Analysis of the deferred tax (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Analysis of deferred tax | ||||
Deferred tax assets | £ (53,862) | £ (58,415) | £ (57,636) | |
Deferred tax liabilities | 37,766 | 31,865 | 33,302 | |
Net deferred tax asset | (16,096) | (26,550) | (24,334) | £ (34,198) |
US | ||||
Analysis of deferred tax | ||||
Deferred tax assets | (53,862) | (58,415) | (57,636) | |
UK | ||||
Analysis of deferred tax | ||||
Deferred tax liabilities | £ 37,766 | £ 31,865 | £ 33,302 |
Deferred tax - Movements in net
Deferred tax - Movements in net deferred tax asset (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Movements in net deferred tax asset | |||||
Net deferred tax asset at beginning of period | £ (26,550) | £ (34,198) | £ (34,198) | ||
Expensed to the statement of profit or loss (note 11) | £ 10,428 | £ 8,633 | 10,779 | 9,974 | 8,112 |
Credited to other comprehensive income (note 11) | (1,476) | (1,254) | (325) | (110) | (634) |
Expense relating to share-based payments | 170 | ||||
Net deferred tax asset at end of period | £ (16,096) | £ (24,334) | £ (16,096) | £ (24,334) | £ (26,550) |
Inventories (Details)
Inventories (Details) - GBP (£) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Inventories | |||
Finished goods | £ 2,535,000 | £ 2,610,000 | £ 2,130,000 |
Cost of inventory recognized during the period | £ 4,888,000 | £ 4,769,000 | £ 8,664,000 |
Trade receivables (Details)
Trade receivables (Details) - GBP (£) | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Trade receivables | |||
Trade receivables | £ 66,899,000 | £ 33,740,000 | £ 43,206,000 |
Less: non-current portion | |||
Trade receivables | 40,586,000 | 9,889,000 | 10,387,000 |
Non-current trade receivables | 40,586,000 | 9,889,000 | 10,387,000 |
Current trade receivables | 26,313,000 | 23,851,000 | 32,819,000 |
Transfer fees receivable | 56,843,000 | 18,270,000 | 27,865,000 |
Deferred revenue contractually payable to Group | 4,255,000 | 12,725,000 | 7,474,000 |
Due after 1 year | |||
Less: non-current portion | |||
Transfer fees receivable | 40,586,000 | 9,889,000 | 10,387,000 |
Cost / gross value | |||
Trade receivables | |||
Trade receivables | 69,633,000 | 46,694,000 | 58,500,000 |
Accumulated impairment | |||
Trade receivables | |||
Trade receivables | (2,734,000) | (12,954,000) | (15,294,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed | |||
Trade receivables | |||
Trade receivables | £ 69,864,000 | £ 34,259,000 | £ 44,106,000 |
Derivative financial instrume_3
Derivative financial instruments (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments | |||
Derivative financial instruments, assets | £ 342 | £ 3,184 | |
Derivative financial instruments, liabilities | £ (2,554) | (2,298) | |
Derivative financial instruments, non-current assets | 30 | 2,559 | |
Derivative financial instruments, non-current liabilities | (2,323) | (2,298) | |
Derivative financial instruments, current assets | 312 | 625 | |
Derivative financial instruments, current liabilities | (231) | ||
Interest rate swap | Derivatives used for hedging: | |||
Disclosure of detailed information about financial instruments | |||
Derivative financial instruments, assets | 2,504 | ||
Derivative financial instruments, non-current assets | 2,504 | ||
Embedded foreign exchange derivatives | At fair value through profit and loss | |||
Disclosure of detailed information about financial instruments | |||
Derivative financial instruments, assets | 245 | 680 | |
Derivative financial instruments, non-current assets | 30 | £ 55 | |
Forward foreign currency contracts | At fair value through profit and loss | |||
Disclosure of detailed information about financial instruments | |||
Derivative financial instruments, assets | 97 | ||
Interest rate swap | Derivatives used for hedging: | |||
Disclosure of detailed information about financial instruments | |||
Derivative financial instruments, liabilities | (2,317) | (2,298) | |
Derivative financial instruments, non-current liabilities | (2,317) | £ (2,298) | |
Embedded foreign exchange derivatives | At fair value through profit and loss: | |||
Disclosure of detailed information about financial instruments | |||
Derivative financial instruments, liabilities | (101) | ||
Forward foreign currency contracts | At fair value through profit and loss: | |||
Disclosure of detailed information about financial instruments | |||
Derivative financial instruments, liabilities | (136) | ||
Derivative financial instruments, non-current liabilities | £ (6) |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | |||
Cash at bank and in hand | £ 100,856 | £ 307,637 | £ 190,395 |
Share capital (Details)
Share capital (Details) £ in Thousands | 6 Months Ended | ||
Dec. 31, 2019GBP (£)Voteitemshares | Jun. 30, 2019GBP (£)shares | Dec. 31, 2018GBP (£)shares | |
Ordinary shares | |||
Balance at the beginning | £ | £ 53 | £ 53 | |
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) | 164,571,000 | 164,526,000 | 164,526,000 |
Employee share-based compensation awards - issue of shares (in shares) | 2,000 | 45,000 | 0 |
Balance at the end (in shares) | 164,573,000 | 164,571,000 | 164,526,000 |
Ordinary shares | |||
Balance at the beginning | £ | £ 53 | £ 53 | £ 53 |
Employee share-based compensation awards - issue of shares | £ | 0 | 0 | 0 |
Balance at the end | £ | £ 53 | £ 53 | £ 53 |
Class A ordinary shares | |||
Ordinary shares | |||
Number of voting right per share | Vote | 1 | ||
Number of shares issued | 40,572,687 | ||
Class B ordinary shares | |||
Ordinary shares | |||
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 (£) | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Trade and other payables | |||
Trade payables | £ 106,394,000 | £ 196,644,000 | £ 135,328,000 |
Other payables | 2,807,000 | 4,689,000 | 3,559,000 |
Accrued expenses | 63,984,000 | 94,381,000 | 77,061,000 |
Social security and other taxes | 10,149,000 | 13,855,000 | 11,284,000 |
Total trade and other payables | 183,334,000 | 309,569,000 | 227,232,000 |
Less: non-current portion | |||
Trade payables | 29,738,000 | 77,438,000 | 44,667,000 |
Other payables | 1,503,000 | 1,745,000 | 1,977,000 |
Non-current trade and other payables | 31,241,000 | 79,183,000 | 46,644,000 |
Current trade and other payables | 152,093,000 | 230,386,000 | 180,588,000 |
Transfer fees and other associated costs | 97,884,000 | 187,544,000 | 128,554,000 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | |||
Trade and other payables | |||
Trade payables | 108,538,000 | 199,922,000 | 138,276,000 |
Due after 1 year | |||
Less: non-current portion | |||
Transfer fees and other associated costs | 29,738,000 | 77,438,000 | 44,667,000 |
Between 1 and 2 years | |||
Less: non-current portion | |||
Transfer fees and other associated costs | 13,889,000 | 59,889,000 | 32,336,000 |
Between 2 and 5 years | |||
Less: non-current portion | |||
Transfer fees and other associated costs | £ 15,849,000 | £ 17,549,000 | £ 12,331,000 |
Borrowings (Details)
Borrowings (Details) | 6 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2019GBP (£) | Jun. 30, 2019GBP (£) | Dec. 31, 2019USD ($) | Dec. 31, 2019GBP (£) | Jun. 30, 2019USD ($) | Jun. 30, 2019GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | |
Disclosure of detailed information about borrowings | ||||||||
Total borrowings | £ 492,140,000 | £ 511,232,000 | £ 508,068,000 | |||||
Non-current borrowings | 486,852,000 | 505,779,000 | 502,576,000 | |||||
Current borrowings | 5,288,000 | 5,453,000 | 5,492,000 | |||||
Senior secured notes | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Total borrowings | 318,738,000 | 330,757,000 | 328,696,000 | |||||
Non-current borrowings | 318,738,000 | 330,757,000 | 328,696,000 | |||||
Unamortized issue costs on borrowings | 3,231,000 | 3,414,000 | 3,594,000 | |||||
Principal amount / Notional amount | $ | $ 425,000,000 | $ 425,000,000 | $ 425,000,000 | |||||
Secured term loan facility | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Total borrowings | 168,114,000 | 175,022,000 | 173,880,000 | |||||
Non-current borrowings | 168,114,000 | 175,022,000 | 173,880,000 | |||||
Unamortized issue costs on borrowings | 2,342,000 | 1,894,000 | 2,040,000 | |||||
Principal amount / Notional amount | $ | $ 225,000,000 | $ 225,000,000 | $ 225,000,000 | |||||
Accrued interest on senior secured notes | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Total borrowings | 5,288,000 | £ 5,453,000 | £ 5,492,000 | |||||
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 | Undrawn committed revolving borrowing facility | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Borrowings, interest rate basis | LIBOR or EURIBOR | |||||||
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 | 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 (used in)_generated from_3
Cash (used in)/generated from operations (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash (used in)/generated from operations | ||||
Profit before income tax | £ 51,745 | £ 37,648 | £ 54,274 | £ 46,396 |
Depreciation | 3,626 | 2,970 | 7,268 | 5,779 |
Amortization | 31,257 | 33,440 | 63,444 | 68,571 |
Loss/(profit) on disposal of intangible assets | 715 | 4,349 | (11,302) | (18,079) |
Net finance (income)/costs | (15,258) | 6,346 | (6,820) | 11,472 |
Non-cash employee benefit expense - equity-settled share-based payments | 227 | 161 | 365 | 371 |
Foreign exchange losses/(gains) on operating activities | 87 | (95) | (286) | 182 |
Reclassified from hedging reserve | 2,957 | 1,536 | 5,811 | 2,844 |
Changes in working capital: | ||||
Inventories | 129 | 56 | (405) | (1,194) |
Prepayments | 2,171 | 2,336 | (181) | 542 |
Contract assets - accrued revenue | (38,165) | (33,643) | (38,566) | (41,478) |
Trade receivables | 6,160 | 2,442 | 8,504 | 81,719 |
Other receivables | 14,655 | (1,438) | 574 | (1,490) |
Contract liabilities - deferred revenue | (66,449) | (97,181) | (56,318) | (54,983) |
Trade and other payables | (7,690) | 54 | (44,801) | (18,315) |
Cash (used in)/generated from operations | £ (13,833) | £ (41,019) | £ (18,439) | £ 82,337 |
Pension arrangements (Details)
Pension arrangements (Details) - Football League Pension and Life Assurance Scheme | Sep. 01, 2020 | Dec. 31, 2019GBP (£)item | Jun. 30, 2019GBP (£) | Dec. 31, 2018GBP (£) | Aug. 31, 2017GBP (£) |
Pension arrangements | |||||
Number of participating employers | item | 92 | ||||
Total deficit on actuarial valuation | £ 30,400,000 | ||||
Contribution to current accrual of benefits | £ 0 | ||||
Total contributions paid by Group based on actuarial valuation | 482,000 | ||||
Percentage of increase in contributions | 5.00% | ||||
Present value of outstanding contributions to pension arrangements | 1,977,000 | ||||
Less than 1 year | |||||
Pension arrangements | |||||
Present value of outstanding contributions to pension arrangements | 474,000 | £ 459,000 | £ 446,000 | ||
Due after 1 year | |||||
Pension arrangements | |||||
Present value of outstanding contributions to pension arrangements | £ 1,503,000 | £ 1,745,000 | £ 1,977,000 |
Financial risk management - Hed
Financial risk management - Hedging activities (Details) $ in Thousands | Dec. 31, 2019USD ($)$ / £ | Jun. 30, 2019USD ($)$ / £ | Dec. 31, 2018USD ($)$ / £ |
Financial risk management activities | |||
Closing exchange rate | $ / £ | 1.3200 | 1.2718 | 1.2790 |
US dollar | |||
Financial risk management activities | |||
Net debt | $ 591,108 | $ 341,162 | $ 439,600 |
Hedged future USD revenues | (199,137) | (211,153) | (338,046) |
Unhedged USD borrowings | 391,971 | 130,009 | 101,554 |
Borrowings | US dollar | |||
Financial risk management activities | |||
Net debt | 650,000 | 650,000 | 650,000 |
Cash and cash equivalents | US dollar | |||
Financial risk management activities | |||
Net debt | $ (58,892) | $ (308,838) | $ (210,400) |
Financial risk management - Swa
Financial risk management - Swaps (Details) - Interest rate swap $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Dec. 31, 2018GBP (£)USD ($) | Dec. 31, 2019GBP (£)USD ($) | Jun. 30, 2019GBP (£)USD ($) | |
Financial risk management activities | |||
Fair value of interest rate swaps, asset | £ 2,504,000 | ||
Fair value of interest rate swaps, liability | £ 2,317,000 | £ 2,298,000 | |
Long position | |||
Financial risk management activities | |||
Principal value of loan outstanding | $ | 150,000 | 150,000 | 150,000 |
Rate received | 1 month $ LIBOR | 1 month $ LIBOR | 1 month $ LIBOR |
Rate paid | 2.032% | 2.032% | 2.032% |
Contingent liabilities and co_3
Contingent liabilities and contingent assets (Details) - GBP (£) | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Transfer fees | |||
Additional fees payable, first team squad | £ 49,703,000 | ||
Additional fees payable, other | 10,508,000 | ||
Additional fees payable | 60,211,000 | £ 74,321,000 | £ 66,184,000 |
Probable effect of contingent assets | 4,046,000 | £ 707,000 | £ 2,063,000 |
MUFC appearances/team success/new contract | |||
Transfer fees | |||
Additional fees payable, first team squad | 20,066,000 | ||
Additional fees payable, other | 9,890,000 | ||
Additional fees payable | 29,956,000 | ||
International appearances | |||
Transfer fees | |||
Additional fees payable, first team squad | 11,102,000 | ||
Additional fees payable | 11,102,000 | ||
Other | |||
Transfer fees | |||
Additional fees payable, first team squad | 18,535,000 | ||
Additional fees payable, other | 618,000 | ||
Additional fees payable | £ 19,153,000 |
Commitments - Capital commitmen
Commitments - Capital commitments (Details) - GBP (£) | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Property, plant and equipment | |||
Capital commitments | |||
Capital commitments | £ 4,523,000 | £ 3,794,000 | £ 1,970,000 |
Other intangible assets | |||
Capital commitments | |||
Capital commitments | £ 280,000 | £ 0 | £ 0 |
Related party transactions (Det
Related party transactions (Details) - Trusts and other entities controlled by descendants of Malcolm Glazer | Dec. 31, 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) | Dec. 31, 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% |
Events after the reporting pe_2
Events after the reporting period (Details) | Jan. 06, 2020USD ($)$ / shares | Jan. 06, 2020GBP (£) | Feb. 25, 2020GBP (£) | Dec. 31, 2019GBP (£) | Dec. 31, 2018GBP (£) | Dec. 31, 2019GBP (£) | Jun. 30, 2019GBP (£) | Dec. 31, 2018GBP (£) | |
Events after the reporting date | |||||||||
Dividends paid | £ 0 | £ 23,326,000 | £ 0 | ||||||
Proceeds from disposal of intangible assets, net of associated costs | [1] | £ 4,530,000 | £ 255,000 | 22,009,000 | 25,183,000 | ||||
Net book value of disposals of intangible assets | 51,902,000 | 7,929,000 | |||||||
Additions or extensions of intangible assets | 104,965,000 | 16,332,000 | |||||||
Registrations | |||||||||
Events after the reporting date | |||||||||
Net book value of disposals of intangible assets | 51,902,000 | 7,929,000 | |||||||
Additions or extensions of intangible assets | £ 103,489,000 | £ 14,461,000 | |||||||
Dividends | |||||||||
Events after the reporting date | |||||||||
Dividends paid | $ 14,812,000 | £ 11,323,000 | |||||||
Dividends paid per share | $ / shares | $ 0.09 | ||||||||
Disposal of playing registrations | Registrations | |||||||||
Events after the reporting date | |||||||||
Proceeds from disposal of intangible assets, net of associated costs | £ 1,278,000 | ||||||||
Net book value of disposals of intangible assets | 160,000 | ||||||||
Solidarity contributions, sell-on fees and contingent consideration receivable | 79,000 | ||||||||
Acquisition or extension of playing registrations | Registrations | |||||||||
Events after the reporting date | |||||||||
Additions or extensions of intangible assets | £ 56,151,000 | ||||||||
[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 payment 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 17. Trade payables in relation to the acquisition of registrations at the reporting date are provided in note 24. Trade receivables in relation to the disposal of registrations at the reporting date are provided in note 20. |