Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2022 shares | |
Statement | |
Entity Registrant Name | Manchester United plc |
Entity File Number | 001-35627 |
Entity Address, Address Line One | Sir Matt Busby Way |
Entity Address, Address Line Two | Old Trafford |
Entity Incorporation, State or Country Code | E9 |
Entity Address, City or Town | Manchester |
Entity Address, Country | GB |
Entity Address, Postal Zip Code | M16 0RA |
Title of 12(b) Security | Class A ordinary shares, par value $0.0005 per share |
Trading Symbol | MANU |
Security Exchange Name | NYSE |
Entity Central Index Key | 0001549107 |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Entity Emerging Growth Company | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Amendment Flag | false |
Document Type | 20-F |
Document Period End Date | Jun. 30, 2022 |
Current Fiscal Year End Date | --06-30 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Interactive Data Current | Yes |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
ICFR Auditor Attestation Flag | true |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 876 |
Auditor Location | Manchester, United Kingdom |
Class A ordinary shares | |
Statement | |
Entity Common Stock, Shares Outstanding | 54,537,360 |
Class B ordinary shares | |
Statement | |
Entity Common Stock, Shares Outstanding | 110,207,613 |
Executive Vice Chairman | |
Statement | |
Entity Address, Address Line One | Sir Matt Busby Way |
Entity Address, Address Line Two | Old Trafford |
Entity Address, City or Town | Manchester |
Entity Address, Country | GB |
Entity Address, Postal Zip Code | M16 0RA |
Contact Personnel Name | Richard Arnold |
City Area Code | (0) 161 |
Local Phone Number | 868 8000 |
Contact Personnel Email Address | ir@manutd.co.uk |
Consolidated statement of profi
Consolidated statement of profit or loss - GBP (£) £ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Consolidated statement of profit or loss | ||||
Revenue from contracts with customers | £ 583,201 | £ 494,117 | £ 509,041 | |
Operating expenses | (692,520) | (538,424) | (522,204) | |
Profit on disposal of intangible assets | 21,935 | 7,381 | 18,384 | |
Operating (loss)/profit | (87,384) | (36,926) | 5,221 | |
Finance costs | (85,915) | (36,411) | (27,391) | |
Finance income | 23,676 | 49,310 | 1,352 | |
Net finance (costs)/income | (62,239) | 12,899 | (26,039) | |
(Loss)/profit before income tax | (149,623) | (24,027) | (20,818) | |
Income tax credit/(expense) | 34,113 | (68,189) | (2,415) | |
(Loss)/profit for the year | £ (115,510) | £ (92,216) | £ (23,233) | |
(Loss)/earnings per share during the year | ||||
Basic loss per share | £ (0.7086) | £ (0.5660) | £ (0.1414) | |
Diluted loss per share | [1] | £ (0.7086) | £ (0.5660) | £ (0.1414) |
[1] For the years ended 30 June 2022, 2021 and 2020, potential ordinary shares are anti-dilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded. |
Consolidated statement of compr
Consolidated statement of comprehensive income/(loss) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Consolidated statement of comprehensive income/(loss) | |||
Loss for the year | £ (115,510) | £ (92,216) | £ (23,233) |
Items that may be subsequently reclassified to profit or loss | |||
Movements on hedges | 5,148 | 22,698 | 2,877 |
Income tax (expense)/credit relating to movements on hedges | (1,287) | (569) | 102 |
Other comprehensive income for the year, net of income tax | 3,861 | 22,129 | 2,979 |
Total comprehensive (loss)/income for the year | £ (111,649) | £ (70,087) | £ (20,254) |
Consolidated balance sheet
Consolidated balance sheet - GBP (£) | Jun. 30, 2022 | Jun. 30, 2021 |
Non-current assets | ||
Property, plant and equipment | £ 242,661,000 | £ 247,059,000 |
Right-of-use assets | 4,072,000 | 4,383,000 |
Investment properties | 20,273,000 | 20,553,000 |
Intangible assets | 743,278,000 | 754,467,000 |
Trade receivables | 29,757,000 | 20,404,000 |
Derivative financial instruments | 16,462,000 | 499,000 |
Total non-current assets | 1,056,503,000 | 1,047,365,000 |
Current assets | ||
Inventories | 2,200,000 | 2,080,000 |
Prepayments | 15,534,000 | 7,407,000 |
Contract assets - accrued revenue | 36,239,000 | 40,544,000 |
Trade receivables | 49,210,000 | 50,370,000 |
Other receivables | 1,569,000 | 460,000 |
Income tax receivable | 4,590,000 | 1,108,000 |
Derivative financial instruments | 6,597,000 | 318,000 |
Cash and cash equivalents | 121,223,000 | 110,658,000 |
Total current assets | 237,162,000 | 212,945,000 |
Total assets | 1,293,665,000 | 1,260,310,000 |
Equity | ||
Share capital | 53,000 | 53,000 |
Share premium | 68,822,000 | 68,822,000 |
Treasury shares | (21,305,000) | (21,305,000) |
Merger reserve | 249,030,000 | 249,030,000 |
Hedging reserve | 950,000 | (10,436,000) |
Retained deficit | (170,042,000) | (13,652,000) |
Total equity | 127,508,000 | 272,512,000 |
Non-current liabilities | ||
Deferred tax liabilities | 7,402,000 | 35,546,000 |
Contract liabilities - deferred revenue | 16,697,000 | 22,942,000 |
Trade and other payables | 102,347,000 | 67,517,000 |
Borrowings | 530,365,000 | 465,049,000 |
Lease liabilities | 2,869,000 | 3,083,000 |
Derivative financial instruments | 49,000 | 5,472,000 |
Provisions | 11,586,000 | 4,157,000 |
Total non-current liabilities | 671,315,000 | 603,766,000 |
Current liabilities | ||
Contract liabilities - deferred revenue | 165,847,000 | 117,984,000 |
Trade and other payables | 220,587,000 | 192,661,000 |
Income tax liabilities | 6,036,000 | |
Borrowings | 105,757,000 | 65,187,000 |
Lease liabilities | 1,561,000 | 1,257,000 |
Derivative financial instruments | 32,000 | 262,000 |
Provisions | 1,058,000 | 645,000 |
Total current liabilities | 494,842,000 | 384,032,000 |
Total equity and liabilities | £ 1,293,665,000 | £ 1,260,310,000 |
Consolidated statement of chang
Consolidated statement of changes in equity | Share capital GBP (£) | Share premium GBP (£) | Treasury shares GBP (£) | Merger reserve GBP (£) | Hedging reserve GBP (£) | Retained (deficit)/earnings GBP (£) | GBP (£) | USD ($) |
Balance at beginning of the year at Jun. 30, 2019 | £ 53,000 | £ 68,822,000 | £ 249,030,000 | £ (35,544,000) | £ 132,841,000 | £ 415,202,000 | ||
Comprehensive income (loss) | ||||||||
Loss for the year | (23,233,000) | (23,233,000) | ||||||
Cash flow hedges | 2,877,000 | 2,877,000 | ||||||
Tax credit/(expense) relating to movements on hedges | 102,000 | 102,000 | ||||||
Total comprehensive (loss)/income for the year | 2,979,000 | (23,233,000) | (20,254,000) | |||||
Acquisition of treasury shares | £ (21,305,000) | (21,305,000) | ||||||
Equity-settled share-based payments | 818,000 | 818,000 | ||||||
Dividends paid | (23,229,000) | (23,229,000) | $ (29,554,000) | |||||
Balance at end of the year at Jun. 30, 2020 | 53,000 | 68,822,000 | (21,305,000) | 249,030,000 | (32,565,000) | 87,197,000 | 351,232,000 | |
Comprehensive income (loss) | ||||||||
Loss for the year | (92,216,000) | (92,216,000) | ||||||
Cash flow hedges | 22,698,000 | 22,698,000 | ||||||
Tax credit/(expense) relating to movements on hedges | (569,000) | (569,000) | ||||||
Total comprehensive (loss)/income for the year | 22,129,000 | (92,216,000) | (70,087,000) | |||||
Equity-settled share-based payments | 2,085,000 | 2,085,000 | ||||||
Dividends paid | (10,718,000) | (10,718,000) | (14,665,000) | |||||
Balance at end of the year at Jun. 30, 2021 | 53,000 | 68,822,000 | (21,305,000) | 249,030,000 | (10,436,000) | (13,652,000) | 272,512,000 | |
Comprehensive income (loss) | ||||||||
Loss for the year | (115,510,000) | (115,510,000) | ||||||
Cash flow hedges | 5,148,000 | 5,148,000 | ||||||
Tax credit/(expense) relating to movements on hedges | (1,287,000) | (1,287,000) | ||||||
Total comprehensive (loss)/income for the year | 3,861,000 | (115,510,000) | (111,649,000) | |||||
Reclassified | 7,525,000 | (7,525,000) | ||||||
Equity-settled share-based payments | 198,000 | 198,000 | ||||||
Dividends paid | (33,553,000) | (33,553,000) | $ (44,010,000) | |||||
Balance at end of the year at Jun. 30, 2022 | £ 53,000 | £ 68,822,000 | £ (21,305,000) | £ 249,030,000 | £ 950,000 | £ (170,042,000) | £ 127,508,000 |
Consolidated statement of cash
Consolidated statement of cash flows - GBP (£) | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Cash flows from operating activities | ||||
Cash generated from operations | £ 121,704,000 | £ 137,778,000 | £ 17,569,000 | |
Interest paid | (20,642,000) | (20,542,000) | (20,456,000) | |
Interest received | 145,000 | 3,000 | 1,247,000 | |
Tax paid | (4,836,000) | (4,156,000) | (2,180,000) | |
Net cash inflow/(outflow) from operating activities | 96,371,000 | 113,083,000 | (3,820,000) | |
Cash flows from investing activities | ||||
Payments for property, plant and equipment | (8,323,000) | (6,241,000) | (21,291,000) | |
Payments for intangible assets | [1] | (115,415,000) | (138,189,000) | (220,577,000) |
Proceeds from sale of intangible assets | [1] | 30,307,000 | 45,996,000 | 29,022,000 |
Payments for derivative financial assets | (939,000) | |||
Net cash outflow from investing activities | (93,431,000) | (99,373,000) | (212,846,000) | |
Cash flows from financing activities | ||||
Acquisition of treasury shares | (21,305,000) | |||
Proceeds from borrowings | 40,000,000 | 60,000,000 | ||
Principal elements of lease payments | (1,407,000) | (1,641,000) | (1,865,000) | |
Dividends paid | (33,553,000) | (10,718,000) | (23,229,000) | |
Net cash inflow/(outflow) from financing activities | 5,040,000 | 47,641,000 | (46,399,000) | |
Net increase/(decrease) in cash and cash equivalents | 7,980,000 | 61,351,000 | (263,065,000) | |
Cash and cash equivalents at beginning of year | 110,658,000 | 51,539,000 | 307,637,000 | |
Effect of exchange rate changes on cash and cash equivalents | 2,585,000 | (2,232,000) | 6,967,000 | |
Cash and cash equivalents at end of year | £ 121,223,000 | £ 110,658,000 | £ 51,539,000 | |
[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. Details of registrations additions and disposals are provided in Note 16. 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 19. |
General information
General information | 12 Months Ended |
Jun. 30, 2022 | |
General information | |
General information | 1 General information Manchester United plc (the “Company”) and its subsidiaries (together the “Group”) is a men’s and women’s professional football club together with related and ancillary activities. The Company incorporated under the Companies Law (as amended) of the Cayman Islands. The address of its principal executive office is Sir Matt Busby Way, Old Trafford, Manchester M16 0RA, United Kingdom. The Company’s shares are listed on the New York Stock Exchange. These financial statements are presented in pounds sterling and all values are rounded to the nearest thousand (£’000) except when otherwise indicated. These financial statements were approved by the board of directors on 23 September 2022. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Jun. 30, 2022 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2 Summary of significant accounting policies This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements to the extent they have not been disclosed in the other notes below. The policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the Group consisting of Manchester United plc and its subsidiaries. 2.1 Basis of preparation (i) Compliance with IFRS The consolidated financial statements of Manchester United plc have been prepared on a going concern basis and in accordance with International Financial Reporting Standards (“IFRS”) and interpretations issued by the IFRS Interpretations Committee (“IFRS IC”) applicable to companies reporting under IFRS. The financial statements comply with IFRS as issued by the International Accounting Standards Board (“IASB”). COVID-19 pandemic and going concern Due to remaining summer restrictions on overseas travel, we did not undertake a first team promotional overseas tour at the start of fiscal 2022, and instead we played four domestic games, two of which were held at Old Trafford. Whilst the nature of the pandemic may result in UK government restrictions being re-imposed in the future, the majority of such restrictions were lifted ahead of the start of the 2021/22 season, with Old Trafford stadium welcoming back fans at full capacity. All matches played in the year operated at full capacity. Despite the ongoing uncertainty, the Group remains well placed with a strong balance sheet, including cash resources as at 30 June 2022 of £121.2 million. All funds are held as cash and cash equivalents and therefore available on demand. As at 30 June 2022, the Group also has access to undrawn revolving facilities of £200 million. The Group’s debt facilities include the $425 million senior secured notes and the $225 million secured term loan facility, the majority of which attract fixed interest rates. As at 30 June 2022 the Group also has £100 million outstanding loans under our revolving facilities. The Group’s revolving facilities, secured notes and secured term loan mature in 2027, 2027 and 2029 respectively. As of 30 June 2022, the Company was in compliance with all debt covenants. As a result of a detailed assessment, including various downside assumptions around the men’s first team’s performance, and with reference to the Group’s balance sheet, existing committed facilities, but also acknowledging the inherent uncertainty of the current economic outlook, Management has concluded that the Group is able to meet its obligations when they fall due for a period of at least 12 months after the date of this report. For this reason, the Group continue to adopt the going concern basis for preparing the annual financial statements. 2 Summary of significant accounting policies (continued) 2.1 Basis of preparation (continued) (ii) Historical cost convention The consolidated financial statements have been prepared on a historical cost basis, as modified by the revaluation of certain financial assets and liabilities (including derivative financial instruments) which are recognized at fair value through profit and loss, unless hedge accounting applies. (iii) New and amended standards adopted by the Group No new accounting standards, or amendments to accounting standards, or IFRIC interpretations that are effective for the year ended 30 June 2022, have had a material impact on the Group’s financial statements. (iv) New and amended standards and interpretations not yet adopted There are no other standards or interpretations that are not yet effective and that would be expected to have a material impact the Group in the future reporting periods or on foreseeable future transactions. (v) Effect of IBOR reform For the year ended 30 June 2021, we adopted the Phase 2 amendments to IFRS 9, “Financial Instruments” for the first time. On 10 December 2021 and 13 December 2021, the Group amended and restated its revolving facility agreements with Bank of America and Santander plc respectively, to provide for an alternate method of calculating our interest rates following the cessation of GBP LIBOR and the 1-week and 2-month USD LIBOR rates. Interest is now calculated based on the Sterling Overnight Index Average (SONIA) plus a credit adjustment spread. The impact of these amendment was not material in the year ended 30 June 2022. Our secured term loan facility of $225.0 million remains subject to USD LIBOR which is expected to be phased out completely by 30 June 2023. Therefore, in due course, the Group will need to re-negotiate terms with its lender and amend the terms of the related interest swap. Such amendments are expected to be achieved without material financial impact to the Group. The following table contains details of all financial instruments held at 30 June 2022 which reference USD LIBOR and have not yet transitioned to an alternative interest rate benchmark, such that phase 1 reliefs continue to be applied to the hedge relationship as there remains uncertainty arising from IBOR reform: Carrying value as at 30 June 2022 Assets Liabilities £000 £000 Borrowings (measured at amortised cost) — (183,191) Derivative financial instruments 2,458 — Total 2,458 (183,191) The Group has adopted the following hedge accounting reliefs provided by Phase 2 of the amendments: (i) Hedge designation – When the Phase 1 amendments cease to apply, the group will amend its cash flow hedge designation to reflect changes which are required by IBOR reform, but only to make one or more of these changes: ● Designating an alternative benchmark rate (contractually or non-contractually specified) as a hedged risk; ● Amending the description of the hedged item, including the designated portion of the cash flows being hedged; or ● Amending the description of the hedging instrument. 2 Summary of significant accounting policies (continued) 2.1 Basis of preparation (continued) (v) Effect of IBOR reform (continued) The Group will update its hedge documentation to reflect these changes at the end of the reporting period in which the changes are made. The amendments to hedge documentation do not require the Group to discontinue the cash flow hedge relationship. (ii) 2.2 Principles of consolidation Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group. The consideration transferred for the acquisition of a subsidiary comprises the: ● fair values of the assets transferred ● liabilities incurred to the former owners of the acquired business ● equity interests issued by the Group ● fair value of any asset or liability resulting from a contingent consideration arrangement, and ● fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. Acquisition-related costs are expensed as incurred. The excess of the: ● consideration transferred, ● the amount of any non-controlling interest in the acquired entity, and ● acquisition date fair value of any previous interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in profit or loss as a bargain purchase. Inter-company transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. 2 Summary of significant accounting policies (continued) 2.3 Segment reporting The Group has one reportable segment, being the operation of a men’s and women’s professional football club. The chief operating decision maker (being the board of directors and executive officers of Manchester United plc), who is responsible for allocating resources and assessing performance obtains financial information, being the consolidated statement of profit or loss, consolidated balance sheet and consolidated statement of cash flows, and the analysis of changes in net debt, about the Group as a whole. The Group has investment properties, however, this is not considered to be a material business segment and is therefore not reported as such. 2.4 Foreign currency translation (i) Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in pounds sterling, which is the Group’s functional and presentation currency. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates are generally recognized in profit or loss. They are deferred in other comprehensive income if they relate to qualifying cash flow hedges. Foreign exchange gains and losses that relate to unhedged borrowings are presented in the statement of profit or loss, within finance costs or finance income. 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. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within operating expenses. (iii) Exchange rates The most important exchange rates per £1.00 that have been used in preparing the financial statements are: Closing rate Average rate 2022 2021 2020 2022 2021 2020 Euro 1.1630 1.1651 1.0998 1.1787 1.1382 1.1391 US Dollar 1.2151 1.3820 1.2374 1.3288 1.3461 1.2633 2.5 Revenue recognition The Group’s accounting policies for revenue from contracts with customers are disclosed in Note 4. 2.6 Employee benefits (i) Short-term obligations Liabilities for wages and salaries, including non-monetary benefits and annual leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service, are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as accruals and classified as current liabilities in the balance sheet. 2 Summary of significant accounting policies (continued) 2.6 Employee benefits (continued) (ii) Football staff remuneration Remuneration is charged to operating expenses on a straight-line basis over the contract periods based on the amount payable to players and key football management staff for that period. Any performance bonuses are recognized when the Company considers that it is probable that the condition related to the payment will be achieved. Signing-on fees are typically paid to players and key football management staff in equal annual installments over the term of the contract. Installments are paid at or near the beginning of each financial year and recognized as prepayments. They are subsequently charged to profit or loss (as employee benefit expenses) on a straight-line basis over the financial year. Signing-on fees paid form part of cash flows from operating activities. Loyalty fees are bonuses which are paid to players and key football management staff either at the beginning of a renewed contract or in installments over the term of their contract in recognition for either past or future performance. Loyalty bonuses for past service are typically paid in a lump sum amount upon renewal of a contract. These loyalty bonuses require no future service and are not subject to any claw-back provisions were the individual to subsequently leave the club during their new contract term. They are expensed once the Company has a present legal or constructive obligation to make the payment. Loyalty bonuses for ongoing service are typically paid in arrears in equal annual installments over the term of the contract. These are paid at the beginning of the next financial year and the related charge is recognized within employee benefit expenses in profit or loss on a straight-line basis over the current financial year. (iii) Post-employment pension obligations The Group is one of a number of participating employers in The Football League Limited Pension and Life Assurance Scheme (‘the scheme’ — see Note 29.1). The Group is unable to identify its share of the assets and liabilities of the scheme and therefore accounts for its contributions as if they were paid to a defined contribution scheme. The Group’s contributions into this scheme are reflected within the statement of profit or loss when they fall due. Full provision has been made for the additional contributions that the Group has been requested to pay to help fund the scheme deficit. The Group also operates a defined contribution scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The Group’s contributions into this scheme are recognized as an employee benefit expenses when they are due. (iv) Share-based payments The Group operates a share-based compensation plan under which the entity receives services from employees as consideration for equity instruments of the Group. Equity-settled share-based payments to employees are measured at the fair value of the equity instruments at the grant date. The fair value excludes the effect of non-market based vesting conditions. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest. At each reporting date, the Group revises its estimate of the number of equity instruments expected to vest as a result of the effect of non-market based vesting conditions. The impact of the revision of the original estimates, if any, is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity. For cash-settled share-based payments to employees, a liability is recognized for the services acquired, measured initially at the fair value of the liability. At each reporting date until the liability is settled, and at the date of settlement, the fair value of the liability is re-measured, with any changes in fair value recognized in profit or loss for the year. Details regarding the determination of the fair value of share-based transactions are set out in Note 28. 2 Summary of significant accounting policies (continued) 2.7 Exceptional items The Group’s accounting policies for exceptional items are disclosed in Note 6. 2.8 Income tax The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current income tax expense or credit is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries operate and generate taxable income. Although the Company is organized as a Cayman Islands corporation, it reports as a US domestic corporation for US federal corporate income tax purposes and is subject to US federal corporate income tax on the Group’s worldwide income. In addition, the Group is subject to income and other taxes in various other jurisdictions, including the United Kingdom. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to (or recovered from) the tax authorities. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognized only if it is probable that future taxable profit will be available to utilize those temporary differences and losses. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income, in which case the tax is also recognized in other comprehensive income. 2.9 Dividend distribution Dividend distributions to the Company’s shareholders are recognized when they become legally payable. In the case of interim dividends, this is when they are paid. 2 Summary of significant accounting policies (continued) 2.10 Impairment of assets Goodwill is not subject to amortization and is tested annually for impairment or more frequently if events or changes in circumstances indicate it might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in profit or loss for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use, and is calculated with reference to future discounted cash flows that the asset is expected to generate when considered as part of a cash-generating unit. Assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. If an impairment subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment charge been recognized for the asset in prior years. Management does not consider that it is possible to determine the value in use of an individual player or key football management staff in isolation as that individual (unless via a sale or insurance recovery) cannot generate cash flows on their own. While management does not consider any individual can be separated from the single cash generating unit (“CGU”), being the operations of the Group as a whole, there may be certain circumstances where an individual is taken out of the CGU, when it becomes clear that they will not participate with the club’s men’s first team again, for example, a player sustaining a career threatening injury or is permanently removed from the men’s first team playing squad for another reason. If such circumstances were to arise, the carrying value of the individual would be assessed against the Group’s best estimate of the individual’s fair value less any costs to sell and an impairment charge made in operating expenses reflecting any loss arising. 2.11 Property, plant and equipment Property, plant and equipment is initially measured at cost (comprising the purchase price, after deducting discounts and rebates, and any directly attributable costs) and is subsequently carried at cost less accumulated depreciation and any provision for impairment. Subsequent costs, for example, capital improvements and refurbishment, are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. The depreciation methods and periods used by the Group are disclosed in Note 13. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss. 2.12 Leases The Group’s accounting policy for leases is disclosed in Note 14. 2.13 Investment properties The Group’s accounting policy for investment properties is disclosed in Note 15. 2 Summary of significant accounting policies (continued) 2.14 Intangible assets The cost of and amortization methods and periods used by the Group for goodwill, registrations and other intangible assets are disclosed in Note 16. The assets’ useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Assets available for sale (principally players’ registrations) are classified as assets held for sale when their carrying value is expected to be recovered principally through a sale transaction and a sale is considered to be highly probable. Highly probable is defined as being actively marketed by the club, with unconditional offers having been received prior to the end of a reporting period. These assets would be stated at the lower of the carrying amount and fair value less costs to sell. Gains and losses on disposal of players’ and key football management staff registrations are determined by comparing the fair value of the consideration receivable, net of any transaction costs, with the carrying amount and are recognized separately in profit or loss within profit on disposal of intangible assets. Where a part of the consideration receivable is contingent on specified performance conditions, this amount is recognized in profit or loss when receipt is virtually certain. Loan income on players temporarily loaned to other football clubs is recognized separately in profit or loss within profit on disposal of intangible assets. 2.15 Inventories The Group’s accounting policy for inventories is disclosed in Note 18. 2.16 Trade receivables The Group’s accounting policy for trade receivables is disclosed in Note 19. 2.17 Derivatives and hedging activities Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Group designates certain derivatives as hedges of a particular risk associated with the cash flows of recognized assets and liabilities and highly probable forecast transactions (cash flow hedges). At inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged items, including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking its hedge transactions. The fair values of derivative financial instruments are disclosed in Note 20. Movements in the hedging reserve are shown in the statement of changes in equity. The full fair value of a derivative is classified as a non-current asset or liability when the remaining maturity of the item is more than 12 months, it is classified as a current asset or liability when the remaining maturity of the item is less than 12 months. (i) Cash flow hedges that qualify for hedge accounting The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to any ineffective portion is recognized immediately in profit or loss. 2 Summary of significant accounting policies (continued) 2.17 Derivatives and hedging activities (continued) (i) Cash flow hedges that qualify for hedge accounting (continued) The Group hedges the foreign exchange risk on a portion of contracted, and hence highly probable, future US dollar revenues whenever possible using a portion of the Group’s US dollar net borrowings as the hedging instrument. Foreign exchange gains or losses arising on re-translation of the Group’s US dollar net borrowings used in the hedge are initially recognized in other comprehensive income, rather than being recognized in profit or loss immediately. The foreign exchange gains or losses arising on re-translation of the Group’s unhedged US dollar borrowings are recognized in profit or loss immediately. The Group hedges its cash flow interest rate risk where considered appropriate using interest rate swaps. Such interest rate swaps have the economic effect of converting a portion of variable rate borrowings from floating rates to fixed rates. The effective portion of changes in the fair value of the interest rate swap is initially recognized in other comprehensive income, rather than being recognized in profit or loss immediately. The gain or loss relating to any ineffective portion is recognized in profit or loss immediately. Amounts previously recognized in other comprehensive income and accumulated in the hedging reserve within equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for example, when the forecast transaction that is hedged takes place). When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss existing in equity at that time remains in equity and is reclassified when the forecast transaction is ultimately recognized in profit or loss. When the forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately reclassified to profit or loss. (ii) Derivatives that do not qualify for hedge accounting Certain derivative instruments are not designated as hedging instruments and consequently do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognized immediately in profit or loss. 2.18 Cash and cash equivalents For the purposes of presentation in the consolidated balance sheet and the consolidated statement of cash flows, cash and cash equivalents includes cash in hand, deposits held at call with financial institutions, and, if applicable, other short-term highly liquid investments with original maturities of three months or less. 2.19 Share capital and reserves Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds of the issue. Where any Group company purchases the Company’s equity instruments, for example as the result of a share buy-back, the consideration paid, including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the owners of Manchester United plc as treasury shares until the shares are cancelled or reissued. The merger reserve arose as a result of reorganization transactions and represents the difference between the equity of the acquired company (Red Football Shareholder Limited) and the investment by the acquiring company (Manchester United plc). The hedging reserve is used to reflect the effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges. 2 Summary of significant accounting policies (continued) 2.20 Trade and other payables The Group’s accounting policy for trade and other payables is disclosed in Note 24. 2.21 Borrowings Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest rate method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case the fee is deferred until draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. 2.22 Provisions Provisions are recognized when the group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not recognized for future operating losses. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is the pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as an interest expense. |
Critical estimates and judgment
Critical estimates and judgments | 12 Months Ended |
Jun. 30, 2022 | |
Critical estimates and judgments | |
Critical estimates and judgments | 3 Critical estimates and judgments The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgment in applying the Group’s accounting policies. This note provides an overview of the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be wrong. Detailed information about each of these estimates and judgments is included in other notes together with information about the basis of calculation for each affected line item in the financial statements. 3.1 Significant estimates and assumptions The areas involving significant estimates are: ● Estimate of minimum guarantee revenue recognition — see Note 4.3(i) ● Estimate of fair value of registrations — see Note 16 ● Recognition of deferred tax assets — see Note 17 ● Recognition of tax related provisions – see Note 26 Management does not consider there to be any significant judgments in the preparation of the financial statements. Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Group and that are believed to be reasonable under the circumstances. |
Revenue from contracts with cus
Revenue from contracts with customers | 12 Months Ended |
Jun. 30, 2022 | |
Revenue from contracts with customers | |
Revenue from contracts with customers | 4 Revenue from contracts with customers 4.1 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 ongoing development of the Group. Consequently the chief operating decision maker regards the Group as operating in one material segment, being the operation of professional football clubs. All revenue derives from the Group’s principal activity in the United Kingdom. Revenue can be analysed into its three main components as follows: 2022 2021 2020 £’000 £’000 £’000 Sponsorship 147,881 140,209 182,709 Retail, merchandising, apparel & products licensing revenue 109,939 91,996 96,335 Commercial 257,820 232,205 279,044 Domestic competitions 140,629 174,683 115,415 European competitions 67,477 73,827 16,836 Other 6,741 6,305 7,952 Broadcasting 214,847 254,815 140,203 Matchday 110,534 7,097 89,794 583,201 494,117 509,041 4 Revenue from contracts with customers (continued) 4.1 Disaggregation of revenue from contracts with customers (continued) Revenue derived from entities accounting for more than 10% of revenue in either 2022, 2021 or 2020 were as follows: 2022 2021 2020 £’000 £’000 £’000 Customer A 146,114 177,160 118,069 Customer B 76,377 77,426 77,852 Customer C 67,477 73,827 <10 % Customer D <10 % <10 % 52,269 All non-current assets are held within the United Kingdom. 4.2 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 2020 45,966 Recognized in revenue during the year 39,037 Cash received/amounts invoiced during the year (43,973) Loss allowance (486) At 30 June 2021 40,544 Recognized in revenue during the year 34,948 Cash received/amounts invoiced during the year (39,253) At 30 June 2022 36,239 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. 4 Revenue from contracts with customers (continued) 4.2 Assets and liabilities related to contracts with customers (continued) Details of movements on liabilities related to contracts with customers are as follows: Current contract Non-current Total contract liabilities – contract liabilities – liabilities – deferred revenue deferred revenue deferred revenue £’000 £’000 £’000 At 1 July 2020 (171,574) (18,759) (190,333) Recognized in revenue during the year 135,560 — 135,560 Cash received/amounts invoiced during the year (86,153) — (86,153) Reclassified during the year 4,183 (4,183) — At 30 June 2021 (117,984) (22,942) (140,926) Recognized in revenue during the year 108,001 — 108,001 Cash received/amounts invoiced during the year (149,619) — (149,619) Reclassified during the year (6,245) 6,245 — At 30 June 2022 (165,847) (16,697) (182,544) Commercial, broadcasting and Matchday consideration which is received in advance of the performance obligation being satisfied is treated as a contract liability (deferred revenue). The deferred revenue is then recognized as revenue when the performance obligation is satisfied. The Group receives substantial amounts of deferred revenue prior to the previous financial year end which is then recognized as revenue throughout the current and, where applicable, future financial years. 4.3 Accounting policies and significant judgments Revenue is measured at the fair value of consideration received or receivable from the Group’s principal activities excluding transfer fees and value added tax. The Group’s principal revenue streams are Commercial, Broadcasting and Matchday. The Group recognizes revenue when the transaction price can be determined; when it is probable that it will collect the consideration to which it is entitled; and when specific performance obligations have been met for each of the Group’s activities as described below. In instances where the transaction price contains an element of variable or contingent consideration, revenue is recognized based on the most likely amount expected to be received, but only to the extent that it is highly probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable or contingent consideration is subsequently resolved. (i) Commercial 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 United Kingdom 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). 4 Revenue from contracts with customers (continued) 4.3 Accounting policies and significant judgments (continued) (i) Commercial (continued) Retail revenue is recognized when control of the products has transferred, being at the point of sale to the customer. License revenue in respect of right to access licences is recognized in line with the performance obligations included within the contract, in instances where these remain the same over the duration of the contract, revenue is recognized evenly on a time elapsed (i.e. straight-line) basis. Sales-based royalty revenue is recognized only when the subsequent sale is made. Significant estimates A number of sponsorship contracts contain significant estimates in relation to the allocation and recognition of revenue in line with performance obligations. Minimum guaranteed revenue is recognized over the term of the sponsorship agreement in line with the performance obligations included within the contract and based on the sponsorship benefits enjoyed by the individual sponsor. In instances where the sponsorship rights remain the same over the duration of the contract, revenue is recognized as performance obligations are satisfied evenly over time (i.e. on a straight-line basis). The Group has a 10-year agreement with adidas which began on 1 August 2015. The minimum guarantee payable by adidas over the term of the agreement is £750 million, subject to certain adjustments. Payments due in a particular year may increase if the club’s men’s first team wins the Premier League, FA Cup or Champions League, or decrease if the club’s men’s first team fails to participate in the Champions League for two or more consecutive seasons with the maximum possible increase being £4 million per year and the maximum possible reduction being 30% of the applicable payment for the year in which the second or other consecutive season of non-participation falls. 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 at 30 June 2022 that the full minimum guarantee amount is the most likely amount that will be received, as management does not expect two consecutive seasons of non-participation in the Champions League. (ii) Broadcasting Broadcasting revenue represents revenue receivable from all UK and overseas broadcasting contracts, including contracts negotiated centrally by the Premier League and UEFA. Distributions from the Premier League comprise a fixed element (which is recognized evenly as each performance obligation is satisfied, i.e. as each Premier League match is played), facility fees for live coverage and highlights of domestic home and away matches (which are recognized when the respective performance obligation is satisfied, i.e. the respective match is played), and merit awards (which, being variable consideration, are recognized when each performance obligation is satisfied i.e. as each Premier League match is played, based on management’s estimate of where the men’s first team will finish at the end of the football season i.e. the most likely outcome and to the extent that it is deemed highly probably that no revenue recognized will be reversed). Distributions from UEFA relating to participation in European competitions comprise market pool payments (which are recognized over the matches played in the competition, a portion of which reflects Manchester United’s performance relative to the other Premier League clubs in the competition), fixed amounts for participation in individual matches (which are recognized when the matches are played) and an individual club coefficient share (which is recognized over the group stage matches). (iii) Matchday 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. 4 Revenue from contracts with customers (continued) 4.3 Accounting policies and significant judgments (continued) (iii) Matchday (continued) 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. As a result of COVID-19, all matches other than one in the prior period were played behind closed doors. In fiscal 2022, the Old Trafford stadium has welcomed back fans at full capacity. |
Operating expenses
Operating expenses | 12 Months Ended |
Jun. 30, 2022 | |
Operating expenses | |
Operating expenses | 5 Operating expenses 2022 2021 2020 £’000 £’000 £’000 Employee benefit expenses (Note 7) (384,141) (322,600) (284,029) Short-term and low value leases (621) (514) (590) Auditors’ remuneration: audit of parent company and consolidated financial statements (485) (30) (30) Auditors’ remuneration: audit of the Company’s subsidiaries (135) (646) (636) Auditors’ remuneration: audit-related services (14) (14) (13) Auditors’ remuneration: other audit services (80) (105) — Auditors’ remuneration: tax compliance and tax advice services (13) (35) (446) Foreign exchange (losses)/gains on operating activities (50) (874) 816 Depreciation - property, plant and equipment (Note 13) (12,285) (12,987) (12,735) Depreciation – right-of-use assets (Note 14) (1,749) (1,698) (1,656) Depreciation - investment properties (Note 15) (280) (274) (365) Impairment - investment properties (Note 15) — — (3,787) Amortization – intangible assets (Note 16) (151,462) (124,398) (126,756) Sponsorship, other commercial and broadcasting costs (17,174) (10,861) (20,097) External Matchday costs (24,372) (9,022) (19,196) Property costs (26,699) (16,454) (19,028) Other operating expenses (individually less than £10,000,000) (48,268) (37,912) (33,656) Exceptional items (Note 6) (24,692) — — (692,520) (538,424) (522,204) |
Exceptional items
Exceptional items | 12 Months Ended |
Jun. 30, 2022 | |
Exceptional items | |
Exceptional items | 6 Exceptional items 2022 2021 2020 £’000 £’000 £’000 Compensation for loss of office 23,827 — — Football League pension scheme deficit (Note 29) 865 — — 24,692 — — Compensation paid for loss of office relates to amounts payable to former men’s first team managers, certain members of the playing, coaching and scouting staff and certain non-playing staff. The Football League pension scheme deficit reflects the present value of the additional contributions the Group is expected to pay to remedy the revised deficit of the scheme pursuant to the latest triennial actuarial valuation. 6 Exceptional items (continued) (i) Accounting policy Exceptional items are disclosed separately in the financial statements where it is necessary to do so to provide further understanding of the financial performance of the Group. They are material items of income or expense that have been shown separately due to the significance of their nature or amount. |
Employee benefit expenses
Employee benefit expenses | 12 Months Ended |
Jun. 30, 2022 | |
Employee benefit expenses | |
Employee benefit expenses | 7 Employee benefit expenses 7.1 2022 2021 2020 £’000 £’000 £’000 Wages and salaries (including bonuses) (338,503) (283,463) (249,564) Social security costs (40,881) (33,773) (29,743) Share-based payments (Note 28) (1,026) (2,002) (1,435) Pension costs - defined contribution schemes (Note 29.2) (3,731) (3,362) (3,287) (384,141) (322,600) (284,029) Details of the pension arrangements offered by the Company and the Group are disclosed in Note 29. The average number of employees during the year, including directors, was as follows: 2022 2021 2020 Number Number Number By activity: Football – men’s and women’s players 124 118 115 Football - technical and coaching 189 176 176 Commercial 151 131 129 Media 94 90 88 Administration and other 477 468 484 Average number of employees 1,035 983 992 The Group also employs approximately 1,045 temporary staff to perform, among other things, catering, security, ticketing, hospitality and marketing services during Matchdays at Old Trafford (2021: 945; 2020: 3,593), the costs of which are included in the employee benefit expense above. The reduction in temporary employees in fiscal 2021 is due to the COVID-19 pandemic and virtually all matches being played behind closed doors. 7.2 Key management includes directors (executive and non-executive) of the Company. The compensation paid or payable to key management for employee services, which is included in the employee benefit expense table above, is shown below: 2022 2021 2020 £’000 £’000 £’000 Short-term employee benefits (6,893) (8,326) (9,507) Share-based payments (284) (1,125) (1,017) Post-employment benefits (8) (5) (20) (7,185) (9,456) (10,544) |
Profit on disposal of intangibl
Profit on disposal of intangible assets | 12 Months Ended |
Jun. 30, 2022 | |
Profit on disposal of intangible assets | |
Profit on disposal of intangible assets | 8 Profit on disposal of intangible assets 2022 2021 2020 £’000 £’000 £’000 Profit on disposal of registrations 18,971 4,601 15,664 Player loan income 2,964 2,780 2,720 21,935 7,381 18,384 |
Net finance (costs)_income
Net finance (costs)/income | 12 Months Ended |
Jun. 30, 2022 | |
Net finance (costs)/income | |
Net finance (costs)/income | 9 Net finance (costs)/income 2022 2021 2020 £’000 £’000 £’000 Interest payable on bank loans and overdrafts (3,058) (1,952) (1,038) Interest payable on secured term loan facility, senior secured notes and revolving facilities (19,975) (17,262) (19,485) Interest payable on lease liabilities (Note 14) (97) (109) (131) Amortization of issue costs on secured term loan facility and senior secured notes (713) (626) (579) Foreign exchange losses on retranslation of unhedged US dollar borrowings (1) (58,738) — (4,436) Unwinding of discount relating to registrations (2,363) (892) (1,508) Reclassified from hedging reserve (1) — (14,631) — Hedge ineffectiveness on cash flow hedges (971) — (119) Fair value movements on derivative financial instruments: Embedded foreign exchange derivatives — — (95) Foreign currency options — (939) — Total finance costs (85,915) (36,411) (27,391) Interest receivable on short-term bank deposits 145 3 1,352 Foreign exchange gains on retranslation of unhedged US dollar borrowings (2) — 48,015 — Reclassified from hedging reserve (3) 326 — — Hedge ineffectiveness on cash flow hedges — 1,234 — Fair value movement on derivative financial instruments: Embedded foreign exchange derivatives 23,205 58 — Total finance income 23,676 49,310 1,352 Net finance (costs)/income (62,239) 12,899 (26,039) (1) Unrealized foreign exchange losses on unhedged USD borrowings due to an unfavorable swing in foreign exchange rates. (2) Unrealized foreign exchange gains on unhedged USD borrowings due to a favorable swing in foreign exchange rates. (3) Foreign exchange losses immediately reclassified from the hedging reserve for hedged future revenues no longer meeting the hedge accounting criteria due to a change in denomination of the contract currency. |
Income tax credit_(expense)
Income tax credit/(expense) | 12 Months Ended |
Jun. 30, 2022 | |
Income tax credit/(expense) | |
Income tax credit/(expense) | 10 Income tax credit/(expense) 2022 2021 2020 £’000 £’000 £’000 Current tax: Current tax on loss for the year (1) 5,084 (3,972) 551 Adjustment in respect of previous years 223 490 (598) Foreign tax (625) (688) (942) Total current tax credit/(expense) 4,682 (4,170) (989) Deferred tax: US deferred tax: Origination and reversal of temporary differences — 3,831 4,591 Re-measurement of US deferred tax asset (2) — (66,561) (3,916) Adjustment in respect of previous years — 973 (1,150) Total US deferred tax expense (Note 17) — (61,757) (475) UK deferred tax: Origination and reversal of temporary differences 29,142 9,762 2,452 Adjustment in respect of previous years 289 (800) 512 Impact of change in UK corporation tax rate (2) — (11,224) (3,915) Total UK deferred tax credit/(expense) (Note 17) 29,431 (2,262) (951) Total deferred tax credit/(expense) 29,431 (64,019) (1,426) Total income tax credit/(expense) 34,113 (68,189) (2,415) A reconciliation of the total income tax credit/(expense) is as follows: 2022 2021 2020 £’000 £’000 £’000 Loss before income tax (149,623) (24,027) (20,818) Loss before tax multiplied by UK corporation tax rate of 19.0% (2021: 21.0% - weighted average US federal corporate income tax rate; 2020: 21.0% - weighted average US federal corporate income tax rate) 28,428 5,046 4,372 Tax effects of: Adjustment in respect of previous years 512 663 (1,236) Difference in tax rates on non-US operations — 216 26 Recognition of UK R&D tax claims in respect of previous years — — 537 Foreign exchange (losses)/gains on US dollar denominated tax basis — (3,146) 735 (Expenses not deductible for tax purposes)/income not taxable (1,197) (526) 757 Irrecoverable foreign tax credits (625) — — Impact of change in UK Corporation tax rate (2) 6,995 (77,785) — Unrealized foreign exchange gains/(losses) not taxable in the US — 7,343 (3,690) Re-measurement of foreign tax credit US deferred tax asset — — (3,916) Total income tax credit/(expense) 34,113 (68,189) (2,415) 10 Income tax credit/(expense) (continued) In addition to the amount recognized in the statement of profit or loss, the following amounts relating to tax have been recognized directly in other comprehensive income: 2022 2021 2020 £’000 £’000 £’000 US deferred tax (Note 17) — 3,395 422 UK deferred tax (Note 17) (1,287) (1,947) 1,479 Total deferred tax (1,287) 1,448 1,901 Current tax (1) — (2,017) (1,799) Total income tax (expense)/credit recognized in other comprehensive income (1,287) (569) 102 (1) (2) The credit of £6,995,000 arising in the current year is a result UK deferred tax being recognized at the substantively enacted tax rate of 25% which is expected to be in point from 1 April 2023. The total tax charge reconciliation is performed at the current year tax rate of 19% resulting in a reconciling item. |
(Loss)_earnings per share
(Loss)/earnings per share | 12 Months Ended |
Jun. 30, 2022 | |
(Loss)/earnings per share | |
(Loss)/earnings per share | 11 (Loss)/earnings per share 2022 2021 2020 Loss for the year (£’000) (115,510) (92,216) (23,233) Basic loss per share (pence) (70.86) (56.60) (14.14) Diluted loss per share (pence) (1) (70.86) (56.60) (14.14) (i) Basic loss per share Basic loss per share is calculated by dividing the loss for the year by the weighted average number of ordinary shares in issue during the financial year. (ii) Diluted loss per share Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares in issue during the year to assume conversion of all dilutive potential ordinary shares. The Company has one category of dilutive potential ordinary shares: share awards pursuant to the 2012 Equity Incentive Plan (the “Equity Plan”). Share awards pursuant to the Equity Plan are assumed to have been converted into ordinary shares at the beginning of the financial year, or, if later, the date of issue of the potential ordinary shares. 11 (Loss)/earnings per share (continued) (iii) Weighted average number of shares used as the denominator 2022 2021 2020 Number Number Number ‘000 ‘000 ‘000 Class A ordinary shares 51,952 41,939 40,573 Class B ordinary shares 112,732 122,683 124,000 Treasury shares (1,683) (1,683) (320) Weighted average number of ordinary shares used as the denominator in calculating basic loss per share 163,001 162,939 164,253 Adjustment for calculation of diluted loss per share assumed conversion into Class A ordinary shares (1) — — — Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted (loss)/earnings per share (1) 163,001 162,939 164,253 (1) For the years ended 30 June 2022, 30 June 2021 and 30 June 2020, potential ordinary shares are anti-dilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded. |
Dividends
Dividends | 12 Months Ended |
Jun. 30, 2022 | |
Dividends | |
Dividends | 12 Dividends Dividends paid in the year were $44,010,000 (2021: $14,665,000; 2020: $29,554,000) equivalent to $0.27 (2021: $0.09; 2020: $0.18) per share. The pounds sterling equivalents were £33,553,000 (2021: £10,718,000; 2020: £23,229,000) equivalent to £0.21 (2021: £0.07; 2020: £0.14) per share. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Jun. 30, 2022 | |
Property, plant and equipment. | |
Property, plant and equipment | 13 Property, plant and equipment Freehold Plant and Fixtures property machinery and fittings Total £’000 £’000 £’000 £’000 At 1 July 2020 Cost 270,900 38,222 79,741 388,863 Accumulated depreciation (56,435) (32,461) (45,528) (134,424) Net book amount 214,465 5,761 34,213 254,439 Year ended 30 June 2021 Opening net book amount 214,465 5,761 34,213 254,439 Additions 721 3,091 1,795 5,607 Transfers 7,366 — (7,366) — Depreciation charge (3,432) (3,507) (6,048) (12,987) Closing net book amount 219,120 5,345 22,594 247,059 At 30 June 2021 Cost 278,987 38,309 73,528 390,824 Accumulated depreciation (59,867) (32,964) (50,934) (143,765) Net book amount 219,120 5,345 22,594 247,059 Year ended 30 June 2022 Opening net book amount 219,120 5,345 22,594 247,059 Additions 2,390 2,706 2,791 7,887 Transfers — 231 (231) — Depreciation charge (3,394) (3,013) (5,878) (12,285) Closing net book amount 218,116 5,269 19,276 242,661 At 30 June 2022 Cost 281,377 39,562 75,394 396,333 Accumulated depreciation (63,261) (34,293) (56,118) (153,672) Net book amount 218,116 5,269 19,276 242,661 (i) Assets pledged as security Property, plant and equipment with a net book amount of £209,442,000 (2021: £213,452,000) has been pledged to secure the revolving facilities, the secured term loan facility and senior secured notes borrowings of the Group (see Note 25). (ii) Depreciation methods and useful lives Land is not depreciated. With the exception of freehold property acquired before 1 August 1999, depreciation is calculated using the straight-line method to allocate cost, net of residual values, over the estimated useful lives as follows: Freehold property 75 years Computer equipment and software (included within Plant and machinery) 3 years Plant and machinery 4-5 years Fixtures and fittings 7 years Freehold property acquired before 1 August 1999 is depreciated on a reducing balance basis at an annual rate of 1.33%. See Note 2.11 for the other accounting policies relevant to property, plant and equipment, and Note 2.10 for the Group’s policy regarding impairments. (iii) Capital commitments See Note 32.1 for disclosure of capital commitments relating to property, plant and equipment. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2022 | |
Leases | |
Leases | 14 Leases (i) Amounts recognized in the consolidated balance sheet The balance sheet shows the following amounts relating to leases: Right-of-use assets: 2022 2021 £’000 £’000 Property 3,655 4,004 Plant and machinery 417 379 Total 4,072 4,383 Additions to right-of-use assets in the year amounted £1,428,000 (2021: £1,522,000). Lease liabilities: 2022 2021 £’000 £’000 Current 1,561 1,257 Non-current 2,869 3,083 Total lease liabilities 4,430 4,340 The following table provides an analysis of the movements in lease liabilities: £’000 As at 1 July 2020 4,393 Cash flows (1,684) Acquisition 1,522 Accretion expense 109 As at 30 June 2021 4,340 Cash flows (1,444) Acquisition 1,437 Accretion expense 97 As at 30 June 2022 4,430 (ii) Amounts recognized in the consolidated statement of profit or loss: 2022 2021 2020 £’000 £’000 £’000 Depreciation charge of right-of-use assets Property (1,534) (1,534) (1,530) Plant and machinery (215) (164) (126) (1,749) (1,698) (1,656) Interest expense (included in finance cost) (97) (109) (131) Expense relating to short-term leases (included in operating expenses) (579) (472) (562) Expense relating to low value leases (included in operating expenses) (42) (42) (28) (iii) The group’s leasing activities and how these are accounted for The Group leases various offices and equipment. 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. 14 Leases (continued) Lease liabilities:(continued) (iii) The group’s leasing activities and how these are accounted for (continued) 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; ● any 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 properties
Investment properties | 12 Months Ended |
Jun. 30, 2022 | |
Investment properties | |
Investment properties | 15 Investment properties £’000 At 1 July 2020 Cost 32,193 Accumulated depreciation and impairment (11,366) Net book amount 20,827 Year ended 30 June 2021 Opening net book amount 20,827 Depreciation charge (274) Closing net book amount 20,553 At 30 June 2021 Cost 32,193 Accumulated depreciation and impairment (11,640) Net book amount 20,553 Year ended 30 June 2022 Opening net book amount 20,553 Depreciation charge (280) Closing net book amount 20,273 At 30 June 2022 Cost 32,193 Accumulated depreciation and impairment (11,920) Net book amount 20,273 (i) Other amounts recognized in profit or loss for investment properties 2022 2021 £’000 £’000 Rental revenue 2,240 2,216 Direct operating expenses from properties, all of which generated rental revenue 294 761 The future minimum rentals receivable under non-cancellable operating leases are disclosed in Note 32.2. (ii) Carrying value of investment properties Investment properties are held for long-term rental yields or for capital appreciation or both, and are not occupied by the Group. Investment properties are initially measured at cost (comprising the purchase price, after deducting discounts and rebates, and any directly attributable costs) and are subsequently carried at cost less accumulated depreciation and any provision for impairment. Investment properties are depreciated using the straight-line method over 50 years. Investment properties were externally valued as of 30 June 2022 in accordance with the Royal Institution of Chartered Surveyors (“RICS”) Valuation — Global Standards 2017 on the basis of Fair Value (as defined in the Standards). The fair value of investment properties as of 30 June 2022 was £38,250,000 (2021: £24,700,000). The fair value of investment properties is determined using inputs that are not based on observable market data, consequently the asset is categorized as Level 3. (iii) Contractual commitments The Group had no material contractual commitments to purchase, construct or develop investment properties or for repairs, maintenance or enhancements (2021: not material). |
Intangible assets
Intangible assets | 12 Months Ended |
Jun. 30, 2022 | |
Intangible assets. | |
Intangible assets | 16 Intangible assets Other intangible Goodwill Registrations assets Total £’000 £’000 £’000 £’000 At 1 July 2020 Cost 421,453 831,275 14,797 1,267,525 Accumulated amortization — (484,403) (7,952) (492,355) Net book amount 421,453 346,872 6,845 775,170 Year ended 30 June 2021 Opening net book amount 421,453 346,872 6,845 775,170 Additions — 115,725 2,300 118,025 Disposals — (14,330) — (14,330) Amortization charge — (120,280) (4,118) (124,398) Closing book amount 421,453 327,987 5,027 754,467 At 30 June 2021 Cost 421,453 861,210 16,644 1,299,307 Accumulated amortization — (533,223) (11,617) (544,840) Net book amount 421,453 327,987 5,027 754,467 Year ended 30 June 2022 Opening net book amount 421,453 327,987 5,027 754,467 Additions — 151,564 3,100 154,664 Disposals — (14,391) — (14,391) Amortization charge — (148,949) (2,513) (151,462) Closing book amount 421,453 316,211 5,614 743,278 At 30 June 2022 Cost 421,453 779,197 18,817 1,219,467 Accumulated amortization — (462,986) (13,203) (476,189) Net book amount 421,453 316,211 5,614 743,278 (i) Cost of and amortization methods and useful lives Goodwill arose largely in relation to the Group’s acquisition of Manchester United Limited in 2005 and represents the excess of the cost of the acquisition over the fair value of the Group’s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill is not amortized but it is tested annually for impairment or more frequently if events or changes in circumstances indicate it might be impaired. Goodwill is carried at cost less accumulated impairment losses. When goodwill is tested for impairment, the recoverable amount of the cash-generating unit is determined based on a value-in-use calculation. This calculation requires the use of estimates, both in arriving at the expected future cash flows and the application of a suitable discount rate in order to calculate the present value of these flows. These calculations have been carried out in accordance with the assumptions set out below. The value-in-use calculations have used pre-tax cash flow projections based on the financial budgets approved by management covering a five-year period. The budgets are based on past experience in respect of revenues, variable and fixed costs, registrations and other capital expenditure and working capital assumptions. For each accounting period, cash flows beyond the five-year period are extrapolated using a terminal growth rate of 2.0% (2021: 1.0%), which does not exceed the long term average growth rate for the UK economy in which the cash generating unit operates. Management considers there to be one material cash generating unit for the purposes of the annual impairment review, being the operation of professional football clubs. The other key assumptions used in the value in use calculations for each period are the pre-tax discount rate, which has been determined at 8.4% (2021: 7.9%) for each period, certain assumptions around progression in domestic and UEFA club competitions, and registrations capital expenditure. 16 Intangible assets (continued) (i) Cost of and amortization methods and useful lives (continued) Management determined budgeted revenue growth based on historical performance and its expectations of market development. The discount rates are pre-tax and reflect the specific risks relating to the business. The following sensitivity analysis was performed: ● increase the discount rate by 1 % (post-tax); and ● more prudent assumptions around qualification for European competitions. In each of these scenarios the estimated recoverable amount substantially exceeds the carrying value for the cash generating unit and accordingly no impairment was identified. Having assessed the future anticipated cash flows, management believes that any reasonably possible changes in key assumptions would not result in an impairment of goodwill. The costs associated with the acquisition of players’ and key football management staff registrations are capitalized at the fair value of the consideration payable. Costs include transfer fees, Premier League levy fees, agents’ fees incurred by the club and other directly attributable costs. Costs also include the fair value of any contingent consideration, which is primarily payable to the player’s former club (with associated levy fees payable to the Premier League), once payment becomes probable. Subsequent reassessments of the amount of contingent consideration payable are also included in the cost of the player’s and key football management staff registration. Registrations costs are fully amortized using the straight-line method over the period covered by the player’s and key football management staff contract. Where a contract is extended, any costs associated with securing the extension are added to the unamortized balance (at the date of the amendment) and the revised book value is amortized over the remaining revised contract life. The Group will perform an impairment review on intangible assets, including player and key football management staff registrations, if adverse events indicate that the amortized carrying value of the asset may not be recoverable. While no individual can be separated from the single cash generating unit (“CGU”), being the operations of the Group as a whole, there may be certain circumstances where an individual is taken out of the CGU, when it becomes clear that they will not participate with the club’s first team again, for example, a player sustaining a career threatening injury or is permanently removed from the first team squad for another reason. If such circumstances were to arise, the carrying value of the individual would be assessed against the Group’s best estimate of the individual’s fair value less any costs to sell. Other intangible assets comprise website, mobile applications, software and trademark registration costs and are initially measured at cost and are subsequently carried at cost less accumulated amortization and any provision for impairment. Amortization is calculated using the straight-line method to write-down assets to their residual value over the estimated useful lives as follows: Website, mobile applications and software 3 years Trademark registrations 10 years See Note 2.14 for the other accounting policies relevant to intangible assets and Note 2.10 for the Group’s policy regarding impairments. 16 Intangible assets (continued) (i) Cost of and amortization methods and useful lives (continued) Significant estimates — fair value of registrations The costs associated with the acquisition of players’ and key football management staff registrations include an estimate of the fair value of any contingent consideration. The estimate of the fair value of the contingent consideration payable requires management to assess the likelihood of specific performance conditions being met which would trigger the payment of the contingent consideration. This assessment is carried out on an individual basis. The maximum additional amount that could be payable as of 30 June 2022 is disclosed in Note 31.1. The estimate over the probability of contingent consideration payable could impact the net book value of registrations and amortization recognized in the statement of profit or loss. The unamortized balance of existing registrations as of 30 June 2022 was £316.2 million (2021: £328.0 million), of which £130.6 million (2021: £114.9 million) is expected to be amortized in the year ending 30 June 2023 (2021: year ending 30 June 2022). The remaining balance is expected to be amortized over the three years to 30 June 2026 (2021: four years to 30 June 2026). This does not take into account player additions following the end of the reporting period, which would have the effect of increasing the amortization expense in future periods, nor does it consider disposals subsequent to the end of the reporting period, which would have the effect of decreasing future amortization charges. Furthermore, any contract renegotiations would also impact future charges. (ii) Capital commitments See Note 32.1 for disclosure of capital commitments relating to other intangible assets. (iii) Internally generated other intangible assets Other intangible assets include internally generated assets whose cost and accumulated amortization as of 30 June 2022 was £2,103,000 and £2,091,000 respectively (2021: £2,103,000 and £1,976,000 respectively). |
Deferred tax
Deferred tax | 12 Months Ended |
Jun. 30, 2022 | |
Deferred tax | |
Deferred tax | 17 Deferred tax Deferred tax assets and deferred tax liabilities are offset where the Group has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after allowable offset): 2022 2021 £’000 £’000 UK deferred tax liabilities 7,402 35,546 At 30 June 7,402 35,546 The movement in deferred tax assets and deferred tax liabilities during the year is as follows: 2022 2021 £’000 £’000 At 1 July 35,546 (27,025) (Credited)/expensed to statement of profit or loss (Note 10) (29,431) 64,019 Expensed/(credited) to other comprehensive income (Note 10) 1,287 (1,448) At 30 June 7,402 35,546 17 Deferred tax (continued) The movement in US net deferred tax assets are as follows: Unrealized foreign exchange Net and Property, Foreign operating derivative Intangible Deferred plant and tax credits losses movements assets revenue equipment Other Total (1) £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 At 1 July 2020 (27,815) (9,537) (2,296) (9,070) (5,831) 3,118 (6,931) (58,362) Expensed to statement of profit or loss (Note 10) 31,779 6,328 1,577 9,070 5,831 241 6,931 61,757 (Credited)/expensed to other comprehensive income (Note 10) (3,964) (150) 719 — — — — (3,395) At 30 June 2021 — (3,359) — — — 3,359 — — Expensed/(credited) to statement of profit or loss (Note 10) — (4,492) 4,575 — — (83) — — At 30 June 2022 — (7,851) 4,575 — — 3,276 — — (1) The deferred tax assets have been written down in the year ended 30 June 2021 to the extent that they will not shelter profits arising from the unwind of the deferred tax liability. This is due to a change in the substantively enacted UK Corporation tax rate from 19% to 25% , effective April 2023. The current US federal corporate income tax rate is 21% . As a result of this change the US deferred tax asset is no longer forecast to give rise to a future economic benefit. It is expected that any future US tax payable will be sheltered by future foreign tax credits arising from UK tax payable. Future increases in the US federal corporate income tax rate could result in a reversal of the US deferred tax asset write down. The movement in UK net deferred tax liabilities are as follows: Accelerated Non Property Net tax qualifying fair value operating depreciation Intangibles property adjustment losses Other (3) Total (4) £’000 £’000 £’000 £’000 £’000 £’000 £’000 At 1 July 2020 608 9,881 13,290 13,735 — (6,177) 31,337 Expensed/(credited) to statement of profit or loss (Note 10) (2) 1 5,119 4,192 3,707 (12,180) 1,423 2,262 Credited to other comprehensive income (Note 10) — — — — — 1,947 1,947 At 30 June 2021 609 15,000 17,482 17,442 (12,180) (2,807) 35,546 (Credited)/expensed to statement of profit or loss (Note 10) (229) 1,359 (5) (631) (32,427) 2,502 (29,431) Expensed to other comprehensive income (Note 10) — — — — 40 1,247 1,287 At 30 June 2022 380 16,359 17,477 16,811 (44,567) 942 7,402 (2) An increase in the UK Corporation tax rate from 19% to 25%, effective April 2023, was substantively enacted in May 2021. This has resulted in the re-measurement of the UK deferred tax liability from 19% to 25% resulting in an additional charge of £11,224,000. (3) The “Other” deferred tax asset balance primarily comprises foreign exchange differences; fair value movements recognized in the hedging reserve; pensions not paid in the year and salaries not paid before 31 March 2023. (4) Of the total deferred tax liability, £ 7,402,000 is expected to be settled after more than one year. 17 Deferred tax (continued) Significant estimates - recognition of deferred tax assets Deferred tax assets are recognized only to the extent that it is probable that the associated deductions will be available for use against future profits and that there will be sufficient future taxable profit available against which the temporary differences can be utilized, provided the asset can be reliably quantified. In estimating future taxable profit, management use “base case” approved forecasts which incorporate a number of assumptions, including a prudent level of future uncontracted revenue in the forecast period. In arriving at a judgment in relation to the recognition of deferred tax assets, management considers the regulations applicable to tax and advice on their interpretation and potential future business planning. Future taxable income may be higher or lower than estimates made when determining whether it is appropriate to record a tax asset and the amount to be recorded. Furthermore, changes in the legislative framework or applicable tax case law may result in management reassessing the recognition of deferred tax assets in future periods. At 30 June 2022 there is an unrecognized US deferred tax asset of £87,609,000 which is detailed below (2021: £97,187,000 in respect of foreign tax credits in the US): Salary not Net paid with Foreign operating Intangible 2.5 months tax credits losses assets of year end Other Total £’000 £’000 £’000 £’000 £’000 £’000 Unrecognized US deferred tax asset 25,678 46,670 4,088 5,892 5,281 87,609 At 30 June 2022, the Group had no unrecognized UK deferred tax assets (2021: £nil). |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2022 | |
Inventories | |
Inventories | 18 Inventories 2022 2021 £’000 £’000 Finished goods 2,200 2,080 (i) Accounting policy Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished goods comprises cost of purchase and, where appropriate, other directly attributable costs. It excludes borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business less estimated costs necessary to make the sale. (ii) Amounts recognized in profit or loss Inventories recognized as an expense during the year ended 30 June 2022 amounted to £11,345,000 (2021: £5,061,000; 2020: £6,443,000). These were included in operating expenses. Write down of inventories to net realizable value amounted to £119,000 (2021: £194,000; 2020: £133,000). These were recognized as an expense during the year and included in operating expenses. Reversal of previous inventory write-down amounted to £194,000 (2021: £127,000 2020: £22,000). These were recognized as a credit during the year and included in operating expenses. |
Trade receivables
Trade receivables | 12 Months Ended |
Jun. 30, 2022 | |
Trade receivables. | |
Trade receivables | 19 Trade receivables 2022 2021 £’000 £’000 Trade receivables 91,207 75,745 Less: provision for impairment of trade receivables (12,240) (4,971) Net trade receivables 78,967 70,774 Less: non-current portion Trade receivables 29,757 20,404 Current trade receivables 49,210 50,370 (i) Accounting policy Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Trade receivables are recognized initially at fair value. The Group holds trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest method, less provision for impairment. Details about the Group’s impairment policies and the calculation of the provision for impairment are provided in Note 30.1(b). If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets. (ii) Amounts included in trade receivables Net trade receivables include transfer fees receivable from other football clubs of £50,418,000 (2021: £43,153,000) of which £29,757,000 (2021: £20,404,000) is receivable after more than one year. Net trade receivables also include £19,903,000 (2021: £19,032,000) of deferred revenue that is contractually payable to the Group, but recorded in advance of the earnings process, with corresponding amounts recorded as contract liabilities — deferred revenue. (iii) Fair value of trade receivables The fair value of net trade receivables as at 30 June 2022 was £80,150,000 (2021: £71,819,000) before discounting of cash flows. (iv) Impairment and risk exposure Information about the impairment of trade receivables, their credit quality and the Group’s exposure to foreign exchange risk, interest rate risk and credit risk can be found in Note 30. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Jun. 30, 2022 | |
Derivative financial instruments. | |
Derivative financial instruments | 20 Derivative financial instruments The Group has the following derivative financial instruments: 2022 2021 Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000 Used for hedging: Interest rate swaps 2,458 — — (5,121) Forward foreign exchange contracts — — — (28) At fair value through profit or loss: Embedded foreign exchange derivatives 20,286 — 809 (527) Forward foreign exchange contracts 315 (81) 8 (58) 23,059 (81) 817 (5,734) Less non-current portion: Used for hedging: Interest rate swaps 2,458 — — (5,121) At fair value through profit or loss: Embedded foreign exchange derivatives 13,786 — 499 (351) Forward foreign exchange contracts 218 (49) — — Non-current derivative financial instruments 16,462 (49) 499 (5,472) Current derivative financial instruments 6,597 (32) 318 (262) (i) 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. (ii) Valuation techniques used to determine fair value All of the financial instruments detailed above are included in Level 2. Specific valuation techniques used to value financial instruments include: ● The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves; ● The fair value of embedded foreign exchange derivatives is determined as the change in the fair value of the embedded derivative at the contract inception date and the fair value of the embedded derivative at the end of the reporting period; the fair value of the embedded derivative is determined using forward exchange rates with the resulting value discounted to present value; ● The fair value of forward foreign exchange contracts is determined using forward exchange rates at the end of the reporting period, with the resulting value discounted back to present value. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Jun. 30, 2022 | |
Cash and cash equivalents | |
Cash and cash equivalents | 21 Cash and cash equivalents 2022 2021 £’000 £’000 Cash at bank and in hand 121,223 110,658 Cash and cash equivalents for the purposes of the consolidated statement of cash flows are as above. |
Share capital
Share capital | 12 Months Ended |
Jun. 30, 2022 | |
Share capital. | |
Share capital | 22 Share capital Number of shares Ordinary shares (thousands) £’000 At 1 July 2020 164,622 53 Employee share-based compensation awards — 55 — At 30 June 2021 164,677 53 Employee share-based compensation awards — 68 — At 30 June 2022 164,745 53 The Company has two classes of ordinary shares outstanding: Class A ordinary shares and Class B ordinary shares, each with a par value of $0.0005 per two-thirds As of 30 June 2022, the Company’s issued share capital comprised 54,537,360 (2021: 44,969,701) Class A ordinary shares and 110,207,613 (2021: 119,707,613) Class B ordinary shares. During the year ended 30 June 2022, 9,500,000 Class B ordinary shares were converted into an equivalent number of Class A ordinary shares. 1,682,896 Class A ordinary shares are currently held in treasury. Distributable reserves have been reduced by £21,305,000, being the consideration paid for these shares. See Note 23. |
Treasury shares
Treasury shares | 12 Months Ended |
Jun. 30, 2022 | |
Treasury shares. | |
Treasury shares | 23 Treasury shares Number of shares (thousands) £’000 At 30 June 2022 and 30 June 2021 (1,683) (21,305) |
Trade and other payables
Trade and other payables | 12 Months Ended |
Jun. 30, 2022 | |
Trade and other payables | |
Trade and other payables | 24 Trade and other payables 2022 2021 £’000 £’000 Trade payables 192,863 143,400 Other payables 18,982 22,297 Accrued expenses 89,016 61,990 Social security and other taxes 22,073 32,491 322,934 260,178 Less: non-current portion Trade payables 101,301 66,778 Other payables 1,046 739 Non-current trade and other payables 102,347 67,517 Current trade and other payables 220,587 192,661 (i) Accounting policy Trade and other payables are liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method. They are classified as current liabilities if payment is due within one year or less. If not they are presented as non-current liabilities. (ii) Amounts included in trade payables Trade payables include transfer fees and other associated costs in relation to the acquisition of registrations of £181,545,000 (2021: £136,309,000) of which £101,301,000 (2021: £66,778,000) is due after more than one year. Of the amount due after more than one year, £54,732,000 (2021: £40,228,000) is expected to be paid between 1 and 2 years, and the balance of £46,569,000 (2021: £26,550,000) is expected to be paid between 2 and 5 years. (iii) Amounts included in accrued expenses Accrued expenses include £828,000 (2021: £616,000) related to share-based payment transactions expected to be cash-settled. (iv) Fair value of trade payables The fair value of trade payables as at 30 June 2022 was £196,396,000 (2021: £145,775,000) before discounting of cash flows. The fair value of other payables is not materially different to their carrying amount. |
Borrowings
Borrowings | 12 Months Ended |
Jun. 30, 2022 | |
Borrowings | |
Borrowings | 25 Borrowings 2022 2021 £’000 £’000 Senior secured notes 347,173 304,474 Secured term loan facility 183,192 160,575 Revolving facilities 100,000 60,000 Accrued interest on senior secured notes and revolving facilities 5,757 5,187 636,122 530,236 Less: non-current portion Senior secured notes 347,173 304,474 Secured term loan facility 183,192 160,575 Non-current borrowings 530,365 465,049 Current borrowings 105,757 65,187 (i) Secured borrowings and assets pledged as security The senior secured notes of £347,173,000 (2021: £304,474,000) is stated net of unamortized issue costs amounting to £2,591,000 (2021: £3,050,000). The outstanding principal amount of the senior secured notes is $425,000,000 (2021: $425,000,000). The senior secured notes have a fixed coupon rate of 3.79% per annum and interest is paid semi-annually. The senior secured notes mature on 25 June 2027. The Group has the option to redeem the senior secured notes in part, in an amount not less than 5% of the aggregate principal amount of the senior secured notes then outstanding, or in full, at any time at 100% of the principal amount plus a “make-whole” premium of an amount equal to the discounted value (based on the US Treasury rate) of the remaining interest payments due on the senior secured notes up to 25 June 2027. The senior secured notes were issued by our wholly-owned subsidiary, Manchester United Football Club Limited, and are guaranteed by Red Football Limited, Red Football Junior Limited, Manchester United Limited and MU Finance Limited and are secured against substantially all of the assets of those entities and Manchester United Football Club Limited. These entities are all wholly-owned subsidiaries of Manchester United plc. The secured term loan facility of £183,192,000 (2021: £160,575,000) is stated net of unamortized issue costs amounting to £1,979,000 (2021: £2,233,000). The outstanding principal amount of the secured term loan facility is $225,000,000 (2021: $225,000,000). The secured term loan facility attracts interest of US dollar LIBOR plus an applicable margin of between 1.25% and 1.75% per annum and interest is paid monthly. The remaining balance of the secured term loan facility is repayable on 26 August 2029, although the Group has the option to repay the secured term loan facility at any time before then. The secured term loan facility was provided to our wholly-owned subsidiary, Manchester United Football Club Limited, and is guaranteed by Red Football Limited, Red Football Junior Limited, Manchester United Limited, MU Finance Limited and Manchester United Football Club Limited and is secured against substantially all of the assets of each of those entities. These entities are all wholly-owned subsidiaries of Manchester United plc. 25 Borrowings (continued) (i) Secured borrowings and assets pledged as security (continued) The Group also has £100,000,000 (2021: £60,000,000) in outstanding loans and £200,000,000 (2021: £140,000,000) in borrowing capacity under our revolving facilities. The facilities are scheduled to expire on 25 June 2027. The revolving facilities are guaranteed by Red Football Limited, Red Football Junior Limited, Manchester United Limited, MU Finance Limited and Manchester United Football Club Limited and secured against substantially all of the assets of those entities. These entities are wholly-owned subsidiaries of Manchester United plc. The Group’s revolving facilities, the secured term loan facility and the note purchase agreement governing the senior secured notes each contain certain covenants, including a financial maintenance covenant that requires the Group to maintain a consolidated profit/loss for the period before depreciation, amortization of, and profit on disposal of, registrations, exceptional items, net finance costs and tax (“EBITDA”) of not less than £65 million for each 12 month testing period (with the flexibility to reduce this to £25 million during the period 31 March 2021 to 30 September 2022 inclusive), as well as customary covenants, including (but not limited to) restrictions on incurring additional indebtedness; paying dividends or making other distributions, repurchasing or redeeming our capital stock or making other restricted payments; selling assets, including capital stock of restricted subsidiaries; entering into agreements that restrict distributions of restricted subsidiaries; consolidating, merging, selling or otherwise disposing of all or substantially all assets; entering into sale and leaseback transactions; entering into transactions with affiliates; and incurring liens. (ii) Compliance with covenants The Group has complied with all covenants under its revolving facilities, the secured term loan facility and the note purchase agreement governing the senior secured notes during the 2022 and 2021 reporting period. |
Provisions
Provisions | 12 Months Ended |
Jun. 30, 2022 | |
Provisions | |
Provisions | 26 Provisions Other (1) Tax (2) Total £’000 £’000 £’000 At 1 July 2020 — — — Transfer from accruals (3) 695 4,094 4,789 (Credited)/charged to profit or loss: Reassessment of provisions — (1,036) (1,036) Additional provisions recognized 27 1,022 1,049 At 30 June 2021 722 4,080 4,802 Charged to profit or loss: Reassessment of provisions 421 1,259 1,680 Additional provisions recognized — 6,162 6,162 At 30 June 2022 1,143 11,501 12,644 Less: non-current portion Provisions 85 11,501 11,586 Current provisions 1,058 — 1,058 (1) Other provision includes, amongst other items, make good provisions as the Group is required to restore the leased premises of its office spaces to their original condition at the end of the respective lease terms. A provision has been recognized based upon the estimated expenditure required to remove any leasehold improvements. The remaining term on such leased properties is between 5 months and 3 years. (2) Provision in respect of player related tax matters. The timing of cash outflows is by its nature uncertain and therefore a reliable estimate of the expected timing of such cash outflows cannot be made. This provision is therefore recognized as non-current unless management expects it to be paid within 12 months. (3) |
Cash flow information
Cash flow information | 12 Months Ended |
Jun. 30, 2022 | |
Cash flow information | |
Cash flow information | 27 Cash flow information 27.1 Cash generated from operations 2022 2021 2020 Note £’000 £’000 £’000 Loss before income tax (149,623) (24,027) (20,818) Adjustments for: Depreciation 13, 14, 15 14,314 14,959 14,756 Impairment charge 15 — — 3,787 Amortization 16 151,462 124,398 126,756 Profit on disposal of intangible assets 8 (21,935) (7,381) (18,384) Net finance costs/(income) 9 62,239 (12,899) 26,039 Non-cash employee benefit expense - equity-settled share-based payments 28 198 2,085 818 Foreign exchange losses/(gains) on operating activities 50 874 (816) Reclassified from hedging reserve (672) 2,239 12,180 Changes in working capital: Inventories (120) 106 (56) Prepayments (8,825) (282) 6,527 Contract assets – accrued revenue 4,305 5,422 (6,434) Trade receivables (1) (520) 71,695 (83,197) Other receivables (1,109) (221) 949 Contract liabilities – deferred revenue 41,618 (49,407) (33,167) Trade and other payables (1) 22,480 5,415 (11,371) Provisions 7,842 4,802 — Cash generated from operations 121,704 137,778 17,569 (1) These amounts exclude non-cash movements and movements in respect of items reported elsewhere in the consolidated statement of cash flows, primarily in investing activities (where the timing of acquisitions and disposals and related cash flows can differ), resulting in: ● an increase in changes to trade receivables of £7,673,000 (2021: decrease of £17,210,000 ; 2020: increase of £42,742,000 ); and ● an increase in changes to trade and other payables of £40,276,000 (2021: decrease of £12,652,000 ; 2020: decrease of £30,784,000 ). 27.2 Net debt reconciliation Net debt is defined as non-current and current borrowings minus cash and cash equivalents. Net debt is a financial performance indicator that is used by the Group’s management to monitor liquidity risk. The Group believes that net debt is meaningful for investors as it provides a clear overview of the net indebtedness position of the Group and is used by the Chief Operating Decision Maker in managing the business. 27 Cash flow information (continued) 27.2 Net debt reconciliation (continued) The following tables provide an analysis of net debt and the movements in net debt for each of the periods presented. Non-current Current Cash and cash borrowings borrowings equivalents Total £’000 £’000 £’000 £’000 Net debt at 1 July 2020 520,010 5,605 (51,539) 474,076 Cash flows (625) 42,321 (61,351) (19,655) Other changes (54,336) 17,261 2,232 (34,843) Net debt at 30 June 2021 465,049 65,187 (110,658) 419,578 Cash flows — 40,000 (7,980) 32,020 Other changes 65,316 570 (2,585) 63,301 Net debt at 30 June 2022 530,365 105,757 (121,223) 514,899 Other changes largely comprise foreign exchange gains or losses arising on re-translation of the US dollar denominated secured term loan facility and senior secured notes, incurrence and amortization of debt issue costs and the movement on accrued interest on senior secured notes (which will be presented as operating cash flows in the statement of cash flows when paid), partially offset by foreign exchange gain or losses arising on translation of foreign currency denominated cash and cash equivalents. |
Share-based payments
Share-based payments | 12 Months Ended |
Jun. 30, 2022 | |
Share-based payments | |
Share-based payments | 28 Share-based payments The Company operates a share-based award plan, the 2012 Equity Incentive Award Plan (the “Equity Plan”), established in 2012. Under the Equity Plan, 16,000,000 Class A ordinary shares have initially been reserved for issuance pursuant to a variety of share-based awards, including share options, share appreciation rights, or SARs, restricted share awards, restricted share unit awards, deferred share awards, deferred share unit awards, dividend equivalent awards, share payment awards and other share-based awards. Of these reserved shares, 14,788,222 remain available for issuance. Certain directors, members of executive management and selected employees have been awarded Class A ordinary shares, pursuant to the Equity Plan. These shares are subject to varying vesting schedules over multi-year periods. Employees are not entitled to dividends until the awards vest. The fair value of these shares was the quoted market price on the date of award, adjusted where applicable for expected dividends i.e. the fair value of the awards was reduced. It is assumed that semi-annual dividends will be paid for the foreseeable future. The Company may choose whether to settle the awards wholly in shares or reduce the number of shares awarded by a value equal to the recipient’s liability to any income tax and social security contributions that would arise if all the shares due to vest had vested. Accordingly, the awards may be either equity-settled or cash-settled. Movements in the number of share awards outstanding and therefore potentially issuable as new shares are as follows: Number of Class A ordinary shares Gross award Post net settlement At 1 July 2021 373,973 199,062 Awarded 233,399 98,888 Vested (166,215) (67,659) Forfeited (72,723) (38,240) At 30 June 2022 368,434 192,051 The fair value of the shares awarded during the year was $10.59 (£8.72) (2021: $14.66 (£10.61)) per share. For the year ended 30 June 2022, the Group recognized total expenses related to equity-settled share-based payment transactions of £198,000 (2021: £1,386,000; 2020: £818,000) and total expenses related to cash-settled share-based payment transactions of £828,000 (2021: £616,000; 2020: £617,000). |
Pension arrangements
Pension arrangements | 12 Months Ended |
Jun. 30, 2022 | |
Pension arrangements | |
Pension arrangements | 29 Pension arrangements 29.1 Defined benefit scheme The Group participates in the Football League Pension and Life Assurance Scheme (‘the Scheme’). The Scheme is a funded multi-employer defined benefit scheme 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 2020 where the total deficit on the ongoing valuation basis was £27.5 million. The accrual of benefits ceased within the Scheme on 31 August 1999, therefore there are no contributions relating to the current accrual. The Group pays monthly contributions based on a notional split of the total expenses and deficit contributions of the Scheme. A charge of £865,000 (2021: £nil The Group currently pays total contributions of £532,000 per annum and this amount will increase by 5% per annum from September 2022. Based on the actuarial valuation assumptions, this will be sufficient to pay off the deficit by 30 April 2025. As of 30 June 2022, the present value of the Group’s outstanding contributions (i.e. its future liability) is £1,602,000 (2021: £1,257,000). This amounts to £556,000 (2021: £518,000) due within one year and £1,046,000 (2021: £739,000) due after more than one year and is included within other payables. The funding objective of the Trustees of the Scheme is to have sufficient assets to meet the Technical Provisions of the Scheme. In order to remove the deficit revealed at the previous actuarial valuation (dated 31 August 2020), deficit contributions are payable by all participating clubs. Payments are made in accordance with a pension contribution schedule. As the Scheme is closed to accrual, there are no additional costs associated with the accruing of members’ future benefits. In the case of a club being relegated from the Football League and being unable to settle its debt then the remaining clubs may, in exceptional circumstances, have to share the deficit. Upon the wind-up of the Scheme with a surplus, any surplus will be used to augment benefits. Under the more likely scenario of there being a deficit, this will be split amongst the clubs in line with their contribution schedule. Should an individual club choose to leave the Scheme, they would be required to pay their share of the deficit based on a proxy buyout basis (i.e. valuing the benefits on a basis consistent with buying out the benefits with an insurance company). 29.2 Defined contribution schemes Contributions made to defined contribution pension arrangements are charged to the statement of profit or loss in the period in which they become payable and for the year ended 30 June 2022 amounted to £3,731,000 (2021: £3,362,000; 2020: £3,287,000). As at 30 June 2022, contributions of £532,000 (2021: £475,000) due in respect of the current reporting period had not been paid over to the pension schemes. The assets of all pension schemes to which the Group contributes are held separately from the Group in independently administered funds. |
Financial risk management
Financial risk management | 12 Months Ended |
Jun. 30, 2022 | |
Financial risk management | |
Financial risk management | 30 Financial risk management 30.1 Financial risk factors This note explains the Group’s exposure to financial risks and how those risks could affect the Group’s future financial performance. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance. The Group uses derivative financial instruments to hedge certain risk exposures. The policy for each financial risk is described in more detail below. a) (i) Foreign exchange risk The Group is exposed to the following foreign exchange risks: ● Significant revenue received in Euros primarily as a result of participation in UEFA club competitions. During the year ended 30 June 2022 the Group recognized a total of €79.6 million of revenue denominated in Euros (2021: €84.1 million; 2020: €19.2 million). The Group ordinarily seeks to hedge the majority of the foreign exchange risk of this revenue either by using contracted future foreign exchange expenses (including player transfer fee commitments) or by placing forward contracts, at the point at which it becomes reasonably certain that it will receive the revenue. ● Significant amount of commercial revenue denominated in US dollars. During the year ended 30 June 2022 the Group recognized a total of $106.1 million of revenue denominated in US dollars (2021: $59.6 million; 2020: $147.5 million). The foreign exchange risk on these US dollar revenues is hedged to the extent possible (see Note 30.2 below). ● Risks arising from the US dollar denominated secured term loan facility and senior secured notes (see Note 25). At 30 June 2022 the secured term loan facility and senior secured notes included principal amounts of $650.0 million (2021: $650.0 million) denominated in US dollars. The foreign exchange risk on these US dollar borrowings (net of the Group’s US dollar cash balances) is hedged to the extent possible (see Note 30.2 below). Interest is paid on these borrowings in US dollars. Foreign exchange gains or losses arising on re-translation of our unhedged US dollar borrowings are recognized in the statement of profit or loss immediately and are subject to UK Corporation tax. From time to time, we may use foreign currency options to manage the unfavourable impact that foreign exchange volatility may have on our cash flows. ● Payments and receipts of transfer fees may also give rise to foreign exchange exposures. Due to the nature of player transfers the Group may not always be able to predict such cash flows until the transfer has taken place. Where possible and depending on the payment profile of transfer fees payable and receivable the Group will seek to hedge future payments and receipts at the point it becomes reasonably certain that the payments will be made or the income will be received. When hedging income to be received, the Group also takes account of the credit risk of the counterparty. ● Payments of operating expenses may also give rise to foreign exchange exposures. We seek to hedge future payments either by using future foreign exchange revenue or by placing forward contracts. It is the policy of the Group to enter into forward foreign exchange contracts to cover specific foreign exchange payments and receipts. The following table details the forward foreign exchange contracts outstanding at the reporting date: 2022 2021 Average Foreign Notional Fair Average Foreign Notional Fair exchange currency value value exchange currency value value rate €’000 £’000 £’000 rate €’000 £’000 £’000 Buy Euro 1.1675 (86,262) (73,885) 234 1.1573 (34,576) (29,875) (78) 30 Financial risk management (continued) 30.1 Financial risk factors (continued) a) Market risk (continued) (i) Foreign exchange risk (continued) The Group also has a number of embedded foreign exchange derivatives in host Commercial revenue contracts. These are recognized separately in the financial statements at fair value since they are not closely related to the host contract. As of 30 June 2022 the fair value of such derivatives was an asset of £20,286,000 and a liability of £nil Further, we are exposed to cash flow risk on fluctuations in foreign exchange rates. Foreign exchange gains or losses arising on re-translation of our unhedged US dollar borrowings are recognized in the statement of profit or loss immediately and are subject to UK Corporation tax. From time to time, we may use foreign currency options to manage the unfavorable impact foreign exchange volatility may have on our cash flows. The Group’s exposure to material foreign currency risk at the end of the reporting period, expressed in pounds sterling, was as follows: 2022 2021 Euro US Dollar Euro US Dollar £’000 £’000 £’000 £’000 Contract assets — 1,890 250 4,477 2,499 Trade receivables 28,832 15,575 44,855 10,274 Cash and cash equivalents 49,277 32,460 57,004 17,290 Derivative financial assets — 2,458 — — Trade and other payables (120,994) (149) (90,608) (454) Borrowings — (536,038) — (470,068) Derivative financial liabilities — — — (5,121) (40,995) (485,444) 15,728 (445,580) Sensitivity As shown in the table above, the Group is primarily exposed to changes in Euro/GBP and USD/GBP exchange rates. The sensitivity of equity and post-tax profit as at 30 June 2022 was as follows: ● if pounds sterling had strengthened by 10% against the Euro, with all other variables held constant, equity and post-tax profit for the year would have been £3.0 million higher (2021: £1.1 million lower ). ● if pounds sterling had weakened by 10% against the Euro, with all other variables held constant, equity and post-tax profit for the year would have been £3.7 million lower (2021: £1.7 million higher ). ● if pounds sterling had strengthened by 10% against the US dollar, with all other variables held constant, equity and post-tax profit for the year would have been £35.7 million higher (2021: £31.9 million higher ). ● if pounds sterling had weakened by 10% against the US dollar, with all other variables held constant, equity and post-tax profit for the year would have been £43.7 million lower (2021: £39.2 million lower ). 30 Financial risk management (continued) 30.1 Financial risk factors (continued) a) Market risk (continued) (ii) Cash flow and fair value interest rate risk The Group has no significant interest bearing assets other than cash on deposit which attracts interest at a small margin above UK base rates. The Group’s interest rate risk arises from its borrowings. Borrowings issued at variable interest rates expose the Group to cash flow interest rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. The Group’s borrowings are denominated in US dollars and pounds sterling. Full details of the Group’s borrowings and associated interest rates can be found in Note 25. The Group manages its cash flow interest rate risk where considered appropriate using interest rate swaps. Such interest rate swaps have the economic effect of converting a portion of variable rate borrowings from floating rates to fixed rates. The impact on equity and post-tax profit of a 1.0% shift in interest rates would not be material to any periods presented. Details of the interest rate swaps committed to at the reporting date are provided in Note 30.2 below. b) Credit risk is managed on a Group basis and arises from contract assets, trade receivables, other receivables, favorable derivative financial instruments, and cash and cash equivalents. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected provision for impairment for all trade receivables, other receivables and contract assets. To measure the expected credit losses, trade receivables, other receivables and contract assets have been grouped based on shared risk characteristics and the days past due. Contract assets relate to unbilled revenue and have substantially the same risk characteristics as the trade receivables for the same types of contracts. Gross trade receivables can be analysed by due date and whether or not impaired as follows: 2022 2021 £’000 £’000 Neither past due nor impaired 64,434 58,579 Past due, not impaired 14,533 12,195 Not past due, impaired 110 549 Past due, impaired 12,130 4,422 Gross trade receivables 91,207 75,745 A substantial majority of the Group’s Broadcasting revenue is derived from media contracts negotiated by the Premier League and UEFA with media distributors, and although the Premier League obtains guarantees to support certain of its media contracts, typically in the form of letters of credit issued by commercial banks, it remains the Group’s single largest credit exposure. The Group derives commercial and sponsorship revenue from certain corporate sponsors, including global, regional, mobile, media and supplier sponsors in respect of which the Group may manage its credit risk by seeking advance payments, installments and/or bank guarantees where appropriate. The substantial majority of this revenue is derived from a limited number of sources. The Group is also exposed to other football clubs globally for the payment of transfer fees on players. Depending on the transaction, some of these fees are paid to the Group in installments. The Group tries to manage its credit risk with respect to those clubs by requiring payments in advance or, in the case of payments on installment, requiring bank guarantees on such payments in certain circumstances. However, the Group cannot ensure these efforts will eliminate its credit exposure to other clubs. A change in credit quality at one of the media broadcasters for the Premier League or UEFA, one of the Group’s sponsors or a club to whom the Group has sold a player can increase the risk that such counterparty is unable or unwilling to pay amounts owed to the Group. Derivative financial instruments and cash and cash equivalents are placed with counterparties with an investment grade Moody’s rating. 30 Financial risk management (continued) 30.1 Financial risk factors (continued) b) Credit risk (continued) Credit terms offered by the Group vary depending on the type of sale. For seasonal match day facilities and sponsorship contracts, payment is usually required in advance of the season to which the sale relates. For other sales the credit terms typically range from 14 - 30 days, although specific agreements may be negotiated in individual contracts with terms beyond 30 days. For player transfer activities, credit terms are determined on a contract by contract basis. Of the net total trade receivable balance of £78,967,000 (2021: £70,774,000), £50,418,000 (2021: £43,153,000) relates to amounts receivable from various other football clubs in relation to player trading. Management considers that, based on historical information about default rates, the current strength of relationships (a number of which are recurring long term relationships), and forward-looking information, the credit quality of trade receivables and other receivables that are neither past due nor impaired, and for contract assets, is good. Trade receivables that are past due but not impaired relate to independent customers for whom there is no recent history of default. Accordingly, the identified provision for impairment for these receivables was immaterial. The identified provision for impairment of trade receivables that are past due and impaired is 100%. The closing provision for impairment of trade receivables as of 30 June 2022 reconciles to the opening provision for impairment as follows: 2022 2021 £’000 £’000 Provision as of 1 July 4,971 13,150 Increase in provision recognized in profit or loss during the year 2,277 1,054 Unused amount reversed – cash received (93) (188) Receivables written off during the year as uncollectible (764) (9,003) Receivables offset against contract liabilities - deferred revenue 5,842 90 Foreign exchange gains/(losses) on retranslation recognized in profit or loss during the year 7 (132) Provision as of 30 June 12,240 4,971 Trade receivables and contact assets are written off when there is no reasonable expectation of recovery. The creation and release of provision for impaired receivables have been included in ‘other operating expenses’ in the statement of profit or loss. While other receivables, favorable derivative financial instruments, and cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the identified provision for impairment on these items was immaterial. c) The Group’s policy is to maintain a balance of continuity of funding and flexibility through the use of secured term loan facilities, senior secured notes and other borrowings as applicable. The annual cash flow is cyclical in nature with a significant portion of cash inflows ordinarily being received prior to the start of the playing season. Ultimate responsibility for liquidity risk management rests with the executive directors of Manchester United plc. The directors use management information tools including budgets and cash flow forecasts to constantly monitor and manage current and future liquidity. 30 Financial risk management (continued) 30.1 Financial risk factors (continued) c) Liquidity risk (continued) Cash flow forecasting is performed on a regular basis which includes rolling forecasts of the Group’s liquidity requirements to ensure that the Group has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. The Group’s borrowing facilities are described in Note 25. Financing facilities have been agreed at appropriate levels having regard to the Group’s operating cash flows and future development plans. Surplus cash held by the operating entities over and above that required for working capital management are invested by Group finance in interest bearing current accounts or money market deposits. As of 30 June 2022, the Group held cash and cash equivalents of £121,223,000 (2021: £110,658,000). The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows including interest and therefore differs from the carrying amounts in the consolidated balance sheet. Less than 1 Between 1 Between 2 year and 2 years and 5 years Over 5 years £’000 £’000 £’000 £’000 Trade and other payables excluding social security and other taxes (1) 198,693 56,418 49,294 — Borrowings 120,091 19,660 57,979 552,422 Lease liabilities 1,673 514 248 3,543 320,457 76,592 107,521 555,965 Non-trading derivative financial instruments (2) Cash inflow (1,294) (1,336) (63) — At 30 June 2022 319,163 75,256 107,458 555,965 Trade and other payables excluding social security and other taxes (1) 160,375 41,794 27,908 — Borrowings 77,203 16,646 45,142 489,983 Lease liabilities 1,488 493 487 3,642 239,066 58,933 73,537 493,625 Non-trading derivative financial instruments (2) Cash outflow 1,793 1,707 1,707 — Cash inflow (8) — — — At 30 June 2021 240,851 60,640 75,244 493,625 (1) Social security and other taxes are excluded from trade and other payables balance, as this analysis is required only for financial instruments. (2) Non-trading derivatives are included at their fair value at the reporting date. 30.2 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). 30 Financial risk management (continued) 30.2 Hedging activities (continued) The Group hedges the foreign exchange risk on contracted future US dollar revenues whenever possible using the Group’s US dollar net borrowings as the hedging instrument. The foreign exchange gains or losses arising on re-translation of the Group’s US dollar net borrowings used in the hedge are initially recognized in other comprehensive income, rather than being recognized in the statement of profit or loss immediately. Amounts previously recognized in other comprehensive income and accumulated in the hedging reserve are subsequently reclassified into the statement of profit or loss in the same accounting period, and within the same statement of profit or loss line (i.e. commercial revenue), as the underlying future US dollar revenues, which given the varying lengths of the commercial revenue contracts will be between July 2022 to June 2025. 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 income/costs). The table below details the net borrowings being hedged at the reporting date: 2022 2021 $’000 $’000 USD borrowings 650,000 650,000 Hedged USD cash (37,000) (23,700) Net USD debt 613,000 626,300 Hedged future USD revenues (22,800) (61,453) Unhedged USD borrowings (1) 590,200 564,847 Closing exchange rate 1.2151 1.3820 (1) The Group hedges its cash flow interest rate risk where considered appropriate using interest rate swaps. Such interest rate swaps have the economic effect of converting a portion of variable rate borrowings from floating rates to fixed rates. The effective portion of changes in the fair value of the interest rate swap is initially recognized in other comprehensive income, rather than being recognized in the statement of profit or loss immediately. Amounts previously recognized in other comprehensive income and accumulated in the hedging reserve are subsequently reclassified into the statement of profit or loss in the same accounting period, and within the same statement of profit or loss line (i.e. finance costs), as the underlying interest payments, which given the term of the swap will be between July 2022 to June 2024. The following table details the interest rate swaps at the reporting date that are used to hedge borrowings: 2022 2021 Current hedged principal value of loan outstanding ($‘000) 150,000 150,000 Rate received 1 month $ LIBOR 1 month $ LIBOR Rate paid Fixed 2.032% Fixed 2.032% Expiry date 30 June 2024 30 June 2024 As of 30 June 2022, the fair value of the above interest rate swaps was an asset of £2,458,000 (2021: liability of £5,121,000). The Group also ordinarily 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. 30 Financial risk management (continued) 30.2 Hedging activities (continued) Details of movements on the hedging reserve are as follows: Future US dollar Interest Total, Total, revenues rate swap Other before tax Tax after tax £’000 £’000 £’000 £’000 £’000 £’000 Balance at 1 July 2019 (27,337) (2,298) 202 (29,433) (6,111) (35,544) Exchange differences on hedged foreign exchange risks (2,818) — 353 (2,465) — (2,465) Reclassified to profit or loss 12,214 — (34) 12,180 — 12,180 Change in fair value — (6,838) — (6,838) — (6,838) Tax relating to above — — — — 102 102 Movement recognized in other comprehensive income 9,396 (6,838) 319 2,877 102 2,979 Balance at 30 June 2020 (17,941) (9,136) 521 (26,556) (6,009) (32,565) Exchange differences on hedged foreign exchange risks 4,325 — (2,490) 1,835 — 1,835 Reclassified to profit or loss 14,956 — 1,892 16,848 — 16,848 Change in fair value — 4,015 — 4,015 — 4,015 Tax relating to above — — — — (569) (569) Movement recognized in other comprehensive income 19,281 4,015 (598) 22,698 (569) 22,129 Balance at 30 June 2021 1,340 (5,121) (77) (3,858) (6,578) (10,436) Exchange differences on hedged foreign exchange risks (1,733) — 300 (1,433) — (1,433) Reclassified to profit or loss (770) — (228) (998) — (998) Change in fair value — 7,579 — 7,579 — 7,579 Tax relating to above — — — — (1,287) (1,287) Movement recognized in other comprehensive income (2,503) 7,579 72 5,148 (1,287) 3,861 Reclassified — — 7,525 7,525 — 7,525 Balance at 30 June 2022 (1,163) 2,458 7,520 8,815 (7,865) 950 Based on exchange rates existing as of 30 June 2022, a 10% appreciation of the UK pounds sterling compared to the US dollar would have resulted in a credit to the hedging reserve in respect of future US dollar revenues of approximately £1,706,000 (2021: credit of £4,042,000) before tax. Conversely, a 10% depreciation of the UK pounds sterling compared to the US dollar would have resulted in a debit to the hedging reserve in respect of US dollar future revenues of approximately £2,085,000 (2021: debit of £4,941,000) before tax. 30.3 Capital risk management The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to shareholders through the optimisation of the debt and equity balance. Capital is calculated as “equity” as shown in the balance sheet plus net debt. Net debt is calculated as total borrowings (including current and non-current borrowings as shown in the balance sheet) less cash and cash equivalents and is used by management in monitoring the net indebtedness of the Group. A reconciliation of net debt is shown in Note 27.2. As of 30 June 2022, the Group had total borrowings of £636.1 million (2021: £530.2 million). As described in Note 25 above, the Group’s revolving facilities, the secured term loan facility and the note purchase agreement governing the senior secured notes each contain certain covenants that restrict the activities of Red Football Limited and its subsidiaries. As of 30 June 2022, the Group was in compliance with all covenants under its revolving facilities, the secured term loan facility and the note purchase agreement governing the senior secured notes. |
Contingent liabilities and cont
Contingent liabilities and contingent assets | 12 Months Ended |
Jun. 30, 2022 | |
Contingent liabilities and contingent assets | |
Contingent liabilities and contingent assets | 31 Contingent liabilities and contingent assets 31.1 Contingent liabilities The Group had contingent liabilities at 30 June 2022 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 £112,372,000 (2021: £91,993,000). No material adjustment was required to the amounts included in the cost of registrations during the year (2021: no material adjustments) and consequently there was no material impact on the amortization of registration charges in the statement of profit or loss (2021: no material impact). As of 30 June 2022, the potential amount payable by type of condition and category of player was: First team squad Other Total £’000 £’000 £’000 Type of condition: MUFC appearances/team success/new contract 58,462 10,609 69,071 International appearances 10,158 1,156 11,314 Awards 31,987 — 31,987 100,607 11,765 112,372 As of 30 June 2021, the potential amount payable by type of condition and category of player was: First team squad Other Total £’000 £’000 £’000 Type of condition: MUFC appearances/team success/new contract 39,792 9,285 49,077 International appearances 11,182 45 11,227 Awards 31,689 — 31,689 82,663 9,330 91,993 (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. (iii) Legal matters While we are involved from time to time in various claims and lawsuits arising in the normal course of business, there are no pending claims or legal proceedings to which the Group is a party which we expect to have a material effect on the Group’s financial position, results of operations or cash flows. 31 Contingent liabilities and contingent assets (continued) 31.2 Contingent assets (iii) Legal matters(Continued) Under the terms of certain contracts with other football clubs in respect of player transfers, additional amounts would be payable to the Group if certain specific performance conditions are met. In accordance with the recognition criteria for contingent assets, such amounts are only disclosed by the Group when probable and recognized when virtually certain. As of 30 June 2022, the amount of such receipt considered to be probable was £nil |
Commitments
Commitments | 12 Months Ended |
Jun. 30, 2022 | |
Commitments. | |
Commitments | 32 Commitments 32.1 Capital commitments As of 30 June 2022, the Group had contracted capital expenditure relating to property, plant and equipment amounting to £1,185,000 (2021: £1,240,000) and to other intangible assets amounting to £1,476,000 (2021: £479,000). These amounts are not recognized as liabilities. 32.2 Non-cancellable operating leases (i) The group as lessor The Group leases out its investment properties. The minimum rentals in relation to non-cancellable operating leases are receivable as follows: 2022 2021 £’000 £’000 Within 1 year 1,734 1,888 Later than 1 year but not later than 5 years 3,423 4,256 Later than 5 years 10,665 11,390 15,822 17,534 |
Events occurring after the repo
Events occurring after the reporting period | 12 Months Ended |
Jun. 30, 2022 | |
Events occurring after the reporting period | |
Events occurring after the reporting period | 33 Events occurring after the reporting period 33.1 Registrations The playing registrations of certain footballers have been disposed of on a permanent or temporary basis, subsequent to 30 June 2022, for total proceeds, net of associated costs, of £16,590,000. The associated net book value was £1,075,000. Also subsequent to 30 June 2022, solidarity contributions, training compensation, sell-on fees and contingent consideration totalling £192,000, became receivable in respect of previous playing registration disposals. Subsequent to 30 June 2022, the registrations of certain players and coaching staff were acquired or extended for a total consideration, including associated costs, of £218,146,000. Payments are due within the next 5 years. |
Related party transactions
Related party transactions | 12 Months Ended |
Jun. 30, 2022 | |
Related party transactions | |
Related party transactions | 34 Related party transactions Trusts and other entities controlled by six lineal descendants of Mr. Malcolm Glazer collectively own 4.37% (2021: 5.34%) of our issued and outstanding Class A ordinary shares and all of our issued and outstanding Class B ordinary shares, representing 95.62% (2021: 96.70%) of the voting power of our outstanding capital stock. |
Subsidiaries
Subsidiaries | 12 Months Ended |
Jun. 30, 2022 | |
Subsidiaries | |
Subsidiaries | 35 Subsidiaries The Group’s subsidiaries at 30 June 2022 are set out below. The proportion of ownership interest held equals the voting rights held by the Group. % of ownership Name of entity Principal activity interest Red Football Finance Limited* Dormant 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 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 Dormant 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 and RAML USA LLC which is incorporated in the state of Delaware in the United States. The registered office or principal executive office of all the above, with the exception of RAML USA LLC, is Sir Matt Busby Way, Old Trafford, Manchester, M16 0RA, United Kingdom. The registered office of RAML USA LLC is Corporation Trust Centre, 1209 Orange Street, Wilmington, New Castle County, Delaware 19801, USA. |
Additional information - Financ
Additional information - Financial Statement Schedule I | 12 Months Ended |
Jun. 30, 2022 | |
Additional information - Financial Statement Schedule I | |
Additional information - Financial Statement Schedule I | 36 Additional information - Financial Statement Schedule I Schedule I has been provided pursuant to the requirements of Securities and Exchange Commission (“SEC”) Regulation S-X Rule 12-04(a), which require condensed financial information as to financial position, cash flows and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented, as the restricted net assets of Manchester United plc’s consolidated subsidiaries as of 30 June 2022 exceeded the 25% threshold. As of 30 June 2022, the Group had total borrowings of £636.1 million (2021: £530.2 million). As described in Note 25 above, the Group’s revolving facilities, the secured term loan facility and the note purchase agreement governing the senior secured notes each contain certain covenants that restrict the activities of Red Football Limited and its subsidiaries, including restricted payment covenants. The restricted payment covenants allow dividends in certain circumstances, including to the extent dividends do not exceed 50% of the cumulative consolidated net income of Red Football Limited and its restricted subsidiaries, provided there is no event of default and Red Football Limited is able to meet the principal and interest payments on its debt under a fixed charge coverage test. As of 30 June 2022, the Group was in compliance with the restricted payment covenants and all other covenants under its revolving facilities, the secured term loan facility and the note purchase agreement governing the senior secured notes. Certain information and footnote disclosures normally included in financial statements prepared in accordance with International Financial Reporting Standards have been condensed or omitted. The footnote disclosures contain supplemental information only and, as such, these statements should be read in conjunction with the notes to the accompanying consolidated financial statements. The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements, except that investments in subsidiaries are included at cost less any provision for impairment in value. As of 30 June 2022, 2021 and 2020 there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. During the year ended 30 June 2022, cash dividends equivalent to $0.27 (2021: $0.09; 2020: $0.18) per share were declared and paid by the Company. The pounds sterling equivalents were £0.21 (2021: £0.07; 2020: £0.14) per share. Condensed statement of profit or loss of the Company Year ended 30 June 2022 2021 2020 £’000 £’000 £’000 Operating expenses (4,325) (4,253) (2,964) Income from shares in group undertakings 33,553 10,718 44,534 Finance income 124 — 82 Profit before income tax 29,352 6,465 41,652 Income tax expense (1) (1) (9) Profit for the year 29,351 6,464 41,643 There were no items of other comprehensive loss or income in the years ended 30 June 2022, 2021 or 2020 and therefore no statement of comprehensive income has been presented. 36 Additional information - Financial Statement Schedule I (continued) Condensed balance sheet of the Company As of 30 June 2022 2021 £’000 £’000 ASSETS Non-current assets Investment in subsidiaries 319,265 319,265 319,265 319,265 Current assets Other receivables 1,047 1,197 Cash and cash equivalents 131 148 1,178 1,345 Total assets 320,443 320,610 EQUITY AND LIABILITIES Equity Share capital 53 53 Share premium 68,822 68,822 Treasury shares (21,305) (21,305) Retained earnings 258,109 262,113 305,679 309,683 Current liabilities Other payables 14,764 10,927 14,764 10,927 Total equity and liabilities 320,443 320,610 Condensed statement of changes in equity of the Company Share Share Treasury Retained capital premium shares earnings Total equity £’000 £’000 £’000 £’000 £’000 Balance at 1 July 2019 53 68,822 — 245,050 313,925 Profit for the year — — — 41,643 41,643 Total comprehensive income for the year — — — 41,643 41,643 Acquisition of treasury shares — — (21,305) — (21,305) Equity-settled share based payments — — — 818 818 Dividends paid — — — (23,229) (23,229) Balance at 30 June 2020 53 68,822 (21,305) 264,282 311,852 Profit for the year — — — 6,464 6,464 Total comprehensive income for the year — — — 6,464 6,464 Equity-settled share based payments — — — 2,085 2,085 Dividends paid — — — (10,718) (10,718) Balance at 30 June 2021 53 68,822 (21,305) 262,113 309,683 Profit for the year — — — 29,351 29,351 Total comprehensive income for the year — — — 29,351 29,351 Equity-settled share based payments — — — 198 198 Dividends paid — — — (33,553) (33,553) Balance at 30 June 2022 53 68,822 (21,305) 258,109 305,679 36 Additional information - Financial Statement Schedule I (continued) Condensed statement of cash flows of the Company Year ended 30 June 2022 2021 2020 £’000 £’000 £’000 Cash flows from operating activities Profit before income tax 29,352 6,465 41,652 Adjustments for: Non-cash employee benefit expense - equity-settled share-based payments 198 2,085 818 Foreign exchange (gains)/ losses on operating activities (35) 263 (102) Changes in working capital: Other receivables 150 — (89) Other payables 3,837 2,120 2,243 Tax paid (1) (1) (9) Net cash inflow from operating activities 33,501 10,932 44,513 Cash flows from financing activities Acquisition of treasury shares — — (21,305) Dividends paid (33,553) (10,718) (23,229) Net cash outflow from financing activities (33,553) (10,718) (44,534) Net (decrease)/increase in cash and cash equivalents (52) 214 (21) Cash and cash equivalents at beginning of year 148 197 116 Effect of exchange rate changes on cash and cash equivalents 35 (263) 102 Cash and cash equivalents at end of year 131 148 197 The following reconciliations are provided as additional information to satisfy the Schedule I SEC requirements for parent-only financial information. 2022 2021 2020 £’000 £’000 £’000 IFRS (loss)/profit reconciliation: Parent only — 29,351 6,464 41,643 Additional loss if subsidiaries had been accounted for on the equity method of accounting as opposed to cost (144,861) (98,680) (64,876) Consolidated IFRS loss for the year (115,510) (92,216) (23,233) IFRS equity reconciliation: Parent only — IFRS equity 305,679 309,683 311,852 Additional (loss)/profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost (178,171) (37,171) 39,380 Consolidated — IFRS equity 127,508 272,512 351,232 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Summary of significant accounting policies | |
Basis of preparation | 2.1 Basis of preparation (i) Compliance with IFRS The consolidated financial statements of Manchester United plc have been prepared on a going concern basis and in accordance with International Financial Reporting Standards (“IFRS”) and interpretations issued by the IFRS Interpretations Committee (“IFRS IC”) applicable to companies reporting under IFRS. The financial statements comply with IFRS as issued by the International Accounting Standards Board (“IASB”). COVID-19 pandemic and going concern Due to remaining summer restrictions on overseas travel, we did not undertake a first team promotional overseas tour at the start of fiscal 2022, and instead we played four domestic games, two of which were held at Old Trafford. Whilst the nature of the pandemic may result in UK government restrictions being re-imposed in the future, the majority of such restrictions were lifted ahead of the start of the 2021/22 season, with Old Trafford stadium welcoming back fans at full capacity. All matches played in the year operated at full capacity. Despite the ongoing uncertainty, the Group remains well placed with a strong balance sheet, including cash resources as at 30 June 2022 of £121.2 million. All funds are held as cash and cash equivalents and therefore available on demand. As at 30 June 2022, the Group also has access to undrawn revolving facilities of £200 million. The Group’s debt facilities include the $425 million senior secured notes and the $225 million secured term loan facility, the majority of which attract fixed interest rates. As at 30 June 2022 the Group also has £100 million outstanding loans under our revolving facilities. The Group’s revolving facilities, secured notes and secured term loan mature in 2027, 2027 and 2029 respectively. As of 30 June 2022, the Company was in compliance with all debt covenants. As a result of a detailed assessment, including various downside assumptions around the men’s first team’s performance, and with reference to the Group’s balance sheet, existing committed facilities, but also acknowledging the inherent uncertainty of the current economic outlook, Management has concluded that the Group is able to meet its obligations when they fall due for a period of at least 12 months after the date of this report. For this reason, the Group continue to adopt the going concern basis for preparing the annual financial statements. 2 Summary of significant accounting policies (continued) 2.1 Basis of preparation (continued) (ii) Historical cost convention The consolidated financial statements have been prepared on a historical cost basis, as modified by the revaluation of certain financial assets and liabilities (including derivative financial instruments) which are recognized at fair value through profit and loss, unless hedge accounting applies. (iii) New and amended standards adopted by the Group No new accounting standards, or amendments to accounting standards, or IFRIC interpretations that are effective for the year ended 30 June 2022, have had a material impact on the Group’s financial statements. (iv) New and amended standards and interpretations not yet adopted There are no other standards or interpretations that are not yet effective and that would be expected to have a material impact the Group in the future reporting periods or on foreseeable future transactions. (v) Effect of IBOR reform For the year ended 30 June 2021, we adopted the Phase 2 amendments to IFRS 9, “Financial Instruments” for the first time. On 10 December 2021 and 13 December 2021, the Group amended and restated its revolving facility agreements with Bank of America and Santander plc respectively, to provide for an alternate method of calculating our interest rates following the cessation of GBP LIBOR and the 1-week and 2-month USD LIBOR rates. Interest is now calculated based on the Sterling Overnight Index Average (SONIA) plus a credit adjustment spread. The impact of these amendment was not material in the year ended 30 June 2022. Our secured term loan facility of $225.0 million remains subject to USD LIBOR which is expected to be phased out completely by 30 June 2023. Therefore, in due course, the Group will need to re-negotiate terms with its lender and amend the terms of the related interest swap. Such amendments are expected to be achieved without material financial impact to the Group. The following table contains details of all financial instruments held at 30 June 2022 which reference USD LIBOR and have not yet transitioned to an alternative interest rate benchmark, such that phase 1 reliefs continue to be applied to the hedge relationship as there remains uncertainty arising from IBOR reform: Carrying value as at 30 June 2022 Assets Liabilities £000 £000 Borrowings (measured at amortised cost) — (183,191) Derivative financial instruments 2,458 — Total 2,458 (183,191) The Group has adopted the following hedge accounting reliefs provided by Phase 2 of the amendments: (i) Hedge designation – When the Phase 1 amendments cease to apply, the group will amend its cash flow hedge designation to reflect changes which are required by IBOR reform, but only to make one or more of these changes: ● Designating an alternative benchmark rate (contractually or non-contractually specified) as a hedged risk; ● Amending the description of the hedged item, including the designated portion of the cash flows being hedged; or ● Amending the description of the hedging instrument. 2 Summary of significant accounting policies (continued) 2.1 Basis of preparation (continued) (v) Effect of IBOR reform (continued) The Group will update its hedge documentation to reflect these changes at the end of the reporting period in which the changes are made. The amendments to hedge documentation do not require the Group to discontinue the cash flow hedge relationship. (ii) |
Principles of consolidation | 2.2 Principles of consolidation Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group. The consideration transferred for the acquisition of a subsidiary comprises the: ● fair values of the assets transferred ● liabilities incurred to the former owners of the acquired business ● equity interests issued by the Group ● fair value of any asset or liability resulting from a contingent consideration arrangement, and ● fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. Acquisition-related costs are expensed as incurred. The excess of the: ● consideration transferred, ● the amount of any non-controlling interest in the acquired entity, and ● acquisition date fair value of any previous interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in profit or loss as a bargain purchase. Inter-company transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. |
Segment reporting | 2.3 Segment reporting The Group has one reportable segment, being the operation of a men’s and women’s professional football club. The chief operating decision maker (being the board of directors and executive officers of Manchester United plc), who is responsible for allocating resources and assessing performance obtains financial information, being the consolidated statement of profit or loss, consolidated balance sheet and consolidated statement of cash flows, and the analysis of changes in net debt, about the Group as a whole. The Group has investment properties, however, this is not considered to be a material business segment and is therefore not reported as such. |
Foreign currency translation | 2.4 Foreign currency translation (i) Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in pounds sterling, which is the Group’s functional and presentation currency. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates are generally recognized in profit or loss. They are deferred in other comprehensive income if they relate to qualifying cash flow hedges. Foreign exchange gains and losses that relate to unhedged borrowings are presented in the statement of profit or loss, within finance costs or finance income. 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. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within operating expenses. (iii) Exchange rates The most important exchange rates per £1.00 that have been used in preparing the financial statements are: Closing rate Average rate 2022 2021 2020 2022 2021 2020 Euro 1.1630 1.1651 1.0998 1.1787 1.1382 1.1391 US Dollar 1.2151 1.3820 1.2374 1.3288 1.3461 1.2633 |
Revenue recognition | 2.5 Revenue recognition The Group’s accounting policies for revenue from contracts with customers are disclosed in Note 4. Revenue is measured at the fair value of consideration received or receivable from the Group’s principal activities excluding transfer fees and value added tax. The Group’s principal revenue streams are Commercial, Broadcasting and Matchday. The Group recognizes revenue when the transaction price can be determined; when it is probable that it will collect the consideration to which it is entitled; and when specific performance obligations have been met for each of the Group’s activities as described below. In instances where the transaction price contains an element of variable or contingent consideration, revenue is recognized based on the most likely amount expected to be received, but only to the extent that it is highly probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable or contingent consideration is subsequently resolved. (i) Commercial 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 United Kingdom 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). 4 Revenue from contracts with customers (continued) 4.3 Accounting policies and significant judgments (continued) (i) Commercial (continued) Retail revenue is recognized when control of the products has transferred, being at the point of sale to the customer. License revenue in respect of right to access licences is recognized in line with the performance obligations included within the contract, in instances where these remain the same over the duration of the contract, revenue is recognized evenly on a time elapsed (i.e. straight-line) basis. Sales-based royalty revenue is recognized only when the subsequent sale is made. Significant estimates A number of sponsorship contracts contain significant estimates in relation to the allocation and recognition of revenue in line with performance obligations. Minimum guaranteed revenue is recognized over the term of the sponsorship agreement in line with the performance obligations included within the contract and based on the sponsorship benefits enjoyed by the individual sponsor. In instances where the sponsorship rights remain the same over the duration of the contract, revenue is recognized as performance obligations are satisfied evenly over time (i.e. on a straight-line basis). The Group has a 10-year agreement with adidas which began on 1 August 2015. The minimum guarantee payable by adidas over the term of the agreement is £750 million, subject to certain adjustments. Payments due in a particular year may increase if the club’s men’s first team wins the Premier League, FA Cup or Champions League, or decrease if the club’s men’s first team fails to participate in the Champions League for two or more consecutive seasons with the maximum possible increase being £4 million per year and the maximum possible reduction being 30% of the applicable payment for the year in which the second or other consecutive season of non-participation falls. 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 at 30 June 2022 that the full minimum guarantee amount is the most likely amount that will be received, as management does not expect two consecutive seasons of non-participation in the Champions League. (ii) Broadcasting Broadcasting revenue represents revenue receivable from all UK and overseas broadcasting contracts, including contracts negotiated centrally by the Premier League and UEFA. Distributions from the Premier League comprise a fixed element (which is recognized evenly as each performance obligation is satisfied, i.e. as each Premier League match is played), facility fees for live coverage and highlights of domestic home and away matches (which are recognized when the respective performance obligation is satisfied, i.e. the respective match is played), and merit awards (which, being variable consideration, are recognized when each performance obligation is satisfied i.e. as each Premier League match is played, based on management’s estimate of where the men’s first team will finish at the end of the football season i.e. the most likely outcome and to the extent that it is deemed highly probably that no revenue recognized will be reversed). Distributions from UEFA relating to participation in European competitions comprise market pool payments (which are recognized over the matches played in the competition, a portion of which reflects Manchester United’s performance relative to the other Premier League clubs in the competition), fixed amounts for participation in individual matches (which are recognized when the matches are played) and an individual club coefficient share (which is recognized over the group stage matches). (iii) Matchday 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. 4 Revenue from contracts with customers (continued) 4.3 Accounting policies and significant judgments (continued) (iii) Matchday (continued) Matchday revenue includes revenue receivable from all domestic and European match day activities from Manchester United games at Old Trafford, together with the Group’s share of gate receipts from domestic cup matches not played at Old Trafford, and fees for arranging other events at the Old Trafford stadium. As the Group acts as the principal in the sale of match tickets, the share of gate receipts payable to the other participating club and competition organizer for domestic cup matches played at Old Trafford is treated as an operating expense. |
Employee benefits | 2.6 Employee benefits (i) Short-term obligations Liabilities for wages and salaries, including non-monetary benefits and annual leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service, are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as accruals and classified as current liabilities in the balance sheet. 2 Summary of significant accounting policies (continued) 2.6 Employee benefits (continued) (ii) Football staff remuneration Remuneration is charged to operating expenses on a straight-line basis over the contract periods based on the amount payable to players and key football management staff for that period. Any performance bonuses are recognized when the Company considers that it is probable that the condition related to the payment will be achieved. Signing-on fees are typically paid to players and key football management staff in equal annual installments over the term of the contract. Installments are paid at or near the beginning of each financial year and recognized as prepayments. They are subsequently charged to profit or loss (as employee benefit expenses) on a straight-line basis over the financial year. Signing-on fees paid form part of cash flows from operating activities. Loyalty fees are bonuses which are paid to players and key football management staff either at the beginning of a renewed contract or in installments over the term of their contract in recognition for either past or future performance. Loyalty bonuses for past service are typically paid in a lump sum amount upon renewal of a contract. These loyalty bonuses require no future service and are not subject to any claw-back provisions were the individual to subsequently leave the club during their new contract term. They are expensed once the Company has a present legal or constructive obligation to make the payment. Loyalty bonuses for ongoing service are typically paid in arrears in equal annual installments over the term of the contract. These are paid at the beginning of the next financial year and the related charge is recognized within employee benefit expenses in profit or loss on a straight-line basis over the current financial year. (iii) Post-employment pension obligations The Group is one of a number of participating employers in The Football League Limited Pension and Life Assurance Scheme (‘the scheme’ — see Note 29.1). The Group is unable to identify its share of the assets and liabilities of the scheme and therefore accounts for its contributions as if they were paid to a defined contribution scheme. The Group’s contributions into this scheme are reflected within the statement of profit or loss when they fall due. Full provision has been made for the additional contributions that the Group has been requested to pay to help fund the scheme deficit. The Group also operates a defined contribution scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The Group’s contributions into this scheme are recognized as an employee benefit expenses when they are due. (iv) Share-based payments The Group operates a share-based compensation plan under which the entity receives services from employees as consideration for equity instruments of the Group. Equity-settled share-based payments to employees are measured at the fair value of the equity instruments at the grant date. The fair value excludes the effect of non-market based vesting conditions. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest. At each reporting date, the Group revises its estimate of the number of equity instruments expected to vest as a result of the effect of non-market based vesting conditions. The impact of the revision of the original estimates, if any, is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity. For cash-settled share-based payments to employees, a liability is recognized for the services acquired, measured initially at the fair value of the liability. At each reporting date until the liability is settled, and at the date of settlement, the fair value of the liability is re-measured, with any changes in fair value recognized in profit or loss for the year. Details regarding the determination of the fair value of share-based transactions are set out in Note 28. |
Exceptional items | 2.7 Exceptional items The Group’s accounting policies for exceptional items are disclosed in Note 6. Exceptional items are disclosed separately in the financial statements where it is necessary to do so to provide further understanding of the financial performance of the Group. They are material items of income or expense that have been shown separately due to the significance of their nature or amount. |
Income tax | 2.8 Income tax The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current income tax expense or credit is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries operate and generate taxable income. Although the Company is organized as a Cayman Islands corporation, it reports as a US domestic corporation for US federal corporate income tax purposes and is subject to US federal corporate income tax on the Group’s worldwide income. In addition, the Group is subject to income and other taxes in various other jurisdictions, including the United Kingdom. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to (or recovered from) the tax authorities. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognized only if it is probable that future taxable profit will be available to utilize those temporary differences and losses. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income, in which case the tax is also recognized in other comprehensive income. |
Dividend distribution | 2.9 Dividend distribution Dividend distributions to the Company’s shareholders are recognized when they become legally payable. In the case of interim dividends, this is when they are paid. |
Impairment of assets | 2.10 Impairment of assets Goodwill is not subject to amortization and is tested annually for impairment or more frequently if events or changes in circumstances indicate it might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in profit or loss for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use, and is calculated with reference to future discounted cash flows that the asset is expected to generate when considered as part of a cash-generating unit. Assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. If an impairment subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment charge been recognized for the asset in prior years. Management does not consider that it is possible to determine the value in use of an individual player or key football management staff in isolation as that individual (unless via a sale or insurance recovery) cannot generate cash flows on their own. While management does not consider any individual can be separated from the single cash generating unit (“CGU”), being the operations of the Group as a whole, there may be certain circumstances where an individual is taken out of the CGU, when it becomes clear that they will not participate with the club’s men’s first team again, for example, a player sustaining a career threatening injury or is permanently removed from the men’s first team playing squad for another reason. If such circumstances were to arise, the carrying value of the individual would be assessed against the Group’s best estimate of the individual’s fair value less any costs to sell and an impairment charge made in operating expenses reflecting any loss arising. |
Property, plant and equipment | 2.11 Property, plant and equipment Property, plant and equipment is initially measured at cost (comprising the purchase price, after deducting discounts and rebates, and any directly attributable costs) and is subsequently carried at cost less accumulated depreciation and any provision for impairment. Subsequent costs, for example, capital improvements and refurbishment, are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. The depreciation methods and periods used by the Group are disclosed in Note 13. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss. (ii) Depreciation methods and useful lives Land is not depreciated. With the exception of freehold property acquired before 1 August 1999, depreciation is calculated using the straight-line method to allocate cost, net of residual values, over the estimated useful lives as follows: Freehold property 75 years Computer equipment and software (included within Plant and machinery) 3 years Plant and machinery 4-5 years Fixtures and fittings 7 years Freehold property acquired before 1 August 1999 is depreciated on a reducing balance basis at an annual rate of 1.33%. See Note 2.11 for the other accounting policies relevant to property, plant and equipment, and Note 2.10 for the Group’s policy regarding impairments. |
Leases | 2.12 Leases The Group’s accounting policy for leases is disclosed in Note 14. The Group leases various offices and equipment. 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. 14 Leases (continued) Lease liabilities:(continued) (iii) The group’s leasing activities and how these are accounted for (continued) 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; ● any 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 properties | 2.13 Investment properties The Group’s accounting policy for investment properties is disclosed in Note 15. |
Intangible assets | 2.14 Intangible assets The cost of and amortization methods and periods used by the Group for goodwill, registrations and other intangible assets are disclosed in Note 16. The assets’ useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Assets available for sale (principally players’ registrations) are classified as assets held for sale when their carrying value is expected to be recovered principally through a sale transaction and a sale is considered to be highly probable. Highly probable is defined as being actively marketed by the club, with unconditional offers having been received prior to the end of a reporting period. These assets would be stated at the lower of the carrying amount and fair value less costs to sell. Gains and losses on disposal of players’ and key football management staff registrations are determined by comparing the fair value of the consideration receivable, net of any transaction costs, with the carrying amount and are recognized separately in profit or loss within profit on disposal of intangible assets. Where a part of the consideration receivable is contingent on specified performance conditions, this amount is recognized in profit or loss when receipt is virtually certain. Loan income on players temporarily loaned to other football clubs is recognized separately in profit or loss within profit on disposal of intangible assets. The costs associated with the acquisition of players’ and key football management staff registrations are capitalized at the fair value of the consideration payable. Costs include transfer fees, Premier League levy fees, agents’ fees incurred by the club and other directly attributable costs. Costs also include the fair value of any contingent consideration, which is primarily payable to the player’s former club (with associated levy fees payable to the Premier League), once payment becomes probable. Subsequent reassessments of the amount of contingent consideration payable are also included in the cost of the player’s and key football management staff registration. Registrations costs are fully amortized using the straight-line method over the period covered by the player’s and key football management staff contract. Where a contract is extended, any costs associated with securing the extension are added to the unamortized balance (at the date of the amendment) and the revised book value is amortized over the remaining revised contract life. The Group will perform an impairment review on intangible assets, including player and key football management staff registrations, if adverse events indicate that the amortized carrying value of the asset may not be recoverable. While no individual can be separated from the single cash generating unit (“CGU”), being the operations of the Group as a whole, there may be certain circumstances where an individual is taken out of the CGU, when it becomes clear that they will not participate with the club’s first team again, for example, a player sustaining a career threatening injury or is permanently removed from the first team squad for another reason. If such circumstances were to arise, the carrying value of the individual would be assessed against the Group’s best estimate of the individual’s fair value less any costs to sell. Other intangible assets comprise website, mobile applications, software and trademark registration costs and are initially measured at cost and are subsequently carried at cost less accumulated amortization and any provision for impairment. Amortization is calculated using the straight-line method to write-down assets to their residual value over the estimated useful lives as follows: Website, mobile applications and software 3 years Trademark registrations 10 years See Note 2.14 for the other accounting policies relevant to intangible assets and Note 2.10 for the Group’s policy regarding impairments. |
Inventories | 2.15 Inventories The Group’s accounting policy for inventories is disclosed in Note 18. Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished goods comprises cost of purchase and, where appropriate, other directly attributable costs. It excludes borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business less estimated costs necessary to make the sale. |
Trade receivables | 2.16 Trade receivables The Group’s accounting policy for trade receivables is disclosed in Note 19. Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Trade receivables are recognized initially at fair value. The Group holds trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest method, less provision for impairment. Details about the Group’s impairment policies and the calculation of the provision for impairment are provided in Note 30.1(b). If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets. |
Derivatives and hedging activities | 2.17 Derivatives and hedging activities Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Group designates certain derivatives as hedges of a particular risk associated with the cash flows of recognized assets and liabilities and highly probable forecast transactions (cash flow hedges). At inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged items, including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking its hedge transactions. The fair values of derivative financial instruments are disclosed in Note 20. Movements in the hedging reserve are shown in the statement of changes in equity. The full fair value of a derivative is classified as a non-current asset or liability when the remaining maturity of the item is more than 12 months, it is classified as a current asset or liability when the remaining maturity of the item is less than 12 months. (i) Cash flow hedges that qualify for hedge accounting The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to any ineffective portion is recognized immediately in profit or loss. 2 Summary of significant accounting policies (continued) 2.17 Derivatives and hedging activities (continued) (i) Cash flow hedges that qualify for hedge accounting (continued) The Group hedges the foreign exchange risk on a portion of contracted, and hence highly probable, future US dollar revenues whenever possible using a portion of the Group’s US dollar net borrowings as the hedging instrument. Foreign exchange gains or losses arising on re-translation of the Group’s US dollar net borrowings used in the hedge are initially recognized in other comprehensive income, rather than being recognized in profit or loss immediately. The foreign exchange gains or losses arising on re-translation of the Group’s unhedged US dollar borrowings are recognized in profit or loss immediately. The Group hedges its cash flow interest rate risk where considered appropriate using interest rate swaps. Such interest rate swaps have the economic effect of converting a portion of variable rate borrowings from floating rates to fixed rates. The effective portion of changes in the fair value of the interest rate swap is initially recognized in other comprehensive income, rather than being recognized in profit or loss immediately. The gain or loss relating to any ineffective portion is recognized in profit or loss immediately. Amounts previously recognized in other comprehensive income and accumulated in the hedging reserve within equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for example, when the forecast transaction that is hedged takes place). When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss existing in equity at that time remains in equity and is reclassified when the forecast transaction is ultimately recognized in profit or loss. When the forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately reclassified to profit or loss. (ii) Derivatives that do not qualify for hedge accounting Certain derivative instruments are not designated as hedging instruments and consequently do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognized immediately in profit or loss. |
Cash and cash equivalents | 2.18 Cash and cash equivalents For the purposes of presentation in the consolidated balance sheet and the consolidated statement of cash flows, cash and cash equivalents includes cash in hand, deposits held at call with financial institutions, and, if applicable, other short-term highly liquid investments with original maturities of three months or less. |
Share capital and reserves | 2.19 Share capital and reserves Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds of the issue. Where any Group company purchases the Company’s equity instruments, for example as the result of a share buy-back, the consideration paid, including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the owners of Manchester United plc as treasury shares until the shares are cancelled or reissued. The merger reserve arose as a result of reorganization transactions and represents the difference between the equity of the acquired company (Red Football Shareholder Limited) and the investment by the acquiring company (Manchester United plc). The hedging reserve is used to reflect the effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges. |
Trade and other payables | 2.20 Trade and other payables The Group’s accounting policy for trade and other payables is disclosed in Note 24. Trade and other payables are liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method. They are classified as current liabilities if payment is due within one year or less. If not they are presented as non-current liabilities. |
Borrowings | 2.21 Borrowings Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest rate method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case the fee is deferred until draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. |
Provisions | 2.22 Provisions Provisions are recognized when the group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not recognized for future operating losses. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is the pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as an interest expense. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Summary of significant accounting policies | |
Schedule of all financial instruments held at 30 June 2022 which reference USD LIBOR and have not yet transitioned to an alternative interest rate benchmark | Carrying value as at 30 June 2022 Assets Liabilities £000 £000 Borrowings (measured at amortised cost) — (183,191) Derivative financial instruments 2,458 — Total 2,458 (183,191) |
Schedule of exchange rates per £1.00 | The most important exchange rates per £1.00 that have been used in preparing the financial statements are: Closing rate Average rate 2022 2021 2020 2022 2021 2020 Euro 1.1630 1.1651 1.0998 1.1787 1.1382 1.1391 US Dollar 1.2151 1.3820 1.2374 1.3288 1.3461 1.2633 |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Revenue from contracts with customers | |
Schedule of revenue derived from principal activity | 2022 2021 2020 £’000 £’000 £’000 Sponsorship 147,881 140,209 182,709 Retail, merchandising, apparel & products licensing revenue 109,939 91,996 96,335 Commercial 257,820 232,205 279,044 Domestic competitions 140,629 174,683 115,415 European competitions 67,477 73,827 16,836 Other 6,741 6,305 7,952 Broadcasting 214,847 254,815 140,203 Matchday 110,534 7,097 89,794 583,201 494,117 509,041 |
Schedule of revenue derived from entities accounting for more than 10% of revenue | 2022 2021 2020 £’000 £’000 £’000 Customer A 146,114 177,160 118,069 Customer B 76,377 77,426 77,852 Customer C 67,477 73,827 <10 % Customer D <10 % <10 % 52,269 |
Schedule of assets and liabilities related to contracts with customers | Current contract assets — accrued revenue £’000 At 1 July 2020 45,966 Recognized in revenue during the year 39,037 Cash received/amounts invoiced during the year (43,973) Loss allowance (486) At 30 June 2021 40,544 Recognized in revenue during the year 34,948 Cash received/amounts invoiced during the year (39,253) At 30 June 2022 36,239 Current contract Non-current Total contract liabilities – contract liabilities – liabilities – deferred revenue deferred revenue deferred revenue £’000 £’000 £’000 At 1 July 2020 (171,574) (18,759) (190,333) Recognized in revenue during the year 135,560 — 135,560 Cash received/amounts invoiced during the year (86,153) — (86,153) Reclassified during the year 4,183 (4,183) — At 30 June 2021 (117,984) (22,942) (140,926) Recognized in revenue during the year 108,001 — 108,001 Cash received/amounts invoiced during the year (149,619) — (149,619) Reclassified during the year (6,245) 6,245 — At 30 June 2022 (165,847) (16,697) (182,544) |
Operating expenses (Tables)
Operating expenses (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Operating expenses | |
Schedule of operating expenses | 2022 2021 2020 £’000 £’000 £’000 Employee benefit expenses (Note 7) (384,141) (322,600) (284,029) Short-term and low value leases (621) (514) (590) Auditors’ remuneration: audit of parent company and consolidated financial statements (485) (30) (30) Auditors’ remuneration: audit of the Company’s subsidiaries (135) (646) (636) Auditors’ remuneration: audit-related services (14) (14) (13) Auditors’ remuneration: other audit services (80) (105) — Auditors’ remuneration: tax compliance and tax advice services (13) (35) (446) Foreign exchange (losses)/gains on operating activities (50) (874) 816 Depreciation - property, plant and equipment (Note 13) (12,285) (12,987) (12,735) Depreciation – right-of-use assets (Note 14) (1,749) (1,698) (1,656) Depreciation - investment properties (Note 15) (280) (274) (365) Impairment - investment properties (Note 15) — — (3,787) Amortization – intangible assets (Note 16) (151,462) (124,398) (126,756) Sponsorship, other commercial and broadcasting costs (17,174) (10,861) (20,097) External Matchday costs (24,372) (9,022) (19,196) Property costs (26,699) (16,454) (19,028) Other operating expenses (individually less than £10,000,000) (48,268) (37,912) (33,656) Exceptional items (Note 6) (24,692) — — (692,520) (538,424) (522,204) |
Exceptional items (Tables)
Exceptional items (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Exceptional items | |
Schedule of exceptional items | 2022 2021 2020 £’000 £’000 £’000 Compensation for loss of office 23,827 — — Football League pension scheme deficit (Note 29) 865 — — 24,692 — — |
Employee benefit expenses (Tabl
Employee benefit expenses (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Employee benefit expenses | |
Schedule of employee benefit expenses | 2022 2021 2020 £’000 £’000 £’000 Wages and salaries (including bonuses) (338,503) (283,463) (249,564) Social security costs (40,881) (33,773) (29,743) Share-based payments (Note 28) (1,026) (2,002) (1,435) Pension costs - defined contribution schemes (Note 29.2) (3,731) (3,362) (3,287) (384,141) (322,600) (284,029) |
Schedule of average number of employees | 2022 2021 2020 Number Number Number By activity: Football – men’s and women’s players 124 118 115 Football - technical and coaching 189 176 176 Commercial 151 131 129 Media 94 90 88 Administration and other 477 468 484 Average number of employees 1,035 983 992 |
Schedule of compensation paid or payable to key management for employee services | 2022 2021 2020 £’000 £’000 £’000 Short-term employee benefits (6,893) (8,326) (9,507) Share-based payments (284) (1,125) (1,017) Post-employment benefits (8) (5) (20) (7,185) (9,456) (10,544) |
Profit on disposal of intangi_2
Profit on disposal of intangible assets (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Profit on disposal of intangible assets | |
Schedule of profit on disposal of intangible assets | 2022 2021 2020 £’000 £’000 £’000 Profit on disposal of registrations 18,971 4,601 15,664 Player loan income 2,964 2,780 2,720 21,935 7,381 18,384 |
Net finance (costs)_income (Tab
Net finance (costs)/income (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Net finance (costs)/income | |
Schedule of net finance (costs)/income | 2022 2021 2020 £’000 £’000 £’000 Interest payable on bank loans and overdrafts (3,058) (1,952) (1,038) Interest payable on secured term loan facility, senior secured notes and revolving facilities (19,975) (17,262) (19,485) Interest payable on lease liabilities (Note 14) (97) (109) (131) Amortization of issue costs on secured term loan facility and senior secured notes (713) (626) (579) Foreign exchange losses on retranslation of unhedged US dollar borrowings (1) (58,738) — (4,436) Unwinding of discount relating to registrations (2,363) (892) (1,508) Reclassified from hedging reserve (1) — (14,631) — Hedge ineffectiveness on cash flow hedges (971) — (119) Fair value movements on derivative financial instruments: Embedded foreign exchange derivatives — — (95) Foreign currency options — (939) — Total finance costs (85,915) (36,411) (27,391) Interest receivable on short-term bank deposits 145 3 1,352 Foreign exchange gains on retranslation of unhedged US dollar borrowings (2) — 48,015 — Reclassified from hedging reserve (3) 326 — — Hedge ineffectiveness on cash flow hedges — 1,234 — Fair value movement on derivative financial instruments: Embedded foreign exchange derivatives 23,205 58 — Total finance income 23,676 49,310 1,352 Net finance (costs)/income (62,239) 12,899 (26,039) (1) Unrealized foreign exchange losses on unhedged USD borrowings due to an unfavorable swing in foreign exchange rates. (2) Unrealized foreign exchange gains on unhedged USD borrowings due to a favorable swing in foreign exchange rates. (3) Foreign exchange losses immediately reclassified from the hedging reserve for hedged future revenues no longer meeting the hedge accounting criteria due to a change in denomination of the contract currency. |
Income tax credit_(expense) (Ta
Income tax credit/(expense) (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income tax credit/(expense) | |
Schedule of income tax expense | 2022 2021 2020 £’000 £’000 £’000 Current tax: Current tax on loss for the year (1) 5,084 (3,972) 551 Adjustment in respect of previous years 223 490 (598) Foreign tax (625) (688) (942) Total current tax credit/(expense) 4,682 (4,170) (989) Deferred tax: US deferred tax: Origination and reversal of temporary differences — 3,831 4,591 Re-measurement of US deferred tax asset (2) — (66,561) (3,916) Adjustment in respect of previous years — 973 (1,150) Total US deferred tax expense (Note 17) — (61,757) (475) UK deferred tax: Origination and reversal of temporary differences 29,142 9,762 2,452 Adjustment in respect of previous years 289 (800) 512 Impact of change in UK corporation tax rate (2) — (11,224) (3,915) Total UK deferred tax credit/(expense) (Note 17) 29,431 (2,262) (951) Total deferred tax credit/(expense) 29,431 (64,019) (1,426) Total income tax credit/(expense) 34,113 (68,189) (2,415) |
Schedule of reconciliation of the total income tax expense | 2022 2021 2020 £’000 £’000 £’000 Loss before income tax (149,623) (24,027) (20,818) Loss before tax multiplied by UK corporation tax rate of 19.0% (2021: 21.0% - weighted average US federal corporate income tax rate; 2020: 21.0% - weighted average US federal corporate income tax rate) 28,428 5,046 4,372 Tax effects of: Adjustment in respect of previous years 512 663 (1,236) Difference in tax rates on non-US operations — 216 26 Recognition of UK R&D tax claims in respect of previous years — — 537 Foreign exchange (losses)/gains on US dollar denominated tax basis — (3,146) 735 (Expenses not deductible for tax purposes)/income not taxable (1,197) (526) 757 Irrecoverable foreign tax credits (625) — — Impact of change in UK Corporation tax rate (2) 6,995 (77,785) — Unrealized foreign exchange gains/(losses) not taxable in the US — 7,343 (3,690) Re-measurement of foreign tax credit US deferred tax asset — — (3,916) Total income tax credit/(expense) 34,113 (68,189) (2,415) 10 Income tax credit/(expense) (continued) |
Schedule of amounts relating to tax recognized directly in other comprehensive income | 2022 2021 2020 £’000 £’000 £’000 US deferred tax (Note 17) — 3,395 422 UK deferred tax (Note 17) (1,287) (1,947) 1,479 Total deferred tax (1,287) 1,448 1,901 Current tax (1) — (2,017) (1,799) Total income tax (expense)/credit recognized in other comprehensive income (1,287) (569) 102 (1) (2) |
(Loss)_earnings per share (Tabl
(Loss)/earnings per share (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
(Loss)/earnings per share | |
Schedule of (loss)/earnings per share | 2022 2021 2020 Loss for the year (£’000) (115,510) (92,216) (23,233) Basic loss per share (pence) (70.86) (56.60) (14.14) Diluted loss per share (pence) (1) (70.86) (56.60) (14.14) |
Schedule of weighted average number of shares | 2022 2021 2020 Number Number Number ‘000 ‘000 ‘000 Class A ordinary shares 51,952 41,939 40,573 Class B ordinary shares 112,732 122,683 124,000 Treasury shares (1,683) (1,683) (320) Weighted average number of ordinary shares used as the denominator in calculating basic loss per share 163,001 162,939 164,253 Adjustment for calculation of diluted loss per share assumed conversion into Class A ordinary shares (1) — — — Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted (loss)/earnings per share (1) 163,001 162,939 164,253 (1) For the years ended 30 June 2022, 30 June 2021 and 30 June 2020, potential ordinary shares are anti-dilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
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 2020 Cost 270,900 38,222 79,741 388,863 Accumulated depreciation (56,435) (32,461) (45,528) (134,424) Net book amount 214,465 5,761 34,213 254,439 Year ended 30 June 2021 Opening net book amount 214,465 5,761 34,213 254,439 Additions 721 3,091 1,795 5,607 Transfers 7,366 — (7,366) — Depreciation charge (3,432) (3,507) (6,048) (12,987) Closing net book amount 219,120 5,345 22,594 247,059 At 30 June 2021 Cost 278,987 38,309 73,528 390,824 Accumulated depreciation (59,867) (32,964) (50,934) (143,765) Net book amount 219,120 5,345 22,594 247,059 Year ended 30 June 2022 Opening net book amount 219,120 5,345 22,594 247,059 Additions 2,390 2,706 2,791 7,887 Transfers — 231 (231) — Depreciation charge (3,394) (3,013) (5,878) (12,285) Closing net book amount 218,116 5,269 19,276 242,661 At 30 June 2022 Cost 281,377 39,562 75,394 396,333 Accumulated depreciation (63,261) (34,293) (56,118) (153,672) Net book amount 218,116 5,269 19,276 242,661 |
Schedule of estimated useful lives of property, plant and equipment | Freehold property 75 years Computer equipment and software (included within Plant and machinery) 3 years Plant and machinery 4-5 years Fixtures and fittings 7 years |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Leases | |
Schedule of right-of-use assets | Right-of-use assets: 2022 2021 £’000 £’000 Property 3,655 4,004 Plant and machinery 417 379 Total 4,072 4,383 |
Schedule of lease liabilities | Lease liabilities: 2022 2021 £’000 £’000 Current 1,561 1,257 Non-current 2,869 3,083 Total lease liabilities 4,430 4,340 The following table provides an analysis of the movements in lease liabilities: £’000 As at 1 July 2020 4,393 Cash flows (1,684) Acquisition 1,522 Accretion expense 109 As at 30 June 2021 4,340 Cash flows (1,444) Acquisition 1,437 Accretion expense 97 As at 30 June 2022 4,430 |
Schedule of amounts recognized in the consolidated statement of profit or loss | 2022 2021 2020 £’000 £’000 £’000 Depreciation charge of right-of-use assets Property (1,534) (1,534) (1,530) Plant and machinery (215) (164) (126) (1,749) (1,698) (1,656) Interest expense (included in finance cost) (97) (109) (131) Expense relating to short-term leases (included in operating expenses) (579) (472) (562) Expense relating to low value leases (included in operating expenses) (42) (42) (28) |
Investment properties (Tables)
Investment properties (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Investment properties | |
Schedule of investment property | £’000 At 1 July 2020 Cost 32,193 Accumulated depreciation and impairment (11,366) Net book amount 20,827 Year ended 30 June 2021 Opening net book amount 20,827 Depreciation charge (274) Closing net book amount 20,553 At 30 June 2021 Cost 32,193 Accumulated depreciation and impairment (11,640) Net book amount 20,553 Year ended 30 June 2022 Opening net book amount 20,553 Depreciation charge (280) Closing net book amount 20,273 At 30 June 2022 Cost 32,193 Accumulated depreciation and impairment (11,920) Net book amount 20,273 |
Schedule of other amounts recognized in profit or loss for investment properties | 2022 2021 £’000 £’000 Rental revenue 2,240 2,216 Direct operating expenses from properties, all of which generated rental revenue 294 761 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Intangible assets. | |
Schedule of intangible assets | Other intangible Goodwill Registrations assets Total £’000 £’000 £’000 £’000 At 1 July 2020 Cost 421,453 831,275 14,797 1,267,525 Accumulated amortization — (484,403) (7,952) (492,355) Net book amount 421,453 346,872 6,845 775,170 Year ended 30 June 2021 Opening net book amount 421,453 346,872 6,845 775,170 Additions — 115,725 2,300 118,025 Disposals — (14,330) — (14,330) Amortization charge — (120,280) (4,118) (124,398) Closing book amount 421,453 327,987 5,027 754,467 At 30 June 2021 Cost 421,453 861,210 16,644 1,299,307 Accumulated amortization — (533,223) (11,617) (544,840) Net book amount 421,453 327,987 5,027 754,467 Year ended 30 June 2022 Opening net book amount 421,453 327,987 5,027 754,467 Additions — 151,564 3,100 154,664 Disposals — (14,391) — (14,391) Amortization charge — (148,949) (2,513) (151,462) Closing book amount 421,453 316,211 5,614 743,278 At 30 June 2022 Cost 421,453 779,197 18,817 1,219,467 Accumulated amortization — (462,986) (13,203) (476,189) Net book amount 421,453 316,211 5,614 743,278 |
Schedule of estimated useful lives of other intangible assets | Website, mobile applications and software 3 years Trademark registrations 10 years |
Deferred tax (Tables)
Deferred tax (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Deferred Tax | |
Schedule of deferred taxes | Deferred tax assets and deferred tax liabilities are offset where the Group has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after allowable offset): 2022 2021 £’000 £’000 UK deferred tax liabilities 7,402 35,546 At 30 June 7,402 35,546 The movement in deferred tax assets and deferred tax liabilities during the year is as follows: 2022 2021 £’000 £’000 At 1 July 35,546 (27,025) (Credited)/expensed to statement of profit or loss (Note 10) (29,431) 64,019 Expensed/(credited) to other comprehensive income (Note 10) 1,287 (1,448) At 30 June 7,402 35,546 |
Schedule of unrecognized US deferred tax asset | Salary not Net paid with Foreign operating Intangible 2.5 months tax credits losses assets of year end Other Total £’000 £’000 £’000 £’000 £’000 £’000 Unrecognized US deferred tax asset 25,678 46,670 4,088 5,892 5,281 87,609 |
US | |
Deferred Tax | |
Schedule of movements in net deferred tax (liability)/asset | Unrealized foreign exchange Net and Property, Foreign operating derivative Intangible Deferred plant and tax credits losses movements assets revenue equipment Other Total (1) £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 At 1 July 2020 (27,815) (9,537) (2,296) (9,070) (5,831) 3,118 (6,931) (58,362) Expensed to statement of profit or loss (Note 10) 31,779 6,328 1,577 9,070 5,831 241 6,931 61,757 (Credited)/expensed to other comprehensive income (Note 10) (3,964) (150) 719 — — — — (3,395) At 30 June 2021 — (3,359) — — — 3,359 — — Expensed/(credited) to statement of profit or loss (Note 10) — (4,492) 4,575 — — (83) — — At 30 June 2022 — (7,851) 4,575 — — 3,276 — — (1) The deferred tax assets have been written down in the year ended 30 June 2021 to the extent that they will not shelter profits arising from the unwind of the deferred tax liability. This is due to a change in the substantively enacted UK Corporation tax rate from 19% to 25% , effective April 2023. The current US federal corporate income tax rate is 21% . As a result of this change the US deferred tax asset is no longer forecast to give rise to a future economic benefit. It is expected that any future US tax payable will be sheltered by future foreign tax credits arising from UK tax payable. Future increases in the US federal corporate income tax rate could result in a reversal of the US deferred tax asset write down. |
UK | |
Deferred Tax | |
Schedule of movements in net deferred tax (liability)/asset | Accelerated Non Property Net tax qualifying fair value operating depreciation Intangibles property adjustment losses Other (3) Total (4) £’000 £’000 £’000 £’000 £’000 £’000 £’000 At 1 July 2020 608 9,881 13,290 13,735 — (6,177) 31,337 Expensed/(credited) to statement of profit or loss (Note 10) (2) 1 5,119 4,192 3,707 (12,180) 1,423 2,262 Credited to other comprehensive income (Note 10) — — — — — 1,947 1,947 At 30 June 2021 609 15,000 17,482 17,442 (12,180) (2,807) 35,546 (Credited)/expensed to statement of profit or loss (Note 10) (229) 1,359 (5) (631) (32,427) 2,502 (29,431) Expensed to other comprehensive income (Note 10) — — — — 40 1,247 1,287 At 30 June 2022 380 16,359 17,477 16,811 (44,567) 942 7,402 (2) An increase in the UK Corporation tax rate from 19% to 25%, effective April 2023, was substantively enacted in May 2021. This has resulted in the re-measurement of the UK deferred tax liability from 19% to 25% resulting in an additional charge of £11,224,000. (3) The “Other” deferred tax asset balance primarily comprises foreign exchange differences; fair value movements recognized in the hedging reserve; pensions not paid in the year and salaries not paid before 31 March 2023. (4) Of the total deferred tax liability, £ 7,402,000 is expected to be settled after more than one year. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Inventories | |
Schedule of inventories | 2022 2021 £’000 £’000 Finished goods 2,200 2,080 |
Trade receivables (Tables)
Trade receivables (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Trade receivables. | |
Schedule of trade receivables | 2022 2021 £’000 £’000 Trade receivables 91,207 75,745 Less: provision for impairment of trade receivables (12,240) (4,971) Net trade receivables 78,967 70,774 Less: non-current portion Trade receivables 29,757 20,404 Current trade receivables 49,210 50,370 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Derivative financial instruments. | |
Schedule of derivative financial instruments | 2022 2021 Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000 Used for hedging: Interest rate swaps 2,458 — — (5,121) Forward foreign exchange contracts — — — (28) At fair value through profit or loss: Embedded foreign exchange derivatives 20,286 — 809 (527) Forward foreign exchange contracts 315 (81) 8 (58) 23,059 (81) 817 (5,734) Less non-current portion: Used for hedging: Interest rate swaps 2,458 — — (5,121) At fair value through profit or loss: Embedded foreign exchange derivatives 13,786 — 499 (351) Forward foreign exchange contracts 218 (49) — — Non-current derivative financial instruments 16,462 (49) 499 (5,472) Current derivative financial instruments 6,597 (32) 318 (262) |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | 2022 2021 £’000 £’000 Cash at bank and in hand 121,223 110,658 |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Share capital. | |
Schedule of share capital | Number of shares Ordinary shares (thousands) £’000 At 1 July 2020 164,622 53 Employee share-based compensation awards — 55 — At 30 June 2021 164,677 53 Employee share-based compensation awards — 68 — At 30 June 2022 164,745 53 |
Treasury Shares (Tables)
Treasury Shares (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Treasury shares. | |
Schedule of treasury shares | Number of shares (thousands) £’000 At 30 June 2022 and 30 June 2021 (1,683) (21,305) |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Trade and other payables | |
Schedule of trade and other payables | 2022 2021 £’000 £’000 Trade payables 192,863 143,400 Other payables 18,982 22,297 Accrued expenses 89,016 61,990 Social security and other taxes 22,073 32,491 322,934 260,178 Less: non-current portion Trade payables 101,301 66,778 Other payables 1,046 739 Non-current trade and other payables 102,347 67,517 Current trade and other payables 220,587 192,661 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Borrowings | |
Schedule of borrowings | 2022 2021 £’000 £’000 Senior secured notes 347,173 304,474 Secured term loan facility 183,192 160,575 Revolving facilities 100,000 60,000 Accrued interest on senior secured notes and revolving facilities 5,757 5,187 636,122 530,236 Less: non-current portion Senior secured notes 347,173 304,474 Secured term loan facility 183,192 160,575 Non-current borrowings 530,365 465,049 Current borrowings 105,757 65,187 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Provisions | |
Schedule of provisions | Other (1) Tax (2) Total £’000 £’000 £’000 At 1 July 2020 — — — Transfer from accruals (3) 695 4,094 4,789 (Credited)/charged to profit or loss: Reassessment of provisions — (1,036) (1,036) Additional provisions recognized 27 1,022 1,049 At 30 June 2021 722 4,080 4,802 Charged to profit or loss: Reassessment of provisions 421 1,259 1,680 Additional provisions recognized — 6,162 6,162 At 30 June 2022 1,143 11,501 12,644 Less: non-current portion Provisions 85 11,501 11,586 Current provisions 1,058 — 1,058 (1) Other provision includes, amongst other items, make good provisions as the Group is required to restore the leased premises of its office spaces to their original condition at the end of the respective lease terms. A provision has been recognized based upon the estimated expenditure required to remove any leasehold improvements. The remaining term on such leased properties is between 5 months and 3 years. (2) Provision in respect of player related tax matters. The timing of cash outflows is by its nature uncertain and therefore a reliable estimate of the expected timing of such cash outflows cannot be made. This provision is therefore recognized as non-current unless management expects it to be paid within 12 months. (3) |
Cash flow information (Tables)
Cash flow information (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Cash flow information | |
Schedule of cash generated from operations | 2022 2021 2020 Note £’000 £’000 £’000 Loss before income tax (149,623) (24,027) (20,818) Adjustments for: Depreciation 13, 14, 15 14,314 14,959 14,756 Impairment charge 15 — — 3,787 Amortization 16 151,462 124,398 126,756 Profit on disposal of intangible assets 8 (21,935) (7,381) (18,384) Net finance costs/(income) 9 62,239 (12,899) 26,039 Non-cash employee benefit expense - equity-settled share-based payments 28 198 2,085 818 Foreign exchange losses/(gains) on operating activities 50 874 (816) Reclassified from hedging reserve (672) 2,239 12,180 Changes in working capital: Inventories (120) 106 (56) Prepayments (8,825) (282) 6,527 Contract assets – accrued revenue 4,305 5,422 (6,434) Trade receivables (1) (520) 71,695 (83,197) Other receivables (1,109) (221) 949 Contract liabilities – deferred revenue 41,618 (49,407) (33,167) Trade and other payables (1) 22,480 5,415 (11,371) Provisions 7,842 4,802 — Cash generated from operations 121,704 137,778 17,569 (1) These amounts exclude non-cash movements and movements in respect of items reported elsewhere in the consolidated statement of cash flows, primarily in investing activities (where the timing of acquisitions and disposals and related cash flows can differ), resulting in: ● an increase in changes to trade receivables of £7,673,000 (2021: decrease of £17,210,000 ; 2020: increase of £42,742,000 ); and ● an increase in changes to trade and other payables of £40,276,000 (2021: decrease of £12,652,000 ; 2020: decrease of £30,784,000 ). |
Schedule of reconciliation of the movement in the Group's net debt | Non-current Current Cash and cash borrowings borrowings equivalents Total £’000 £’000 £’000 £’000 Net debt at 1 July 2020 520,010 5,605 (51,539) 474,076 Cash flows (625) 42,321 (61,351) (19,655) Other changes (54,336) 17,261 2,232 (34,843) Net debt at 30 June 2021 465,049 65,187 (110,658) 419,578 Cash flows — 40,000 (7,980) 32,020 Other changes 65,316 570 (2,585) 63,301 Net debt at 30 June 2022 530,365 105,757 (121,223) 514,899 |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Share-based payments | |
Schedule of movements in the number of share awards outstanding | Number of Class A ordinary shares Gross award Post net settlement At 1 July 2021 373,973 199,062 Awarded 233,399 98,888 Vested (166,215) (67,659) Forfeited (72,723) (38,240) At 30 June 2022 368,434 192,051 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Financial risk management | |
Schedule of forward foreign currency contracts outstanding at balance sheet date | 2022 2021 Average Foreign Notional Fair Average Foreign Notional Fair exchange currency value value exchange currency value value rate €’000 £’000 £’000 rate €’000 £’000 £’000 Buy Euro 1.1675 (86,262) (73,885) 234 1.1573 (34,576) (29,875) (78) |
Schedule of exposure to material foreign currency risk | 2022 2021 Euro US Dollar Euro US Dollar £’000 £’000 £’000 £’000 Contract assets — 1,890 250 4,477 2,499 Trade receivables 28,832 15,575 44,855 10,274 Cash and cash equivalents 49,277 32,460 57,004 17,290 Derivative financial assets — 2,458 — — Trade and other payables (120,994) (149) (90,608) (454) Borrowings — (536,038) — (470,068) Derivative financial liabilities — — — (5,121) (40,995) (485,444) 15,728 (445,580) |
Schedule of gross trade receivables analysed by due date and whether or not impaired | 2022 2021 £’000 £’000 Neither past due nor impaired 64,434 58,579 Past due, not impaired 14,533 12,195 Not past due, impaired 110 549 Past due, impaired 12,130 4,422 Gross trade receivables 91,207 75,745 |
Schedule of movements on provision for impairment of trade receivables | 2022 2021 £’000 £’000 Provision as of 1 July 4,971 13,150 Increase in provision recognized in profit or loss during the year 2,277 1,054 Unused amount reversed – cash received (93) (188) Receivables written off during the year as uncollectible (764) (9,003) Receivables offset against contract liabilities - deferred revenue 5,842 90 Foreign exchange gains/(losses) on retranslation recognized in profit or loss during the year 7 (132) Provision as of 30 June 12,240 4,971 |
Schedule of contractual undiscounted cash flows including interest | Less than 1 Between 1 Between 2 year and 2 years and 5 years Over 5 years £’000 £’000 £’000 £’000 Trade and other payables excluding social security and other taxes (1) 198,693 56,418 49,294 — Borrowings 120,091 19,660 57,979 552,422 Lease liabilities 1,673 514 248 3,543 320,457 76,592 107,521 555,965 Non-trading derivative financial instruments (2) Cash inflow (1,294) (1,336) (63) — At 30 June 2022 319,163 75,256 107,458 555,965 Trade and other payables excluding social security and other taxes (1) 160,375 41,794 27,908 — Borrowings 77,203 16,646 45,142 489,983 Lease liabilities 1,488 493 487 3,642 239,066 58,933 73,537 493,625 Non-trading derivative financial instruments (2) Cash outflow 1,793 1,707 1,707 — Cash inflow (8) — — — At 30 June 2021 240,851 60,640 75,244 493,625 (1) Social security and other taxes are excluded from trade and other payables balance, as this analysis is required only for financial instruments. (2) Non-trading derivatives are included at their fair value at the reporting date. |
Schedule of net borrowings being hedged at balance sheet date | 2022 2021 $’000 $’000 USD borrowings 650,000 650,000 Hedged USD cash (37,000) (23,700) Net USD debt 613,000 626,300 Hedged future USD revenues (22,800) (61,453) Unhedged USD borrowings (1) 590,200 564,847 Closing exchange rate 1.2151 1.3820 (1) |
Schedule of interest rate swaps at reporting date that are used to hedge borrowings | 2022 2021 Current hedged principal value of loan outstanding ($‘000) 150,000 150,000 Rate received 1 month $ LIBOR 1 month $ LIBOR Rate paid Fixed 2.032% Fixed 2.032% Expiry date 30 June 2024 30 June 2024 |
Schedule of movements on the hedging reserve | Future US dollar Interest Total, Total, revenues rate swap Other before tax Tax after tax £’000 £’000 £’000 £’000 £’000 £’000 Balance at 1 July 2019 (27,337) (2,298) 202 (29,433) (6,111) (35,544) Exchange differences on hedged foreign exchange risks (2,818) — 353 (2,465) — (2,465) Reclassified to profit or loss 12,214 — (34) 12,180 — 12,180 Change in fair value — (6,838) — (6,838) — (6,838) Tax relating to above — — — — 102 102 Movement recognized in other comprehensive income 9,396 (6,838) 319 2,877 102 2,979 Balance at 30 June 2020 (17,941) (9,136) 521 (26,556) (6,009) (32,565) Exchange differences on hedged foreign exchange risks 4,325 — (2,490) 1,835 — 1,835 Reclassified to profit or loss 14,956 — 1,892 16,848 — 16,848 Change in fair value — 4,015 — 4,015 — 4,015 Tax relating to above — — — — (569) (569) Movement recognized in other comprehensive income 19,281 4,015 (598) 22,698 (569) 22,129 Balance at 30 June 2021 1,340 (5,121) (77) (3,858) (6,578) (10,436) Exchange differences on hedged foreign exchange risks (1,733) — 300 (1,433) — (1,433) Reclassified to profit or loss (770) — (228) (998) — (998) Change in fair value — 7,579 — 7,579 — 7,579 Tax relating to above — — — — (1,287) (1,287) Movement recognized in other comprehensive income (2,503) 7,579 72 5,148 (1,287) 3,861 Reclassified — — 7,525 7,525 — 7,525 Balance at 30 June 2022 (1,163) 2,458 7,520 8,815 (7,865) 950 |
Contingent liabilities and co_2
Contingent liabilities and contingent assets (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Contingent liabilities and contingent assets | |
Schedule of potential amount payable by type of condition and category of player | First team squad Other Total £’000 £’000 £’000 Type of condition: MUFC appearances/team success/new contract 58,462 10,609 69,071 International appearances 10,158 1,156 11,314 Awards 31,987 — 31,987 100,607 11,765 112,372 As of 30 June 2021, the potential amount payable by type of condition and category of player was: First team squad Other Total £’000 £’000 £’000 Type of condition: MUFC appearances/team success/new contract 39,792 9,285 49,077 International appearances 11,182 45 11,227 Awards 31,689 — 31,689 82,663 9,330 91,993 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Commitments | |
Schedule of minimum rentals in relation to non-cancellable operating lease | 2022 2021 £’000 £’000 Within 1 year 1,734 1,888 Later than 1 year but not later than 5 years 3,423 4,256 Later than 5 years 10,665 11,390 15,822 17,534 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Subsidiaries | |
Schedule of subsidiary undertakings | % of ownership Name of entity Principal activity interest Red Football Finance Limited* Dormant 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 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 Dormant company 100 * Direct investment of Manchester United plc, others are held by subsidiary undertakings. |
Additional information - Fina_2
Additional information - Financial Statement Schedule I (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Additional information - Financial Statement Schedule I | |
Statement of condensed statement of profit or loss | Year ended 30 June 2022 2021 2020 £’000 £’000 £’000 Operating expenses (4,325) (4,253) (2,964) Income from shares in group undertakings 33,553 10,718 44,534 Finance income 124 — 82 Profit before income tax 29,352 6,465 41,652 Income tax expense (1) (1) (9) Profit for the year 29,351 6,464 41,643 |
Statement of condensed balance sheet | As of 30 June 2022 2021 £’000 £’000 ASSETS Non-current assets Investment in subsidiaries 319,265 319,265 319,265 319,265 Current assets Other receivables 1,047 1,197 Cash and cash equivalents 131 148 1,178 1,345 Total assets 320,443 320,610 EQUITY AND LIABILITIES Equity Share capital 53 53 Share premium 68,822 68,822 Treasury shares (21,305) (21,305) Retained earnings 258,109 262,113 305,679 309,683 Current liabilities Other payables 14,764 10,927 14,764 10,927 Total equity and liabilities 320,443 320,610 |
Statement of condensed statement of changes in equity | Share Share Treasury Retained capital premium shares earnings Total equity £’000 £’000 £’000 £’000 £’000 Balance at 1 July 2019 53 68,822 — 245,050 313,925 Profit for the year — — — 41,643 41,643 Total comprehensive income for the year — — — 41,643 41,643 Acquisition of treasury shares — — (21,305) — (21,305) Equity-settled share based payments — — — 818 818 Dividends paid — — — (23,229) (23,229) Balance at 30 June 2020 53 68,822 (21,305) 264,282 311,852 Profit for the year — — — 6,464 6,464 Total comprehensive income for the year — — — 6,464 6,464 Equity-settled share based payments — — — 2,085 2,085 Dividends paid — — — (10,718) (10,718) Balance at 30 June 2021 53 68,822 (21,305) 262,113 309,683 Profit for the year — — — 29,351 29,351 Total comprehensive income for the year — — — 29,351 29,351 Equity-settled share based payments — — — 198 198 Dividends paid — — — (33,553) (33,553) Balance at 30 June 2022 53 68,822 (21,305) 258,109 305,679 |
Statement of condensed statement of cash flows | Year ended 30 June 2022 2021 2020 £’000 £’000 £’000 Cash flows from operating activities Profit before income tax 29,352 6,465 41,652 Adjustments for: Non-cash employee benefit expense - equity-settled share-based payments 198 2,085 818 Foreign exchange (gains)/ losses on operating activities (35) 263 (102) Changes in working capital: Other receivables 150 — (89) Other payables 3,837 2,120 2,243 Tax paid (1) (1) (9) Net cash inflow from operating activities 33,501 10,932 44,513 Cash flows from financing activities Acquisition of treasury shares — — (21,305) Dividends paid (33,553) (10,718) (23,229) Net cash outflow from financing activities (33,553) (10,718) (44,534) Net (decrease)/increase in cash and cash equivalents (52) 214 (21) Cash and cash equivalents at beginning of year 148 197 116 Effect of exchange rate changes on cash and cash equivalents 35 (263) 102 Cash and cash equivalents at end of year 131 148 197 |
Statement of reconciliation of parent and consolidated financial information | 2022 2021 2020 £’000 £’000 £’000 IFRS (loss)/profit reconciliation: Parent only — 29,351 6,464 41,643 Additional loss if subsidiaries had been accounted for on the equity method of accounting as opposed to cost (144,861) (98,680) (64,876) Consolidated IFRS loss for the year (115,510) (92,216) (23,233) IFRS equity reconciliation: Parent only — IFRS equity 305,679 309,683 311,852 Additional (loss)/profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost (178,171) (37,171) 39,380 Consolidated — IFRS equity 127,508 272,512 351,232 |
Summary of significant accoun_4
Summary of significant accounting policies - Basis of preparation (Details) | 12 Months Ended | |||
Jun. 30, 2022 GBP (£) item | Jun. 30, 2022 USD ($) | Jun. 30, 2021 GBP (£) | Jun. 30, 2021 USD ($) | |
COVID-19 pandemic | ||||
Number of domestic games played instead of overseas tour | item | 4 | |||
Number of home domestic games played instead of overseas tour | item | 2 | |||
Cash resources | £ 121,223,000 | £ 110,658,000 | ||
Borrowings | 636,122,000 | 530,236,000 | ||
Senior secured notes | ||||
COVID-19 pandemic | ||||
Notional amount | $ | $ 425,000,000 | $ 425,000,000 | ||
Borrowings | 347,173,000 | 304,474,000 | ||
Secured term loan facility | ||||
COVID-19 pandemic | ||||
Notional amount | $ | $ 225,000,000 | $ 225,000,000 | ||
Borrowings | 183,192,000 | 160,575,000 | ||
Revolving facilities | ||||
COVID-19 pandemic | ||||
Undrawn borrowing facilities | 200,000,000 | 140,000,000 | ||
Borrowings | £ 100,000,000 | £ 60,000,000 |
Summary of significant accoun_5
Summary of significant accounting policies - Effect of IBOR reform (Details) £ in Thousands | Jun. 30, 2022 GBP (£) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) |
Disclosure of detailed information about financial instruments | |||
Carrying value of assets which reference USD LIBOR and have not yet transitioned to an alternative interest rate benchmark | £ 2,458 | ||
Carrying value of liabilities which reference USD LIBOR and have not yet transitioned to an alternative interest rate benchmark | (183,191) | ||
Borrowings | |||
Disclosure of detailed information about financial instruments | |||
Carrying value of liabilities which reference USD LIBOR and have not yet transitioned to an alternative interest rate benchmark | (183,191) | ||
Derivative financial instruments | |||
Disclosure of detailed information about financial instruments | |||
Carrying value of assets which reference USD LIBOR and have not yet transitioned to an alternative interest rate benchmark | £ 2,458 | ||
Secured term loan facility | |||
Disclosure of detailed information about financial instruments | |||
Notional amount | $ | $ 225,000,000 | $ 225,000,000 |
Summary of significant accoun_6
Summary of significant accounting policies - Segment reporting (Details) | 12 Months Ended |
Jun. 30, 2022 segment | |
Segment reporting | |
Number of material segments | 1 |
Summary of significant accoun_7
Summary of significant accounting policies - Exchange rates (Details) | 12 Months Ended | ||||||||
Jun. 30, 2022 € / £ | Jun. 30, 2022 € / £ $ / £ | Jun. 30, 2021 € / £ | Jun. 30, 2021 $ / £ € / £ | Jun. 30, 2020 € / £ | Jun. 30, 2020 $ / £ € / £ | Jun. 30, 2022 $ / £ | Jun. 30, 2021 $ / £ | Jun. 30, 2020 $ / £ | |
Exchange rates | |||||||||
Closing rate | 1.1630 | 1.1630 | 1.1651 | 1.1651 | 1.0998 | 1.0998 | 1.2151 | 1.3820 | 1.2374 |
Average rate | 1.1787 | 1.3288 | 1.1382 | 1.3461 | 1.1391 | 1.2633 |
Revenue from contracts with c_3
Revenue from contracts with customers - Disaggregation of revenue from contract with customers (Details) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 GBP (£) component segment | Jun. 30, 2021 GBP (£) | Jun. 30, 2020 GBP (£) | |
Revenue from contracts with customers | |||
Number of material segments | segment | 1 | ||
Number of main components of revenue | component | 3 | ||
Revenue from contracts with customers | £ 583,201 | £ 494,117 | £ 509,041 |
Commercial | |||
Revenue from contracts with customers | |||
Revenue from contracts with customers | 257,820 | 232,205 | 279,044 |
Sponsorship | |||
Revenue from contracts with customers | |||
Revenue from contracts with customers | 147,881 | 140,209 | 182,709 |
Retail, merchandising, apparel & product licensing | |||
Revenue from contracts with customers | |||
Revenue from contracts with customers | 109,939 | 91,996 | 96,335 |
Broadcasting | |||
Revenue from contracts with customers | |||
Revenue from contracts with customers | 214,847 | 254,815 | 140,203 |
Domestic competitions | |||
Revenue from contracts with customers | |||
Revenue from contracts with customers | 140,629 | 174,683 | 115,415 |
European competitions | |||
Revenue from contracts with customers | |||
Revenue from contracts with customers | 67,477 | 73,827 | 16,836 |
Other | |||
Revenue from contracts with customers | |||
Revenue from contracts with customers | 6,741 | 6,305 | 7,952 |
Matchday | |||
Revenue from contracts with customers | |||
Revenue from contracts with customers | £ 110,534 | £ 7,097 | £ 89,794 |
Revenue from contracts with c_4
Revenue from contracts with customers - Revenue derived from entities accounting for more than 10% of revenue (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue from contracts with customers | |||
Revenue from contracts with customers | £ 583,201 | £ 494,117 | £ 509,041 |
Customer A | |||
Revenue from contracts with customers | |||
Revenue from contracts with customers | 146,114 | 177,160 | 118,069 |
Customer B | |||
Revenue from contracts with customers | |||
Revenue from contracts with customers | 76,377 | 77,426 | 77,852 |
Customer C | |||
Revenue from contracts with customers | |||
Revenue from contracts with customers | £ 67,477 | £ 73,827 | |
Customer D | |||
Revenue from contracts with customers | |||
Revenue from contracts with customers | £ 52,269 |
Revenue from contracts with c_5
Revenue from contracts with customers - Assets and liabilities related to contracts with customers (Details) - GBP (£) £ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from contracts with customers | ||
Contract liabilities - deferred revenue at beginning of year | £ (140,926) | £ (190,333) |
Recognized in revenue during the year | 108,001 | 135,560 |
Cash received/amounts invoiced during the year | (149,619) | (86,153) |
Contract liabilities - deferred revenue at end of year | (182,544) | (140,926) |
Current contract assets and contract liabilities | ||
Revenue from contracts with customers | ||
Contract assets - accrued revenue at beginning of year | 40,544 | 45,966 |
Recognized in revenue during the year | 34,948 | 39,037 |
Cash received/amounts invoiced during the year | (39,253) | (43,973) |
Loss allowance | (486) | |
Contract assets - accrued revenue at end of year | 36,239 | 40,544 |
Contract liabilities - deferred revenue at beginning of year | (117,984) | (171,574) |
Recognized in revenue during the year | 108,001 | 135,560 |
Cash received/amounts invoiced during the year | (149,619) | (86,153) |
Reclassified during the year | (6,245) | 4,183 |
Contract liabilities - deferred revenue at end of year | (165,847) | (117,984) |
Non-current contract assets and contract liabilities | ||
Revenue from contracts with customers | ||
Contract liabilities - deferred revenue at beginning of year | (22,942) | (18,759) |
Reclassified during the year | 6,245 | (4,183) |
Contract liabilities - deferred revenue at end of year | £ (16,697) | £ (22,942) |
Revenue from contracts with c_6
Revenue from contracts with customers - Significant estimates and judgments (Details) - adidas £ in Millions | Aug. 01, 2015 GBP (£) item | Jun. 30, 2022 item |
Estimates and judgments | ||
Term of agreement (in years) | 10 years | |
Minimum guarantee payable | £ 750 | |
Number of consecutive seasons of non-participation in Champions League that would impact guarantee payable by adidas | item | 2 | 2 |
Maximum increase in guarantee payable per year | £ 4 | |
Maximum possible percentage of reduction in guarantee per year | 30% |
Operating expenses (Details)
Operating expenses (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating expenses | |||
Employee benefit expenses (Note 7) | £ (384,141,000) | £ (322,600,000) | £ (284,029,000) |
Short-term and low value leases | (621,000) | (514,000) | (590,000) |
Auditors' remuneration: audit of parent company and consolidated financial statements | (485,000) | (30,000) | (30,000) |
Auditors' remuneration: audit of the Company's subsidiaries | (135,000) | (646,000) | (636,000) |
Auditors' remuneration: audit-related services | (14,000) | (14,000) | (13,000) |
Auditors' remuneration: other audit services | (80,000) | (105,000) | |
Auditors' remuneration: tax compliance and tax advice services | (13,000) | (35,000) | (446,000) |
Foreign exchange (losses)/gains on operating activities | (50,000) | (874,000) | 816,000 |
Depreciation - property, plant and equipment (Note 13) | (12,285,000) | (12,987,000) | (12,735,000) |
Depreciation - right-of-use assets (Note 14) | (1,749,000) | (1,698,000) | (1,656,000) |
Depreciation - investment properties (Note 15) | (280,000) | (274,000) | (365,000) |
Impairment - investment properties (Note 15) | (3,787,000) | ||
Amortization - intangible assets (Note 16) | (151,462,000) | (124,398,000) | (126,756,000) |
Sponsorship, other commercial and broadcasting costs | (17,174,000) | (10,861,000) | (20,097,000) |
External Matchday costs | (24,372,000) | (9,022,000) | (19,196,000) |
Property costs | (26,699,000) | (16,454,000) | (19,028,000) |
Other operating expenses (individually less than £10,000,000) | (48,268,000) | (37,912,000) | (33,656,000) |
Exceptional items (Note 6) | (24,692,000) | ||
Total operating expenses | (692,520,000) | (538,424,000) | (522,204,000) |
Other operating expenses, limit for individual disclosure | £ 10,000,000 | £ 10,000,000 | £ 10,000,000 |
Exceptional items (Details)
Exceptional items (Details) £ in Thousands | 12 Months Ended |
Jun. 30, 2022 GBP (£) | |
Exceptional items | |
Compensation for loss of office | £ 23,827 |
Football League pension scheme deficit (Note 29) | 865 |
Total exceptional items | £ 24,692 |
Employee benefit expenses (Deta
Employee benefit expenses (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Employee benefit expenses | |||
Wages and salaries (including bonuses) | £ (338,503,000) | £ (283,463,000) | £ (249,564,000) |
Social security costs | (40,881,000) | (33,773,000) | (29,743,000) |
Share-based payments (Note 28) | (1,026,000) | (2,002,000) | (1,435,000) |
Pension costs - defined contribution schemes (Note 29.2) | (3,731,000) | (3,362,000) | (3,287,000) |
Total employee benefit expenses | £ (384,141,000) | £ (322,600,000) | £ (284,029,000) |
Employee benefit expenses - Ave
Employee benefit expenses - Average number of people employed (Details) - employee | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Average number of people employed | |||
Average number of employees | 1,035 | 983 | 992 |
Number of temporary staff during Matchdays | 1,045 | 945 | 3,593 |
Football - men's and women's players | |||
Average number of people employed | |||
Average number of employees | 124 | 118 | 115 |
Football - technical and coaching | |||
Average number of people employed | |||
Average number of employees | 189 | 176 | 176 |
Commercial | |||
Average number of people employed | |||
Average number of employees | 151 | 131 | 129 |
Media | |||
Average number of people employed | |||
Average number of employees | 94 | 90 | 88 |
Administration and other | |||
Average number of people employed | |||
Average number of employees | 477 | 468 | 484 |
Employee benefit expenses Key m
Employee benefit expenses Key management compensation (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Employee benefit expenses | |||
Short-term employee benefits | £ (6,893) | £ (8,326) | £ (9,507) |
Share-based payments | (284) | (1,125) | (1,017) |
Post-employment benefits | (8) | (5) | (20) |
Total key management compensation | £ (7,185) | £ (9,456) | £ (10,544) |
Profit on disposal of intangi_3
Profit on disposal of intangible assets (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Profit on disposal of intangible assets | |||
Profit on disposal of registrations | £ 18,971 | £ 4,601 | £ 15,664 |
Player loan income | 2,964 | 2,780 | 2,720 |
Total profit on disposal of intangible assets | £ 21,935 | £ 7,381 | £ 18,384 |
Net finance (costs)_income (Det
Net finance (costs)/income (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net finance (costs)/income | |||
Interest payable on bank loans and overdrafts | £ (3,058) | £ (1,952) | £ (1,038) |
Interest payable on secured term loan facility, senior secured notes and revolving facilities | (19,975) | (17,262) | (19,485) |
Interest payable on lease liabilities (Note 14) | (97) | (109) | (131) |
Amortization of issue costs on secured term loan facility and senior secured notes | (713) | (626) | (579) |
Foreign exchange losses on retranslation of unhedged US dollar borrowings | (58,738) | (4,436) | |
Unwinding of discount relating to registrations | (2,363) | (892) | (1,508) |
Reclassified from hedging reserve | (14,631) | ||
Hedge ineffectiveness on cash flow hedges | (971) | (119) | |
Fair value movements on derivative financial instruments: | |||
Embedded foreign exchange derivatives | (95) | ||
Foreign currency options | (939) | ||
Total finance costs | (85,915) | (36,411) | (27,391) |
Interest receivable on short-term bank deposits | 145 | 3 | 1,352 |
Foreign exchange gains on retranslation of unhedged US dollar borrowings | 48,015 | ||
Reclassified from hedging reserve | 326 | ||
Hedge ineffectiveness on cash flow hedges | 1,234 | ||
Fair value movement on derivative financial instruments: | |||
Embedded foreign exchange derivatives | 23,205 | 58 | |
Total finance income | 23,676 | 49,310 | 1,352 |
Net finance (costs)/income | £ (62,239) | £ 12,899 | £ (26,039) |
Income tax credit_(expense) - C
Income tax credit/(expense) - Current tax and Deferred tax (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Current tax: | |||
Total current tax credit/(expense) | £ 4,682,000 | £ (4,170,000) | £ (989,000) |
Deferred tax: | |||
Total deferred tax credit/(expense) | 29,431,000 | (64,019,000) | (1,426,000) |
Total tax expense | |||
Total income tax credit/(expense) | 34,113,000 | (68,189,000) | (2,415,000) |
UK and US | |||
Current tax: | |||
Current tax on loss for the year | 5,084,000 | (3,972,000) | 551,000 |
Adjustment in respect of previous years | 223,000 | 490,000 | (598,000) |
US | |||
Deferred tax: | |||
Origination and reversal of temporary differences | 3,831,000 | 4,591,000 | |
Re-measurement of US deferred tax asset | (66,561,000) | (3,916,000) | |
Adjustment in respect of previous years | 973,000 | (1,150,000) | |
Total deferred tax credit/(expense) | (61,757,000) | (475,000) | |
UK | |||
Deferred tax: | |||
Origination and reversal of temporary differences | 29,142,000 | 9,762,000 | 2,452,000 |
Adjustment in respect of previous years | 289,000 | (800,000) | 512,000 |
Impact of change in corporate income tax rate | (11,224,000) | (3,915,000) | |
Total deferred tax credit/(expense) | 29,431,000 | (2,262,000) | (951,000) |
Other than UK and US | |||
Current tax: | |||
Current tax on loss for the year | £ (625,000) | £ (688,000) | £ (942,000) |
Income tax credit_(expense) - R
Income tax credit/(expense) - Reconciliation of total tax credit/(expense) (Details) - GBP (£) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliation of the total tax expense | ||||
Loss before income tax | £ (149,623,000) | £ (24,027,000) | £ (20,818,000) | |
Loss before tax multiplied by UK corporation tax rate (weighted average US federal corporate income tax rate) of 19.0% (2021: 21.0%; 2020: 21.0%) | 28,428,000 | 5,046,000 | 4,372,000 | |
Tax effects of: | ||||
Adjustment in respect of previous years | 512,000 | 663,000 | (1,236,000) | |
Difference in tax rates on non-US operations | 216,000 | 26,000 | ||
Recognition of UK R&D tax claims in respect of previous years | 537,000 | |||
Foreign exchange (losses)/gains on US dollar denominated tax basis | (3,146,000) | 735,000 | ||
(Expenses not deductible for tax purposes)/income not taxable | (1,197,000) | (526,000) | 757,000 | |
Irrecoverable foreign tax credits | (625,000) | |||
Impact of change in UK Corporation tax rate | 6,995,000 | (77,785,000) | ||
Unrealized foreign exchange gains/(losses) not taxable in the US | 7,343,000 | (3,690,000) | ||
Re-measurement of foreign tax credit US deferred tax asset | (3,916,000) | |||
Total income tax credit/(expense) | £ 34,113,000 | £ (68,189,000) | £ (2,415,000) | |
US | ||||
Tax effects of: | ||||
Corporate tax rate | 21% | 21% | 21% | |
UK | ||||
Tax effects of: | ||||
Corporate tax rate | 25% | 19% | 19% |
Income tax credit_(expense) - A
Income tax credit/(expense) - Additional information related to tax (Details) - GBP (£) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income tax related to recognition in other comprehensive income | ||||
Deferred tax (Note 17) | £ (1,287,000) | £ 1,448,000 | £ 1,901,000 | |
Current tax | (2,017,000) | (1,799,000) | ||
Total income tax (expense)/credit recognized in other comprehensive income | £ (1,287,000) | (569,000) | 102,000 | |
US | ||||
Income tax related to recognition in other comprehensive income | ||||
Deferred tax (Note 17) | £ 3,395,000 | £ 422,000 | ||
Tax rate | 21% | 21% | 21% | |
Non-cash deferred tax charge | £ 66,561,000 | £ 3,916,000 | ||
UK | ||||
Income tax related to recognition in other comprehensive income | ||||
Deferred tax (Note 17) | £ (1,287,000) | £ (1,947,000) | 1,479,000 | |
Tax rate | 25% | 19% | 19% | |
Non-cash deferred tax charge | £ 11,224,000 | £ 3,915,000 |
(Loss)_earnings per share (Deta
(Loss)/earnings per share (Details) £ / shares in Units, £ in Thousands, shares in Thousands | 12 Months Ended | |||
Jun. 30, 2022 GBP (£) £ / shares item shares | Jun. 30, 2021 GBP (£) £ / shares shares | Jun. 30, 2020 GBP (£) £ / shares shares | ||
(Loss)/earnings per share | ||||
Loss for the year | £ | £ (115,510) | £ (92,216) | £ (23,233) | |
Basic loss per share | £ / shares | £ (0.7086) | £ (0.5660) | £ (0.1414) | |
Diluted loss per share | £ / shares | [1] | £ (0.7086) | £ (0.5660) | £ (0.1414) |
Number of categories of dilutive potential ordinary shares | item | 1 | |||
Weighted average number of ordinary shares used as the denominator in calculating basic loss per share | 163,001 | 162,939 | 164,253 | |
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted (loss)/earnings per share | 163,001 | 162,939 | 164,253 | |
Class A ordinary shares | ||||
(Loss)/earnings per share | ||||
Weighted average number of ordinary shares used as the denominator in calculating basic loss per share | 51,952 | 41,939 | 40,573 | |
Class B ordinary shares | ||||
(Loss)/earnings per share | ||||
Weighted average number of ordinary shares used as the denominator in calculating basic loss per share | 112,732 | 122,683 | 124,000 | |
Treasury shares | ||||
(Loss)/earnings per share | ||||
Weighted average number of ordinary shares used as the denominator in calculating basic loss per share | 1,683 | 1,683 | 320 | |
[1] For the years ended 30 June 2022, 2021 and 2020, potential ordinary shares are anti-dilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded. |
Dividends (Details)
Dividends (Details) | 12 Months Ended | |||||
Jun. 30, 2022 GBP (£) £ / shares | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 GBP (£) £ / shares | Jun. 30, 2021 USD ($) $ / shares | Jun. 30, 2020 GBP (£) £ / shares | Jun. 30, 2020 USD ($) $ / shares | |
Dividends | ||||||
Dividends paid | £ 33,553,000 | $ 44,010,000 | £ 10,718,000 | $ 14,665,000 | £ 23,229,000 | $ 29,554,000 |
Dividends paid per share | (per share) | £ 0.21 | $ 0.27 | £ 0.07 | $ 0.09 | £ 0.14 | $ 0.18 |
Property, plant and equipment_2
Property, plant and equipment (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliation of changes in property, plant and equipment | |||
Opening amount | £ 247,059,000 | £ 254,439,000 | |
Additions | 7,887,000 | 5,607,000 | |
Depreciation charge | (12,285,000) | (12,987,000) | £ (12,735,000) |
Closing amount | 242,661,000 | 247,059,000 | 254,439,000 |
Net book amount of property, plant and equipment pledged as security | 209,442,000 | 213,452,000 | |
Cost / gross value | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 390,824,000 | 388,863,000 | |
Closing amount | 396,333,000 | 390,824,000 | 388,863,000 |
Accumulated depreciation, amortization and impairment | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | (143,765,000) | (134,424,000) | |
Closing amount | (153,672,000) | (143,765,000) | (134,424,000) |
Property | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 219,120,000 | 214,465,000 | |
Additions | 2,390,000 | 721,000 | |
Transfers | 7,366,000 | ||
Depreciation charge | (3,394,000) | (3,432,000) | |
Closing amount | 218,116,000 | 219,120,000 | 214,465,000 |
Property | Cost / gross value | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 278,987,000 | 270,900,000 | |
Closing amount | 281,377,000 | 278,987,000 | 270,900,000 |
Property | Accumulated depreciation, amortization and impairment | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | (59,867,000) | (56,435,000) | |
Closing amount | (63,261,000) | (59,867,000) | (56,435,000) |
Plant and machinery | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 5,345,000 | 5,761,000 | |
Additions | 2,706,000 | 3,091,000 | |
Transfers | 231,000 | ||
Depreciation charge | (3,013,000) | (3,507,000) | |
Closing amount | 5,269,000 | 5,345,000 | 5,761,000 |
Plant and machinery | Cost / gross value | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 38,309,000 | 38,222,000 | |
Closing amount | 39,562,000 | 38,309,000 | 38,222,000 |
Plant and machinery | Accumulated depreciation, amortization and impairment | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | (32,964,000) | (32,461,000) | |
Closing amount | (34,293,000) | (32,964,000) | (32,461,000) |
Fixtures and fittings | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 22,594,000 | 34,213,000 | |
Additions | 2,791,000 | 1,795,000 | |
Transfers | (231,000) | (7,366,000) | |
Depreciation charge | (5,878,000) | (6,048,000) | |
Closing amount | 19,276,000 | 22,594,000 | 34,213,000 |
Fixtures and fittings | Cost / gross value | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | 73,528,000 | 79,741,000 | |
Closing amount | 75,394,000 | 73,528,000 | 79,741,000 |
Fixtures and fittings | Accumulated depreciation, amortization and impairment | |||
Reconciliation of changes in property, plant and equipment | |||
Opening amount | (50,934,000) | (45,528,000) | |
Closing amount | £ (56,118,000) | £ (50,934,000) | £ (45,528,000) |
Property, plant and equipment -
Property, plant and equipment - Depreciation methods and useful lives (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Freehold property acquired before 1 August 1999 | |
Property, plant and equipment | |
Depreciation rate on reducing balance basis (as a percent) | 1.33% |
Freehold property acquired after 1 August 1999 | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 75 years |
Computer equipment and software (included within Plant and machinery) | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 3 years |
Fixtures and fittings | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 7 years |
Minimum | Plant and machinery | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 4 years |
Maximum | Plant and machinery | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 5 years |
Leases - Amounts recognized in
Leases - Amounts recognized in the consolidated balance sheet (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases | |||
Right-of-use assets | £ 4,072,000 | £ 4,383,000 | |
Additions to right-of-use assets | 1,428,000 | 1,522,000 | |
Lease liabilities: | |||
Current | 1,561,000 | 1,257,000 | |
Non-current | 2,869,000 | 3,083,000 | |
Total lease liabilities | 4,430,000 | 4,340,000 | £ 4,393,000 |
Property | |||
Leases | |||
Right-of-use assets | 3,655,000 | 4,004,000 | |
Plant and machinery | |||
Leases | |||
Right-of-use assets | £ 417,000 | £ 379,000 |
Leases - Movement in lease liab
Leases - Movement in lease liabilities (Details) - GBP (£) £ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Leases | ||
Beginning balance | £ 4,340 | £ 4,393 |
Cash flows | (1,444) | (1,684) |
Acquisition | 1,437 | 1,522 |
Accretion expense | 97 | 109 |
Ending balance | £ 4,430 | £ 4,340 |
Leases - Amounts recognized i_2
Leases - Amounts recognized in the consolidated statement of profit or loss (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases | |||
Depreciation - right-of-use assets | £ (1,749) | £ (1,698) | £ (1,656) |
Interest expense (included in finance cost) | (97) | (109) | (131) |
Expense relating to short-term leases (included in operating expenses) | (579) | (472) | (562) |
Expense relating to low value leases (included in operating expenses) | (42) | (42) | (28) |
Property | |||
Leases | |||
Depreciation - right-of-use assets | (1,534) | (1,534) | (1,530) |
Plant and machinery | |||
Leases | |||
Depreciation - right-of-use assets | £ (215) | £ (164) | £ (126) |
Investment properties (Details)
Investment properties (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investment property | |||
Opening amount | £ 20,553,000 | £ 20,827,000 | |
Depreciation charge | (280,000) | (274,000) | £ (365,000) |
Closing amount | 20,273,000 | 20,553,000 | 20,827,000 |
Rental revenue | 2,240,000 | 2,216,000 | |
Direct operating expenses from properties, all of which generated rental revenue | £ 294,000 | 761,000 | |
Useful lives of investment property (in years) | 50 years | ||
Cost / gross value | |||
Investment property | |||
Opening amount | £ 32,193,000 | 32,193,000 | |
Closing amount | 32,193,000 | 32,193,000 | 32,193,000 |
Accumulated depreciation, amortization and impairment | |||
Investment property | |||
Opening amount | (11,640,000) | (11,366,000) | |
Closing amount | (11,920,000) | (11,640,000) | £ (11,366,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed | |||
Investment property | |||
Opening amount | 24,700,000 | ||
Closing amount | £ 38,250,000 | £ 24,700,000 |
Intangible assets - Reconciliat
Intangible assets - Reconciliation of intangible assets (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliation of intangible assets | |||
Opening net book amount | £ 754,467 | £ 775,170 | |
Additions | 154,664 | 118,025 | |
Disposals | (14,391) | (14,330) | |
Amortization charge | (151,462) | (124,398) | £ (126,756) |
Closing net book amount | 743,278 | 754,467 | 775,170 |
Cost / gross value | |||
Reconciliation of intangible assets | |||
Opening net book amount | 1,299,307 | 1,267,525 | |
Closing net book amount | 1,219,467 | 1,299,307 | 1,267,525 |
Accumulated depreciation, amortization and impairment | |||
Reconciliation of intangible assets | |||
Opening net book amount | (544,840) | (492,355) | |
Closing net book amount | (476,189) | (544,840) | (492,355) |
Goodwill | |||
Reconciliation of intangible assets | |||
Opening net book amount | 421,453 | 421,453 | |
Closing net book amount | 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 |
Registrations | |||
Reconciliation of intangible assets | |||
Opening net book amount | 327,987 | 346,872 | |
Additions | 151,564 | 115,725 | |
Disposals | (14,391) | (14,330) | |
Amortization charge | (148,949) | (120,280) | |
Closing net book amount | 316,211 | 327,987 | 346,872 |
Registrations | Cost / gross value | |||
Reconciliation of intangible assets | |||
Opening net book amount | 861,210 | 831,275 | |
Closing net book amount | 779,197 | 861,210 | 831,275 |
Registrations | Accumulated depreciation, amortization and impairment | |||
Reconciliation of intangible assets | |||
Opening net book amount | (533,223) | (484,403) | |
Closing net book amount | (462,986) | (533,223) | (484,403) |
Other intangible assets | |||
Reconciliation of intangible assets | |||
Opening net book amount | 5,027 | 6,845 | |
Additions | 3,100 | 2,300 | |
Amortization charge | (2,513) | (4,118) | |
Closing net book amount | 5,614 | 5,027 | 6,845 |
Other intangible assets | Cost / gross value | |||
Reconciliation of intangible assets | |||
Opening net book amount | 16,644 | 14,797 | |
Closing net book amount | 18,817 | 16,644 | 14,797 |
Other intangible assets | Accumulated depreciation, amortization and impairment | |||
Reconciliation of intangible assets | |||
Opening net book amount | (11,617) | (7,952) | |
Closing net book amount | £ (13,203) | £ (11,617) | £ (7,952) |
Intangible assets - Impairment
Intangible assets - Impairment tests for goodwill (Details) - Goodwill | 12 Months Ended | |
Jun. 30, 2022 GBP (£) item | Jun. 30, 2021 | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit | ||
Financial budget period | 5 years | |
Terminal growth rate used to extrapolate cashflows (as a percent) | 2% | 1% |
Number of material cash generating units for impairment review | item | 1 | |
Pre-tax discount rate (as a percent) | 8.40% | 7.90% |
Percentage of increase in discount rate for sensitivity analysis | 1% | |
Impairment loss | £ | £ 0 |
Intangible assets - Amortizatio
Intangible assets - Amortization methods and useful lives (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Website, mobile applications and software | |
Other intangible assets | |
Estimated useful lives of other intangible assets | 3 years |
Trademark registrations | |
Other intangible assets | |
Estimated useful lives of other intangible assets | 10 years |
Intangible assets - Other intan
Intangible assets - Other intangible assets (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Intangible assets | |||
Intangible assets and goodwill | £ 743,278,000 | £ 754,467,000 | £ 775,170,000 |
Cost / gross value | |||
Intangible assets | |||
Intangible assets and goodwill | 1,219,467,000 | 1,299,307,000 | 1,267,525,000 |
Accumulated depreciation, amortization and impairment | |||
Intangible assets | |||
Intangible assets and goodwill | (476,189,000) | (544,840,000) | (492,355,000) |
Other intangible assets | |||
Intangible assets | |||
Intangible assets and goodwill | 5,614,000 | 5,027,000 | 6,845,000 |
Other intangible assets | Cost / gross value | |||
Intangible assets | |||
Intangible assets and goodwill | 18,817,000 | 16,644,000 | 14,797,000 |
Other intangible assets | Cost / gross value | Internally generated | |||
Intangible assets | |||
Intangible assets and goodwill | 2,103,000 | 2,103,000 | |
Other intangible assets | Accumulated depreciation, amortization and impairment | |||
Intangible assets | |||
Intangible assets and goodwill | (13,203,000) | (11,617,000) | (7,952,000) |
Other intangible assets | Accumulated depreciation, amortization and impairment | Internally generated | |||
Intangible assets | |||
Intangible assets and goodwill | (2,091,000) | (1,976,000) | |
Registrations | |||
Intangible assets | |||
Intangible assets and goodwill | £ 316,211,000 | £ 327,987,000 | 346,872,000 |
Useful life of assets beyond one year after current year | 3 years | 4 years | |
Registrations | Within 1 year | |||
Intangible assets | |||
Intangible assets and goodwill | £ 130,600,000 | £ 114,900,000 | |
Registrations | Cost / gross value | |||
Intangible assets | |||
Intangible assets and goodwill | 779,197,000 | 861,210,000 | 831,275,000 |
Registrations | Accumulated depreciation, amortization and impairment | |||
Intangible assets | |||
Intangible assets and goodwill | £ (462,986,000) | £ (533,223,000) | £ (484,403,000) |
Deferred tax - Analysis of the
Deferred tax - Analysis of the deferred tax (Details) - GBP (£) £ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Analysis of deferred tax | |||
Deferred tax liabilities | £ 7,402 | £ 35,546 | |
Net deferred tax liability/(asset) | 7,402 | 35,546 | £ (27,025) |
US | |||
Analysis of deferred tax | |||
Net deferred tax liability/(asset) | (58,362) | ||
UK | |||
Analysis of deferred tax | |||
Deferred tax liabilities | 7,402 | 35,546 | |
Net deferred tax liability/(asset) | £ 7,402 | £ 35,546 | £ 31,337 |
Deferred tax - Movements in net
Deferred tax - Movements in net deferred tax asset (Details) - GBP (£) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | £ 35,546,000 | £ (27,025,000) | ||
(Credited)/expensed to the statement of profit or loss (Note 10) | (29,431,000) | 64,019,000 | £ 1,426,000 | |
Expensed/(credited) to other comprehensive income (Note 10) | 1,287,000 | (1,448,000) | (1,901,000) | |
Net deferred tax liability/(asset) at end of year | £ 7,402,000 | 35,546,000 | (27,025,000) | |
US | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | (58,362,000) | |||
(Credited)/expensed to the statement of profit or loss (Note 10) | 61,757,000 | 475,000 | ||
Expensed/(credited) to other comprehensive income (Note 10) | £ (3,395,000) | (422,000) | ||
Net deferred tax liability/(asset) at end of year | £ (58,362,000) | |||
Tax rate | 21% | 21% | 21% | |
Unrecognised deferred tax assets | £ 87,609,000 | £ 97,187,000 | ||
US | Foreign tax credits | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | (27,815,000) | |||
(Credited)/expensed to the statement of profit or loss (Note 10) | 31,779,000 | |||
Expensed/(credited) to other comprehensive income (Note 10) | (3,964,000) | |||
Net deferred tax liability/(asset) at end of year | £ (27,815,000) | |||
Unrecognised deferred tax assets | 25,678,000 | |||
US | Net operating losses | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | (3,359,000) | (9,537,000) | ||
(Credited)/expensed to the statement of profit or loss (Note 10) | (4,492,000) | 6,328,000 | ||
Expensed/(credited) to other comprehensive income (Note 10) | (150,000) | |||
Net deferred tax liability/(asset) at end of year | (7,851,000) | (3,359,000) | (9,537,000) | |
Unrecognised deferred tax assets | 46,670,000 | |||
US | Unrealized foreign exchange and derivative movements | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | (2,296,000) | |||
(Credited)/expensed to the statement of profit or loss (Note 10) | 4,575,000 | 1,577,000 | ||
Expensed/(credited) to other comprehensive income (Note 10) | 719,000 | |||
Net deferred tax liability/(asset) at end of year | 4,575,000 | (2,296,000) | ||
US | Intangible assets | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | (9,070,000) | |||
(Credited)/expensed to the statement of profit or loss (Note 10) | 9,070,000 | |||
Net deferred tax liability/(asset) at end of year | (9,070,000) | |||
Unrecognised deferred tax assets | 4,088,000 | |||
US | Deferred revenue | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | (5,831,000) | |||
(Credited)/expensed to the statement of profit or loss (Note 10) | 5,831,000 | |||
Net deferred tax liability/(asset) at end of year | (5,831,000) | |||
US | Property, plant and equipment | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | 3,359,000 | 3,118,000 | ||
(Credited)/expensed to the statement of profit or loss (Note 10) | (83,000) | 241,000 | ||
Net deferred tax liability/(asset) at end of year | 3,276,000 | 3,359,000 | 3,118,000 | |
US | Salary not paid with 2.5 months of year end | ||||
Movements in net deferred tax asset | ||||
Unrecognised deferred tax assets | 5,892,000 | |||
US | Other | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | (6,931,000) | |||
(Credited)/expensed to the statement of profit or loss (Note 10) | 6,931,000 | |||
Net deferred tax liability/(asset) at end of year | (6,931,000) | |||
Unrecognised deferred tax assets | 5,281,000 | |||
UK | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | 35,546,000 | 31,337,000 | ||
(Credited)/expensed to the statement of profit or loss (Note 10) | (29,431,000) | 2,262,000 | 951,000 | |
Expensed/(credited) to other comprehensive income (Note 10) | 1,287,000 | 1,947,000 | (1,479,000) | |
Net deferred tax liability/(asset) at end of year | £ 7,402,000 | £ 35,546,000 | 31,337,000 | |
Tax rate | 25% | 19% | 19% | |
Non-cash deferred tax charge | £ 11,224,000 | 3,915,000 | ||
Unrecognised deferred tax assets | £ 0 | 0 | ||
UK | Accelerated tax depreciation | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | 609,000 | 608,000 | ||
(Credited)/expensed to the statement of profit or loss (Note 10) | (229,000) | 1,000 | ||
Net deferred tax liability/(asset) at end of year | 380,000 | 609,000 | 608,000 | |
UK | Non qualifying property | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | 17,482,000 | 13,290,000 | ||
(Credited)/expensed to the statement of profit or loss (Note 10) | (5,000) | 4,192,000 | ||
Net deferred tax liability/(asset) at end of year | 17,477,000 | 17,482,000 | 13,290,000 | |
UK | Property fair value adjustment | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | 17,442,000 | 13,735,000 | ||
(Credited)/expensed to the statement of profit or loss (Note 10) | (631,000) | 3,707,000 | ||
Net deferred tax liability/(asset) at end of year | 16,811,000 | 17,442,000 | 13,735,000 | |
UK | Net operating losses | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | (12,180,000) | |||
(Credited)/expensed to the statement of profit or loss (Note 10) | (32,427,000) | (12,180,000) | ||
Expensed/(credited) to other comprehensive income (Note 10) | 40,000 | |||
Net deferred tax liability/(asset) at end of year | (44,567,000) | (12,180,000) | ||
UK | Intangible assets | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | 15,000,000 | 9,881,000 | ||
(Credited)/expensed to the statement of profit or loss (Note 10) | 1,359,000 | 5,119,000 | ||
Net deferred tax liability/(asset) at end of year | 16,359,000 | 15,000,000 | 9,881,000 | |
UK | Other | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at beginning of year | (2,807,000) | (6,177,000) | ||
(Credited)/expensed to the statement of profit or loss (Note 10) | 2,502,000 | 1,423,000 | ||
Expensed/(credited) to other comprehensive income (Note 10) | 1,247,000 | 1,947,000 | ||
Net deferred tax liability/(asset) at end of year | 942,000 | £ (2,807,000) | £ (6,177,000) | |
UK | Due after 1 year | ||||
Movements in net deferred tax asset | ||||
Net deferred tax liability/(asset) at end of year | £ 7,402,000 |
Inventories (Details)
Inventories (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Inventories | |||
Finished goods | £ 2,200,000 | £ 2,080,000 | |
Cost of inventory recognized during the period | 11,345,000 | 5,061,000 | £ 6,443,000 |
Write down of inventories | 119,000 | 194,000 | 133,000 |
Reversal of previous inventory write-down | £ 194,000 | £ 127,000 | £ 22,000 |
Trade receivables (Details)
Trade receivables (Details) - GBP (£) | Jun. 30, 2022 | Jun. 30, 2021 |
Trade receivables | ||
Trade receivables | £ 78,967,000 | £ 70,774,000 |
Less: non-current portion | ||
Trade receivables | 29,757,000 | 20,404,000 |
Current trade receivables | 49,210,000 | 50,370,000 |
Transfer fees receivable | 50,418,000 | 43,153,000 |
Deferred revenue contractually payable to Group | 19,903,000 | 19,032,000 |
Due after 1 year | ||
Less: non-current portion | ||
Transfer fees receivable | 29,757,000 | 20,404,000 |
Cost / gross value | ||
Trade receivables | ||
Trade receivables | 91,207,000 | 75,745,000 |
Accumulated impairment | ||
Trade receivables | ||
Trade receivables | (12,240,000) | (4,971,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Trade receivables | ||
Trade receivables | £ 80,150,000 | £ 71,819,000 |
Derivative financial instrume_3
Derivative financial instruments (Details) - GBP (£) £ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of detailed information about financial instruments | ||
Derivative financial instruments, assets | £ 23,059 | £ 817 |
Derivative financial instruments, liabilities | (81) | (5,734) |
Derivative financial instruments, non-current assets | 16,462 | 499 |
Derivative financial instruments, non-current liabilities | (49) | (5,472) |
Derivative financial instruments, current assets | 6,597 | 318 |
Derivative financial instruments, current liabilities | (32) | (262) |
Interest rate swap | Derivatives used for hedging: | ||
Disclosure of detailed information about financial instruments | ||
Derivative financial instruments, assets | 2,458 | |
Derivative financial instruments, non-current assets | 2,458 | |
Embedded foreign exchange derivatives | At fair value through profit and loss | ||
Disclosure of detailed information about financial instruments | ||
Derivative financial instruments, assets | 20,286 | 809 |
Derivative financial instruments, non-current assets | 13,786 | 499 |
Forward foreign exchange contracts | At fair value through profit and loss | ||
Disclosure of detailed information about financial instruments | ||
Derivative financial instruments, assets | 315 | 8 |
Derivative financial instruments, non-current assets | 218 | |
Interest rate swap | Derivatives used for hedging: | ||
Disclosure of detailed information about financial instruments | ||
Derivative financial instruments, liabilities | (5,121) | |
Derivative financial instruments, non-current liabilities | (5,121) | |
Embedded foreign exchange derivatives | At fair value through profit and loss: | ||
Disclosure of detailed information about financial instruments | ||
Derivative financial instruments, liabilities | (527) | |
Derivative financial instruments, non-current liabilities | (351) | |
Forward foreign exchange contracts | Derivatives used for hedging: | ||
Disclosure of detailed information about financial instruments | ||
Derivative financial instruments, liabilities | (28) | |
Forward foreign exchange contracts | At fair value through profit and loss: | ||
Disclosure of detailed information about financial instruments | ||
Derivative financial instruments, liabilities | (81) | £ (58) |
Derivative financial instruments, non-current liabilities | £ (49) |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - GBP (£) £ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Cash and cash equivalents | ||
Cash at bank and in hand | £ 121,223 | £ 110,658 |
Share capital (Details)
Share capital (Details) | 12 Months Ended | |||
Jun. 30, 2022 GBP (£) Vote item shares | Jun. 30, 2021 GBP (£) shares | Jun. 30, 2022 $ / shares | Jun. 30, 2022 GBP (£) shares | |
Ordinary shares | ||||
Balance at the beginning | £ | £ 53,000 | |||
Balance at the end | £ | £ 53,000 | £ 53,000 | ||
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% | |||
Treasury shares | £ | £ 21,305,000 | £ 21,305,000 | ||
Ordinary shares | ||||
Number of shares | ||||
Balance at the beginning (in shares) | 164,677,000 | 164,622,000 | ||
Employee share-based compensation awards - issue of shares (in shares) | 68,000 | 55,000 | ||
Balance at the end (in shares) | 164,745,000 | 164,677,000 | ||
Ordinary shares | ||||
Balance at the beginning | £ | £ 53,000 | £ 53,000 | ||
Employee share-based compensation awards - issue of shares | £ | 0 | 0 | ||
Balance at the end | £ | £ 53,000 | £ 53,000 | ||
Class A ordinary shares | ||||
Number of shares | ||||
Balance at the beginning (in shares) | 44,969,701 | |||
Balance at the end (in shares) | 54,537,360 | 44,969,701 | ||
Ordinary shares | ||||
Par value per ordinary share (in dollars per share) | $ / shares | $ 0.0005 | |||
Number of voting right per share | Vote | 1 | |||
Number of shares issued on conversion | 9,500,000 | |||
Number of shares held in treasury | 1,682,896 | |||
Treasury shares | £ | £ 21,305,000 | |||
Class B ordinary shares | ||||
Number of shares | ||||
Balance at the beginning (in shares) | 119,707,613 | |||
Balance at the end (in shares) | 110,207,613 | 119,707,613 | ||
Ordinary shares | ||||
Par value per ordinary share (in dollars per share) | $ / shares | $ 0.0005 | |||
Number of voting right per share | Vote | 10 | |||
Percentage of ordinary shares outstanding below which Class B shares will convert to Class A | 10% | |||
Percentage of voting power of shareholders | 67% |
Treasury shares (Details)
Treasury shares (Details) - GBP (£) £ in Thousands, shares in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Treasury shares, Value | ||||
Value of shares | £ 127,508 | £ 272,512 | £ 351,232 | £ 415,202 |
Treasury shares | ||||
Treasury shares, Number of shares | ||||
Number of shares | (1,683) | (1,683) | ||
Treasury shares, Value | ||||
Value of shares | £ (21,305) | £ (21,305) | £ (21,305) |
Trade and other payables (Detai
Trade and other payables (Details) - GBP (£) | Jun. 30, 2022 | Jun. 30, 2021 |
Trade and other payables | ||
Trade payables | £ 192,863,000 | £ 143,400,000 |
Other payables | 18,982,000 | 22,297,000 |
Accrued expenses | 89,016,000 | 61,990,000 |
Social security and other taxes | 22,073,000 | 32,491,000 |
Total trade and other payables | 322,934,000 | 260,178,000 |
Less: non-current portion | ||
Trade payables | 101,301,000 | 66,778,000 |
Other payables | 1,046,000 | 739,000 |
Non-current trade and other payables | 102,347,000 | 67,517,000 |
Current trade and other payables | 220,587,000 | 192,661,000 |
Transfer fees and other associated costs | 181,545,000 | 136,309,000 |
Liabilities from share-based payment transactions | 828,000 | 616,000 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Trade and other payables | ||
Trade payables | 196,396,000 | 145,775,000 |
Due after 1 year | ||
Less: non-current portion | ||
Transfer fees and other associated costs | 101,301,000 | 66,778,000 |
Between 1 and 2 years | ||
Less: non-current portion | ||
Transfer fees and other associated costs | 54,732,000 | 40,228,000 |
Between 2 and 5 years | ||
Less: non-current portion | ||
Transfer fees and other associated costs | £ 46,569,000 | £ 26,550,000 |
Borrowings (Details)
Borrowings (Details) | 12 Months Ended | 18 Months Ended | |||
Jun. 30, 2022 GBP (£) | Sep. 30, 2022 GBP (£) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 GBP (£) | Jun. 30, 2021 USD ($) | |
Disclosure of detailed information about borrowings | |||||
Total borrowings | £ 636,122,000 | £ 530,236,000 | |||
Non-current borrowings | 530,365,000 | 465,049,000 | |||
Current borrowings | 105,757,000 | 65,187,000 | |||
Minimum amount of consolidated profit or loss (EBITDA) to be maintained | £ 65,000,000 | ||||
Reduced minimum amount of consolidated profit or loss (EBITDA) to be maintained | £ 25,000,000 | ||||
Period of time for financial maintenance covenant testing | 12 months | ||||
Senior secured notes | |||||
Disclosure of detailed information about borrowings | |||||
Total borrowings | £ 347,173,000 | 304,474,000 | |||
Non-current borrowings | 347,173,000 | 304,474,000 | |||
Unamortized issue costs on borrowings | 2,591,000 | 3,050,000 | |||
Principal amount / Notional amount | $ | $ 425,000,000 | $ 425,000,000 | |||
Secured term loan facility | |||||
Disclosure of detailed information about borrowings | |||||
Total borrowings | 183,192,000 | 160,575,000 | |||
Non-current borrowings | 183,192,000 | 160,575,000 | |||
Unamortized issue costs on borrowings | 1,979,000 | 2,233,000 | |||
Principal amount / Notional amount | $ | $ 225,000,000 | $ 225,000,000 | |||
Revolving facilities | |||||
Disclosure of detailed information about borrowings | |||||
Total borrowings | 100,000,000 | 60,000,000 | |||
Undrawn borrowing facilities | 200,000,000 | 140,000,000 | |||
Accrued interest on senior secured notes and revolving credit facilities | |||||
Disclosure of detailed information about borrowings | |||||
Total borrowings | £ 5,757,000 | £ 5,187,000 | |||
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 | ||||
Minimum | Senior secured notes | |||||
Disclosure of detailed information about borrowings | |||||
Debt redemption, percentage of aggregate principal amount | 5% | ||||
Minimum | Floating interest rate | Secured term loan facility | |||||
Disclosure of detailed information about borrowings | |||||
Adjustment to interest rate basis | 1.25% | 1.25% | |||
Maximum | Senior secured notes | |||||
Disclosure of detailed information about borrowings | |||||
Debt redemption, percentage of aggregate principal amount | 100% | ||||
Maximum | Floating interest rate | Secured term loan facility | |||||
Disclosure of detailed information about borrowings | |||||
Adjustment to interest rate basis | 1.75% | 1.75% |
Provisions - Movement (Details)
Provisions - Movement (Details) - GBP (£) £ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Movements in provisions | ||
Opening balance | £ 4,802 | |
Transfer from accruals | £ 4,789 | |
Reassessment of provisions | 1,680 | (1,036) |
Additional provisions recognized | 6,162 | 1,049 |
Closing balance | 12,644 | 4,802 |
Non-current provisions | 11,586 | 4,157 |
Current provisions | 1,058 | 645 |
Other provision | ||
Movements in provisions | ||
Opening balance | 722 | |
Transfer from accruals | 695 | |
Reassessment of provisions | 421 | |
Additional provisions recognized | 27 | |
Closing balance | 1,143 | 722 |
Non-current provisions | 85 | |
Current provisions | £ 1,058 | |
Other provision | Minimum | ||
Movements in provisions | ||
Remaining term on leased properties | 5 months | |
Other provision | Maximum | ||
Movements in provisions | ||
Remaining term on leased properties | 3 years | |
Tax | ||
Movements in provisions | ||
Opening balance | £ 4,080 | |
Transfer from accruals | 4,094 | |
Reassessment of provisions | 1,259 | (1,036) |
Additional provisions recognized | 6,162 | 1,022 |
Closing balance | 11,501 | £ 4,080 |
Non-current provisions | £ 11,501 |
Cash flow information (Details)
Cash flow information (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flow information | |||
Loss before income tax | £ (149,623,000) | £ (24,027,000) | £ (20,818,000) |
Depreciation | 14,314,000 | 14,959,000 | 14,756,000 |
Impairment charge | 3,787,000 | ||
Amortization | 151,462,000 | 124,398,000 | 126,756,000 |
Profit on disposal of intangible assets | (21,935,000) | (7,381,000) | (18,384,000) |
Net finance costs/(income) | 62,239,000 | (12,899,000) | 26,039,000 |
Non-cash employee benefit expense - equity-settled share-based payments | 198,000 | 2,085,000 | 818,000 |
Foreign exchange losses/(gains) on operating activities | 50,000 | 874,000 | (816,000) |
Reclassified from hedging reserve | (672,000) | 2,239,000 | 12,180,000 |
Changes in working capital: | |||
Inventories | (120,000) | 106,000 | (56,000) |
Prepayments | (8,825,000) | (282,000) | 6,527,000 |
Contract assets - accrued revenue | 4,305,000 | 5,422,000 | (6,434,000) |
Trade receivables | (520,000) | 71,695,000 | (83,197,000) |
Other receivables | (1,109,000) | (221,000) | 949,000 |
Contract liabilities - deferred revenue | 41,618,000 | (49,407,000) | (33,167,000) |
Trade and other payables | 22,480,000 | 5,415,000 | (11,371,000) |
Provisions | 7,842,000 | 4,802,000 | |
Cash generated from operations | 121,704,000 | 137,778,000 | 17,569,000 |
Adjustments for: | |||
Increase/(decrease) in changes to trade receivables | 7,673,000 | (17,210,000) | 42,742,000 |
Increase/(decrease) in changes in trade and other payables | £ 40,276,000 | £ (12,652,000) | £ (30,784,000) |
Cash flow information - Net deb
Cash flow information - Net debt (Details) - GBP (£) £ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of detailed information about borrowings | ||
Net debt at beginning of the year | £ 419,578 | £ 474,076 |
Net debt cash flows | 32,020 | (19,655) |
Net debt other movement | 63,301 | (34,843) |
Net debt at end of the year | 514,899 | 419,578 |
Non-current borrowings | ||
Disclosure of detailed information about borrowings | ||
Net debt at beginning of the year | 465,049 | 520,010 |
Net debt cash flows | (625) | |
Net debt other movement | 65,316 | (54,336) |
Net debt at end of the year | 530,365 | 465,049 |
Current borrowings | ||
Disclosure of detailed information about borrowings | ||
Net debt at beginning of the year | 65,187 | 5,605 |
Net debt cash flows | 40,000 | 42,321 |
Net debt other movement | 570 | 17,261 |
Net debt at end of the year | 105,757 | 65,187 |
Cash and cash equivalents | ||
Disclosure of detailed information about borrowings | ||
Net debt at beginning of the year | (110,658) | (51,539) |
Net debt cash flows | (7,980) | (61,351) |
Net debt other movement | (2,585) | 2,232 |
Net debt at end of the year | £ (121,223) | £ (110,658) |
Share-based payments (Details)
Share-based payments (Details) | 12 Months Ended | ||||
Jun. 30, 2022 $ / shares shares | Jun. 30, 2022 GBP (£) EquityInstruments £ / shares shares | Jun. 30, 2021 $ / shares | Jun. 30, 2021 GBP (£) EquityInstruments £ / shares | Jun. 30, 2020 GBP (£) | |
Disclosure of terms and conditions of share-based payment arrangement | |||||
Expenses related to equity-settled share-based payment transactions | £ | £ 198,000 | £ 1,386,000 | £ 818,000 | ||
Expenses related to cash-settled share-based payment transactions | £ | £ 828,000 | £ 616,000 | £ 617,000 | ||
Class A ordinary shares | |||||
Disclosure of terms and conditions of share-based payment arrangement | |||||
Shares reserved for issuance | shares | 16,000,000 | 16,000,000 | |||
Shares that remain available for issuance | shares | 14,788,222 | 14,788,222 | |||
Outstanding in share-based payment arrangement at beginning of year | 199,062 | ||||
Awarded | 98,888 | ||||
Vested | (67,659) | ||||
Forfeited | (38,240) | ||||
Outstanding in share-based payment arrangement at end of year | 192,051 | 199,062 | |||
Fair value of shares awarded (per share) | (per share) | $ 10.59 | £ 8.72 | $ 14.66 | £ 10.61 | |
Class A ordinary shares | Gross award | |||||
Disclosure of terms and conditions of share-based payment arrangement | |||||
Outstanding in share-based payment arrangement at beginning of year | 373,973 | ||||
Awarded | 233,399 | ||||
Vested | (166,215) | ||||
Forfeited | (72,723) | ||||
Outstanding in share-based payment arrangement at end of year | 368,434 | 373,973 |
Pension arrangements (Details)
Pension arrangements (Details) - GBP (£) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Aug. 31, 2020 | |
Pension arrangements | ||||
Present value of additional contributions Group is expected to pay to remedy revised deficit | £ 865,000 | |||
Football League Pension and Life Assurance Scheme | ||||
Pension arrangements | ||||
Total deficit on actuarial valuation | £ 27,500,000 | |||
Contribution to current accrual of benefits | 0 | |||
Present value of additional contributions Group is expected to pay to remedy revised deficit | 865,000 | £ 0 | ||
Total contributions paid by Group based on actuarial valuation | 532,000 | |||
Percentage of increase in contributions | 5% | |||
Present value of outstanding contributions to pension arrangements | 1,602,000 | 1,257,000 | ||
Football League Pension and Life Assurance Scheme | Within 1 year | ||||
Pension arrangements | ||||
Present value of outstanding contributions to pension arrangements | 556,000 | 518,000 | ||
Football League Pension and Life Assurance Scheme | Due after 1 year | ||||
Pension arrangements | ||||
Present value of outstanding contributions to pension arrangements | £ 1,046,000 | £ 739,000 |
Pension arrangements - Defined
Pension arrangements - Defined contribution schemes (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Pension arrangements | |||
Contributions to defined contribution pension arrangements | £ 3,731,000 | £ 3,362,000 | £ 3,287,000 |
Amount of contributions due that had not been paid to pension schemes | £ 532,000 | £ 475,000 |
Financial risk management - Mar
Financial risk management - Market risk (Details) € in Thousands, $ in Millions | 12 Months Ended | |||||||||||||||||||||
Jun. 30, 2022 GBP (£) | Jun. 30, 2022 GBP (£) € / £ | Jun. 30, 2022 GBP (£) $ / £ | Jun. 30, 2022 USD ($) | Jun. 30, 2022 EUR (€) | Jun. 30, 2022 GBP (£) | Jun. 30, 2021 GBP (£) | Jun. 30, 2021 GBP (£) € / £ | Jun. 30, 2021 GBP (£) $ / £ | Jun. 30, 2021 USD ($) | Jun. 30, 2021 EUR (€) | Jun. 30, 2021 GBP (£) | Jun. 30, 2020 GBP (£) | Jun. 30, 2020 GBP (£) € / £ | Jun. 30, 2020 GBP (£) $ / £ | Jun. 30, 2020 USD ($) | Jun. 30, 2020 EUR (€) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 EUR (€) | Jun. 30, 2021 USD ($) | Jun. 30, 2021 EUR (€) | Jun. 30, 2019 GBP (£) | |
Details of currency and interest rate risks | ||||||||||||||||||||||
Revenue from contracts with customers | £ 583,201,000 | £ 494,117,000 | £ 509,041,000 | |||||||||||||||||||
Forward foreign currency contracts outstanding at the balance sheet date | ||||||||||||||||||||||
Average exchange rate | 1.1787 | 1.3288 | 1.1382 | 1.3461 | 1.1391 | 1.2633 | ||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Trade receivables | 78,967,000 | £ 78,967,000 | £ 78,967,000 | £ 78,967,000 | 70,774,000 | £ 70,774,000 | £ 70,774,000 | £ 70,774,000 | ||||||||||||||
Cash and cash equivalents | 121,223,000 | 121,223,000 | 121,223,000 | 121,223,000 | 110,658,000 | 110,658,000 | 110,658,000 | 110,658,000 | £ 51,539,000 | £ 51,539,000 | £ 51,539,000 | £ 307,637,000 | ||||||||||
Derivative financial assets | 23,059,000 | 23,059,000 | 23,059,000 | 23,059,000 | 817,000 | 817,000 | 817,000 | 817,000 | ||||||||||||||
Trade and other payables | (322,934,000) | (322,934,000) | (322,934,000) | (322,934,000) | (260,178,000) | (260,178,000) | (260,178,000) | (260,178,000) | ||||||||||||||
Borrowings | (636,122,000) | (636,122,000) | (636,122,000) | (636,122,000) | (530,236,000) | (530,236,000) | (530,236,000) | (530,236,000) | ||||||||||||||
Derivative financial liabilities | (81,000) | (81,000) | (81,000) | (81,000) | (5,734,000) | (5,734,000) | (5,734,000) | (5,734,000) | ||||||||||||||
Embedded foreign exchange derivatives | ||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Derivative financial assets | 20,286,000 | 20,286,000 | 20,286,000 | 20,286,000 | 809,000 | 809,000 | 809,000 | 809,000 | ||||||||||||||
Derivative financial liabilities | 0 | £ 0 | 0 | 0 | (527,000) | £ (527,000) | (527,000) | (527,000) | ||||||||||||||
Buy Euro | Forward foreign exchange contracts | ||||||||||||||||||||||
Forward foreign currency contracts outstanding at the balance sheet date | ||||||||||||||||||||||
Average exchange rate | € / £ | 1.1675 | 1.1573 | ||||||||||||||||||||
Principal amount / Notional amount | 73,885,000 | £ 73,885,000 | 73,885,000 | 73,885,000 | 29,875,000 | £ 29,875,000 | 29,875,000 | 29,875,000 | € 86,262 | € 34,576 | ||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Derivative financial assets | 234,000 | 234,000 | 234,000 | £ 234,000 | ||||||||||||||||||
Derivative financial liabilities | (78,000) | (78,000) | (78,000) | £ (78,000) | ||||||||||||||||||
Interest rate risk | ||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Percentage of reasonably possible change in risk assumption | 1% | 1% | ||||||||||||||||||||
Euro | ||||||||||||||||||||||
Details of currency and interest rate risks | ||||||||||||||||||||||
Revenue from contracts with customers | € | € 79,600 | € 84,100 | € 19,200 | |||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Contract assets - accrued revenue | 1,890,000 | 1,890,000 | 1,890,000 | £ 1,890,000 | 4,477,000 | 4,477,000 | 4,477,000 | £ 4,477,000 | ||||||||||||||
Trade receivables | 28,832,000 | 28,832,000 | 28,832,000 | 28,832,000 | 44,855,000 | 44,855,000 | 44,855,000 | 44,855,000 | ||||||||||||||
Cash and cash equivalents | 49,277,000 | 49,277,000 | 49,277,000 | 49,277,000 | 57,004,000 | 57,004,000 | 57,004,000 | 57,004,000 | ||||||||||||||
Trade and other payables | (120,994,000) | (120,994,000) | (120,994,000) | (120,994,000) | (90,608,000) | (90,608,000) | (90,608,000) | (90,608,000) | ||||||||||||||
Exposure to foreign currency, net | (40,995,000) | (40,995,000) | (40,995,000) | £ (40,995,000) | 15,728,000 | 15,728,000 | 15,728,000 | £ 15,728,000 | ||||||||||||||
Euro | Currency risk | ||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Percentage of reasonably possible change in risk assumption | 10% | 10% | ||||||||||||||||||||
Increase (decrease) in post-tax profit due to reasonably possible strengthening of GBP against currency | 3,000,000 | (1,100,000) | ||||||||||||||||||||
Increase (decrease) in equity due to reasonably possible strengthening of GBP against currency | 3,000,000 | 3,000,000 | 3,000,000 | £ 3,000,000 | (1,100,000) | (1,100,000) | (1,100,000) | £ (1,100,000) | ||||||||||||||
Increase (decrease) in post-tax profit due to reasonably possible weakening of GBP against currency | (3,700,000) | 1,700,000 | ||||||||||||||||||||
Increase (decrease) in equity due to reasonably possible weakening of GBP against currency | (3,700,000) | (3,700,000) | (3,700,000) | (3,700,000) | 1,700,000 | 1,700,000 | 1,700,000 | 1,700,000 | ||||||||||||||
US dollar | ||||||||||||||||||||||
Details of currency and interest rate risks | ||||||||||||||||||||||
Revenue from contracts with customers | $ | $ 106.1 | $ 59.6 | $ 147.5 | |||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Contract assets - accrued revenue | 250,000 | 250,000 | 250,000 | 250,000 | 2,499,000 | 2,499,000 | 2,499,000 | 2,499,000 | ||||||||||||||
Trade receivables | 15,575,000 | 15,575,000 | 15,575,000 | 15,575,000 | 10,274,000 | 10,274,000 | 10,274,000 | 10,274,000 | ||||||||||||||
Cash and cash equivalents | 32,460,000 | 32,460,000 | 32,460,000 | 32,460,000 | 17,290,000 | 17,290,000 | 17,290,000 | 17,290,000 | ||||||||||||||
Derivative financial assets | 2,458,000 | 2,458,000 | 2,458,000 | 2,458,000 | ||||||||||||||||||
Trade and other payables | (149,000) | (149,000) | (149,000) | (149,000) | (454,000) | (454,000) | (454,000) | (454,000) | ||||||||||||||
Borrowings | (536,038,000) | (536,038,000) | (536,038,000) | (536,038,000) | (470,068,000) | (470,068,000) | (470,068,000) | (470,068,000) | ||||||||||||||
Derivative financial liabilities | (5,121,000) | (5,121,000) | (5,121,000) | (5,121,000) | ||||||||||||||||||
Exposure to foreign currency, net | (485,444,000) | (485,444,000) | (485,444,000) | £ (485,444,000) | (445,580,000) | (445,580,000) | (445,580,000) | £ (445,580,000) | ||||||||||||||
US dollar | Currency risk | ||||||||||||||||||||||
Foreign currency denominated monetary assets and monetary liabilities | ||||||||||||||||||||||
Percentage of reasonably possible change in risk assumption | 10% | 10% | ||||||||||||||||||||
Increase (decrease) in post-tax profit due to reasonably possible strengthening of GBP against currency | 35,700,000 | 31,900,000 | ||||||||||||||||||||
Increase (decrease) in equity due to reasonably possible strengthening of GBP against currency | 35,700,000 | 35,700,000 | 35,700,000 | £ 35,700,000 | 31,900,000 | 31,900,000 | 31,900,000 | £ 31,900,000 | ||||||||||||||
Increase (decrease) in post-tax profit due to reasonably possible weakening of GBP against currency | (43,700,000) | (39,200,000) | ||||||||||||||||||||
Increase (decrease) in equity due to reasonably possible weakening of GBP against currency | £ (43,700,000) | £ (43,700,000) | £ (43,700,000) | £ (43,700,000) | £ (39,200,000) | £ (39,200,000) | £ (39,200,000) | £ (39,200,000) | ||||||||||||||
Secured term loan facility and senior secured notes | ||||||||||||||||||||||
Forward foreign currency contracts outstanding at the balance sheet date | ||||||||||||||||||||||
Principal amount / Notional amount | $ | $ 650 | $ 650 |
Financial risk management - Cre
Financial risk management - Credit risk (Details) - GBP (£) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Details of credit risk | ||
Number of days for payment that specific agreements may go beyond | 30 days | |
Trade receivables | £ 78,967,000 | £ 70,774,000 |
Transfer fees receivable | £ 50,418,000 | 43,153,000 |
Percentage of provision for trade receivables that are past due and impaired | 100% | |
Minimum | ||
Details of credit risk | ||
Credit term for other sales | 14 days | |
Maximum | ||
Details of credit risk | ||
Credit term for other sales | 30 days | |
Cost / gross value | ||
Details of credit risk | ||
Trade receivables | £ 91,207,000 | 75,745,000 |
Trade receivables | Cost / gross value | ||
Details of credit risk | ||
Financial assets | 91,207,000 | 75,745,000 |
Trade receivables | Cost / gross value | Neither past due nor impaired | ||
Details of credit risk | ||
Financial assets | 64,434,000 | 58,579,000 |
Trade receivables | Cost / gross value | Past due, not impaired | ||
Details of credit risk | ||
Financial assets | 14,533,000 | 12,195,000 |
Trade receivables | Cost / gross value | Not past due, impaired | ||
Details of credit risk | ||
Financial assets | 110,000 | 549,000 |
Trade receivables | Cost / gross value | Past due, impaired | ||
Details of credit risk | ||
Financial assets | £ 12,130,000 | £ 4,422,000 |
Financial risk management - Mov
Financial risk management - Movements on provision for impairment (Details) - Trade receivables - Accumulated impairment - GBP (£) £ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Movements on the provision for impairment of trade receivables | ||
Provision at beginning of year | £ 4,971 | £ 13,150 |
Increase in provision recognized in profit or loss during the year | 2,277 | 1,054 |
Unused amount reversed - cash received | (93) | (188) |
Receivables written off during the year as uncollectible | (764) | (9,003) |
Receivables offset against contract liabilities - deferred revenue | 5,842 | 90 |
Foreign exchange gains/(losses) on retranslation recognized in profit or loss during the year | 7 | (132) |
Provision at end of year | £ 12,240 | £ 4,971 |
Financial risk management - Liq
Financial risk management - Liquidity risk (Details) - GBP (£) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Details of liquidity risk | ||||
Cash and cash equivalents | £ 121,223,000 | £ 110,658,000 | £ 51,539,000 | £ 307,637,000 |
Within 1 year | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 320,457,000 | 239,066,000 | ||
Financial liabilities, undiscounted cash flows | 319,163,000 | 240,851,000 | ||
Within 1 year | Trade and other payables excluding social security and other taxes | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 198,693,000 | 160,375,000 | ||
Within 1 year | Borrowings | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 120,091,000 | 77,203,000 | ||
Within 1 year | Lease liabilities | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 1,673,000 | 1,488,000 | ||
Within 1 year | Cash outflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | 1,793,000 | |||
Within 1 year | Cash inflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | (1,294,000) | (8,000) | ||
Between 1 and 2 years | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 76,592,000 | 58,933,000 | ||
Financial liabilities, undiscounted cash flows | 75,256,000 | 60,640,000 | ||
Between 1 and 2 years | Trade and other payables excluding social security and other taxes | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 56,418,000 | 41,794,000 | ||
Between 1 and 2 years | Borrowings | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 19,660,000 | 16,646,000 | ||
Between 1 and 2 years | Lease liabilities | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 514,000 | 493,000 | ||
Between 1 and 2 years | Cash outflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | 1,707,000 | |||
Between 1 and 2 years | Cash inflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | (1,336,000) | |||
Between 2 and 5 years | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 107,521,000 | 73,537,000 | ||
Financial liabilities, undiscounted cash flows | 107,458,000 | 75,244,000 | ||
Between 2 and 5 years | Trade and other payables excluding social security and other taxes | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 49,294,000 | 27,908,000 | ||
Between 2 and 5 years | Borrowings | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 57,979,000 | 45,142,000 | ||
Between 2 and 5 years | Lease liabilities | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 248,000 | 487,000 | ||
Between 2 and 5 years | Cash outflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | 1,707,000 | |||
Between 2 and 5 years | Cash inflow | ||||
Contractual undiscounted cash flows including interest | ||||
Derivative financial liabilities, undiscounted cash flows | (63,000) | |||
Later than 5 years | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 555,965,000 | 493,625,000 | ||
Financial liabilities, undiscounted cash flows | 555,965,000 | 493,625,000 | ||
Later than 5 years | Borrowings | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | 552,422,000 | 489,983,000 | ||
Later than 5 years | Lease liabilities | ||||
Contractual undiscounted cash flows including interest | ||||
Non-derivative financial liabilities, undiscounted cash flows | £ 3,543,000 | £ 3,642,000 |
Financial risk management - Hed
Financial risk management - Hedging activities (Details) £ in Thousands, $ in Thousands | Jun. 30, 2022 € / £ | Jun. 30, 2022 $ / £ | Jun. 30, 2022 GBP (£) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 € / £ | Jun. 30, 2021 $ / £ | Jun. 30, 2021 GBP (£) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 € / £ | Jun. 30, 2020 $ / £ | Jun. 30, 2020 GBP (£) |
Financial risk management activities | |||||||||||
Net debt | £ | £ 514,899 | £ 419,578 | £ 474,076 | ||||||||
Closing exchange rate | 1.1630 | 1.2151 | 1.1651 | 1.3820 | 1.0998 | 1.2374 | |||||
US dollar | |||||||||||
Financial risk management activities | |||||||||||
Net debt | $ 613,000 | $ 626,300 | |||||||||
Hedged future USD revenues | (22,800) | (61,453) | |||||||||
Unhedged USD borrowings | 590,200 | 564,847 | |||||||||
Borrowings | US dollar | |||||||||||
Financial risk management activities | |||||||||||
Net debt | 650,000 | 650,000 | |||||||||
Cash and cash equivalents | |||||||||||
Financial risk management activities | |||||||||||
Net debt | £ | £ (121,223) | £ (110,658) | £ (51,539) | ||||||||
Cash and cash equivalents | US dollar | |||||||||||
Financial risk management activities | |||||||||||
Net debt | $ (37,000) | $ (23,700) |
Financial risk management - Swa
Financial risk management - Swaps (Details) - Interest rate swap $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 GBP (£) USD ($) | Jun. 30, 2021 GBP (£) USD ($) | |
Financial risk management activities | ||
Fair value of interest rate swaps, asset | £ 2,458,000 | |
Fair value of interest rate swaps, liability | £ 5,121,000 | |
Long position | ||
Financial risk management activities | ||
Principal value of loan outstanding | $ | 150,000 | 150,000 |
Rate received | 1 month $ LIBOR | 1 month $ LIBOR |
Rate paid | 2.032% | 2.032% |
Financial risk management - M_2
Financial risk management - Movements on the hedging reserve (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Movements on the hedging reserve | |||
Reserve of cash flow hedges, beginning balance | £ (10,436,000) | £ (32,565,000) | £ (35,544,000) |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges | |||
Exchange differences on hedged foreign exchange risks | (1,433,000) | 1,835,000 | (2,465,000) |
Reclassified to profit or loss | (998,000) | 16,848,000 | 12,180,000 |
Change in fair value | 7,579,000 | 4,015,000 | (6,838,000) |
Tax relating to above | (1,287,000) | (569,000) | 102,000 |
Movement recognized in other comprehensive income | 3,861,000 | 22,129,000 | 2,979,000 |
Reclassified | 7,525,000 | ||
Reserve of cash flow hedges, ending balance | 950,000 | (10,436,000) | (32,565,000) |
Movements on hedging reserve before tax | |||
Reserve of cash flow hedges, before tax, beginning balance | (3,858,000) | (26,556,000) | (29,433,000) |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, before tax | |||
Exchange differences on hedged foreign exchange risks | (1,433,000) | 1,835,000 | (2,465,000) |
Reclassified to profit or loss | (998,000) | 16,848,000 | 12,180,000 |
Change in fair value | 7,579,000 | 4,015,000 | (6,838,000) |
Movement recognized in other comprehensive income (loss) | 5,148,000 | 22,698,000 | 2,877,000 |
Reclassified | 7,525,000 | ||
Reserve of cash flow hedges, before tax, ending balance | 8,815,000 | (3,858,000) | (26,556,000) |
Movements on hedging reserve tax | |||
Reserve of cash flow hedges, tax, beginning balance | (6,578,000) | (6,009,000) | (6,111,000) |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, tax | |||
Tax credit/(expense) relating to movements on hedges | (1,287,000) | (569,000) | 102,000 |
Reserve of cash flow hedges, tax, ending balance | (7,865,000) | (6,578,000) | (6,009,000) |
Currency risk | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges | |||
Exchange differences on hedged foreign exchange risks | (1,733,000) | 4,325,000 | (2,818,000) |
Reclassified to profit or loss | (770,000) | 14,956,000 | 12,214,000 |
Movements on hedging reserve before tax | |||
Reserve of cash flow hedges, before tax, beginning balance | 1,340,000 | (17,941,000) | (27,337,000) |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, before tax | |||
Exchange differences on hedged foreign exchange risks | (1,733,000) | 4,325,000 | (2,818,000) |
Reclassified to profit or loss | (770,000) | 14,956,000 | 12,214,000 |
Movement recognized in other comprehensive income (loss) | (2,503,000) | 19,281,000 | 9,396,000 |
Reserve of cash flow hedges, before tax, ending balance | £ (1,163,000) | £ 1,340,000 | (17,941,000) |
Currency risk | US dollar | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, tax | |||
Percentage of reasonably possible change in risk assumption | 10% | 10% | |
Increase (decrease) in reserve of cash flow hedges before tax due to reasonably possible strengthening of GBP against currency | £ 1,706,000 | £ 4,042,000 | |
Increase (decrease) in reserve of cash flow hedges before tax due to reasonably possible weakening of GBP against currency | (2,085,000) | (4,941,000) | |
Interest rate risk | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges | |||
Change in fair value | 7,579,000 | 4,015,000 | (6,838,000) |
Movements on hedging reserve before tax | |||
Reserve of cash flow hedges, before tax, beginning balance | (5,121,000) | (9,136,000) | (2,298,000) |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, before tax | |||
Change in fair value | 7,579,000 | 4,015,000 | (6,838,000) |
Movement recognized in other comprehensive income (loss) | 7,579,000 | 4,015,000 | (6,838,000) |
Reserve of cash flow hedges, before tax, ending balance | £ 2,458,000 | £ (5,121,000) | (9,136,000) |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, tax | |||
Percentage of reasonably possible change in risk assumption | 1% | 1% | |
Other price risk | |||
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges | |||
Exchange differences on hedged foreign exchange risks | £ 300,000 | £ (2,490,000) | 353,000 |
Reclassified to profit or loss | (228,000) | 1,892,000 | (34,000) |
Reclassified | 7,525,000 | ||
Movements on hedging reserve before tax | |||
Reserve of cash flow hedges, before tax, beginning balance | (77,000) | 521,000 | 202,000 |
Movement recognized in other comprehensive income (loss), reserve of cash flow hedges, before tax | |||
Exchange differences on hedged foreign exchange risks | 300,000 | (2,490,000) | 353,000 |
Reclassified to profit or loss | (228,000) | 1,892,000 | (34,000) |
Movement recognized in other comprehensive income (loss) | 72,000 | (598,000) | 319,000 |
Reclassified | 7,525,000 | ||
Reserve of cash flow hedges, before tax, ending balance | £ 7,520,000 | £ (77,000) | £ 521,000 |
Financial risk management - Cap
Financial risk management - Capital risk management (Details) - GBP (£) £ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Financial risk management | ||
Borrowings | £ 636,122 | £ 530,236 |
Contingent liabilities and co_3
Contingent liabilities and contingent assets (Details) - GBP (£) | Jun. 30, 2022 | Jun. 30, 2021 |
Transfer fees | ||
Additional fees payable, first team squad | £ 100,607,000 | £ 82,663,000 |
Additional fees payable, other | 11,765,000 | 9,330,000 |
Additional fees payable | 112,372,000 | 91,993,000 |
Probable effect of contingent assets | 0 | 75,000 |
MUFC appearances/team success/new contract | ||
Transfer fees | ||
Additional fees payable, first team squad | 58,462,000 | 39,792,000 |
Additional fees payable, other | 10,609,000 | 9,285,000 |
Additional fees payable | 69,071,000 | 49,077,000 |
International appearances | ||
Transfer fees | ||
Additional fees payable, first team squad | 10,158,000 | 11,182,000 |
Additional fees payable, other | 1,156,000 | 45,000 |
Additional fees payable | 11,314,000 | 11,227,000 |
Awards | ||
Transfer fees | ||
Additional fees payable, first team squad | 31,987,000 | 31,689,000 |
Additional fees payable | £ 31,987,000 | £ 31,689,000 |
Commitments - Capital commitmen
Commitments - Capital commitments (Details) - GBP (£) | Jun. 30, 2022 | Jun. 30, 2021 |
Property, plant and equipment | ||
Capital commitments | ||
Capital commitments | £ 1,185,000 | £ 1,240,000 |
Other intangible assets | ||
Capital commitments | ||
Capital commitments | £ 1,476,000 | £ 479,000 |
Commitments - Aggregate minimum
Commitments - Aggregate minimum rentals receivable (Details) - GBP (£) £ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Operating lease arrangements by lessor | ||
Future minimum lease rentals receivable under non-cancellable operating lease | £ 15,822 | £ 17,534 |
Within 1 year | ||
Operating lease arrangements by lessor | ||
Future minimum lease rentals receivable under non-cancellable operating lease | 1,734 | 1,888 |
Later than 1 year but not later than 5 years | ||
Operating lease arrangements by lessor | ||
Future minimum lease rentals receivable under non-cancellable operating lease | 3,423 | 4,256 |
Later than 5 years | ||
Operating lease arrangements by lessor | ||
Future minimum lease rentals receivable under non-cancellable operating lease | £ 10,665 | £ 11,390 |
Events occurring after the re_2
Events occurring after the reporting period (Details) - GBP (£) | 2 Months Ended | 12 Months Ended | |
Sep. 07, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Events occurring after the reporting date | |||
Net book value of disposals of intangible assets | £ 14,391,000 | £ 14,330,000 | |
Additions or extensions of intangible assets | 154,664,000 | 118,025,000 | |
Registrations | |||
Events occurring after the reporting date | |||
Net book value of disposals of intangible assets | 14,391,000 | 14,330,000 | |
Additions or extensions of intangible assets | £ 151,564,000 | £ 115,725,000 | |
Disposal of playing registrations | Registrations | |||
Events occurring after the reporting date | |||
Proceeds from disposal of registrations, net of associated costs | £ 16,590,000 | ||
Net book value of disposals of intangible assets | 1,075,000 | ||
Solidarity contributions, training compensation, sell-on fees and contingent consideration receivable | 192,000 | ||
Acquisition or extension of playing registrations | Registrations | |||
Events occurring after the reporting date | |||
Additions or extensions of intangible assets | £ 218,146,000 | ||
Due term of payments | 5 years |
Related party transactions (Det
Related party transactions (Details) - Trusts and other entities controlled by descendants of Malcolm Glazer - item | Jun. 30, 2022 | Jun. 30, 2021 |
Related party transactions | ||
Number of lineal descendants of Mr. Malcolm Glazer | 6 | |
Voting power on outstanding capital stock (as a percent) | 95.62% | 96.70% |
Class A ordinary shares | ||
Related party transactions | ||
Ownership interest on issued and outstanding ordinary shares (as a percent) | 4.37% | 5.34% |
Class B ordinary shares | ||
Related party transactions | ||
Ownership interest on issued and outstanding ordinary shares (as a percent) | 100% | 100% |
Subsidiaries (Details)
Subsidiaries (Details) | Jun. 30, 2021 |
Red Football Finance Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Red Football Holdings Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Red Football Shareholder Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Red Football Joint Venture Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Red Football Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Red Football Junior Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Manchester United Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Alderley Urban Investments Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Manchester United Football Club Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Manchester United Women's Football Club Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Manchester United Interactive Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
MU 099 Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
MU Commercial Holdings Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
MU Commercial Holdings Junior Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
MU Finance Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
MU RAML Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
MUTV Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
RAML USA LLC | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Additional information - Fina_3
Additional information - Financial Statement Schedule I (Details) £ / shares in Units, £ in Thousands | 12 Months Ended | |||||
Jun. 30, 2022 GBP (£) $ / shares | Jun. 30, 2022 GBP (£) £ / shares | Jun. 30, 2021 GBP (£) $ / shares | Jun. 30, 2021 GBP (£) £ / shares | Jun. 30, 2020 $ / shares | Jun. 30, 2020 £ / shares | |
Condensed financial information | ||||||
Borrowings | £ 636,122 | £ 636,122 | £ 530,236 | £ 530,236 | ||
Dividends recognised as distributions to owners per share | (per share) | £ 0.27 | £ 0.21 | £ 0.09 | £ 0.07 | $ 0.18 | £ 0.14 |
Red Football Limited | ||||||
Condensed financial information | ||||||
Dividend limit in relation to consolidated net income under restricted payment covenants | 50% | 50% | ||||
Parent | ||||||
Condensed financial information | ||||||
Dividends recognised as distributions to owners per share | (per share) | £ 0.27 | £ 0.21 | £ 0.09 | £ 0.07 | $ 0.18 | £ 0.14 |
Additional information - Fina_4
Additional information - Financial Statement Schedule I - Condensed statement of profit or loss (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Condensed statement of profit or loss | |||
Finance income | £ 23,676 | £ 49,310 | £ 1,352 |
(Loss)/profit before income tax | (149,623) | (24,027) | (20,818) |
Income tax expense | 34,113 | (68,189) | (2,415) |
(Loss)/profit for the year | (115,510) | (92,216) | (23,233) |
Parent | |||
Condensed statement of profit or loss | |||
Operating expenses | (4,325) | (4,253) | (2,964) |
Income from shares in group undertakings | 33,553 | 10,718 | 44,534 |
Finance income | 124 | 82 | |
(Loss)/profit before income tax | 29,352 | 6,465 | 41,652 |
Income tax expense | (1) | (1) | (9) |
(Loss)/profit for the year | £ 29,351 | £ 6,464 | £ 41,643 |
Additional information - Fina_5
Additional information - Financial Statement Schedule I - Condensed balance sheet (Details) - GBP (£) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Non-current assets | ||||
Total non-current assets | £ 1,056,503,000 | £ 1,047,365,000 | ||
Current assets | ||||
Other receivables | 1,569,000 | 460,000 | ||
Cash and cash equivalents | 121,223,000 | 110,658,000 | £ 51,539,000 | £ 307,637,000 |
Total current assets | 237,162,000 | 212,945,000 | ||
Total assets | 1,293,665,000 | 1,260,310,000 | ||
Equity | ||||
Share capital | 53,000 | 53,000 | ||
Share premium | 68,822,000 | 68,822,000 | ||
Treasury shares | (21,305,000) | (21,305,000) | ||
Retained earnings | (170,042,000) | (13,652,000) | ||
Total equity | 127,508,000 | 272,512,000 | 351,232,000 | 415,202,000 |
Current liabilities | ||||
Total current liabilities | 494,842,000 | 384,032,000 | ||
Total equity and liabilities | 1,293,665,000 | 1,260,310,000 | ||
Parent | ||||
Non-current assets | ||||
Investment in subsidiaries | 319,265,000 | 319,265,000 | ||
Total non-current assets | 319,265,000 | 319,265,000 | ||
Current assets | ||||
Other receivables | 1,047,000 | 1,197,000 | ||
Cash and cash equivalents | 131,000 | 148,000 | 197,000 | 116,000 |
Total current assets | 1,178,000 | 1,345,000 | ||
Total assets | 320,443,000 | 320,610,000 | ||
Equity | ||||
Share capital | 53,000 | 53,000 | ||
Share premium | 68,822,000 | 68,822,000 | ||
Treasury shares | (21,305,000) | (21,305,000) | ||
Retained earnings | 258,109,000 | 262,113,000 | ||
Total equity | 305,679,000 | 309,683,000 | £ 311,852,000 | £ 313,925,000 |
Current liabilities | ||||
Other payables | 14,764,000 | 10,927,000 | ||
Total current liabilities | 14,764,000 | 10,927,000 | ||
Total equity and liabilities | £ 320,443,000 | £ 320,610,000 |
Additional information - Fina_6
Additional information - Financial Statement Schedule I - Condensed statement of changes in equity (Details) | 12 Months Ended | |||||
Jun. 30, 2022 GBP (£) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 GBP (£) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 GBP (£) | Jun. 30, 2020 USD ($) | |
Balance at beginning of the year | £ 272,512,000 | £ 351,232,000 | £ 415,202,000 | |||
(Loss)/profit for the year | (115,510,000) | (92,216,000) | (23,233,000) | |||
Total comprehensive (loss)/income for the year | (111,649,000) | (70,087,000) | (20,254,000) | |||
Acquisition of treasury shares | (21,305,000) | |||||
Equity-settled share based payments | 198,000 | 2,085,000 | 818,000 | |||
Dividends paid | (33,553,000) | $ (44,010,000) | (10,718,000) | $ (14,665,000) | (23,229,000) | $ (29,554,000) |
Balance at end of the year | 127,508,000 | 272,512,000 | 351,232,000 | |||
Share capital | ||||||
Balance at beginning of the year | 53,000 | 53,000 | 53,000 | |||
Balance at end of the year | 53,000 | 53,000 | 53,000 | |||
Share premium | ||||||
Balance at beginning of the year | 68,822,000 | 68,822,000 | 68,822,000 | |||
Balance at end of the year | 68,822,000 | 68,822,000 | 68,822,000 | |||
Treasury shares | ||||||
Balance at beginning of the year | (21,305,000) | (21,305,000) | ||||
Acquisition of treasury shares | (21,305,000) | |||||
Balance at end of the year | (21,305,000) | (21,305,000) | (21,305,000) | |||
Retained (deficit)/earnings | ||||||
Balance at beginning of the year | (13,652,000) | 87,197,000 | 132,841,000 | |||
(Loss)/profit for the year | (115,510,000) | (92,216,000) | (23,233,000) | |||
Total comprehensive (loss)/income for the year | (115,510,000) | (92,216,000) | (23,233,000) | |||
Equity-settled share based payments | 198,000 | 2,085,000 | 818,000 | |||
Dividends paid | (33,553,000) | (10,718,000) | (23,229,000) | |||
Balance at end of the year | (170,042,000) | (13,652,000) | 87,197,000 | |||
Parent | ||||||
Balance at beginning of the year | 309,683,000 | 311,852,000 | 313,925,000 | |||
(Loss)/profit for the year | 29,351,000 | 6,464,000 | 41,643,000 | |||
Total comprehensive (loss)/income for the year | 29,351,000 | 6,464,000 | 41,643,000 | |||
Acquisition of treasury shares | (21,305,000) | |||||
Equity-settled share based payments | 198,000 | 2,085,000 | 818,000 | |||
Dividends paid | (33,553,000) | (10,718,000) | (23,229,000) | |||
Balance at end of the year | 305,679,000 | 309,683,000 | 311,852,000 | |||
Parent | Share capital | ||||||
Balance at beginning of the year | 53,000 | 53,000 | 53,000 | |||
Balance at end of the year | 53,000 | 53,000 | 53,000 | |||
Parent | Share premium | ||||||
Balance at beginning of the year | 68,822,000 | 68,822,000 | 68,822,000 | |||
Balance at end of the year | 68,822,000 | 68,822,000 | 68,822,000 | |||
Parent | Treasury shares | ||||||
Balance at beginning of the year | (21,305,000) | (21,305,000) | ||||
Acquisition of treasury shares | (21,305,000) | |||||
Balance at end of the year | (21,305,000) | (21,305,000) | (21,305,000) | |||
Parent | Retained (deficit)/earnings | ||||||
Balance at beginning of the year | 262,113,000 | 264,282,000 | 245,050,000 | |||
(Loss)/profit for the year | 29,351,000 | 6,464,000 | 41,643,000 | |||
Total comprehensive (loss)/income for the year | 29,351,000 | 6,464,000 | 41,643,000 | |||
Equity-settled share based payments | 198,000 | 2,085,000 | 818,000 | |||
Dividends paid | (33,553,000) | (10,718,000) | (23,229,000) | |||
Balance at end of the year | £ 258,109,000 | £ 262,113,000 | £ 264,282,000 |
Additional information - Fina_7
Additional information - Financial Statement Schedule I - Condensed statement of cash flows (Details) - GBP (£) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | |||
(Loss)/profit before income tax | £ (149,623,000) | £ (24,027,000) | £ (20,818,000) |
Adjustments for: | |||
Non-cash employee benefit expense - equity-settled share-based payments | 198,000 | 2,085,000 | 818,000 |
Foreign exchange (gains)/losses on operating activities | 50,000 | 874,000 | (816,000) |
Changes in working capital: | |||
Other receivables | (1,109,000) | (221,000) | 949,000 |
Net cash inflow/(outflow) from operating activities | 96,371,000 | 113,083,000 | (3,820,000) |
Cash flows from financing activities | |||
Acquisition of treasury shares | (21,305,000) | ||
Dividends paid | (33,553,000) | (10,718,000) | (23,229,000) |
Net cash outflow from financing activities | 5,040,000 | 47,641,000 | (46,399,000) |
Net increase/(decrease) in cash and cash equivalents | 7,980,000 | 61,351,000 | (263,065,000) |
Cash and cash equivalents at beginning of year | 110,658,000 | 51,539,000 | 307,637,000 |
Effect of exchange rate changes on cash and cash equivalents | 2,585,000 | (2,232,000) | 6,967,000 |
Cash and cash equivalents at end of year | 121,223,000 | 110,658,000 | 51,539,000 |
Parent | |||
Cash flows from operating activities | |||
(Loss)/profit before income tax | 29,352,000 | 6,465,000 | 41,652,000 |
Adjustments for: | |||
Non-cash employee benefit expense - equity-settled share-based payments | 198,000 | 2,085,000 | 818,000 |
Foreign exchange (gains)/losses on operating activities | (35,000) | 263,000 | (102,000) |
Changes in working capital: | |||
Other receivables | 150,000 | (89,000) | |
Other payables | 3,837,000 | 2,120,000 | 2,243,000 |
Tax paid | (1,000) | (1,000) | (9,000) |
Net cash inflow/(outflow) from operating activities | 33,501,000 | 10,932,000 | 44,513,000 |
Cash flows from financing activities | |||
Acquisition of treasury shares | (21,305,000) | ||
Dividends paid | (33,553,000) | (10,718,000) | (23,229,000) |
Net cash outflow from financing activities | (33,553,000) | (10,718,000) | (44,534,000) |
Net increase/(decrease) in cash and cash equivalents | (52,000) | 214,000 | (21,000) |
Cash and cash equivalents at beginning of year | 148,000 | 197,000 | 116,000 |
Effect of exchange rate changes on cash and cash equivalents | 35,000 | (263,000) | 102,000 |
Cash and cash equivalents at end of year | £ 131,000 | £ 148,000 | £ 197,000 |
Additional information - Fina_8
Additional information - Financial Statement Schedule I - Reconciliations (Details) - GBP (£) £ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
IFRS (loss)/profit reconciliation: | ||||
Additional loss if subsidiaries had been accounted for on the equity method of accounting as opposed to cost | £ (144,861) | £ (98,680) | £ (64,876) | |
(Loss)/profit for the year | (115,510) | (92,216) | (23,233) | |
IFRS equity reconciliation: | ||||
Additional (loss)/profit if subsidiaries had been accounted for on the equity method of accounting as opposed to cost | (178,171) | (37,171) | 39,380 | |
IFRS equity | 127,508 | 272,512 | 351,232 | £ 415,202 |
Parent | ||||
IFRS (loss)/profit reconciliation: | ||||
(Loss)/profit for the year | 29,351 | 6,464 | 41,643 | |
IFRS equity reconciliation: | ||||
IFRS equity | £ 305,679 | £ 309,683 | £ 311,852 | £ 313,925 |