efc 1991 1992 accounts

8/7/2019 EFC 1991 1992 Accounts

http://slidepdf.com/reader/full/efc-1991-1992-accounts 1/15

THE EVERTON FOOTBAll CLUB COMPANY LIMITED

~ ~ ~ ~ . l A A \ ~ , E SHOLtS!

o 5 oct 1992

" 1

ANNUAL REPORT

AND

STATEMENT O f ACCOUNTS

AT sts: M A } ~1992_=- ~ ~ . : t : < - ~........ " " " , , ~ . ~

0' .i- " • ,.. ~ ~ ~ rJ . ~ , J S E

f < ~ I, , \ ~ 44-. __ ~ - : ~ J I ! ' _ '- " - ' ~ ', _ _ : : = = , ; ~ _ -=;;;.J

8/7/2019 EFC 1991 1992 Accounts


.. -.-._ _ ...:....-.L. •. _

,THE EVERTON FOOTBALLCLUBCOMPANY LIMITED

NOTICE OF MEET1NG

NOTICEIS HEREBYGIVEN that theone hundred & thirteenthAnnual General Meeting of theCompanywillbe held at theoffices of The Everton Football Club Company Limited,Goodlson Park, Liverpool L4 4EL, on Thursday the 13th Dayof

August, 1992, at 6.00 p.rn. to receive and consider theReportof the Directors, and the Accounts for the Year ended31 st May,1992, toelect Directors, to appoint Auditorsfor theensuing year, and to fixtheir remuneration, andto transactanyother business which maybe transacted atthe Annua IGeneralMeeting of the Company.

The Transfer Books of theCompanywiU becloseduntil 14thAugust, 1992.

ByOrder of the Board.

J. GREEN'vVOOD,Secretary,Goodison Park, liverpool L4 4EL,

14thJuly,1992

Admission on PresentationofAnnual Report

Noticeisalsogiven that aMemberof the Company entitled toattend and vote at the above Annual General Meeting isentitled to appoint a proxy toattend and vote Instead of him,and thatthe proxy neednot bea memberof the Company.

Proxies must be fodged il t the Regi!ltcred Office of theCompany, not Jess than 48 hours before the time of theMeeting.

3

DirectorsDr.D. M. Marsh, C.halrmanSir Desmond H. Pitcher, Deputy ChairmanA. W. Waterworth D.L.K. M. TamlinSir Philip D. Carter C.B.E.D.A.B. Newtonw. Kenwright

Secretary and Registered OfficeJ. Greenwood,Goodison Park, Liverpool L44EL

ManagerH. Kendall

BankersTSB Bank pte

AuditorsRogers, Bowler & Co.

8/7/2019 EFC 1991 1992 Accounts


THE EVERTON FOOTBALL CLUB COMPANY LIMITED

CHAIRMAN'S REPORT

In presenting my initial Report 1haveto advisethattheLeague performances during 1991/92 were the poorestsince 1980/81, and the team finished in 12th position.

OurCu p performanceswere equallyd isappoi n ting for

we lostto Leeds United atGoodison Parkinthe 4thRoundof the Rumbelows Cup, and shortly afterwards wereel imi nated from theF.A.Cupat Chelsea in the4 th Roundof thatCompetition.

Thedisappointing results on the field inevitably led toa reduction in crowds, and the average League attendancewas 23,14B, which was a reduction of 7.5% on theprevious season.

The results in the Pontln's League were alsounacceptable with the Reserve Team finishing in 16thposition, andbeing relegated to the 2nd Division.

Therewas brighter newsfrom the Youth Departmentwith our 'A' Team reaching the final of the LancashireLeague Knock Out Cup, and alsothe last 8 of the F.A.Youth Cup. We lost to Spur4i atWhite Hart Lane havingdisposed of Arsenal Youth Team in theprevious round elfHighbury. This i ~ obviously encouraging news for thefuture} and we look forward to ( l number of thp.;pyoungsters progressl ngthroughto f rst team levelover lht"'next few years.

Since the last Report, thefollowing pli\ypr("have[olnedthe C l u b ~Mark Ward, Alan Harper, Peter B P M c i ~ I l ) ~ ' A

Matthew Jackson,G . l r ~ '

Ablett, Maurkt John"ton andBarry Horne. Outgoing transfers havo lxx-n ~ . GraomoSharp, Neil McDonl\ld, Stuart j\lkCdll. /\1ik(\ N l ' \ \ ~ I I ,

Raymond Atteveld, Eddlo Youd- and Kovm Sh(lPciy. Inaddition,Kevin Rlltdiffe WllS grillll<'d ()1'((\(1 transfer ontheexpiry of his contract in appr(ldation of his <ervlrc overthe previous 14 vears. He has made an outstandlng

4

contribution as Capta in of the team d uringone of themostsuccessful periodsin the Club's history.

Iam pleased to report thata ofourYouth Trainees havebeen engaged as professionals on completion of their

trainee programmes.The fei! owlng players gained International honours

during the past season:England: Martin KeownWales: Neville Southall, Kevin RatcliffeScotland: PatNevin, Stuart McCallEire: Kevin Sheedy,Gerry PeytonPoland: Robert WarzvchaEngland U2 7: John Ebbrell, Matthew JacksonEngland U 18: David Unsworth

Dueto thefall in League attendances, our income(rom

gate receipts, and football related activities declined by£137,660 from the previous season, and receipts fromtrading and other income showed a reduction of£106,267.

Expenditure rose by £1.2M, due almostentirely to anincrease of £11\1 in staff costs. This figure includes sub-stantial costs incurred in the termination payments toplayers transferred out but there has been a consistentescalation in plavers' salaries over recent years, whil'h isamatterof concern for all Clubs.

Wlth total losses over the past 2 seasons of £3.2M our

bank borrow ing" areata record high levelof £3.6M. Newrevenues, which will be generated nextyearasaresultoftho formation of the F.t\. Premier league, coupled withlru.roased admission prices fornext season, should ensurethat borrowings arecontained, recognislngthe fact thatfurtheroxpendlturewill be re-quired in thetransfer marketin order to strengthen the present pluying squad.

8/7/2019 EFC 1991 1992 Accounts


8/7/2019 EFC 1991 1992 Accounts



REPORT OF THE DIRECTORS

Principal activityTheprl ncipal activityof the Companycontinues tobe thatofa Professional Football Club.

DirectorsThedirectors in office in the yearandtheirbeneficia rinterestsin the issued ordinary share capital were as follows:

Fixed assets

Fu11detalIs of thecha nges tothe Fixed Assets are shownin theNotesto theAccounts.

AuditorsThe auditors, Messrs. Rogers, Bowler & Co., will beproposedfor re-appointment in accordance with Section384 of theCompanies Act 1985.

1n accordance with the Articles of Association Mr. K. M.Tarnlin, SirPhilip D. Carter and Mr.W. Kcnwright retire byrotationand,being eligibJe, offer themselves for re-election.Nominationshave been received on behalfof Messrs. G. H.E. Birch, and P. L.Parry.

Review of businessThe results of theperiod'stradingare given on Page 7 of theAccounts.

Thenetlossfor the year is £2,081,720.

Since the endof thefinancialyearthe CIub has signed BarryHorne, thecurrent Captain of Waleswho Isout of contractat Southampton. The level of compensation hasnot beenagreed and may have to be referred to the Football LeagueAppealsCommittee for determination.

On-goingexpenditure. _ 1any years on improvements tothe Stadium mean that Ne do not {ace the massiveexpenditure of other Clubs in meeting thestandards requiredfollowing the'Taylor Report'. With theexception ofthe smallarea of terracing at the Park End, Goodison Park now meetsall the requirements set clown.

DividendThe Directors do not recommend the paymentof a dividend.

Dr. D. M. MarshSir Desmond H. PitcherMr. A. W. Waterworth D.L.Mr. K. M. TamlinSirPhilip D.Carter C.B.E.Mr.D.A.B.NewtonMr.W. Kenwright

31stMay1991

£1013

71699

57

31st May1992

£1113

716

1025

22

6

By order of the Board

Dr. D. M. MARSHChairman

8/7/2019 EFC 1991 1992 Accounts


8/7/2019 EFC 1991 1992 Accounts



BALANCE SHEETASAT 31st MAY1992

Notes 1992 1991

£ s. £ £Fixed AssetsTangible assets 2 7,535,174 7,024,073

, ',-Current Assets

' I)

Stocks 3 96,538 84,733Debtors 4 1,320,237 865,071Cash at bankand in hand 11,005 11,,568

1,427,780 961,372

Creditors:amounts falling due withinone year 5 6,252,289 3,178,716

Net Current Liabilities (4,824,509) (2,217,344.)

Total Assets lessCurrent liabilities 2,710,665 4,806,729

Creditors:amounts falling due after morethan one year

Net Assets 2,710,665 4,806,729

Representing

Capitaland ReservesCalledup share capital 6 2,500 2,500Revaluation reserve 7 4,527,325 4,541,669

Other reserves 7Profitand 1055 account 7 (1,819,160) 262,560----

2,710,665 4,805,729

Signed on be-halfof the Board,who approvedthe ac.count., on 1401 July, 1992

Dr. D.M. MARSH ] D' t

SIR DESMOND H. PITCHER ttec ors

-, ,

8

8/7/2019 EFC 1991 1992 Accounts


. ---- :--------------------------------------•THE EVERTON FOOTBALLCLUB COMPANYLIMITED

CASHFLOW STATEMENT FOR THE YEAR ENDED 31st MAY 1992

1992 "/991Notes £ £ £ £

Net Cash Outflow from Operating Activities 14(i) (1,435,072) (739,923)Returns on investments and servicing of (indnceInterest received 14/646 27,441Interest pald (274,006) (76/586)

Net cash outflow from returns on investmentsand servicingof finance (259,360) (49/145)

laxationTax refund 11,993 57/208

Investing ActivitiesPayments to acquire tangible fixed assets (1,090,658) (1/ 100,063)Receipts from sales of tangible fixed assets 92,463 51,840

Net cash flow from investing activities (998,195) (7/048,223)

Net Cash Flow Before Financing (2,680/634) (T,780,0831

FinancingDonations receivable 42,089 58,938Grants fromThe Football Trust 325,199 295,860

Loan frombrewery 68,000Loans repaid (5,348) (77,329)

Nel cash flow from financing 361,940 345,469

Decrease in Cashand Cash Equivalents 14(Hi) (2/318,694) (1 ,434,h 14)

9

8/7/2019 EFC 1991 1992 Accounts


10

(iii) Stocks

Stocks are valued at the lower of costand net realisable value.

El l ' W- W

=

(i) IncomeIncome is stated exclusive ofvalueadded tax and gatereceipts are included netof percentagepayments tovisitingclubs,the Football Leagueand the Football Association.

(v) Signing·on Fees and Loyalty Bonuses

Signing-on fees and loyalty bonusesare charged on an accruals basisand those instalments due in the future oncontinuedservice are notprovided (orbutare noted as contingent liabilities at Note 13_

OJ) Fixed Assets and DepreciationIt is theClub's policyto maintain thevalueand extendthe life of its properties by regularexpenditure chargedtorevenue, andto revalue the properties every fouryears and adjust thebook values accordingly. Having regard to this,depredation is not provided on freehold properties as thedirectors areoftheopinion, in thecaseofsomeproperties,thattheirestimated residual valueexceeds thelrbook value, andinthecaseofotherproper lies, thatthesum involvedwouldbe immaterial. Depreciation on other fixed assetshasbeen calculatedat 25% on the bookvalue.

(i\') Transfer Fees

Transfer fees payableand receivable aredealt with in the profitand loss account in theyearin which thelransfercontraetIS signed.

(vi) G r a n t ~

Grants receivable from the Football Trustarededucted (rom the expenditure towhich theyrelate.

1. Accounting Basis and PoliciesTheseaccounts havebeen prepared onthe historicalcost basisofaccounting as modified toincludevaluations ofthe CI ub'sproperties, and in accordancewith applicable UK accountingstandards, and accounting policiesconsistentwith thoseadoptedpreviously. Themainaccounting policies are LiS follows:

THE EVERTON FOOTBALLCLUB COMPANY LIMITED

NOTES TO THE ACCOUNTS fO R THE YEAR ENDED 31st MAY 1992

. ~ r

8/7/2019 EFC 1991 1992 Accounts


~.

JHE EVERTON FOOTBALL CLUB COMPANY LIMITED

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31stMAY 1992

11

8/7/2019 EFC 1991 1992 Accounts


Cost

Aggregate depredation

If the freehold properties had not been revalued regularly slnce 1983 theywould have been included at the(ohowingamounts on the basis previously apperta ining:- 1992 199(

£ ..£2,777,873 2,216,384

144,321 137,851

Net book value 2,633,552 2,078,533- - -3. Stocks

1992 7991£ £

Refreshments, souvenirsand goods forresale 94,622 82,816Maintenancestocks 1,916 1,917

96,538 84,733

4. DebtorsTradedebtors 983,268 375,836Other debtors 169,180 296,720Prepayments and accrued income 167,789 192,515

1,320,237 865,071

5. Creditors:amounts falling due withinone yearTradecreditors 1,040,477 798,235Social securityand other taxes 260,408 759,270Pensionscheme premiums 950 536Othercreditors 23,600 13,980Accruals and deferredincome 1 0 2 0 4 , 0 2 4 796,648

- - -2,529,459 1.768,669

Bank overdraft 3,659,999 7,341,868Loan (rom brewery 62,(111 68,779

6,252,289 3,178,716

The bank overdraft issecured on the Club's premisesat Goodison Park and Bellefleld.

There is no fixed repayment date (or the brewery loan and interestis not charged during the continuance 0,0 specifiedtrading arrangements.

6. Called UpShare CapitalAuthorised: 2,500 £1 stock units

Allotted, issuedand fully paid: 2,500.£1stock units

12

1992£

2,500

2,500

8/7/2019 EFC 1991 1992 Accounts


I

.7 . Rcs,etvesRevaluation reserveBalanceat 1st June 1991

• Surplus on revaluation of properties on 30 April 1991Adjustment to abovesurplus as aresultof payments arisingin currentyear(Note 2)Transfer to profit and loss account on disposal of fixed asset

Balance at 31st May 1992

Transfer fees reserveBalance at 1st June 1991Transferred to profit and loss accountTransferred from profit and loss accountin respect of future

expenditure authorised by thedirectors

Balance at 31 st May 1992

Profitand Loss AccountBalance ~ t 1st June 1991Loss forthe year

Balance at 31 st May 1992

1992£

4,541,669

(17,125)2,781

4,527.325

262,560(2,081,720)

(1,819,160)

1991£

2,916,3411,62.5,328

500,000(SOO,OOO)

882,773(620,213)

262,560

a. Particulars of EmpluyeesThe average weeklv numberof employees during the year was as (ollowsr-«Playing, training and managementMaintenance and administrationCatering andsales

The aggregate payroll costs ofthe above personswereas follows:

Wages and salarlesSocIal security costsOther pension costs

47 4730 2934 33

- - - - , -111 J09

4,353,9.22 3,455,256417,433 298,313199,015 219,769

4/970,370 3 ~ 9 7 3.. 338

Other pension costs comprise contributions mode by the Company)n rcsJ}Pct of themajorityof itspermanentemployeesto pension schemeswhich arc independently administeredby the Pootball teague limited, together \\ lth contributionsmade to individual pension contracts with insurancerompanles under agreements with certainemployees. Allpensionarrangements arcdefinedcontribution schemes.

Thedirectors received no emolurnonts from t h ~company durins theyear

9. Interest PayableOn bank loans and overdraftsOnother loans

1992£

273,467339

1991£

76 .. ,;86

13

274,OOb 7tt,.586

8/7/2019 EFC 1991 1992 Accounts


10. TaxationNo taxation arises on the results ofthe yearand losses for taxation purposes areavailable for relief against future •profits.In view of thecontinuing use of thefreeholdproperties noprovision is considered necessary in respect of the potentialtax liability which might arise in the eventof the disposal of theproperties at the amounts atwhich they areincluded inthese accounts, andin the opinion of thedirectors it is impracticableandof no useful purpose to attempt ~ oquantify it.

11. Donations ReceivableDonations receivable comprise amounts receivable from the various Everton development associations, reduced by

ex.-enses relating thereto.

12. FutureCapital E X ~ ' l ! n d i t u r e

Capital expenditurecontracted for but not provided for in these accounts amounted to

Further capital expenditureauthorised by thedirectorson which orders hadnot been placedprior to the Balance Sheet date amounted to

1992£110,000

Nil

1991£610,375

£39,510

13. Contingent liabilit iesNo provisionis i neluded in the accounts for transfer fees of £ 125,000 which arecontlngentupon future appearances ofcertain players, andsigning-on fees and loyall)! bonuses of 1.1,496,655 which will become due to certainplayersif theyarestill in the service of the Club on specificfuture dates.

14. Cash Flow Statement(i) Reconciliation of operating loss to net cash outflow fromoperating activities:

Operating lossDepi eclation chargesLoss on disposal of tangiblefixed assetsIncrease in stocksIncrease in debtorsIncrease in creditors

Ne t cash outflow from operating activities

(ij) Analvsl« of changes in cash and cash equivalents Juring the year:Balance at 1st June 1991Net cash outflow

Balance at 31 May 1992

(iii) Analysis of the balances of cash and cash equivalents ali shownin the balance sh.-et;

1992£

(1,864,449)144,770

2,781(11,805)

(467,159)760,790

(1,435,072)

(1,330,300)(2,318,694)

(3,648,994)

1991£

(1,130;006)154;490

(28,543)(56,916)

321,052

'739,923)

1992 1991 Change inYear

£ £ £Cash atbankandin hand 11,005 11,568 (563)Bank overdrafts (3,b59,999) (1,341,868) (2/318,131)

(3,648,994) (1,330,300) (2,318,694)- - - - - - - -

14

8/7/2019 EFC 1991 1992 Accounts


· .REPORT OF THE AU DlTORS TO THE MEMB(:RS OF

TRE EVERTON fOOTBAll CLUB COMPANY LIMITED

We haveaudited the accounts set cut on pagc:J 7 to 14 inaccordance with Auditing Standards.Inour opinion, the accounts give a true and Fair view o( the state of the company's affairs atthe 31 st May 1992 and ofitslossandcash flow for theyear ended on thatdate,and havebeen properly preparedinaccordance with the CompaniesAct1985.

I

ROGERS, BOWLER & CO., C h a r t e r ~ dAccountants and Registered Auditor, B { r k e n h ~ a d .

15

14th July 1992

8/7/2019 EFC 1991 1992 Accounts


THE EVERTON FOOTBALl. CLUB COMPANY LIMITED

MINUTES OF THE 112th ANNUAl. GENERAL MEETING

THE 112lh ANNUAL GENERAL MEETING OF THEEVERTON FOOTBALL CLUB CO. LTD., HELD ATGOODISON PARK, UVERPOOl ON THURSDAY, 1 5 t ~

AUGUST, 1991 AT 7.00 p.m.

Present: SirPhilip Carter (in the Chair)J Messrs. D. H. Pitcher,A. W. Waterworth, K.M. Tamlin, D. A. B.Newton, D. M.Marsh and W. Kenwrlght (Directors). J. Greenwood(Secretary), H. Kendall (Manager) and P. 8, Bowler(representing Rosers, Bowler & Co.) together with 1495tockhoIders.Apologies were recorded from Sir John Moores, C.B.E.,Messrs. N. Dainty, L.Bernlcoffand A. E. Nolan.

NOTICECONVENING THE MEETINGItwasagreed that theNotice convening the Meetingshould

be taken as read.

ADMISSION OFTHE PRESSIt was agreed that members of the Press in attendance

should be permitted to remain in attendance throughoullhemeeting.

MJNUTESItwas agreed that theMinutes of the 111 th Annual General

Meeting, ascirculated/should be taken as read. Mrs. E.Jonesproposed that the minutes be approved and signed as acorrect record. Mr. R. E. D. Edwards seconded and theproposal was carried.

CHAIRMAN'S REPORTIt was agreed thatthe Chairman's Report, circulatedwith

the Annual Report, should be taken as read. The Chairmanadvised the meetingthat the Directors haddecided thattheywished to revert to the system WhNC theofficeof Chairmanwasheldby Directors in rotation andaccordingly hewouldbe stepping down at theconcluslonoft!", A.G.M. The Boardhad unanimously elected Dr. David Marsh to become thenext Chairman. SirPhilip thanked everyone concerned fortheir support during hie;Chairmanship. Mr, G. Bet,\((ie offeredcongratulations to Sir Philip on the Knighthood he hadreceived in the Queen's BirthdayHonours list and asked iftho Board would consider ensuring thatthe name of DixieDean was commemorated in some way by the Clubpointillgout that Cl number of Dixie's medals were to beauctioned atChristies in the nearfuture.

16

The Chairman advised Mr. Beattie that this matterwasalready under discussion by the Directors,

DIRECTORS' REPORT AND ACCOUNTSIt was agreed that the Dlrectors' and Auditors' Reports

should be taken as read. The Chairman ronfirmed to Mr. K.Nolanthat steps were being taken to attempt to reversethecontinueddecline in income (rom the Lotteries. Mr.A. W.

Waterworthformally proposed the adoption of the Reportsand Accounts. Mr. K.Nolan seconded and the proposal wascarried.

DIVIDENDMr. W. Kenwright proposed that no dividend should

be paid. Mr. F. Peacock seconded and the proposal wascarried.

APPOINTMENTOF AUDITORSMr. D.H. Pitcher proposed that Messrs. Rogers, Bowler&

Co., should be re-appointed asAuditors forthe ensuing yearand their remuneration be left forthe Directors to decide.Miss L. Brown seconded and the proposal was carried.

ELECTJON OF DIRECTORSThe Chairman reported that Mr.D.A.B Newton and Dr.D.M.Marshwere the retiring Directors.Both wereeligibleand seekingre-election,Nominationsreceived in r6,..,ect ofMessrs. G. H. E. Birchand P. L. Parry had been withdrawn.

Themeeting unan imously agreed toa single resolution tore-electthe two retiring Directors for a further3 year period.The Chairman then formally proposed that Mr. D. A. B.Newton and Dr.D.M. Marsh should be elected as Directors(ora3 year tenn,The Reverend R. Grace seconded and the

proposal was carried.Dr. Marsh thanked theMeelingon behalf of Mr.Newton

and himself and alsoexpressed hisappreciation of thehonouron his beingappolnted as the new Chairman. On behalfofthe membersofthe Board healso wished to place on recordtheir approclatfon of the effortsof SirPhilip Carter andthesuccess enjoyed by the team during his termof office.

VOTEOF THANKSThemeeting dosed with a vote of thanks to theDirectors

and Management proposed by Mr. P. l . Parry and secondedby Mr. J. T u ~ . h i n s h a m .

efc 1991 1992 accounts

Documents