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Registered number: 00089767
SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
COMPANY INFORMATION
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D Macklin (appointed 20 January 2016)
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S A Kavanagh (resigned 31 October 2016)
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Chartered Accountants and Statutory Auditors
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The Royal Bank of Scotland plc
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
CONTENTS
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Directors' Responsibilities Statement
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Independent Auditors' Report
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Statement of Income and Retained Earnings
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Notes to the Financial Statements
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2016
The board are ambitious to maximise the Clubs potential, and believe the opportunity for success within the Clubs demographic to be considerable. However, in the view of the Board, this can only truly be fulfilled through improved infrastructure and why a move to a new stadium has remained a key objective.
A project of such magnitude is not, in the Board’s opinion, sustainable if leveraged by debt and why enabling development to help fund the proposals is crucial. A smooth transition from Roots Hall to Fossetts Farm (Fossetts) is fundamental. Whilst this adds to the complexity through the need to coordinate two major, inextricably linked developments in tandem, it is nevertheless a pre-requisite.
A new planning application at Fossetts will be submitted next month and which provides the appropriate mix of ‘enabling development’ to facilitate the new stadium. We have not previously been this advanced in coordinating all the ‘ingredients’ and with support from the Council the Club can look forward to creating new facilities that will enable it to compete in the Championship… and beyond.
The Club competed in league 1 for the first time after spending five, frustrating, seasons in League 2. Over this period the loss has fluctuated as a result of increased investment in higher player wages this has ensured the Club is competitive in League 1. This is being demonstrated in the current season.
Major investment in the Clubs Academy has also continued unabated for over 10 years and which will bring further rewards as facilities continue to improve. Through the purchase of the London Soccer Domes early last year the Club will as a result of providing indoor training facilities (60m x 40m) soon qualify for Category 2 Status.
Our Academy is already highly regarded by the industry and these plans, it is hoped, will help further aid the production of the Clubs stars in the future.
The group has continued to support the Club, including investment in the Academy, and which will continue for the foreseeable future. Without group support, the Club would not be able to maintain its infrastructure and competitive edge. Currently the Group is owed in excess of £14m.
Principal risks and uncertainties
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The Club has for many years, and continues to be reliant on its parent company for support. Without this support the Club could not successfully compete.
Such a position is not, to a greater or lesser degree, unusual in Football. However in the long term is equally not sustainable and why we place great importance on a move to the new modern facilities that will provide the ability to compete as a result of improved revenue streams.
Many supporters love Roots Hall but sadly our current stadium is no longer fit for purpose in the modern era with an increasing costs year on year to ensure we maintain the standards demanded by the authorities. Under our new stadium plans the Clubs “risks and uncertainties” are substantially reduced, if not eradicated, with continued prudent management.
Page 1
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2016
This report was approved by the board and signed on its behalf.
Page 2
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2016
The Directors present their report and the financial statements for the year ended 31 July 2016.
The principal activity of the Company continues to be that of a Professional Football Club.
The loss for the year, after taxation, amounted to £1,417,228 (2015 - loss £1,811,820).
The Directors do not recommend the payment of a dividend (2015: £NIL)
The Directors who served during the year were:
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D Macklin (appointed 20 January 2016)
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S A Kavanagh (resigned 31 October 2016)
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Principal risks and uncertainties
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The Company is exposed to a variety of risks. These range from the wider effects of the general economy and external competition to those more specific to the Company, such as its own financial strength and size. The Board regularly review these risks and their potential impact on the Company. The Board monitors the Company's performance through use of regular financial information and management reports. The Board focuses on the Company's levels of profitability, liquidity and balance sheet strength.
Treasury operations and financial instruments
The Company operates a treasury function which is responsible for managing the liquidity and interest risks associated with the Company's activities. The Company's principal financial instruments are loans, the main purpose of which is to raise finance for the Company's operations. In addition, the Company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.
Liquidity risks
The Company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the Company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The Company is exposed to interest rate risk on loans. The Company manages debt so as to reduce its exposure to changes in interest rates.
The Club continues to seek improvements in its turnover and trading performance. The Directors are of the opinion that growth in revenue streams will be greatly aided by the move to the new stadium. The Company is dependant on funding from its major shareholder and parent company, South Eastern Leisure (UK) Limited and the Directors would like to thank them for this financial support.
Page 3
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2016
The Company provides a significant number of local charities, football teams and schools with free tickets and signed merchandise. The Company also provides resources and accommodation to the Southend United Community and Educational Trust, a registered charity. The Club has not quantified the cost of the resource given, even though it is substantial and sustained. The club has no intention of recovering this cost from the Trust as it is part of our Corporate Social responsibilities’ of which we are proud.
Disclosure of information to auditors
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Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
·so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
·the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
The auditors, WMT, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 4
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2016
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:
·select suitable accounting policies for the company's financial statements and then apply them consistently;
·make judgments and accounting estimates that are reasonable and prudent;
·state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
·prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 5
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
We have audited the financial statements of Southend United Football Club Limited (The) for the year ended 31 July 2016, set out on pages 8 to 25. The relevant financial reporting framework that has been applied in their preparation is the Companies Act 2006 and the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and Auditors
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As explained more fully in the Directors' Responsibilities Statement on page 5, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Financial Reporting Council's Ethical Standards for Auditors.
Scope of the audit of the financial statements
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An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of whether the accounting policies are appropriate to the Company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Strategic Report and the Directors' Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
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In our opinion the financial statements:
·give a true and fair view of the state of the Company's affairs as at 31 July 2016 and of its profit or loss for the year then ended;
·have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
·have been prepared in accordance with the requirements of the Companies Act 2006.
In forming our opinion, we have considered the adequacy of the disclosures made in note 1 of the financial statements concerning the company's ability to continue as a going concern. The directors are confident that the parent company, South Eastern Leisure (UK) Limited and it's major shareholder, will continue to provide these necessary funds to the company through their financing activities. However, there can be no certainty in these matters and this indicates the existence of a material uncertainty which may cast doubt on the company's ability
Page 6
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE) (CONTINUED)
to continue as a going concern. In view of this uncertainty we consider that is should be drawn to your attention but our opinion in not qualified in this respect.
Opinion on other matter prescribed by the Companies Act 2006
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In our opinion the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with those financial statements.
Matters on which we are required to report by exception
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
·adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
·the financial statements are not in agreement with the accounting records and returns; or
·certain disclosures of directors' remuneration specified by law are not made; or
·we have not received all the information and explanations we require for our audit.
Graham Wintle (Senior Statutory Auditor)
for and on behalf of
WMT
Chartered Accountants and Statutory Auditors
45 Grosvenor Road
St Albans
Hertfordshire
AL1 3AW
27 March 2017
Page 7
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2016
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Interest payable and expenses
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Retained earnings at the beginning of the year
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Retained earnings at the end of the year
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Page 8
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
REGISTERED NUMBER: 00089767
BALANCE SHEET
AS AT 31 JULY 2016
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Under Companies Act 2006, s454, on a voluntary basis, the Directors can amend these financial statements if they subsequently prove to be defective. The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 25 form part of these financial statements.
Page 9
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2016
Cash flows from operating activities
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Loss for the financial year
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Amortisation of intangible assets
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Depreciation of tangible assets
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Loss on disposal of tangible assets
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(Increase)/decrease in debtors
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(Decrease)/increase in creditors
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Increase in amounts owed to groups
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of intangible fixed assets
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Sale of intangible assets
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Net cash from investing activities
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Cash flows from financing activities
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Net cash used in financing activities
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Net increase/(decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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Page 10
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
Southend United Football Club Limited is a limited company incorporated in England and Wales. The address of the registered office is given on the Company information page. The principal activity of the Company continued to be that of a Professional Football Club.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland, Companies Act 2006 and FRC Abstracts.
Information on the impact of first-time adoption of FRS 102 is given in note 27.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The financial statements have been prepared on the going concern basis. The Directors are confident that its major shareholder and parent company, South Eastern Leisure (UK) Limited, will continue to provide the necessary funds to the Company through their financing faculties. However, there can be no certainty in these matters. On this basis, the Directors consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from a withdrawal of funding facilities.
Page 11
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
·the Company has transferred the significant risks and rewards of ownership to the buyer;
·the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
·the amount of revenue can be measured reliably;
·it is probable that the Company will receive the consideration due under the transaction; and
·the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
·the amount of revenue can be measured reliably;
·it is probable that the Company will receive the consideration due under the contract;
·the stage of completion of the contract at the end of the reporting period can be measured reliably; and
·the costs incurred and the costs to complete the contract can be measured reliably.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Page 12
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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33% per annum straight line
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20% per annum straight line
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33% per annum straight line
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.
Stocks are stated at the lower of cost and the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
Page 13
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
2.Accounting policies (continued)
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Financial instruments (continued)
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Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Finance costs are charged to the Statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.
Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to the Statement of Income and Retained Earnings on a straight line basis over the lease term.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Page 14
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
2.Accounting policies (continued)
All borrowing costs are recognised in the Statement of Income and Retained Earnings in the year in which they are incurred.
Tax is recognised in the Statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that:
1. The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
2. Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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There were no critical judgments made in the process of applying the Company's accounting policies.
There were no key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Page 15
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
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An analysis of turnover by class of business is as follows:
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Operations and other income
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Centre of Excellence income
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All turnover arose within the United Kingdom.
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Page 16
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
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The operating loss is stated after charging:
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Depreciation of tangible fixed assets
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Amortisation of intangible assets, including goodwill
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Other operating lease rentals
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Defined contribution pension cost
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Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
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Staff costs, including Directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the Directors, during the year was as follows:
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Playing, training and coaching
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Establishment and ground maintenance
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Page 17
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 1 Director (2015 - 1) in respect of defined contribution pension schemes.
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Key management remuneration for 2016 is £112,523 (2015 - £ 60,000).
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Interest payable and similar charges
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Other loan interest payable
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Page 18
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
11.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is the same as (2015 - the same as) the standard rate of corporation tax in the UK of 20% (2015 - 20%) as set out below:
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Loss on ordinary activities before tax
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Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 20% (2015 - 20%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Capital allowances for year in excess of depreciation
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Changes in provisions leading to an increase (decrease) in the tax charge
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Unrelieved tax losses carried forward
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
Page 19
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
Page 20
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
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L/Term Leasehold Property
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Charge for the period on owned assets
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Bar, catering and miscellaneous stock
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The value of stocks sold in the year is £211,347 (2015 - £190,314).
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Page 21
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
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Due after more than one year
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Prepayments and accrued income
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During 1987, the Company entered into a joint venture agreement ("the agreement") to build a block of flats on land owned by the Company. The agreement specified that both parties would retain equity shares in each unit of leasehold property which would be realised no later than five years from the date of sale of each unit. The equity shares allowed the joint venture partners to participate in the agreed values of the leasehold interests on sale and any subsequent increase in value if sold within five years of granting the lease. Thus the equity share debtor of £10,700 (2015: £10,760) represents the amounts due to the Company, after provisions, in respect of its share in the total sale price of each unit of leasehold property.
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Page 22
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
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Financial assets that are debt instruments measured at amortised cost
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Financial liabilities measured at amortised cost
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Financial assets that are debt instruments measured at amortised cost comprise trade debtors, other debtors and accrued income.
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Financial liabilities measured at amortised cost comprise trade creditors, other creditors and accruals.
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An estimated deferred tax asset of £3,277,974 (2015: £3,240,350) in respect of fixed assets and short term timing differences and losses has not been provided for. due to the uncertainty of sufficient profits in
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Shares classified as equity
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Allotted, called up and fully paid
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677,952 Ordinary Shares shares of £0.25 each
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Under the terms of certain contracts for the transfer of players' registrations, future payments may be due, dependant on the future transfer value attained for certain players, It is not possible to quantify the maximum liability that could be payable. In addition, where payments due for player transfers cannot be accurately determined at the year end, only those amounts actually agreed have been included in these financial statements. Any subsequent amounts will be included when they have been agreed.
Page 23
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
Eligible players are members of the Football League Limited Players Retirement Income Scheme. No employers contributions are made. The scheme is defined contribution in nature. For administration & support employees the Company contributes towards a Pension Scheme. During the year contributions of £26,548 (2015: £13,453) were made. At the year end £872 (2015: £2,105) of outstanding contributions were included in other creditors.
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Commitments under operating leases
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Rentals are payable to the leaseholder on demand.
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Page 24
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2016
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Related party transactions
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DM Markscheffel is a Director of the Company. At the year end, the Company owed £116,699 (2015: £116,699) to DM Markscheffel. During the year G Lockett, a Director of the Company, continued his loan to Southend United Football Club Limited. At the year end the Company owed £259,809 (2015: 259,809) in respect of the capital portion of this loan. Interest is charged on the loan and has been accounted for separately. The Company also owed G Lockettt £57,810 (2015: £57,810) at the year end. A sum of £11,250 (2015: £11,250) was outstanding at the year end to SP Financial Management Limited, a company in which Gary Lockett has a controlling interest. Ticket sales of £842 (2015: £NIL) were made during the year to SP Broker Services; a company in which Gary Lockett has a controlling interest. F Van Wezel is a Director of the Company. At the year end the Company owed £240,000 (2015: £250,000) in respect of the capital portion of the amount due to F van Wezel. Interest is charged on this loan and has been accounted for separately. F Van Wezel has a controlling interest in Hi-Tec Sports plc. During the year the Company made sponsorship and hospitality sales of £18,000 and made ticket sales of £36 (2015: £18,000 relating to sponsorship and hospitality) to Hi-Tec Sports plc. At the year end £36 (2015: £NIL) was outstanding.
South Eastern Leisure UK Limited South Eastern Leisure UK Limited ("SEL") is the direct parent undertaking. The amount owed to SEL group at the year end was £13,571,518 (2015: £9,747,511). This amount is included in creditors falling due within one year. The Company leases the training ground from SEL and the Roots Hall ground from Roots Hall Limited. Rent is charged amounting to £400,000 (2015: £NIL). A management charge amounting to £310,000 (2015: £275,000) was also payable to the group. During the year, SEL group invoiced the Company £835,074 (2015: £NIL) in relation to the building of the new stadium. Southend United Community and Education Trust G King is Chairman of Southend United Community and Education Trust. During the year the Company made sales of £8,151 (2015: £8,115) to the Trust. In 2016 and 2015 the Club assisted the Trust in processing some bookings; as a consequence some of the debtor payments went through the Club bank account which resulted in the Company owing the Trust £4,998 (2015: £2,058) Mezcal Investments Mezcal Investments Limited owns 50% of SEL. In 2006 the Company received loans from Mezcal Investments Limited amounting to £1,000,000. At the year end £1,000,000 (2015: £1,000,000) remained outstanding.
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The immediate and ultimate parent company is South Eastern Leisure UK Limited. There is no ultimate controlling party in the current or the preceding year.
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First time adoption of FRS 102
The policies applied under the entity's previous accounting framework are not materially different to
FRS 102 and have not impacted on equity or profit or loss.
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Page 25
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SOUTHEND UNITED FOOTBALL CLUB LIMITED (THE)
SCHEDULE TO THE DETAILED ACCOUNTS
FOR THE YEAR ENDED 31 JULY 2016
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