Company registration no.

05765697

LEEDS CITY HOLDINGS LIMITED

Report and Financial Statements Year ended 30 June 2011

A39

30/03/2012
COMPANIES HOUSE

#29

LEEDS CITY HOLDINGS REPORT AND FINANCIAL CONTENTS

LIMITED STATEMENTS 2011

Page
Officers and professional advisers Directors' report Statement of directors' responsibilities Auditor's report Consolidated profit and loss account Company balance Sheet Consolidated balance sheet Consolidated cash flow statement Reconciliation of net cash flow to movement in net funds Reconciliation of operating loss to cash flow from operating activities.. Notes to the financial statements 2 3-4

5
6 7 8 9 10
11

11

12-20

1

LEEDS CITY HOLDINGS LIMITED REPORT AND FINANCIAL STATEMENTS OFFICERS AND PROFESSIONAL
Directors KW Bates SA Harvey Y S Allen Secretary SA Harvey Registered office Eiland Road Leeds West Yorkshire LS11 DES Bankers Bank of Ireland 15-16 Park Row Leeds LS15HD SOliCitOrs McCorrmcks Solicitors 37 East Parade Harrogate HG15LQ Walker Moms Kings Court 12 King Street Leeds LS12HL Auditors Baker nny UK Audit LLP Registered Auditor Chartered Accountants 2 Whitehall Quay Leeds LS14HG

2011

ADVISERS

2

~---~~-

-~---

LEEDS CITY HOLDINGS LIMITED DIRECTORS' REPORT

The directors present their report and the audited financral statements for the year ended 30 June 2011 Pnncrpal actrvrtres The prmcipal activity of the company dunng the year was that of a holding company of Leeds United Football Club Limited, Yorkshire Radio limited, Leeds United Centenary Pavinon Limited and Leeds Uruted Media Limited Review of business activities As the holding company of the group, the Directors Will manage the tradmg affairs of the various subsidiary companies on behalf of the Shareholders The Shareholders are comfortable that the debts owed by the group should be managed and maintained company
In

this

The creation of Leeds United Media Limited and Leeds United Centenary Pavihon Ltd was done so as to allow separate sntemal or external Investment Into these particular areas of our busmess In the future On the field, continued financial support Willbe made available to the Manager to strengthen the team as required Off the field, the enhancement of the facmnes at Eiland Road remains the pnonty of the Directors along With providmq support to the media operations to ensure the group are best placed to take advantage of available media nghts In the future Outro limited acquired the shareholdmg of FSF Limited In Leeds City Holdmgs Limited dunng the year Outro limited IS owned by Mr K W Bates and as such he IS deemed to be the ultimate controlling party of Leeds United Football Club Limited This ownership structure has been approved by the Football Authontres Results and dividends The group profit for the year after taxation was £2,988,000 (2010 £1,517,000) payment of a divrdend The directors do not recommend the

Directors Directors serving the company dunnq the year and since the year end were as follows KW Bates S A Harvey YSAlien Financial Instruments, RISks and Uncertainties Cash flows are closely monitored on a dally baSIS Financial nsks are kept to a minimum wherever possible The group's financial Instruments comprise borrowmqs, cash and hquid resources, finance leases and vanous other Items such as trade debtors and trade creditors that anse directly from ItSoperations The group does not engage In trades of a speculative nature and has no foreign currency exposure The group momtors Its cash flow throughout the year and reviews Its overall finencial requirements on an annual baSIS Key performance indicators The performance of the team IS rnorutored by publicly available League POSition tables In addition to tlus, the commercial operations of all group companies are rnorutored against detailed budgets and benchmarkmg exercises are undertaken to assess the group's performance Within the relevant sector The £6942m nse In group tumover from £27 533m to £34 475m represents an Increase of 25 2% and Leeds United Football Club Limited achieved the highest home attendance In the Championship Employee Involvement The group's employment pohcres are designed to attract, retain and motivate the best people The group Involves employees at all levels of the organisation through a broad base of regular cornmurucanon meetings and bneting sessions to understand current performance and commumcate future developments Disabled employees Applications for employment by disabled persons are always fully considered In the event of members of staff becoming disabled, every oppcrturuty IS made to ensure their employment With the group continues and that appropnate training IS arranged It IS the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be Identical to that of other employees Auditors Baker Tilly UK Audit LLP, Chartered Accountants, are deemed to be re-appomted under Section 487(2) of the Companies Act 2006

3

LEEDS CITY HOLDINGS LIMITED DIRECTORS' REPORT (Cont...)

Statement as to disclosure of information to auditors The directors who were In office on the date of approval of these financial statements have confirmed, as far as they are aware, that there IS no relevant audit Information of which the auditors are unaware Each of the directors have confirmed that they have taken all the steps that they ought to have taken as directors In order to make themselves aware of any relevant audrt information and to establish that It has been communicated to the auditor Approved by the board of directors and Signed on behalf of the board

SA Harvey Director 22 December 2011

4

LEEDS CITY HOLDINGS LIMITED DIRECTORS' RESPONSIBILITIES OF FINANCIAL STATEMENTS IN THE PREPARATION

The directors are responsible for prepanng 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 financral statements In accordance with United Kingdom Generally Accepted Accounting Practice (Umted Kingdom Accounting Standards and applicable law) 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 group and the company and of the profit or loss of the group for that penod In prepanng those financial statements, the directors are required to a b
C

select SUItableaccounting policies and then apply them consistently, make Judgements and accounting estimates that are reasonable and prudent, prepare the financial statements on the gOing concern basis unless It IS Inappropnate to presume that the group and the company will continue In business

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial positron of the group and the company and enable them to ensure that the financial statements comply Withthe Companies Act 2006 They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregulantres

5

LEEDS CITY HOLDINGS LIMITED INDEPENDENT AUDITOR'S HOLDINGS LIMITED REPORT TO THE MEMBERS OF LEEDS CITY

We have audited the group and parent company financial statements (the "flnancral statements") on pages 7 to 20 The financial reporting framework that has been applied In their preparation IS applicable law and Uruted Kingdom Accountmq Standards (Uruted KIngdom Generally Accepted Accounting Practice) Thts- 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 auditor's report and for no other purpose To the fullest extent perrmtted by law, we do not accept or assume responsrbihty to anyone other than the company and the company's members as a body, for our audit work, for thiS report, or for the oprruons we have formed Respective responslbrlmes of directors and auditor As more fully explained In the DIrectors' Responsibilities Statement set out on page 5, the directors are responsible for the preparation of the financtal statements and for being satisfied that they give a true and fair vIew Our responsibility IS to audit and express an opiruon on the financial statements In accordance WIth apphcable law and International Standards on AudIting (UK and Ireland) Those standards require us to comply with the Audnmq Practices Board's (APS's) Ethical Standards for Auditors Scope of the audit of the financial statements A descnption of the scope of an audit www frc org uklapb/scope/pnvate cfm

of

financial

statements

IS provided

on

the

APS's

websrte

at

Opinion on the financial statements In our opiruon the flnancral statements • give a true and fair view of the state of the group's and parent company's affairs as at 30 June 2011 and of the group's profit for the year then ended, • have been properly prepared In accordance with United Kingdom Generally Accepted Accountmg Practice, and • have been prepared In accordance WIth the requirements of the Companies Act 2006 Opinion on other matter prescnbed by the Companies Act 2006 In our opinion the information gIven In the Directors' Report for the financial year for which the financial statements prepared IS consistent with the flnancsal statements

are

Matters on which we are required to report by exception We have nothing to report In respect of the followmq matters where the Compames Ad 2006 reqinres us to report to you If, In our opiruon • adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not VISited by us, or • the parent company flnancial statements are not In agreement with the accounting records and returns, or • certain drsclosures of directors' rernuneranon specified by law are not made, or • we have not received all the Information and explanations we require for our audrt

~C\lw 1;ll

U~

A~~

L-U
Statutory Auditor

RIchard Kong (senoltutolY Aucuor)
For and on behalf of SAKER TILLY UK AUDIT LlP, Chartered Accountants 2 Whitehall Quay leeds LS14HG 22 December 2011

6

LEEDS CITY HOLDINGS LIMITED CONSOLIDATED PROFIT AND LOSS ACCOUNT Year ended 30 June 2011

Nole

Operations excludmg player tradmg £'000

Player trading £'000

Year ended 30 June 2011 £'000

Year ended 30 June 2010 £'000

Turnover Cost of sales Gross profit Administrative Operating expenses

2

34,475 (6,376) 28,099 (26,486) (1,104)
(1,104)

34,475 (6,376) 28,099 (27,590) 509 (53) 456 9 (122) (1,157) (1,157) 343 2,645 2,988

27,533 (5,883) 21,650 (23,779) (2,129) 3.818 1,689 3 (175) 1,517 1,517

profit/(Ioss)

3
acuvrnes before interest

1,613 1,613

ProfiU(loss) on player trading Profit/(Ioss) on ordinary

(53) (1,157) 4 5 7 16 9 (122) 1,500 2,645 4,145

Other Interest receivable and similar Income Interest payable and similar charges Profit/(Ioss) on ordinary

actrvrties before taxation
year

Taxation on profit on ordinary actrvmes Profit/Closs) for the financial

The results for both periods relate to contmumq operations There are no recognised gains and losses for either penod other than as stated Accordingly, no statement of total recognised gams and losses has been presented
In

the profit and loss account

7

LEEDS CITY HOLDINGS LIMITED

COMPANY BALANCE SHEET
30 June 2011

Company registration

no 05765697

2011 £'000

2010 £'000

Fixed assets Investments Current assets Debtors Creditors: amounts failing due within one year Net current (lIabllities)/assets Total assets Creditors: amounts falling due after more than one year Net assets Capltal and reserves Called up share capital Share Premium Profit and loss account Equity shareholders' funds 15 15 16 16 1,400 1,600 (2,408) 592 1,400 1,600 (2,251) 749 14 592 12 13 (1,561) (1,561) 592 1,471 1,471 (226) 1,245 2,220 (1.471) 749 10 2,153 2,153 975 975

The financial statements on pages 7 to 20 were approved by the board of directors and authorised for Issue on 22 December 2011 and sIgned on ItS behalf by

S A Harvey Director

8

LEEDS CITY HOLDINGS LIMITED CONSOLIDATED BALANCE SHEET

Company registration

no 05765697

30 June 2011
2011 £'000 2010 £'000

Fixed assets Intangible assets Tangible assets Current assets Stock Debtors Debtors due after more than one year Cash at bank and
In

8

8,557 8,271 16,828

8,706 4,534 13,240 716 3,643 33 3,670 8,062 (11,920) (3,858) 9,382 (2,615) 6,767

9

11 12 12 hand
13

836 6,194 2,067 600 9,697 (15,810) (6,113) 10,715

Creditors: amounts fallmg due wrthm one year Net current habrhtres Total assets less current liabilities Creditors year Net assets Capital and reserves Called up share capital Share Premium Profit and loss account Equity shareholders' funds amounts falling due after more than one

14

(960) 9,755

15 15 16 16

1,400 1,600 6,755 9,755

1,400 1,600 3,767 6,767

The financial statements on pages 7 to 20 were approved by the board of directors and authonsed for Issue on 22 December 2011 and signed on Its behalf by

S A Harvey

Director

9

LEEDS CITY HOLDINGS LIMITED CONSOLIDATED CASH FLOW STATEMENT
Year ended 30 June 2011 £'000 £'000 Year ended 30 June 2010 £'000 £'000

Net cash mflow/(outflow} Interest received Interest paid

from operatmg activities (page 11) 9 (112) (iD)

2,174 3 (163) (i2) (113)

1,950

Returns on Investments and servicing of finance

Interest element of finance lease rental payments Net cash (outflow) from returns on Investments and servicing of finance Capital expenditure and financial Investment Purchase of tangible fixed assets Purchase of intangible fixed assets Cash payments from player trading Cash receipts from player trading Net cash Inflow from capital expenditure and financial Investment Cash (outflow)linfJow before use of Ilqurd resources and financing
Acqursrtions

(172)

(4,806) (1,718) 469 (6,055) (3,994)

(1,339) {260} (786) 3,951 1,566 3,344

and disposals

Purchase of subsidtary undertaking Net cash acquired With acquismon of subsidiary Net cash outflow from acqursmons and disposals Cash (outflow)linfJow financing Financing Movement In short term borrowings Finance lease repayments Net cash mfJow/(outflow) from flnanernq (Oecrease)/lncrease
In

before use of llqurd resources and

(3,994)

3,344

975 (51) 924 (3,070) (64) (64) 3,280

cash in the penod

10

LEEDS CITY HOLDINGS LIMITED NOTES TO THE GROUP FINANCIAL RECONCILIATION

STATEMENTS

OF NET CASH FLOW TO MOVEMENT IN NET (DEBT)/FUNDS

Year ended 30 June 2011 £'000

Year ended 30 June 2010 £'000

(Decrease}lincrease Cash {lnflow}/outflow Movement
In

In

cash

In

the penod

(3,070) (924) (3,994) (77) 3,547 (524)

3,280 64 3,344 (176) 379 3,547

from debt and lease financing

net debt) In the period

New finance leases Opemng net funds Closing net (debt)/funds

RECONCILIATION ACTIVITES

OF OPERATING

LOSS TO CASH FLOW FROM OPERATING

Year ended 30 June 2011 £'000

Year ended 30 June 2010 £'000

Operating Deprecration Amortisation

profit/(Ioss) of tanqible fixed assets of intangible fixed assets

456 1,146 1,348 53 (120) (1,940) 1,231
activities

(2,129) 754 1,229 40 (1S3) (11) 2,230 1,950

Loss on sale of fixed tangible assets Increase (Increase) Increase
In

stock debtors

In In

creditors from operating

Net inflow

2,174

11

LEEDS CITY HOLDINGS LIMITED NOTES TO THE GROUP FINANCIAL

STATEMENTS
United Kingdom accounting standards The

1 Principal accountmg policies The financial statements are prepared In accordance with applicable pnncipal accounting policies adopted by the directors are set out below

BaSIS of preparation Detailed forecasts have been prepared, indicating that the group Will have sufficient resources to meet debts as they fall due dunng the next year As a result, the directors consider that It IS appropnate to prepare the accounts on the gOlOg concern baSIS No profit and loss account for the company 408 of the Companies Act 2006 Basis of accountmg The financial statements has been presented for Leeds City Holdings Limited as permitted by Section

are prepared In accordance

with the hrstoncal cost convention statements of the company and all ItS Subsidiary

Basis of consolidation The consolidated financial statements Incorporate the financtal undertakings Intra-group trading IS ehrrunated on consohdanon Tumover Turnover represents

all Income ansmq from the ordinary activities of the group excluding transfer fees and value added

tax
Gate receipts and other match day revenue IS recognised as the games are played It relates Amounts received In

Revenue denved from season tickets IS credited to Income In the penod to which advance are credited to deferred Income In the balance sheet

Sponsorship, advertising and Similar commercial Income IS recognised over the duration of the respective Amounts received In advance are credited to deferred Income In the balance sheet The fixed element of broadcasting revenues IS recognised for live coverage or highlights are taken when earned over the duration

contracts

of the football season whilst fees received

Intangible fixed assets - Player Registrations In hne WIth FRS 10 GoodWill and Intangible Assets, the costs associated With the acqursitron of players' registrations are capitalised as intangible fixed assets and amortised, In equal annual Instalments, over the penod of the respective players' contracts The transfer fee levy refund received dunng the penod IS credited against additions to intangible assets Players' registrations are wntten down for Impairment when the carrying amount exceeds the amount recoverable through use or sale Intangible fixed assets - Carriage agreement In line With FRS 10 Accounting for Goodwrll and Intangible Assets, the costs associated With the carnage agreement are capitalised as mtanglble fixed assets and amortised, In equal annual mstalments, over the penod of the contract which expires In 2016 Intangible fixed assets - GoodWill Goodwill relating to the football club IS being amortised In equal Instalments over 50 years based on the longeVity of the club and the strength of the Brand All other goodWill IS amortised over a 20 year penod Intangible fixed assets - Trademarks Trademarks are bemg amortised In equal Instalments over 10 years

Tangible fixed assets Depreeratron IS calculated to wnte off the cost, or revalued amount of tangible ftxed assets, less their esnmated residual values, on a straight Ime baSIS over the expected useful economic life of the asset concerned, as follows Assets under the course of construction Leasehold land and buildmqs Fixtures and fitbngs Alterations and Improvements Assets under the course of construction and 0- 22 years 1 - 10 years 2 - 10 years are not depreciated until they are brought Into productive use

Fixed asset Investments Fixed asset Investments are stated at cost In the company

balance sheet

12

LEEDS CITY HOLDINGS LIMITED NOTES TO THE GROUP FINANCIAL STATEMENTS

SI9mn9-on fees Signing-on fees represent a normal part of the employment cost of the player and as such are to be charged to the profit and loss account In the period In which the payment IS made, except m the circumstances of a player disposal In that case, any rernaimnq slgmng-on fees due are allocated In full against profit on disposal of players' registrations In the penod In which the player disposal IS made Stocks Stacks, which compnse goods held for re-sale, are stated at the lower of cost and net realisable value Leases Assets held under finance leases and hire purchase contracts are capitahsed at their fair value on the inception of the lease and depreciated over their estimated useful life Finance charges are allocated over the penod of the lease In proportion to the capital amount outstanding Operating lease rentals are charged to profit and loss In equal amounts over the term of the lease Deferred taxation Deferred tax IS provided In full on timing differences which result In an obligation at the balance sheet date to pay mare tax, or a nght to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law Tlrrunq differences anse from the mclusron of Items of Income and expenditure In tax computations In penods different from those In which they are mcluded In financial statements Deferred tax IS not provided on tlmsng differences ansmq from the revaluation of fixed assets where there IS no commitment to sell the asset, or on unremitted earnings of subsidsanes and associates where there IS no commitment to remit these earnmgs Deferred tax assets are recognised to the extent that It IS regarded as more likely than not that they Will be recovered Deferred tax assets and liabilities are not discounted Pension costs For defined contnbutlon schemes the pension cost charged In the penod represents contnbutrons payable by the group to vanous pension schemes For defined benefit schemes the expected cost of providing pensions, as calculated periodically by professronally qualified actuaries, IS charged to the profit and loss account so as to spread the cost over the service lives of employees In such a way that the pension cost IS a substantially level percentage of current and expected future pensionable payroll 2 Turnover
Year ended 30 June 2011 £'000 Year ended 30 June 2010 £'000

Gate receipts Television and broadcasting Merchandising mcome revenue Income

12,711 821

11,732 802

6,064
4,637 10,242 34,475

5,509
757 8,733 27,533

Central drstnbunons Other ccmmeroal

All turnover relates to the pnnctpal actiVity of operatmg a professional wrthm the UK

football club and anses from connnumq acnvmes

13

LEEDS CITY HOLDINGS LIMITED NOTES TO THE GROUP FINANCIAL
3 Operatmg profit

STATEMENTS
Year ended 30 June 2011 £'000 Year ended 30 June 2010 £'000

Operating

profit IS stated after charging of player registration costs of goodwill of carnage agreement of trademarks fixed assets

Amortisation Amortisation Amortisation Amortisation Amortisation Depreclabon

1,104
193

990

189
50

50
1

of tangible

Owned assets Assets held under finance leases Audit services Statutory audit of parent and consolidated accounts Other services provided by an associate of Baker Tilly UK Audit - The auditing of accounts of associates Audit of subsidranes - Other services relating to taxation Compliance Operating services AdVISOry services lease charges Land and buildmgs Plant and machinery Motor vehicles of the company

1,121 25
6
LLP

683
71 2

pursuant to legislation

55 6 8 1,829 8 108

50 6
3

1,756 16 107

4 Other interest

receivable

and similar

income
Year ended 30 June 2011 £'000 Year ended 30 June 2010 £'000

Bank. mterest

9 9

3 3

5 Interest

payable

and similar

charges
Year ended 30 June 2011 £'000 Year ended 30 June 2010 £'000

Bank Interest Other loans Finance leases and hire purchase contracts

1 111 10 162 12 175

122

14

-----------

-

--

LEEDS CITY HOLDINGS LIMITED NOTES TO THE GROUP FINANCIAL STATEMENTS
6 Employees The average monthly number of persons (including executive directors) employed by the group dunng the penod was
Year ended 30 June 2011 Year ended 30 June 2010

No
Full-time plaYing staff Apprentices Football team management Management/administration 38 12 15 142 207 In addition to the above employees, employees on match days the group employs approximately 662 (2010

No
32 13 13 126 184

710) casual part-time

Employee costs (Including directors' emoluments)

Incurred dUring the year were
Year ended 30 June 2011 £'000 Year ended 30 June 2010 £'000

Wages and salaries Social security Other pension costs costs

15,281 1,571 108 16,960

12,433 1,193 95 13,721

Directors' emoluments In the year were £299,237 (2010 £174,087) and benefits paid to directors were £11,186 (2010 £11,986) K W Bates did not receive any emoluments or benefits dunnq the current or previous year Pension payments of £24,327 (2010 £16,600) were made on behalf of the directors One director accrued retirement benefits under a money purchase scheme 7 Taxation on profit on ordinary activibes
Year ended 30-June 2011 £'000 Year ended 30 June 2010 £'000

Current

penod

tax tax charge for the penod

UK Corporation

Deferred

Taxabon 2,645 2,645

Onqmation and reversal of timing differences

The standard rate of tax for the penod, based on the UK standard rate of corporation tax IS 26% (2010 28%) The actual tax charge for the current penod IS less than the standard rate for the reasons set out In the follOWing reconcmanon
Year ended 30 June 2011 £'000 Year ended 30 June 2010 £'000

Profit/(Ioss}

on ordinary

activities

before tax 28%)

343 89 (6) 29 11

1,517 425 (1)

Tax on profitlOoss) on ordinary actJvllles at standard rate of 26% (2010 Capital allowances
In excess of depreciation

Deprecration In excess of capital allowances Ineligible depreciation Other short term liming differences Expenses not deductible for corporation Tax losses (utillsed)/camed forward tax purposes

8
121 252 (805)

199 (322)

Total actual amount of current tax

15

LEEDS CITY HOLDINGS LIMITED NOTES TO THE GROUP FINANCIAL
8 Intangible fixed assets

STATEMENTS

Carnage

Player reglstratlons £'000 GoodWlIl £'000 Total £'000

Trademarks
Group £'000

licence £'000

Cost or valuation At 1 July 2010 Additions Disposals At 30 June 2011 Depreciation At 1 July 2010 Charge for the penod Disposals At 30 June 2011 Net book value At 30 June 2011 At 30 June 2010 9 10 247 297 1,523 1,428 6,778 6,971 8,557 8,706 1 150 100 50 1,822 1,104 (1,112) 1,814 677 484 193 2,406 1,348 (1,112) 2,642 10 397 10 397 3,250 1,665 (1,578) 3,337 7,455 7,455 11,112 1,665 (1,578) 11,199

9 Tangible fixed assets
Assets under the course Leasehold land and BUlldmgs Alterabons and FJXtures and fittlngs Total

of construction

Improvements

Group

£'000

£000

£'000

£'000

£'000

Cost or valuation At 1 July 2010 Additions Disposals At 30 June 2011
Depreciation

824 1,901 2,725

847 94 941 36 71 107

3,180 1,645 4,825 1,014 511 1,525 3,300 2,166

1,432 1,243 2,675 699 564 1,263 1,412 733

6,283 4,883 11,166 1,749 1,146 2,895 8,271 4,534

At 1 July 2010 Charge for the penod Disposals At 30 June 2011 Net book value At 30 June 2011 At 30 June 2010 2,125 824

834 811

Included In the total net book value fixtures and fittings are the following amounts In respect of assets held under finance leases and hire purchase contracts
FIXtures and fitlmgs £'000

Cost Accumulated depreciation Net Book value 30 June 2011 Net Book value 30 June 2010 The depreciation charge In respect of these assets was £25,000 (2010 £71,236)

153 (50) 103 166

16

LEEDS CITY HOLDINGS LIMITED NOTES TO THE GROUP FINANCIAL STATEMENTS

10 Fixed asset Investments
Investment Shares Company Loans SubsidIary undertakings
In

£'000

£'000

£'000

Cost and net book value at 1 July 2010 Transfer Net book value at 30 June 2011 A transfer was made from amounts due from group undertakings reflects the current nature of the balance Details of the Subsidiary undertakings

975 1,178

975 1,178 2,153

975

1,178

to fixed asset Investments as this more accurately

at 30 June 2011 were as follows
Place of Incorporatlon Proportion Class of shares of Issued

Name of undertaking

Pnnopal

actiVIty

and regIstratIOn

shares held

Leeds Umted Football Club Limited Yorkslure Radio Limited Leeds Umted Investments Leeds Umted 2007 Limited Leeds City Limited Leeds First Limited Yorkshire First Limited Leeds Umted Media trrnrted Leeds Umted Centenary 11 Stock Pavihon Limited limited

Football Club Radro broadcast Dormant Dormant Dormant Dormant Dormant Digital media Conferencmg

England England England England England England England England England

Ordinary Ordinary Ordmary Ordmary Ordinary Ordinary Ordinary Ordmary Ordinary

100% 95% 100% 100% 100% 100% 100% 100% 100%

Group 2011 £'000 2010 £'000

Company

2011 £'000

2010 £'000

Goods held for resale 12 Debtors

836

716

Group 2011 £'000 2010

Company

E'ooO
767 25

2011 £'000

2010 £'000

Trade debtors Transfer fee debtors Amounts due from related companies Other debtors Prepayments and accrued Income Deferred tax asset Total Debtor due after more than one year Bonds Transfer fee debtor Deferred tax asset

1,814 988 1,223 1,541 628 6,194

1,471 1,417 1,434

3,643

1,471

20
50 2,017 2,067 33 13

tax asset of £9m (2010

A deferred tax asset of £2,645,000 (2010 £011) ansmg from losses has been recogmsed In the year A further deferred £129m) has not been recogmsed The amount recogmsed IS based on an estimate of reasonably foreseeable future profits for the next four years mcludmg profits from player tradmg

17

LEEDS CITY HOLDINGS UMITED NOTES TO THE GROUP FINANCIAL-STATEMENTS
13 Creditors. amounts failing due within one year
Group 2011 £'000 2010 £'000 Company 2011 2010 £'000 £'000

Obligations under finance leases Trade creditors Other taxation and sooat secunty costs Transfer fee creditors Other loans Other creditors Accruals and deferred Income

57 3,762 677 569 975 785 6,825 8,982 15,807

42 1,593 1,585 202 1,561 457 3,879 8,041 11,920 1,561 -226 1,561 226 _226

Of the £8 982m accruals and deferred Income £8 071m represents prepayment of tickets and sponsorship that would only become a liability of the group should It fall to fulfil all of rts fixtures for the 2011/12 season £557,000 (2010 £1,471,527) of other creditors are secured via a fixed and floating charge over the assets- and securities of Leeds City Holdings LImited The-loan IS repayable Immediately as funds become available, whICh, In the opinion of the directors, Willbe In more than one year's time 14 Creditors amounts falling due after more than one year
Group 2011 £'000 2010 £'000

Company
2011 £'000 2010 £'ODD

Obligations under finance leases Transfer fee creditors Other creditors Pension (note 17) Accruals and deferred Income

92 133 135 600 960

81 91 1,471 172 800 2,615 1,471

14 Creditors

amounts falling due after more than one year (contInued)
Group 2011 £'000 2010 £'000 2011 £'000 Company 2010 £'000

Borrowings are repayable as follows

Finance leases Within one year Between one and two years Between two and five years 57 57 35 149 Other loans Within one year 975 975 Total borrOWings Wlthm one year Between one and two years Between two and five years 1,032 57 35 1,124 Obhgabons under finance leases at 30 June 2011 were secured on the related assets 42 -42 39 123 1,561 1,561 1,561 42 42 39 123

18

LEEDS CITY HOLDINGS LIMITED NOTES TO THE GROUP FINANCIAL STATEMENTS
15 Called up share capital
2011 £'000 2010 £'000

Allotted, called up and fully paid 140,000,000 £0 01 ordinary shares Share premium 1,400 1,600 3,000 16 ReconCiliation of movement in shareholders' funds Share capital Group At 1 July 2010 Profit for the penod At 30 June 2011 1,400 1,600
£'000

1,400 1,600 3,000

Share premIum
£'000

Profit nd a lossaccount
£'000

Shareholders'
funds

£'000

1,400

1,600

3,767 2,988 6,755

6,767 2,988 9,755

Share capital Company At 1 July 2010 Loss for the penod At 30 June 2011 1,400
£'000

Share Premium
£'000

Profit nd a lossaccount
£'000

Shareholders' Funds
£'000

1,400

1,600

(2,251) (157)

749 (157) 592

1,600

(2,408)

17 Pensions Defined contribution schemes Certain professional footballing staff of the group are members of the Football League Limited Players Retirement Income Scheme, a non-contnbutory defined contribution scheme In addition the group operates a defined contnbution scheme open to all other employees The costs of all defined contnbuncn schemes are charged to the profit and loss account In the penod In which they accrue Defined benefit scheme Certain professronat footbailing staff are members of the Football League limited Pension and Life Assurance Scheme ("FLLPLAS·), a defined benefit scheme Under FRS 17 Retirement Benefits, the FLLPLAS would be treated as a defined benefit multi-employer scheme The assets of the scheme are held separately from those of the group, being rnvested With Insurance compames Followmq a review of the Mlntmum Funding Requirement ("MFR") of the FLLPLAS. accrual of benefits of the final salary secbon of the scheme was suspended as at 31 August 1999 In the light of the exceptional Circumstances affecting the scheme, the trustees of the scheme commissioned an rndependent actuary's report on the MFR position and a substantial deflcrt was Identified Under the Pensions Act 1985 partlclpatmg employers Will be requrred to contnbute to the deficiency The latest actuanal valuation of the scheme was eamed out as at 31 August 2008 The allocation of the defiCitunder this valuation notified to Leeds United AFC Limited and repayable by Leeds United Football Club Limited 1$ fully provided for In the accounts and IS bemg repaid at £3,087 per month

19

·

.

LEEDS CITY HOLDINGS LIMITED NOTES TO THE GROUP FINANCIAL

STATEMENTS

18 Operatmg

lease commitments to making the following payments dUring the next penod
In

At 30 June 2011 the group was committed operating leases

respect of

Plant & equipment Lease expires Wlthm one year Withm one to two years Wlthm two to five years After five years
,

Other premises
2011 £'000 2010 £'000

Motor vehicles
2011 £'000 2010 £'000

2011 £'000

2010 £'000

4
141 7 30 1,831 1,835 1,835 141 119 1,861 119

.

11
19 Capital commitments At 30 June 2011 the group had capital cornmnrnents totallmg £6,497,095

(2010

£1,758,816)

20 Contmgent habilrties In the event of the club becoming a member of the FA Premier League before the 2017118 Season then a hability of £4,750,000 (2010 £4,750,000) Will become payable to the hqurdator of Leeds United Assocration Football Club Lmuted (the) under the provrsions of the sale agreement entered mto on the 4111 May 2007 Under the terms of the flnancial provrsions relating to transfer of players regIstrations then future payments of up to £875,000 (20i0 £1,500,000) may be payable dependent on the clubs promotion to the FA Premier League andJ or players appearances for Leeds United Football Club 21 Analysis of net debt
At 1 Group

July

2010 £'000

Cashflow
£'000

IncepUonof finance leases
£'000

At JO

June
2011 £'000

Cash at bank and In hand Debt due wrthm one year Debt due after one year Fmance leases

3,670

(3,070) (975)

600 (975) (149) (524)

(123)

51

(77) (77)

3,547
22 Ultimate controlling party The directors consider that the ultimate controlling Outro Limited, a company registered In NeVIS

(3,994)

shareholder

IS Mr K W Bates by virtue of hrs 100% shareholdmq

In

23 Related party transactions Included In other loans (note 13) IS a sum of £975,000 due to Outro Limited, a related party by virtue of ItS connection with Mr K W Bates Tlus was repaid after the year end The company has taken advantage of the exemptions In FRS 8 from drsclosmq transactions With entrties Within the leeds City Holdrngs l.irruted group of comparues Dunng the year, the company advanced £93,021 to Yorkshire RadIO Limned The year-end balance owed to leeds City Holdmgs Lirmted anslng from the above transaction IS £2,075,711 (2010 £1,980,516) 24 Profit attributable to members of the parent company The loss dealt WIth In the financial statements ofthe parent company was £157,000 25 Post balance sheet event Leeds Unrted Football Club Luruted entered Into an agreement 2013114 season for a sum of £5,000,000 after the year end

(2010 £636,000)

whereby

It sold season tickets for both the 2012113 and

20