leeds city holdings accounts, year ended june 2010

8/6/2019 Leeds City Holdings Accounts, Year ended June 2010

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Company registration no. 05765697

LEEDS CITY HOLDINGS LIMITED

Report and Financial Statements

Year ended 30 June 2010

r l l / l m I ' ~ r f l " f i l i i "AHBSF1WY·

A51 06/05/2011 63

COMPANIES HOUSE




REPORT AND FINANCIAL STATEMENTS 2010

CONTENTS

Page

Officers and professional advisers 2

Directors' report 3

Statement of directors' responsibilities 5

Auditor's report 6

Consolidated profit and loss account 7

Company balance Sheet 8

Consolidated balance sheet 9

Consolidated cash flow statement 10

Reconciliation of net cash flow to movement in

net funds 11

Reconciliation of operating loss to cash flow

from operating activities 11

Notes to the financial statements 12

1



-~--LEEDS CITY HOLDINGS LIMITED

REPORT AND FINANCIAL STATEMENTS 2010

OFFICERS AND PROFESSIONAL ADVISERS

Directors

KW BatesS A HarveyY SAlien

Secretary

SA Harvey

Registered office

Eiland RoadLeedsWest YorkshireLS110ES

Bankers

Bank of Ireland

15-16 Park RowLeedsLS15HD

Solicitors

McCorrmcks Solicitors

37 East ParadeHarrogateHG15LQ

Walker Morns

Kmgs Court12 King StreetLeeds

LS12HL

Auditors

Baker TJllyUK Audit LLPRegistered AuditorChartered Accountants2 Whitehall Quay

LeedsLS14HG

2




DIRECTORS'REPORT

The directors present their report and the audited financral statements for the year ended 30 June 2010

Principal activitiesThe principal activrty of the company dunnq the year was that of a holding company of Leeds United Football ClubLimited and Ycrkshire RadIOLImited

Review of business activities

As the holding company of the group, the Directors WIll manage the trading affairs of the various subsidiary compameson behalf of the Shareholders The Shareholders are comfortable that the debts owed by the group should be managedand mamtamed In this company

Future Developments

Off the field, the enhancement of the faohnes at Eiland Road remains the Priority of the DIrectors along with providmqsupport to the media operations to ensure the group are best placed to take advantage of available media rights Inthefuture

On the field, continued financial support Willbe made available to the Manager to strengthen the team as required

Results and drvrdends

The group profit for the year after taxation was £1,517,000 (2009 £1,375,000 loss) The directors do not recommendthe payment of a divrdend

Directors and their InterestsDirectors serving the company dunng the year and since the year end were as follows

KW BatesR MTaylor (Resiqned 13th May2010)S A Harvey

Y S Allen (Appointed 13th May 2010)

financial Instruments

Cash flows are closely monitored on a dally basis Frnancial risks are kept to a minimum wherever possible Thegroup's financial Instruments comprise borrowings, cash and hquid resources, finance leases and various other Itemssuch as trade debtors and trade creditors that anse directly from ItSoperations The group does not engage Intrades at

a speculative nature and has no foreign currency exposure The group monitors ItS cash flow throughout the year andreviews ItSoverall financial requirements on an annual baSIS

Key perfonnance indicators

The performance of the team IS monitored by publicly available League POSition tables In addition to tlus, the:commercial operations of all group companies are rnorutored agamst detailed budgets and benchmarking exercises areundertaken to assess the group's performance Within the relevant sector The £3 998m rise In group turnover from£23 535m to £27 533m represents an Increase of 16 9% and Leeds United Football Club Limited rnamtamed Its positionas haVingachieved the hiqhest home attendance In League One

Employee involvement

The group's employment pohcies are desiqned to attract, retain and motivate the best people The group Involvesemployees at all levels of the orqarusanon through a broad base of regular commorucatron meetings and bnefingsessions to understand current performance and communicate future developments

Disabled employeesApplications for employment by disabled persons are always fully considered In the event of members of staffbecoming disabled, every opporturuty IS made to ensure their employment WIth the group continues and that

appropriate training IS arranged It ISthe pohcy of the group that the training, career development and promotion ofdisabled 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-appointed under Section 487(2) of theCompanies Act 2006

3




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 areaware, 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 themselvesaware of any relevant audit Information and to estabhsh that It has been communicated to the auditor

SA HarveyDirector28th February 2011

4




DIRECTORS' RESPONSIBILITIES IN THE PREPARATION

OF FINANCIAL STATEMENTS

The directors are responsible for prepanng the Directors' Report and the financial statements In accordance withapplicable law and regulations

Company law requires the directors to prepare financial statements for each financial year Under that law the directorshave elected to prepare the financial statements In accordance With Umted Kingdom Generally Accepted AccountingPractice (United Kingdom Accountmg Standards and applicable law)

Under company law the directors must not approve the financial statements unless they are satisfied that they give atrue and fair view of the state of affairs of the group and the company and of the profit or loss of the group for thatpenod

In prepanng those flnancial statements, the directors are required to

a select suitable accounting pohcies and then apply them consistently,

b make Judgements and accounting estimates that are reasonable and prudent,

c prepare the financial statements on the gOing concem baSISunless [t [S mappropnate to presume that the

grotlp and the company Willcontmue m business

The directors are responsible for keeping adequate accounting records that are sufficrent to show and explain thegroup's and the company's transactions and disclose With reasonable accuracy at any time the financial posrtton of thegroup and the company and enable them to ensure that the financial statements comply Withthe Compames Act 2006They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonablesteps for the prevention and detection of fraud and other urequlantres

5




INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LEEDS CITYHOLDINGS LIMITED

We have audited the group and parent company financial statements (the "financial statements") on pages 7 to 20The financial reporting framework that has been applied In their preparation IS applicable law and United KingdomAccounting Standards (Umted Kingdom Generally Accepted Accounting Practice)

This report IS made solely to the company's members, as a body, In accordance with Chapter 3 of Part 16 of theCompanies Act 2006 Our audit work has been undertaken so that we might state to the company's members thosematters we are required to state to them In an auditor's report and for no other purpose To the fullest extent permittedby law, we do not accept or assume responsibili ty to anyone other than the company and the company's members as abody, for our audit work, for this report, or for the opmrons we have formed

Respective responsibilities of directors and auditors

As more fully explained In the Directors' Responsibil ities Statement on page 4, the directors are responsible for thepreparation of the financial statements and for being satisfied that they give a true and fair view Our responsibil ity IS toaudit and express an opinion on the financial statements In accordance Withapplicable law and International Standardson Auditing (UK and Ireland) Those standards require us to comply Withthe Auditing Practices Board's (APB's) EthicalStandards for Auditors

Scope of the audit

A description of the scope of an audit of financial statements IS provided on the APB's website at

www frc org uklapb/scope/UKNP

Opinion on the financial statementsIn our opiruon the financral statements

• give a true and fair view of the state of the group's and parent company's affairs as at 30 June 2010 and of thegroup's profit for the year then ended,

• have been properly prepared Inaccordance With United Kingdom Generally Accepted Accounting Practice, and

• have been prepared In accordance Withthe requirements of the Companies Act 2006

Opuuon on other matters prescribed by the Companies Act 2006

In our opmion the information given In the Directors' Report for the financial year for which the flnancral statements areprepared ISconsistent Withthe financral statements

Matters on which we are required to report by exceptionWe have nothing to report In respect of the follOWingmatters where the Compames Act 2006 requires us to report toyou [f, m our opinion

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit havenot been received from branches not VISitedby us, or

• the parent company financial statements are not m agreement Withthe accounting records and returns, or

• certain disclosures of directors' remuneration specified by law are not made, or

• we have not received all the mforrnanon and explanations we require for our audit

Anthony Elston (Semor Statutory Auditor)For and on behalf of BAKER TILLY UK AUDIT LLP, Statutory AuditorChartered Accountants

2 Whitehall QuayLeedsLS14HG

zs" February 2011

6




CONSOLIDATED PROFIT AND LOSS ACCOUNT

Year ended 30 June 2010

Operations

excluding Year ended Year ended

player tradmg Player trad ing 30 June 2010 30 June 2009Note £'000 £'000 £'000 £'000

Turnover 2 27,533 27,533 23,535

Cost of sales (5,883) (5,883) (4,930)

Gross profit 21,650 21,650 18,605

Administrative expenses (22,789) (990) (23,779) (22,679)

Operating loss 3 (1,139) (990) (2,129) (4,074)

Profit on player trading 3,818 3,818 2,911

Profit/{Ioss) on ordinary activities before interest (1,139) 2,828 - 1,689 (1,163)

Other Interest receivable and similar Income 4 3 3 19

Interest payable and similar charges 5 (175) (175) (231)

Profit/(Ioss) on ordinary activities before taxation (1,311) 2,828 1,517 (1,375)

Taxation on profit on ordinary acnvmes 7

Profit/(Ioss) for the financial year 17 (1,311) 2,828 1,517 (1,375)

The results for both periods relate to cont inuing operations

There are no recognised gains and losses for either penod other than as stated In the profit and loss account

Accordingly, no statement of total recognised gams and losses has been presented

7




COMPANY BALANCE SHEET Companyregistratron no 05765697

30 June 2010

Current assets

Debtors 12

2010 2009

£'000 £'000

975 975

975 975

1,471 997

1,471 997

(226) (259)

1,245 738

2,220 1,713

(1,471) (328)

749 1,385

Fixed assets

Investments 10

Creditors: amounts failing duewithin one year 13

Net current assets

Total assets

Creditors: amounts failing dueafter more than one

year 14

Net assets

Capital and reserves

Calledup share capital

Share Premium

Profit andlossaccount

16

16

17

1,400

1,600

(2,251)

1,400

1,600

(1,615)

Equity shareholders' funds 17 749 1,385

The financial statementson pages 7 to 20 were approved by the board of directors and authonsed for Issueon 281 t1

February2011 and signedon Its behalf by

~

~SA Harvey

Director

8




CONSOLIDATED BALANCE SHEET Company registration no 05765697

30 June 2010

2010 2009

£'000 £'000

8,706 9,022

4,534 3,813

13,240 12,835

716 553

3,643 2,734

33 931

3,670- 390

8,062 4,608

(11,920) (10,495)

(3,858) (5,887)

9,382 6,948

(2,615) (1,698)

6.767 5,250

Fixed assets

IntangIble assets

Tangible assets

8

9

Current assets

Stock

Debtors

Debtors due after more than one year

Cash at bank end Inhand

11

12

12

Creditors amounts failing due within one year 13

Netcurrent liabilities

Total assets less current liabilities

Creditors amounts failing due after more than one

year 14

Netassets

Capital and reserves

Called up share capital

SharePremium

Profit and loss account

16

16

17

1,400

1,600

3,767

1.400

1,600

2,250

Equity shareholders' funds 17 6,767 5,250

The flnancial statements on pages 7 to 20 were approved by the board of directors and authonsed for Issue on 28h

February 2011 and signed on Its behalf by

S A Harvey

Director

9




NOTES TO THE GROUP FINANCIAL STATEMENTS

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

Year ended Year ended

30 June 2010 30 June 2009

£'000 £'000

IncreaseJ(decrease) In cash In the penod 3,280 (70D)

Cash Inflow from debt and lease financmq 64 110

Movement In net debt Inthe penod 3,344 (590)

New finance leases (176)

Opening net funds 379 969

Closing net funds 3,547 379

RECONCILIATION OF OPERATING LOSS TO CASH FLOW FROM OPERATING

ACTIVITES

Year ended Vearended

30 June 2010 30 June 2009

£'000 £'000

Operating loss (2,129) (4,074)

Depreciation of tangible fixed assets 754 614

Arnornsanon of Intangible fixed assets 1,229 1,533

Loss on sale of fixed tangible assets 40

Increase In stock (163) (193)

(Increase)/decrease In debtors (11) 1,123

Increase In creditors 2,230 753

Net mflow/(outflow) from operating activrtres 1,950 (244)

11



LEEDS CITY HOLDINGS LIMITEDNOTES TO THE GROUP FINANCIAL STATEMENTS

1 Principal accounting policies

The financial statements are prepared In accordance with applicable United Kingdom accounting standards The

pnnopal accounting pohcies adopted by the directors are set out below

Basts of preparation

Detailed forecasts have been prepared, indicating that the group Will have sutficrent resources to meet debts as they fall

due dunng the next year As a result, the directors consider that It ISappropriate to prepare the accounts on the gomg

concern baSIS

No profit and loss account for the company has been presented for Leeds City Holdings Limited as permitted by Section

408 of the Companies Act 2006

BaSIS of accountmg

The financral statements are prepared In accordance With the hrstoncal cost convention

BaSIS of consolidation

The consolidated financial statements Incorporate the financral statements of the company and all Its subsidiary

undertakmgs Intra-group trading ISeliminated on consolidation

Turnover

Tumover represents all Income arising from the ordinary acnvines of the group excludmg transfer fees and value added

tax

Intangible fixed assets - Player Registrations

In line With FRS 10 Goodwill and Intangible Assets, the costs associated With the acqursition of players' registrations are

capitalised as mtanqible fixed assets and amortised, In equal annual Instalments, over the period of the respective

players' contracts The transfer fee levy refund received dunnq the penod 15 credited against additions to intangible

assets Players' registrations are written down for Impairment when the carrying amount exceeds the amount

recoverable through use or sale

Intangible fixed assets - Carnage agreement

In line With FRS 10 Accounting for GoodWill and Intangible Assets, the costs associated With the carnage agreement

are capitalised as intangible fixed assets and amortised, In equal annual Instalments, over the penod of the contract

which expires In 2016

Intangible fixed assets - GoodWill

Goodwnl IS bemg amortised In equal Instalments over 50 years based on the longeVity of the club and the strength of

the brand

Intangible fixed assets - Trademarks

Trademarks are being amortised Inequal Instalments over 10 years

Tangible fixed assets

Depreciation IScalculated to write off the cost, or revalued amount of tangible fixed assets, less their estimated residual

values, on a straiqht line baSIS over the expected useful economic life of the asset concemed, as follows

Assets under the course of construction and

Leasehold land and buildmqs

Fixtures and fittings

Alterations and Improvements

0- 22 years

1 - 10 years

2 - 10 years

Fixed asset mvestments

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

Slgmng-on fees

SI9n1ng-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 penod In which the payment ISmade, except In the circumstances of a player disposal In

that case, any remaining signing-on fees due are allocated In full against profit on disposal of players' registrations In

the penod In which the player disposal ISmade

Stocks

Stocks, which compose 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 capitalised 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

12





Deferred taxation

Deferred tax ISprovided In full on timing differences which result In an obligation at the balance sheet date to pay moretax, or a nght to pay less tax, at a future date, at rates expected to apply when they crystallise based on current taxrates and law Timing differences anse from the Inclusion of Items of Income and expenditure In tax computations Inpenods different from those Inwhich they are Included In financial statements Deferred tax ISnot provided on timingdifferences ansmq from the revaluation of fixed assets where there ISno commitment to sell the asset, or on unremittedearnings of subsidianes and associates where there ISno commitment to remit these earnings Deferred tax assets are

recognised to the extent that It ISregarded as more likely than not that they will be recovered Deferred tax assets andliabilities are not discounted

Pension costsFor defined contribution schemes the pension cost charged In the penod represents contnbutions payable by the groupto vanous pension schemes For defined benefit schemes the expected cost of providing pensions, as calculatedpenodicatly by protessionany qualified actuanes, IScharged to the profit and loss account so as to spread the cost overthe service lives of employees In such a way that the pension cost ISa substantially level percentage of current andexpected future pensionable payroll

2 TurnoverYear ended Year ended

30 June 2010 30 June 2009

£'000 £'000

Gate receipts 11,732 8,966

Television and broadcasting Income 802 169

Merchandising Income 5,509 4,918

Central distributions 757 492

Other commercial revenue 8,733 8,990

27,533 23,535

All turnover relates to the prmcipal actiVity of operating a professronal football club and anses from continuing activmesWithin the UK

3 Operatmg loss

Operating loss ISstated after charging


30 June 2010 30 June 2009

£'000 £'000

990 1,295

189 188

50 50

683 568

71 46

2

Amortisation

Amortisation of player reqistrauon costs

Amortisation of goodWill

Amortisation of carnage agreement

Deprecratron of tangible fixed assets

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 LLP

- The auditing of accounts of associates of the company pursuant to legislation

Audit of subsidranes

- Other services relating to taxation

Compliance services

AdVISOryservices

Operating lease charges

Land and bUildings

Plant and machinery

Motor vehicles

50 41

6

3

3

13

1,756

16

107

1,732

32

107




4 Other Interest receivable and similar income


30 June 2010 30 Juno 2009

£'000 £'000

Bank Interest 3 19

3 19

5 Interest payable and similar charges

Yeafended

3DJune 2010

£'000

Year ended

3DJune 2009

£'000

Bank Interest 1

Other loans 162 205

Finance leases and hire purchase contracts 12 26- - - - - - - - - - - - - - - - ~ . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

175 231

6 Employees

fhe average monthly number of persons (Including executive directors) employed by the group dunnq the penod was


30 June 2010 30 June 2009

No No

FUll-time plaYing staff 32 25

Apprentices 13 14

Football team management 13 12

Manaqement/adrrurustratron 126 138

184 189

ill addition to the above employees, on match days the group employs approximately 710 (2009 570) casual part-time

»rnployees

Employee costs (including directors' emoluments) Incurred dunng the year were


30 June 2010 30June 2009

£'000 £'000

Wages and salar ies 12,433 11,103

Social security costs 1,193 1,086

Other pension costs 95 92

13,721 12,281

Directors' emoluments In the year were £174,087 (2009 £150,000) and benefits paid to directors were £11,986 (2009

£13,170) K W Bates did not receive any emoluments or benefits dunng the current or previous year Pension

payments of £16,600 (2009 £14,000) were made on behalf of the directors One director accrued retirement benefits

under a money purchase scheme

1axation on profit on ordinary actrvrtres

Year ended

30 June 2010

£'000

Year ended

30 June 2009

£'000

Current penod tax

UK Corporatron tax charge for the penod

14




7 Taxation on profit on ordinary activities (continued)

Deferred Taxation

Onqmation and reversal of timing dif ferences

The standard rate of tax for the penod, based on the UK standard rate of corporation tax IS 28% (2009 28%) The

actual tax charge for the current penod IS less than the standard rate for the reasons set out In the following

reconcrhauon

Yearended Yearended

30 June 2010 30 June 2009

£'000 £'000

Profit/(Ioss) on ordinary acuvrues before tax 1,517 (1,375)

Tax on profit/(Ioss) on ordinary activities at standard rate of 28% 425 (385)

Capital allowances Inexcess of deprecration (1)

Deprecrauon In excess of capital al lowances 8 2

Ineligible deprecranon 121 114

Other short term timing differences (23)

Expenses not deduct ible for corporation tax purposes 252 44

Tax losses (utlhsed)/carned forward (805) 248

Total actual amount of current tax

8 Intangible fixed assets

Carnage Player

Trademarks Licence re g istranons GoodWill Total

Group £000 £000 £'000 £'000 £'000

Cost or valuationAt 1 July 2009 397 3,688 7,205 11,290

Addrncns 10 786 250 1,046

Disposals (1,224) (1,224)

At 30 June 2010 10 397 3,250 7,455 11,112

DepreCiation

At 1 July 2009 50 1,923 295 2,268

Charge for the penod 50 990 189 1,229

Disposals (1,091 ) (1 ,091)

At 30 June 2010 100 1,822 484 2,406

Net book value

At 30 June 2010 10 297 1,428 - - 6,971 8,706

At 30 June 2009 347 1,765 6,910 9,022

15





9 Tangible fixed assets

Assetsunderthecourse Alterationsand Fixtures

of construction Improvements andfittings Total

andleaseholdandand

buildings

Group £'000 £'000 £'000 £'000

Cost or valuat ion

At 1 July 2009 752 3,133 931 4,816

Additions 919 93 503 1,515

Disposals (46) (2) (48)

At 30 June 2010 1,671 3,180 1,432 6,283

DepreCiatIOn

At 1 July 2009 34 629 340 1,003

Charge for the penod 2 393 359 754

Disposals (8) (8)

At 30 June 2010 36 1,014 699 1,749

Net book valueAt 30 June 2010 1,635 2,166 733 4,534

At 30 June 2009 718 2,504 591 3,813

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

Fixturesandfittings

£'000

Cost

Accumulated deprecation

329

(163)

Net Book value 30 June 2010 166

Net Book value 30 June 2009 130

The depreciation charge In respect of these assets was £71,236 (2009 £46,000)

10 Fixed asset Investments

Details of the subsidiary undertakings at 30 June 2010 were as follows

InvestmentIn

Company

Subsidiaryundertakings

£000

Net book value at 1 J uly 2009 975

Net book value at 30 June 2010 975

Yorkshire First Limited Dormant

Placeof

incorporation Proportionof Issued

and registration Classof shares sharesheld

England Ordinary 100%









16

Nameof undertakmg Pnncipalactivity

Leeds United Football Club Limited Football Club

Yorkshire Radio Limited Radio broadcast

Leeds Uruted Investments Limited Dormant

Leeds Uruted 2007 Limited Dormant

Leeds City Limited Dormant

Leeds First Limited Dormant

Leeds Uruted Media limited Dormant

Leeds Uruted Centenary Pavilion Limited Dormant




10 Fixed asset investments (continued)

On 22 September 2009 the company acquired 1 £1 ordinary of Leeds United Media Limited On 29 June 2010 thecompany acquired 1 £1 ordinary share of Leeds United Centenary Pavihon Limited

11 StockGroup

2010 2009

£'000 £'000

Company

2010 2009

£'000 £'000

Goods held for resale 716 553

12 DebtorsGroup Company

2010 2009 2010 2009

£'000 £'000 £'000 £'000

Trade debtors 767 774

Transfer fee debtors 25 17

Amounts due from related companies 1,471 997Other debtors 1,417 595

Prepayments and accrued Income 1,434 1,348

Total 3,643 2,734 1,471 997

Debtor due after more than one year

Bonds 20 931

Transfer fee debtor 13

33 931

13 Creditors amounts failing due Within one yearGroup

2010 2009

£'000 £'000

Obligations under finance leases 42 11

Trade creditors 1,593 2,624

Other taxation and SOCIalsecunty costs 1,585 846

Transfer fee creditors 202 241

Other creditors 457 163

3,879 3,885

Accruals and deferred Income 8,041 6,610

11,920 10,495

Company

2010 2009

£'000 £'000

226

226

259

226 259

Of the £8 041m accruals and deferred Income £6 848m represents prepayment of tickets and sponsorship that wouldonly become a liabili ty of the group should It fall to fulfi l all of ItSfixtures for the 2010/11 season

14 Creditors, amounts falling due after more than one yearGroup

2010 2009

£'000 £'000

Obligations under finance leases 81

Transfer fee creditors 91 24

Other creditors 1,471 1,465

Pension (note 18) 172 209

Accruals and deferred Income 8002,615 1,698

Company

2010 2009

£'000 £'000

1,471 328

1,471 328

17





14 Creditors' amounts failing due after more than one year (contmued)

Borrowings are repayable as followsGroup Company

2010 2009 2010 2009

£'000 £'000 £'000 £'000

Fmance leases

Within one year 42 11

Between one and two years 42

Between two and five years 39

123 11

Total borrowings

Within one year 42 11

Between one and two years 42

Between two and five years 39

123 11

Obhqatrons under finance leases at 30 June 2010 were secured on the related assets

£1,471,527 of other creditors are secured via a fixed and floating charge over the assets and secunties of Leeds CityHoldings Limited The loan ISrepayable Immediately as funds become available, whrch, In the opinion of the directors,will be In more than one year's time

15 Provisions for liabilit ies and charges

Deferred tax

The company has not recogmsed a deferred tax asset on these losses as the availability of suitable profits againstwhich these may be utilised cannot be predicted With sufficient certainty The net deferred tax asset unprovided IS

approximately £13 5 mllhon(2009 £148 million) at the standard rate of corporation tax

16 Called up share capital2010 2009

£'000 £'000

Authorised

200,000,000 ordinary shares of 1peach 2,000 2,000

Allotted, called up and fully paid £ £

140,000,000 £0 01 ordinary shares 1,400 1,400

Share premium 1,600 1,600

3,000 3,000

17 ReconcIliation of movement in shareholders' funds

Share Share Profit and Shareholders'

capital premium loss account funds

Group £'000 £'000 £'000 £'000

At 1 July 2009 1,400 1,600 2,250 5,250

Profit for the penod 1,517 1,517

At 30 June 2010 1,400 1,600 3,767 6.767

18





17 Reconclliabon of movement In shareholders' funds (contmued)

Share Share Profitand Shareholders

capital Premium lossaccount Funds

Company £'000 £'000 £'000 £'000

At 1 July 2009 1,400 1,600 (1,615) 1,385

Loss for the period (636) (636)

At 30 June 2010 1,400 1,600 (2,251) 749

18Pensions

Defined contribution schemes

Certain professional footbailing staff of the group are members of the Football League Limited Players Retirement

Income Scheme, a non-contributory defined contribution scheme In addttron the group operates a defined contnbution

scheme open to all other employees The costs of all defined contnbutron schemes are charged to the profit and loss

account In the penod Inwhich they accrue

Defined benefit scheme

Certain professional footbalhng 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

Invested with Insurance companies

Followmg a review of the MInimum Funding Requirement ("MFR") of the FLLPLAS, accrual of benefits of the final salary

section 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 Independent actuary's report on the MFR position and a

substantial deficit was Identified Under the Pensions Act 1985 participating employers Will be required to contribute to

the deficiency The latest actuarial valuation of the scheme was earned out as at 31 August 2008 The allocation of the

deflcit under this valuation notified to Leeds United AFC Limited and repayable by Leeds United Football Club Limited IS

fully provided for In the accounts and IS being repaid at £3,087 per month

19 Operating lease commitments

At 30 June 2010 the group was committed to making the follOWing payments dunnq the next penod In respect of

operating leases

Plant & equipment Other premises Motor vehicles

2010 2009 2010 2009 2010 2009

Lease expires £'000 £'000 £'000 £'000 £'000 £'000

Within one year 26

Within one to two years 119

Withrn two to five years 109

After five years 1,835 1,729

26 26 1,835 1,729 119 109

20 Capital commrtrnents

At 30 June 2010 the group had capital commitments totalling £1,758,816 (2009 £94,200)

19





21Contingent habihties

In the event of the club becoming a member of the FA Premier League before the 2017/18 Season then a habilityof

£4,750,000 (2009 £5,000,000) WIll become payable to the hqurdator of Leeds Umted Assocratron Football Club l.irmted

(the) under the provisions of the sale agreement entered Into on the 4th May 2007

On 9thApril 2010 a Settlement Agreement WIth the hquidator resulted In a payment of £250,000 being made to the

hqurdator This amount, which has been caprtahsed wuhm goodWIll (note 8) as an addmonal cost of acquisrhon, reduced

the conttngent habihty referred to above

Under the terms of the financial provisions relating to transfer of players regIstrations then future payments of up to

£1,500,000 (2009 £2,000,000) may be payable dependent on the clubs promotion to the FA Premier League andl or

players appearances for the club

22 AnalYSISof net debt

Group

At 1July2009

£'000

Cash flow Inception of

finance leases

£'000 £'000

At 30 June2010

£'000

Cash at bank and In hand

Debt due wnrun one year

Debt due after one year

Finance leases

390 3,280 3,670

(11) 64 (176) (123)

379 3,344 (176) 3,547

23Ultimate controlling party

The directors consider that the ultimate controlling party IS FSF Limited, a company registered In NeVIS

24Related party transactions

Costs for legal services of £481,306 (2009 £331,561) were Incurred by the group With Mark Taytor & Company,

controlled by R M Taylor, a director of Leeds City Holdings Limited

25Profit attnbutable to members of the parent company

The loss dealt With In the financral statements of the parent company was £636,000 (2009 £687,000)

leeds city holdings accounts, year ended june 2010

Documents