EX-99.1 2 a12-20862_3ex99d1.htm EX-99.1

EXHIBIT 99.1

 

GRAPHIC

·   EPS FOR FISCAL 2012 INCREASED 87.5%

·   NET INCOME FOR THE YEAR INCREASED 79.2%

·   EBITDA OUTLOOK FOR FISCAL 2013: INCREASE OF 17% to 20%

 

MANCHESTER, U.K. – 18 September 2012 – Manchester United (NYSE: MANU; the “Company” and “Group”) – one of the most popular and successful sports team in the world - today announced financial results for the fourth quarter and full year ended 30 June 2012.

 

Highlights

 

          Earnings Per Share increased 87.5% to £0.15 and Net Income grew 79.2% to £23m.

          New sponsorship deals since 1 July 2012 include Bwin, Toshiba Medical Systems, Yanmar, Fuji TV, Santander, Shinsei Bank and MBNA.

          A world-record $559m sponsorship deal with General Motors for Chevrolet to be our exclusive shirt sponsor for seven years beginning in our 2014/15 season – an increase of approximately 120% in annual revenues over our existing shirt sponsor Aon

 

           the deal includes $37m to be received for pre-sponsorship support and exposure in fiscal 2013 and 2014.

 

          Commercial revenues grew 13.7% for fiscal 2012 to a record £117.6m due to:

           the innovative DHL training kit deal

           New Media and Mobile up 20.3% to £20.7 million

           continued growth in renewals, additional categories and regional deals.

 

          Broadcasting update

 

 

           Premier League UK live TV rights increased 70% to £1bn a year for 2013/14 to 2015/16.

           UEFA Champions League distributions available to clubs increased 20.7% to €910m a year for 2012/13 to 2014/15.

 

          IPO completed in August raising net primary proceeds of $110.3m (c. £68m) used to reduce our senior secured notes.

 

Commentary

 

Ed Woodward, Executive Vice Chairman commented, ‘We are delighted to announce our first results as a NYSE listed company; fiscal 2012 was the best year ever for Manchester United’s commercial business.  Our world-record $559m shirt sponsorship deal with Chevrolet and the Premier League’s new £1bn a year UK television rights deal (a 70% increase) highlight the outstanding growth prospects for the future.  We also expect a substantial increase in the value of the Premier League’s international television contracts scheduled to be announced later this year.

 

In addition, we continued to strengthen our team by signing world-class players such as Robin van Persie and Shinji Kagawa over the summer.  We also opened a new commercial sales office in Hong Kong (our first outside the UK) to better position ourselves for growth in a region that represents 325 million of our 659 million followers’.

 

Outlook

 

For fiscal 2013, Manchester United expects:

          Revenue to be £350m to £360m.

          Adjusted EBITDA to be £107m to £110m.

 

This assumes the team reaches the quarter-finals of the UEFA Champions League and the domestic cups.

 

1



 

Key Financials (unaudited)

 

£ million

 

Twelve months ended
30 June

 

 

 

Three months ended
30 June

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

Change

 

2012

 

2011

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial revenue

 

117.6

 

103.4

 

13.7%

 

28.1

 

26.7

 

5.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadcasting revenue

 

104.0

 

117.2

 

(11.3%)

 

27.5

 

43.9

 

(37.4%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Matchday revenue

 

98.7

 

110.8

 

(10.9%)

 

18.9

 

29.2

 

(35.3%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

320.3

 

331.4

 

(3.3%)

 

74.5

 

99.8

 

(25.4%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

 

91.6

 

109.7

 

(16.5%)

 

7.0

 

29.0

 

(75.9%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) for the year from continuing operations (i.e. Net Income)

 

23.3

 

13.0

 

79.2%

 

(14.9)

 

(0.4)

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings/(loss) per share**

 

0.15

 

0.08

 

87.5%

 

(0.10)

 

(0.00)

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross debt

 

436.9

 

458.9

 

(4.8%)

 

436.9

 

458.9

 

(4.8%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

70.6

 

150.6

 

(53.1%)

 

70.6

 

150.6

 

(53.1%)

 

 

Our Net Debt/Adjusted EBITDA (Pro-forma for the IPO) as at 30 June 2012 was 3.3x.

 

*Adjusted EBITDA is a non-IFRS measure. We define Adjusted EBITDA as profit/(loss) for the period from continuing operations before net finance costs, tax credit/(expense), depreciation, amortisation of, and profit on disposal of, players’ registrations and exceptional items. We believe Adjusted EBITDA is useful as a measure of comparative operating performance from period to period and among companies as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance, and it removes the effect of our capital structure (primarily interest expense), asset base (primarily depreciation and amortisation) and items outside the control of our management (primarily income taxes and interest income and expense).  Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for an analysis of our results as reported under IFRS as issued by IASB. A reconciliation of Adjusted EBITDA to profit/(loss) for the period from continuing operations is presented in supplemental note 3.

 

**Basic and diluted earnings/(loss) per share is calculated by dividing the profit/(loss) attributable to owners of the Company by the weighted average number of ordinary shares in issue during the year, as adjusted for the reorganisation transactions described in supplemental note 1.

 

 

Sector Results

 

Commercial

Commercial revenue for the year increased 13.7% to £117.6 million driven by the addition of several new global and regional sponsorships including the innovative training kit deal signed with DHL, an increase in profit share pursuant to the arrangement with Nike, and the commencement of new mobile partnerships and increased payments from existing partnerships. For the year:

·                  Sponsorship revenue increased 14.9% to £63.1 million;

·                  Retail, Merchandising, Apparel & Product Licensing revenue increased 8.0% to £33.8 million; and

·                  New Media & Mobile revenue increased 20.3% to £20.7 million.

 

For the fourth quarter, Commercial revenue increased 5.2% to £28.1 million, with:

·                  Sponsorship revenue up 14.4% to £14.3 million,

·                  Retail, Merchandising, Apparel & Product Licensing down 10.4% to £8.6 million, and

·                  New Media & Mobile up 15.5% to £5.2 million.

 

2


 


 

Broadcasting

 

Broadcasting revenues for the year decreased 11.3% to £104.0 million primarily as a result of our elimination at the group stages of the Champions League. For the fourth quarter, revenues decreased 37.4% to £27.5 million as no participation fees were earned compared to Champions League participation fees from the quarter-final, semi-final and final in the fourth quarter of the prior year.  In addition, we earned minimal revenues from the FA Cup following our fourth round exit, compared with reaching the semi-final in the previous year.

 

In June the Premier League has awarded the UK live rights to BSkyB and BT Vision (a new entrant) for £1bn a year (a 70% increase) for seasons 2013/14 to 2015/16.  Since the year end UEFA have announced that the distributions available to clubs from the 2012/13 UEFA Champions League will increase by 20.7% to €910m.

 

Matchday

 

Matchday revenues for the year decreased 10.9% to £98.7 million as a result of having played four fewer home games compared with the prior season when we also received a share of the gate receipts from the Champions League final and FA Cup semi-final, both of which were held at Wembley Stadium. For the fourth quarter, revenues decreased 35.3% to £18.9 million as a result of playing two fewer home games compared with the prior year period and the impact from the previously mentioned gate receipts received in the fourth quarter of 2011.

 

 

Other Financial Information – Full Year

 

 

Operating Expenses

 

Total operating expenses increased 4.6% for the year to £285.1 million, primarily due to an increase in football player and staff compensation as we continue to invest in the team (partially offset by lower success related bonuses compared to the prior year); together with an increase in costs related to additional non-player headcount driven by the continued growth of our commercial operations.

 

Net Finance Costs

 

Net finance costs for the year decreased 3.5% to £49.5 million. The main reasons for this decrease are a £6.4 million decrease in interest payable on bank loans and senior secured notes primarily due to repurchases of senior secured notes (which were subsequently retired as part of the IPO process) and a £16.9 million decrease in interest payable and accelerated amortisation of debt issue costs on the  payment in kind loan repaid in fiscal 2011, partially offset by an adverse FX swing of £21.6 million on the translation of the Group’s U.S. dollar denominated senior secured notes. In fiscal 2012, the Group reported an unrealized FX loss of £5.2 million compared to an unrealized gain of £16.4 million in fiscal 2011.

 

Foreign exchange gains or losses are not a cash charge and could reverse depending on dollar/sterling exchange rate movements.  Any gain or loss on a cumulative basis will not be realised until 2017 (or earlier if our senior secured notes are refinanced or redeemed prior to their stated maturity).  This exposure to FX movements has now been reduced now that the net primary proceeds (of approximately $110.3m) have been used to reduce our USD denominated senior secured notes.

 

Depreciation & Amortisation of Players’ Registrations

 

Depreciation for the year increased 7.1% to £7.5 million; and amortisation of players’ registrations for the year was relatively flat at £38.3 million. Increases in amortisation due to player acquisitions (primarily Phil Jones, David de Gea and Ashley Young) were offset by reductions due to contract extensions (primarily Luis Anderson, Chris Smalling and Antonio Valencia) and departed players (mainly Owen Hargreaves). The unamortised balance of existing players’ registrations at 30 June 2012 was £112.4 million.

 

3



 

Profit on the disposal of Players’ registration

 

Profit on the disposal of players’ registrations for the year was £9.7 million (as compared with £4.5 million the previous year).

 

Exceptional items

 

Exceptional items for the year were for £10.7 million (as compared with £4.7 million the previous year).

 

Income Taxes

 

The tax credit for the year increased £27.0 million to £28.0 million primarily due to the recognition of previously unrecognised tax losses as a deferred tax asset and the continuing release of the deferred tax liabilities.

 

Profit for the year from continuing operations

 

Profit for the year from continuing operations for the year increased 79.2% to £23.3 million primarily as a result of the increase in our tax credit.

 

Cash Flow

 

Cash flow from operating activities for the year decreased 35.8% to £80.3 million primarily due to lower Broadcasting and Matchday revenues, partially offset by increased Commercial revenues.

 

Net capital expenditures on property, plant and equipment and investment property for the year increased £15.4 million to £22.7 million relating mainly to the expansion of the Group’s property portfolio around Old Trafford, upgrades to its corporate hospitality facilities and general developments at Old Trafford, together with the commencement of the redevelopment of the First Team’s training facility at Carrington.

 

Net player capital expenditure for the year increased £38.2 million to £49.6 million relating primarily to the 2011 acquisitions of David de Gea, Phil Jones and Ashley Young partially offset by payments received from various disposals.

 

Net cash used in financing activities for the year was £38.8 million compared to net cash generated from financing activities of £46.6 million in the prior year. In fiscal 2012, the Company repurchased £28.2 million of the Company’s senior secured notes in open market transactions and paid an interim dividend of £10.0 million.

 

Cash and cash equivalents

 

Cash and cash equivalents at the year-end were £70.6 million.

 

Borrowings

 

Total borrowings were £436.9 million at 30 June 2012 compared to £458.9 million at 30 June 2011, and since the year end we have used  the net primary proceeds from the IPO to reduce our U.S. dollar denominated senior secured notes.

 

4



 

 

Conference Call Information

 

 

The Company’s conference call to review fourth quarter and fiscal 2012 results will be broadcast live over the internet today, 18 September 2012 at 11:00 am Eastern Time and will be available on Manchester United’s investor relations website at http://ir.manutd.com. Thereafter, a replay of the webcast will be available for thirty days.

 

 

 

About Manchester United

 

 

Manchester United is one of the most popular and successful sports team in the world, playing one of the most popular spectator sports on Earth.

 

Through our 134-year heritage we have won 60 trophies, enabling us to develop the world’s leading sports brand and a global community of 659 million followers. Our large, passionate community provides Manchester United with a worldwide platform to generate significant revenue from multiple sources, including sponsorship, merchandising, product licensing, new media & mobile, broadcasting and matchday.

 

 

 

Cautionary Statement

 

 

This press release contains forward-looking statements. You should not place undue reliance on such statements because they are subject to numerous risks and uncertainties relating to the Company’s operations and business environment, all of which are difficult to predict and many are beyond the Company’s control. Forward-looking statements include information concerning the Company’s possible or assumed future results of operations, including descriptions of its business strategy. These statements often include words such as “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible” or similar expressions. The forward-looking statements contained in this press release are based on our current expectations and estimates of future events and trends, which affect or may affect our businesses and operations. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual financial results or results of operations and could cause actual results to differ materially from those in these forward-looking statements. These factors are more fully discussed in the “Risk Factors” section and elsewhere in the Company’s Registration Statement on Form F-1, as amended (File No. 333-182535).

 

5



 

Key Performance Indicators

 

 

 

Twelve months ended

 

Three months ended

 

 

30 June

 

30 June

 

 

2012

 

2011

 

2012

 

2011

Matchday % of total revenue

 

30.8%

 

33.4%

 

25.4%

 

29.3%

Home Matches Played

 

 

 

 

 

 

 

 

FAPL

 

19

 

19

 

4

 

4

UEFA competitions

 

5

 

6

 

-

 

2

Domestic Cups

 

1

 

4

 

-

 

-

Away Matches Played*

 

 

 

 

 

 

 

 

UEFA competitions

 

5

 

7

 

-

 

3

Domestic Cups

 

4

 

4

 

-

 

1

*Away matches played includes games played at a neutral venue (i.e. UCL final /FA Cup semi-final)

 

 

 

 

 

 

 

 

 

 

Broadcasting % of total revenue

 

32.5%

 

35.4%

 

36.9%

 

44.0%

Commercial % of total revenue

 

36.7%

 

31.2%

 

37.7%

 

26.7%

Nike and Aon % of Commercial

 

44.0%

 

47.4%

 

43.0%

 

52.6%

Partners and other % of Commercial

 

56.0%

 

52.6%

 

57.0%

 

47.4%

Other

 

 

 

 

 

 

 

 

Employees at period end

 

696

 

628

 

696

 

628

Staff costs % of revenue

 

50.5%

 

46.1%

 

66.2%

 

50.7%

 

Phasing of Premier League
home games

 

Quarter 1

 

Quarter 2

 

Quarter 3

 

Quarter 4

 

Total

2012/13 season*

 

3

 

7

 

5

 

4

 

19

2011/12 season

 

3

 

7

 

5

 

4

 

19

2010/11 season

 

3

 

7

 

5

 

4

 

19

 

*Note - Games can be rescheduled for TV or clashes due to domestic cup competitions.  We will update each Quarter.

 

 

Contacts

 

Investor Relations:

Brendon Frey / Rachel Schacter

ICR

+1 203 682 8200

ir@manutd.co.uk

 

Media:

Philip Townsend

Manchester United plc

+44 161 868 8148

philip.townsend@manutd.co.uk

 

 

 

 

 

Jim Barron / Michael Henson

Sard Verbinnen & Co

+ 1 212 687 8080

jbarron@sardverb.com

 

6



 

MANCHESTER UNITED plc

CONSOLIDATED INCOME STATEMENT

(unaudited; in £ thousands, except per share data)

 

 

 

Year ended
30 June

 

Three months ended
30 June

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

2012

 

2011

 

Revenue

 

320,320

 

331,441

 

74,492

 

99,801

 

Operating expenses

 

(285,139

)

(272,653

)

(82,138

)

(87,113

)

Profit on disposal of players’ registrations

 

9,691

 

4,466

 

1,795

 

1,096

 

Operating profit/(loss)

 

44,872

 

63,254

 

(5,851

)

13,784

 

Finance costs

 

(50,315

)

(52,960

)

(14,591

)

(13,967

)

Finance income

 

779

 

1,710

 

103

 

356

 

Net finance costs

 

(49,536

)

(51,250

)

(14,488

)

(13,611

)

(Loss)/profit on ordinary activities before tax

 

(4,664

)

12,004

 

(20,339

)

173

 

Tax credit/(expense)

 

27,977

 

986

 

5,434

 

(524

)

Profit/(loss) for the period from continuing operations(1)

 

23,313

 

12,990

 

(14,905

)

(351

)

 

 

 

 

 

 

 

 

 

 

Attributable to:

Owners of the Company

 

22,986

 

12,649

 

(14,998

)

(501

)

Non-controlling interest

 

327

 

341

 

93

 

150

 

 

 

23,313

 

12,990

 

(14,905

)

(351

)

 

 

 

 

 

 

 

 

 

 

Earnings/(loss) per share attributable to the equity holders of the Company during the year

 

 

 

 

 

 

 

 

 

Basic and diluted earnings/(loss) per share (Pounds Sterling)

 

0.15

 

0.08(2)

 

(0.10

)

(0.00)(2

)

 

(1)  Also referred to as Net Income.

(2) As adjusted retroactively for all periods presented to reflect the reorganisation transactions described in supplemental note 1.

 

7


 


 

MANCHESTER UNITED plc

CONSOLIDATED BALANCE SHEET

(unaudited; in £ thousands)

 

 

 

2012

 

2011

 

ASSETS

 

 

 

 

 

Non-current assets

 

 

 

 

 

Property, plant and equipment

 

247,866

 

240,540

 

Investment property

 

14,197

 

6,938

 

Goodwill

 

421,453

 

421,453

 

Players’ registrations

 

112,399

 

129,709

 

Trade and other receivables

 

3,000

 

10,000

 

Non-current tax receivable

 

-

 

2,500

 

 

 

798,915

 

811,140

 

Current assets

 

 

 

 

 

Derivative financial instruments

 

967

 

-

 

Trade and other receivables

 

74,163

 

55,403

 

Current tax receivable

 

2,500

 

-

 

Cash and cash equivalents

 

70,603

 

150,645

 

 

 

148,233

 

206,048

 

Total assets

 

947,148

 

1,017,188

 

 

8



 

MANCHESTER UNITED plc

CONSOLIDATED BALANCE SHEET (continued)

(unaudited; in £ thousands)

 

 

 

2012

 

2011

 

EQUITY AND LIABILITIES

 

 

 

 

 

Equity

 

 

 

 

 

Share capital

 

-

 

-

 

Share premium

 

249,105

 

249,105

 

Hedging reserve

 

666

 

(466

)

Retained deficit

 

(12,671

)

(25,886

)

Equity attributable to owners of the Company

 

237,100

 

222,753

 

Non-controlling interests

 

(2,003

)

(2,330

)

 

 

235,097

 

220,423

 

Non-current liabilities

 

 

 

 

 

Derivative financial instruments

 

1,685

 

-

 

Trade and other payables

 

22,305

 

28,416

 

Borrowings

 

421,247

 

442,330

 

Deferred revenue

 

9,375

 

18,349

 

Provisions

 

1,378

 

1,940

 

Deferred tax liabilities

 

26,678

 

54,406

 

 

 

482,668

 

545,441

 

Current liabilities

 

 

 

 

 

Derivative financial instruments

 

-

 

2,034

 

Current tax liabilities

 

1,128

 

4,338

 

Trade and other payables

 

83,664

 

117,800

 

Borrowings

 

15,628

 

16,573

 

Deferred revenue

 

128,535

 

110,043

 

Provisions

 

428

 

536

 

 

 

229,383

 

251,324

 

Total equity and liabilities

 

947,148

 

1,017,188

 

 

9


 


 

MANCHESTER UNITED plc

CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited; in £ thousands)

 

 

 

 

Year ended
30 June

 

 

Three months ended
30 June

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

2012

 

2011

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

Cash generated from operations (note 2)

 

80,302

 

125,140

 

66,523

 

84,208

 

Interest paid

 

(47,068

)

(167,499

)

(3,515

)

(7,775

)

Debt finance costs relating to borrowings

 

-

 

(118

)

-

 

(118

)

Interest received

 

1,010

 

1,774

 

187

 

233

 

Income tax paid

 

(3,333

)

(70

)

(59

)

-

 

Net cash generated from/(used in) operating activities

 

30,911

 

(40,773

)

63,136

 

76,548

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

(15,323

)

(7,263

)

(5,685

)

(1,529

)

Purchases of investment property

 

(7,364

)

-

 

-

 

-

 

Proceeds from sale of property, plant and equipment

 

-

 

107

 

-

 

30

 

Purchases of players’ registrations

 

(58,971

)

(25,369

)

(5,818

)

(1,207

)

Proceeds from sale of players’ registrations

 

9,409

 

13,956

 

3,285

 

1,818

 

Net cash used in investing activities

 

(72,249

)

(18,569

)

(8,218

)

(888

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

Proceeds from issue of shares

 

-

 

249,105

 

-

 

-

 

Repayment of secured payment in kind loan

 

-

 

(138,000

)

-

 

-

 

Repayment of other borrowings

 

(28,774

)

(64,499

)

(311

)

(37,947

)

Dividends paid

 

(10,000

)

-

 

(10,000

)

-

 

Net cash (used in)/generated from financing activities

 

(38,774

)

46,606

 

(10,311

)

(37,947

)

Net (decrease)/increase in cash and cash equivalents

 

(80,112

)

(12,736

)

44,607

 

37,713

 

Cash and cash equivalents at beginning of period

 

150,645

 

163,833

 

25,576

 

113,045

 

Exchange gains/(losses) on cash and cash equivalents

 

70

 

(452

)

420

 

(113

)

Cash and cash equivalents at end of period

 

70,603

 

150,645

 

70,603

 

150,645

 

 

10



 

MANCHESTER UNITED plc

SUPPLEMENTAL NOTES

 

1          General information

Manchester United plc (‘the Company’) and its subsidiaries (together ‘the Group’) is a professional football club together with related and ancillary activities. The Company incorporated under the Companies Law (2011 Revision) of the Cayman Islands. The Company became the parent of the Group as a result of reorganisation transactions which were completed immediately prior to the completion of the public offering of Manchester United plc shares on the New York Stock Exchange (“NYSE”) in August 2012 as described more fully below.

 

1.1        The reorganisation transactions

The Group had historically conducted business through Red Football Shareholder Limited, a private limited company incorporated in England and Wales, and its subsidiaries. Prior to the reorganisation transactions, Red Football Shareholder Limited was a direct, wholly owned subsidiary of Red Football LLC, a Delaware limited liability company. On 30 April 2012, Red Football LLC formed a wholly-owned subsidiary, Manchester United Ltd., an exempted company with limited liability incorporated under the Companies Law (2011 Revision) of the Cayman Islands, as amended and restated from time to time. On 8 August 2012, Manchester United Ltd. changed its legal name to Manchester United plc.

 

On 9 August 2012, Red Football LLC contributed all of the equity interest of Red Football Shareholder Limited to Manchester United plc. As a result of these reorganisation transactions, Red Football Shareholder Limited became an indirect, wholly-owned subsidiary of Manchester United plc.

 

The new parent, Manchester United plc. had 155,352,366 shares in issue immediately after the reorganisation transactions and before the issue of new shares pursuant to the public offering. As a result historic earnings per share calculations reflect the capital structure of the new parent. The reorganisation transactions have been treated as a capital reorganisation arising at the reorganisation date (9 August 2012) and hence, apart from the impact on earnings per share, which for the year ended 30 June 2011 has been restated retrospectively in accordance with International Financial Reporting Standards, the impact of the transactions is disclosed in our financial statements as a non-adjusting post balance sheet event, with the accounting impacts to be reflected in financial statements for periods subsequent to 30 June 2012. As a result, the share capital disclosed in the balance sheet as of 30 June 2012 is that of the former parent, Red Football Shareholder Limited. Any impacts arising from the reorganisation transactions, including changes to share capital and the impact on taxation of assets and liabilities of the new parent as a consequence of becoming a US tax resident, will be accounted for at the date of reorganisation (9 August 2012).

 

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MANCHESTER UNITED plc.

SUPPLEMENTAL NOTES (continued)

(unaudited; in £ thousands)

 

2                               Cash generated from operations

 

 

 

Year ended
    
30 June

 

Three months ended
         
30 June

 

 

 

2012

 

2011

 

2012

 

2011

 

Profit/(loss) from continuing operations

 

23,313

 

12,990

 

(14,905

)

(351

)

Tax (credit)/expense

 

(27,977

)

(986

)

(5,434

)

524

 

(Loss)/profit on ordinary activities before tax

 

(4,664

)

12,004

 

(20,339

)

173

 

Impairment charges

 

-

 

2,013

 

-

 

2,013

 

Depreciation charges

 

7,478

 

6,989

 

1,807

 

1,737

 

Amortisation of players’ registrations

 

38,262

 

39,245

 

8,495

 

9,896

 

Profit on disposal of players’ registrations

 

(9,691

)

(4,466

)

(1,795

)

(1,096

)

Net finance costs

 

49,536

 

51,250

 

14,488

 

13,611

 

Profit on disposal of property, plant and equipment

 

-

 

(46

)

-

 

(15

)

Fair value (gains)/losses on derivative financial instruments

 

(91

)

1,047

 

174

 

(372

)

Increase in trade and other receivables

 

(9,414

)

(17,483

)

(20,537

)

(14,562

)

Increase in trade and other payables and deferred revenue

 

9,625

 

34,727

 

84,407

 

72,735

 

(Decrease)/increase in provisions

 

(739

)

(140

)

(177

)

88

 

Cash generated from operations

 

80,302

 

125,140

 

66,523

 

84,208

 

 

 

3          Reconciliation of Adjusted EBITDA and profit/(loss) for the period from continuing operations

 

 

 

Year ended
30 June

 

Three months ended
30 June

 

 

 

2012

 

2011

 

2012

 

2011

 

Profit/(loss) for the period from continuing operations

 

 

 

 

 

 

 

 

 

 

 

23,313

 

12,990

 

(14,905

)

(351

)

Adjustments:

 

 

 

 

 

 

 

 

 

Net finance costs

 

49,536

 

51,250

 

14,488

 

13,611

 

Tax (credit)/expense

 

(27,977

)

(986

)

(5,434

)

524

 

Profit on disposal of players’ registrations

 

(9,691

)

(4,466

)

(1,795

)

(1,096

)

Depreciation

 

7,478

 

6,989

 

1,807

 

1,738

 

Amortisation of players’ registrations

 

38,262

 

39,245

 

8,495

 

9,896

 

Exceptional items

 

10,728

 

4,667

 

4,365

 

4,667

 

Adjusted EBITDA

 

91,649

 

109,689

 

7,021

 

28,989

 

 

12