RNS Number:4334J
Chelsea Village PLC
31 March 2003
CHELSEA VILLAGE GROUP PLC ("Chelsea Village" or "the Company")
Interim Results for the Six Months Ended 31 December 2002
Chairman's Statement
In common with many leisure orientated companies, this half year has been
particularly difficult for our hotel and travel businesses given the uncertain
economic and political circumstances. However we are progressing well with
changing the mix of business in the hotel from tours to commercial and
independent traveller business, both of which will bring better rates.
Overall turnover is 6% down to #53.6m over the previous half year (#57.2m)
mainly due to the downturn in the travel agency business and the move from
commissions to management charges in that business. As our new management team
settle in, they are getting to grips with the nuances of the Group and starting
to bring operating cost reductions. But the full benefit of the controls now
being implemented will not show through until next year both in terms of
operating costs and player wages.
Merchandising has continued steadily whilst the leisure club is still showing
signs of progress. This club provides a high quality service but being a
business start up we do not expect it to become fully established for a further
year or two.
Chelsea Football Club's progress this year can be seen from its match results,
with a good position in the Premiership as I write. Average attendance has
increased to 39382 (2001/2-38903) so far this season. As other clubs who have
recently reported interim results, we too are continuing to suffer from the
difficult challenges facing the football industry. The legacy of excessive
player contractual costs and a moribund transfer market, exacerbated by the
introduction of transfer windows, are significant factors impacting on our short
term performance. As these contractual arrangements unwind we aim to reduce our
playing costs to a sustainable level commensurate with projected revenue. The
challenge as always is to balance a prudent approach to expenditure with an
acceptable level of performance on the pitch. We will continue to strive to
achieve this equilibrium. Season ticket sales for next season are progressing
well with #4million in value sold so far.
You will recall that on 29 January this year we held an Extraordinary General
Meeting which resolved to permit our directors to issue new shares without first
having to offer them to existing shareholders. Negotiations are still under way
in this regard and we will report to the Stock Exchange as and when they are
concluded.
Ken Bates
March 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Six months to 31st December 2002
Operations
Excluding
Player
trading Player trading Unaudited Six Months to Audited Year to
31-Dec-02 31-Dec-02 31-Dec-02 31-Dec-01 31-Jun-02
#'000 #'000 #'000 #'000 #'000
Turnover 53,613 - 53,613 57,169 115,319
Direct operating costs (42,767) - (42,767) (44,081) (86,249)
_________ _________ _________ ________ _________
Gross profit 10,846 - 10,846 13,088 29,070
Administrative expenses (9,165) - (9,165) (8,733) (20,680)
_________ _________ _________ ________ _________
1,681 - 1,681 4,355 8,390
Loss on player
trading - (8,513) (8,513) (4,110) (16,155)
_________ _________ _________ ________ _________
Operating profit (loss) 1,681 (8,513) (6,832) 245 (7,765)
Interest receivable 42 - 42 51 92
Interest payable (4,436) - (4,436) (4,237) (8,778)
Loss on _________ _________ _________ ________ _________
ordinary activities (2,713) (8,513) (11,226) (3,941) (16,451)
before and after taxation _________ _________ _________ ________ _________
Minority interest (38) - (38) (139) (129)
_________ _________ _________ ________ _________
Retained Loss for (2,751) (8,513) (11,264) (4,080) (16,580)
the period _________ _________ _________ ________ _________
Earnings per share (6.6)p (2.3)p (9.7)p
Adjusted earnings per share (1.6)p 0.1p (0.2)p
GROUP STATEMENT OF RECOGNISED GAINS AND LOSSES
Unaudited Six Months to Audited Year to
31-Dec-02 31-Dec-01 30-Jun-02
#'000 #'000 #'000
Loss for the period (11,264) (4,080) (16,580)
Unrealised surplus on revaluation of freehold and long - - 5,572
leasehold properties
_________ _________ _________
Total recognised losses for the period (11,264) (4,080) (11,008)
CONSOLIDATED BALANCE SHEET
As at 31st December 2002
Unaudited Six Months to Audited Year to
31-Dec-02 31-Dec-01 30-Jun-02
#'000 #'000 #'000
Fixed assets
Tangible 176,669 174,677 179,948
Intangible 50,836 72,520 60,761
_________ _________ _________
227,505 247,197 240,709
_________ _________ _________
Current assets
Stocks 1,153 1,037 734
Debtors 18,188 23,570 18,177
Cash at bank 1,685 (640) 1,984
_________ _________ _________
21,026 23,967 20,895
_________ _________ _________
Creditors
Amounts falling due within one year (52,473) (30,232) (50,008)
Income in advance (27,581) (13,951) (17,586)
_________ _________ ________
(80,054) (44,183) (67,594)
_________ _________ ________
_________ _________ ________
Net current liabilities (59,028) (20,216) (46,699)
_________ _________ ________
Total assets less current liabilities 168,477 226,981 194,010
_________ _________ ________
Creditors
Amounts falling due after one year 85,416 123,151 99,269
Income in advance 7,834 10,439 8,288
Football Trust grants 3,100 3,100 3,100
Capital and reserves
Share capital 1,695 1,695 1,695
Share premium 55,130 55,130 55,130
Revaluation reserve 39,278 33,602 39,278
Profit and loss account (39,143) (15,275) (27,879)
Shareholders' funds 56,960 75,152 68,224
Minority interests 15,167 15,139 15,129
_________ _________ ________
168,477 226,981 194,010
_________ _________ ________
NOTES TO THE INTERIM REPORT
1. The interim results for the six months ended 31 December 2002 and 31 December
2001 contained within the this report are unaudited and do not constitute
Statutory Accounts as defined under the Companies Act 1985 (as amended).
2. The financial information for the year ended 30 June 2002 is extracted from
the financial statements filed with the Registrar of Companies which
contained an unqualified audit report.
3. The interim statement has been prepared using the same accounting policies as
in the statutory accounts for the year ended 30 June 2002.
4. The earnings per share figure is calculated on 169,505,000 shares in issue.
The Directors believe that in order to provide a more meaningful guide to
the underlying performance of the Group an additional earnings per share
figure should be included together with the more traditional calculation.
The adjusted figure excludes player trading and is considered to reflect the
groups operating performance.
The results used in both calculations are as follows:
Unaudited Six Months to Audited Year to
31-Dec-02 31-Dec-01 30-Jun-02
#'000 #'000 #'000
Loss after taxation (11,226) (3,941) (16,451)
Loss on player trading (8,513) (4,110) (16,155)
Adjusted (loss) profit (2,713) 169 (296)
Weighted average no. of shares in issue 169,505,000 169,505,000 169,505,000
Loss per share (6.6)p (2.3)p (9.7)p
Adjusted (loss) profit per share (1.6)p 0.1p (0.2)p
5. Throughout the six months to 31 December 2002 the company owned 80% of the
ordinary share capital of Chelsea Digital Media Ltd. The other 20% is owned
by the company's partner in this venture. As part of the joint venture
agreement the Company's partner has underwritten to fund initial losses up
to #7million. As a result the losses in the period to 31 December 2002 of
#682,000 are not included.
6. As a result of estimated taxation losses incurred in previous years and other
taxation reliefs available, no provision is required.
7. The company does not intend to pay a dividend at this time.
This information is provided by RNS
The company news service from the London Stock Exchange
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