Final Results
20 Janvier 2004 - 9:00AM
UK Regulatory
RNS Number:3887U
Birmingham City PLC
20 January 2004
Embargoed for release 8.00am 20 January 2004
Birmingham City PLC (the 'Company')
Preliminary Statement of Final Results for
the year ended 31 August 2003
Birmingham City plc, whose sole activity is the operation of Birmingham City
Football Club PLC, announces its financial results for the year ended 31 August
2003.
Chairman's Statement
I am delighted to present to shareholders our results for the year ended 31
August 2003, an excellent year for the Club both on and off the pitch.
Our first season in the Premier League saw us finish in 13th position, the
highest placed club in the Midlands. We have continued to build upon this
success in the 2003/04 season and as I write we are currently in 9th place in
the League and in the 4th round of the FA Cup.
My principal aim as Chairman is to ensure that everyone at the club remains
focused on building upon our successful first season in the Premier League and,
to this end, we continue to strengthen the Birmingham City FC squad and
concentrate on maximising the commercial opportunities currently available to
us. The Board has great confidence in Steve Bruce's ability to identify players
who are able to improve the standard and performance of the team and in the
ability of our management team to continue the commercial success of Birmingham
City FC off the playing field.
We are fortunate to have 14 senior international and six youth international
players at the Club and, for the first time in 25 years, we have a player,
Matthew Upson, playing for the England first team. We also have five England
Youth Internationals, for whom we have high hopes for the future.
Overall there is a strong team spirit at the club and on behalf of all
shareholders I would like to thank Steve Bruce, his management team and the
players for their complete commitment and effort that has ensured our continued
success in the Premier League.
Financial and Operating Review
We are delighted to report that our turnover has more than doubled to #36.5
million (2002:#15.2 million) and that we have made a profit before tax of #3.3
million.
We currently spend 54% of our turnover on wages, but expect this percentage to
increase as we continue to improve the playing squad and heighten our ambitions.
The board had hoped that the current strength of the squad would result in our
not having to make any major investment in players until the summer of 2004.
However with injuries to key personnel we may have to review this policy. In
the event that we do purchase additional playing staff this will have an
immediate effect on wage costs. However, the board is well aware of the need to
find the right balance between risk and reward and will continue to manage your
company's risk profile accordingly.
Net operating expenses have increased to #25.7m, (2002:#17.9m), the majority of
which is due to the increase in player wages for the year.
During December 2002 the Board made a decision that to avoid relegation we had
to invest significantly in the team. We purchased Matthew Upson, Jamie Clapham
and Steven Clemence, and we loaned Christophe Duggary. These players made an
instant impact on the team and we finished 13th in the Premier League. We also
gained a place on the Premier League's tour of Malaysia along with Newcastle
United and Chelsea. Total investment in players during the year exceeded #13m.
We currently have 22,471 season ticket holders, an increase on last season, and
all boxes and corporate memberships are sold. Commercial income for the year
rose to #6.4m (up 27%) and we will be looking to expand the commercial interests
within the stadium for the coming season 2004/05. Merchandising sales
increased by 19%, and continue to increase this year. We continue to attract
and retain significant sponsorships, both locally and nationally, and now work
in partnership with some of the country's most high profile blue chip companies.
Thank you all for the support that you give so generously to the Club.
Overall it has been a good year for the Club both on and off the pitch and I am
delighted with our progress, whilst remaining focussed on the importance of
building upon this in our second year in the Premier League.
David Sullivan
Consolidated Profit and Loss Account
Year ended 31 August
2003 2002
#'000 #'000
Turnover 36,480 15,184
Match and ground expenses 4,180 3,398
Other operating costs 1,413 914
Staff costs 19,737 13,206
Depreciation 475 446
Loss/(profit) on disposal of fixed assets 2 (10)
Amortisation of deferred capital grants (58) (54)
Net operating expenses 25,749 17,900
Operating profit/(loss) before amortisation of players 10,731 (2,716)
Player transfer costs including amortisation (7,160) (3,357)
Operating profit/(loss) after amortisation of players 3,571 (6,073)
Loss on sale of players' registrations (82) (314)
Profit/(loss) before interest and taxation 3,489 (6,387)
Interest receivable and similar income 18 40
Interest payable and similar charges (166) (54)
Profit/(loss) before taxation 3,341 (6,401)
Taxation on profit/(loss) on ordinary activities (3) 54
Profit/(loss) after taxation 3,338 (6,347)
Earning/(loss) per share
Basic 4.17 pence (7.93) pence
Diluted 4.17 pence (7.93) pence
Notes:
1. The preliminary results to 31 August 2003 are extracted from the annual
accounts for that year and have been prepared in accordance with the accounting
policies adopted in those accounts. The financial information set out in this
statement does not constitute full statutory accounts within the meaning of
section 240 of the Companies Act 1985.
2. Basic earnings/(loss) per share are calculated using the profit/(loss)
after taxation divided by the 80 million shares in issue.
Consolidated Balance Sheet as at 31 August 2003
2003 2002
#'000 #'000
Fixed Assets
Intangible fixed assets 17,268 11,501
Tangible fixed assets 12,813 12,850
30,081 24,351
Current Assets
Stocks 217 180
Debtors 3,016 3,672
Cash at bank and in hand 4,476 2,229
7,709 6,081
Creditors: Amounts falling due within one year (26,884) (22,433)
Net Current Liabilities (19,175) (16,352)
Total Assets Less Current Liabilities 10,906 7,999
Creditors: Amounts falling due after more than one year (4,227) (4,600)
6,679 3,399
Deferred Capital Grant (2,364) (2,422)
4,315 977
CAPITAL AND RESERVES
Called up share capital 8,018 8,018
Share premium account 10,065 10,065
Revaluation reserve 313 313
Merger reserve (2,539) (2,539)
Profit and loss account (11,542) (14,880)
Shareholders' Funds
(including non-equity) 4,315 977
Copies of the accounts will be posted to shareholders in due course.
Copies of this announcement are available from the company at St Andrew's
Stadium, Birmingham B9 4NH and at www.bcfc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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