“ REMIER LEAGUE GATE RECEIPTS ROSE TO £20.1M P (2009:£19.8M)WITH THE STADIUM SOLD OUT FOR ALL PREMIER LEAGUE HOME GAMES.”
OUR CLUB OUR BUSINESS OUR RESULTS
CAPITAL PROJECTS SPEND AGAINST GROUP NET DEBT
£100m £80m £60m £40m £20m 0
Training Ground Northumberland Development Project
Football debt Property specific debt
GROUP NET DEBT
Profit from operations (excluding football trading and amortisation)
Overall, our operating profit before football trading and amortisation, which is one of the key performance indicators for how the Club is performing as a cash-generating business, increased by 23% to £22.7m (2009: £18.4m).
We now hold tangible assets with a net book value of £123.6m on our balance sheet; the current Stadium, plant and equipment amounts to £38.9m of these assets; NDP £72.4m and the new Training Ground £12.3m. The current book value of the property which has been acquired to ensure we can deliver the NDP is £52.0m, with a further £20.4m being spent on planning and professional fees. This huge investment over the past five years has been funded through equity contributions and long term debt financing. An overview of the property segment extracted from the consolidated balance sheet shows the debt position in relation to the asset holding. Clearly it is important to highlight the difference between the Football Club and this long-term investment in assets. This investment was recently underpinned by the granting of local planning consent for the NDP master plan. In August 2009, the Club placed 30 million new ordinary shares of 5p each, raising £15.0m to ensure that the Club’s cash flow was not affected by the NDP. Group net assets grew to £70.5m (2009: £62.1m).
Amortisation and impairment of intangible assets
Amortisation and impairment of intangible assets are £40.0m (2009: £37.3m) as the Club maintains its significant investment in its playing squad. With intangible assets (players) valued at £115.7m in the balance sheet it is clear that the historic cost of our team represents an enviable squad whose market value would be far in excess of its carrying value.
Profit on disposal of intangible assets
Profit on the disposal of intangible assets was £15.3m for the financial year (2009: £56.5m), which includes the sales of Darren Bent to Sunderland, Didier Zokora to Sevilla and Kevin-Prince Boateng to Portsmouth. The comparative figure for the prior period includes significant gains that were made on the sales of the registrations of Dimitar Berbatov and Robbie Keane.
The Group had a net cash inflow from its operations of £19.9m for the year (2009: £29.9m). We had a cash outflow of £62.0m (2009: £68.6m) to acquire players and pay contingent sums arising from transfer agreements, this is partially offset by £34.5m (2009: £47.2m) of cash inflows from player sales and contingent receipts with the residual outflow offset by operating profits. The other major cash movements were the drawdown of £3.8m in property loans to help fund the Northumberland Development Project and a £10.0m short-term loan from our banking facilities. The Group repaid £4.1m of other borrowings during the year.
Net finance expenses
Interest expense has reduced by £0.5m but a reduction in interest income has resulted in an increase in the net finance expense from £3.4m to £5.0m.
The Group has incurred a tax charge of £0.1m in the current year at a tax rate of 28%. Therefore the loss after tax is £6.6m.
The most significant balance sheet movement relates to the continued investment in property, a further investment throughout the year in both the Training Ground build and the acquisition of property through Tottenham Hotspur Property Company Limited for the Northumberland Development Project (NDP) which contributed to a £20.2m increase in tangible assets.
Tottenham Hotspur plc
Annual Report 2010