OUR CLUB OUR BUSINESS OUR RESULTS
The Directors present their Annual Report on the affairs of the Group together with the financial statements and Auditors’ Report for the year ended 30 June 2010.
Principal activities and business review
The principal activities of the Group continue to be the operation of a professional football club in England together with related commercial activities. In addition, the Group continues to acquire numerous properties with a view to a new stadium development. A review of the Group’s business, an indication of the likely future developments of its business and a description of the principal risks and uncertainties facing the Group are contained in the Chairman’s Statement and the Financial Review set out on pages 16 to 22.
Environmental matters and employee matters
The Group seeks to maintain its strong track record as a responsible employer. We seek to minimise the Group’s impact on the environment and endeavour to achieve this through recycling and energy conservation wherever possible. We are also committed to maintaining a workplace of the highest standard and seek to do so by ensuring that we provide training programmes, appropriate remuneration and a positive working environment.
Financial risk management objectives and policies
The Group is exposed to financial risk through its financial assets and liabilities. The key financial risk is that the proceeds from financial assets are not sufficient to fund the obligations arising from liabilities as they fall due. The most important components of financial risk are interest rate risk, currency risk, credit risk, liquidity risk, cash flow risk and price risk. Due to the nature of the Group’s business the financial risks that the Directors consider particularly relevant to the Company are interest rate risk, currency risk and cash flow risk. The Group addresses cash flow risk by carefully managing its working capital inflows and outflows. The Group hedges its interest exposure by using fixed interest rate facilities where it is deemed appropriate. The Group is exposed to foreign currency exchange risk through its player transactions but manages its working capital inflows and outflows to minimise any material foreign exchange risk. The Group does not enter into complex financial instruments for speculative purposes. Further information is provided in note 19 to the financial statements.
Results and dividends
The audited consolidated income statement for the year ended 30 June 2010 is set out on page 32. The Directors have not recommended the payment of a dividend (2009: nil).
Post balance sheet events
Details of post balance sheet events are given in note 28 to the accounts.
On 10 December 2009 the Directors were granted the authority, under a shareholders’ resolution, to purchase through the market 18,407,581 of the Company’s ordinary shares at prices ranging between 5p and a maximum of 105% of the average mid-market price quoted for the five business days prior to the purchase. A second resolution granted the authority to purchase through the market 8,739 of the Company’s convertible redeemable preference shares (‘CRPS’) at prices ranging between £78.10 and a maximum of 105% of the average mid-market price quoted for the five business days prior to the purchase. During the year the Company did not purchase any ordinary shares or any CRPS. These authorities expire on 14 December 2010 and similar resolutions will be put to shareholders at an Annual General Meeting of the Company to be held on 14 December 2010 to ensure the Directors have the flexibility to enhance shareholders’ value, and to enable the Board to reduce the long-term cost of servicing shareholders who have been prohibited from exiting their investments due to the comparatively high transaction cost of selling their shares.
Tottenham Hotspur plc
Annual Report 2010