TTNM.L Regulatory News (TTNM)

17 Oct 2007 07:01

Tottenham Hotspur PLC17 October 2007 Tottenham Hotspur plc Preliminary results for the year ended 30 June 2007 Summary of Results Year ended Year ended 30 June 2007 30 June 2006 £m £mTurnover 103.1 74.1Operating profit before football trading and depreciation 32.0 4.6Operating profit before football trading 29.7 2.4Amortisation and impairment of registrations (19.2) (12.5)Profit on disposal of registrations 18.7 12.3Net interest payable (1.6) (2.3)Profit before tax 27.7 0.6Retained profit/(loss) for the financial year 18.9 (1.6)Earnings/(loss) per share - basic 20.4p (1.7p) Summary and Outlook • Record turnover and profit - strong performance from all parts of thebusiness • First full year contribution from the two main commercial partners:MANSION (shirt sponsor) and PUMA (technical sponsor) • Strong TV revenues buoyed by increase in live FAPL games and 10 UEFACup matches. During the 2006/2007 season: the quarter-finals of the UEFA Cup,the quarter-finals of The FA Cup, the semi-finals of the League Cup and fifthplace in the FAPL • New central FAPL TV deal comes into force in current season, basic feefor domestic television rights increasing by 51%, overseas television rightsrises by 128% • Submitted a new planning application for the Football Training Centrewhich will be heard by the Enfield planning committee in November 2007 • Review of stadium options is now substantially complete and a limitednumber of potential sites have been identified in the London Boroughs of Enfieldand Haringey including the expansion possibilities of the existing stadium Commenting, Daniel Levy, Chairman of Tottenham Hotspur plc, said: "All parts of the business have continued to perform well to produce recordrevenues and profits. Cash generation has been strong. Our priorities for theClub are focused on continued development of the first team where we have builtan exceptionally talented squad, progressing our state-of-the-art TrainingCentre and the development of an improved, larger stadium." Enquiries: Matthew Collecott, Finance Director Tel: +44(0) 20 8365 5322Tottenham Hotspur plc www.tottenhamhotspur.com John Bick Tel: +44(0)7802 211 374 Jonathan Wright Tel: +44(0)207 107 8000Seymour Pierce Limited Chairman's Statement 2007 This year we celebrate the 125th anniversary of Tottenham Hotspur Football Club- a notable landmark for a great football club - and it comes at a time when,despite our current poor start, we should continue to view our future withoptimism and ambition. Year on year, I have been able to report achievements which have been part of asubstantial turnaround of the Club's fortunes both on and off the pitch and thisyear sees us report record financial results. The First Team reached the quarter-finals of the UEFA Cup, the quarter-finals ofThe FA Cup, the semi-finals of the League Cup and 5th place in the PremierLeague (FAPL) and re-qualification for the UEFA Cup 2007/2008 - a terrificachievement. We have seen our supporter base increase measurably, both domestically and on aninternational basis, with 4.3 million fans around the world, and 1.4 million inthe UK (Sport & Markt). Direct support for the Club during the year reachedrecord levels with over a million fans coming through the gates at White HartLane. We must also pay tribute to the continued success of the FAPL which continues togrow in stature. Almost 400 games are now broadcast live per season in over 204territories. Over 600 million homes now receive channels that broadcast theFAPL, with an average of 75 million people watching on a weekly basis and anestimated global audience of almost 3 billion people (FAPL). On any measure thatis an exceedingly strong commercial platform and Tottenham Hotspur remains oneof the top five broadcasted clubs in the FAPL. Financial results Turning to the financial results for the year ended 30 June 2007, we have seensubstantial growth in turnover, an increase of 39% to £103m and operating profitbefore football trading and depreciation at £32m. The Club is generatingsignificant operating revenues from the core business. Notably, we generateoperating profits at 31% of turnover, a position that highlights the impact thatfurther European football and more live games can have on the current businessmodel. It remains a priority of the management to ensure that it remains so, inorder to continue to grow the business over the years as we embark on capitalprojects and continue to invest in the infrastructure of the Club and the team. Turning to the balance sheet, net assets reflect player registrations at costand as a result home grown players and the stream of young players who have beenbought are not reflected at market value in these accounts. Player spendingsince 30 June 2006 was £81m and whilst it does reflect a significantexpenditure, the sale of players and strong cash flows have meant that the Clubhas been well positioned to sustain continued investment in players and ensureit has moderate debt as a result. All parts of the business have continued to perform strongly with notableincreases in TV revenues on both a domestic and international basis and as aresult of the Club's increased coverage in European competition. Going forwardon a like for like basis, given the attraction of the Premier League brand andimproving rights deals, we would expect continued excellent financialperformance. These areas are covered in more detail in the Financial Review byyour Finance Director. The Board has proposed a dividend for the year to 30 June 2007 of 4p perordinary share which amounts to £3.7m. We believe it is a mature approach tooffer long-term investors and fans of the Club a return on their investment andnote that the Club has not paid a dividend since 1998. The dividend, ifapproved, will be paid by 2 January 2008 to shareholders on the register at theclose of business on 30 November 2007. Capital projects There is no doubt that our two key capital projects, the Football TrainingCentre (First Team and Academy) and the Stadium are fundamental features of ourfuture plans for the Club. A new planning application has been submitted for the Football Training Centreat Bull's Cross, Enfield. The recent purchase of Whitewebbs Sports Club hasprovided the opportunity to significantly remodel the layout and design of thesite, leading to a positive planning balance, a better proposal, one which willhave less impact on the Green Belt land, with only 3% comprising of buildings.In light of this, we have withdrawn our appeal of the previous application andare currently seeking the support of all our stakeholders for the new proposal.The Centre will be important in sustaining the Club's position in domestic andEuropean competition, developing home grown talent, which in turn benefits thenational team, and in extending the benefits associated with professionalfootball to the wider community through an extensive and innovative communityoutreach programme to be delivered by The Tottenham Hotspur Foundation. ThePlanning Committee of the London Borough of Enfield will meet to discuss thisapplication in November 2007. Our hope is that we are able to achieve consent atlocal level for this facility, which is not only in the interest of the Club butaddresses local and national agendas as well as providing a potential trainingfacility for the Olympics. Our review of Stadium options is now substantially complete. I can report thata limited number of potential sites have been identified in the London Boroughsof Enfield and Haringey including the expansion possibilities of the existingstadium. These obviously remain highly sensitive on commercial grounds, but weare now working to a timetable that will see us commit to one option during thefirst half of 2008. I am delighted to announce that Tony Winterbottom, whoworked for the Mayor of London as the Executive Director of Regeneration andDevelopment at the London Development Agency, joins a team which is headed bymyself, supported by your Finance Director, along with a multi-disciplinarygroup of architects, transport consultants, heritage specialists, planningconsultants and a host of other experts to bring this project to fruition. Theteam will work in conjunction with The Tottenham Hotspur Foundation with respectto community affairs. In addition we are in discussion with Council bodies, theLDA, Transport for London, the GLA, the Mayor's office and local and centralgovernment officials. There has been initial consultation with supporters andtheir representative groups and this will be an ongoing process. On the pitch Player movements in the latter half of the year have been far less than inprevious years, an indication that much of the rebuilding of the squad has beenachieved. Last season saw us integrate a number of new players who have sincesettled well and now embark on a second season in European competition. The following players have joined since we last reported: Darren Bent, GarethBale, Younes Kaboul and Kevin-Prince Boateng for the First Team; Adel Taarabt'sloan became a permanent move; Hossam Ahmed Mido joined and departed. Excitingyounger players to join our Academy included Yuri Berchiche, Danny Rose and DeanParrett. Danny Murphy, Reto Ziegler, Mark Yeates and Emil Hallfredsson left the Club andRodrigo Defendi, Rob Burch and Charlie Lee were released. We wish them all well. I am pleased to report that, during the year, sixteen of our First Teamprofessional players were called up to represent their respective national teamsand this reinforces the continued quality of our current squad of players. Tom Huddlestone and Jermaine Jenas were both offered and signed new, extendedcontracts. We very much hope Jermain Defoe will also extend his contract withthe Club. We have progressively introduced an increased element of performancerelated remuneration into player contracts designed to reward success. Our Academy re-structuring continues to produce excellent results. During lastseason five graduates from the Academy moved to professional contracts as thirdyear, full-time players. A further seven moved to the Development Team underClive Allen at the end of the season. The same period saw eight Academy scholarscalled up for international duty, along with six of our schoolboys. Most notablyThomas Pekhart who at 18 has played for the Czech Republic in the U20 World Cupin Canada. The Academy participated in four international youth competitions and wassuccessful in winning the prestigious Verona tournament. During the pre seasonour U18s won the Eurofoot tournament, this age group being a flagship group forthe Academy with players showing potential for the First Team. Our pre-season tour of South Africa was a great success. We enjoy stronghistorical support, enhanced by the previous tour in 2003 when we supported theSouth African bid to host the 2010 World Cup. The team returned from the tourvictorious in the Vodacom Challenge. The players undertook several corporatesocial responsibility visits and were congratulated on their contributionthroughout the tour. Their behaviour and conduct made them a credit to our Club. An extended association was established with South Africa with the announcementof our partnership with SuperSport United, a Premier Soccer League (PSL) teamowned by SuperSport, that will see the Clubs' academies working together. Itrepresents an excellent opportunity for coaching exchanges and the developmentof talent both for ourselves and also for the benefit of the South African game.SuperSport is one of the largest broadcasters in Africa, broadcasting to 57countries and the relationship will result in extensive coverage of both theClub and the joint academy throughout the continent. Commercial operations Our season ticket waiting list of 20,000 has been integrated into our new OneHotspur membership programme and will help us to establish a better view of theexcess of demand for tickets. In turn, this information will be used to assistus with stadium modelling going forward. These results include the first full year of our deals with the Club's two maincommercial partners: MANSION, our shirt sponsor, with whom our agreement extendsfor a further three seasons; and PUMA, our technical sponsor, with whom we willwork for at least four more seasons. The MANSION deal is unaffected by recentamendments to advertising legislation. The Club's progress on and off the pitchcontinues to attract interest from a range of internationally recognised andrenowned companies looking to build an association with our brand. Three newofficial partners have joined the Club's commercial programme: Thomas Cook, astravel services supplier; BT, as broadband supplier; and Willow Water, as waterprovider. The Club will continue to look for new opportunities to expand thecommercial programme further whilst ensuring our current partners receive thevalue, support and attention they deserve from existing agreements. The Club's highly regarded corporate hospitality facilities were once again soldout for virtually every game. Our executive boxes and variety of executivelounge facilities were in great demand from a wide range of international,national and local businesses. After a summer of refurbishments in key loungeareas, including the Highlights area in the South East corner and the BillNicholson suite in the West Stand, we expect a similarly busy season andcontinued high levels of demand for all corporate hospitality areas. The Merchandise Division has performed well against the same period last year,with turnover up 36% and we continue to expand our retail selling space throughthe introduction of mobile units, which can be used at various points in andaround the Stadium. The Club's growing fan base and our increasingly popularwebsite continues to drive traffic to our online shop and turnover continues togrow across this area. The value of our online retail sales operation grew by28% on the prior year and represents 23% of retail turnover. As the Club's focuson developing its international fan base gathers pace, it is likely that ouronline sales will grow further. Our Club membership area has now reached record numbers including JuniorMembers. The introduction of our new five tier One Hotspur membership scheme hasproved to be popular with both UK and overseas-based supporters. By September2007, the Club had processed more than 75,000 One Hotspur applications - morethan the total number for the whole of the previous season. After a difficult 2006/2007 season, which involved significant staff upheavaland systems issues, the Ticket Office has been re-located to a new site inPaxton Road. It has been merged with the former Members department and has beenappropriately re-staffed for the current season. Following an extensive summertender process, involving the major ticketing service providers, the Clubentered into an agreement with Ticketmaster for the use of one of the world'smost-used and sophisticated integrated ticketing and membership systems. As thissystem continues to be fully integrated, fans will be able to purchase ticketsonline for away matches as well as home matches, access their personal OneHotspur account details, view loyalty points and access the Club's new TicketExchange system. The Club has recently appointed a new Customer Service Manager with a view toimproving the level of support and service to our fans across ticketing andmembership areas. This period also saw the consolidation of the Club's publications department,which re-launched the Club magazine - hotspur - which is now managed in-house.It outsells all previous Club magazine titles. Later this year will see thepublication of the Tottenham Hotspur Opus - a comprehensive and elegantcollector's item which represents the most definitive history of the Club everproduced. The Club's website tottenhamhotspur.com, which was re-launched in 2006 andupdated again in September 2007, has been a resounding success and has receivedup to one million unique visitors a month making it one of the five most visitedfootball club sites in the UK (Hitwise). Supporting our internationaldevelopment ambitions, the website also now hosts a Chinese language version ofour website. Similarly, we re-launched our online TV service - Spurs TV Online.Once again we have seen subscription levels rise past previous figures in thefirst three months, with members joining us from more than 65 countries aroundthe world, from Mongolia to Costa Rica and the United States to New Zealand - afurther demonstration of our impressive international reach and growing overseasfan base. Supported by our overseas TV agent, Pitch International, the Club concluded anumber of deals for its new International Programming Block (IPB) broadcastproduct, a weekly three hour digest of news, views, footage and match actioninvolving the Club. The IPB will support the Club's international branddevelopment and will help to drive One Hotspur membership and subscriptions toboth Spurs TV Online and to hotspur magazine. Tottenham Hotspur Foundation Following eight highly successful years, our Football in the Communitydepartment was awarded charitable status and the independent Tottenham HotspurFoundation was launched by the then Prime Minister the Rt Hon Tony Blair at 10Downing Street in January 2007. The Tottenham Hotspur Foundation will createover 500,000 sporting opportunities in its first year and aims to engage andinspire children through the medium of football. It seeks to encourage physicalactivity, healthy lifestyles and improve educational attainment whilst alsotackling crime and anti-social behaviour. Our players are committed toparticipating in a community event every week of the season and we have beencredited with leading the field in several areas, notably our work with youngpeople with disabilities. I am delighted that since its launch Les Ferdinand MBEand Lord Triesman of Tottenham have joined as Ambassadors of The Foundation. Charitable donations The Club is the largest charitable donor of any club in the FAPL. Over the pasttwo years the Club has donated in excess of £5m in the form of direct financialsupport, gifts and contributions in kind. The Club announced its first long-term international charitable partnership thisyear with SOS Children's Villages. Utilising players' fines money, which hadbeen ring-fenced and set aside for a worthy cause, the Club funded the buildingof a home for orphans in the South African village of Rustenberg and willcontinue with its maintenance and further projects. It was a heart warming timefor the players when they visited South Africa in the pre-season tour to begreeted by children from SOS. Management and staff It goes without saying that our success is reliant on the dedication, hard workand enthusiasm of everyone at the Club, from the Board, our management andemployees, coaching and playing staff and I should like to thank them all. Inaddition I should like to thank Sir Keith Mills, who joined the Board inDecember 2006, for his valuable contribution. He brings with him extensiveexperience in advertising and marketing in addition to his considerableknowledge in sports administration, including of course his highly successfulduty as International President and CEO of London 2012, where he is nownon-executive Deputy Chairman. Sir Keith joins Mervyn Davies, who is nowChairman of Standard Chartered PLC and is Chair of the Prime Minister's BusinessCouncil for Britain. We are extremely pleased to have two such excellent andsupportive Non-Executive Directors. It is with regret that I announce the resignation of Paul Kemsley asNon-Executive Vice Chairman of Tottenham Hotspur Football & Athletic Co Ltd witheffect from this year's forthcoming General Meeting. Paul has recently expandedhis property business interests in the United States and feels that inevitablyhis time spent overseas will impact upon his ability to fulfil his role with theClub. Paul has worked with me for the past six years at the Club and I thank himfor his advice and counsel during this period. Outlook We have spent the past few years committed to what I believe is a far-sightedpolicy of buying and developing young, highly talented players and, wherepossible, players who can adapt to the English game and culture bringingexperience and style to the Club. It is no coincidence that our recent successcomes at a time when the Club has an exceptionally talented squad. A key factorin building our squad is stability and the adoption of the current footballmanagement structure has been responsible for guaranteeing this. We willcontinue to identify players and pursue buying strategies that we consider to bein the best long-term interests of the Club. We have always stated that we had three priorities for this Club, and in thisorder - investment in the First Team, a state-of-the-art training centre and animproved, larger stadium. With investment in the First Team, an assembled squadof enviable talent with inherent value and re-qualification for Europe, we havemade measurable progress in the first of these. The training centre proposal hasnow been re-submitted and we are currently seeking the support of allstakeholders as we see it through the planning process. We all recognise notonly the need for a larger capacity stadium, we also recognise the relevance andimpact of being located in London, one of the greatest capital cities of theworld. London is a bustling economic centre and a focal point for business. Withthe Olympics in 2012 and Crossrail being given the go ahead after 20 years, itis only right that we should take advantage of our location. Football is a unique business and one which is more often than not conductedunder intense public scrutiny. We, the management, have to make strategic,informed decisions and act in the long-term interest of the Club. Much has beenachieved and there is still much to achieve. I shall continue to seek everypossible advantage for Tottenham Hotspur. I should like to thank our shareholders for their continued support; our stafffor their huge contribution, often beyond the call of duty; and our supporters,who are the very foundation of our Club. The amazing scenes and atmosphere thatpreceded our 125th Anniversary Match shown live in over 100 countries, aretestament to the pride we all have in our great Club. Daniel LevyChairman 16 October 2007 Financial Review Turnover Success both on and off the pitch during the year saw turnover break the £100million mark for the first time in the Club's history, largely driven by theClub competing on four fronts both domestically and in Europe. Turnover rose by39% on last year from £74m to £103m. For the second successive season a final league position of fifth place in thePremier League (FAPL) ensured that the Club continued to earn significant TVrevenues through the merit award payment and live TV match appearance fees.Including TV income and prize money from cup matches, the Club received £34mfrom media and broadcasting. Due to the new central FAPL TV deal that comes into force this season, we canexpect these income streams to rise even further. The basic fee for domestictelevision rights will increase by 51%, whilst overseas television rights risesby 128%. Improving upon our position in the League remains a top priority, evenmore so given the potential huge uplift in revenue under the new TV deal. The Club's first European campaign in seven years in the UEFA Cup saw us playten games before bowing out to the eventual (and defending) champions Sevilla inthe quarter-finals. We also enjoyed good runs in both domestic cups, reachingthe semi-finals and the quarter-finals of the Carling Cup and FA Cuprespectively. All in all, these three cup competitions earned the Club £13m ingate receipts, compared to just £0.1m in total the previous year. Premier League gate receipts increased by 4% and the Stadium was invariably atnear full capacity for each game. The waiting list for season tickets has beenmonetised going forward, to establish a better view of the excess of demand fortickets which will assist with stadium modelling going forward. 2006/2007 was a year of change in our key sponsorship deals. MANSION became ourmain sponsors, commencing a four year deal, and PUMA signed a five year deal tobe our new technical sponsors. These were the primary reasons for sponsorshipincome and corporate hospitality rising by 62% from the previous year, a netincrease of £10m in operating cash annually. Corporate hospitality income increased by 20% largely aided by the eleven extrahome cup ties played during the season. Demand for our executive boxes andmemberships and hospitality suites is at an all time high with most areas beingsold out well in advance of the games. Merchandising went from strength to strength as turnover increased by 36%. Wehope for continued growth this season, aided by the launch of new kits,including a special kit to mark the Club's 125th anniversary. Operating profit (before football trading and depreciation) Overall, our operating profit before football trading and depreciation, which isone of the key performance indicators for how the Club is performing as a cashgenerating business, increased to £32m, which underlines the importance ofEurope and ultimately the potential impact Champions League football would haveon the operating line. Operating expenses (excluding football trading) Operating expenses before football trading were kept under tight control, rising2% from last year in spite of the additional matchday costs from the extra cupgames. Player salaries remain the Club's biggest cost. Whilst more and more moneyenters the game, primarily from the central FAPL TV deal, we endeavour tocontrol our significant cost base. The Club continues to adopt its policy ofrewarding the performances of both staff and players based on the continuingsuccess of the Club and their respective departments. The Club incurred development costs of £2m in the year on its two major capitalprojects as it continues to seek planning for the Tottenham Hotspur Academy andthe First Team facilities and looks to move the stadium project forward. Football trading Continuing on from last year, the Club increased profits on football trading by52% to £19m. This was largely attributable to the sale of Michael Carrick toManchester United in July 2006 for a net profit of £12m. Other significant salesin the year include Calum Davenport to West Ham United and Stephen Kelly toBirmingham City for net profits of £2m and £1m respectively. Performance relatedreceipts on player registrations increased profits further. The ambitions of the Club cannot, however, be doubted as the Club investedheavily in the playing squad during the year to the tune of £67m, including thesignings of Dimitar Berbatov, Didier Zokora, Hossam Ahmed Mido, PascalChimbonda, Benoit Assou-Ekotto and Steed Malbranque in the summer of 2006,Ricardo Rocha in January 2007 and Darren Bent and Gareth Bale in the closeseason of 2007/2008. Further major additions were made post balance sheet datein acquiring the registrations of Younes Kaboul and Kevin-Prince Boateng for£14m in total. Profit before taxation The overall result of the above is that profit before taxation has increased to£28m. Taxation The Group has incurred a tax charge of £9m in the current year compared to £2mfor the prior year. Therefore profit after tax is £19m, an effective tax rate of30%. Balance sheet The significant player trading activities during the year, as noted above, areresponsible for the majority of the large movements in the balance sheet.Intangible assets, representing the cost of the acquired player registrations,increased by £44m. Player trading accounts for £12m of the increase in creditorsfalling due after more than one year. Group net assets have increased from £30m to £49m (and would be £64m if allconvertible preference shares were converted) illustrating the strong positionthat the Club is in to facilitate its long-term projects and ensure that theClub is able to compete at the highest level in an increasingly competitiveindustry. Whilst net assets continue to increase, it has to be noted that theplayer base consists of, inter alia, Academy talent and a raft of young playerswhich, whilst included at cost are insured for hundreds of millions of poundsagainst a net book value of some £74m. Cash flow There were a number of cash flows that differed significantly from the prioryear. We had a large cash outflow of £5m for the payment of UK corporation tax.We also had capital cash outflows from investing in the playing squad, over £53m(2006: £19m) to acquire players and to pay contingent sums arising from transferagreements. However, this was partially offset by £28m (2006: £16m) of cashinflows from player sales and contingent receipts. The other major cash movement in the year was the drawdown of £20m 7.29% securedloan notes. This amount has been set aside with other Club funds for the FirstTeam and Academy Training Facility Project. Risks and opportunities The Group is exposed to a range of risks and uncertainties which have thepotential to affect the long-term performance of the Group. Risks are monitoredby the Board on a continual basis and the Group seeks to mitigate the riskswherever possible. On the pitch: The continued success of the First Team in the League, European and cupcompetitions is an important factor in securing the long-term stability of theGroup. This is especially true given the significant increase in incomegenerated from TV revenues from season 2007/2008 onwards. Our ambitions in these competitions can be achieved with the continuedcommitment of the playing staff, the football management team and supporters.Our successful approach to nurturing both home grown talent and acquisitionsthrough the transfer market will help the team to secure future success on thepitch. There is always continued upward pressure on player costs and salaries, whichcontinue to require significant cash outflows. Accordingly, the challenge forthe Group continues to be to locate players of both quality and value throughthe transfer market and the Academy. Our supporters continue to demonstrate unwavering support for our team and Club.Attendances are consistently high with over 20,000 people on the waiting listfor season tickets, similarly, demand for our corporate hospitality services andmerchandise is high. We are continually seeking ways to increase our fan baseoverseas and add value for domestic fans. This continued support is of utmostimportance in ensuring that the Club is able to prosper. Off the pitch: Last year the Group entered into two new deals in respect of its two maincommercial sponsorships. MANSION became our new shirt sponsor and PUMA becameour new technical sponsor. The terms of these deals are significantly improvedon prior years and our relationships with MANSION and PUMA are important to theGroup. We continue to explore new opportunities in order to broaden our range ofincome streams both nationally and internationally. This continueddiversification of our income streams will help to ensure the Group isfinancially robust and increases our stability. The Club is reliant on the Premier League brand and exposed to externalgoverning bodies of The FA, UEFA and FIFA. Clearly any changes in these bodiescan affect our business model. M J CollecottFinance Director 16 October 2007 Consolidated Profit and Loss Account Year ended 30 June 2007 Operations, Year ended excluding 30 June football 2006 trading* Football Total £'000 trading* Total (note 2) Note £'000 £'000 £'000 Turnover 3 103,091 - 103,091 74,141Operating expenses (73,359) (19,089) (92,448) (83,561)Operating profit/(loss) 29,732 (19,089) 10,643 (9,420)Profit on disposal of intangible fixed - 18,721 18,721 12,299assetsProfit/(loss) on ordinary activitiesbefore 29,732 (368) 29,364 2,879interest and taxationNet interest payable (1,648) (2,261)Profit on ordinary activities before 27,716 618taxationTax charge on profit on ordinary (8,821) (2,193)activitiesProfit/(loss) on ordinary activities after 18,895taxation and retained for the financial year (1,575) Earnings/(loss) per share - basic 4 20.4p (1.7p)Earnings/(loss) per share - diluted 4 10.8p (1.7p) * Football trading represents the amortisation, impairment, and the profit/(loss) on disposal of intangible fixed assets and other football trading relatedincome and expenditure. The above results for the current and prior year all derive from continuingoperations. There were no other gains or losses in either the current or prior year,accordingly no statement of total recognised gains and losses is presented. Consolidated Balance Sheet Group 30 June 30 June 2007 2006 £'000 £'000Fixed assetsIntangible assets 73,815 30,264Tangible assets 51,057 49,762 124,872 80,026Current assetsStocks 1,219 775Debtors 29,990 20,034Cash at bank and in hand 28,283 34,581 59,492 55,390Creditors: amounts falling due within one year (72,703) (73,114)Net current liabilities (13,211) (17,724)Total assets less current liabilities 111,661 62,302Creditors: amounts falling due aftermore than one year (60,636) (28,026) 51,025 34,276Provisions for liabilities (2,465) (4,320)Net assets 48,560 29,956 Capital and reservesCalled-up share capital 4,631 4,646Equity component of CRPS 3,838 3,838Share premium account 11,556 11,556Revaluation reserve 2,336 2,384Capital redemption reserve 565 550Profit and loss account 25,634 6,982Shareholders' funds 48,560 29,956 Consolidated Cash Flow Statement Year ended 30 June 2007 Year ended 30 June 2006 Note £'000 £'000 £'000 £'000 Net cash inflow from operating activities 5 8,523 33,650Returns on investments and servicingof financeInterest received 1,150 498Interest paid (826) (836)Net cash inflow/(outflow) from returns oninvestments and servicing of finance 324 (338) TaxationUK corporation tax paid (5,176) (100)Overseas withholding tax paid - (259)UK corporation tax received - 132Net cash outflow from taxation (5,176) (227) Capital expenditure and financial investmentPayments to acquire subsidiary undertaking - (1,145)Payments to acquire intangible fixed assets (53,473) (18,761)Receipts from sales of intangible fixed 27,848 15,615assetsPayments to acquire tangible fixed assets (3,817) (1,477)Receipts from sale of tangible fixed assets 305 -Net cash outflow from capital expenditureand financial investment (29,137) (5,768) Cash (outflow)/inflow before use of liquidresources and financing (25,466) 27,317 FinancingRedemption of ordinary shares (291) (1,702)Redemption of CRPS - (690)Bank loan repayments (299) (278)Loan notes issued 20,000 -Loan issue costs (200) -Loan notes repayments (42) (42)Net cash inflow/(outflow) from financing 19,168 (2,712) (Decrease)/increase in cash (6,298) 24,605 Notes to the AccountsFor the year ended 30 June 2007 1. The financial information set out on the attached pages does not constitutestatutory accounts for the years ended 30 June 2007 or 30 June 2006 but isderived from those accounts. Statutory Accounts for the year ended 30 June 2006have been delivered to the Registrar of Companies and those for the year ended30 June 2007 will be delivered following the Company's Extraordinary GeneralMeeting. The auditors reported on those accounts; their reports were unqualifiedand did not contain a statement under s237 (2) or (3) Companies Act 1985. 2. Analysis of comparative profit and loss account Operations excluding football Football trading trading Total £'000 £'000 £'000 Turnover 74,141 - 74,141Operating expenses (71,780) (11,781) (83,561)Operating profit/(loss) 2,361 (11,781) (9,420)Profit on disposal of intangible fixed assets - 12,299 12,299Profit on ordinary activities before interest and taxation 2,361 518 2,879 3. Turnover Turnover, which is all derived from the Group's principal activity, is analysedas follows: 2007 2006 £'000 £'000Turnover comprises:Gate receipts - Premier League 18,069 17,428Gate receipts - Cup competitions 12,770 146Sponsorship and corporate hospitality 25,427 15,730Media and broadcasting 33,734 28,687Merchandising 7,051 5,182Other 6,040 6,968 103,091 74,141 All turnover derives from the Group's principal activity in the United Kingdomand is exclusive of VAT. 4. Earnings/(loss) per share Earnings/(loss) per share has been calculated using the weighted average numberof shares in issue in each year. 2007 2006 £'000 £'000 Retained profit/(loss) 18,895 (1,575)Accretion of CRPS liability 1,091 -Diluted earnings/(loss) 19,986 (1,575) Number Number Weighted average number of shares in issue 92,843,042 94,262,771Convertible redeemable preference shares 91,845,600 - 184,688,642 94,262,771Basic earnings/(loss) per share 20.4p (1.7p)Diluted earnings/(loss) per share 10.8p (1.7p) There are no ordinary share options outstanding at the year end (2006: nil). Theconvertible redeemable preference shares were not diluted in the prior year asthey would have turned the loss per share into earnings per share. On conversionthe fully diluted share capital at year end would be 184,463,721 shares. 5. Reconciliation of operating profit/(loss) to net cash inflow from operatingactivities 2007 2006 £'000 £'000 Operating profit/(loss) 10,643 (9,420)Depreciation of tangible fixed assets 2,231 2,226Amortisation of intangible fixed assets 19,089 12,499(Profit)/loss on disposal of tangible fixed assets (14) -Increase in stocks (444) (380)(Increase)/decrease in debtors (14,138) 204(Decrease)/increase in creditors (8,699) 28,488Currency translation differences (145) 33Net cash inflow from operating activities 8,523 33,650 6. Reconciliation of net cash flow to movement in net debt 2007 2006 £'000 £'000 Opening net funds/(debt) 9,717 (13,958)(Decrease)/increase in cash in the year (6,298) 24,605Cash (inflow)/outflow from (increase)/decrease in debt (19,459) 320Cash related (increase)/decrease in net debt in the year (25,757) 24,925Accretion of CRPS liability in the year (1,091) (1,220)Other non-cash related increase in net debt in the year (40) (30)(Increase)/decrease in net debt in the year (26,888) 23,675Closing net (debt)/funds (17,171) 9,717 7. An Extraordinary General Meeting of Tottenham Hotspur plc will be held atBill Nicholson Way, 748 High Road, Tottenham, London N17 0AP at 2pm on 26November 2007. This information is provided by RNS The company news service from the London Stock Exchange