RNS Number:4241J
Aberdeen Football Club PLC
31 March 2003



ABERDEEN FOOTBALL CLUB PLC


CHAIRMAN'S STATEMENT



The Board of Aberdeen Football Club plc presents the Group's unaudited results
for the six months ended 31 December 2002.

results to 31 december 2002

In the current period, the Club's ticketing and broadcasting income showed an
increase from the previous period primarily due to qualification for the UEFA
Cup, with the games against Nistru Otaci and Hertha Berlin generating
significant revenues. Additionally, the investment made in the Pittodrie Club
Shop in 2001 has resulted in merchandising income more than doubling compared to
the same period last year. A more detailed analysis of turnover is shown in note
2.


        When Ebbe Skovdahl gave notice of his intention to resign as football
        manager of the Club in November 2002, the Board concluded that it would
        be to the Club's benefit to seek an immediate replacement rather than
        wait until the end of the current season. Consequently, the appointment
        of the new management team in December 2002 resulted in termination
        payments being made to the football manager and three other members of
        the Club's coaching staff. The total of these payments amounted to
        #192,000 and is included as an exceptional item in the profit and loss
        account.



Elsewhere, the Club's prudent approach towards new player signings has resulted
in a significant reduction in the amortisation charge for players' registrations
from #384,000 to #91,000 and this is shown in note 3.



As a consequence of the above, the operating loss for the 6 month period has
decreased from #1.198 million to #591,000 and the loss after interest and
taxation was reduced from #1.231 million to #723,000.



The above results were achieved after playing 11 home games in the Bank of
Scotland Premierleague (SPL); two home games in the CIS Insurance League Cup and
two home games in the UEFA Cup. This compares with 10 in the SPL; 1 in the CIS
Insurance League Cup and none in the UEFA Cup in the previous period.





football

As intimated above, Ebbe Skovdahl tendered notice of his intention to resign as
manager of the Club in November 2002, at which time the Board of Directors
concluded that the time was right for an immediate change, rather than waiting
until the end of the season. The rationale behind the move was to allow Ebbe's
successor time to implement any changes he wished to be made in order that the
Club be best positioned for the start of season 2003/4.



There is little doubt that on-field performances for the current season have
been, in the main, extremely disappointing with Cup exits at the hands of Hearts
and Dundee particularly hard to take. League form, especially at home has,
frankly, been unacceptable with the high number of defeats resulting in the Club
finding itself competing in the bottom half of the table for the vast majority
of the campaign. On a brighter note, there have been highlights such as the UEFA
Cup ties against Hertha Berlin.

Although the transfer window occurred after the period covered in this interim
report, some of the changes referred to above have already taken place with
Steve Tosh, Paul Sheerin, Michael Hart and Leigh Hinds all arriving and Roberto
Bisconti, Ben Thornley and Patrizio Billio moving on. Steve Paterson and his
team will use the remainder of the current season to assess the rest of the
playing squad with Russell Anderson already having committed his future to the
Club.









future outlook

The Board of Directors is convinced that Steve Paterson, Duncan Shearer, Oshor
Williams and Neil Cooper have the expertise and experience required to take the
Club back where it belongs at the forefront of Scottish football and competing
regularly in Europe.

However, as is always the case when a new manager comes on board, it will take
time for Steve and his team to mould the playing staff into a squad that he is
entirely happy with. Quite rightly, he has gone on record as saying that the
time to judge him will be next season, by which time players he does not see as
part of his plans will have been moved on with others on board to take their
place.

The Club is committed to continuing to reduce the percentage of wages in
relation to turnover and as such we will be looking to bring more players
through the elite youth development programme. Ross O'Donoghue, Stephen Payne
and Scott Muirhead have all made the breakthrough during the current season and
there are others knocking on the door ready to take the step up over the coming
months.

To complement this approach, the manager will continue to look for experienced
professionals who it is believed will add to the overall quality of the squad
without compromising the budget parameters set by the Club in order to achieve
the commitment stated above.

With this being the Club's centenary year, it is only right that we look ahead
to the beginning of our second century in business with optimism. And with one
of the brightest and talented young management teams in the country now in
place, I believe that optimism is justified.

The decision by UEFA not to award the hosting of the European Championship
finals in 2008 to Scotland and Ireland has enabled the Club to take a step back
in terms of arriving at any final conclusions with regards to future stadium
redevelopment or relocation. This will allow the Club to consult fully with all
of its stakeholders and consider all of the various viewpoints prior to
determining the next move. At the time of writing, the future of the SPL looks
more encouraging than it did a couple of months ago. Having reached agreement in
principle with the "Old Firm", the other ten SPL clubs, including Aberdeen, will
withdraw their resignations providing we are able to work through the detail and
reach a fair and equitable final solution. With broadcasting income less than
originally hoped for, the onus is now on all of the clubs to work more closely
together to ensure the financial security of the league through the maximising
of commercial opportunities including the broadcasting agreement that will take
effect in season 2004/5.

As stated above, the on-field performances for the current season have been very
disappointing. This, combined with the poor scheduling of SPL fixtures and the
fall in broadcasting income, will result in a deteriorating financial
performance in the second half of the year and further trading losses are
expected for the remainder of the financial year ended 30 June 2003.

The Club has undertaken a fundamental review of all aspects of the business and
is determined to ensure that costs are driven down and that wages are clearly
linked to a successful team on the park. The Club is far from alone in facing
these challenges and we believe that the whole survival of the professional game
in Scotland is at risk unless there are radical changes in the way we conduct
our business.

The Board of Directors is committed to facing these challenges head on in order
to ensure the Club prospers in the years ahead.

Stewart Milne

Chairman



31 March 2003


GROUP PROFIT AND LOSS ACCOUNT

Six months ended 31 December 2002
                                                                          Unaudited 6    Unaudited      Audited
                                                                          months ended   6 months       year
                                                                          31 Dec         ended          ended
                                                                          2002           31 Dec 2001    30 June 2002
                                                                          #'000           #'000          #'000
                                                                                                  

                                                               Note                     

Turnover                                                       2          4507           3492           7555

Operating charges
Recurring                                                      3          (4906)         (4690)         (9389)
Exceptional                                                    3          (192)          -              (300)

Total Operating Charges                                                   (5098)         (4690)         (9689)

Operating Loss                                                            (591)          (1198)         (2134)

Profit/(loss) on disposal of players' registrations                       -              84             (9)

Loss Before Interest and Taxation                                         (591)          (1114)         (2143)

Interest payable and similar charges                                      (132)          (117)          (257)

Loss on Ordinary Activities Before Taxation                               (723)          (1231)         (2400)

Tax on loss on ordinary activities                             4          -              -              -

Retained Loss for the Period                                              (723)          (1231)         (2400)

Loss per share - basic and diluted                             5          (12.4)p        (21.1)p        (41.1)p




All amounts relate to continuing activities



There were no recognised gains or losses in the current or prior period other
than those included in the Profit and Loss Account.

GROUP BALANCE SHEET

As at 31 December 2002
                                                                          Unaudited      Unaudited      Audited
                                                                          as at          as at          as at
                                                                          31 Dec         31 Dec         30 June
                                                                          2002           2001           2002
                                                                Note      #'000          #'000          #'000

Fixed Assets
Intangible assets                                               6         263            611            209
Tangible assets                                                 7         10015          10268          10156

                                                                          10278          10879          10365
Current Assets
Stock                                                                     112            75             77
Debtors                                                                   708            1302           950
Cash at bank and in hand                                                  316            225            96

                                                                          1136           1602           1123


Creditors: amounts falling due within one year                            5529           4552           4201

Net Current Liabilities                                                   (4393)         (2950)         (3078)

Total Assets Less Current Liabilities                                     5885           7929           7287


Creditors: amounts falling due after more than one year                   2009           2018           1974

Deferred Income
Deferred grant income                                                     1478           1532           1508
Other deferred income                                                     1198           1287           1882

                                                                          2676           2819           3390

                                                                          1200           3092           1923

Capital and Reserves
Called up share capital                                                   584            5843           584
Share premium account                                                     -              3254           -
Revaluation reserve                                                       4902           4902           4902
Profit and loss account                                                   (4286)         (10907)        (3563)

Equity Shareholders' Funds                                                1200           3092           1923






GROUP CASH FLOW STATEMENT

Six months ended 31 December 2002
                                                                          Unaudited      Unaudited      Audited
                                                                          6 months       6 months       Year
                                                                          ended          ended          Ended
                                                                          31 Dec         31 Dec         30 June
                                                                          2002           2001           2002

                                                            Note          #'000          #'000          #'000

Net cash outflow from operating activities                  8             (670)          (471)          (210)

Returns on investments and servicing of finance                           (124)          (117)          (256)

Taxation                                                                  -              -              -

Capital expenditure                                         9             (167)          (76)           (218)


Net cash outflow before financing                                         (961)          (664)          (684)

Financing                                                                 (15)           490            445

Decrease in cash in the period                                            (976)          (174)          (239)








Reconciliation of Net Cash Flow to Movement in Net Debt

Decrease in cash in the period                                           (976)          (174)           (239)
Cash outflow/(inflow) from decrease/(increase) in debt and               15             (490)           (445)
lease financing

Changes in net debt resulting from cash flows                            (961)          (664)           (684)
New finance leases                                                       (44)           -               -
Non cash movement - amortisation of issue costs                          (8)            -               (1)
Opening net debt                                                         (4496)         (3811)          (3811)

Closing net debt                                                         (5509)         (4475)          (4496)


NOTES TO INTERIM REPORT

Six months ended 31 December 2002





Basis of Preparation

The Interim Report has been prepared on the basis of the accounting policies set
out in the Company's statutory accounts for the year ended 30 June 2002.



The financial information presented is unaudited and does not amount to full
statutory accounts within the meaning of the Companies Act 1985. Full accounts
for the year ended 30 June 2002, upon which Deloitte & Touche gave an
unqualified audit report, have been delivered to the Registrar of Companies.



Turnover
                                                                          Unaudited      Unaudited      Audited
                                                                          6 months       6 months       year
                                                                          ended          ended          ended
                                                                          31 Dec         31 Dec         30 June
                                                                          2002           2001           2002
                                                                          #'000          #'000          #'000

Customer & Ticketing Services                                             1685           1252           2698
Broadcasting Income and League & Cup Bonuses                              722            583            1531
Corporate Hospitality & Catering                                          713            750            1550
Club Sponsorships & Corporate Advertising                                 274            279            575
Merchandising                                                             762            343            567
Lotteries & Others                                                        351            285            634

                                                                          4507           3492           7555




Operating Charges - Recurring
                                                                          Unaudited      Unaudited      Audited
                                                                          6 months       6 months       year
                                                                          ended          ended          ended
                                                                          31 Dec         31 Dec         30 June
                                                                          2002           2001           2002
                                                                          #'000          #'000          #'000

Amortisation of players' registrations                                    91             384            744
Other operating charges                                                   4815           4306           8645

                                                                          4906           4690           9389

The exceptional costs relate to the termination of contracts with football management.



Taxation

Due to the availability of unutilised tax losses, no provision for taxation is
required.



Loss Per Share

Loss per share has been calculated by dividing the loss after taxation for each
period by the weighted average number of Ordinary Shares in issue during the
period.




Intangible Assets
                                                                          Unaudited      Unaudited      Audited
                                                                          6 months       6 months       year
                                                                          ended          ended          ended
                                                                          31 Dec         31 Dec         30 June
                                                                          2002           2001           2002
Players' registrations                                                    #'000          #'000          #'000

Cost
At 1 July                                                                 501            2554           2554
Additions                                                                 147            60             113
Disposals                                                                 -              (43)           (2166)

At period end                                                             648            2571           501

Amortisation
At 1 July                                                                 327            1640           1640
Charge for the period                                                     91             384            744
Disposals                                                                 -              (26)           (2057)

At period end                                                             418            1998           327

Net book value at period end                                              230            573            174




6.     Intangible Assets (continued)
                                                                          Unaudited      Unaudited      Audited
                                                                          6 months       6 months       year
                                                                          ended          ended          ended
                                                                          31 Dec         31 Dec         30 June
                                                                          2002           2001           2002
Goodwill                                                                  #'000          #'000          #'000

Cost
At 1 July                                                                 38             -              -
On consolidation of subsidiary                                            -              39             38

At period end                                                             38             39             38

Amortisation
At 1 July                                                                 3              -              -
Charge for the period                                                     2              1              3

At period end                                                             5              1              3

Net book value at period end                                              33             38             35

Total net book value of intangible assets at period end                   263            611            209




tangible assets

In accordance with Financial Reporting Standard 15, fixed assets are stated at
cost or valuation and depreciated over their estimated useful lives. Freehold
land and stands, executive boxes and permanent fixtures are now held at
valuation. All such assets were revalued by the directors on 30 June 2001 with
reference to a depreciated replacement cost valuation performed by Messrs F. G.
Burnett on 9 March 2001 restricted to an existing use, discounted cash flow
valuation.


RECONCILIATION of operating LOSS to net cash OUTFLOW from OPERATING
ACTIVITIES
                                                                          Unaudited      Unaudited      Audited
                                                                          6 months       6 months       year
                                                                          ended          ended          ended
                                                                          31 Dec         31 Dec         30 June
                                                                          2002           2001           2002
                                                                          #'000          #'000          #'000

Operating loss                                                            (591)          (1198)         (2134)
Amortisation of players' registrations                                    93             384            747
Depreciation                                                              205            192            392
Amortisation of grants                                                    (30)           (34)           (58)
Increase in stock                                                         (35)           (75)           (38)
Decrease/(increase) in debtors                                            242            (439)          (80)
(Decrease)/increase in creditors                                          (554)          699            961

Net cash outflow from operating activities                                (670)          (471)          (210)






GROSS CASH FLOW ON CAPITAL EXPENDITURE

Payments to acquire players' registrations                                (147)          (60)           (113)
Payments to acquire tangible fixed assets                                 (20)           (117)          (205)
Receipts from sale of players' registrations                              -              101            100

                                                                          (167)          (76)           (218)





CONTINGENT LIABILITIES

At 31 December 2002 additional transfer fees to a maximum amount of #60,000 (31
December 2001, #172,000; 30 June 2002, #50,000) could become payable under
transfer contracts if certain contractual conditions are met.



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