RNS Number:0034H
Soccercity PLC
31 July 2006
SOCCERCITY PLC
("Soccercity" or the "Company")
FINANCIAL RESULTS YEAR ENDED 31 JANUARY 2006
CHAIRMAN'S STATEMENT
I am pleased to report that Soccercity has progressed throughout the year in
line with our expectations. The 'Soccercity' format of a high quality leisure
offer embracing organised 5-a-side football and children's play areas continues
to increase the number of customers at each of our sites. Utilisation of our
facilities has increased steadily throughout the year with a resultant
improvement in profitability.
Overall turnover for the year was #2,018,063 (2005: #1,802,852) an increase of
12% and, more importantly, profit before interest, tax, depreciation and
amortisation was #31,760 (2005: loss #232,481). This is the first time the group
has reported a trading profit since flotation in March 2003 and reflects the
hard work that all our staff has put in during the year. The loss before tax for
the period reduced to #283,862 (2005: loss of #634,062).
We have, during the year, continued with the refinancing programme and have
secured additional equity finance and have reduced borrowings through a
combination of loan repayments and conversion of debt into equity.
Operations
Revenues continue to increase at all four sites and, with operational
improvements made during the year, we have created greater capacity at peak
times during the week.
Football, our core activity, accounts for approximately 64% of revenues with our
children's play centres, "Funcity", accounting for around 24% and bar and
function sales accounting for the balance of 12%.
In October 2005, we announced a partnership agreement with Coors brewers, which
has injected #150,000 of cash into the group in the form of a 10-year secured
loan. This partnership has enabled us to consolidate our entire bar and social
events under one brand, and as a result have seen a continued improvement in the
revenues generated from this activity.
During the year investor loans of #345,993 were repaid and new investor loans
were agreed of #255,500. In August 2005, Soccercity raised #261,125 by means of
a placing of 5,222,250 shares at 5p per share.
Material Post year events
Additional funds of #412,500 were raised in April 2006 by the issue of new
shares and, at the same time, investor loans of #155,000 were converted into
convertible loan stock. This has been used to pay down debt, reduce trade
creditors, and invest in a planned refurbishment of the centres. With improved
gearing and increasing profitability, additional funds will be available for
further expansion.
Employees
I would like to thank all the staff working in the Soccercity Group for all
their hard work and commitment during the year, which ensures that Soccercity
offers a consistently high level of organised 5-a-side football to all its
customers.
Outlook
The Board remains confident that the demand for a leisure facility which offers
both good quality, organised football and children's play facilities remains
high and, through the continued hard work of all our staff, the potential for
each of our sites is being realised.
Current trading is in line with our expectations and, once again, revenues per
month per centre are ahead of the previous year. Losses have reduced in this
first half and we expect further progress in the second half of the year.
The opening of a "Funcity" facility at our Huddersfield site was deferred until
the current fiscal year pending the opening of a dedicated marketing department
and call centre, which was opened in January 2006. The refurbishment works to
each of our existing centres have been geared towards improving the customer
experience and includes the installation of a new media system with flat panel
TVs, projection TVs and decoration to the bars and social areas. A new
Soccercity website has been designed and launched which will provide immediate
information for new and existing customers.
Whilst football remains our core activity we expect the contribution from both
the children's play areas and the function suites to continue to grow and with
the resultant growth in income from all activities, we are confident of
achieving a further improvement in results in the current year.
Norman Molyneux
Chairman
July 2006
SOCCERCITY PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
YEAR ENDED 31 JANUARY 2006
2006 2005
Notes # #
TURNOVER
Continuing operations 2,018,063 1,529,601
Acquisitions - 273,251
2,018,063 1,802,852
Cost of sales (529,625) (443,119)
GROSS PROFIT 1,488,438 1,359,733
Administrative expenses (1,456,678) (1,490,812)
Start up and integration costs - (101,402)
TRADING PROFIT/ (LOSS) 31,760 (232,481)
Depreciation (100,341) (178,375)
Amortisation of goodwill (116,451) (120,859)
Continuing operations (185,032) (462,107)
Acquisitions (69,608)
(185,032) (531,715)
OPERATING LOSS
Interest receivable and similar income 8,234 -
Interest payable and similar charges (107,064) (102,347)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (283,862) (634,062)
TAXATION 30,476
LOSS FOR THE FINANCIAL YEAR (283,862) (603,586)
Loss per share 2
Basic 0.81p 1.89p
There were no recognised gains or losses for the year other than those included
in the profit and loss account.
SOCCERCITY PLC
CONSOLIDATED BALANCE SHEET
31 JANUARY 2006
2006 2005
Notes # # # #
FIXED ASSETS
Intangible 1,802,985 1,919,435
Tangible 3 1,027,523 991,647
2,830,508 2,911,082
CURRENT ASSETS
Stocks 29,920 7,655
Debtors 4 221,676 175,088
Cash in hand 2,348 -
253,944 182,743
CREDITORS: amounts falling due
within one year 5 (1,499,541) (1,575,605)
NET CURRENT LIABILITIES (1,245,597) (1,392,862)
TOTAL ASSETS LESS CURRENT LIABILITIES 1,584,911 1,518,220
CREDITORS: amounts falling due
after more than one year 6 (355,707) (160,600)
PROVISIONS FOR LIABILITIES
AND CHARGES 18 - -
NET ASSETS 1,229,204 1,357,620
CAPITAL AND RESERVES
Called up share capital 7 375,986 322,657
Share premium account 8 2,198,019 2,095,902
Profit and loss account 8 (1,344,801) (1,060,939)
EQUITY SHAREHOLDERS' FUNDS 1,229,204 1,357,620
SOCCERCITY PLC
CONSOLIDATED CASH FLOW STATEMENT
YEAR ENDED 31 JANUARY 2006
2006 2005
# #
Reconciliation of operating loss to net cash outflow from operating
activities
Operating loss (185,032) (531,715)
Amortisation of intangible assets 116,450 120,859
Depreciation of tangible fixed assets 100,341 178,375
Increase in debtors (46,588) 28,770
Increase in stocks (22,265) (3,100)
Increase in creditors 241,358 288,298
Net cash inflow/(outflow) from operating activities 204,264 81,487
CASH FLOW STATEMENT
Net cash inflow/(outflow) from operating activities 204,264 81,487
Returns on investments and servicing of finance (98,830) (73,789)
Capital expenditure (136,217) (409,088)
Acquisitions and disposals - (35,097)
(30,783) (436,487)
Financing 33,131 497,968
Increase/(decrease) in cash 2,348 61,481
Reconciliation of net cash flow to movement in net debt
Increase/(decrease) in cash in the year 2,348 61,481
Repayment of loans 554,912 190,640
Loans acquired with subsidiary undertakings - -
New loans (432,596) (550,695)
Change in net debt 124,664 (298,574)
Reclassification of other creditors - (164,787)
Net debt at 1 February 2005 (902,600) (439,239)
Net debt at 31 January 2006 (777,936) (902,600)
Notes
1 ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention
and in accordance with applicable accounting standards.
2 LOSS PER SHARE
2006 2005
Loss Loss per share Loss Loss per share
# #
Basic and diluted 283,862 0.81p 603,586 1.89p
Amortisation of goodwill 116,451 (0.33)p 120,859 (0.38)p
Exceptional items - - 101,402 (0.32)p
Basic and diluted before
amortization of goodwill and
exceptional items 167,411 0.48p 381,315 1.19p
The calculation of loss per share is based upon the weighted average
number of shares in issue during the year of 34,968,761 (2005 - 31,935,742).
3 TANGIBLE FIXED ASSETS
Leasehold Plant and Machinery
Land and and vehicles Fixtures and
Buildings fittings
Total
Cost # # # #
At 1 February 2005 28,980 73,300 1,135,748 1,238,028
Additions - 2,456 158,761 161,217
Disposals - (25,000) (25,000)
31 January 2006 28,980 50,756 1,294,509 1,374,245
Depreciation
At 1 February 2005 16,972 15,356 214,053 246,381
On disposals -
Charge for the year 1,620 11,485 87,236 110,341
31 January 2006 18,592 26,841 301,289 346,722
Net book value
At 31 January 2006 10,388 23,915 993,220 1,027,523
At 1 February 2005 12009 57,944 921,694 991,647
Included within group additions are assets purchased under hire purchase
agreements with a cost of #107,590 and a net book value at 31 January 2006 of
#73,882 (2005 -#84,413).
4 DEBTORS
Group
2006 2005
# #
Due within one year
Trade debtors 36,703 23,337
Amounts due from group - -
undertakings
Other debtors 129,594 68,528
Prepayments and accrued income 55,379 83,223
221,676 175,088
Due after one year
Amounts due from group - -
undertakings 221,676 175,088
5 CREDITORS - amounts falling due within one year
Group
2006 2005
# #
Bank loans and overdrafts (note
17) 136,498 309,888
Loans from related parties 180,900 325,647
Other loans and hire purchase
agreements 107,180 106,465
Trade creditors 667,920 568,396
Amounts owed to group
undertakings - -
Corporation tax 22,038 22,037
Other tax and social security 232,525 131,512
Other creditors 111,133 2,996
Accruals and deferred income 41,347 108,664
1,499,541 1,575,605
6 CREDITORS - amounts falling due after more than one year
Group
2006 2005
# #
Bank loans (note 17) - -
Loans from related parties 200,696 68,345
Other loans and hire purchase
agreements 155,011 92,255
355,707 160,600
7 SHARE CAPITAL
Allotted, called up and
Authorised fully paid
# No #
Ordinary shares of #0.01 each
At 1 February 2005 1,000,000 32,265,624 322,657
Issued in the year - 5,332,956 53,329
At 31 January 2006 1,000,000 37,598,580 375,986
On 27th April 2005, the company issued 110,456 ordinary shares of 1p each at a
price of 22p per share.
On 2nd August 2005 the company issued 5,222,500 ordinary shares of 1p each at a
price of 5p per share.
8 RESERVES
2006 2005
Share premium account # #
At 1 February 2005 2,095,902 1,963,678
Premium on shares issued in the
period 232,000 176,351
Expenses of share issue (129,883) (44,127)
At 31 January 2006 2,198,019 2,095,902
Profit and loss account Group Company
2006 2006
# #
At 1 February 2005 (1,060,939) (379,479)
Loss for the period (283,862) (283,862)
At 31 January 2006 (1,344,801) (663,341)
9 GOING CONCERN AND POST BALANCE SHEET EVENTS
The Group has made a loss for the year after taxation of #283,862 (2005:
#603,586) and has net current liabilities of #1,245,597 (2005: #1,392,862).
However, the Group achieved a profit before depreciation and amortisation of
#31,760 (2005: loss of #232,481). This improvement has been achieved by
increasing sales by #215,211 and reducing personnel costs by over 46% to
#387,185. The directors anticipate and have forecasted that the improvements
achieved during the year, together with an aggressive sales strategy for the
forthcoming year will reflect favourably in future trading performance and
generate positive cash flows.
Additional funds for the group were raised in April 2006 of #412,500 by the
issue of 41,250,000 new shares and #155,000 of investor loans has been converted
into convertible loan stock. The new funds have been used, to develop the
facilities at each centre, reduce creditors and improve the cashflow of the
group.
The group is currently operating within its lending facilities and an increase
in the profitability of the group is forecast for the remainder of the year.
Following the introduction of the new equity, the conversion of existing loans
and with increased sales and profitability the directors are confident that
their forecasts will be achieved, and hence consider it appropriate for the
accounts to be prepared on a going concern basis.
10 ANNUAL REPORT
Copies of the Annual Report have been despatched to shareholders today.
Additional copies are available to the public, free of charge, at the Company's
registered office: Douglas Bank House, Wigan Lane, Wigan, WN1 2TB.
The financial information contained in this announcement does not represent the
full statutory accounts of the group.
Statutory accounts for the year ended 31 January 2006 have not yet been
delivered to the Registrar of Companies. They will carry an unqualified audit
report and no statement under section 237 (2) or (3) of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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