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Manchester United Plc 2013 First Quarter Results

Cautionary Statement

This press release contains forward-looking statements. You should not place undue reliance on such statements because they are subject to numerous risks and uncertainties relating to the Company’s operations and business environment, all of which are difficult to predict and many are beyond the Company’s control. Forward-looking statements include information concerning the Company’s possible or assumed future results of operations, including descriptions of its business strategy. These statements often include words such as “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible” or similar expressions. The forward-looking statements contained in this press release are based on our current expectations and estimates of future events and trends, which affect or may affect our businesses and operations. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual financial results or results of operations and could cause actual results to differ materially from those in these forward-looking statements. These factors are more fully discussed in the “Risk Factors” section and elsewhere in the Company’s Registration Statement on Form F-1, as amended (File No. 333-182535) and the Company's Annual Report on Form 20-F (File No. 001-35627).

     

Key Performance Indicators

 
Three months ended
30 September
2012   2011
 

Commercial % of total revenue

56.4% 46.8%
Nike and Aon % of Commercial 33.1% 38.2%
Partners and other % of Commercial 66.9% 61.8%
Broadcasting % of total revenue 18.0% 29.7%
Matchday % of total revenue 25.6% 23.5%
Home Matches Played
FAPL 3 3
UEFA competitions 1 1
Domestic Cups 1 -
Away Matches Played*
UEFA competitions - 1
Domestic Cups - 1
*Away matches played includes games at a neutral venue, where appropriate
Other
Employees at period end 735 670
Staff costs % of revenue 52.8% 51.3%
 
             
Phasing of Premier League home games Quarter 1   Quarter 2   Quarter 3   Quarter 4   Total
2012/13 season* 3 7 5 4 19
2011/12 season 3 7 5 4 19
2010/11 season 3   7   5   4   19
 

*Note - Games can be rescheduled for TV or clashes due to domestic cup competitions. We will update each Quarter.

     

CONSOLIDATED INCOME STATEMENT

(unaudited; in £ thousands, except per share data)

 
Three months ended

30 September

 

 

      2012   2011
Revenue 76,316   73,782
Operating expenses (74,811) (66,426)
Profit on disposal of players’ registrations       4,818   5,624
Operating profit       6,323   12,980
Finance costs (12,476) (19,619)
Finance income       89   284
Net finance costs       (12,387)   (19,335)
Loss on ordinary activities before tax (6,064) (6,355)
Tax credit       26,532   1,385
Profit/(loss) for the period from continuing operations (1)       20,468   (4,970)

Attributable to:

Owners of the Company

20,386 (5,018)
Non-controlling interest       82   48
        20,468   (4,970)
 
Earnings/(loss) per share attributable to the equity holders of the Company during the period
Basic and diluted earnings/(loss) per share (Pounds Sterling)       0.13   (0.03) (2)
 

(1) Also referred to as Net Income.

(2) As adjusted retrospectively to reflect the reorganisation transactions described in supplemental note 1.

             

CONSOLIDATED BALANCE SHEET

(unaudited; in £ thousands)

 
        30 September

2012

    30 June

2012

    30 September

2011

ASSETS
Non-current assets
Property, plant and equipment 250,479 247,866 244,746
Investment property 14,169 14,197 13,816
Goodwill 421,453 421,453 421,453
Players’ registrations 135,634 112,399 120,234
Trade and other receivables 1,500 3,000 13,000
Non-current tax receivable - - 2,500
Deferred tax asset       24,589     -     -
        847,824     798,915     815,749
Current assets
Derivative financial instruments 1,228 967 643
Trade and other receivables 69,887 74,163 55,860
Current tax receivable 3,551 2,500 -
Cash and cash equivalents       52,527     70,603     64,967
        127,193     148,233     121,470
Total assets       975,017     947,148     937,219
 

         

CONSOLIDATED BALANCE SHEET (continued)

(unaudited; in £ thousands)

 
        30 September

2012

  30 June

2012 (1)

  30 September

2011 (1)

EQUITY AND LIABILITIES
Equity
Share capital 52 50 50
Share premium 68,666 25 25
Merger reserve 249,030 249,030 249,030
Hedging reserve 791 666 482
Retained earnings/(deficit)       8,069   (12,671)   (30,818)
Equity attributable to owners of the Company       326,608   237,100   218,769
Non-controlling interests       (1,921)   (2,003)   (2,282)
        324,687   235,097   216,487
Non-current liabilities
Derivative financial instruments 1,701 1,685 -
Trade and other payables 23,232 22,305 23,073
Borrowings 353,966 421,247 426,299
Deferred revenue 7,131 9,375 16,106
Provisions 1,247 1,378 1,795
Deferred tax liabilities       25,608   26,678   53,347
        412,885   482,668   520,620
Current liabilities
Derivative financial instruments - - 1,725
Current tax liabilities 1,128 1,128 1,127
Trade and other payables 79,437 83,664 55,197
Borrowings 5,740 15,628 6,942
Deferred revenue 150,714 128,535 134,642
Provisions       426   428   479
        237,445   229,383   200,112
Total equity and liabilities       975,017   947,148   937,219
 

(1) As adjusted retrospectively to reflect the reorganisation transactions described in supplemental note 1.

                   

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(unaudited; in £ thousands)

 
       

Share capital

 

Share premium

 

Merger reserve

 

Hedging reserve

 

Retained earnings/ (deficit)

 

Total attributable to owners of the Company

 

Non- controlling interests

 

Total equity

Balance at 1 July 2011       -   249,105   -   (466)   (25,886)   222,753   (2,330)   220,423
(Loss)/profit for the period - - - - (5,018) (5,018) 48 (4,970)
Cash flow hedges, net of tax - - - 948 - 948 - 948
Currency translation differences       -   -   -   -   86   86   -   86
Total comprehensive income/(loss) for the period - - - 948 (4,932) (3,984) 48 (3,936)
Proceeds from shares issued 50 25 - - - 75 - 75
Capital reorganisation (1)       -   (249,105)   249,030   -   -   (75)   -   (75)
Balance at 30 September 2011       50   25   249,030   482   (30,818)   218,769   (2,282)   216,487
Profit for the period - - - - 28,004 28,004 279 28,283
Cash flow hedges, net of tax - - - 184 - 184 - 184
Currency translation differences       -   -   -   -   143   143   -   143
Total comprehensive income for the period - - - 184 28,147 28,331 279 28,610
Dividends       -   -   -   -   (10,000)   (10,000)   -   (10,000)
Balance at 30 June 2012       50   25   249,030   666   (12,671)   237,100   (2,003)   235,097
Profit for the period - - - - 20,386 20,386 82 20,468
Cash flow hedges, net of tax - - - 125 - 125 - 125
Currency translation differences       -   -   -   -   27   27   -   27
Total comprehensive income for the period - - - 125 20,413 20,538 82 20,620
Equity settled share-based payments - - - - 327 327 - 327
Proceeds from shares issued (2)       2   68,641   -   -   -   68,643   -   68,643
Balance at 30 September 2012       52   68,666   249,030   791   8,069   326,608   (1,921)   324,687
 

(1) Adjusted retrospectively to reflect the reorganisation transactions described in supplemental note 1.

(2) See supplemental note 1.2.

     

CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited; in £ thousands)

 
Three months ended

30 September

 
        2012   2011
Cash flows from operating activities  
Cash generated from operations (note 2) 33,883 22,560
Interest paid (24,503) (21,124)
Interest received 85 146
Income tax paid       (202)   (3,210)
Net cash generated from/(used in) operating activities       9,263   (1,628)
Cash flows from investing activities
Purchases of property, plant and equipment (3,396) (6,411)
Purchases of investment property - (7,364)
Purchases of players’ registrations (34,897) (51,034)
Proceeds from sale of players’ registrations       5,364   3,966
Net cash used in investing activities       (32,929)   (60,843)
Cash flows from financing activities
Proceeds from issue of shares 70,258 -
Repayment of borrowings       (62,704)   (23,126)
Net cash generated from/(used in) financing activities       7,554   (23,126)
Net decrease in cash and cash equivalents (16,112) (85,597)
Cash and cash equivalents at beginning of period 70,603 150,645
Exchange losses on cash and cash equivalents       (1,964)   (81)
Cash and cash equivalents at end of period       52,527   64,967
 

MANCHESTER UNITED plc SUPPLEMENTAL NOTES

1 General information

Manchester United plc (‘the Company’) and its subsidiaries (together ‘the Group’) is a professional football club together with related and ancillary activities. The Company is incorporated under the Companies Law (2011 Revision) of the Cayman Islands. The Company became the parent of the Group as a result of reorganisation transactions which were completed immediately prior to the completion of the public offering of Manchester United plc shares on the New York Stock Exchange (“NYSE”) in August 2012 as described more fully below.

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