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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