MANCHESTER UNITED PLC.


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MANCHESTER UNITED PLC Preparatory RESULTS 2001 1 OCTOBER 2001 Motivation INTRODUCTION Sir Roland Smith Diagram OF RESULTS Dwindle Kenyon RESULTS IN DETAIL David Gill (P&L/B. SHEET/Income) System and FUTURE Dwindle Kenyon QUESTIONS Review OF RESULTS Subside Kenyon
Transcripts
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MANCHESTER UNITED PLC PRELIMINARY RESULTS 2001 1 OCTOBER 2001

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AGENDA INTRODUCTION Sir Roland Smith OVERVIEW OF RESULTS Peter Kenyon RESULTS IN DETAIL David Gill (P&L/B. SHEET/CASHFLOW) STRATEGY & FUTURE Peter Kenyon QUESTIONS

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OVERVIEW OF RESULTS Peter Kenyon

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Summary of Results Record turnover up 12% to £129.6m (2000 - £116.0m) Operating benefit before player amortization and outstanding expenses of £31.7m (2000 - £30.1m) Player exchanging (amortization and transfers) of £7.9m (2000 - £11.5m) MUTV/Hotels misfortunes of £0.6m (2000 - misfortunes of £1.0m) Exceptional expenses of £2.1m (2000 - £1.3m) Profit before duty £21.8m (£16.8m) Total profit expanded by 5% to 2.0p (1.9p) - profit secured 2.9 times (2.4) EPS 5.8p (4.6p) [Pre players and excellent expenses 8.6p (8.1p)]

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RESULTS IN DETAIL David Gill

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Summary Profit & Loss Account Year finished 31 July 2001 £’000 Year finished 31 July 2000 £’000 Turnover 129,569 116,005 Profit before player amortization and exceptionals 31,680 30,073 Player amortisation (10,173) (13,092) Exceptional costs (2,073) (1,300) MUTV/Hotels (602) (982) Profit on player disposals 2,219 1,633 Net premium receivable 727 456 Profit before taxation 21,778 16,788 Taxation (6,841) (4,838) Profit after taxation 14,937 11,950 Earnings for every offer - basic 5.8p 4.6p - pre player trading 8.6p 8.1p Dividend for each share 2.0p 1.9p

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Trading Background Premier League Champions for 7 th time in 9 years and for the third sequential season Quarter-last of European Champions League (came to quarter-last or better in each of the last 5 seasons) Gate receipts up 26% to £46.2m Stadium worked at full limit of 67,700 for the entire season (2000 - normal limit of 58,000) 27 home recreations (up from 26) - 1 additional residential container diversion Aggregate participation 1,811,000 (1,497,900) - normal of 67,100 (57,600) TV wage up 2% to £31.2m - increments from FAPL and ECL in part counterbalance by no wage in 2001 from World Club Championship, Inter Continental Cup and UEFA Super Cup (Note: £7m stores got from new FAPL TV contracts excluded (being conceded until 2001/02 to 2003/04)

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Trading Background - Cont’d Sponsorship salary up 21% to £22.5m - Vodafone and extra pay from Platinum patrons Record meeting and providing food wage of £7.8m - increment in match day occasions (MU in addition to non MU) and the extra offices in the augmented stadium Merchandising & Other turnover down 7% to £21.9m - edge sway and also we lessen stock levels ahead of time of handover to Nike (stocks down 45%) Administrative costs higher by £10m - expanded player pay expenses of £4.5m and extra devaluation charges of £1.5m Exceptional expenses of £2.1m - £1.8m from promoting rebuilding in addition to £0.3m of Football League Pension Scheme

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Turnover Analysis Year finished 31 July 2001 £’000 Year finished 31 July 2000 £’000 Percent Change Gate Receipts 46,202 +26% 36,626 Television 31,237 +2% 30,546 Sponsorship 22,451 +21% 18,513 Conference & Catering 7,754 +16% 6,698 Merchandising & Other 21,925 -7% 23,622 Total Sales 129,569 +12% 116,005

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Turnover Analysis Merchandising & Other Merchandising & Other Gate Receipts Gate Receipts Conference & Catering Conference & Catering Sponsorship & Royalties Sponsorship & Royalties Television Note: Improved blend of turnover - 77% got from high edge entryway, sponsorship and TV income streams (2000 - 74%)

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Profit before player exchanging and extraordinary expenses Year finished 31 July 2001 £’000 Year finished 31 July 2000 £’000 Percent Change Turnover 129,569 +12% 116,005 Cost of Sales (22,120) +10% (20,134) Gross Profit 107,449 +12% 95,871 Gross Margin 83% 83% Operating Expenses (75,769) +15% (65,798) Operating Profit 31,680 +5% 30,073 Operating Margin 24.5% 25.9% MUTV/Hotels (602) - 39% (982) Interest Receivable 727 +59% 456 Profit before player exchanging and uncommon costs 31,805 +8% 29,547

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Operating Expenses Year finished 31 July 2001 £’000 Year finished 31 July 2000 £’000 Percent Change Wages and salaries 50,002 +12% 44,791 Other working costs 25,767 +23% 21,007 Total 75,769 +15% 65,798 Average number of employees 536 526 Temporary match day staff 1,346 1,275 Staff Costs/Turnover 39% 39% Note: Player pay expenses expanded by £4.5m (counting government managed savings costs)

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Impact of European Champions Cup EUROPEAN CHAMPIONS CUP 00/01 99/00 £m £m Turnover 23.6 20.9 Operating Profit 19.2 16.9 Margin 81% 81% % of aggregate operating 60% 56% benefit before player exchanging and remarkable things NOTE: Qtr-last of European Champions Cup in both years Note: ECL incorporates variable expenses just - no settled player wage allotment

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Balance Sheet 31 July 2001 £’000 31 July 2000 £’000 Fixed Assets - Tangible 122,710 124,509 - Investments (1,128) (652) - Intangible (players) 71,117 32,315 Net (obligation)/money (1,237) 10,563 Debtors/Stocks 22,790 21,706 Creditors, Tax, Etc. (46,902) (41,693) Deferred Income (42,658) (31,798) NET ASSETS 124,692 114,950 NET ASSETS (pence per offer) 48p 44p

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Cash Flow Year finished 31 July 2001 £’000 Net money at 1 August 2000 10,563 Cash created from working activities 50,882 Transfer expense expenditure (43,310) Dividends/Interest/Tax (11,844) Fixed resource investment (7,802) Grant received 400 Investment in associate (126) (11,800) Net obligation at 31 July 2001 (1,237)

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Gross money balances Average parity 99/00 - £11m 00/01 - £14m Average base rate 99/00 - 5.66% 00/01 - 5.74%

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Capital Expenditure Year ended Projected 31/07/01 y/e 31/07/02 â£â€™000 £,000 Carrington preparing ground (II) 1,768 5,732 Stadium expansion 1,139 - Ticket/Membership building 481 1,654 Land/Property/Car Parks 1,641 - Stadium scoreboards 303 150 Plant, apparatuses, PCs, cars 2,452 Other recognized projects - 7,364 7,784 14,900 Movement in creditors 1,448 Disposal continues (1,430) Per income statement 7,802

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Enhancing shareholder esteem FINANCIAL Growth in top-line income more than supported increment in expenses - increments at the key working benefit level of £1.6m and at the PBT level of £5.0m INVESTMENT Infrastructure subsidizing now finish aside from Carrington Phase II (because of be finished by Spring 2002) £50m gross interest in players Post year end transfer of Stam for £15.25m COMMERCIAL Agreements came to develop momentum income streams and grow new ones (Nike, Financial Services, Media and so on.) Renegotiation of agreement of key players inside concurred and sensible parameters

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STRATEGY & FUTURE PROSPECTS Peter Kenyon

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Strategy - “Liberating the brand” Gate receipts Sponsorship CORE ACTIVITY = FOOTBALL Conference & Catering Television On-field Success Increasing Fan-base (Loyalty & Affinity) Products & Services/Brand Extension Monetising the Fan-base Examples Financial Services Merchandising (Nike) Media

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Future Prospects - Football Players Majority of first group squad secured on new contracts Young, fantastic squad intended to contend at the most elevated amount in the UK and Europe New universal exchange rules - acceptable result. Asset report qualities ensured whilst intere

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