Key Points
- Achieved 4Q total revenues of £142.2 million, which
contributed to record fiscal 2024 total revenues of £661.8 million
driven by record Commercial and Matchday revenues
- 4Q Matchday revenues were £32.6 million and contributed to
record fiscal 2024 Matchday revenues of £137.1 million with eight
less home matches played during the year
- Other operating expenses for fiscal 2024 improved by £13.8
million versus fiscal 2023, due to fewer home matches played and
lower associated non-personnel football costs
- Achieved record ticket sales and attendance in 2023/24,
including a doubling of women’s matchday revenues, and the highest
ever number of paid global memberships sold at 438k; for the
2024/25 season, general admission season tickets sold out at the
fastest rate ever and the waiting list for season tickets has
increased to 171k
- During 4Q, investments in Old Trafford included new
hospitality facilities, expansion of rail seating and kiosk
refurbishments to support continued growth and enhance fan
engagement and atmosphere
- Club recently announced an extension of its new
front-of-shirt sponsorship deal with Qualcomm’s Snapdragon brand to
2029
- Construction commenced in July on the main building of the
Carrington Training Complex to support an improved performance
environment
- New 2024/25 season kits achieved a combined record-breaking
launch
- E-commerce transitioned to an in-house operation in
partnership with SCAYLE on 5 September
- The men’s first team has been strengthened by the additions
of Manuel Ugarte, Joshua Zirkzee, Leny Yoro, Matthijs de Ligt and
Noussair Mazraoui; while the women’s team was strengthened with new
signings Celin Bizet, Dominique Janssen, Elizabeth Terland, Anna
Sandberg and Simi Awujo and the permanent signing of Melvine
Malard
- In January 2024, a club-wide business transformation plan
commenced and these efforts accelerated into 4Q24 with the aim of
improving operating efficiency via cost-savings, headcount
rationalization and changes to the organizational structure; these
improvements are expected to impact fiscal years 2025 and 2026 and
are anticipated to contribute towards investments in football and
other club projects
- For full year fiscal 2025, the Company introduces revenue
guidance of £650 to £670 million and adjusted EBITDA guidance of
£145 million to £160 million, which reflects a
partial year impact of recent restructuring initiatives
Manchester United (NYSE: MANU; the “Company” and the “Group”) –
one of the most popular and successful sports teams in the world –
today announced financial results for the 2024 fiscal fourth
quarter and twelve months ended 30 June 2024.
Management Commentary
Omar Berrada, Chief Executive Officer, commented, “It has been a
busy off-season for the club with successful training camps for
both our men’s and women’s teams. We have strengthened our men’s
first team with five exciting players and put a new football
leadership structure in place to provide greater support to our
manager, Erik ten Hag. Dan Ashworth was appointed Sporting Director
and Jason Wilcox joined us as Technical Director, two extremely
experienced and highly respected professionals who will add great
depth to our team. We have added six players to our women’s team
and are investing to ensure all of our teams have access to
world-class training facilities at a fully renovated Carrington. We
are also delighted to have extended our Principal Partnership with
Snapdragon, after an excellent start, for a further two years in
addition to the initial three-year term.
“As I embark on my new role as Chief Executive Officer of this
historic club, we are all extremely focused on working collectively
to create a bright future with football success at the heart of it.
We are working towards greater financial sustainability and making
changes to our operations to make them more efficient, to ensure we
are directing our resources to enhancing on-pitch performance.
Today, we announce new guidance for fiscal 2025 which reflects a
partial year impact of the transformative cost-savings and
organizational changes that we have been busy implementing over the
summer.
“Ultimately, the strength of Manchester United is driven by the
passion and loyalty of our supporters. Our clear objective is to
return the club to the top of European football. Everyone at the
club is aligned on a clear strategy to deliver sustained success
both on and off the pitch, for the ultimate benefit of our fans,
shareholders, and hugely diverse range of stakeholders.”
Recent Restructuring and Cost-Savings
Initiatives
Beginning in the third quarter of fiscal 2024, the club
commenced a business transformation plan to unlock operational
efficiency with the ultimate goal of improving the club’s financial
sustainability and maximize the resources available to improve
football operations. These initiatives included installing a new
executive leadership team covering both the business and sporting
side, streamlining the organizational structure and, following a
thorough cost review by Interpath Advisory, the club implemented a
significant cost rationalization program.
In January 2024, the club announced the appointment of new CEO
Omar Berrada and a new football leadership team was installed under
his leadership, creating a new reporting structure with seasoned
football leaders, Dan Ashworth and Jason Wilcox. Additional club
executive leadership was also appointed in April, and the new
non-football structure will be supported by a more streamlined
organization. Beginning in March 2024, the club engaged Interpath
Advisory for a thorough club-wide cost review which identified
substantial cost-savings. As a result of this change in strategy
and with the intention of creating a leaner, agile and more
sustainable structure, the club subsequently announced an employee
redundancy program in July 2024, which was concluded at the end of
August 2024 and resulted in the rationalization of the club’s
employee base by approximately 250 roles across all
departments.
In total, the club expects to realize annualized cost savings of
approximately £40 million to £45 million, before implementation
costs of £10 million. Due to timing and other contractual
obligations, the club expects to realize these savings over fiscal
years 2025 and 2026.
Outlook and Guidance
Details
For fiscal 2025, the Company is introducing new full year
revenue guidance of £650 million to £670 million and new adjusted
EBITDA guidance of £145 million to £160 million, while exceptional
costs related to severance charges associated with the headcount
reduction program are expected to total approximately £10 million.
Included in full year revenue guidance is an approximate £30
million improvement to Retail, Merchandising and Licensing revenues
driven by the transition of e-commerce to an in-house operation in
partnership with SCAYLE to better serve our global fans and
followers with an expanded and more compelling offering, new
merchandise categories, as well as greatly improved fulfilment and
product availability. The new re-branded site
(https://store.manutd.com/) was launched on 5 September, and due to
timing, the topline impact for the first quarter 2025 will be
minimal, however we expect revenue to build through the Holiday
season in the second quarter 2025 and into the second half of the
fiscal year as we recognize the transactional revenue. Full year
Broadcasting revenues in fiscal 2025 will be approximately £30
million lower than the prior year, given the men’s first team’s
participation in the UEFA Europa League versus Champions’ League
participation in fiscal 2024.
For the full year fiscal 2025, the club currently anticipates
non-player capital expenditures to total approximately £60 million
and includes the upgrade of the main players’ building at the
Carrington Training Centre, which is on plan to be completed by the
end of the 2024/25 season and is intended to enhance the
performance environment. In March 2024, the club led the creation
of the Old Trafford Regeneration Task Force to explore options for
the revitalization of the Old Trafford area in Greater Manchester.
The task force has since convened for four meetings and all options
continue to be vetted as the Task Force continues to seek input and
feedback from all key stakeholders.
The club remains committed to, and in compliance with, both the
Premier League’s Profit and Sustainability Rules and UEFA’s
Financial Fair Play Regulations.
Phasing of Premier League games*
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
2024/25 season
6
13
10
9
38
2023/24 season
7
13
9
9
38
2022/23 season
6
10
10
12
38
*As of 11 September 2024; subject to
change
Key Financials
(unaudited)
£ million (except loss per share)
Twelve months ended
30 June
Three months ended
30 June
2024
2023
Change
2024
2023
Change
Commercial revenue
302.9
302.9
-
71.2
67.4
5.6%
Broadcasting revenue
221.8
209.1
6.1%
38.4
64.5
(40.5%)
Matchday revenue
137.1
136.4
0.5%
32.6
35.4
(7.9%)
Total revenue
661.8
648.4
2.1%
142.2
167.3
(15.0%)
Adjusted EBITDA(1)
147.7
154.9
(4.6%)
19.3
43.2
(55.3%)
Operating loss
(69.3)
(11.2)
(518.8%)
(32.4)
(0.3)
(10,700.0%)
Loss for the period (i.e. net loss)
(113.2)
(28.7)
(294.4%)
(36.3)
(2.9)
(1,151.7%)
Basic loss per share (pence)
(68.44)
(17.59)
(289.1%)
(21.44)
(1.79)
(1,097.8%)
Adjusted loss for the period (i.e.
adjusted net loss)(1)
(55.1)
(42.1)
(30.9%)
(26.7)
(10.1)
(164.4%)
Adjusted basic loss per share
(pence)(1)
(33.32)
(25.84)
(28.9%)
(15.79)
(6.18)
(155.5%)
Non-current borrowings in USD (contractual
currency) (2)
$650.0
$650.0
0.0%
$650.0
$650.0
0.0%
(1) Adjusted EBITDA, adjusted loss for the
period and adjusted basic loss per share are non-IFRS measures. See
“Non-IFRS Measures: Definitions and Use” on page 9 and the
accompanying Supplemental Notes for the definitions and
reconciliations for these non-IFRS measures and the reasons we
believe these measures provide useful information to investors
regarding the Group’s financial condition and results of
operations.
(2) In addition to non-current borrowings,
the Group maintains a revolving credit facility which varies based
on seasonal flow of funds. The outstanding balance of the revolving
credit facility as of 30 June 2024 was £30.0 million and total
current borrowings including accrued interest payable was £35.6
million. At 30 June 2023, the outstanding balance of the revolving
credit facility was £100.0 million and current borrowings including
accrued interest payable was £106.0 million.
Revenue Analysis
Commercial Commercial revenue for the year was £302.9
million, in line with commercial revenue of £302.9 million in the
prior year.
- Sponsorship revenue was £177.8 million, a decrease of £11.7
million, or 6.2%, over the prior year, primarily due to a one-off
sponsorship credit in the prior year.
- Retail, Merchandising, Apparel & Product Licensing revenue
was £125.1 million, an increase of £11.7 million, or 10.3%, over
the prior year, primarily due to the extension of our agreement
with adidas and record fiscal year revenue performance of the
Megastore, which improved 8.0% over the prior year.
For the quarter, commercial revenue was £71.2 million, an
increase of £3.8 million, or 5.6%, over the prior year quarter.
- Sponsorship revenue was £41.8 million, an increase of £1.5
million, or 3.7% over the prior year quarter, primarily due to
differences across our sponsors agreements year on year; and
- Retail, Merchandising, Apparel & Product Licensing revenue
was £29.4 million, an increase of £2.3 million, or 8.5%, over the
prior year quarter, due to the extension of our agreement with
adidas, partially offset by lower Megastore sales resulting from
fewer matches being played at Old Trafford in the quarter.
Broadcasting Broadcasting revenue for the year was £221.8
million, an increase of £12.7 million, or 6.1%, over the prior
year, primarily due to the men’s first team participating in the
UEFA Champions League compared to the UEFA Europa League in the
prior year. This is partially offset by the men’s first team being
eliminated in the group stage of the UEFA Champions League and
finishing 8th in the Premier League in the current year, compared
to reaching the Quarter-finals of the UEFA Europa League and
finishing 3rd in the Premier League in the prior year.
Broadcasting revenue for the quarter was £38.4 million, a
decrease of £26.1 million, or 40.5%, over the prior year quarter,
primarily due to the impact of our men’s first team finishing 8th
in the Premier League compared to 3rd in the prior year, as well as
playing 5 fewer matches in the current year quarter compared to the
prior year quarter.
Matchday Matchday revenue for the year was £137.1
million, an increase of £0.7 million, or 0.5%, over the prior year,
due to strong demand for hospitality offers, mostly offset by the
men’s first team playing 8 fewer home matches in the current
year.
Matchday revenue for the quarter was £32.6 million, a decrease
of £2.8 million, or 7.9%, over the prior year quarter, due to
playing 2 fewer home matches in the current year quarter.
Other Financial
Information
Operating expenses Total operating expenses for the year
were £768.5 million, an increase of £87.4 million, or 12.8%, over
the prior year. This increase is explained by category below.
Employee benefit expenses Employee benefit expenses for
the year were £364.7 million, an increase of £33.3 million, or
10.0%, over the prior year, primarily as a result of the men’s
first team participating in the UEFA Champions League in the
current year compared to the UEFA Europa League in the prior
year.
Other operating income Other operating income for the
year was £nil, compared to £1.1 million in the prior year.
Other operating expenses Other operating expenses for the
year were £149.4 million, a decrease of £13.8 million, or 8.5%,
over the prior year. This is primarily due to reduced matchday
costs associated with the men’s first team playing 8 fewer home
matches in the current year than the prior year.
Depreciation, impairment and amortization Depreciation
and impairment for the year was £16.5 million, an increase of £2.7
million, or 19.6%, over the prior year, as a result of increased
capital investment in tangible fixed assets at the Club.
Amortization for the year was £190.1 million, an increase of £17.4
million, or 10.1%, over the prior year, due to investment in the
first team playing squad. The unamortized balance of registrations
at 30 June 2024 was £408.6 million.
Exceptional items Exceptional items for the year were a
cost of £47.8 million. This primarily comprises of costs incurred
in relation to the sale of 27.7% of the Group’s voting rights to
Trawlers Limited, an entity wholly owned by Sir Jim Ratcliffe,
including transactions fees payable on completion and compensation
for loss of office. The charge also includes additional
contributions we expect to pay towards the Football League pension
scheme deficit based on the latest actuarial valuation. Exceptional
items in the prior year were £nil.
Profit on disposal of intangible assets Profit on
disposal of intangible assets for the year was £37.4 million,
compared to £20.4 million for the prior year.
Net finance costs Net finance costs for the year were
£61.4 million, compared to net finance costs of £21.4 million for
the prior year, an increase of £40.0 million, or 186.9%. This is
primarily due to more stable foreign exchange rates in the current
year resulting in a small unrealized foreign exchange loss on
unhedged USD borrowings of £2.8m, compared to large unrealized
foreign exchange gain in the prior year of £22.4m. The current year
also saw an increase in interest costs payable on our external
borrowings and a larger discounting charge on player creditors due
to investment in the first team playing squad.
Income tax The income tax credit for the year was £17.5
million, compared to a credit of £3.9 million in the prior year. In
both years the credit arises primarily as a result of deferred tax
assets recognised in respect of losses arising in the year.
Cash flows Overall cash and cash equivalents (including
the effects of exchange rate movements) decreased by £2.5 million
in the year, compared to a decrease of £45.2 million in the prior
year.
Net cash inflow from operating activities for the year was £85.7
million, a decrease of £10.1 million compared to a net cash inflow
of £95.8 million for the prior year. This is explained further in
the Statement of Cash Flows on page 14 and Cash Generated from
Operations note on page 17.
Net capital expenditure on property, plant and equipment for the
year was £17.5 million, an increase of £1.9 million over the prior
year. This is primarily due to expenditure on the upgrade of
facilities at Carrington Training Centre.
Net capital expenditure on intangible assets for the year was
£153.7 million, an increase of £29.1 million over the prior year,
due to continued investment in the first team playing squad.
Net cash inflow from financing activities for the year was £86.2
million. This is due to £158.5 million of proceeds from the issue
of shares as part of the transaction agreement with Trawlers
Limited, partially offset by £70.0 million of net repayments on our
revolving facilities.
Balance sheet Our USD non-current borrowings as of 30
June 2024 were $650 million, which was unchanged from 30 June 2023.
As a result of the year-on-year change in the USD/GBP exchange rate
from 1.2716 at 30 June 2023 to 1.2643 at 30 June 2024, our
non-current borrowings when converted to GBP were £511.0 million,
compared to £507.3 million at the prior year end.
In addition to non-current borrowings, the Group maintains a
revolving credit facility which varies based on seasonal flow of
funds. Current borrowings including accrued interest, at 30 June
2024 were £35.6 million compared to £106.0 million at 30 June
2023.
As of 30 June 2024, cash and cash equivalents were £73.5 million
compared to £76.0 million at the prior year end. This movement is
detailed further in the Statement of Cash Flows on page 14 of this
report.
About Manchester United
Manchester United is one of the most popular and successful
sports teams in the world, playing one of the most popular
spectator sports on Earth. Through our 146-year football heritage
we have won 69 trophies, enabling us to develop what we believe is
one of the world’s leading sports and entertainment brands with a
global community of 1.1 billion fans and followers. Our large,
passionate and highly engaged fan base provides Manchester United
with a worldwide platform to generate significant revenue from
multiple sources, including sponsorship, merchandising, product
licensing, broadcasting and matchday initiatives which in turn,
directly fund our ability to continuously reinvest in the club.
Cautionary Statements
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.
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) as supplemented by the risk factors contained in the
Company’s other filings with the Securities and Exchange
Commission.
Statement Regarding Unaudited Financial Information
The unaudited financial information set forth is preliminary and
subject to adjustments. The audit of the financial statements and
related notes to be included in our annual report on Form 20-F for
the year ended 30 June 2024 is still in progress. Adjustments to
the financial statements may be identified when audit work is
completed, which could result in significant differences from this
preliminary unaudited financial information.
Non-IFRS Measures: Definitions and
Use
1. Adjusted EBITDA
Adjusted EBITDA is defined as loss for the period before
depreciation and impairment, amortization, profit on disposal of
intangible assets, net finance costs/income, exceptional items and
tax.
Adjusted EBITDA is useful as a measure of comparative operating
performance from period to period and among companies as it is
reflective of changes in pricing decisions, cost controls and other
factors that affect operating performance, and it removes the
effect of our asset base (primarily depreciation, impairment and
amortization), material volatile items (primarily profit on
disposal of intangible assets and exceptional items), capital
structure (primarily finance income/costs), and items outside the
control of our management (primarily taxes). Adjusted EBITDA has
limitations as an analytical tool, and you should not consider it
in isolation, or as a substitute for an analysis of our results as
reported under IFRS as issued by the IASB. A reconciliation of
loss/profit for the period to adjusted EBITDA is presented in
supplemental note 2.
2. Adjusted loss for the period (i.e.
adjusted net loss)
Adjusted loss for the period is calculated, where appropriate,
by adjusting for charges/credits related to exceptional items,
foreign exchange gains/losses on unhedged US dollar denominated
borrowings (including foreign exchange losses immediately
reclassified from the hedging reserve following change in contract
currency denomination of future revenues), and fair value movements
on embedded foreign exchange derivatives and foreign currency
options, adding/subtracting the actual tax expense/credit for the
period, and subtracting/adding the adjusted tax expense/credit for
the period (based on a normalized tax rate of 25%; 2023: 21%). The
normalized tax rate of 25% is the current UK corporation tax rate
(2023: US federal corporate income tax rate of 21%).
In assessing the comparative performance of the business, in
order to get a clearer view of the underlying financial performance
of the business, it is useful to strip out the distorting effects
of the items referred to above and then to apply a ‘normalized’ tax
rate (for both the current and prior periods) of the weighted
average US federal corporate income tax rate of 21% (2023: 21%)
applicable during the financial year. A reconciliation of loss for
the period to adjusted loss for the period is presented in
supplemental note 3.
3. Adjusted basic and diluted loss per
share
Adjusted basic and diluted loss per share are calculated by
dividing the adjusted loss for the period by the weighted average
number of ordinary shares in issue during the period. Adjusted
diluted loss per share is calculated by adjusting the weighted
average number of ordinary shares in issue during the period to
assume conversion of all dilutive potential ordinary shares. There
is one category of dilutive potential ordinary shares: share awards
pursuant to the 2012 Equity Incentive Plan (the “Equity Plan”).
Share awards pursuant to the Equity Plan are assumed to have been
converted into ordinary shares at the beginning of the financial
year. Adjusted basic and diluted loss per share are presented in
supplemental note 3.
Key Performance
Indicators
Twelve months ended
Three months ended
30 June
30 June
2024
2023
2024
2023
Revenue
Commercial % of total revenue
45.8%
46.7%
50.1%
40.3%
Broadcasting % of total revenue
33.5%
32.2%
27.0%
38.6%
Matchday % of total revenue
20.7%
21.0%
22.9%
21.2%
2023/24
Season
2022/23
Season
2023/24
Season
2022/23
Season
Home Matches Played
PL
19
19
5
6
UEFA competitions
3
6
-
1
Domestic Cups
3
8
-
-
Away Matches Played
PL
19
19
4
6
UEFA competitions
3
6
-
1
Domestic Cups
5
4
2
2
Other
Employees at period end
1,127
1,134
1,127
1,134
Employee benefit expenses % of revenue
55.1%
51.1%
62.0%
51.9%
CONSOLIDATED STATEMENT OF
PROFIT OR LOSS (unaudited; in £ thousands, except per share and
shares outstanding data)
Twelve months ended
30 June
Three months ended
30 June
2024
2023
2024
2023
Revenue from contracts with
customers
661,755
648,401
142,210
167,331
Operating expenses
(768,530
)
(681,117
)
(181,375
)
(173,158
)
Other operating income
-
1,112
-
1,112
Profit on disposal of intangible
assets
37,422
20,424
6,752
4,455
Operating loss
(69,353
)
(11,180
)
(32,413
)
(260
)
Finance costs
(63,867
)
(44,917
)
(10,147
)
(14,140
)
Finance income
2,496
23,523
990
12,620
Net finance costs
(61,371
)
(21,394
)
(9,157
)
(1,520
)
Loss before tax
(130,724
)
(32,574
)
(41,570
)
(1,780
)
Income tax credit/(expense)
17,565
3,896
5,294
(1,141
)
Loss for the period
(113,159
)
(28,678
)
(36,276
)
(2,921
)
Basic and diluted loss per
share:
Basic and diluted loss per share (pence)
(1)
(68.44
)
(17.59
)
(21.44
)
(1.79
)
Weighted average number of ordinary shares
used as the denominator in calculating basic and diluted loss per
share (thousands) (1)
165,345
163,062
169,220
163,062
(1) For the twelve and three months ended
30 June 2024 and the twelve and three months ended 30 June 2023,
potential ordinary shares are anti-dilutive, as their inclusion in
the diluted loss per share calculation would reduce the loss per
share, and hence have been excluded.
CONSOLIDATED BALANCE SHEET
(unaudited; in £ thousands)
As of 30 June
2024
2023
ASSETS
Non-current assets
Property, plant and equipment
256,118
253,282
Right-of-use assets
8,195
8,760
Investment properties
19,713
19,993
Intangible assets
837,564
812,382
Deferred tax asset
17,607
-
Trade receivables
27,930
22,303
Derivative financial instruments
380
7,492
1,167,507
1,124,212
Current assets
Inventories
3,543
3,165
Prepayments
18,759
16,487
Contract assets – accrued revenue
39,778
43,332
Trade receivables
36,999
31,167
Other receivables
2,735
9,928
Income tax receivable
-
5,317
Derivative financial instruments
1,917
8,317
Cash and cash equivalents
73,549
76,019
117,280
193,732
Total assets
1,344,787
1,317,944
CONSOLIDATED BALANCE SHEET
(continued) (unaudited; in £ thousands)
As of 30 June
2024
2023
EQUITY AND LIABILITIES
Equity
Share capital
55
53
Share premium
227,361
68,822
Treasury shares
(21,305)
(21,305)
Merger reserve
249,030
249,030
Hedging reserve
(1,000)
4,002
Retained deficit
(309,251)
(196,652)
144,890
103,950
Non-current liabilities
Deferred tax liabilities
-
3,304
Contract liabilities - deferred
revenue
5,347
6,659
Trade and other payables
175,894
161,141
Borrowings
511,047
507,335
Lease liabilities
7,707
7,844
Derivative financial instruments
4,911
748
Provisions
-
93
704,906
687,124
Current liabilities
Contract liabilities - deferred
revenue
198,628
169,624
Trade and other payables
249,030
236,472
Income tax liabilities
427
-
Borrowings
35,574
105,961
Lease liabilities
934
1,036
Derivative financial instruments
2,603
931
Provisions
7,795
12,846
494,991
526,870
Total equity and liabilities
1,344,787
1,317,944
CONSOLIDATED STATEMENT OF CASH
FLOWS (unaudited; in £ thousands)
Twelve months ended
30 June
Three months ended
30 June
2024
2023
2024
2023
Cash flows from operating
activities
Cash generated from operations (see
supplemental note 4)
117,461
128,857
132,186
116,663
Interest paid
(37,225
)
(31,952
)
(5,387
)
(6,675
)
Interest received
1,686
496
833
289
Tax refunded/(paid)
3,749
(1,632
)
(1,775
)
(1,020
)
Net cash inflow from operating
activities
85,671
95,769
125,857
109,257
Cash flows from investing
activities
Payments for property, plant and
equipment
(17,511
)
(15,611
)
(2,562
)
(5,795
)
Payments for intangible assets
(190,721
)
(156,165
)
(4,326
)
(11,449
)
Proceeds from sale of intangible
assets
37,028
31,616
762
11,785
Net cash outflow from investing
activities
(171,204
)
(140,160
)
(6,126
)
(5,459
)
Cash flows from financing
activities
Proceeds from borrowings
160,000
100,000
-
-
Repayment of borrowings
(230,000
)
(100,000
)
(110,000
)
(100,000
)
Proceeds from issue of shares
158,542
-
-
-
Principal elements of lease payments
(976
)
(1,952
)
(296
)
(350
)
Debt issue costs paid
(1,335
)
-
(1,335
)
-
Net cash inflow/(outflow) from
financing activities
86,231
(1,952
)
(111,631
)
(100,350
)
Effects of exchange rate changes on cash
and cash equivalents
(3,168
)
1,139
(1,545
)
(1,162
)
Net (decrease)/increase in cash and
cash equivalents
(2,470
)
(45,204
)
6,555
2,286
Cash and cash equivalents at beginning of
period
76,019
121,223
66,994
73,733
Cash and cash equivalents at end of
period
73,549
76,019
73,549
76,019
SUPPLEMENTAL NOTES
1 General information
Manchester United plc (the “Company”) and its subsidiaries
(together the “Group”) is a men’s and women’s professional football
club together with related and ancillary activities. The Company
incorporated under the Companies Law (as amended) of the Cayman
Islands.
2 Reconciliation of loss for the period to adjusted
EBITDA
Twelve months ended
30 June
Three months ended
30 June
2024
£’000
2023
£’000
2024
£’000
2023
£’000
Loss for the period
(113,159
)
(28,678
)
(36,276
)
(2,921
)
Adjustments:
Income tax (credit)/expense
(17,565
)
(3,896
)
(5,294
)
1,141
Net finance costs
61,371
21,394
9,157
1,520
Profit on disposal of intangible
assets
(37,422
)
(20,424
)
(6,752
)
(4,455
)
Exceptional items
47,778
-
7,843
-
Amortization
190,123
172,684
46,521
44,652
Depreciation and impairment
16,526
13,848
4,127
3,294
Adjusted EBITDA
147,652
154,928
19,326
43,231
3 Reconciliation of loss for the period to adjusted loss for
the period and adjusted basic and diluted loss per share
Twelve months ended
30 June
Three months ended
30 June
2024
£’000
2023
£’000
2024
£’000
2023
£’000
Loss for the period
(113,159
)
(28,678
)
(36,276
)
(2,921
)
Exceptional items
47,778
-
7,843
-
Foreign exchange losses/(gains) on
unhedged US dollar denominated borrowings
2,755
(22,375
)
(307
)
(12,081
)
Fair value movement on embedded foreign
exchange derivatives
6,742
1,604
(1,590
)
1,106
Income tax (credit)/expense
(17,565
)
(3,896
)
(5,294
)
1,141
Adjusted loss before tax
(73,449
)
(53,345
)
(35,624
)
(12,755
)
Adjusted income tax credit (using a
normalized tax rate of 21% (2023: 21%))
18,362
11,202
8,906
2,679
Adjusted loss for the period (i.e.
adjusted net loss)
(55,087
)
(42,143
)
(26,718
)
(10,076
)
Adjusted basic and diluted loss per
share:
Adjusted basic and diluted loss per share
(pence)(1)
(33.32
)
(25.84
)
(15.79
)
(6.18
)
Weighted average number of ordinary shares
used as the denominator in calculating adjusted basic and diluted
loss per share (thousands) (1)
165,345
163,062
169,220
163,062
(1) For the twelve and three months ended
30 June 2024 and the twelve and three months ended 30 June 2023
potential ordinary shares are anti-dilutive, as their inclusion in
the diluted loss per share calculation would reduce the loss per
share, and hence have been excluded.
4 Cash generated from operations
Twelve months ended
30 June
Three months ended
30 June
2024
£’000
2023
£’000
2024
£’000
2023
£’000
Loss for the period
(113,159
)
(28,678
)
(36,276
)
(2,921
)
Income tax (credit)/expense
(17,565
)
(3,896
)
(5,294
)
1,141
Loss before income tax
(130,724
)
(32,574
)
(41,570
)
(1,780
)
Adjustments for:
Depreciation and impairment
16,526
13,848
4,127
3,294
Amortization
190,123
172,684
46,521
44,652
Profit on disposal of intangible
assets
(37,422
)
(20,424
)
(6,752
)
(4,455
)
Net finance costs
61,371
21,394
9,157
1,520
Non-cash employee benefit expense -
equity-settled share-based payments
875
1,753
(1,032
)
39
Foreign exchange losses on operating
activities
2,041
2,989
1,153
(1,958
)
Reclassified from hedging reserve
-
267
-
513
Changes in working capital:
Inventories
(378
)
(965
)
214
(520
)
Prepayments
(1,726
)
(1,704
)
(415
)
(80
)
Contract assets – accrued revenue
3,554
(7,093
)
14,109
19,541
Trade receivables
2,358
24,433
4,864
20,754
Other receivables
7,193
(8,359
)
(900
)
(7,897
)
Contract liabilities – deferred
revenue
27,692
(6,261
)
94,498
42,360
Trade and other payables
(18,904
)
(31,139
)
10,955
731
Provisions
(5,118
)
8
(2,743
)
(51
)
Cash generated from operations
117,461
128,857
132,186
116,663
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240911099118/en/
Investor Relations: Corinna Freedman Head of Investor
Relations +44 738 491 0828 Corinna.Freedman@manutd.co.uk
Media Relations: Andrew Ward Director of Media Relations
& Public Affairs +44 161 676 7770 andrew.ward@manutd.co.uk
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