Manchester United Plc Reports Second Quarter Fiscal 2021 Results

  • 2Q Fiscal 2021 Revenues of £172.8 million
  • 2Q Fiscal 2021 Adjusted EBITDA of £70.3 million
  • 2Q Fiscal 2021 Operating Profit of £48.5 million

Key Points

  • Staggered return of fans in the UK expected from May as lockdown measures ease; UK vaccination program expected to offer first dose to all eligible adults by 31 July
  • Men’s squad strengthened by the addition of Amad Diallo and the women’s team by Norwegian international Maria Thorisdottir
  • Mason Greenwood signed a new contract to 2025, with option to extend for an additional year
  • Increased digital engagement, both sequentially and year over year, drove record-breaking Club e-commerce sales of all three 2020/21 Men’s kits
  • Club’s November launch on TikTok achieved the fastest growing following of any football club on the platform

MANCHESTER, England--()--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 2021 fiscal second quarter ended 31 December 2020.

Management Commentary

Ed Woodward, Executive Vice Chairman, commented, “As we approach a full year since our last game with fans at Old Trafford, we reflect on an extraordinarily challenging 12 months for football and society as a whole. The rapid rollout of vaccines in the UK and beyond gives us confidence that we are now on a path towards normality, including the return of fans to stadia. While the disruption to our operations remains significant, we are pleased by the tremendous resilience the club has demonstrated through the pandemic, underpinned by the dedication of our people and the strength of our commercial business. We have been reminded of the importance of football as a source of community, entertainment and pride to fans around the world, even as we have sorely missed them at Old Trafford. The progress made by Ole and the players this season is clear and our thriving Academy and Women’s team are also adding to the optimism we feel about the future on and off the pitch.”

Key Financials (unaudited)

£ million (except earnings per share)

Three months ended
31 December

 

Six months ended
31 December

 

 

2020

2019

Change

2020

2019

Change

Commercial revenue

62.6

70.6

(11.3%)

122.3

151.0

(19.0%)

Broadcasting revenue

108.7

64.7

68.0%

156.3

97.6

60.1%

Matchday revenue

1.5

33.1

(95.5%)

3.2

55.2

(94.2%)

Total revenue

172.8

168.4

2.6%

281.8

303.8

(7.2%)

Adjusted EBITDA(1)

70.3

72.1

(2.5%)

91.1

106.9

(14.8%)

Operating profit

48.5

36.5

32.9%

21.4

47.5

(54.9%)

 

Profit for the period (i.e. net income)

63.9

35.0

82.6%

33.6

36.1

(6.9%)

Basic earnings per share (pence)

39.17

21.27

84.2%

20.60

21.96

(6.2%)

Adjusted profit for the period (i.e. adjusted net income)(1)

35.3

25.8

36.8%

10.7

29.7

(64.0%)

Adjusted basic earnings per share (pence)(1)

21.69

15.67

38.4%

6.57

18.02

(63.5%)

 

Non-current and current borrowings

536.1

492.2

8.9%

536.1

492.2

8.9%

Cash and cash equivalents

80.6

100.9

(20.1%)

80.6

100.9

(20.1%)

Net debt(1)/(2)

455.5

391.3

16.4%

455.5

391.3

16.4%

(1) Adjusted EBITDA, adjusted profit for the period, adjusted basic earnings per share and net debt are non-IFRS measures. See “Non-IFRS Measures: Definitions and Use” on page 7 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) The gross USD debt principal remains unchanged. Non-current and current borrowings and cash and cash equivalents as at 31 December 2020 reflect the impact a £60.0 million drawdown on our £200 million revolving credit facilities during the quarter. The increase in net debt compared to 31 December 2019 is primarily driven by the loss of 2020/21 season Matchday cash receipts and the impact of deferred sponsorship payments, partially offset by increased broadcasting receipts.

COVID-19 Impact
Operationally, the impact of the pandemic and measures to prevent further spread continues to disrupt our businesses. The Old Trafford Stadium, Museum and Stadium Tour operations remain closed to visitors. The Old Trafford based Megastore was closed to footfall on 31 December 2020 and remains closed as of the date of this report.

Commencement of playing the 2020/21 Premier league fixtures was delayed until 19 September 2020, due to the deferred completion of the 2019/20 season. 2020/21 matches will be played over a more condensed period with most of the current season shortfall being played in the third and fourth quarters, as outlined below.

During the second quarter, the first team played in thirteen Premier League home and away matches, consistent with the prior year quarter. This is in addition to playing six UEFA Champions league home and away matches, compared to five UEFA Europa League matches in the prior year quarter.

During the second quarter, a total of ten home matches were played behind closed doors across all competitions, compared with a total nine home matches with fans in attendance during the prior quarter, creating a significant shortfall in Matchday revenues relative to last year.

The Matchday revenue shortfall has however, been more than offset by Broadcasting revenues given the first teams participation in the UEFA Champions League competition. A large portion of UEFA Champions league broadcasting revenues are attributable to the Group stages of the competition, which was played in full during the second quarter.

Given ongoing uncertainty due to the COVID-19 pandemic, the Company is not providing revenue or adjusted EBITDA guidance for fiscal 2021 at this time.

Phasing of Premier League games

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Total

2020/21 season*

2

13

14

9

38

2019/20 remaining season

6

-

-

-

6

Total FY 2021

8

13

14

9

44

2019/20 season

7

13

9

3

32

2018/19 season

7

13

11

7

38

*Subject to changes in broadcasting scheduling

Working Capital and Liquidity
As of 31 December 2020, the Company had £80.6 million of cash balances together with access to an additional £140.0 million available under the Company’s revolving credit facilities. This provides financial flexibility to support the Club through the disruption caused by COVID-19.

Revenue Analysis

Commercial
Commercial revenue for the quarter was £62.6 million, a decrease of £8.0 million, or 11.3%, over the prior year quarter.

  • Sponsorship revenue was £37.8 million, a decrease of £7.3 million, or 16.2%, over the prior year quarter, primarily due to a one-off sponsorship credit in the prior quarter, combined with the impact of the shirt sponsorship extension.
  • Retail, Merchandising, Apparel & Product Licensing revenue was £24.8 million, a decrease of £0.7 million, or 2.7%, over the prior year quarter.

Broadcasting
Broadcasting revenue for the quarter was £108.7 million, an increase of £44.0 million, or 68.0%, over the prior year quarter, due to participation in the UEFA Champions League.

Matchday
Matchday revenue for the quarter was £1.5 million, a decrease of £31.6 million, or 95.5%, over the prior year quarter, due to all matches being played behind closed doors. Nine home games were played in the prior year quarter with fans in attendance.

Other Financial Information

Operating expenses
Total operating expenses for the quarter were £138.6 million, an increase of £7.4 million, or 5.6%, over the prior year quarter.

Employee benefit expenses
Employee benefit expenses for the quarter were £81.7 million, an increase of £10.8 million, or 15.2%, over the prior year quarter. This is due to contracted increases in player salaries due to participation in the UEFA Champions League and continued investment in the first team playing squad.

Other operating expenses
Other operating expenses for the quarter were £20.8 million, a decrease of £4.6 million, or 18.1%, over the prior year quarter, primarily due to reduced business activity as a result of COVID-19. This includes the impact of all matches being played behind closed doors.

Depreciation and amortization
Depreciation for the quarter was £3.6 million, a decrease of £0.1 million or 2.7% over the prior year quarter. Amortization for the quarter was £32.5 million, an increase of £1.3 million, or 4.2%, over the prior year quarter. The unamortized balance of registrations on 31 December 2020 was £350.4 million.

Profit/(loss) on disposal of intangible assets
Profit on disposal of intangible assets for the quarter was £14.3 million, compared to a loss of £0.7 million for the prior year quarter. This is due to the close of the summer transfer window during the current year quarter.

Net finance income
Net finance income for the quarter was £19.7 million, compared to net finance income of £15.3 million in the prior year quarter. In both the current and prior year quarter, the movement was driven by foreign exchange gains on unhedged USD borrowings. Underlying net finance costs are consistent with the prior year quarter.

Income tax
The income tax expense for the quarter was £4.3 million, compared to £16.8 million in the prior year quarter.

Cash flows
Overall cash and cash equivalents (including the effects of exchange rate movements) increased by £21.7 million in the quarter to 31 December 2020, compared to a decrease of £39.4 million in the prior year quarter.

Net cash outflow from operating activities for the quarter was £1.0 million, a decrease of £14.2 million over the prior year quarter. This is primarily due to lower working capital movements related to Matchday revenue due to matches being played behind closed doors.

Net capital expenditure on property, plant and equipment for the quarter was £1.4 million, a decrease of £8.5 million over the prior year quarter.

Net capital expenditure on intangible assets for the quarter was £35.0 million, an increase of £27.9 million over the prior year quarter.

Net capital expenditure on derivative financial assets for the quarter was £0.9m, compared to £nil in the prior year quarter.

Net cash inflow from financing activities for the quarter was £59.6 million, compared to a net cash outflow from financing activities in the prior year quarter of £0.4 million. This is due to a £60.0 million drawdown on the revolving credit facilities in the current year quarter.

Net debt
Net Debt as of 31 December 2020 was £455.5 million, an increase of £64.2 million over the year. The increase in net debt compared to 31 December 2019 reflects the loss of 2020/21 season Matchday advance cash receipts, and the impact of deferred sponsorship payments, partially offset by increased broadcasting receipts.

Conference Call Details
The Company’s conference call to review fiscal 2021 second quarter results will be broadcast live over the internet today, 4 March 2021 at 4:30 p.m. Eastern Time and will be available on Manchester United’s investor relations website at http://ir.manutd.com. Thereafter, a replay of the webcast will be available for thirty days.

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 143-year football heritage we have won 66 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. Forward-looking statements include information concerning certain expectations and uncertainties related to the COVID-19 pandemic and 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).

Non-IFRS Measures: Definitions and Use

1. Adjusted EBITDA
Adjusted EBITDA is defined as profit for the period before depreciation, amortization, profit/loss on disposal of intangible assets, net finance income, 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 and amortization), material volatile items (primarily profit/loss 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 profit for the period to adjusted EBITDA is presented in supplemental note 2.

2. Adjusted profit for the period (i.e. adjusted net income)
Adjusted profit 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 21%; 2019: 21%). The normalized tax rate of 21% is the current US federal corporate income tax rate.

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% (2019: 21%) applicable during the financial year. A reconciliation of profit for the period to adjusted profit for the period is presented in supplemental note 3.

3. Adjusted basic and diluted earnings per share
Adjusted basic and diluted earnings per share are calculated by dividing the adjusted profit for the period by the weighted average number of ordinary shares in issue during the period. Adjusted diluted loss/earnings 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 earnings per share are presented in supplemental note 3.

4. Net debt
Net debt is calculated as non-current and current borrowings minus cash and cash equivalents.

Key Performance Indicators

 

Three months ended

Six months ended

31 December

31 December

 

2020

2019

2020

2019

Revenue

 

 

 

 

Commercial % of total revenue

36.2%

41.9%

43.4%

49.7%

Broadcasting % of total revenue

62.9%

38.4%

55.5%

32.1%

Matchday % of total revenue

0.9%

19.7%

1.1%

18.2%

 

2020/21
Season

2019/20
Season

2020/21
Season

2019/20
Season

2019/20
Season

Home Matches Played

 

 

 

 

 

PL

7

6

8

3

10

UEFA competitions

3

2

3

1

3

Domestic Cups

-

1

-

-

2

Away Matches Played

 

 

 

 

 

PL

6

7

7

3

10

UEFA competitions

3

3

3

2

3

Domestic Cups

1

1

3

1

1

Other

 

 

 

 

Employees at period end

991

979

991

979

Employee benefit expenses % of revenue

47.3%

42.1%

54.5%

46.5%

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS
(unaudited; in £ thousands, except per share and shares outstanding data)
 

 

Three months ended
31 December

Six months ended
31 December

 

2020

 

2019

 

2020

 

2019

 

Revenue from contracts with customers

172,850

 

168,455

 

281,822

 

303,826

 

Operating expenses

(138,659

)

(131,253

)

(262,132

)

(267,674

)

Profit/(loss) on disposal of intangible assets

14,278

 

(715

)

1,683

 

11,302

 

Operating profit

48,469

 

36,487

 

21,373

 

47,454

 

Finance costs

(5,722

)

(5,386

)

(25,296

)

(11,912

)

Finance income

25,424

 

20,644

 

45,019

 

18,732

 

Net finance income

19,702

 

15,258

 

19,723

 

6,820

 

Profit before income tax

68,171

 

51,745

 

41,096

 

54,274

 

Income tax expense

(4,343

)

(16,738

)

(7,538

)

(18,139

)

Profit for the period

63,828

 

35,007

 

33,558

 

36,135

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

Basic earnings per share (pence)

39.17

 

21.27

 

20.60

 

21.96

 

Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share (thousands)

162,939

 

164,573

 

162,939

 

164,573

 

Diluted earnings per share:

 

 

 

 

Diluted earnings per share (pence)

39.07

 

21.25

 

20.54

 

21.94

 

Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share (thousands) (1)

163,385

 

164,746

 

163,385

 

164,737

 

CONSOLIDATED BALANCE SHEET
(unaudited; in £ thousands)

 

 

As of

 

31 December
2020

 

30 June
2020

 

31 December
2019

ASSETS

 

 

 

 

 

Non-current assets

 

 

 

 

 

Property, plant and equipment

251,183

 

254,439

 

253,523

Right-of-use assets

3,930

 

4,559

 

5,168

Investment properties

20,692

 

20,827

 

24,792

Intangible assets

777,473

 

775,170

 

758,476

Deferred tax asset

61,786

 

58,362

 

53,862

Trade receivables

34,333

 

43,694

 

40,586

Derivative financial instruments

536

 

1,609

 

-

 

1,149,933

 

1,158,660

 

1,136,407

Current assets

 

 

 

 

 

Inventories

2,792

 

2,186

 

2,535

Prepayments

16,183

 

6,503

 

13,211

Contract assets – accrued revenue

65,795

 

45,966

 

78,098

Trade receivables

62,907

 

115,985

 

26,313

Other receivables

371

 

239

 

614

Income tax receivable

1,223

 

1,214

 

618

Derivative financial instruments

1,776

 

1,174

 

-

Cash and cash equivalents

80,620

 

51,539

 

100,856

 

231,667

 

224,806

 

222,245

Total assets

1,381,600

 

1,383,466

 

1,358,652

CONSOLIDATED BALANCE SHEET (continued)
(unaudited; in £ thousands)

 

As of

 

31 December
2020

 

30 June
2020

31 December
2019

EQUITY AND LIABILITIES

 

 

 

 

Equity

 

 

 

 

Share capital

53

 

 

53

 

53

 

Share premium

68,822

 

 

68,822

 

68,822

 

Treasury shares

(21,305

)

 

(21,305

)

-

 

Merger reserve

249,030

 

 

249,030

 

249,030

 

Hedging reserve

(13,529

)

 

(32,565

)

(26,247

)

Retained earnings

122,508

 

 

87,197

 

169,341

 

 

405,579

 

 

351,232

 

460,999

 

Non-current liabilities

 

 

 

 

Deferred tax liabilities

30,851

 

 

31,337

 

37,766

 

Contract liabilities - deferred revenue

13,772

 

 

18,759

 

23,605

 

Trade and other payables

60,809

 

 

51,322

 

31,241

 

Borrowings

471,026

 

 

520,010

 

486,852

 

Lease liabilities

3,255

 

 

3,326

 

3,626

 

Derivative financial instruments

7,390

 

 

9,136

 

2,323

 

 

587,103

 

 

633,890

 

585,413

 

Current liabilities

 

 

 

 

Contract liabilities - deferred revenue

137,447

 

 

171,574

 

143,577

 

Trade and other payables

173,008

 

 

216,093

 

152,093

 

Income tax liabilities

12,607

 

 

4,005

 

9,429

 

Borrowings

65,114

 

 

5,605

 

5,288

 

Lease liabilities

568

 

 

1,067

 

1,622

 

Derivative financial instruments

174

 

 

-

 

231

 

 

388,918

 

 

398,344

 

312,240

 

Total equity and liabilities

1,381,600

 

 

1,383,466

 

1,358,652

 

CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited; in £ thousands)

 

 

Three months ended
31 December

Six months ended
31 December

 

2020

 

2019

 

2020

 

2019

 

Cash flows from operating activities

 

 

 

 

Cash generated from/(used in) operations (see supplemental note 4)

2,100

 

(13,833

)

74,510

 

(18,439

)

Interest paid

(2,498

)

(1,585

)

(10,184

)

(10,506

)

Interest received

-

 

406

 

1

 

1,050

 

Tax paid

(641

)

(208

)

(3,056

)

(1,697

)

Net cash (outflow)/inflow from operating activities

(1,039

)

(15,220

)

61,271

 

(29,592

)

Cash flows from investing activities

 

 

 

 

Payments for property, plant and equipment

(1,339

)

(9,879

)

(3,158

)

(13,030

)

Payments for intangible assets

(37,968

)

(11,598

)

(108,775

)

(187,311

)

Proceeds from sale of intangible assets

2,991

 

4,530

 

22,182

 

22,009

 

Payments for derivative financial assets

(939

)

-

 

(939

)

-

 

Net cash outflow from investing activities

(37,255

)

(16,947

)

(90,690

)

(178,332

)

Cash flows from financing activities

 

 

 

 

Proceeds from borrowings

60,000

 

-

 

60,000

 

-

 

Principal elements of lease payments

(412

)

(382

)

(820

)

(761

)

Net cash inflow/(outflow) from financing activities

59,588

 

(382

)

59,180

 

(761

)

Net increase/(decrease) in cash and cash equivalents

21,294

 

(32,549

)

29,761

 

(208,685

)

Cash and cash equivalents at beginning of period

58,940

 

140,307

 

51,539

 

307,637

 

Effects of exchange rate changes on cash and cash equivalents

386

 

(6,902

)

(680

)

1,904

 

Cash and cash equivalents at end of period

80,620

 

100,856

 

80,620

 

100,856

 

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 profit for the period to adjusted EBITDA

 

Three months ended
31 December

Six months ended
31 December

 

2020
£’000

2019
£’000

2020
£’000

2019
£’000

Profit for the period

63,828

 

35,007

 

33,558

 

36,135

 

Adjustments:

 

 

 

 

Income tax expense

4,343

 

16,738

 

7,538

 

18,139

 

Net finance income

(19,702

)

(15,258

)

(19,723

)

(6,820

)

(Profit)/loss on disposal of intangible assets

(14,278

)

715

 

(1,683

)

(11,302

)

Amortization

32,459

 

31,257

 

64,002

 

63,444

 

Depreciation

3,663

 

3,626

 

7,449

 

7,268

 

Adjusted EBITDA

70,313

 

72,085

 

91,141

 

106,864 

 

3 Reconciliation of profit for the period to adjusted profit for the period and adjusted basic and diluted earnings per share

 

 

 

Three months ended
31 December

Six months ended
31 December

 

 

2020
£’000

2019
£’000

2020
£’000

2019
£’000

Profit for the period

63,828

 

35,007

 

33,558

 

36,135

 

Foreign exchange gains on unhedged US dollar denominated borrowings

(23,752

)

(19,522

)

(42,835

)

(17,074

)

Foreign exchange losses immediately reclassified from the hedging reserve following change in contract currency denomination of future revenues

-

 

-

 

14,837

 

-

 

Fair value movement on embedded foreign exchange derivatives/foreign currency options

316

 

425

 

446

 

346

 

Income tax expense

4,343

 

16,738

 

7,538

 

18,139

 

Adjusted profit before income tax

44,735

 

32,648

 

13,544

 

37,546

 

 

Adjusted income tax expense (using a normalized tax rate of 21% (2019: 21%))

(9,394

)

(6,856

)

(2,844

)

(7,885

)

Adjusted profit for the period (i.e. adjusted net income)

35,341

 

25,792

 

10,700

 

29,661

 

 

 

 

 

 

Adjusted basic earnings per share:

 

 

 

 

Adjusted basic earnings per share (pence)

21.69

 

15.67

 

6.57

 

18.02

 

Weighted average number of ordinary shares used as the denominator in calculating adjusted basic earnings per share (thousands)

162,939

 

164,573

 

162,939

 

164,573

 

Adjusted diluted earnings per share:

 

 

 

 

Adjusted diluted earnings per share (pence)

21.63

 

15.66

 

6.55

 

18.01

 

Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating adjusted diluted earnings per share (thousands)

163,385

164,746

163,385

164,737 

4 Cash generated from/(used in) operations

 

Three months ended
31 December

 

Six months

ended
31 December

 

2020
£’000

2019
£’000

 

2020
£’000

 

2019
£’000

Profit for the period

63,828

 

35,007

 

 

33,558

 

 

36,135

 

Income tax expense

4,343

 

16,738

 

 

7,538

 

 

18,139

 

Profit before income tax

68,171

 

51,745

 

 

41,096

 

 

54,274

 

Adjustments for:

 

 

 

 

 

 

Depreciation

3,663

 

3,626

 

 

7,449

 

 

7,268

 

Amortization

32,459

 

31,257

 

 

64,002

 

 

63,444

 

(Profit)/loss on disposal of intangible assets

(14,278

)

715

 

 

(1,683

)

 

(11,302

)

Net finance income

(19,702

)

(15,258

)

 

(19,723

)

 

(6,820

)

Non-cash employee benefit expense – equity-settled share-based payments

488

 

227

 

 

1,753

 

 

365

 

Foreign exchange losses/(gains) on operating activities

50

 

87

 

 

1,174

 

 

(286

)

Reclassified from hedging reserve

114

 

2,957

 

 

(412

)

 

5,811

 

Changes in working capital:

 

 

 

 

 

 

Inventories

750

 

129

 

 

(606

)

 

(405

)

Prepayments

3,519

 

2,171

 

 

(9,908

)

 

(181

)

Contract assets – accrued revenue

(38,920

)

(38,165

)

 

(19,829

)

 

(38,566

)

Trade receivables

9,950

 

6,160

 

 

63,256

 

 

8,504

 

Other receivables

67

 

14,655

 

 

(132

)

 

574

 

Contract liabilities – deferred revenue

(41,234

)

(66,449

)

 

(39,114

)

 

(56,318

)

Trade and other payables

(2,997

)

(7,690

)

 

(12,813

)

 

(44,801

)

Cash generated from/(used in) operations

2,100

 

(13,833

)

 

74,510

 

 

(18,439

)

 

Contacts

Investor Relations:
Corinna Freedman
Head of Investor Relations
+44 738 491 0828
Corinna.Freedman@manutd.co.uk

Media Relations :
Charlie Brooks

Director of Communications
+44 161 868 8148
charlie.brooks@manutd.co.uk

Contacts

Investor Relations:
Corinna Freedman
Head of Investor Relations
+44 738 491 0828
Corinna.Freedman@manutd.co.uk

Media Relations :
Charlie Brooks

Director of Communications
+44 161 868 8148
charlie.brooks@manutd.co.uk