MANCHESTER UNITED PLC - Investis by pengxuebo


									                                                                     30 September 2003

                             MANCHESTER UNITED PLC

             Preliminary Results for the twelve months ended 31 July 2003


      Group turnover up 18% to £173.0 million (2002: £146.1 million) – benefiting from
       additional games from cup successes, the new Nike partnership and hosting of
       Champions League Final
      Group operating profit before player amortisation and disposals and exceptionals
       up 45% to £50.0 million (2002: £34.5 million)
      Profit before tax increased by 22% to £39.3 million (2002: £32.3 million) –gains
       from player disposals down £4.5m from 2002

      Earnings per share up 20% to 11.5p (2002 9.6p)

      Total basic dividend up 19% to 2.50p (2002: 2.10p) – the 12th consecutive year of
       progressively increased dividend

      Special dividend of 1.5p based on strong operating result and tax provision
       release (2002: 1.0p)
      Debt free balance sheet, net cash of £28.6 million (2002: £0.9 million net cash)
      Premiership champions for 8th year in 11. Progress into the quarter-finals of the
       UEFA Champions League for the seventh successive season – a record in

David Gill, Chief Executive, commented:

“These results reflect the significant success that Manchester United has achieved both
on and off the field.

We have continued to leverage our global brand through our partnerships with Nike,
Vodafone and our Platinum sponsors and to grow our knowledge of our fan base.
Looking ahead, we will maintain our focus on achieving playing success while delivering
continued strong performances from our commercial operations.”


David Gill, Chief Executive                         Tel: 020 7251 3801 (on 30.09.03)
Nick Humby, Group Finance Director                  Tel: 0161 868 8325 (thereafter)
Paddy Harverson, Director of Communications
Manchester United PLC

James Murgatroyd                                    Tel: 020 7251 3801
James Leviton
Chairman's Statement

Strong Performance

Over the past twelve months Manchester United has continued to deliver a strong
performance both as a team and as a business. The successes have been achieved
against a background of weak macro economic conditions and uncertain financial
markets which have been amplified in the football industry as a whole by its high levels
of debt and over-dependence on media revenues.

Manchester United has differentiated itself through its results both on and off the pitch.

Team Success

The team emphatically answered its critics by remaining unbeaten in the Premiership
from the start of 2003 to win the club’s 8th Premiership title in 11 years. The team
reached the UEFA Champions League Quarter Finals for the seventh successive
season - the best record of any team in Europe - before losing to Real Madrid in
arguably the best tie in the competition. We also reached our first Worthington Cup Final
in nine years. Our loyal fans have once again showed tremendous support for the team
with sell out crowds at virtually every one of our 33 first team matches at Old Trafford.
We appreciate the contribution that this support makes to our team’s and business

Strengthening the Squad

During the off-season we have been exceptionally active in making progress on one of
our core strategic goals, to maintain the playing success of the team. The sales of David
Beckham and Juan Sebastian Veron, the release of David May and Laurent Blanc at the
end of their contracts and the acquisitions of Tim Howard, Eric Djemba Djemba, David
Bellion, Kleberson and Cristiano Ronaldo, were all important steps. They have
strengthened the playing squad and equipped the manager, Sir Alex Ferguson, with the
players he needs to keep the club challenging for major trophies. These transfers have
decreased the average age of the squad to 25 and have also reduced average player
wages. I would like to express my appreciation of the contribution made by the players
who have left, in particular David Beckham who has been with the club since he was 16
and played a key part in our successes over the last decade.

Excellent Financial Results

Our financial results have benefited from the additional games at Old Trafford (33
compared to 27 last season) as a result of cup successes, the start of the new Nike
partnership, and strong contributions from the UEFA Champions League Final at Old
Trafford and our pre-season tour to the USA.

Group turnover of £173m was 18% up on the previous year. £8.5m (2002 £1.3m) was
produced by our domestic cup runs, £27.6m (2002 £29.9m) from our participation in the
UEFA Champions League, £4.7m from the USA tour and hosting the UEFA Champions
League final. In addition, the first year of our new Nike contract is worth an additional
£3.5m above the level guaranteed for the 2nd year onwards of £20.7m. Aside from these
factors the underlying revenues excluding cup success were £128.7m, which was 12%
up on a like for like basis on the previous year, as a result of the new Nike and Platinum
sponsor contracts and higher UK TV revenues.

The ratio of wages costs to turnover was 46% for the year, well within our target of 50%
of turnover as a result of continued financial discipline and the strong cup performances.
Absolute wages went up by £8.7m, a rise of 12%, reflecting the new contractual
commitments made in the prior year and higher bonuses from our success.

Group Operating Profit before Exceptionals, Player Trading and Amortisation was
£50.0m, 45% above the previous year, benefiting from strong additional contributions
from the new Nike partnership of £14.8m (compared to the previous arrangements), a
total of £3.0m from the UEFA Champions League final and USA tour and the domestic
cup games of £3.6m (2002 £1.1m). The UEFA Champions League games contributed
45% (2002 73%) of these profits.

Player Trading Profits

The Player Trading Profits were £12.9m (2002 £17.4m). The major element of this was
£15.9m for David Beckham. This is calculated based on the unconditional proceeds of
25m Euro, less costs of the transaction and the discount paid to our bank to receive this
sum on 2nd September 2003 as opposed to over the four years originally agreed with
Real Madrid. This profit, together with additional receipts from Blackburn for the sale of
Andrew Cole and Dwight Yorke, was offset by the provision for the loss on the sale of
Veron to Chelsea of £4.5m.

Increased Profit after Tax

The Profit after tax was £29.8m (2002 £25.0m) with the underlying tax rate of 32.4 per
cent being reduced by 8.8 percentage points as a result of the release of £3.4m
provisions mainly in respect of a property transaction which took place in 1996.

Strong cash generation

The excellent financial results and continued discipline over costs and cash
management have strengthened our balance sheet further. At the year-end we had
cash and deposits of £28.6m. We spent £4.2m on capital projects, net of disposals, and
£7.9m in net player acquisition during the year with additional commitments to spend up
to £23.9m on the five players we have bought in this summer. The balance sheet
includes debtors of £23.4m principally from the sales of Beckham (received on 2nd
September) and Stam (due during the 2004/5 financial year), which together with a net
£12m from the sale of Veron means we have total unconditional receipts of £35.4m over
the next two years. Our cash generation will enable us to continue to strengthen the
squad as necessary without the use of debt.

We completed the sale of the Golden Tulip hotel investment and recorded a profit on
disposal of £0.4m in the second half year. Further conditional payments could be
received depending on the release of monies retained for potential warranty claims.
Demanding Year for Our Staff

The staging of 33 home Manchester United games, a FA cup semi-final, the UEFA
Champions League Final, the Super League Grand Final and a Bon Jovi concert, made
the year a demanding one for our staff. They have delivered each event with great skill
and success. We are delighted to have introduced a new profit-sharing scheme for the
staff with effect from this year, which enables them to share in the financial success that
these extra games and events bring.

OFT Decision

Manchester United was disappointed that the Office of Fair Trading has decided that its
limited involvement in the exchange of price information with Umbro for the short period
of May to September 2000 had the object or effect of maintaining prices for replica shirts.
The fine of £1.65 million has been fully provided for in these results as an exceptional

Manchester United believes that there are strong grounds to appeal certain aspects of
the OFT findings and therefore it has launched an appeal against these aspects to the
Competition Appeal tribunal. Manchester United intends to make no further public
comment on the matter until the completion of the appeal process.

Board Changes

Martin Edwards stepped down from the PLC Board on 29 November 2002 and as
Chairman of the football club in May after a long association since 1970. We would like
to repeat our thanks to Martin for his many contributions to the Club over the years.

In addition, Peter Kenyon resigned as Chief Executive in September 2003 and the Board
appointed David Gill, the Group Managing Director, as his replacement, with immediate
effect. The Board would again like to record its thanks to Peter for his significant
contribution to our success over the last 6 years.

Improved Shareholder Returns

The success of the Group over the last year has seen a significant re-rating of our
shares which have risen over 80% since September last year. We continue to work to
deliver value to our shareholders.

The Board has recommended a final basic dividend of 1.83p per share, making a total
basic dividend for the year of 2.5p per share, 19 per cent above last year. This is the
12th consecutive year of increased dividend.

Last year we announced our policy to consider special dividends depending on the
overall profitability of the Group. As a result the Board recommends a special dividend
of 1.5p per share (2002 1.0p per share) based on the excellent operating result and the
tax provision release referred to above, together with the strong cash position of the
Group. No part of this dividend is dependent on this year’s player trading profits, since
the Board intends that the cash generated from these sales will be reinvested in the
playing squad, to help maintain the playing success.
The Board has also decided that in future years any interim basic dividend will normally
be 50% of the previous year’s total basic dividend. This split will more closely reflect the
level of profits earned in the first half of each year.

Strategy for Growth

Our strategy for growth remains on course. The four main themes of this strategy are: -

          Maintaining the team’s playing success
           The changes to the squad seen in the summer have reduced the average
           age to 25 (27 last year) and provided the Manager with greater depth and
           more options for team selection. Our academy structure continues to
           produce young prospects who may have the potential to break through into
           the first team.

          Developing the value of media rights
           The recently announced outcome of the invitation to tender for domestic FA
           Premier League TV rights for the period 2004/05 to 2006/07 has removed
           some of the uncertainty over the value of the core media rights. However, we
           are continuing to look for ways to exploit additional and exclusive content by
           creating club products that compliment the core FAPL offering and
           distributing them through our own media channels, which include MU
           Interactive, MU Mobile and MU Pictures.

          Leveraging the global brand
           The relationship with Nike has taken our brand strategy forward significantly
           during the year with the launch of the new home shirt in 58 territories and
           over 2.5 million replica shirts (home, away and third strip) sold in the year.
           Over 40 per cent of the Nike Merchandising sales were generated outside the
           UK. The pre-season tour in the USA was very successful, building on our fan
           base there and our partner relationships. Over the four games 270,000
           tickets were sold.

          Converting more fans to customers
           Our focus on improving our service to our fans and building our relationship
           with them remains a company-wide objective. The Customer Relationship
           Management system is now fully operational with 1.9 million fan records on
           the database, towards our target of 3.5 million fan records by the end of
           2005. We continue to learn about our fans’ interests and develop products
           and services for them. The launch, in June, of our One United membership
           scheme led to 125,000 new members by 31 July 2003 compared to 87,000
           members at the same time last year. In August we also launched the new
           Red Cinema concept in Salford Quays, near the Old Trafford stadium, as
           another new service for our fans.


We started the 2003/04 season full of confidence after the four successful wins in the US
against high quality opposition. Our victory over Arsenal in the Charity Shield was
satisfying but was overshadowed by the tragic death the day before of our young player,
Jimmy Davis, in a car accident.
The manager and the players remain focused on maintaining the team’s success in the
Premiership and progressing further in Europe. Our whole business is working hard to
grow core revenues and profits.

The close season player trading activity has ensured that the Group will maintain total
wages costs below our target of 50 per cent of turnover. We expect wages for 2003/04,
for the same level of success, to be no higher than in 2002/03.

Manchester United has never been in a more robust financial position and the Board
looks forward to the rest of the season with optimism about further playing success. That
success, combined with our business development initiatives and the Group's financial
strength, will enable the Group to continue to generate value for our shareholders.
                                           MANCHESTER UNITED PLC


                                                                            2003                        2002
                                                                                                      (note 1)

                                                   excluding player    Player
                                                   amortisation and amortisation
                                                       trading       and trading         Total          Total

                                           Notes         £'000             £'000         £'000         £'000
Turnover: Group and share of joint                            174,936              -    174,936        148,070
Less: share of joint venture                                   (1,935)             -     (1,935)        (2,008)
Group turnover                               2                173,001              -    173,001        146,062

Operating expenses – other                   3              (123,015)      (21,018)    (144,033)      (129,230)
Operating expenses - exceptional costs       4                 (2,197)             -     (2,197)        (1,414)

Total operating expenses                                    (125,212)      (21,018)    (146,230)      (130,644)

EBITDA                                                         55,072              -         55,072     40,750
Depreciation                                                   (7,283)             -     (7,283)        (7,685)
Amortisation                                                         -     (21,018)     (21,018)       (17,647)

Group operating profit/(loss)                                  47,789      (21,018)          26,771     15,418
Share of operating loss in:
- Joint venture                                                  (407)             -          (407)       (501)
- Associate                                                       (47)             -           (47)         (3)

Total operating profit: Group and                              47,335      (21,018)          26,317     14,914
share of joint venture and associates
Profit on disposal of associate                                   409              -           409              -
Profit on disposal of players                                        -       12,935          12,935     17,406
Profit/(loss) before interest and taxation                     47,744        (8,083)         39,661     32,320

Net interest (payable)/receivable                                                             (316)         27
Profit on ordinary activities before taxation                                                39,345     32,347
Taxation                                     5                                           (9,564)        (7,308)
Profit for the year                                                                       29,781        25,039
Dividends                                    6                                          (10,391)        (8,053)
Retained profit for the year                                                                 19,390     16,986

Basic and diluted earnings per               7                                                 11.5         9.6
share (pence)
Basic and diluted adjusted                   7                                                 14.3       10.2
earnings per share (pence)

* Earnings before interest, tax, depreciation and amortisation of intangible fixed assets.

The results for both the current and prior period derive from continuing activities.

There were no recognised gains and losses other than stated above and therefore no statement of recognised gains
and losses has been presented.
                                          MANCHESTER UNITED PLC

                                        CONSOLIDATED BALANCE SHEET

                                                At 31 July 2003

                                                                        2003       2002

                                                         Notes         £'000      £'000
Fixed assets
Intangible assets                                         8           55,299     82,209
Tangible assets                                                      125,526    128,329
Loan to joint venture                                                  1,000      1,000
Investment in associates                                                 189        789
Investment in own shares                                                 415           -
                                                                     182,429    212,327
Current assets
Stocks                                                                   208        196
Debtors – amounts falling due within one year             9           30,756     30,744
Debtors – amounts falling due after more than one year    9           13,219      1,535
Intangible asset held for resale                                      11,941           -
Cash at bank and in hand                                              28,576        933
                                                                      84,700     33,408

Creditors - amounts falling due within one year           10         (50,202)   (53,459)

Net current assets/(liabilities)                                      34,498    (20,051)

Total assets less current liabilities                                216,927    192,276

Creditors - amounts falling due after one year            11          (2,391)     (688)

Provision for liabilities and charges
Deferred taxation                                                     (5,506)    (5,247)
Investment in joint venture:
- Share of gross assets                                                  375        391
- Share of gross liabilities                                          (4,641)    (3,812)
                                                                      (4,266)    (3,421)
Accruals and deferred income
Deferred grant income                                                 (1,011)    (1,194)
Other deferred income                                                (46,920)   (44,283)
Net assets                                                           156,833    137,443

Capital and reserves
Share capital                                                         25,977     25,977
Other reserve                                                            500        500
Profit and loss account                                   12         130,356    110,966
Equity Shareholders' funds                                13         156,833    137,443
                                               MANCHESTER UNITED PLC

                                         CONSOLIDATED CASHFLOW STATEMENT

                                              For the year ended 31 July 2003

                                                                                 2003                  2002
                                                            Notes        £'000          £'000     £'000         £’000

Net cash inflow from operating activities                                               57,939                 42,807

Returns on investments and servicing of finance
Interest received                                                           316                       521
Interest paid                                                              (167)                    (445)
Net cash inflow from returns on
  investments and servicing of finance                                                     149                     76

Taxation paid                                                                       (10,602)                   (9,433)

Capital expenditure and financial investment
Proceeds from disposal of players' registrations                         11,122                    13,006
Purchase of players' registrations                                      (18,983)                  (25,089)
Sale of tangible fixed assets                                             2,235                     1,165
Purchase of tangible fixed assets                                        (6,425)                  (15,088)
Investment in own shares                                                   (623)                          -
Net cash outflow from capital expenditure
  and financial investment                                                          (12,674)                  (26,006)

Acquisitions and disposals
Proceeds from sale of investment in associated company                      962                           -
Net cash inflow from acquisitions and disposals                                            962                       -

Equity dividends paid                                                                   (8,131)                (5,274)
Increase in cash in the year                                 14                         27,643                  2,170

Net cash generated from operating activities
Operating profit                                                                        26,771                 15,418
Depreciation charges                                                                     7,283                  7,685
Amortisation of players' registrations                                                  21,018                 17,647
Amortisation of investment in own shares                                                   208                       -
Profit on disposal of tangible fixed assets                                              (691)                  (150)
Grants released                                                                          (183)                  (216)
(Increase)/decrease in stocks                                                              (12)                 2,013
(Increase)/decrease in debtors                                                          (5,357)                 1,470
Increase/(decrease) in creditors and deferred income                                     8,902                 (1,060)
Net cash inflow from operating activities                                               57,939                 42,807
                                                MANCHESTER UNITED PLC

1 Accounting policies
  The principal accounting policies of the Group have remained unchanged from those set out in the 2002 Report and
  Accounts. Commercial turnover includes the minimum guarantee from Nike under the sponsorship and licencing
  contract which commenced on 1 August 2002. Additional income receivable under the profit-sharing arrangements
  contained in the agreement will only be taken to profit once it is probable that it will not be recouped from future
  minimum guarantees.

  Profit and Loss account presentation
  The profit and loss account presentation has been changed from Format 1 (which analyses operating costs by
  function) to Format 2 (which analyses operating costs by type), both of which are permitted by the Companies Act
  1985. In the opinion of the directors, Format 2 better reflects the nature of the Group’s operations following the
  transfer of its merchandising operations to Nike. Prior period comparatives have been reformatted with no change to
  operating profit.

  Restatement of operating expenses
  Professional fees incurred in 2002 relating to the OFT enquiry into the pricing of replica kit amounting to £550,000,
  previously disclosed in other operating expenses, have been re-classified as exceptional operating expenses as
  further costs, exceptional in nature and relating to this matter, have been incurred in 2003.

2 Turnover
                                                                                            2003             2002
                                                                                           £'000             £'000
  Match day
                                                                                          70,593           56,253
                                                                                          56,218           51,948
                                                                                          46,190           37,861

                                                                                         173,001          146,062

3 Operating expenses - other
                                                                                            2003             2002
                                                                                           £'000            £'000
  Operations excluding player amortisation and trading:
  Staff costs                                                                             79,517           70,812
  Depreciation                                                                             7,283             6,923
  Operating lease costs - land and buildings                                                 754               307
  Other operating charges                                                                 36,118           33,410
  Auditors' remuneration: audit services                                                      60                55
  Auditors' remuneration: non-audit services                                                 157               442
  Grants released                                                                           (183)            (216)
  Profit on disposal of tangible fixed assets                                              (691)            (150)
                                                                                         123,015          111,583
  Player trading and amortisation:
  Amortisation of players' registrations                                                  21,018           17,647
                                                                                         144,033          129,230
4 Operating expenses - exceptional costs
                                                                                            2003         2002
                                                                                           £'000         £'000

  OFT enquiry into price fixing of replica football kit                                    1,693          550
  Share of deficit on Football League Pension and Life Assurance Scheme                      504              -

  Restructuring of merchandising operations                                                    -          864
                                                                                           2,197        1,414

  The charge of £1,693,000 (2002 £550,000) relating to the OFT enquiry comprises a fine of
  £1,652,000 (2002 £nil) and professional fees of £41,000 (2002 £550,000 previously
  disclosed in other operating charges).

  The charge of £864,000 relating to the restructuring of the merchandising operations in 2002
  comprises accelerated depreciation charges charges on fixed assets of £762,000 and
  redundancy costs of £102,000.

5 Taxation
                                                                                            2003         2002
                                                                                           £'000         £'000

  Corporation tax at 30% (2002 - 30%) on the profit for the year                          12,753       11,950
  Adjustment in respect of previous years                                                 (3,448)      (3,500)
  Total current tax                                                                         9,305        8,450

  Deferred taxation: origination and reversal of timing differences                              51    (1,614)

  Adjustment in respect of previous years                                                    208           472
  Total deferred tax                                                                         259       (1,142)

  Tax on profit on ordinary activities                                                     9,564        7,308

  The tax rate for the year is lower than the standard rate of corporation tax in the UK (30%)
  mainly due to an adjustment in respect of previous years of £3,140,000 which arose
  Following the resolution of the tax treatment of a property transaction completed in 1996.

6 Dividends
                                                                                          2003         2002
                                                                                         £'000        £'000
  Interim paid of 0.67 pence per share (2002 - 0.64 pence per share)                     1,741        1,663
  Proposed final of 1.83 pence per share (2002 - 1.46 pence per share)                   4,754        3,792
  Proposed special of 1.50 pence per share (2002 - 1.00 pence per share)                 3,896        2,598
                                                                                        10,391        8,053

  Shareholders are advised that the shares are expected to be marked ex-dividend on 8
  October 2003 and the final and special dividends will be paid on 21 November 2003 to
  those registered on 10 October 2003.
7 Earnings per ordinary share

  The calculation of earnings per share is based on the profit for the year and the weighted average number of ordinary
  shares in issue for the year of 259,276,711 (2002 - 259,768,040).

  Share options outstanding at each year end have no dilutive effect on the stated earnings per share.

  An adjusted earnings per share figure has been calculated in addition to the earnings per share required by FRS 14,
  'Earnings per Share' and is based on earnings excluding the effect of exceptional charges and player trading. It has
  been calculated to allow the shareholders to gain a clearer understanding of the trading performance of the Group.
  Details of the adjusted earnings per share are set out below:

                                                                            2003                           2002

                                                                     Earnings       Earnings        Earnings Earnings
                                                                     after tax        per           after tax  per
                                                                                     share                    share
                                                                       £,000           p             £,000      p

  Basic and diluted earnings per share                                    29,781        11.5             25,039        9.6
  Exceptional costs                                                        1,538          0.6             1,218        0.5
  Amortisation of players' registrations                                  14,713          5.7            12,353        4.8
  Profit on disposal of players' registrations                            (9,055)       (3.5)        (12,184)         (4.7)
  Adjusted earnings per share                                             36,977        14.3             26,426       10.2

8 Intangible fixed assets
  Cost of players' registrations
  At 1 August 2002                                                                                   108,427
  Additions                                                                                              10,577
  Disposals                                                                                              (2,257)
  Transfer to asset held for resale                                                                  (27,448)
  At 31 July 2003                                                                                        89,299

  Amortisation of players' registrations
  At 1 August 2002                                                                                       26,218
  Charge for the year                                                                                    21,018
  Provision for loss on disposal                                                                          4,528
  Disposals                                                                                              (2,257)
  Transfer to asset held for resale                                                                  (15,507)
  At 31 July 2003                                                                                        34,000

  Net book value of players' registrations

  At 31 July 2003                                                                                        55,299

  At 31 July 2002                                                                                        82,209
9 Debtors
                                                                                           2003       2002
                                                                                           £'000      £'000
   Amounts falling due within one year
   Trade debtors                                                                          14,255     20,617
   Other debtors                                                                             306       830
   Prepayments and accrued income                                                         16,195      9,297
                                                                                          30,756     30,744
   Amounts falling due after more than one year
   Trade debtors                                                                          12,284      1,500
   Other debtors                                                                             935        35
                                                                                          13,219      1,535

                                                                                          43,975     32,279

   Trade debtors include transfer fees receivable from other football clubs of £23,398,000 (2002 -
   £17,185,000) of which £11,985,000 (2002 £1,500,000) is receivable after more than one year.

10 Creditors - amounts falling due within one year
                                                                                          2003        2002
                                                                                          £'000       £'000
   Trade creditors                                                                      12,579       21,579
   Corporation tax                                                                        8,516       9,813
   Social security and other taxes                                                        8,690       4,711
   Other creditors - pensions                                                              277         362
   Accruals                                                                             11,490       10,604
   Dividends proposed                                                                     8,650       6,390
                                                                                        50,202       53,459

   Trade creditors include transfer fees payable to other football clubs of
   £6,069,000 (2002 - £13,631,000).

11 Creditors - Amounts falling due after more than one year
                                                                                          2003        2002
                                                                                          £'000       £'000
   Trade creditors                                                                        1,500          -
   Other creditors - pensions                                                               891        688
                                                                                          2,391        688
12 Profit and loss account
                                                                                        2003                  2002
                                                                                        £'000                £'000
   At 1 August                                                                       110,966                93,980
   Profit for the year                                                                19,390                16,986
   At 31 July                                                                        130,356               110,966

13 Reconciliation of movements in equity shareholders' funds
                                                                                        2003                  2002
                                                                                        £'000                £'000
   Profit for the year                                                                 29,781               25,039
   Dividends                                                                         (10,391)               (8,053)
   Net addition to shareholders' funds                                                 19,390               16,986
   Opening equity shareholders' funds                                                137,443               120,457
   Closing equity shareholders' funds                                                156,833               137,443

14 Reconciliation of net cash inflow to movement in net funds
                                                                                        2003                  2002
                                                                                        £'000                £'000
   Increase in cash in the period                                                      27,643                2,170
   Opening net funds/(debt)                                                               933               (1,237)
   Closing net funds                                                                   28,576                   933

15 Analysis of changes in net funds
                                                                                  At 1 August    Cash At 31 July
                                                                                        2002     flows        2003
                                                                                        £'000 £'000          £'000
   Cash at bank and in hand                                                               933 27,643        28,576

16 Additional information

   a. The balance sheet at 31 July 2003 and the profit and loss account, cashflow statement and associated notes for
   the year then ended have been extracted from the Group's 2003 statutory financial statements upon which the
   auditors opinion is unqualified and does not include any statement under Section 237 of the Companies Act 1985.
   The figures for the year ended 31 July 2002 are extracted from the statutory accounts filed with the Registrar of
   Companies and which contained an unqualified audit report. The Group's full Report and Accounts for the year
   ended 31 July 2003 will be filed with the Registrar of Companies in due course.

   b. The Annual General Meeting is to be held in the Manchester Suite, North Stand, Old Trafford, Manchester, M16
   0RA at 11 am on 14 November 2003. The full Report and Accounts will be posted to shareholders on 15 October

   c. This statement constitutes non statutory accounts within the meaning of Section 240 of the Companies Act 1985
   and was approved by the Directors and agreed with the Company's auditors, PricewaterhouseCoopers LLP, on 30
   September 2003.

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