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T h e

E v e r t o n

Footba l l C l u bC o m p a n y Limi t ed

Annual ReportanaStatement of Accountsat 31 st Mav 1988

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THE

EVERTONFOOTBAlLCLUB

COMPANY L.Jl\4ITED

NOTICE OF MEE=TING

NOTICE IS HEREBY GIVEN that the one hun dre d &ninth Annual General Meeting of the Company "',-illbe held at the offices of The Fverton Football ClubCompany Limited, Goodison Park, Liverpool L4 4l:L, onThursday the 25th Day of August, 1988, at 7.00 p.m.to receive and consider the Report of the Directors, andth e Accounts for the Year ended 31st May, 1988, toelect Dlrectors, to appoint Auditors fo r the ensuingyea" and to fi x their remuneration, an d to transact anyother business whlch ma y be transacted at th e Annual

General Meeting of th e Company.

The Transfer Books of the Company will beclosed um;:26th August, 1988.

By Order of th e Board.

J. GREENWOOD, Secretary,Goodison Park, LIverpool L4 4EL.

20th July, 1988

Admission on Presentation o fAnnual Report

Not ice is also given that a Member of the Companyentitled to attend and vote .t the above Annual GeneralMeeting is entitled to appoint a proxy to attend andvote instead of him, and that th e proxy need , ) ' ) t be amember of th e Company.

Proxies must be lodged at the Registered Office o f theCompany, no t less than 48 hours before the time of theMeeting.

Directors

P. D. Carter, C.B.E.} ChairmanT. H. W. Scott, Vice-ChairmanA. W. WaterworthK. M. Taml inO. A. B. NewtonD. H. PitcherD. M. Ma rsh

Secretary and Registered Office

J. Greenwood,Goodison Park, Liverpc 01 L4 4EL

Manager

J. C. Harvey

Bankers

Trustee Savings Bank

Auditors

Rogers. Bowler & Co.

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Wales

T H E ~

EVERTON FOOTBALLCLUBCOMPANY LIMITED

CHAIRMAN'S REPOR'r

I h..ve much pleasure in submitting "l-)e FinancialReport and Accounts.

The 1 9 8 7 l ~ 8season wa s one of mixed blessings.In spite of a spirited challenge formost oftha season,we rerformed indifferently towards the end I and onlymanaged fourth position in th e league.

We wo n th e Charity Shield against Coventry Citythe fif th vear in succession that we have participatedin this p.e stiqious event. \Ve also reached the sernlfinal of the Littlewoods Cup.

This wa s Colin Harvey's first season as Manager,

and whilst Iam sure he would have wished fo r greatersuccess. he made th e considerable adjustmentbetween First Team Coach to Manager with theassurance and confldence we expected.

Colin appointed Mike Lyons as Reserve TeamCoach, and we were delighted when Paul Poweraccepted our offel to join th e staff as Youth Team

J8ch - Paul captured th e imagination of all Evertontans with his whole-hearted style of play. JohnClinkard, our Physiotherapist left fo r a position withOxford United, and we welcc ne Chris Goodson ashisreplacement, and we wish him well in his neposition.

We have again been involved in considerabletransfer activity. Since my last report we purchased:A. Chamberlain, I. Wibon, S. McCall, and within thelast fe w days P. Nevin from Chelsea.

Players sold during the same period were R. Mimms/I. Marshal l, S. S torer, D. Coyle, D. Mountfield, A.H(1f'PPf and G. Stevens.

"IVa also signed 8 $ professionals on completion oftheir Y ." .5. contracts: J. Carberry, P.Jones, A. Ward,M. Wright and E. Ycuds . We wish them success intheir professional career.

4

International honours were agam awarded t o ~ -

Englend G. Stevens, T. steven, P. Reid,D. Watson

~ , " . . . .. - j ,-

N. Southall, K. Ratcliffe,P. Van Den Hauwc

" .. . -. ... 7 " ~ !", ~ ,

Eire .. ~ _ ~ 1 5 ~_ ~ ~ e ~ ~ J~ c e t l C ! n . q~ . ~ ~ . E ? h ~ , ~ ~ ,I ~Wilson~ ~ g ! a , ! , !: ~ . '~ . ~ . ~ , ~ y ' l i ~ r : ! l " ~ I . I .Snodin, A .. HeathEnglandUnder 20Tout a t

Brazil J . Ebbrell~ I_ ~ ~ , . \0. .... , ... _, . . . . . ""I!"" .. - _ ~ , , _ _ . .. ~ '' . ~EnglandUnder 17 . . ~ t U ~..__ . 2 . ~ , . g . ~ l ~ l a ! )...._. __. __

I am sure we all wish both our Captain, KevRatcliffe, and Paul oracewell th e very ~ e s tof luctheir long fight fo r recovery follOWIng their inproblems.

We have strengthened our Commercial Departmentwith a ne w position of Marketing Manager, occupieby Derek Johnstone, and appointed Nigel CoatesPromotion Sales Manager in succession to Mr .Williams.

For th e fourth year in succession I the Everton stawho produce the prugramme were presented w'The Programme ofthe Year' Award - our warmecongratulations to them all.

Tota I attendances at Goodison Park were 881 ,2compared with 880,753 the previous season. O'Javerage league attendances reflected th e fadisappointment during th e latter part of the seasoand were down from 34, 190 to 28,722, adecrease15.8%.

We had a particularly exciting run of games inF.A. Cup I unfortunately losing 1 0 to LiverpooRound 5.

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THE

EVERTON FOOTBALLCLUBCOMPANY LIMITED

REPOR1, OF THE DIRECTORS

Fixod assets

Full details of the changes to the Fixed Assetsshown in the Notes to the Accounts.

DirectorsThe directors in office in the year and tne bcneinterests in th e issued crdlnarv share capital we"'.)foltows:

In accordance with th e Articles of Ass 0 cMessrs, D. A. B. Newton and D. M. Marsh retirotation and, being eligible, offer themselves felection. Nominations have been received on hof Messrs . G. H. E. Birch, and P. t , Parry.

312

31 st31st May1987

89

7Mr. P. D. Carter, C.B.E.Mr. T. H. W. ScottMr. G. A. Wat ts

(Retired August 13th, 1S87)Mr . K. M. TamlinMr. J . Search, G.M.

(Deceased March 13th, 1988) 4Mr . D. A. 8. Newton 3Mr. D. H. Pitcher

(Appointed August 13th, 1987)Dr. D. M. Marsh

(Appoir.ted April 20th, 19881

The Directors consider this prudent in the presentclimate of inflated transfer fees, Since th e end of theFi.,arlcial Year, ar d ;;IS at today's date, a fur ther 1.8m has beer" sxpended on incoming players withoutgoing transters reducing this f igure by 1. 525m.

The surplus on "football activities" during the year isf94,252 comparec.i with a lass of .19,295 in theprevious year. Donations and income from otheractivities also shuwed a welcome increase from643,173 to 782,942.

Principal activityThe principal activity of the Company continues to bethat of a Protessloncl Football League Club.

The Directors cons der the state of the Cali' .-,any'saffairs at the year end to be satisfactory.

Dividend

The Directors do no t recommend th e payment of adividend.

Review fJ f buslness

The results of the period's trading are given on page7 of the accounts .

The net ~ profit for the year is 177,24,3 afte rincreasing th e Transfor Fee Reserve by an additional

1. 5m to a total of 2.25m.

AuditorsThe auditors, Messrs. Rogers, Bowler e't Co., wproposed for re..appoint .ncnt in accordanceSection 384 of the Companies Ac t 1985.

By order of th e BoardP. 0, CARiER,Chairman

18th July f 1988.

6

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E'tERTON FOOTBAILL CLUBCOMPi\NY LIMITED

PROfiT AI\JD LOSS ACCOUNTtor the year ended 31st M ~ 1 Y1988

Notos 1988 1e

~ n c o m e

Gate receipts and income fromrelated footballing activities 3,8'; L289 3,3 4,

Trading and other income 1,297,436 961,2

5,108,725 t:,316,84

ExpenditureCost of goods for resale 586,717 503,0Staff costs 10 2,240,460 2,262,9Training, travel, match and other expenses 504,828 376,9Ground expenses and maintenance 470,931 283,7Utilities 313,181 295,7Depreciation 2 93,787 63,6Auditors' remuneration 5,000 5,Other operating expenses 241,134 182,5

4,456/038 3,973,70-.,.,....---Balance before transfe1 fees 65:- ' j87 342,1Add: Transfer fees recelvable 1,30H,500 2,937,00Deduct: Transfer fees, etc., payable (441.000) (2,929,30

Balance after transfor fees 1,517/187 349,8Add: Interest receivable 85,349 127,0Deduct: Interest payable 11 (8,167) (23,0

Profit on ordinary actlvleles before taxation 1,594,369 453,8Taxation ra ordinary actlvltles 12 164,451 ) (40,O

Profit on ordinary activitio& after taxa tlon 1,529/918 413,7

Add: Donations receivable 13 147,325 177,7Transfer from Transfer Fees ResElrve 9 330,0

Deduct: Transfer to Transfer Fees Reserve 9 (1,500,000) (750,0

Prof:t transferrod to reserves 177,243 171,5

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EJ-iERTON F O OT B AL L C LU BCOMPANY LIMITED

BALANCE SHEET

as a t 31st May 1986

' ! ldn i [ ~ \i ' ; : ; t . \ ' \ ' ~ ~ " i f ~ ' l ~ J i . J ~ .tiLl;') ~ , ) ': l ' ~ ' - : - '('opy d f ~ IH' i ' iu} l1nr-t"' L>Lp(/r !P.10C,] 1- )r . i l ' m b ( l ~ co f thv Company n't tbf.> fr: ~ m - } \ . J :Gf'nera) r.lcc.-:lting twJ d on 2 ) ~ - ) t ht l ~ ~ G F ' Y ' ! f~ (!J.

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THE

EVERTON F O O T B A l l CLUBCONtPANY LiMITED

STATEMENT OF THE SOURCE AND APPLICATION OF FUNDSfo r the year ended 31 s t May 1988

1 , S 9 L ~ , 3 6 9 453

93,787 6

1,688,156 517

147.325 17746,565 2

249,060 46

2,131,10G 764

692,833 697,86191,275 82,236

44,750 18,407828,858 798

1,302,248 (33

(20,.257) (5,523)(361,323) (190,777)(478,436) 467,241

(860,016) 27----442,232 t237,

Source of Fund3Funds generated from or srattcns:Profit on ordinary

activities before taxetlonAdjustment for items no t using funds -

Depreciation

Funds from other sources:Donations receivableSale of fixed assetsGrants from The Football Grounds

Improvements Trust

Total funds f rom all sources

Application of FundsPurchase of f : X t ~ dassetsR.;payment of loans

Taxation paid

Movement in Worldng Capi talDecrease/Ilncrease) in stocksDecrease/Ilrrcreasel in debtorsIncrease/klecrease) in craditcrs

Increase In net l iqu id funda

1988

1987

Comprising lncreases/tdecraasus) i n : -Bank balancer,Cash In hand

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THE

EVERTON F OO TB AL L C LU BCOMPANY LIMITE.D

NOTES TO T HE A CC OU NT S

for the year ended 31st ~ \ I I a y19881. Accounting Basis an d Policios

These accounts have been prepared on the histcrical cost basis of accounting as modified to includvaluations of the Club's properties, and in accordance with accountlng policies consistent with thadopted previously, and set out in the following notes where approprlate.

2. Tangible Fixed Assets Plant andProperties e 4 ~ i p m e n t Vehicles T

- - ' - -

L c Cost or ValuationAt 1st June 1987 4,225,718 365,736 107,658 4,699,1Additions 434,020 154,724 104,089 692,Grants (249,060) (24B,Disposals (4,OOO} t61,a I 16) ( 6 ~

At 31st May 1988 4,410/678 516,460 149,931 5,07i' ,0

Cost 380,678 516,460 149,931 1,04 iValuatlon in April 1987 4,030,000 4,030,0- - - - _ _ --, ':1 __

4,410,678 516;460 149,931 5,017,0

Deprec:iationAt 15t June 1987 265,163 32,991 29 8Provided during ',t..:'ar 63,267 30,520 93 ,7On disposals (3,730) (15,521 ) (19,

At 31st Mav 1988 324,700 47,990 372,

Net b oo k v al ueI'.t 31 st May 198S 4,410,678 1 9 ' / 760 101,94 , 4 , 7 0- - -At 31st May 1987 4,225,718 100,573 74,667 4,400,9- - - - - - - -rh o Club's orooertles are freehold, with the exception of certain minor residential properties which along leasehold.

10

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31,2,

33,4

1,418,8122,

1,296,47

1988

1,603,788'12'),436

1A78,352

HJ88c

881,833 474,159 /225 109,3

148,902 145,

1 /089,960 728,6

1988 1

530,915 761,75,790 206',344,185 104,6

363,614 420,2- - - - -

1,014,504 1,492,941,336 21,84,300 84,

3,900 3,- - - - - -1,144,100 1,602,83

1988 1

84,360 84,

138,168 227,

138,168 227,

222,528 311,8- - - -

Cos.AggregatFJ depi eclatlon

Net book Value

Refreshments and souvenirsMaintenance stocks

I

If th e freer-ord properties h:.:.j not be en revalued regularly since 1983 they would h av e b ee n inclat the foho"""ing amounts C c'l the basis previously appertainlng:--

Corporation taxBank loan (see note 61l ' " . (, .m brewery (see note 7)

Agg' agate amounts

TIle bank Ican is repayable, togC:lther with interest , in equal monthly Instalments of 7,030 1 and Is secuby a fixed ,,"hc1rge on the Club 's freohold properties at Goodtson Park and Bellefield. '

4. DebtorsTrsde debtorsOther debtorsPrepayments anrl accrued income

5. Crudl tors: amounts falling du o within on e yearTrade creditorsSocial security and other taxesOther creditorsAccruals and deferred income

It is tho Club's policy to maintain the value and extend the life of its properties by regular expenditucharged to revenue, and to revalue the properties every four years and adjust the book values accordingly.Having regard to this, depreciation is not provided on freehold properties asthe directors are of the opinion,in the case of some properties, that their estimated residual VAlue exceeds their book value, and icase of other properties, that the sum involved would be immaterial. Depreciation on other fixed assethas been calculated at 25% on the book value.

3. S tocksStocks are valued at the lower of cost and net realisable value and comprise the following:-

1988c

50,4543,268

53,722

6 . Banl( loan(a) Falling due within one year:

(b) Falling due after more than one year:Repayable within five yearsRepayable after five years

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Two loans are included above, one being repayable in half-yearly instalments of ~ 5 0until 1992bearing interest at 5% per annum, and the other being repayable in half-vearlv lnstalments of 1,5until 1996 and bearing Interest at 6% per annum.

1988 18. C 8 1 ~ e dUp Share Capital c

Authorised: 2,500 1 stock units 2,Rf)O 2,5-- ' - ---

Alloted, issued and fully paid: 2,500 :1 stock units 2,500 2,5

1988 19. Reserves c

Revaluation reserveBalance at 1st June 1987 2,916,341 2,120,88Adjustment on revaluation of properties 795,4

Balance at 31st May 1 98 8 2,916,341 2,916,34

Transfer fees reserveBalance at 15t June 1987 750,000 330,0Transferred to profit and loss account (330,0Transferred from profit and loss account in respect

of future expenditure authorised by th e directors 1,500,000 750,0

Balance at 31 st May 1 "'88 2,250,000 750,00

Profi t and Loss AccountBalance at 15t June 1987 738,555 567,0Prof it for the year 177,243 171,5

Balance at 31 st May 1988 915,798 738,5

1198844

3032

106

H ? J ~ ~ B 1

f3,900 3 5 9

, ~

15,600 1 f 8,100 10,,

23,700 25,6- - ~ - -

:27,600 29,5-----

Playing, training and management

Maintenance and administrationCatering and sales

Aggregate amounts

12

10 . Particulars of EmployeesThe average weekly number of employees dUring the year was as follows:-

7. loans from Brewory(0) Falling due within one vear

(b) Falling due af ter more than 0118 year:Repayable within five yearsRepavable after five years

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The number of employees whom?' emoluments exceeded 30,000 inthe year, excludrng pension contnnuucwas as follows"- 1988 1

Between 30,00'; and 35,000 335,001 and 40,000 240,001 and 45,000 245,001 and 50,000 150,001 and 55,000 455,001 and 60,000 260,001 and 65,000 265,001 and 70,000 270,001 and 75,000 185,001 and 90,00090,001 and 95,000

115,001 and 120,000

1

1

21,11,

36,43,

23,0

40,0

458,4

'

7" (\){)"172JSf5J4"

Nil

1988

19

1988e

6,6111,556

8,167

62,8831.568

64,451

1988:

1.lS1.40 11 6 ~ ~ , D 9 0

207,9F9

VVLlfles(md sularmsSor\lll secuntv costsOther pension costa

The angrGHutn payroll costs of the aeove perconc were as follow,'"

12. TaxationThe charge for taxation consists of the following:-Corporation ta x on the taxable profi ts of th e ve t r calculated at 35 %Adjustments re earlier years

The directors received no emoluments from the company during th e year.11. Interest Payable

On bank loans and overdraftsOn other loans

In view of the continuing use of the freehold properties no provision is considered necessary in respect of thepotential tax liabili ty which might arise in the event of th e disposal of the properties at th e amounts at whthey are inc luded in these accounts/ and in the opinion of th e directors it is impracticable and of no uspurpose to attempt to quantify it.

'13. Donations RoceivedDonations receivable comprise amounts receivable from the various Everton development associations, reduby expenses relating thereto.

14. Future Capital ExpenditureCapital expenditure contracted for but notprovided for in these accounts amounted toFurther capital expenditure authorised by thedirectors on which orders had no t been placedprior to the Balance Sheet date amounted to Nil

REPORT OF THE AUDITORS TO (HE MEMBERS OF THE EVeRTON FOOTBALL CLUB COMPANY LIMITEDWe have audited tho accounts Flfl t ou t on pllgos 7 to 13 in accordance with oppro','Qrl Dudltlng standards.

Tho aecountn have boon proporod undor tho hlstodl.:al cost convontlon ElB rnodlfred by th 1 revaluatlcn of corlaiJ'l properties and onbasis of the accounting POUCIOD oot ou t In tho notes on pagos 10 to 13 . The accountlnq policy of the company in respect of deprecia0'prr,portlo9 docc no t comply wlth tho Stotamont of Standard Accounting Practlr.o No. 121ssuod by the profasslonal accountancy bodiesIn our opinion, tho accountn glvo, on tho above basis, D truo and Ialr vi ow of tho st ate of the cornparw's affairs at the 3 1 st M ayand of tts profit and courco and appllcatlon of funds for tho yoar onded on that date , and comply With the Companlos A ct 1 98ROGERS, BOWLER & CO., cnortorod Accountants, Birkenheed. 18th Ju ly ;

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MINUTES OFTHE 1Oath ANNUAL GENERAL MEETINGOF THE EVERTON FOOTBALL CLUB CO. LTD., HELD A r GOODISON PARK, LIVERPOOL

ON THURSDAY, 13th AUGUST, 1987 AT 7.00 p.rn.

THt:

EVERTON F O tJ T BA L L C L U B

COMPANY LIMITED

APPOINTMENT OFAU DITORSMr. A. W. Waterworth proposed that Messrs. Ro

Bowler & Co" should be re-appointad as Auditors fensuing year and their remunemtion be left tDirectors to decide. Mr. G. W. D. 8 eattle secondedthe proposal wa s carried unanimously.ELECTION OF DIRECTORS

Mr.Carter reported that Messrs. G. A. Watts andWaterworth were the retiring Directors. After 20service as a Director and a former Chairman, Mr . Whad decided to ret ire and no t stand fo r re-electionWaterworth was eligible and wa s offering himselffoelection. Nominations had been recelved in respeMessrs. G. H. E. Birch, P. L. Parry and D. H. PitchMessrs. Birch and Parry had withdtrawn their nominaleaving Mr. Pitcher as the only candidate.

Mr. Carter proposed that Mr. Waterworth shoure-elected as a Director fo r a further 3 yearRev. R. M. Grace seconded and the proposal wa s cunanimously.

Mr. Waterworth thanked the meeting for their suand also expressed his appreciation of th e valservice to th e Club of Mr. Watts over th e past 20 y

Mr.Carter also expressed the Board's appreciatiMr. Watts' valuable contribution to th e successeEverton F.C. and proposed that Mr. D. H. Pitcher shbe elected as a Oirector of the Club fo r a 3 year term.wa s seconded by Miss L. Brown an d caunanimously. Mr. Watts expressed his thanksShareholders and Directors for their support ovyears.VOTE OF THANKS

The meeting closed with a vote of thanks tDirectors, Management and Staff, proposedMr . P. L. Parry and seconded by Mr. F. Peacock.

- - - - - - - - - _ . _ - - - - ~ . _ , ~ ~ - ~ - ~ - - . , . ~ - - - - - - -

CHAIRMAN'S REPORT

It was agreed that the Chairman's Report should betaken as read. Mr . Carter referred to the further successin winningthe Charity Shield on 1st August and reportedon record Season Ticket sales fo r th e 1987/88 season.

Present: Messrs, P, D. Carter (in the Chair), T. H. W. Scott, G. A. Watts, A. W. WaterwcJrth, K. M. TamlJ, Search and D. A. B."Newton (Directors). J. Greenwood /Secretary), J . C. Harvey (Manager)

and Mr. P. B. Bowler (representing Rogers, Bowler & Co.) together with '152 shareholders.Apvlogies fo r absence were recorded from Mr . D. Wheway Davies, Mr. & Mrs. E. I\iladdoc!{s,

Mrs. J. Bailey, Mr . D. H. Pitcher and Sir John Moores, CBE

14

MINUTESIt wa s agreed that th e Minutes of the 107th Annual

General Meeting, as circulated, should betaken asread.i,,'r. K. M.Tamlin proposed that the Minutes be approvedAnd signed as a correct record. Mrs. E. Jones secondedl:Jnd the propos 11 wa s carried unanimously.

ADMISSION OF THE PRESSIt wa s agreed that members of th e press should be

permitted to remain in attendance throughout th emeeting.

NOTICE CONVENING THE MEETINGIt wa s agreed that the Notice convening the Meeting

should be taken as read.

~ " " - _ . ~ - - ' - - ' ~ - - - - - - -

DIVIDEND

Mr. T. H. W. Scott proposed that no dividend should bepaid. Mr. J. Tushlnahem seconded and the proposal wa scarried.

DIRECTORS' REPORT AND ACCOUNTSIt was agreed that the Directors' and Auditors' Report,

as circulated, should betaken as read. As there were noshareholders quostlons Mr . G. A. Watts formallyproposed the adoption of the naport and Accounts. Mr.R. E.D. Edwards seconded and the proposal was carriedunanimously.