Manchester United
Manchester United More than a football club, a global brand For these fans, there is only one United
Annual Report 2003
Manchester United is one of the leading clubs in world football, with a global brand and following that embodies the passion and excitement of the world’s most popular sport. Our goal is, through innovation, commitment and evolution, to protect and develop the brand by sustaining the playing success on the field and growing the business to enhance the financial strength of the Group.
Contents 1 Highlights 2 Chairman’s statement 6 Operational review 32 Financial review 38 Corporate social responsibility 44 Board of directors 46 Directors’ report Corporate governance 51 Remuneration report 57 Financial statements 79 Statement of directors’ responsibilities 80 Auditors’ report 81 Five year summary 82 Shareholder information 85 Advisers and internal contacts
Highlights
> Turnover up 18 per cent as a result of strong cup runs, increased media revenues and the start of the new Nike partnership. > Staff costs represent 46 per cent of turnover (2002 48 per cent). > Net player trading profits of £12.9 million (2002 £17.4 million). > Tax rate 24.3 per cent (2002 22.6 per cent) due to a provision release following agreement of prior year tax computations. > Special dividend of 1.50 pence (2002 1.00 pence) in addition to total normal dividend of 2.50 pence per share (2002 2.10 pence).
Turnover £m
1999 2000 2001 2002 2003 110.7 116.0 129.6
146.1
173.0
Turnover breakdown
1 3
1 Matchday 2 Media 3 Commercial
41% 32% 27%
2
Group operating profits* £m
1999 2000 2001 2002 2003 32.3 30.1 31.7 34.5# 50.0
2003
2002
Earnings per share (pence)
1999 2000 2001 2002 2003 4.6 5.5 9.6 11.5 5.9
Turnover (£m) Group operating profit* # (£m) Profit before taxation (£m) Earnings per share (pence) Dividend per share (pence)
* Before amortisation of players and exceptional costs # 2002 restated
173.0 50.0 39.3 11.5 4.00
Annual Report 2003
Manchester United is one of the leading clubs in world football, with a global brand and following that embodies the passion and excitement of the world’s most popular sport. Our goal is, through innovation, commitment and evolution, to protect and develop the brand by sustaining the playing success on the field and growing the business to enhance the financial strength of the Group.
Contents 1 Highlights 2 Chairman’s statement 6 Operational review 32 Financial review 38 Corporate social responsibility 44 Board of directors 46 Directors’ report Corporate governance 51 Remuneration report 57 Financial statements 79 Statement of directors’ responsibilities 80 Auditors’ report 81 Five year summary 82 Shareholder information 85 Advisers and internal contacts
Highlights
> Turnover up 18 per cent as a result of strong cup runs, increased media revenues and the start of the new Nike partnership. > Staff costs represent 46 per cent of turnover (2002 48 per cent). > Net player trading profits of £12.9 million (2002 £17.4 million). > Tax rate 24.3 per cent (2002 22.6 per cent) due to a provision release following agreement of prior year tax computations. > Special dividend of 1.50 pence (2002 1.00 pence) in addition to total normal dividend of 2.50 pence per share (2002 2.10 pence).
Turnover £m
1999 2000 2001 2002 2003 110.7 116.0 129.6
146.1
173.0
Turnover breakdown
1 3
1 Matchday 2 Media 3 Commercial
41% 32% 27%
2
Group operating profits* £m
1999 2000 2001 2002 2003 32.3 30.1 31.7 34.5# 50.0
2003
2002
Earnings per share (pence)
1999 2000 2001 2002 2003 4.6 5.5 9.6 11.5 5.9
Turnover (£m) Group operating profit* # (£m) Profit before taxation (£m) Earnings per share (pence) Dividend per share (pence)
* Before amortisation of players and exceptional costs # 2002 restated
173.0 50.0 39.3 11.5 4.00