Manchester United: 2013 Fourth Quarter and Full Year Results

  Manchester United: 2013 Fourth Quarter and Full Year Results

  *RECORD ANNUAL REVENUE UP 13.4% TO £363.2M
  *SPONSORSHIP REVENUE FOR THE YEAR INCREASED 44.1%
  *ADJUSTED EBITDA FOR FISCAL 2013 UP 18.6% TO £108.6M
  *ADJUSTED EBITDA OUTLOOK FOR FISCAL 2014 UP 18% TO 22%

Business Wire

MANCHESTER, England -- September 18, 2013

Manchester United (NYSE: MANU; “the Company”, “the parent” and “the Group”) –
one of the most popular and successful sports teams in the world - today
announced financial results for the quarter and year ended 30 June 2013.

Annual Highlights

  *FAPL Champions in 2012/13: a record 20 English League titles.
  *Adjusted net income for fiscal 2013 increased 282.2% to £17.2m and
    adjusted earnings per share was up 266.7% to £0.11.
  *Commercial revenues grew 29.7% for the year 2013 to a record £152.5m -
    42.0% of total revenue. During the fiscal year, we announced:

       *7 global sponsorship partnerships including a world record shirt deal
         with Chevrolet
       *4 regional sponsorship partnerships, and
       *9 financial services and telecom agreements.

  *Opened our first regional sales office in Hong Kong in August 2012 which
    has made an excellent contribution, concluding multiple deals.
  *Acquired the remaining one-third stake in MUTV – securing full control of
    all our content generation and distribution capabilities.
  *Reached 34 million Facebook followers and 32 million unique records on our
    CRM database compared to 26 million and 15 million respectively a year
    ago.
  *Refinanced all our outstanding £177.8m GBP bonds and $22.1m of the US
    dollar bonds with a new term loan, resulting in interest saving of around
    £10m per year.

Commentary

Ed Woodward, Executive Vice Chairman commented, “We are very proud of our
results for fiscal 2013. It has been a little over a year since our IPO and in
that time we have delivered on our targets and objectives. Our commercial
business continues to be a very powerful engine of growth enabling the team to
continue to be successful. We won our 20^th English League title last season
and are delighted to have David Moyes lead our football team into a new and
exciting chapter. We look forward to a successful 2013/14, both on and off the
pitch.”

Outlook

For fiscal 2014, Manchester United expects:

  *Revenue to be £420m to £430m.
  *Adjusted EBITDA to be £128m to £133m.

This assumes the team finishes third in the FA Premier League and reaches the
quarter-finals of the UEFA Champions League and the domestic cups.

Key Financials (unaudited)

£ million (except   Twelve months                Three months ended
adjusted earnings  ended                                         
per share)                                       30 June
                    30 June
                   2013     2012     Change    2013      2012      Change
Commercial          152.5     117.6    29.7%     37.9       28.1      34.9%
revenue
Broadcasting        101.6     104.0    (2.3)%    26.6       27.5      (3.3)%
revenue
Matchday revenue    109.1     98.7     10.5%     20.6       18.9      9.0%
Total revenue       363.2     320.3    13.4%     85.1       74.5      14.2%
Adjusted EBITDA*    108.6     91.6     18.6%     17.0       7.0       142.9%

Profit/(loss) for
the period (i.e.    146.4     23.3     528.3%    106.1      (14.9)    -
Net Income)
Adjusted
profit/(loss) for
the period (i.e.    17.2      4.5      282.2 %   (2.7)      (10.6)    (74.5)%
Adjusted Net
Income)*
Adjusted basic
and diluted         0.11      0.03     266.7%    (0.02)     (0.07)    (71.4)%
earnings/(loss)
per share*

Gross debt          389.2     436.9    (10.9)%   389.2      436.9     (10.9)%
Cash and cash       94.4      70.6     33.7%     94.4       70.6      33.7%
equivalents

* Adjusted EBITDA, adjusted profit/(loss) for the period and adjusted basic
and diluted earnings/(loss) per share are non-IFRS measures. See Non-IFRS
Measures: Definitions and Use below 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.

Revenue Analysis

Commercial

Commercial revenue for the year increased 29.7% to £152.5 million driven by
several new sponsorship partners, an increase in profit share from Nike, new
mobile and financial services agreements, and higher renewals from existing
partners.

For the year:

  *Sponsorship revenue was up 44.1% to £90.9 million;
  *Retail, Merchandising, Apparel & Product Licensing was 14.2% higher to
    £38.6 million; and
  *New Media & Mobile increased 11.1% to £23.0 million.

For the fourth quarter, Commercial revenue increased 34.9% to £37.9 million
with:

  *Sponsorship revenue up 49.0% to £21.3 million;
  *Retail, Merchandising, Apparel & Product Licensing 22.1% higher to £10.5
    million; and
  *New Media & Mobile increasing 17.3% to £6.1 million.

Broadcasting

Broadcasting revenues for the year decreased 2.3% to £101.6 million primarily
as a result of the market pool element of our UEFA Champions League
distributions for fiscal 2013 being based on a 25% share for finishing as
runners-up in the Premier League in the preceding season compared to a 40%
share in fiscal 2012 for finishing the preceding Premier League season as
Champions.

For the fourth quarter, revenues decreased 3.3% year on year to £26.6 million
for the same reason but were offset slightly by higher merit revenue from the
English Premier League as a result of finishing in first place in 2013
compared to runners up in 2012.

Matchday

Matchday revenues for the year increased 10.5% to £109.1 million, as we hosted
a number of matches during the 2012 Olympic Games and had five home domestic
cup fixtures in fiscal 2013 compared to one in fiscal 2012.

For the fourth quarter, revenues increased 9.0% year on year to £20.6 million,
due primarily to particularly strong matchday hospitality.

Other Financial Information – Full Year

Operating expenses

Total operating expenses for the year increased 8.8% to £310.3 million.

Staff costs

Staff costs for the year were up 11.6% to £180.5 million, primarily due to
increased headcount to facilitate the continued expansion of our commercial
business (at 30 June 2013, we employed 793 people versus 713 a year earlier),
new player signings and higher wages and bonuses for existing players.

Other operating expenses

Other operating expenses for the year were up 10.6% to £74.1 million,
primarily due to an increase in domestic cup gateshare expenses, catering,
police and security costs associated with the home domestic cup games played
in the year; together with the costs of hosting the matches at the 2012
Olympic Games.

Depreciation and amortisation of players’ registrations

Depreciation for the year increased 4.0% to £7.8 million and amortisation of
players’ registrations for the year was 8.9% higher at £41.7 million. The
unamortised balance of players’ registrations as of 30 June 2013 was £119.9
million.

Exceptional items

Exceptional items for the year were £6.2 million, which related to
professional advisory costs in connection with the IPO and compensation
payments to former coaching staff for loss of office following the appointment
of the new manager and coaching team, compared with £10.7 million in the prior
year, which related to professional advisory costs in connection with the IPO
and increase in the provision for the Football League pension scheme. For the
fourth quarter they were £2.3 million compared with £4.4 million in the prior
year quarter.

Profit on disposal of players’ registrations

Profit on the disposal of players’ registrations for the year was £9.1 million
compared with £9.7 million in the prior year. For the fourth quarter it was
£1.1 million compared with £1.8 million in the prior year quarter.

Net finance costs

Net finance costs for the year increased £21.3 million to £70.8million
primarily due to the £22.0 million premium paid on the redemptions of senior
secured notes (£16.7 million related to the refinancing in June 2013 and the
£5.3 million balance due to the retirement of notes following the IPO in
September 2012) compared to £2.2 million in the prior year. Accelerated
amortisation of issue discount and debt finance costs were £11.8 million
compared to £2.3 million in the prior year. This increase is offset by reduced
interest payable on senior secured notes of £4.3 million, a £1.7 million
favourable FX swing on the translation of the Group’s US dollar denominated
senior secured notes, a £1.0 million FX gain on the translation of the Group’s
new US dollar denominated loan and a £0.5 million increase in interest
receivable.

Tax

The group recorded a non-cash tax credit for the year of £155.2 million,
largely comprising the recognition of US deferred tax assets.

As a result of the reorganisation transactions related to the IPO, the Company
inherited the £96.1 million carried forward US tax bases of Red Football LP,
which the Company will benefit from by way of future US tax deductions.

Furthermore, the reorganisation resulted in additional US tax bases or
‘step-up’ that is currently expected to result in the availability of further
US tax deductions. The resulting increase in tax bases is currently estimated
to be approximately $350 million (£225 million) gross, although not all of
this is expected to result in increased tax deductions. At the time of
preparing these financial statements, the deductible element of the ‘step-up’
had not yet been finalized and consequently the £31.9 million recognised as a
deferred tax asset with respect to the 'step-up' reflects management’s current
best estimate. The Company expects to finalise the position by the end of the
fiscal 2014.

In addition, the Company is expected to utilise future UK taxes paid as
foreign tax credits in the US; and as such can ‘mirror’ the existing UK net
deferred tax liability as a deferred tax asset in the US. As the UK deferred
tax liability unwinds, there will be UK taxable income which will result in a
US foreign tax credit. The benefit of the additional expected foreign tax
credits results in a deferred tax asset of £25.3m.

The total amount of the US deferred tax assets recognised by the Company in
relation to the reorganisation (i.e. £153.3 million), a portion of which has
been utilised during the year, reflects management’s current expectation that
there will be sufficient taxable profits in the future to utilise the future
US tax deductions.

Cash flows

Cash generated from operating activities for the year was £57.2 million, an
increase of £26.3 million compared to £30.9 million in the prior year.

Capital expenditure on property, plant and equipment and investment property
for the year was £12.5 million, a decrease of £10.2 million compared to £22.7
million in the prior year.

Net player capital expenditure for the year was £36.4 million, a decrease of
£13.1 million compared to £49.5 million in the prior year.

Net cash generated from financing activities for the year was £16.1 million,
an increase of £54.9 million compared to £38.8 million net cash used in
financing activities in the prior year. During the year the Group raised £70.3
million ($110.2 million) through the initial public offering of shares on the
New York Stock Exchange. The net proceeds from the offering were used to
repurchase a portion of the Group’s US dollar denominated senior secured notes
with a value of £62.6 million ($101.7 million) and a premium of £5.3 million
($8.5 million).

In June 2013 the Group refinanced a portion of its borrowing with a new $315.7
million (£209.2 million) secured term loan, repurchasing all £177.8 million of
the sterling denominated senior secured notes and $22.1 million (£14.0
million) of the US dollar denominated senior secured notes, paying a premium
of £16.7 million.

During the year the Group also acquired the remaining 33.3% of the issued
share capital of MUTV Limited for a purchase consideration (including
transaction costs) of £2.7 million. The Group also repaid the loan stock, of
£4.4 million plus accrued interest of £2.9 million, issued to the former
minority shareholder, and now holds 100% of the issued share capital of MUTV
Limited.

Conference Call Information

The Company’s conference call to review the fourth quarter and fiscal 2013
results will be broadcast live over the internet today, 18 September 2013 at
08:00 am 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 135 year heritage we have won 62 trophies, enabling us to develop
the world’s leading sports brand and a global community of 659million
followers. Our large, passionate community provides Manchester United with a
worldwide platform to generate significant revenue from multiple sources,
including sponsorship, merchandising, product licensing, new media& mobile,
broadcasting and matchday.

Cautionary Statement

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
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/(loss) for the period before
depreciation, amortisation of, and profit on disposal of, players’
registrations, exceptional items, net finance costs, and tax credit.

We believe 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 amortisation), capital structure (primarily finance 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/(loss) for the
period to adjusted EBITDA is presented in supplemental note 2.

2. Adjusted profit/(loss) for the period (i.e. Adjusted Net Income)

Adjusted profit/(loss) for the period is the adjusted profit/(loss) for the
period attributable to owners of the parent, calculated by adding the profit
for the period attributable to non-controlling interest to the profit/(loss)
for the period attributable to owners of the parent, adding/(subtracting)
material charges/(credits) related to the IPO and the repurchase of senior
secured notes, subtracting the actual tax credit for the period,
(subtracting)/adding the adjusted tax (expense)/credit for the period (based
on an normalised tax rate of 35%; 2012: 35%) and subtracting the profit for
the period attributable to non-controlling interest. The normalised tax rate
of 35% is management’s estimate of the tax rate likely to be applicable to the
Group in the long-term.

We believe that 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 material
charges/(credits) related to ‘one-off’ transactions such as the IPO (including
the associated recognition of deferred tax assets or liabilities) and
repurchase of senior secured notes; and then to apply a ‘normalised’ tax rate
(for both the current and prior periods) of the US statutory rate of 35%. A
reconciliation of profit/(loss) for the period attributable to owners of the
parent to adjusted profit/(loss) for the period attributable to owners of the
parent is presented in supplemental note 3.

3. Adjusted basic and diluted earnings/(loss) per share

Adjusted basic and diluted earnings/(loss) per share is calculated by dividing
the adjusted profit/(loss) for the period attributable to owners of the parent
by the weighted average number of ordinary shares in issue during the period,
as adjusted for the reorganisation transactions described in supplemental note
1.1 and presented in supplemental note 3.

Key Performance Indicators

                                  Twelve months ended   Three months ended
                                                    
                                  30 June               30 June
                                 2013       2012      2013       2012
Commercial % of total revenue     42.0%       36.7%     44.5%       37.7%
Broadcasting % of total revenue   28.0%       32.5%     31.3%       36.9%
Matchday % of total revenue       30.0%       30.8%     24.2%       25.4%
Home Matches Played                                              
FAPL                              19          19        4           4
UEFA competitions                 4           5         -           -
Domestic Cups                     5           1         -           -
Away Matches Played                                              
UEFA competitions                 4           5         -           -
Domestic Cups                     3           4         1           -

Other                                                            
Employees at period end           793         713       793         713
Staff costs % of revenue          49.7%       50.5%     60.1%       66.2%

Phasing of Premier     Quarter 1  Quarter 2  Quarter 3  Quarter 4  Total
League home games
2013/14 season*         3           6           7           3           19
2012/13 season          3           7           5           4           19
2011/12 season          3           7           5           4           19

*Subject to changes in broadcasting scheduling

CONSOLIDATED INCOME STATEMENT

(unaudited, in £ thousands, except per share and shares outstanding data)
                                                    
                               Twelve months ended     Three months ended

                               30 June                 30 June
                              2013       2012        2013      2012
Revenue                        363,189     320,320     85,096     74,492
Operating expenses             (310,337)   (285,139)   (83,288)   (82,138)
Profit on disposal of          9,162       9,691       1,137      1,795
players’ registrations
Operating profit/(loss)        62,014      44,872      2,945      (5,851)
Finance costs                  (72,082)    (50,315)    (31,722)   (14,591)
Finance income                 1,275       779         834        103
Net finance costs              (70,807)    (49,536)    (30,888)   (14,488)
Loss before tax                (8,793)     (4,664)     (27,943)   (20,339)
Tax credit                     155,212     27,977      134,042    5,434
Profit/(loss) for the period   146,419     23,313      106,099    (14,905)
Attributable to:
                               146,250     22,986      106,099    (14,998)
Owners of the parent
Non-controlling interest       169         327         -          93
                              146,419     23,313      106,099    (14,905)
                                                                             
Earnings per share
attributable to owners of
the parent:
Basic and diluted earnings     0.90        0.15^(1)    0.65       (0.10)^(1)
per share (pounds sterling)
Weighted average shares        162,895     155,352     163,826    155,352
outstanding (thousands)
                                                                             

CONSOLIDATED BALANCE SHEET

(unaudited, in £ thousands)
                                     30 June     30 June
                                            
                                     2013        2012^(1)
ASSETS                           
Non-current assets
Property, plant and equipment        252,808     247,866
Investment property                  14,080      14,197
Goodwill                             421,453     421,453
Players’ registrations               119,947     112,399
Trade and other receivables          1,583       3,000
Deferred tax asset                  145,128     -
                                   954,999     798,915
Current assets
Derivative financial instruments     260         967
Trade and other receivables          68,619      74,163
Current tax receivable               -           2,500
Cash and cash equivalents           94,433      70,603
                                   163,312     148,233
Total assets                        1,118,311   947,148
                                                 

CONSOLIDATED BALANCE SHEET (continued)

(unaudited, in £ thousands)
                                                  30 June     30 June
                                                        
                                                  2013        2012^(1)
EQUITY AND LIABILITIES
Equity
Share capital                                     52          50
Share premium                                     68,822      25
Merger reserve                                    249,030     249,030
Hedging reserve                                   231         666
Retained earnings/(deficit)                       129,825     (12,671)
Equity attributable to owners of the parent       447,960     237,100
Non-controlling interest                          -           (2,003)
                                                 447,960     235,097
Non-current liabilities
Derivative financial instruments                  1,337       1,685
Trade and other payables                          18,413      22,305
Borrowings                                        377,474     421,247
Deferred revenue                                  17,082      9,375
Provisions                                        988         1,378
Deferred tax liabilities                          17,168      26,678
                                                 432,462     482,668
Current liabilities
Derivative financial instruments                  29          -
Current tax liabilities                           900         1,128
Trade and other payables                          78,451      83,664
Borrowings                                        11,759      15,628
Deferred revenue                                  146,278     128,535
Provisions                                        472         428
                                                 237,889     229,383
Total equity and liabilities                      1,118,311   947,148

^(1) As adjusted retrospectively to reflect the reorganisation transactions
described in supplemental note 1.1.

CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in £ thousands)
                                 Twelve months ended    Three months ended
                                                     
                                 30 June                30 June
                                2013       2012       2013       2012
Cash flows from operating
activities
Cash generated from operations   129,930     80,302     73,005      66,523
(see supplemental note 4)
Interest paid                    (73,629)    (47,068)   (26,732)    (3,515)
Debt finance costs relating to   (3,074)     -          (3,074)     -
borrowings
Interest received                937         1,010      495         187
Income tax refund/(paid)         3,057       (3,333)    2,457       (59)
Net cash generated from          57,221      30,911     46,151      63,136
operating activities
Cash flows from investing
activities
Purchases of property, plant     (12,503)    (15,323)   (1,856)     (5,685)
and equipment
Purchases of investment          (2)         (7,364)    -           -
property
Proceeds from the sale of        9           -          9           -
property, plant and equipment
Purchases of players’            (45,997)    (58,971)   (4,730)     (5,818)
registrations
Proceeds from sale of players’   9,646       9,409      1,677       3,285
registrations
Net cash used in investing       (48,847)    (72,249)   (4,900)     (8,218)
activities
Cash flows from financing
activities
Proceeds from issue of shares    70,258      -          -           -
(see supplemental note 1.2)
Expenses directly attributable
to issue of shares (see          (1,459)     -          -           -
supplemental note 1.2)
Acquisition of additional
interest in subsidiary (see      (2,664)     -          -           -
supplemental note 5)
Proceeds from borrowings         209,190     -          209,190     -
Repayment of other borrowings    (259,254)   (28,774)   (191,924)   (311)
Dividends paid                   -           (10,000)   -           (10,000)
Net cash generated from/(used    16,071      (38,774)   17,266      (10,311)
in) financing activities
Net increase/(decrease) in       24,445      (80,112)   58,517      44,607
cash and cash equivalents
Cash and cash equivalents at     70,603      150,645    36,211      25,576
beginning of period
Exchange (losses)/gains on       (615)       70         (295)       420
cash and cash equivalents
Cash and cash equivalents at     94,433      70,603     94,433      70,603
end of period
                                                                             

                              SUPPLEMENTAL NOTES

1 General information

Manchester United plc (“the Company”) and its subsidiaries (together “the
Group”) is a professional football club together with related and ancillary
activities. The Company is incorporated under the Companies Law (2011
Revision) of the Cayman Islands, as amended and restated from time to time.
The Company became the parent of the Group as a result of reorganisation
transactions which were completed immediately prior to the completion of the
public offering of Manchester United plc shares on the New York Stock Exchange
(“NYSE”) in August 2012 as described more fully below.

1.1 The reorganisation transactions

The Group had historically conducted business through Red Football Shareholder
Limited, a private limited company incorporated in England and Wales, and its
subsidiaries. Prior to the reorganisation transactions, Red Football
Shareholder Limited was a direct, wholly owned subsidiary of Red Football LLC,
a Delaware limited liability company. On 30 April 2012, Red Football LLC
formed a wholly-owned subsidiary, Manchester United Ltd., an exempted company
with limited liability incorporated under the Companies Law (2011 Revision) of
the Cayman Islands, as amended and restated from time to time. On 8 August
2012, Manchester United Ltd. changed its legal name to Manchester United plc.

On 9 August 2012, Red Football LLC contributed all of the equity interest of
Red Football Shareholder Limited to Manchester United plc. As a result of
these reorganisation transactions, Red Football Shareholder Limited became an
indirect, wholly-owned subsidiary of Manchester United plc.

The new parent, Manchester United plc. had 155,352,366 shares in issue
immediately after the reorganisation transactions and before the issue of new
shares pursuant to the public offering. The reorganisation transactions have
been treated as a capital reorganisation arising at the reorganisation date (9
August 2012). In accordance with International Financial Reporting Standards,
historic earnings per share calculations and the balance sheet as at 30 June
2012 reflect the capital structure of the new parent rather than that of the
former parent, Red Football Shareholder Limited.

1.2 Initial public offering (“IPO”)

On 10 August 2012, the Company issued a further 8,333,334 ordinary shares at
an issue price of $14 per share and listed such shares on the NYSE. Net of
underwriting costs and discounts, proceeds of $110,250,000 (£70,258,000) were
received. Expenses of £1,459,000 directly attributable to this issue of new
shares have been offset against share premium.

2 Reconciliation of profit/(loss) for the period to adjusted EBITDA

                                 Twelve months ended    Three months ended
                                                     
                                 30 June                30 June
                                 2013        2012       2013        2012
                                                                
                                 £’000       £’000      £’000       £’000
Profit/(loss) for the period     146,419     23,313     106,099     (14,905)
Adjustments:
Tax credit                       (155,212)   (27,977)   (134,042)   (5,434)
Net finance costs                70,807      49,536     30,888      14,488
Profit on disposal of players’   (9,162)     (9,691)    (1,137)     (1,795)
registrations
Exceptional items                6,217       10,728     2,338       4,365
Amortisation of players’         41,714      38,262     10,842      8,495
registrations
Depreciation                     7,769       7,478      2,026       1,807
Adjusted EBITDA                  108,552     91,649     17,014      7,021
                                                                             

3 Reconciliation of profit/(loss) for the period attributable to owners of the
parent to adjusted profit/(loss) for the period and adjusted basic and diluted
earnings/(loss) per share

                                 Twelve months ended    Three months ended
                                                    
                                 30 June                30 June
                                2013       2012       2013       2012
Profit/(loss) for the period
attributable to owners of the    146,250     22,986     106,099     (14,998)
parent
Add: profit for the period
attributable to                  169         327        -           93
non-controlling interest
Profit/(loss) for the period     146,419     23,313     106,099     (14,905)
Professional advisors fees
relating to the issue of         3,816       8,936      (63)        4,172
shares
Accelerated amortisation of
issue discount and debt
finance costs associated with    9,692       969        7,149       -
the repurchase of senior
secured notes
Premium on repurchase of         21,977      2,180      16,733      ^-
senior secured notes
Tax credit                       (155,212)   (27,977)   (134,042)   (5,434)
Adjusted profit/(loss) before    26,692      7,421      (4,124)     (16,167)
tax
Adjusted tax (expense)/credit
(using a normalised US           (9,342)     (2,597)    1,443       5,658
statutory rate of 35%)
                                 17,350      4,824      (2,681)     (10,509)
Subtract: profit for the
period attributable to           (169)       (327)      -           (93)
non-controlling interest
Adjusted profit/(loss) for the
period (i.e. Adjusted Net        17,181      4,497      (2,681)     (10,602)
Income)
                                                                             
Weighted average shares          162,895     155,352    163,826     155,352
outstanding (thousands)
Adjusted profit/(loss) for the   17,181      4,497      (2,681)     (10,602)
period
Adjusted basic and diluted       0.11        0.03       (0.02)      (0.07)
earnings/(loss) per share

4 Cash generated from operations

                                 Twelve months ended    Three months ended
                                                     
                                 30 June                30 June
                                 2013        2012       2013        2012
                                                                
                                 £’000       £’000      £’000       £’000
Profit/(loss) for the period     146,419     23,313     106,099     (14,905)
Tax credit                       (155,212)   (27,977)   (134,042)   (5,434)
Loss before tax                  (8,793)     (4,664)    (27,943)    (20,339)
Depreciation charges             7,769       7,478      2,026       1,807
Amortisation of players’         41,714      38,262     10,842      8,495
registrations
Profit on disposal of            (7)         -          (7)         -
property, plant and equipment
Profit on disposal of players’   (9,162)     (9,691)    (1,137)     (1,795)
registrations
Net finance costs                70,807      49,536     30,888      14,488
Equity-settled share-based       832         -          198         -
payments
Fair value losses/(gains) on
derivative financial             91          (91)       (124)       174
instruments
Decrease/(increase) in trade     8,728       (9,414)    6,394       (20,537)
and other receivables
Increase in trade and other      18,352      9,625      51,975      84,407
payables and deferred revenue
Decrease in provisions           (401)       (739)      (107)       (177)
Cash generated from operations   129,930     80,302     73,005      66,523
                                                                             

5 Transactions with non-controlling interest

On 2 January 2013, the Group acquired the remaining 33.3% of the issued share
capital of MUTV Limited for a purchase consideration (including transaction
costs) of £2,664,000. The Group now holds 100% of the issued share capital of
MUTV Limited. The carrying amount of the non-controlling interests in MUTV
Limited on the date of acquisition was (£1,834,000). The Group derecognised
non-controlling interests of (£1,834,000) and recorded a decrease in equity
attributable to owners of the parent of £4,498,000. The effect of changes in
the ownership interest of MUTV Limited on the equity attributable to owners of
the parent during the period is summarised as follows:

                                     Twelve months ended   Three months ended
                                                        
                                     30 June               30 June
                                     2013          2012    2013        2012
                                                                 
                                     £’000         £’000   £’000       £’000
Carrying amount of non-controlling   (1,834)       -       -           -
interests acquired
Consideration paid to                (2,664)       -       -           -
non-controlling interests
Amount recognised in equity
attributable to owners of the        (4,498)       -       -           -
parent

Contact:

Manchester United Plc
Samanta Stewart, Investor Relations
+44 207 054 5928
ir@manutd.co.uk
or
Philip Townsend
+44 161 868 8148
philip.townsend@manutd.co.uk
or
Sard Verbinnen & Co
Jim Barron / Michael Henson
+ 1 212 687 8080
 
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