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TheEv'e'rton

.. Football Club1 Company Limited

539

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Annual ReportandStatement of Accountsat 31 M,-,-.y 1976 ,

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TheEverto,n Football ClubCompany Limited

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I, --Annual ReportandStatement of Accountsat 31 May 1976

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THEiVERTON FOOTBALL CLUBCOMPANY LIMITED

NOTICE OF MEETINGNOTICE IS HEREBY GIVEN that theNinety-seventh Annual General Meeting ofth e Company will be held at the off ices ofThe Everton Football Club Company Limited,Goodlson Park, LIverpool L4 4EL. onThursday the 5th day of Aucust, 1976, at7.00 p.m, to receive and consider the Reportof the Directors, and the Accounts for theperiod ended 31 st May, 1976. to electDlroctors, to fix the remuneration of theAuditors fo r the ensuing year, and totransact any other business which may betransacted at the Ordinary General Meeting

~ the Company.The Transfer Books of the Company willbe closed until 6th August, 1976.By Order 0'1' the Board.J. GREENWOOD, Secretary,Goodlson Park, Liverpool L44EL.5th July. 1976.

,..Admission on Presentation' ~ Annual ReportNotice is also given that a Member of theCompany entit led to attend and vote at theabove Annual General Meeting is entitled:. to appoint a proxy to attend and vote Insteadof him, and that the proxy need not be amember of the Company.Proxies must be lodged at the RegisteredOffice of the Company, noi less than48hours before the lime oiihe Meeting.

DirectorsA. W. Waterworth, J.P., ChairmanJohn Moores, C.B.E., Vice-ChairmanJ. C. SharpG. A. WattsT. H. W. ScottK. M. TamllnP. D. Carter

Secretary and Registered OfficeJ. Greenwood,Goodlson Park. Liverpool L44EL

ManagerW. L. Bingham

BankersMidland Bank Limited

AuditorsRogers, Bowler & Co.

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THEEVERTON FOOTBALL CLU BCOMPANY LIM ITED

CHAIRMAN '8 REPORTI have much pleasure In submitting the

Annual Report andAccounts.After two seasons of eteady progress there

is no doubt that the palt year has been one ofconsiderable dleappolntrnent, We started theseason with the prospect of European football atGoodlson fo r the first time In five )'&8rS and with ateam that seamed capable of achieving success Inthe League. In the event we were put out of theUEFA Cup by a disputed pen81ty awarded toAC Milan and we finished eleventh In the League.

Many reasons have been pu t forward fo r thepoor results and chief among these must be theloss of confidence caused by the nucesslty ofplaying twenty seven different p l a y ~ r s In the firstteam. Unless the same team can play togetherregularly fo r a number of matches acarl neverestablish that self-confidencewhlch so oftenrepresents the difference between winning andlosing. Lack of team confidence breeds loss ofindividual form and this too has been an importantfactor in our disappointing performance this year.

In an effort to improve team performance,Bryan Hamilton, the Northern Ireland international,was signed from Ipswich in November, whilst inJanuary the decis ion was made to appoint SteveBurtenshaw as first team coach in place of Stu" rtImlach. Steve Burtenshaw has had wide experienceas a coach at Arsenal and QPR and as manager ofSheffield Wednesday and the Board are sure thathis appointment 'IIi11 be of benefit to the club.

Shortly afte" the transfer 'deadllns' Andy King.the prornlstnp uung mid-f ie ld player, was signedfrom Luton. . d was able to take part in the lastthree League matches of the season and showed

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.kllls which suggest that he has a good future atGoodlson. Martin MurraYJ the young Home Farmplayer who has attracted enthusiastic Pre comment, Joined the playing staff In February andthough only ventsen we think that he will havean exciting and successful future with Everton.

The Reserve team, constantly depleted bythe need to provlds players fo r the first team,flnlahed eighth In the Central League whilst theA and B teams both finished third In theirrespective Leagues. The Youth Team reached theflnals of the Lancashire Youth Cup before bQlngbeaten by Manchester United and also enjoyed aaucceseful tour In Switzerland during the Easterperiod. tt

At the end of the season Ray Henderson waaappointed manager of Southport Fe and Er:cHarrison, who has been with us fo r the past threeyears working closely with RayMlnshull in thedevelopment cf yuJnq players, was promoted tothe posltlo-t of Reserve teem coacn. Colln Harvey,havir.0 il ~ "atlred as a player, has rejoined Evertonand takes over as Youth team coach. We haveevery ccnfldence that his enthusiasm fo r the gameand fo r the club will be of great benefit to ouryoung players.

David Clements, Peter Scott, Tom Sharp andSid Wallace were transferred to other clubs duringthe season. whilst in May we released eightplayers including John Hurst who has given suchdistinguished and loyal service to the club. Wewish him well at Oldham Athletic where he will bejoined by David Irving. another of the playersreleased at the end of the season.

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Representative Honoura WE-iG gained duril1gthe year by David C l e r r ~ n t s , Peter Scott andBryan HamlJton wh o all plnyed f,)r Northern Irelandand Dal Davies and David Smallman who playedfo r Wales. Mick Lyons and Mlck Buckley wereselected fo r th e England Under 23 team and JimPearson fo r the Scotland Under 23. Mark Higginsplayed again for the England Youth team whilstDrew Brand and John Brogan both played for th eScotland Youth Team.

During the year the club continued toexercise rigorous economies, every item ofexpenditure has been closely scrutinised and a newsystem of budget accounting introduced. In.. J ? e ( ' ~ m b e r the Beard appointed Mr. J. Greenwoodl.t Club Secretary in succession to Mr. C. D. Hassell.He is a very experienced executive and has alreadyestablished himself as 8 very effective football

administrator. I am certain that his appointmentwill prove of great benefit to the club and Itsadministration.

The Accounts reveal a surplus of 5,949before transfer fees. Net transfer fees cost theClub 49,670, leaving a deficiency fo r the ye.'3r of43,721. The substantial drop in attendances at

Mootball L e a g u ~ matches from an average of 40,020'l!!!I!fo 27,138practically wiped out the advantagesgained from increased admission prices, despite

the additional revenue f ro m the U EF A Cup ties.Wages and Salaries increased by 1 2 t r : ~ j and, as willbe seen from the Income and Expenditure Account,other expenses increased generally although manyeconomies were introduced. The Balance Sheetshows a slightly better position than last yearwith borrowings reduced from 319,158 to?28,300.

The financial results reflect tl.to unsatle..factory playing aeaeon but the Dlrectorl byexercising economlea and continuing to d.v.lopthe commercial actlvltl havemanaged tomalntaln a reasonable financial posltton. HoweverIt was only th e substantial contrlbutlon of 124,233irom the commercial actlvltll11 that Gnabled theClub to keep Us overall deficiency withinreescnable bound . It Ie almost certain that moneywill have to baa found fo r transfer fees In the comingyear and It more successful playing lealon,reflected In lncreased attendances, 1.8188nt1811fthe club Is to developa Itrong financial pcsltlon,

It would be wrong to conclude this Reportwithout mentioning that In April Evertonbecame the first club In the country to earn over3.000 points In the First Dlvlslon, This I , anoutstanding record of ccnelstsnt achievement oververy many yeara and it serve. as a constantreminder to all of us tha t o nl y the best is goodenough fo r Everton.

On a personal note I would like to refer toth e loyal support which I have received from myfallow directors durlno this difficult year and!would like to place on record my thanks to themfo r their help and fo r all the work that they do onbehalf of the club. My thanks are due in particularto Mr. John Moores whose advice and experiencehas been of Immense help to me and who hascontinued to place the resources of hi sOrganisation at the disposa l of the club.ALAN W. WATERWORTHChairman5th July, 1976.

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The amount of Stock In the Company In whichthe Directors at the end of the Financial Yearwere then lntereated, accordlnq to theregister kept by the Company fo r the purpolesof Section 27 of the Companies Act. 1957 areshown below. No other Interelts of theseDirectors In Stock of the Company wererecorded In the register at that date.

,- ~ '\ \.... .-,\'. ifTHE \

EVERTON FOOTBALL CLUBC OM PA NY L IM IT ED

REPORT OF THE DIRECTOR S

The foss for the yearto 31 st May, 1976amounted to 43,72L The Directors do notrecommend the payment of a dlvldend.Dlrectt\rsAt no time during the last financial yearhas:1. Any Director of the Company had directlyor Indirectly any material Interest In anyContract with the Company of significancein relation to the Company's businessrequiring disclosure under Section 16 (1) (c)of the Companies Act. 1967.2. The Company been a party to anyarrangement to enable Directors of theCompany to acquire beneflts by means ofthe acquisition of stock in the Company

or any other Body Corporate.

1 June1975Mr. A. W. Waterworth J.P. 3Mr. John Moores. C.B.E. 008Mr. J. C. Sharp 3Mr. G. A. Watts 169Mr. T. H. W. Scott 3Mr. K. M. Tamlln 3Mr. P. D. Carter 3

31 May1978-----.'.071"33333

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The following Members of the Board ofDirectors retIre in accordance with theCompany's Articles and. being eligible. offerthemselves for re-election:Mr. John Moores, C.B.E. _,Mr. J. C. SharpNominations have been received on behalfof :Mr. I. A. T. Legge. F.e.A.Mr. P. L. Parry. D.A.S.C.

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Principal activityThe prlnclpal activity of your Companycontinues to bs that of 8 ProfeaslonalFootball L8ague Club.Fixed assetsFull details of the changes to the Flxsd Assetsare shown in Notes on the Accounts. In viewof the speclalteed use of the Freehold Landand Buildings at Goodfson Park, the Directors/....~ unable to give an Indication of the1IJfference between market and book value.It is considered that the market value exceedsthe value Included In the Balance Sheet.Charitable and politicalco ntri bution sThere w ~ e r e no charitable or politicalcontributions made during the year.

AuditorsMaelfa Rogers, Bowler &Co. have lntlmatsdthelr wllllngne.s to continuo u Auditor. of theCompany.

ALAN W. WATERWORTH,Chairman5th July, 1976.

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THEEVERTON FOOTBALL CLUBC OM PA NY L IM IT ED

INCOME A ND E XP EN DIT UR E A C C OU N Tfor t he year ended 31 May 1976

1Q76 1975, tIncomeGate receipts, after percentages to visitors, League and Associations 5 3 ~ , 2 e o 8-26,190Profits from sub-lets, programmes,bars. propert-, etc. 124,233 102,082

65Q,4Q8 628,196.[ ~ p 8 n d l t u r eSalaries, wages and other payroll costs 386,668 343,145Transfer fees (net), less provision 49,670 27,200Training. travel, match and other expenses 128,716 103194QGround expenses and maIntenance 28,884 S1/000Utilities 74,925 70,463Depreciation 11,006 10,128Auditors' remuneration 2,000 2,000Other administrative expenses 25,093 2'01640

706,962 6 ( ) 8 , 5 8 ~ ~Surplus/(Deficit) carried toProfit and Loss Account (47.469) 19,607

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IHt. ERTON FOOTBALL CLUBCOMPANY LIMITED

(i~ '.

PROFIT AND LOSS ACCOUNTfor the year ended 31 May 1976

1976 1916 Surpl'ul/(Deflclt) from

... .. Income and Expenditure Account (47,400) 19,607Add: Interest received 1,715 6 , ~ 1 1.

(45,754) 20,818'Gduct: Interest paid 9.569 20,197, --55/313) SPitAdd.' Exceptional lterns (Note 3) 6,784 2,888

(48,529) 8,479Taxation (Note 4) 4,808Proflt/(Loss) after taxation (43,721) 8,479Retained profits brought forward from*evlous year 150.819 142,340

J Retained profits to date 107.098 1 d ~ , 8 1 f J

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THEEVERTON F OOT B A L L CLUBC OM PA NY L IM IT ED

BALANCE SHEETas ,at 31 May 1976

1976e633.243

4,14199,0188,1387.098 118.395

751.638

FiXQd AssetsFreehold land. buildings. equipmentand motor vehicles. at cost. lessamountn wrItten off (Note 1)Current AssetsStocks (Note 2)Sundry debtorsCash at bankCash In hand

Less: Currtfut LlabllltlesBankoverdraft:Sundry creditorsLoanNet Assqts

143.281228.800 371,5813801 0 5 7

1975e ,690,888 . ,

17,881190,49115,461 R3,839

91417&

125,658171,786193,500 400,9484e9,778

2 , D ~ 1270A59150,819 I423,778 ..

2.500270.459107.098380,057Signed on behalfof the Board

ALAN W. W AT ERW O RT H}G. A. WATTS Directors.REPORT OF THE AUDITORS TO THE MEMBERS OF THE EVERTON FOOTBALL CLUB COMPANY LIMITEDIn our opinion the annexed Bl!llanceSheet, Profit and Loss Account, and Notes give a f. ueand fair view of the state of the Company'.affairs at 31 st May, 1978 and of its Loss for the year ended on that date, and ccmpt; with the Companies Acts 1948and 1967.Signed ROGERS, BOWLER & CO., Chartered Accountants, Liverpool" Blrxenhead. 25th June 197a

Financed byCapita' and ReservesShare capital (authorised and issued)2,500 1 stock unitsGeneral reserveProfit and Loss Account

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THE.ERTON FOOTBALL CLlIBCOMPANY LIMITED

6,619{5n222

.. :NOTk:S ON THE ACCOUNTSfor the year ended 31 May 19761. Fixed A.sets Freehold land Stand and building. fJxturll, etc. Vehlel Total

'II ." ctco.. or valuationAt1at June, 1Q75 07.753 700,8159 8 , 2 ~ B O ~ , e 2 7'" Addlttonl (sel below) ( ~ 6 , I W ) ~ , 1 S 7 U 1 , o 4 ~\C 411' Ol.poult (1,750) (6,076) (8,72---j, At 31st May. 1978 98,008 854.470 7,387 7 ~ 1 8 M- - -ot DefrQctationAt st dune, 1snS 27,720 84,128 .,891 115,789Provided during year 9.504 1,502 11,008On dlspcsals (3.1t8) (3,128)- - - - -At 31st May, 19715 27,720 931M2 2,285 1 2 8 , ~ 1 7

" :Ne t book value at tJ7.28S 560,8SS 5,122 e88,24331st May. 1976Donattcne received from the various Everton developmentaoclatlon. have beenappliedInrsductlonof the COlt of Itand., etc.No depreciation II provided on land, buildings, Itandl, fixture., and oqulpment al.oclated with the principal activity of theCompany. Other fixed assets, Including vehIcles. ar. being depreciated at 2 5 ~ ~ on the reducing balance bull.

2. SlocksStocks consist of refreshments and souvenirs, and have been valued at the low.r of COlt or market value.3. Exceptional ItemsRates refund re earlier yearsLoss on sale of propertyOlstrfbutlon received from Investment prevIously wrItten of f

1975/76 1974/753 32 21 Nil

1976 19751,506 NilNil Nil

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, . Taxation: No tax Is due in respect of the current year, and the credit to the Pro fi t and Loss Account represents an adjustmentr e l ~ t l n g to an earlier year.

5. Employees' EmolumentsThe number of employees earning over 10,000 per annum wes as follows:-8atween :10,001 and 12.500Between 12,501 and 15,000Between 15,001 and 17,500

6. Future capital expenditureAmount contracted fo r but not provided for in these accountsAmount authertsed by the Dlroctcrs but not yet contracted for

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THEEVERTON FOOTBALL CLUBCOMPANY LIMITED

MINUTES OF THE Q6TH ANNUAL GENERAL MEETING HELD AT GOODISON PAHK, L1Vf:RP'OOL ONTHURSDAY, 14th AUGUSr. 19761 AT 7.00 P.M.Present: Messrs. A. W. Waterworth. J.P. (In the Chttlr) , J. Moores, C.B.E., J. C. Sharp. G. A. Waitt.T. H. W. Scott. K. M. Tamlln and P. D. Carter (Dlrac{ors), C. D. Halsell (Secretary), W. L Bingham( M ~ n a g e r ) , P. B. Bowler (representing Messrs. Rogers, Bowler & Co. Auditor.), together with 88Shareholders.

NOTICE OF MEETING:It was agreed that the notice convening themeeting should be taken as read.

PRESS:It was agreed that the Press should remainin attendance.

MINUTES:The minutes of the previous Annual GeneralMeeting held on 1st August, 1974 having beencirculated were agreed and taken as read,

confirmed, and signed as a correct record.

CHAIRMAN'S REPORTThe Chairman's report, hl!lvlng been clrculated,was taken as read. The Chairman rsterred to the.recent sad passing of Mr. Norman Borrowdale, .Club Physiotherapist for the past 10years, andalso the retirement from the Board after manyyears service of Mr. Norman Coffey. The Boardhad co-opted Mr. P. D. Carter to fllJ the vacancy.Aiter an Introduction from the Chairman,Mr. Carter addressed the meeting briefly.

DIRECTOF,S' REPORT AND ACCOUNTS:It was agreed that the Directors' Reportand it.Auditors' Report be taken as read. Mr.Watts

proposed the adoptlon of the Accounts. This wasseconded by Mr. Bailey.There were no questionsand the resolution was carried unanimously.

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,DIVIDEND:~ , ~ ; , I . , . Mr. J. C. Sharp proposed that no divIdend be,, ' );)tlld. This was seconded by Mr. Isenwater and ths

resolution was carried.' .otTORS REMUNERATION

It was proposed by Mr. Tamlin and secondedby Mr. Whitley that the remuneration for theensuing year be left to the Directors to decide.This resolution was carried unanimously.

ELECTION OF DIRECTORS:Mr. John Moores occupied the Chair fo r thisitem. He reported that Mr. Waterworth and Mr.Watts retired by rotat ion and being eligible_erad themselves fo r re-election. The nomInationIn respect of Mr. I. A. T. Legge had been

t withdrawn. It was agreed to take a sIngleresolution fo r the re-election of Mr. A. W.

Waterworth and Mr. G. A. Watts fo r a furtherterm of three years. The resolution was proposedby Mr. Moores, Mr. Davies seconded and theresolution was carried unanimously. Mr.Waterworth expressed thanks to the meeting onbehalf of Mr. Watts and himseJf for their support.

ANY OTHER BUSINESS:Mr. Waterworth answered various question.put by Shareholderaand the meet1ng then closed

wJth a vote of thanks to the Chairman.

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THEEVER'ON FOOTBALL CLUBCOMPANY LIMITED

NOTES

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J.C. SharpJack Sharp Ltd.'l'he Everton It"'ootball Club Co. I"td.

';:nOm!lS JCI')t t & :,jono (Bakers) Lt.d ,'Il'.L:ountry 1-Iaid 13nkersies Ltd , ,~ Jst Helling Ltd ,t . ~ o o k b ~ n & Sone Lid.~ o u B i n a (Confectioners) Ltd.'rhe ~ ' v e r t o n Football Club Co. Ltd.

Mr. 1'.0. CarterThe Littlewood! Organisation Ltd.Brian Mille &Janet Frazer ServioesCo. Ltd.M.C. Hitchen &Sons Ltd.Postal 8ervicQ8 Ltd.The International Import &ExportCo. Ltd.Everton Football Club 00 . Ltd.J . &C. Moores Ltd

Liverpool Boy.' Aeaociation Ina.~ v e r t o n football Club Go. Ltd.

- J ~ ' , ~ . fa'terwort,

Universal Bloodstook L t d ~ tVoltcro.f't Ltd.to x &Halin Ltd.~ ~ a l l Inveetmen t . Ltd.Nilam &Co. Ltd.Spinel81de Ltd.A. Taylor & IJO.