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TheEver tonFootball ClubCompany Limited

Annual ReportandStatement of Accountsat 31 May 1978

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THEE V E R 1 ~ O N FOOTBALL CLUBCOM PANY LIMITED

NOTICE OF MEET INGNOTICE IS HEREBY GIVEN that theNinety-ninth Annual General Meeting ofthe Company will be held at the offices ofThe Everton Football Club Company Limited,Goodison Park, Liverpool L44EL, onThursday the 3rd day of August, 1978, at7.00 p.m, to receive and consider the Reportof the Directors, and the Accounts fo r theperiod ended 31st M a ~ ' t 1978. to electDirectors, to appoint Auditors for the ensuingyear, and to fix their remuneration, and totransact any other business which may betransacted at the Ordinary General Meetingof the Company.The Transfer Books of the Company willbe closed until 4th August, 1978.By Order of the Board.J. GREENWOOD, Secretary,Goodison Park, Liverpool L44EL.4th July, 1978.Admission on Presentationof Annual ReportNotice is also gi\ en that a Member of theCompany entitled to attend and vote at theabove Annual General Meeting is entit ledto 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 Compeny, not less than48 hours bef"e the timeof theMeeting.

DirectorsT. H. W. Scott, ChairmanP. D. Carter, Vice-ChairmanJ. C. SharpG. A. WattsA. W. Waterworth, J.P.K. M. TamlinJ. Search

Secretary and Registered OfficeJ. GreenwooL'l.Goodison Park, Liverpool L4 4EL

ManagerG. F. Lee

BankersMidland Bank Limited

AuditorsRogers, Bowler & Co.

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THEEVERTON FOOTBALL CLUBCOMPANY LIMITED

CHAIRMAN'S REPORT

1have much pleasure in submitting theAnnual Report and Accounts.The past season saw a further markedimprovement in results. but again n.; trophiescaptured. In the League we had to be satisfiedwith third place - and, more importantly. a placein Europe - 1:"-';\ ~ o the greater part of the seasonwe stood a close second to the very worthychampions, Nottingham Forest.The first half of the season. In fact. saw ushave one of our f inest runs of success - - 22 games

without defeat - but at Christmas our challengefor the League title faultered for a spell and webowed out of the F.A. Cup In the fourth roundand the League Cup In the fif th round.The prize whir n did not elude us howeverwas a place in the UEFA Cup In our centenaryseason and we look forward keenly to this returnto European competition after three years'absence.Gordon Lee's enthusiasm and commitmenthrve found echoes throughout the club andplayers at all levels have given overything to theirpreparation and performances. In directing and

motivating the playing staff so well Mr. Lee hasbeen ably assisted by Steve Burtenshaw, JimMcGregor. Eric Hal rison. Colin Harvey. RayMlnshull and Harry Cooke.Movements of senior players during theyear were again few in number, but the three mainsignings made by Mr. Lee since I last reportedhave all been unqualified successes. Our hopes

for the start of the season were given a greatboost by the arrival of Dave Thomas, from QueensPark Rangers, and George Wood. from Blackpool,and then at the end of October, Trevor Ross wassigned from Arsenal.Al l three quickly won the approval of ourfans for their skills and demeanour on the field.George Wood must have gone very close to

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gaining a place ,1 Scotland's World Cup party.Dave Thomas produced the service from theflanks that Bob Latchford had needed so muchand Trevor Ross brought additional skill and biteto our midfield. The other new arrival was JohnAnderson from Stalybrldge.Mention of Bob Latchford brings me to theexciting finale to our season. For months ourstriker had looked the player most likely to 11ft theDally Express prize of 10.000 for 30 goals In theseason, but he stili needed two goals when wecame to the final game with Chelsea. I am sure we

aJl shared the delight uf Bob and his team mateswhen he got those two goals In our 6-CwIn andthen went on to play for England In the HOJnAInternational tournament and against Hungary.On the departure front we said goodbye toRonnie Goodlassl who moved to the Dutch clubBreda: Bruce Rioch, who after a short stay withus returned to Derby County: Steve Searqeant,who joined the U.S. Club Detroit Express; DaiDavies who went to Wrexham and played a keyrole in their cup run and promotion success;Bryan Hamilton (Mlllwall) i Mike Bernard (OldhamAthletic) and Ken McNaught (Aston Villa).The Improvement In our Leagueperformances was reflected in the attendances atGoodison Park which showed a very substantialand welcome increase to an average of more than39,500, the fourth highest In the First Division.The Increased attendances not only resultedIn improved gate receipts but the Income from theother associated footballing activities and ourtrading operations showed a very considerableimprovement and the overall increase in ourincome was 195.017. Our expenditure excludinguanster fees, increased by 167.240, but the majorportion of this was in respect of the lncreasei,bonuses paid to playing staff as a result of the

improved playing results. The nett amountexpended on transfer fees during the year was421168. but in line with past practice the

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Directors considered it prudent to create anadditional reserve of 250,000 In the year's accountsto cover at least part of the expendi ture which Intheir opinion will be lncurred in Improving thesquad to meet the addit ional requirements ofEuropean competition The nett result is a profiton the years operations of 184.The expe.idlture of 238.814,which we werecompelled to incur during the year under theSafety of Sports Grounds Legl::ilation, has beencapitalised and any future grants from theFootball Grounds Improvement Trust In respectof this expenditure will be offset In future years.Once again the Commercial Departmentmade a valuable contribution to the Club's Incomewith a wide range of act iv it ies, including matchsponsorship, in which we made a successfu l startduring the season under review and which we will

~ ~ v e l o p very considerably during the comingseason.Our Bank position shows a dramaticimprovement from an overdraft of 317,760 lastyear, to a credi t balance of 61.244. Whilst anincrease of 129,618in advance Season Ticketsales is partly responsible fo r this improvement,the posit ion is very encouraging and enables us

to look forward to the coming season with a Ilighdegree of confidence.Last year I mentioned the cloud on ourhorizon in the form of the Safety of Sports GroundAct. Just how forbidding the requirements of thisnew legislation covering ground safety turned ou tto be can be gauged from the fact that when all theagreed ground improvements, Including thefencing of the pitch, are complete we wil l havepaid out in the region of 300.000.In this work, much of which had to be donewhile the season was in progress, we received.remendous co-operatl on f rom our architects andcontractors, and from the local authorities whosejob it is to administer the Act. Goodison Park was

already one of the country's finest groundsbefore all this work commenced; now it must besecond to none both in comfort and safety.This report would not be complete withoutsome words of thanks to some of the manypeople who work so conscientiously for this Club.I have received the strongest support at all timesfrom my fellow directors, especially Mr. PhilipCarter (Vice-Chairman), the officials of the Club,and Mr. John Moores has continued to provideshrewd advice and the generous availabil ity of hisOrganisation's resources.Once again our supporters did us proud onmany a field, g iv ing Mr. Lee and the team a degreeof encouragement which never faltered. The valueof this support Is immense; whatever theirnumbers our fans really make themselves heardon away grounds and the players draw greatstrength f rom this.Finally, a brief look ahead. The comingseason is a very special one fo r us - ourCentenary Season. Other League Clubs havealready reached their century but Everton stillproudly lead on several scores. No club hasplayed mON) First Division matches, or scoredmore First L"ivision goals, or amassed more FirstDivis ion polr .ts, In an "all t ime Football Leaguetable" we are ihe champions and the off ic ia l clubhistory, to be published In September, will tell thewhole story.But a proud past is one thing. a successfulpresent and future is altogether dif ferent intodays highly competitive environment. However,we now have a strong squad, a first classmanagement team, superb ground fac il it ies and achance to show what we can do in Europe. Ourhope must be that the Everton Centenary seasonwill indeed be one to remember.

T. H. W. SCOTTChairman4th July 19785

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THEEVERTON FOOTBALL CLUBCOMPANY LIM ITED

REPORT OF THE DIRECTORS,,"

The amount of Stock In the Company in whichthe Directors at the end of the Financial Yearwere then interested, according to theregister kept by the Company fo r the purposesof Section 2.7 of the Companies Act 1967areshown below. No other interests of theseDirectors In Stock of the Company wererecorded In the register at that date.

1st June1977

The prof it for the year to 31st May, 1978amounted to 184. The Directors do notrecommend the payment of a dividend.DirectorsAt no t ime during the last financial year has:1. Any Director of the Company had directly

or indirectly any materia l Interest ln 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 benef its by means ofthe acquisition of stock in the Companyor any other Body Corporate.

Mr. T. H. W. ScottMr. P. D. CarterMr. J. C. SharpMr. G. A. WattsMr. A. W. Waterworth, J.P.Mr. K. M. TamlinMr. J. Search

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31st May19783333333

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The following Members of the Board ofDirectors retire In accordance with theCompany's Article'S and, being eligible, offerthemselves fo r re-election:Mr. G. A. WattsMr. A. W. Waterworth, J.P.

Nominations have been received on behalf of:Mr. D. A. B. NewtonMr. P. L. Parry. J.P.

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Principal activityThe principal activity of your Companycontinues to be that of a ProfessionalFootbail League Club.Fixed assetsFull details of the changes to the Fixed Assetsare shown in Notes on the Accounts. In viewof the special ised use of the Freehold Landand Buildings at Goodison Park. the Directorsare unable to give an indicat ion of thedifference between market and book value.It is considered that the market value exceedsthe value included in the Balance Sheet.Charitable and politicalcontributions,There where no charitable or politicalcontributions made during the year.

AuditorsMessrs Roc"rs, Bowler &Co. have intimatedtheir willingness to continue as Auditors of theCompany If re..elected.

T. H. W. SCOTT,Chairman4th July, 1978.

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f PROFIT AND LOSS ACCOUNT{ for the year ended 31 May 1978

1978 1977 Surplus/(Deficit) fromIncome and Expenditure Account (14.702) (1091 2 7 7 )Add: Interest received 16,639 6,565

Exceptional income (Note 3) 2,8511,937 (99,861)

Deduct: Interest paid (1,753) (14,165)184 (114,026)

Taxation (Note 4)Profit/(Loss) after taxationtransferred to Reserves 184 (114,026)

{,t

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BALANCE SHEETas at 31 May 1978Fixed AssetsFreehold land, buildings, equipmentand motor vehicles, at cost, lessamounts written of f (Note 1)Current AssetsStocks (Note 2)Sundry debtorsCash at bankCash in hand

1978 1977 694.971 550,612

8,062 41863272,363 292/3761.2443,679 3,869345.348 301 ,469---1,040.319 852,081

Less: CUl'rent Liabilitiesand ProvisionsBank overdraftSundry creditors

Net Assets

Financed byCapital and ReservesShare capital (authorised and issued)2,5001 stock units, fully paidReserves (Note 5)

524.104 524,104516,215

2,500513,715516.215

317,760268J 2 9 0 586,050

266,031

2,500263,531266,031

Signed on behalfof the BoardT. H. W. SCOTT} Directors.G. A. WATTS

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THEEVERTON FOOTBALL CLUBCOMPANY L IM ITED

STATEMENT OF THE SOURCE AND APPLaCATION OF FUNDSfor the year ended 31 May 1978

1978 1977 e Source of FundsProfitj(Loss) before tax 184 (114,026)Adjustment for Items not using funds -Depreclation 10,020 9,777,. Transfer to Transfer Fees Reserve 250,000Funds from day..to ..day operations 260,204 (104,249)Movements in fixed assets 72,854Total funds from all sources 260,204 (31,395)Application of FundsMovements in fixed assets 154,379

105,825 (31,395)Movements in working capital :Increase (decrease) in stocks 3,199 722Increase (decrease) in debtors (20.374) 193,719

.. Decrease (increase) in creditors (255,814) (125,009)(272,989) 69,432Increase (decrease) in net l iquid funds 378,814 (100,827)

Comprising:-Bank and short term borrowings 379.004 (97,59B)Cash in hand (1HO) (3,229)378,814 (100,827)

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NOTES ON THE ACCOUNTSfo r the year ended 31 May 19781. Fixed Assets Freehold land Stands. Safetyand buildings fixtu res etc. works Vehicles Totals

Cost or valuation At 1st June 1977 88.416 588.103 7,387 683.906Additions (see below) (92,746) 238.814 10,327 156.395Disposals (4,130) (4,130)At 31 st May 1978 88.416 4951 3 5 7 238.814 13,584 836.171Depree iati0 nAt 1st June 1977 27.720 102,030 31 5 4 4 133,294Provided during year 7,011 3,009 10.020On disposals (2,114) (2,114)At 31st May 1978 27.720 109.041 4.439 141,200Net book value at31st May 1978 60.696 386.316 238.814 91145 6941971

1978Profit (Loss) on sale of property

Donations received from the various Everton development associations have been app\ied inreduction of the cost of stands etc. in accordance with undertakings given between the Cluband the associations.Expenditure under the heading of safety works was incurred in order to meet the requirementsof the Safety of Sports Grounds Act 1975.No depreciation is provided on land. buildings. stands and fixtures and fittings therein includingsafety works. Other fixed assets, including vehicles. are depreciated at 25% per annum on thebook value.2. StocksStocks consist of refreshments and souvenirs and have been valued at the lower of cost or netrealisable value.3 Exceptional Items

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4. TaxationThere is no charge to Corporat ion Tax fo r th e year.

5. ReservesTransfer fees reserveBalance at 1st June 1977:Transferred from Profit and LossAccount in respect of futureexpenditure authorised by theDirectorsBalance at 31st May 1978

General reservesBalance at 1st June 1977Profit (Loss) for the yearBalance at 31st May 1978

Total reserves

1978

250,000250,000

263,531184

263,715513,715

1977

377,557(114,026)263,531263,531

6. Employees' EmolumentsTh e number of employees earning over 10,000 per annum was as follows:-1977/78Between 10,001 and 12,500 4Between 12,501 and 15,000 5Between 15.001 and 17,500 2Between 17,501 and 20,000 1Between 20,001 and 22,500 4Between 22,501 and 25,000 1Between 25,001 and 27,500 2

1976/779412None

NoneNone

7. Future Capital ExpenditureAmount contracted fo r bu t n otprovided fo r in these accountsAmount authorised by the Directorsbu t not yet contracted fo r

197866,54717,700

1977NilNil

REPORT OF THE A UDITORS TO TH E MEMBERS OF TH E EVERTON FOOTBALL CLUB COMPANY LIMITEDIn our opInion, the Accounts set out on pages 8 to 13,which have been prepared under the historical cost convention. give, onthat basis, 8 true and fair view of the state of the Companys affairs at thQ31st May1978and of Its proflt and source and applicationof funds for the year ended on that date. and comply with the Companies Ac t 1948and 1967.SIgned ROGERS, BOWLER & CO Chartered Accountants. 27th June,1978

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THEEVERTON FOOTBALL CLl'BCOMPANY LIMITED

MINUTES OF THE 98TH ANNUAL \-it:NERAL MEETING HELD AT GOODISON PARK, LIVERPOOL ONTHURSDt,Y, 4th AUGUST 1977 AT 7.00 P.M.

Present: Messrs. T. H. W. Scott (in the Chair), J. C. Sharp, G. A. Watts, A. W. Waterworth, J.P.,K. M. Tamlln and J. Search (Dlreciors), J. Greenwood (Secretary), G. F. Lee (Manager), P. B. Bowler(representing Messrs. Rogers, Bowler & Co., Audilors). together with 89 Shareholders.

An apology fo r absence was received rrornMr. P. D. Carter (Director).NorlCE OF MEETING:

It was agreed that the not lce convening themeeting should be t a ~ E . . ! l ac read.PRESS:

The Chairman reported that the press werepresent and it was agreed that they should remainin attendance. .MINUTES:

The Chairman reported tha t the minutes of the97th Annual General Meeting had been circulated,Mr. W. Davies proposed that the..e be signed as atrue record. This was seconded by Mr. G. Baileyand unanimously agreed.CHAIRMAN'S REPORT

The Chairman's report having been circulatedwas taken as read. The Chairman then referred tothe retirement from the Board of Directors ofMr. John Moores. The Chairman presented Mr.Moores with a sl iver salver to mark his retirementand on behalf of everyone connected with EvertonF.C. expressed thanks fo r the great contr ibut ion hehad made to the success of the Club during his14 years in office as a Direc tor. On behalf of theShareholders Mr. W. Macauley proposed a specialvote of thanks to Mr. John Moores and this wassu itab ly seconded by Mr. P. L Parry, J.P. Mr.Moores thanked the Sharehnlders fo r their goodwishes and assured the Club of his continuedsupport and assistance.The Chairman reported that followingMr. Moores' retirement Mr. J. Search had beenco-opted to fill the vacancy. After an introductionfrom the Chairman Mr. Search addressed themeeting.14

DIRECTORS' REPORT AND ACCOUNTS:It was agreed that the Directors' Report andAccounts should be taken as read. After answeringquestions Mr. G. A. Watts proposed that theAccounts should be adopted. This was secondedby Mrs. E. Jones and carried unanimously.DIVIDEND:

Mr. A. W. Waterworth, J.P., proposed thatno div idend should be paid. This was secondedby Mr. R. E. D. Edwards and carried unanimously.APPOINTMENT AN D REMUNERATION OFAUDITORS:Mr. K. M. Tamlin proposed that Messrs.Rogers, Bowler & Co., be appointed as Auditorsfo r the ensuing year and their remuneration shouldbe left fo r the Directors to decide. This wasseconded by Mr. J. C. Whitley and carriedunanimously.ELECTION OF DIRECTORS:Mr. J. C. Sharp was Invited to take the Chairfo r this Item. Mr. Sharp reported that the threeretiring Directors were Messrs. T. H. W. Scott,K. M. Tamil nand P. D. Carter, who were alleligible and offered themselves fo r re-election.The nominations in respect of Mr. D. A. B. Newtonand P. L. Parry, J.P., had been withdrawn. Itwasunanimously agreed to take a single resolution fo rthe re-election of Messrs. Scott, Tamlin andCarter fo r a fur ther per iod of 3 years. This wasproposed by Mr. J. C. Sharp, seconded by Mr.P. D. Parry, J.P. and carried unanlmously.ANY OTHER BUSINESS:

The Chairman answered various questionsput by Shareholders and the Meeting closed witha vote of thanks to the Directors and Managementproposed by Mr. G. Bailey and seconded by Mr. F.Mickl esfi eld,

efc 1977 1978 accounts

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