Annual Report and Financial Statements
for the year ended 30 June 2007
Powerleague Group plc
The Champions of 5-a-side
Powerleague Group plc
Anchor Grounds
Blackhall Street
Paisley PA1 1TD
0141 887 7758
www.powerleagueplc.com
Powerleague Group plc    Annual Report and Financial Statements for the year ended 30 June 2007 Auditors
Ernst & Young LLP
George House
50 George Square
Glasgow 
G2 1RR
Bankers
Bank of Scotland plc
123 St Vincent Street
Glasgow 
G2 5EA
Solicitors
Osborne Clarke LLP
One London Wall
London 
EC2Y 5EB
Crutes LLP
Great North House
Sandyford Road
Newcastle Upon Tyne
NE1 8ND
Nominated Adviser and Broker
Cenkos Securities Limited
6.7.8 Tokenhouse Yard
London 
EC2R 7AS
Registrars
Computershare Investor Services plc
PO Box 82
The Pavilions
Bridgwater Road
Bristol 
BS13 8FB
Registered Office
Powerleague Soccer Centre
Pursley Road
Mill Hill
London 
NW7 2BB
Registered Number
5384840
We offer our customers the option of competitive 
league matches, corporate tournaments or social  
play within an environment of excellent service and 
first-class facilities. We continue to focus on increasing 
our national brand presence to meet local and 
regional demand for small-sided football. In addition 
we are extending our relationships with a growing 
number of superb sponsors, blue-chip companies  
and major brands wishing to align themselves with  
grass-roots football and our customer base.
Powerleague Group plc is the market-leading 
operator of premium quality, purpose-built  
5-a-side football centres in the United Kingdom.
  Contents
	 1	 Highlights
	 2	 Chairman’s 	 Statement
	 4	 Chief 	 Executive’s	 Report	 	10	 Financial 	 Review
	12 	 	 Board 	 of	 Directors
	13 	 	 Corporate 	 Governance
	14 	 	 	Statement	 of	 Directors’	 	 responsibilities	 in	 Respect	 	 of	 the	 Financial	 Statements
	15	 Directors’ 	 Report
	18	 	Remuneration	 Report
	20	 	Independent	 Auditors’	 Report
	21 	 	 Financial 	 Statements
	26	 	Notes	 to	 the	 Financial	 Information
	54	 	Notice	 of	 Annual	 General	 Meeting
	60	 Our 	 Centres	 IBC	 Advisers
Advisers +
18.0%
Highlights 2007
	 	Revenue	 increased	 by	 12%	 to	 £23.0	 million	 	 (2006:	 £20.5	 million)
	 	Centre	 like	 for	 like	 revenue	 increased	 by	 5%	 	 (2006:	 3.0%)
	 Sponsorship	 and	 events	 revenue	 increased	 by	 41%	 	 	EBITDA	 before	 exceptional	 items	 increased	 by	 18%	 	 to	 £8.4	 million	 (2006:	 £7 .1	 million)
	 	Operating	 profit	 before	 exceptional	 items	 up	 24%	 	 to	 £6.1	 million	 (2006:	 £4.9	 million)
	 	Profit	 before	 taxation	 increased	 by	 56%	 to	 £5.0	 million	 (2006:	 £3.2	 million)
	 	Proposed	 dividend	 of	 1.1p	 (2006:	 0.75p)	 per	 ordinary	 share,	 up	 47%
	 	Earnings	 per	 share	 increased	 by	 66%	 to	 4.47p	 	 (2006:	 2.69p)
+
12.0%
+
5.0%
+
41.0%
+
24.0%
Results	 for	 the	 periods	 to	 30	 June	 2007	 and	 1	 July	 2006	 represent	 52	 weeks’	 trading	 and	 references	 to	 ‘year’	 throughout	 these	 accounts	 refer	 to	 these	 periods	 as	 defined.
+
66.0%
+
56.0%
+
47.0%
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Introduction
I	 am	 delighted	 to	 report	 another	 record-breaking	 year	 of	 strong	 growth	 for	 the	 Group.	 In	 the	 twelve	 months	 to	 30	 June	 2007,	 our	 Group	 has	 achieved	 growth	 in	 revenues,	 profits	 and	 earnings	 per	 share.
Results
Group	 revenue	 for	 the	 year	 increased	 by	 12%	 to	 £23.0	 million	 (2006:	 £20.5	 million).	 EBITDA	 before	 exceptional	 items	 increased	 by	 18%	 to	 £8.4	 million	 whilst	 operating	 profit	 before	 exceptional	 items	 increased	 by	 24%	 to	 £6.1	 million.
For	 the	 first	 time,	 the	 financial	 statements	 have	 been	 prepared	 under	 International	 Financial	 Reporting	 Standards	 (IFRSs).	 A	 detailed	 explanation	 of	 the	 changes	 made	 and	 reconciliations	 from	 our	 previously	 published	 	 UK	 GAAP	 information	 is	 given	 in	 note	 30.
Dividends
Given	 the	 continued	 high	 levels	 of	 cash	 generation	 from	 operating	 activities	 and	 overall	 strong	 performance	 of	 the	 Group,	 your	 Board	 is	 recommending	 the	 payment	 of	 a	 final	 dividend	 for	 the	 year	 of	 1.1p	 (2006:	 0.75p),	 up	 47%.	 	 The	 dividend,	 if	 approved,	 will	 be	 paid	 on	 	 3	 December	 2007	 to	 shareholders	 on	 the	 register	 at	 the	 close	 of	 business	 on	 9	 November	 2007.
Leading Position and Innovative Approach
Powerleague	 continues	 to	 lead	 the	 5-a-side	 football	 market,	 and	 currently	 operates	 37	 purpose-built	 centres	 across	 the	 UK.	 We	 have	 continued	 with	 our	 strategy	 of	 extending	 our	 footprint	 of	 centres	 in	 the	 UK	 and	 since	 the	 year	 end	 have	 opened	 in	 Milton	 Keynes,	 Cardiff	 and	 a	 further	 centre	 in	 the	 City	 of	 London.	 The	 new	 City	 I	 am	 delighted	 to	 report	 another	 record-breaking	 year	 of	 strong	 growth	 for	 the	 Group.	 In	 the	 twelve	 months	 to	 30	 June	 2007 ,	 our	 Group	 has	 achieved	 growth	 in	 revenues,	 profits	 and	 earnings	 per	 share.
Chairman’s Statement
of	 London	 centre	 is	 worthy	 of	 special	 mention	 	 as	 we	 have	 converted	 railway	 arches	 and	 created	 a	 unique	 indoor	 facility.	 We	 are	 on	 schedule	 to	 open	 further	 centres	 in	 the	 current	 financial	 year	 which	 will	 extend	 our	 dominance	 of	 the	 premium	 commercial	 5-a-side	 market.
Our	 sponsorship	 and	 events	 revenues	 have	 grown	 significantly	 during	 the	 period,	 increasing	 by	 over	 40%	 year	 on	 year.	 This	 reflects	 the	 continued	 development	 and	 strength	 of	 the	 Powerleague	 brand,	 and	 the	 Group’s	 ability	 to	 attract	 and	 work	 closely	 with	 global	 brands	 which	 are	 excited	 by	 both	 our	 target	 market	 and	 grass-roots	 football	 	 in	 the	 United	 Kingdom.
Development Programme
As	 the	 first	 organisation	 to	 forge	 ties	 with	 the	 education	 sector	 to	 develop	 5-a-side	 centres,	 our	 latest	 openings	 further	 reinforce	 this	 special	 partnership	 approach.	 Both	 the	 Milton	 Keynes	 and	 Cardiff	 centres	 have	 been	 developed	 with	 schools.	 This	 ‘win-win’	 formula	 provides	 the	 schools	 with	 top	 quality	 facilities	 for	 use	 during	 the	 day	 and	 Powerleague	 with	 superbly	 located	 centres	 for	 commercial	 use	 in	 the	 evenings	 and	 at	 weekends.	 We	 now	 have	 twelve	 centres	 developed	 within	 this	 sector.
As	 outlined	 at	 the	 time	 of	 the	 interim	 results	 in	 February,	 we	 have	 been	 implementing	 our	 strategy	 of	 increasing	 investment	 in	 our	 existing	 portfolio	 of	 centres.	 Last	 year’s	 investment	 in	 refurbishing	 57	 pitches	 in	 the	 latest	 fifth	 generation	 surfaces	 helped	 increase	 pitch	 utilisation	 and	 drive	 improvement	 in	 like	 for	 like	 sales	 from	 3%	 to	 5%.	 A	 further	 80	 pitches	 have	 been	 refurbished	 this	 summer	 taking	 to	 80%	 the	 number	 of	 pitches	 in	 the	 estate	 with	 the	 latest	 state-of-the-art	 playing	 surfaces.	 Further	 investment	 has	 also	 gone	 into	 six	 bars	 which	 have	 been	 updated	 with	 plasma	 screens	 and	 comfortable,	 customer-friendly	 seating	 areas.	 Our	 commitment	 to	 providing	 our	 customers	 with	 excellent	 facilities	 and	 a	 great	 experience	 within	 a	 safe	 environment	 remains	 at	 the	 core	 of	 our	 business	 model.	 The	 unrivalled	 industry	 knowledge	 encompassed	 within	 our	 network	 of	 Managers	 and	 Head	 Office	 personnel,	 underpinned	 by	 our	 high	 staff	 retention	 levels,	 provides	 continuity	 of	 service	 and	 first-class	 tournament,	 league	 and	 social	 play.
We	 continue	 to	 invest	 in	 long-standing	 and	 key	 employees	 who	 deliver	 service	 excellence	 to	 our	 customers	 and	 reward	 them	 through	 a	 share	 option	 scheme	 as	 well	 as	 bonus	 schemes	 based	 on	 achieving	 or	 exceeding	 a	 range	 of	 targets.
Outlook
With	 three	 centres	 already	 open	 since	 the	 year-end,	 I	 can	 announce	 a	 further	 site	 is	 now	 under	 construction	 alongside	 Shrewsbury	 Town	 FC’s	 new	 football	 stadium.	 This	 centre	 has	 met	 our	 strict	 criteria	 and	 we	 are	 delighted	 to	 have	 acquired	 a	 site	 in	 such	 a	 prominent	 location.	 	 The	 centre	 is	 scheduled	 to	 open	 in	 February	 2008.	 The	 current	 pipeline	 of	 sites	 within	 the	 portfolio	 remains	 strong	 with	 new	 opportunities	 being	 targeted	 within	 under-provided	 locations.
The	 Group	 has	 continued	 to	 trade	 in	 line	 with	 expectations	 since	 the	 year-end	 and	 we	 have	 good	 reason	 to	 be	 encouraged	 by	 the	 opportunities	 for	 further	 growth	 in	 2007	 	 and	 beyond.
Claude Littner
Chairman
18	 October	 2007
Claude Littner Executive Chairman
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
2 Investing for Growth
Enhancing our premier football offering
Best Quality Pitches
5-a-side football the way it should  
be played.
Greater Ambiance
Post match analysis just got a whole lot better.
Ideal Party Venues
Weekend function bookings are enjoyed 
in the new premium quality bars.
We are constantly 
striving to improve our 
customer offering.
Our commitment to 
providing our customers 
with excellent facilities 
and a great experience 
within a safe environment 
remains at the core of 
our business model. 
£1.4m
invested in the core estate
3
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 The	 increasing	 popularity	 of	 5-a-side	 football	 and	 Powerleague’s	 prominent	 market	 position	 means	 we	 are	 well	 placed	 to	 take	 full	 advantage	 of	 future	 opportunities.
Chief Executive’s Report
I	 am	 delighted	 to	 report	 that	 trading	 in	 the	 year	 to	 30	 June	 2007	 was	 strong,	 with	 growth	 in	 revenue,	 profit	 and	 pre-tax	 cash	 flow	 from	 operating	 activities.	 Revenue	 increased	 in	 the	 year	 from	 £20.5	 million	 to	 £23.0	 million,	 with	 like	 for	 like	 branch	 sales	 up	 5%	 (2006:	 3%)	 and	 an	 exceptional	 performance	 in	 sponsorship	 and	 events	 which	 generated	 41%	 growth	 against	 the	 	 prior	 year.
New Openings
Our	 Coventry	 and	 first	 City	 of	 London	 centre	 both	 opened	 just	 prior	 to	 the	 end	 of	 the	 last	 financial	 year	 and	 each	 has	 contributed	 encouragingly	 in	 its	 first	 full	 year	 of	 trading.	 Further	 growth	 is	 anticipated	 at	 both	 locations	 as	 more	 prospective	 customers	 become	 aware	 of	 the	 Powerleague	 brand	 and	 exciting	 offering.	 Our	 City	 of	 London	 centre	 in	 Worship	 Street	 has	 benefited	 from	 lunchtime	 trade,	 high	 evening	 occupancy	 figures	 and	 a	 high	 volume	 of	 corporate	 event	 bookings	 from	 City	 firms	 and	 Institutions.	 The	 high	 occupancy	 level	 experienced	 at	 our	 Kilmarnock	 centre	 provided	 us	 with	 the	 opportunity	 of	 adding	 an	 additional	 7-a-side	 pitch	 last	 summer	 on	 the	 spare	 parcel	 of	 land	 within	 our	 demise	 and	 this	 has	 proved	 highly	 successful.	 The	 Group	 took	 the	 opportunity	 in	 summer	 2006,	 at	 the	 start	 of	 the	 last	 financial	 year,	 to	 invest	 further	 in	 upgrading	 and	 improving	 the	 quality	 of	 pitches	 in	 our	 core	 estate.	 In	 total,	 six	 centres	 were	 refurbished	 and	 57	 pitches	 were	 resurfaced	 with	 the	 latest	 fifth	 generation	 playing	 surfaces.	 This	 period	 of	 consolidation	 and	 investment	 has	 helped	 drive	 like	 for	 like	 sales	 up	 5%,	 and	 further	 enhanced	 our	 customers’	 playing	 experience.
This	 strategy	 of	 investing	 for	 growth	 has	 continued	 in	 the	 2008	 financial	 year,	 with	 work	 having	 been	 completed	 over	 the	 summer	 months	 in	 upgrading	 a	 further	 80	 pitches	 in	 eight	 locations	 at	 a	 cost	 of	 £1.4	 million.	 This	 has	 provided	 us	 with	 the	 platform	 on	 which	 to	 	 re-market	 these	 centres,	 attract	 new	 customers	 and	 raise	 our	 prices,	 thereby	 generating	 additional	 revenue	 and	 margin.	 By	 the	 end	 of	 the	 summer,	 over	 80%	 of	 our	 estate	 had	 the	 latest	 fifth	 generation	 pitch	 surfaces.
In	 addition,	 six	 of	 the	 Group’s	 busiest	 bars	 	 at	 Fairlop,	 Peterborough,	 Stoke,	 Nottingham,	 	 Catford	 and	 Glasgow	 will	 also	 be	 refurbished	 	 and	 this,	 combined	 with	 full	 pitch	 refurbishments	 at	 all	 these	 centres,	 will	 help	 boost	 revenues	 and	 further	 enhance	 our	 customers’	 overall	 playing	 experience.	 Pipeline Sites
Since	 the	 year-end,	 Powerleague	 has	 opened	 an	 innovative	 indoor	 centre	 on	 a	 long	 lease	 at	 Old	 Street	 in	 the	 City	 of	 London.	 The	 pitches	 have	 been	 converted	 from	 former	 railway	 arches.	 The	 centre	 has	 already	 proved	 highly	 popular,	 with	 strong	 sales,	 high	 utilisation	 rates	 and	 encouraging	 levels	 of	 interest	 from	 both	 lunchtime	 and	 evening	 players.
In	 August	 2007	 the	 Group	 opened	 its	 eleventh	 education	 or	 ‘school	 site’	 in	 Cardiff	 at	 the	 largest	 comprehensive	 school	 in	 the	 country.	 Located	 in	 a	 prominent	 and	 high	 profile	 location	 on	 a	 main	 arterial	 road	 into	 Cardiff,	 the	 centre	 has	 ten	 fifth	 generation	 pitches,	 a	 licensed	 sports	 bar	 and	 excellent	 changing	 facilities.	 Pre-opening	 sales	 have	 been	 highly	 encouraging	 and	 the	 centre	 is	 forecast	 to	 make	 a	 strong	 contribution	 in	 the	 2008	 financial	 year.
Sean Tracey Chief Executive
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
 National Footprint
Our national network of centres makes us a market leader
Freehold sites
Local authority lease
Private landlord sites
School/university sites
Autumn 07 Openings
City Old Street
New Site
Cardi
New Site
Milton Keynes
New Site
We are constantly 
seeking out new sites 
and opportunities 
to expand our 
national network.
Powerleague is 
delighted to have been 
the pioneer of the 
partnership approach 
with the education 
sector.
37
centres in total
3
new centres opened since the year-end
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Top sponsorship
We continue to develop strong partnerships
+ 41%
increase in sponsorship and events revenue
Our proactive approach 
to sourcing and 
investigating innovative 
marketing ideas has 
helped develop this 
lucrative income stream.
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
 Powerleague	 Milton	 Keynes	 opened	 at	 the	 end	 of	 September	 2007	 at	 Walton	 High	 School,	 the	 Group’s	 twelfth	 education	 site	 which	 is	 an	 outstanding	 centre	 in	 a	 prized	 location.	 The	 £2	 million	 centre	 has	 ten	 5-a-side	 pitches	 and	 two	 7-a-side	 pitches,	 all	 with	 fifth	 generation	 playing	 surfaces,	 excellent	 changing	 facilities	 and	 a	 licensed	 sports	 bar.	 Advanced	 bookings	 have	 proved	 highly	 encouraging,	 and	 the	 centre	 is	 expected	 to	 make	 a	 strong	 contribution	 in	 	 the	 year.	 	 As	 the	 pioneer	 of	 this	 partnership	 approach	 within	 the	 education	 sector,	 to	 date	 we	 have	 over	 20,000	 children	 per	 week	 playing	 free	 throughout	 our	 portfolio	 of	 centres.	 With	 child	 obesity	 currently	 a	 ‘hot	 topic’,	 we	 believe	 that	 we	 are	 providing	 a	 most	 important	 facility	 for	 children	 to	 get	 fit,	 maintain	 a	 healthy	 lifestyle	 and	 enjoy	 the	 sport.
From	 a	 business	 perspective,	 our	 philosophy	 from	 the	 early	 days	 of	 the	 Group	 has	 paid	 dividends;	 the	 local	 children	 who	 played	 at	 our	 earliest	 centres	 not	 only	 established	 a	 strong	 relationship	 with	 and	 loyalty	 to	 the	 centre	 and	 its	 staff,	 but	 have	 now	 developed	 into	 paying	 customers.	 	 Our	 approach	 is	 to	 continue	 to	 embrace	 the	 local	 community	 in	 which	 our	 centres	 are	 located.
Future Pipeline
An	 exciting	 new	 site	 alongside	 Shrewsbury	 Town	 FC’s	 new	 10,000	 seat	 stadium	 is	 now	 under	 construction.	 With	 a	 catchment	 area	 of	 over	 200,000	 people	 within	 a	 20-minute	 drive	 time,	 prominent	 location	 off	 the	 A5	 and	 no	 commercial	 competition,	 we	 believe	 this	 site	 will	 prove	 very	 popular.	 In	 addition,	 the	 bar	 area	 will	 also	 benefit	 from	 increased	 revenues	 when	 the	 Championship	 club	 plays	 its	 home	 matches.	 The	 Group	 has	 over	 thirty	 sites	 at	 various	 stages	 in	 the	 planning	 process,	 of	 which	 six,	 at	 the	 time	 of	 writing,	 are	 in	 the	 hands	 of	 lawyers,	 negotiating	 and	 finalising	 the	 agreements	 to	 lease.	 As	 Powerleague’s	 brand	 and	 profile	 grow,	 so	 too	 do	 the	 opportunities	 presented	 to	 us	 to	 develop	 5-a-side	 centres.	 However,	 many	 do	 not	 fit	 our	 criteria	 and	 those	 that	 do	 have	 to	 go	 through	 planning	 procedures	 which	 are	 not	 always	 straightforward	 or	 speedy.	 While	 this	 may	 be	 viewed	 as	 a	 potential	 barrier	 to	 entry	 it	 brings	 other	 challenges,	 in	 that	 it	 is	 not	 always	 easy	 to	 predict	 when	 a	 site	 will	 be	 able	 to	 go	 under	 construction.	 I	 am	 greatly	 encouraged	 by	 the	 quality	 and	 number	 of	 sites	 we	 are	 processing	 and	 the	 progress	 we	 are	 making	 to	 open	 centres	 in	 areas	 of	 the	 country	 which	 are	 under-served	 	 or	 completely	 lacking	 in	 the	 provision	 of	 	 purpose-built	 facilities.
Sponsorship and Corporate Events
Over	 the	 last	 12	 months	 and	 as	 forecast	 in	 last	 year’s	 annual	 report,	 sponsorship	 and	 corporate	 events	 have	 continued	 to	 develop,	 with	 sales	 up	 41%	 year	 on	 year.	 We	 have	 an	 impressive	 client	 list,	 supplemented	 by	 long-term	 sponsorship	 partners,	 headed	 by	 Xbox,	 Nike,	 Lucozade	 and	 Budweiser.	 We	 have	 also	 worked	 with	 O2	 and	 Toyota	 to	 promote	 their	 brands	 to	 Powerleague	 customers	 as	 part	 of	 a	 wider	 media	 campaign.	 Furthermore,	 during	 this	 period	 we	 have	 hosted	 and	 managed	 new	 5-a-side	 events	 for	 a	 wealth	 of	 companies	 such	 as	 Goldman	 Sachs,	 sThree,	 NCP	 and	 Deloitte.	 In	 addition,	 Powerleague	 successfully	 retained	 national	 events	 for	 Barclays	 Bank,	 J	 D	 Wetherspoon	 and	 Sainsbury’s.	 Looking	 forward	 to	 the	 next	 12	 months,	 exciting	 new	 opportunities	 for	 further	 growth	 remain	 in	 this	 area.	 The	 2008	 European	 Championships	 (‘Euro	 2008’)	 will	 attract	 further	 interest	 in	 football	 from	 major	 brands	 and	 we	 are	 ideally	 placed	 to	 take	 advantage	 of	 such	 opportunities.	 In	 fact,	 	 we	 are	 already	 engaged	 in	 discussions	 with	 a	 number	 of	 brands	 with	 regard	 to	 future	 activity.	 Our	 proactive	 approach	 to	 sourcing	 and	 instigating	 innovative	 marketing	 ideas	 has	 helped	 develop	 this	 lucrative	 income	 stream.
Chief Executive’s Report – continued
7
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Principal Risks and Uncertainties
As	 with	 any	 business,	 there	 is	 always	 a	 dependence	 on	 a	 number	 of	 employees	 who	 occupy	 key	 positions	 and	 are	 tasked	 to	 achieve	 the	 Group’s	 objectives.	 We	 provide	 an	 attractive	 salary	 and	 incentive	 package	 designed	 to	 retain	 and	 motivate	 all	 employees	 and	 these	 key	 people	 in	 particular.
Health	 and	 Safety	 is	 a	 priority	 and	 is	 discussed	 both	 at	 branch	 and	 Board	 level,	 with	 audits	 undertaken	 by	 qualified	 managers.
The	 pipeline	 of	 sites	 is	 an	 important	 factor	 as	 it	 impacts	 our	 roll-out	 programme.	 Key	 to	 this	 is	 market	 intelligence	 in	 finding	 suitable	 potential	 sites	 and	 then	 managing	 them	 through	 the	 planning	 process.	 We	 are	 confident	 that	 we	 have	 the	 expertise	 to	 develop	 and	 bring	 new	 sites	 to	 fruition	 in	 line	 with	 our	 forecasts.
Competitor	 activity	 may	 have	 an	 adverse	 impact	 if	 a	 5-a-side	 centre	 is	 established	 within	 close	 proximity	 and	 encroaches	 on	 our	 existing	 catchment	 area.	 However,	 with	 so	 many	 geographic	 areas	 not	 yet	 well	 served	 by	 purpose-
built	 5-a-side	 football	 facilities,	 we	 view	 this	 as	 a	 risk	 which	 any	 sensible	 commercial	 operator	 should	 take	 into	 account	 when	 considering	 new	 site	 development.
Corporate and Social Responsibility
Powerleague	 continues	 to	 work	 with	 a	 number	 of	 charities	 on	 a	 local	 and	 national	 basis.	 In	 the	 year	 under	 review,	 we	 have	 hosted	 and	 managed	 national	 events	 for	 Childline,	 Clic	 Sergeant	 and	 the	 Motor	 and	 Allied	 Benevolent	 Fund.	 We	 have	 also	 developed	 a	 partnership	 with	 The	 Bobby	 Moore	 Fund	 which	 tackles	 bowel	 cancer	 and	 is	 part	 of	 Cancer	 Research	 UK.	 Over	 the	 next	 12	 months,	 we	 plan	 to	 strengthen	 our	 links	 with	 cancer	 charities	 and	 develop	 a	 National	 Charity	 Tournament	 to	 raise	 awareness.
As	 outlined	 earlier,	 the	 Group	 continues	 to	 offer	 free	 play	 in	 all	 centres	 for	 local	 schools	 and	 community	 groups.	 This	 helps	 in	 tackling	 issues	 such	 as	 obesity,	 lack	 of	 quality,	 purpose-built	 sports	 facilities,	 and	 also	 provides	 the	 twelve	 education	 sector	 institutions	 where	 we	 have	 centres	 with	 an	 additional	 income	 stream	 by	 	 way	 of	 rental.	 Staff
I	 would	 once	 again	 like	 to	 thank	 our	 staff	 for	 their	 hard	 work,	 loyalty	 and	 commitment	 to	 the	 Group	 over	 the	 past	 year.	 Our	 network	 of	 staff	 at	 branch	 and	 Head	 Office	 continues	 to	 perform	 to	 the	 highest	 standards	 and	 their	 unrivalled	 experience	 in	 the	 industry	 provides	 the	 essential	 building	 blocks	 to	 manage	 our	 existing	 business	 and	 to	 continue	 growing.
Outlook
With	 three	 excellent	 new	 centres	 having	 opened	 in	 the	 past	 three	 months,	 a	 further	 centre	 under	 construction	 alongside	 Shrewsbury	 Town	 FC	 and	 a	 strong	 pipeline	 of	 future	 sites	 being	 progressed,	 our	 prospects	 look	 very	 encouraging.	 With	 further	 investment	 in	 the	 core	 business	 improving	 our	 profitability,	 and	 sponsorship	 and	 events	 revenue	 continuing	 to	 flourish,	 the	 Group	 is	 well	 placed	 	 to	 grow	 over	 the	 next	 financial	 period.	 	 The	 increasing	 popularity	 of	 5-a-side	 football	 and	 Powerleague’s	 prominent	 market	 position	 mean	 we	 are	 well	 placed	 to	 take	 full	 advantage	 of	 future	 opportunities.	 Euro	 2008	 will	 bring	 further	 prominence	 to	 the	 small-sided	 game	 as	 companies	 and	 brands	 strive	 to	 engage	 with	 the	 active	 participants.	 We	 are	 confident	 that	 the	 coming	 year	 will	 be	 another	 one	 of	 continued	 growth.
Sean Tracey
Chief	 Executive
18	 October	 2007	 Chief Executive’s Report – continued
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
 Free play
Committed to offering free play facilities to local schools and community groups
Charities supported in 2006/07
20
,
000
children per week play for free
We are pleased to 
support local community 
groups, schools and 
charities.
Over 20,000 children per 
week play on Powerleague 
pitches for free.
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Financial Review
Sheena Beckwith Finance Director
Revenue and Profit
At	 £23.0	 million,	 revenue	 in	 the	 year	 to	 30	 June	 2007	 increased	 by	 12%	 over	 the	 prior	 year.	 EBITDA	 before	 exceptional	 items	 increased	 by	 18%	 to	 £8.4	 million,	 as	 detailed	 below:
	 52	 weeks	 52 	 weeks
	 ended	 ended
	 30	 June	 1 	 July
	 2007	 2006
	 £000	 £000
Profit	 for	 the	 year	 	 3,659	 2,201
Taxation	 expense	 	 1,299	 1,034
Net	 interest	 expense		 1,104	 995
Exceptional	 items	 	 28	 702
Depreciation	 of	 tangible	 	 fixed	 assets	 	 2,279	 2,157
	 –––––––––––	––––––––––
EBITDA	 before	 	 exceptional	 items	 	 8,369	 7,089
	 –––––––––––	––––––––––
EBITDA	 margin	 before	 	 exceptional	 items	 	 36.3%	 34.6%
	 –––––––––––	––––––––––
The	 significant	 factors	 generating	 the	 improvement	 in	 EBITDA	 before	 exceptional	 items	 were	 the	 full-year	 contributions	 from	 the	 three	 new	 centres,	 5%	 growth	 in	 centre	 like	 for	 like	 revenue	 and	 41%	 growth	 in	 sponsorship	 and	 Interest
During	 the	 year,	 we	 made	 repayments	 of	 	 £2.0	 million	 on	 our	 term	 loans.	 In	 May	 2007,	 	 we	 refinanced	 our	 existing	 term	 loan,	 development	 loans	 and	 overdraft	 into	 one	 5-year	 term	 loan	 of	 £17.6m,	 which	 bears	 interest	 at	 1%	 over	 Bank	 of	 England	 base	 rate	 (‘base	 rate’),	 	 a	 reduction	 from	 the	 previous	 margin	 of	 1.15%.	 At	 the	 same	 time	 a	 new	 development	 facility	 of	 £4.5m	 was	 secured,	 which	 will	 convert	 into	 	 a	 5-year	 term	 loan	 once	 it	 is	 fully	 drawn	 and	 will	 also	 bear	 interest	 at	 1%	 over	 base	 rate.	 No	 sums	 had	 been	 drawn	 under	 this	 facility	 at	 30	 June	 2007.	 The	 average	 rate	 payable	 during	 the	 year	 was	 6.5%.
Earnings per Share
Basic	 and	 diluted	 earnings	 per	 share	 was	 4.47p	 for	 the	 current	 year	 compared	 with	 2.69p	 for	 2006.	 In	 addition	 to	 the	 change	 in	 EBITDA	 described	 above,	 earnings	 per	 share	 improved	 year	 on	 year	 due	 in	 part	 to	 the	 impairment	 of	 property,	 plant	 and	 equipment	 in	 2006	 and	 in	 part	 to	 the	 reversal	 in	 2007	 of	 deferred	 taxation	 timing	 differences	 which	 reduced	 the	 taxation	 charge.
Taxation
A	 detailed	 analysis	 of	 taxation	 is	 set	 out	 in	 note	 9	 to	 the	 financial	 statements.	 The	 effective	 corporation	 tax	 rate	 is	 26%.	 This	 is	 below	 the	 standard	 corporation	 tax	 rate	 of	 30%	 due	 to	 utilisation	 of	 a	 small	 loss	 brought	 forward	 from	 prior	 years	 together	 with	 a	 reduction	 in	 the	 prior	 year	 provision	 which	 has	 been	 credited	 to	 this	 financial	 year.	 The	 provision	 for	 deferred	 taxation	 is	 reduced	 in	 2007	 by	 a	 credit	 arising	 from	 the	 change	 in	 rate	 of	 provision	 from	 30%	 to	 28%	 in	 line	 with	 the	 reduction	 in	 the	 standard	 rate	 of	 UK	 corporation	 tax	 from	 April	 2008.	 The	 year	 to	 1	 July	 2006	 was	 the	 first	 in	 which	 the	 Group	 was	 tax	 paying.	 Corporation	 tax	 payable	 amounted	 to	 19%	 of	 reported	 profit	 as	 £1.3	 million	 in	 losses	 brought	 forward	 offset	 the	 tax	 charge.	 This	 is	 the	 first	 time	 the	 Group	 has	 reported	 under	 IFRS.	 We	 have	 chosen	 to	 adopt	 before	 we	 are	 required	 to	 do	 so	 in	 order	 to	 align	 ourselves	 with	 best	 practice	 as	 early	 as	 possible.	 events	 revenue.	 In	 addition,	 costs	 have	 been	 tightly	 controlled,	 with	 the	 staff	 cost	 to	 revenue	 ratio	 improving	 to	 21.7%	 (2006:	 22.3%)	 and	 an	 improvement	 in	 operating	 efficiency	 with	 central	 overheads	 remaining	 constant	 year	 on	 year.
International Financial  
Reporting Standards (IFRSs)
This	 is	 the	 first	 time	 the	 Group	 has	 reported	 under	 IFRS.	 We	 have	 chosen	 to	 adopt	 before	 we	 are	 required	 to	 do	 so	 in	 order	 to	 align	 ourselves	 with	 best	 practice	 as	 early	 as	 possible.	 The	 most	 significant	 changes	 arose	 in	 the	 area	 of	 property,	 plant	 and	 equipment,	 with	 a	 reduction	 in	 net	 assets	 to	 reflect	 the	 unwinding	 of	 revaluations	 from	 2004	 and	 2005	 together	 with	 the	 resultant	 reduction	 in	 depreciation	 charge	 to	 the	 income	 statement.	 An	 impairment	 review	 carried	 out	 after	 the	 reversal	 of	 the	 revaluation	 resulted	 in	 a	 net	 impairment	 credit	 in	 2005	 and	 	 a	 net	 impairment	 charge	 in	 2006.	 Net	 assets	 were	 increased	 by	 de-recognition	 of	 the	 negative	 goodwill	 arising	 on	 acquisitions	 in	 2005	 and	 	 2006	 and	 there	 has	 been	 a	 resultant	 reduction	 	 in	 the	 release	 of	 negative	 goodwill	 to	 the	 income	 statement.	 Our	 deferred	 taxation	 liability	 has	 been	 increased	 to	 reflect	 future	 taxation	 due	 on	 the	 fair	 value	 of	 assets	 acquired	 in	 2005	 and	 2006.
Full	 details	 of	 the	 changes	 are	 provided	 in	 note	 30.	 Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
 0 Cash Flow
Cash	 flow	 before	 taxation	 generated	 from	 operating	 activities	 has	 increased	 by	 £90,000	 year	 on	 year.	 Operating	 profit	 has	 increased	 by	 £1,832,000,	 of	 which	 £702,000	 relates	 to	 impairment	 in	 property,	 plant	 and	 equipment	 	 in	 2006.	 Receivables	 have	 increased	 year	 on	 year,	 partly	 due	 to	 the	 recognition	 of	 sums	 due	 for	 the	 sale	 of	 the	 Dunfermline	 centre	 (£283,000),	 	 which	 are	 payable	 over	 10	 years,	 and	 partly	 due	 to	 an	 increase	 in	 trade	 receivables	 at	 the	 year	 end	 due	 to	 the	 high	 level	 of	 corporate	 events	 activity.	 Net	 cash	 flow	 from	 operating	 activities,	 which	 takes	 into	 account	 taxation	 paid,	 has	 fallen	 by	 £1,392,000,	 with	 taxation	 paid	 in	 the	 year	 of	 £1,416,000	 compared	 with	 a	 refund	 in	 the	 prior	 year	 of	 £66,000.	 This	 was	 the	 first	 year	 in	 which	 the	 Group	 qualified	 for	 the	 requirement	 to	 pay	 taxation	 in	 quarterly	 instalments,	 two	 of	 which	 were	 made	 before	 the	 year	 end.	 The	 whole	 liability	 for	 the	 2006	 year	 end	 was	 also	 paid	 during	 2007.	 This	 differential	 will	 reduce	 next	 year.
Control Environment
The	 Group	 operates	 tight	 controls	 over	 its	 financial	 operations.	 Control	 over	 income	 at	 branch	 level	 is	 maintained	 with	 the	 assistance	 of	 our	 bespoke	 booking	 system,	 which,	 in	 addition	 to	 controlling	 pitch	 bookings,	 also	 encompasses	 a	 cash	 reconciliation	 facility.	 Control	 over	 expenditure	 is	 maintained	 partly	 through	 a	 low	 level	 of	 delegated	 authority	 and	 partly	 though	 our	 recently	 implemented	 bespoke	 purchase	 order	 system;	 this	 system	 is	 web	 based	 and	 permits	 full	 visibility	 from	 branch	 to	 director	 level.	 These	 systems	 are	 fully	 scalable	 and	 further	 investment	 will	 not	 be	 required	 as	 our	 number	 of	 centres	 increases.
Financial Risk Management
As	 Powerleague	 Group’s	 operations	 are	 all	 situated	 within	 the	 United	 Kingdom,	 	 the	 principal	 financial	 risk	 is	 associated	 with	 interest	 rates.	 The	 Group	 borrows	 in	 sterling	 at	 floating	 rates	 of	 interest.	 Further	 details	 of	 interest	 rates	 and	 debt	 are	 given	 in	 note	 18.	 Interest	 risk	 is	 mitigated	 by	 regularly	 comparing	 the	 likelihood	 and	 cost	 of	 interest	 rate	 rises	 against	 the	 cost	 of	 relevant	 financial	 instruments.	 The	 Group	 has	 had	 no	 currency	 dealings	 and	 therefore	 no	 foreign	 exchange	 exposures.	 The	 Group’s	 principal	 financial	 instruments	 comprise	 cash,	 short-term	 deposits	 and	 borrowings	 and	 longer	 term	 borrowing,	 together	 with	 accounts	 receivable	 and	 payable	 arising	 directly	 from	 operations.	 	 The	 main	 risk	 arising	 from	 these	 instruments	 is	 liquidity.	 To	 mitigate	 the	 liquidity	 risk,	 cash	 collection	 is	 rigorously	 enforced	 and	 the	 investment	 decision	 process	 includes	 careful	 consideration	 of	 level	 and	 timing	 of	 payback	 and	 overall	 rates	 of	 return.	 	 Going Concern
The	 Directors	 have	 a	 reasonable	 expectation	 that	 the	 Group	 has	 adequate	 resources	 to	 continue	 in	 operational	 existence	 for	 the	 foreseeable	 future.	 For	 this	 reason,	 they	 continue	 to	 adopt	 the	 going	 concern	 basis	 in	 preparing	 the	 financial	 statements.
Sheena Beckwith
Finance	 Director
18	 October	 2007
 
  Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Board of Directors
Claude Littner, MBA
Aged 58
Executive Chairman
Claude	 joined	 the	 Group	 as	 Chairman	 in	 June	 2001.	 He	 has	 had	 a	 successful	 career	 as	 a	 turnaround	 specialist.	 In	 the	 early	 1990s	 he	 was	 Chairman	 and	 Chief	 Executive	 of	 Amstrad	 International,	 Amstrad	 Spain	 and	 Dancall	 Telecom.	 From	 1993	 to	 1999	 he	 was	 Chief	 Executive	 of	 Tottenham	 Hotspur	 plc.	 and	 from	 2004	 to	 2007	 	 he	 was	 Chairman	 of	 ASCO	 plc.	 Claude	 was	 a	 	 non-executive	 director	 of	 Amstrad	 plc	 and	 is	 currently	 Chairman	 of	 Aspire	 Oil	 Services	 Ltd.,	 	 a	 non-executive	 director	 of	 Blacks	 Leisure	 Group	 plc,	 Norton	 Way	 Motors	 Ltd	 and	 Myeloma	 UK.		 Sean Tracey, BA Hons 
Aged 40
Chief Executive
Sean	 has	 worked	 in	 the	 leisure	 industry	 for	 	 15	 years	 and	 in	 5-a-side	 football	 since	 1994	 when	 he	 was	 recruited	 by	 Anchor	 International	 Limited	 to	 manage	 the	 Group’s	 most	 successful	 centre	 in	 Glasgow.	 Sean’s	 career	 progressed	 as	 he	 was	 promoted	 to	 New	 Site	 Openings	 Manager	 and	 subsequently	 National	 Sales	 Manager.	 In	 December	 1999,	 he	 was	 appointed	 Sales	 Director	 of	 the	 Group	 and	 Managing	 Director	 in	 September	 2002.	 Sheena Beckwith, CA 
Aged 42
Finance Director
Following	 her	 qualification	 as	 a	 Chartered	 Accountant	 with	 Coopers	 &	 Lybrand	 (Glasgow),	 Sheena	 joined	 BAA	 plc	 as	 Finance	 Manager	 of	 Prestwick	 Airport.	 After	 the	 airport’s	 sale	 into	 private	 ownership	 in	 1992,	 Sheena	 was	 promoted	 to	 Finance	 Director	 of	 Prestwick	 Airport	 and	 remained	 in	 that	 position	 until	 2002.	 During	 that	 time,	 she	 was	 responsible	 for	 handling	 the	 transaction	 process	 of	 the	 airport	 sale,	 first	 to	 Stagecoach	 plc	 in	 1998	 and	 then	 to	 Infratil	 (NZ)	 plc	 in	 2001.	 Sheena	 joined	 the	 Group	 in	 June	 2002.	 Jeremy Hall, BSc (Hons) 
Aged 55
Development Director
Jeremy	 has	 over	 37	 years’	 experience	 in	 the	 leisure	 industry.	 He	 was	 a	 founding	 Director	 of	 Powerplay	 Supersoccer	 Limited,	 the	 company	 which	 merged	 in	 December	 1999	 to	 form	 Powerleague	 Group	 Ltd.	 Prior	 to	 joining	 Powerleague,	 Jeremy	 held	 a	 number	 of	 senior	 management	 positions	 within	 Park	 Hall	 Leisure	 plc	 and	 Themes	 International	 plc,	 primarily	 focusing	 on	 property	 and	 the	 development	 and	 roll-out	 of	 leisure	 operations.	 Andrew Mallett, FCA 
Aged 57 
Non-Executive Director
Andrew	 qualified	 as	 a	 Chartered	 Accountant	 	 with	 Price	 Waterhouse	 (London).	 He	 has	 operated	 at	 board	 level	 in	 a	 number	 of	 private	 and	 public	 companies	 in	 various	 sectors,	 including	 leisure	 and	 retail,	 undertaking	 strategic	 and	 turnaround	 work.	 Andrew	 was	 Deputy	 Chairman	 of	 Asco	 plc	 from	 2004	 to	 2007	 and	 is	 currently	 a	 Director	 	 of	 Aspire	 Oil	 Services	 Limited.
Simon Bentley, FCA 
Aged 52
Non-Executive Director
Simon	 qualified	 as	 a	 Chartered	 Accountant	 with	 BDO	 Stoy	 Hayward	 (London)	 in	 1980	 before	 joining	 Landau	 Morley	 where	 he	 was	 promoted	 to	 partner	 later	 that	 year.	 From	 1989	 to	 2002	 Simon	 was	 Chairman	 and	 Chief	 Executive	 of	 Blacks	 Leisure	 Group	 plc.	 Simon	 is	 currently	 interim	 Chairman	 of	 Sports	 Direct	 International	 plc,	 Deputy	 Chairman	 of	 Mishcon	 de	 Reya	 and	 The	 Leadership	 Trust.	 He	 also	 chairs	 a	 number	 	 of	 other	 companies	 including	 Umberto	 Giannini,	 USA	 PRO	 and	 Maypole	 Group	 plc.	 Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
 2 As an AIM listed company, Powerleague Group plc is not subject to the 
requirements of the Combined Code on corporate governance.
However, the Group is committed to high standards of corporate 
governance. This statement describes how the principles of corporate 
governance are applied to the Group.
The Board of Directors
The Board meets regularly (at least six times per year) to consider all aspects 
of the Group’s activities. To enable the Board to discharge its duties,  
all Directors receive appropriate and timely information. Briefing papers 
are distributed to all Directors in advance of Board meetings. There are 
delegated authorities in place to Committees of the Board for the specific 
purposes of determining Directors’ remuneration, matters concerning 
audit and the appointment of Directors. Details of these Committees are 
given below. The day-to-day management of the Group is delegated by the 
Chairman to the Chief Executive and Finance Director, who together form 
the Executive Committee.
The Audit Committee
The Audit Committee meets at least twice a year to review and consider the 
system of internal controls within the Group. The Committee also reviews 
financial statements to be published externally before their submission to 
the Board and authorises changes in accounting policies. The Committee 
reviews the remuneration and terms of reference of the external auditors and 
considers their independence. The Committee meets at least annually with 
the external auditors without management present and has unrestricted 
access to the external auditors throughout the year.
The Audit Committee is chaired by Andrew Mallett, with Simon Bentley as 
the other member of the Committee.
The Remuneration Committee
The Remuneration Committee meets at least annually and is responsible 
for determining the remuneration of the Executive Directors and senior 
management. The report on Directors’ remuneration on pages 18 and 
19 gives details of the Group’s policy on executive remuneration and 
of individual Director’s remuneration packages. The Chairman attends 
Remuneration Committee meetings by invitation. No Executive Director is 
present during any meeting of the Remuneration Committee at which his  
or her own remuneration is discussed. The fees of the Non-Executive 
Directors are a matter for the Board as a whole.
The Remuneration Committee is chaired by Simon Bentley with Andrew 
Mallett as the other member of the Committee.
The Nomination Committee
The Nomination Committee comprises the whole Board, who together 
consider the appointment of Directors. At each Annual General Meeting,  
one third of eligible Directors is required to retire.
Relations with Shareholders
Communication with shareholders is given high priority. The Chief 
Executive’s Report on pages 4 to 8 includes a detailed review of the business 
and future developments of the Group. There is regular dialogue with 
institutional investors, including presentations after the Group’s preliminary 
announcement of the year end results and at the half year.
Key information is posted on the Investors’ website at  
www.powerleagueplc.com.
The Board uses the Annual General Meeting to communicate with  
private and institutional investors and welcomes their participation.  
Details of resolutions to be proposed at the Annual General Meeting  
on 26 November 2007 can be found in the Notice of Annual General 
Meeting on pages 54 to 59.
 
Internal Controls
The Directors acknowledge that they are responsible for reviewing the 
effectiveness of the Group’s system of internal controls, including operational 
compliance and risk assessment. There is an on-going process of identifying, 
evaluating and managing significant risks faced by the Group. The Group’s 
system of internal controls is designed to provide reasonable, although not 
absolute, assurance against material misstatement or loss.
Set out below are the key internal control procedures adopted by the Group:
•	 Management 	 structure
  There is in place a clearly defined organisational structure specifying 
reporting lines. Duties and responsibilities are internally divided in a 
manner which is designed to promote internal verification and review. 
Authority to make commitments is delegated by the Chairman to 
Executive Directors and senior managers within set limits. Operational 
and financial controls and procedures are promulgated throughout the 
Group via the Operations Manual, which is continually reviewed  
for relevant application of current legislation and good practice.
•	 Identification 	 and	 evaluation	 of	 business	 risks
  The major financial, commercial, legal and operational risks within 
the Group are considered as part of the reporting process to the 
Board. Risk assessment has been undertaken for operational and 
financial procedures and these are reviewed as part of the day-to-day 
management of the business. Consideration is given to all aspects of 
insurance risk in order to minimise exposure of the Group.
•	 Information 	 and	 financial	 reporting	 systems
  The Group’s comprehensive planning and financial reporting  
procedures include detailed budgets, which are set each year for the 
forthcoming 12-month period, and regular longer term forecasting.  
The actual performance of the business is measured and evaluated 
against the annual budget as well as against prior year performance.  
A number of key performance indicators are in place, which effectively 
measure aspects of the business. A detailed report is provided to the 
Board each month, highlighting any significant variances identified.  
Updated forecasts for the year are prepared in the second half of each  
year and key risks are evaluated on a rolling basis.
•	 Investment 	 appraisal
  The budgetary process and authorisation levels regulate capital 
expenditure. For all major projects, an appraisal paper is prepared 
for the Board for approval. The progress of each project is monitored 
continuously for costs and timescales and a report prepared for the 
Board at regular intervals.
Corporate Governance
13
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable United Kingdom law. The directors 
have elected to apply International Financial Reporting Standards (IFRSs) as adopted by the European Union.
The Directors are required to prepare financial statements for each financial year which present fairly the financial position of the Company and the Group and 
the financial performance and cash flows of the Company and the Group for that period. In preparing those financial statements the Directors are required to
 Select suitable accounting policies in accordance with IAS 8: ‘Accounting Policies, Changes in Accounting Estimates and Errors’ and then apply them 
consistently;
Present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
 Provide additional disclosures when compliance with the specific requirements in IFRSs is insufficient to enable users to understand the impact  
of particular transactions, other events and conditions on financial position and financial performance; and
State that the Group has complied with IFRSs, subject to any material departures disclosed and explained in the financial statements.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the 
Company and the Group and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for 
safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other 
irregularities.
•
•
•
•
Statement of Directors’ Responsibilities  
in Respect of the Financial Statements
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
14 The Directors present their report and the Group financial statements for the year ended 30 June 2007.
Principal activities
The principal activity of the Group is to develop and manage 5-a-side football centres. At the year end, the Group operated from 34 centres throughout the 
UK, all but one of which are freehold or long leasehold.
Results and dividends
The Group profit for the year, before taxation, amounted to £4,958,000 (2006: £3,398,000). After taxation the profit amounted to £3,659,000 (2006: £2,201,000) 
which has been transferred to reserves. The Directors recommend the payment of an ordinary dividend of 1.1 pence per ordinary 10p share. 
Review of business and future developments
A review of the business and the future developments of the Group is presented in the Chairman’s Statement on page 2 and in the Chief Executive’s Report 
and Financial Review on pages 4 to 11.
Directors and their interests
The Directors who have served during the year are:
C M Littner
S P Tracey
J C Hall
S M Beckwith
A H Mallett
S A Bentley
The interests of the Directors in the share capital of the company are summarised below:
	 	 at	 30	 June	 2007	 at	 1	 July	 2006
Ordinary	 shares	 of	 10	 pence	 each	 	 £’000	 	 £’000	 C M Littner (*)     19,375,000 19,375,000
S P Tracey     9,687,499 9,687,499
J C Hall     1,486,538 1,562,499
S M Beckwith     624,998 624,998
A H Mallett     59,090 34,090
S A Bentley     10,000 10,000
     ––––––––––– –––––––––––
* of which 5,166,667 are held in a family trust
Interests	 in	 options
The company has a share option scheme by which Directors and other senior employees are able to subscribe for ordinary shares in the company. The 
interests of the Directors were as follows:
	 At	 1	 July	 2006	 Granted 	 during	 the	 year	 At 	 30	 June	 2007
	 No.	 No.	 No.
S M Beckwith   – 70,000 70,000
   ––––––––––– ––––––––––– –––––––––––
The exercise price of the options is £0.69 and they can be exercised between 14 November 2009 and 13 November 2017. The options may only be exercised  
if the company achieves growth in EBITDA of 3% in each year prior to the options being exercised. 
The market price of the company’s shares on 30 June 2007 was 94 pence per share. The highest and lowest market prices during the year for each share under 
option that is unexpired at the end of the year are 95 pence and 64 pence respectively.
No other Directors have interests in options and the interests of the Directors in share options have not changed since the year end.
Directors’ Report
15
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Financial risk management
A description of the Group’s consideration of financial risk management is given in the Chief Executive’s Report and Financial Review on pages 4 to 11.
Employees with disabilities
Full and fair consideration is given to applications for employment made by people with disabilities, having regard to their particular aptitudes and abilities. 
It is the Group’s policy to retrain, whenever possible, employees who become disabled to enable them to perform work identified as appropriate to their 
aptitudes and abilities.
Employee consultation
The Group recognises the significant contribution to the business of the commitment and quality of our employees. The Group’s policy is to consult and 
discuss with employees matters likely to affect their interests. This is generally achieved through briefing of local managers.
Creditor payment policy
It is the Group’s policy that payments to suppliers are made in accordance with the terms and conditions agreed between the Group and its suppliers, 
providing all trading terms are met. Normally this results in payment being made during the month after receipt of an invoice. 
The Company had no trade creditors at the year end.
Substantial shareholdings
At 19 September 2007 the Board had been notified of the following interests representing 3% or more of the Company’s issued share capital:
Ordinary	 shares	 of	 10	 pence	 each	 	 No. 	 of	 shares	 (000)	 %	 holding
C M Littner    	 19,375 23.68%
Fidelity Investments    	 9,985 12.20%
S P Tracey     9,687 11.84%
F&C Asset Management    	 5,584 6.83%
Artemis Investment Management    	 5,043 6.16%
Schroder Investment Management    	 4,336 5.30%
Henderson Global Investors     3,410 4.17%
Rensburg Sheppards Investment Management    	 2,750 3.36%
     ––––––––––– –––––––––––
Special business at the Annual General Meeting
At the Annual General Meeting on 26 November 2007, resolution 1 is termed special business, resolutions 2 to 8 are termed ordinary business, whilst 
resolutions 9 and 10 will be special business. The special business covers the ratification of the 2006 dividend, Directors’ authority to allot shares and the 
partial dis-application of pre-emption rights, as explained below. The resolutions are set out in the Notice of Annual General Meeting on page 54 to 59.
Resolution 1 is to ratify the payment of the 2006 final dividend with reference to the relevant accounts. The annual accounts of the Company at 1 July 2006 
showed distributable reserves of £251,000. On 28 September 2006, Powerleague Fives Limited paid a dividend to the Company of £614,000 on the basis of 
which the Company in general meeting declared a dividend on 20 November 2006 of £614,000 and this was paid to the shareholders in December 2006.  
It has recently been brought to the attention of the Company that interim accounts of the Company (the ‘relevant accounts’) should have been prepared as 
at 30 September 2006, prior to the declaration and payment of the Company’s dividend, the purpose of such interim accounts being to formally show the 
payment of the dividend of £614,000 by Powerleague Fives Limited to the Company. The appropriate procedure was therefore not fully followed.  
This is considered to be a technicality as the Company would have been shown to have sufficient distributable reserves had interim accounts been  
prepared at September 2006.
Resolution 9 grants the Directors authority to allot shares in the capital of the Company up to an aggregate nominal value of £3,000,000, representing 
approximately one third of the nominal value of the issued ordinary share capital of the Company. The Directors do not have any present intention of 
exercising this authority but they consider it desirable that the specified amount of authorised but unissued share capital is available for issue so that they  
can more readily take advantage of possible opportunities. Unless renewed, revoked, varied or extended, this authority will expire at the end of 15 months 
from the date of passing of the resolution or at the conclusion of the next Annual General Meeting of the Company, whichever is the earlier.
Directors’ Report – continued
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
16 Resolution 10 empowers the Directors to allot equity shares for cash other than in accordance with the statutory pre-emption rights of members  
(which require a company to offer all allotments of equity securities for cash and all sales of treasury shares first to existing shareholders in proportion to 
their holdings) in connection with rights issues and other pre-emptive offers and otherwise up to a maximum nominal amount of £500,000, representing 
approximately 6% of the nominal value of the issued share capital of the Company. Unless renewed, revoked, varied or extended, this authority will expire 
at the end of 15 months from the date of passing of the resolution or at the conclusion of the next Annual General Meeting of the Company, whichever is 
the earlier. The Directors consider that the power proposed to be granted by Resolution 8 is necessary to retain flexibility, although they currently have no 
intention of exercising such power.
The Directors consider the passing of these resolutions to be in the best interests of the shareholders.
Directors’ statement as to disclosure of information to auditors
The Directors who were members of the board at the time of approving the Directors’ report are listed on page 12.
Having made enquiries of fellow Directors and of the Group’s auditors, each of these Directors confirms that: 
to the best of each Director’s knowledge and belief, there is no information relevant to the preparation of their report of which the Group’s auditors are 
unaware; and 
each Director has taken all the steps a Director might reasonably be expected to have taken to be aware of relevant audit information and to establish that 
the Group’s auditors are aware of that information.
Auditors
A resolution to reappoint Ernst & Young LLP as auditors will be put to the members at the Annual General Meeting.  
On behalf of the board
Sheena Beckwith
Company Secretary
18 October 2007
•
•
17
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 As an AIM listed company, Powerleague Group plc is not required to comply with Schedule 7A of the Companies Act. 
The Remuneration Committee is chaired by Simon Bentley with Andrew Mallett as the other member of the Committee. The Committee makes 
recommendations to the Board on an overall remuneration package for the Executive Directors and other senior management.
Remuneration policy
The Group’s policy on remuneration for 2007 and subsequent financial years is that the overall remuneration package should be sufficiently competitive to 
attract, retain and motivate high quality individuals capable of achieving the Group’s objectives and thereby enhance shareholder value. The package consists 
of basic salary, benefits, performance-related bonuses, money purchase pension and share options.
Immediately prior to admission to the Alternative Investment Market, the Company and the Directors entered into new service agreements, the terms of 
which are outlined below.
	 	 Date	 of	 contract	 Notice 	 period	 (months)
Executive	 Directors
C M Littner    	 23	 May	 2005 6
S P Tracey     23	 May	 2005 6
S M Beckwith    	 23	 May	 2005 6
J C Hall    	 23	 May	 2005 6
     –––––––––––––– ––––––––––––––
Non-Executive	 Directors
AH Mallett    	 23	 May	 2005 2
S A Bentley     23	 May	 2005 2
     –––––––––––––– ––––––––––––––
Term of contract
The Executive Directors’ contracts do not have a fixed term. The Non-Executive Directors have a fixed term of one year, which is renewable on two months’ 
prior notice.
Bonuses
The Executive Directors are entitled to participate in any bonus scheme applicable as may be determined from time to time by the Company.
Pensions
The Executive Directors are entitled to pension payments equivalent to 10% of basic salary into a personal pension plan of the Director’s choice. C M Littner 
receives this amount as salary in lieu of pension contributions.
Fees
Each Non-Executive Director is entitled to receive £22,500 per annum in fees.
 
At the Annual General Meeting on 26 November 2007 Jeremy Hall and Claude Littner will retire and, being eligible, offer themselves for re-election. 
Biographical details of all Directors can be found on page 12.
Remuneration Report
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
18 Directors’ remuneration
	 	 Basic	 salary	 	 Pension	 	 Total	 Total
	 	 and	 fees	 Benefits 	 (i)	 contribution	 2007	 2006	 (ii)
	 	 £	 £	 £	 £	 £
Executive	 Directors	     
C M Littner  110,000 – – 110,000 125,897
S P Tracey  115,000 1,297 11,500 127,797 151,143
S M Beckwith  100,000 1,705 10,000 111,705 109,403
J C Hall  80,000 2,232 8,000 90,232 90,149
      
Non-Executive	 Directors      
S A Bentley  22,500 – – 22,500 20,000
A H Mallett  22,500 – – 22,500 20,000
  –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– 
(i)  the remuneration package of each Executive Director includes the provision of private health insurance.
(ii) remuneration for the prior year included pension contributions as follows:
S P Tracey  £10,000
S M Beckwith £8,000
J C Hall  £8,000 
By order of the Board
Sheena	 Beckwith
Company Secretary
18 October 2007
19
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 We have audited the Group and Company financial statements (the ‘financial statements’) of Powerleague Group plc for the year ended 30 June 2007 which 
comprise the Group Income Statement, the Group Statement of Recognised Income and Expense, the Group Balance Sheet, the Group Cash Flow Statement, 
the Company Balance Sheet, the Company Statement of Recognised Income and Expense, the Company Cash Flow Statement and the related notes 1 to 30. 
These financial statements have been prepared under the accounting policies set out therein.
This report is made solely to the company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work has been 
undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report and for no other purpose. 
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, 
for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report, the Directors’ Remuneration Report and the financial statements in accordance with applicable 
United Kingdom law and International Financial Reporting Standards (IFRSs) as adopted by the European Union are set out in the Statement of Directors’ 
Responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing 
(UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements have been properly 
prepared in accordance with the Companies Act. We also report to you whether in our opinion the information given in the Directors’ report is consistent with 
the financial statements. The information given in the Directors’ report includes that specific information presented in the Chairman’s Statement,  
Chief Executive’s Report and Financial Review that is cross-referred from the Review of Business and future developments section of the Directors’ report. 
In addition we report to you if, in our opinion, the company has not kept proper accounting records, if we have not received all the information and 
explanations we require for our audit, or if information specified by law regarding Directors’ remuneration and other transactions is not disclosed.
We read other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. The other information 
comprises Highlights, Chairman’s Statement, Chief Executive’s Report, Financial Review, Corporate Governance, Directors’ Report, Remuneration Report, 
Notice of AGM and Advisers. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with 
the financial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes 
examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant 
estimates and judgments made by the Directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the 
Group’s and company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with 
sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other 
irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion:
the group financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union, of the state of the group’s affairs  
as at 30 June 2007 and of its profit for the year then ended;
the parent company financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union as applied in accordance 
with the provisions of the Companies Act 1985, of the state of the parent company’s affairs as at 30 June 2007;
the financial statements have been properly prepared in accordance with the Companies Act 1985; and
the information given in the directors’ report is consistent with the financial statements.
Ernst & Young LLP
Registered auditor          
Glasgow
19 October 2007
•
•
•
•
Independent Auditors’ Report
to the Members of Powerleague Group plc
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
20 Group Income Statement
for the year ended 30 June 2007 
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 Notes	 £’000	 	 £’000	 Revenue 	 23,030	 20,488
Cost of sales 	 (3,946)	 (3,640)
  ––––––––––– –––––––––––
Gross	 profit 	 19,084	 16,848
  ––––––––––– –––––––––––
Administrative expenses 	 (12,994)	 (11,916)
Exceptional items 7	 (28)	 (702)
  ––––––––––– –––––––––––
Total administration expenses 	 (13,022)	 (12,618)
  ––––––––––– –––––––––––
Operating	 profit	 5	 6,062	 4,230
Analysed as:
Operating profit excluding exceptional items 	 6,090	 4,932
Exceptional items 7	 (28)	 (702)
Finance revenue – bank interest 	 6	 – 
Finance costs 8 (1,110) (995)
  ––––––––––– –––––––––––
Profit	 for	 the	 year	 before	 tax 	 4,958	 3,235
Tax expense 9	 (1,299)	 (1,034) 
  ––––––––––– –––––––––––
Profit	 for	 the	 year 	 3,659	 2,201
  ––––––––––– –––––––––––
Earnings	 per	 ordinary	 share 	 	 
– basic and diluted 10 4.47 2.69
– basic and diluted, adjusted 10	 4.51	 3.82
  ––––––––––– –––––––––––
Group Statement of Recognised  
Income and Expense
for the year ended 30 June 2007 
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 Notes	 £’000	 	 £’000	 Profit for the year 	 3,659	 2,201
  ––––––––––– –––––––––––
Total recognised income and expense for the year attributable to equity holders of the parent 	 3,659	 2,201
  ––––––––––– –––––––––––
21
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Group Balance Sheet
as at 30 June 2007
	 	 As	 at	 	 As	 at
	 	 	 30	 June	 2007	 1	 July	 2006
	 Notes	 £’000	 	 £’000	 Non-current	 assets
Property, plant and equipment 12	 43,940	 41,429
Intangible assets 13	 258	 258
Other receivables 14	 302	 200
  ––––––––––– –––––––––––
 	 44,500	 41,887
  ––––––––––– –––––––––––
Current	 assets
Inventories 	 158	 174
Trade and other receivables 14	 1,516	 1,092
Cash and cash equivalents 15	 549	 516
  ––––––––––– –––––––––––
 	 2,223	 1,782
  ––––––––––– –––––––––––
Assets	 in	 disposal	 group	 held	 for	 sale 16	 –	 283
  ––––––––––– –––––––––––
Total	 assets	 	 46,723	 43,952
Current	 liabilities 	 	 
Trade and other payables 17 3,310 3,496
Income tax payable 	 571	 715
Borrowings  18	 4,991	 3,769
  ––––––––––– –––––––––––
 	 8,872	 7,980
  ––––––––––– –––––––––––
Non-current	 liabilities
Other payables 17	 329	 422
Borrowings 18	 14,060	 15,138
Deferred tax liabilities 21	 4,164	 4,137
  ––––––––––– –––––––––––
 	 18,553	 19,697
Liabilities	 in	 disposal	 group	 held	 for	 sale 16	 –	 35
  ––––––––––– –––––––––––
Total	 liabilities	 	 27,425	 27,712
  ––––––––––– –––––––––––
Net	 assets	 	 19,298	 16,240
  ––––––––––– –––––––––––
Equity
Called up share capital 22	 8,182	 8,182
Share premium account 23	 7,287	 7,287
Merger reserve 23	 (4,999)	 (4,999)
Retained earnings 23	 8,828	 5,770
  ––––––––––– –––––––––––
Total	 equity 	 19,298	 16,240 
  ––––––––––– –––––––––––
These financial statements were approved by the Board of Directors on 18 October 2007.
Sheena Beckwith
Director
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
22 Group Cash Flow Statement
For the year ended 30 June 2007
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 Notes	 £’000	 	 £’000	 Net	 cash	 flow	 from	 operating	 activities 24	 6,183	 7,575
  ––––––––––– –––––––––––
Cash	 flows	 from	 investing	 activities
Purchase of property, plant and equipment 	 (4,790)	 (6,669)
Sale of property, plant and equipment 	 283	 –
Acquisition of subsidiary undertakings  	 –	 (981)
Cash acquired with subsidiary undertaking 	 –	 8
Interest received 	 6	 –
  ––––––––––– –––––––––––
Net	 cash	 flow	 from	 investing	 activities 	 (4,501)	 (7,642)
  ––––––––––– –––––––––––
Cash	 flows	 from	 financing	 activities 	 	 Interest paid 	 (1,170)	 (998)
Dividends paid to shareholders 	 (614)	 –
New borrowings 	 17,633	 4,516
Repayment of borrowings 	 (17,860)	 (2,995)
  ––––––––––– –––––––––––
Net	 cash	 flow	 from	 financing	 activities 	 (2,011)	 523
  ––––––––––– –––––––––––
Net	 (decrease)/increase	 in	 cash	 and	 cash	 equivalents 	 (329)	 456
Cash and cash equivalents at beginning of year 15	 (598)	 (1,054)
  ––––––––––– –––––––––––
Cash	 and	 cash	 equivalents	 at	 end	 of	 year 15	 (927)	 (598)
  ––––––––––– –––––––––––
23
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Company Balance Sheet
as at 30 June 2007
	 	 As	 at	 	 As	 at
	 	 	 30	 June	 2007	 1	 July	 2006
	 Notes	 £’000	 	 £’000	 Non-current	 assets
Investments 29	 22,000	 22,000
  ––––––––––– –––––––––––
 	 22,000	 22,000
  ––––––––––– –––––––––––
Current	 assets
Trade and other receivables 14	 11,190	 10,866
  ––––––––––– –––––––––––
Total	 assets	 	 33,190	 32,866
Current	 liabilities
Income tax payable 	 157	 172
  ––––––––––– –––––––––––
Total	 liabilities	 	 157	 172
  ––––––––––– –––––––––––
Net	 assets	 	 33,033	 32,694
  ––––––––––– –––––––––––
Represented by:
Equity
Called up share capital 22	 8,182	 8,182
Share premium account 23	 7,287	 7,287
Merger reserve 23	 16,974	 16,974
Retained earnings 23	 590	 251
  ––––––––––– –––––––––––
Total	 equity 	 33,033	 32,694
  ––––––––––– –––––––––––
Sheena Beckwith
Director
18 October 2007
Company Statement of Recognised  
Income and Expense
for the year ended 30 June 2007 
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 Notes	 £’000	 	 £’000	 Profit for the year 	 953	 295
  ––––––––––– –––––––––––
Total recognised income and expense for the year attributable to equity holders of the parent 	 953	 295
  ––––––––––– –––––––––––
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
24 Company Cash Flow Statement
for the year ended 30 June 2007 
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 Notes	 £’000	 	 £’000	 Net	 cash	 flow	 from	 operating	 activities 24	 (294)	 (131)
  ––––––––––– –––––––––––
Cash	 flows	 from	 investing	 activities 
Interest received 	 618	 598
Dividends received 	 614	 –
Amounts advanced to subsidiary 	 (324)	 (467)
  ––––––––––– –––––––––––
Net	 cash	 flow	 from	 investing	 activities 	 908	 131
  ––––––––––– –––––––––––
Cash	 flows	 from	 financing	 activities 	 	 Dividends paid to shareholders 	 (614)	 –
  ––––––––––– –––––––––––
Net	 increase	 in	 cash	 and	 cash	 equivalents 	 –	 –
Cash and cash equivalents at beginning of year 	 –	 –
  ––––––––––– –––––––––––
Cash	 and	 cash	 equivalents	 at	 end	 of	 year 	 –	 –
  ––––––––––– –––––––––––
25
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 1 General information
The financial information comprises the financial information of Powerleague Group plc (the ‘Group’) for a period of fifty-two weeks to 30 June 2007 (‘2007’). 
The previous period was fifty-two weeks to 1 July 2006 (‘2006’). Powerleague Group plc is an AIM listed company incorporated in the United Kingdom under 
the Companies Act 1985, and its wholly owned subsidiaries, as detailed in note 29 (‘the Group’). 
The principal activity of the Group is to develop and manage 5-a-side football centres. At the year end, the Group operated from 34 centres throughout the 
UK, all but one of which are freehold or long leasehold.
The consolidated financial statements of the Group for the year ended 30 June 2007 were authorised for issue in accordance with a resolution of the Directors 
on 18 October 2007.
2 Accounting policies
Basis of preparation
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (‘IFRS’) as adopted by the European 
Union as they apply to the financial statements of the Group for the year ended 30 June 2007 and applied in accordance with the Companies Act 1985.  
The accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended 30 June 2007.
For all periods up to and including the year ended 1 July 2006, the Group prepared its financial statements in accordance with United Kingdom generally 
accepted accounting practice (UK GAAP). These financial statements, for the year ended 30 June 2007, are the first the Group has elected to prepare in 
accordance with International Financial Reporting Standards (IFRSs). Refer to note 30 for further details of the transition to IFRS.
The Group undertook a group reorganisation in May 2005. This arrangement resulted in the addition of a new parent company to the Group. The Group has 
chosen to take the IFRS 1 First Time Adoption exemption from restating business combinations before the date of transition to IFRS and, as such, the Group 
has not restated this business combination under IFRS but continue to apply UK GAAP merger accounting. Further details of the IFRS exemption are included 
within note 30.
The consolidated financial information has been prepared on a going concern basis under the historical cost convention. The Group financial information is 
presented in pounds sterling and all values are rounded to the nearest thousand (£’000) unless otherwise indicated.
The following standards and interpretations have not been applied in the consolidated financial information as, although in issue at the date of preparation, 
they were not effective for the periods covered by this consolidated financial information:
  Effective date
IFRS 7  ‘Financial Instruments: Disclosures’; and the related amendment to IAS 1 on capital disclosures 1 January 2007
IFRS 8  ‘Operating Segments’ 1 January 2009
IFRIC 10  ‘Interim reporting and impairment’ 1 November 2006
IFRIC 11  ‘IFRS 2 – Group and Treasury Share Transactions’ 1 March 2007
IFRIC 12  ‘Service Concession Arrangements’ 1 January 2008
IFRIC 13  ‘Customer Loyalty Programmes’ 1 July 2008
IFRIC 14  ‘The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their interaction’ 1 January 2008
The Directors anticipate that the adoption of these standards and interpretations on or after 1 July 2007 will have no material impact on the financial 
statements of the Group except for the additional disclosures on capital and financial instruments.
Basis of consolidation
The consolidated financial information consolidates the financial information of Powerleague Group plc and its subsidiary undertakings drawn up to  
30 June 2007. The financial statements, which have been prepared using UK GAAP merger accounting principles as described in the basis of preparation, 
present the results of the Group as if Powerleague Group plc had been in existence and had owned Powerleague Fives Ltd and its subsidiaries for the whole 
period under review.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until  
the date that such control ceases. All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions 
that are recognised in assets, are eliminated in full.
In the company’s financial statements investments in subsidiary undertakings are stated at cost unless, in the opinion of the Directors, there has been  
an impairment in their value, in which case they are immediately written down to their estimated recoverable amount.
Notes to the Financial Information
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
26 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the 
normal course of business, net of discounts, VAT and other sales-related taxes. Income arising directly from the use of the operating facilities is recognised 
in the income statement in the period in which the use of the facilities takes place. Where deposits are received, these are held on the balance sheet and 
released to profit when the event or period of use is complete. Sponsorship income is recognised in the income statement over the period of the sponsorship 
contract and to offset sponsorship-related expenditure.
Goodwill
Business combinations on or after 3 July 2005 are accounted for under IFRS 3 using the purchase method. Any excess of the cost of the business combination 
over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities is recognised in the balance sheet as goodwill and is 
not amortised. To the extent that the net fair value of the acquired entity’s identifiable assets, liabilities and contingent liabilities is greater than the cost of the 
investment, a gain is recognised immediately in the income statement. 
Property, plant and equipment
Property, plant and equipment are stated at cost, less accumulated depreciation and any accumulated impairment in value. Such cost includes the cost of 
replacing part of the plant and equipment when that cost is incurred, if the recognition criteria are met. Borrowing costs directly attributable to assets under 
construction are capitalised as incurred.
Depreciation is calculated to write off the cost less estimated residual value of all tangible assets over their expected useful economic life. The rates generally 
applicable are:
Head office property 25 years
Operating facilities excluding pitch surfaces 50 years or length of lease remaining
Pitch surfaces lesser of 10 years and the remaining useful economic life
Fixtures, fittings and equipment 10 years
Computer equipment 3 years
Impairment of tangible assets
At each balance sheet date, the Group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have 
suffered an impairment loss. If any such indication exists, or when annual impairment testing for an asset is required, the recoverable amount of the asset is 
estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other 
assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to 
their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for 
which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset  
(or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately. 
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its 
recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment 
loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised as income immediately. 
Assets/liabilities included in disposal group held for sale
Assets or liabilities are classified as non-current assets or liabilities held for sale when the asset or liability is available for immediate sale in its present condition 
subject only to terms that are usual and customary for sales of such assets, liability or disposal group and a sale is highly probable. Non-current assets or 
liabilities held for sale are carried at the lower of their carrying amount and fair value less costs to sell. 
Inventories
Inventories are stated at the lower of cost and net realisable value. Net realisable value represents the estimated selling price less all estimated costs of 
completion and selling costs.
27
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notes to the Financial Information – continued
2 Accounting policies – continued
Trade and other receivables
The only financial assets held are trade and other receivables. Trade receivables, which generally have 30-90 day terms, are recognised and carried at the lower 
of their original invoiced value and recoverable amount. Where the time value of money is material, receivables are carried at amortised cost. Provision is 
made when there is objective evidence that the Group will not be able to recover balances in full. Balances are written off when the probability of recovery  
is assessed as being remote.
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand. For the purpose of the Consolidated Cash Flow Statement, cash and cash 
equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. 
Overdrafts
Bank overdrafts are shown within borrowings in current financial liabilities. Bank overdrafts form part of net cash and cash equivalents for the purpose of the 
Consolidated Cash Flow Statement.
Leases
Bank overdrafts are shown within borrowings in current financial liabilities. Bank overdrafts form part of net cash and cash equivalents for the purpose of the 
Consolidated Cash Flow Statement.
Taxation
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws 
that are enacted or substantively enacted by the balance sheet date.
Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the 
financial statements, with the following exceptions:
where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination 
that at the time of the transaction affects neither accounting nor taxable profit or loss;
in respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the temporary differences can 
be controlled and it is probable that the temporary differences will not reverse in the foreseeable future; and
deferred income tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the deductible temporary 
differences, carried forward tax credits or tax losses can be utilised.
Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the related asset is realised 
or liability is settled, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Income tax is charged or credited directly to equity if it relates to items that are credited or charged to equity. Otherwise income tax is recognised in the 
income statement.
Trade and other payables
Trade payables are recognised and carried at their original invoiced value. Where the time value of money is material, payables are carried at amortised cost. 
Deferred grants
Deferred grants in respect of capital expenditure are credited to a deferred income account and are released to the profit and loss account by equal annual 
instalments over the expected useful economic lives of the relevant assets.
Interest bearing loans and borrowing costs
Obligations for loans and borrowings are recognised when the Group becomes party to the related contracts and are measured initially at fair value less 
directly attributable transaction costs. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the 
effective interest method. Amortised cost is calculated by taking into account any discounted or premium on settlement. Issue costs in relation to term loans 
are deducted from the loan proceeds and are charged to the income statement at constant rate over the term of the loan to which they relate.
Retirement benefit costs
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
•
•
•
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
28 Exceptional items
The Group presents as exceptional items on the face of the income statement, those material items of income and expense which, because of the nature 
and expected infrequency of the events giving rise to them, merit separate presentation to allow shareholders to understand better the elements of financial 
performance in the year, so as to facilitate comparison with prior periods and assessment of trends in financial performance.
Share based payments
The cost of equity-settled transactions with employees is measured by reference to the fair value at the date at which they are granted and is recognised as an 
expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined by an 
external valuer using an appropriate pricing model. In valuing equity-settled transactions, no account is taken of any vesting conditions, other than conditions 
linked to the price of the shares of the Company (market conditions).
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as 
vesting irrespective of whether or not the market condition is satisfied, provided that all other performance conditions are satisfied.
At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired and 
management’s best estimate of the achievement or otherwise of non-market conditions and of the number of equity instruments that will ultimately vest or, 
in the case of an instrument subject to a market condition, be treated as vesting as described above. 
The movement in cumulative expense since the previous balance sheet date is recognised in the income statement, with a corresponding entry in equity.
Where the terms of an equity-settled award are modified or a new award is designated as replacing a cancelled or settled award, the cost based on the 
original award terms continues to be recognised over the original vesting period. In addition, an expense is recognised over the remainder of the new 
vesting period for the incremental fair value of any modification, based on the difference between the fair value of the original award and the fair value of the 
modified award, both as measured on the date of the modification. No reduction is recognised if this difference is negative.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any cost not yet recognised in the income 
statement for the award is expensed immediately. Any compensation paid up to the fair value of the award at the cancellation or settlement date is deducted 
from equity, with any excess over fair value being treated as an expense in the income statement.
3 Critical accounting assumptions and key sources of estimation uncertainty
In the process of applying the Group’s accounting policies, as described in note 2, management does not consider that there are any significant assumptions 
made that would have an adverse or material impact on the financial statements.
4 Segment reporting
The Group has one business activity, being the operation of 5-a-side football centres, and one geographical segment, the UK. Operating 5-a-side centres 
involves earning revenues from the hiring of pitches, hosting leagues and corporate events, operating function rooms and bars and associated sponsorship 
income. All corporate overheads are allocable to the Group’s one business activity and, therefore, no further segmental information is provided. Revenue 
recognised in the income statement is analysed as follows:
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 £’000	 	 £’000	 Rendering of services 	 18,210	 15,838
Sale of goods 	 4,820	 4,650
Finance revenue 	 6	 –
  ––––––––––– –––––––––––
    
29
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notes to the Financial Information – continued
5 Profit before financing and taxation
The profit on ordinary activities before taxation is stated after charging/(crediting):
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 £’000	 	 £’000	 Depreciation of property, plant and equipment 	 2,279	 2,157
Operating lease payments:
Minimum lease payments – land and buildings 	 875	 731 
 – other  71 63
Contingent rents 	 43	 49
Cost of inventories recognised as an expense 	 1,937	 1,771
Auditors’ remuneration: 	 	 Audit services 	 36	 38
Taxation services 	 8	 7
Corporate finance services 	 27	 6
Other services 	 11	 4
Deferred grants 	 (1)	 (1)
  ––––––––––– –––––––––––
Audit fees relating to the company included above amounted to £12,000 (2006: £12,000). 
The company has taken advantage of the exemption allowed under Section 230 of the Companies Act 1985 and has not presented its own income statement 
in these financial statements. The company profit for the year ended 30 June 2007 is £953,000 (2006: £295,000).
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
30 6 Employee costs
Staff costs, including Directors, consist of:
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 £’000	 	 £’000
Wages and salaries 	 5,313	 4,915
Social security costs 	 409	 368
Other pension costs 	 74	 71
  ––––––––––– –––––––––––
 	 5,796	 5,354
  ––––––––––– –––––––––––
The average monthly number of employees of the Group during the year was as follows:
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 Number	 	 Number
Administration 	 25	 23
Centre based staff 	 527	 557
  ––––––––––– –––––––––––
 	 552	 580
  ––––––––––– –––––––––––
Directors’ emoluments consist of:
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 £’000	 	 £’000
Emoluments 	 445	 490
Pension contributions towards defined contribution pension plans 	 40	 26
  ––––––––––– –––––––––––
 	 485	 516
  ––––––––––– –––––––––––
Emoluments and pension contributions of the highest paid Director consist of:
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 £’000	 	 £’000
Emoluments of the highest paid Director 	 116	 141
Pension contributions towards defined contribution pension plans 	 11	 10
  ––––––––––– –––––––––––
 	 127	 151
  ––––––––––– –––––––––––
Number of Directors who were members of a defined contribution pension scheme:
Number of Directors 	 3	 3
  ––––––––––– –––––––––––
31
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notes to the Financial Information – continued
7 Exceptional items
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 £’000	 	 £’000
Impairment of assets held for sale 	 –	 216
Loss on sale of assets 	 28	 –
Impairment of property, plant and equipment 	 –	 486
  ––––––––––– –––––––––––
 	 28	 702
  ––––––––––– –––––––––––
The impairment of assets held for sale relates to the centre at Dunfermline, which, at 1 July 2006, was the subject of a provisional sale agreement.  
The impairment reflects the difference between the carrying value of the asset and the anticipated net proceeds from the sale. The disposal of this centre  
was completed on 25 September 2006.
The impairment of property, plant and equipment during 2006 of £702,000 arose where a review of the carrying amount of certain centres indicated that  
the discounted cash flows generated by those centres did not support their carrying amount.
8 Finance costs
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 £’000	 	 £’000
Interest on bank loans and overdrafts 	 1,101	 983
Amortisation of loan issue costs 	 9	 12
  ––––––––––– –––––––––––
Finance	 costs 	 1,110	 995
  ––––––––––– –––––––––––
9 Taxation
Tax on profit on ordinary activities
The charge for taxation on profit for the year comprises:
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 £’000	 	 £’000
Current tax:
UK corporation tax 	 1,329	 696
Adjustment in respect of prior years 	 (57)	 (55)
  ––––––––––– –––––––––––
 	 1,272	 641
  ––––––––––– –––––––––––
Deferred tax: (note 21)
Origination and reversal of temporary differences 	 306	 393
Effect of reduction in tax rate from 30% to 28% 	 (279)	 –
  ––––––––––– –––––––––––
 	 27	 393
  ––––––––––– –––––––––––
 	 1,299	 1,034
  ––––––––––– –––––––––––
UK corporation tax is calculated at 30% (2006: 30%) of the estimated assessable profit for the year. 
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
32 Reconciliation of the total tax charge
The charge for the year can be reconciled to the profit for the year before taxation per the consolidated income statement as follows:
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 £’000	 	 £’000
Profit for the year before taxation 	 4,958	 3,235 
  ––––––––––– –––––––––––
Profit for the year before taxation multiplied by  
the standard rate of corporation tax in the UK of 30% (2006: 30%) 	 1,487	 971
Effects of: 	 	  Expenses not deductible for tax purposes 	 136	 155
  Adjustment in respect of rate changes 	 (279)	 –
  Adjustment in respect of prior years 	 (57)	 (117)
  Other  	 12	 25
  ––––––––––– –––––––––––
Charge	 for	 taxation	 on	 profit	 for	 the	 year	 	 	 1,299	 1,034
  ––––––––––– –––––––––––
   
Factors that may affect future tax charges
A deferred tax asset has not been recognised in respect of timing differences relating to non-trading deficits as there is insufficient evidence that the asset  
will be recovered. The amount of the asset not recognised is £607,000 (2006: £651,000). The asset would be recovered if appropriate future taxable profits  
are made.
10 Earnings per share
Basic earnings per ordinary 10p share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary 
shares in issue during the year, which was 81,820,000 (2006: 81,820,000).
Diluted earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares 
outstanding during the year plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary 
shares into ordinary shares. For the year ended 30 June 2007, this was 81,954,000 (2006: 81,820,000).
	 2007	 	 2006
	 Profit	 for	 the	 year	 Earnings 	 per	 share	 Profit 	 for	 the	 year	 Earnings 	 per	 share
	 £000	 p	 £000	 P
Basic earnings per share   3,659 4.47 2,201 2.69
Diluted earnings per share   3,659 4.47 2,201 2.69
 
Adjusted earnings per ordinary 10p share is calculated using profit adjusted for exceptional items and the taxation effect of those exceptional items.  
This measure has been selected to exclude one-off exceptional items and thus enable future adjusted earnings per share calculations, which are not affected 
by the above items, to be meaningfully compared with the past.
	 2007	 	 2006
	 Profit	 for	 the	 year	 Earnings 	 per	 share	 Profit 	 for	 the	 year	 Earnings 	 per	 share
	 £000	 p	 £000	 P
Basic adjusted earnings per share   3,694 4.51 3,128 3.82
Diluted adjusted earnings per share   3,694 4.51 3,128 3.82
33
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notes to the Financial Information – continued
10 Earnings per share – continued
	 	 2007	 2006
	 	 No.	 (‘000)	 No.	 (‘000)
Basic weighted average number of shares 	 81,820	 81,820
Dilutive potential ordinary shares:
Employee share options 	 134	 –
  ––––––––––– –––––––––––
Diluted	 weighted	 average	 number	 of	 shares 	 81,954	 81,820
  ––––––––––– –––––––––––
Reconciliation of profit for the year:
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 £’000	 	 £’000
Profit for basic and diluted earnings per share 	 3,659	 2,201
Exceptional operating items 	 28	 702
Taxation effect of exceptional items 	 7	 225
  ––––––––––– –––––––––––
Profit	 for	 adjusted	 earnings	 per	 share	 	 3,694	 3,128
  ––––––––––– –––––––––––
1 1 Dividends paid and proposed
	 	 2007	 2006
	 	 £’000	 £’000
Declared and paid during the year:
Equity dividends on ordinary shares:
Final dividend for 2006: 0.75p (2005: nil) 	 614	 –
  ––––––––––– –––––––––––
Dividends paid 	 614	 –
  ––––––––––– –––––––––––
Proposed for approval by shareholders at the AGM:
Final dividend for 2007: 1.1p (2006: 0.75p) 	 900	 614
  ––––––––––– –––––––––––
The annual accounts of the Company at 1 July 2006 showed distributable reserves of £251,000. On 28 September 2006, Powerleague Fives Limited paid a 
dividend to the Company of £614,000 on the basis of which the Company in general meeting declared a dividend on 20 November 2006 of £614,000 and 
this was paid to the shareholders in December 2006. It has recently been brought to the attention of the Company that interim accounts of the Company 
(the ‘relevant accounts’) should have been prepared as at 30 September 2006, prior to the declaration and payment of the Company’s dividend, the purpose 
of such interim accounts being to formally show the payment of the dividend of £614,000 by Powerleague Fives Limited to the Company. The appropriate 
procedure was therefore not fully followed. This is considered to be a technicality as the Company would have been shown to have sufficient distributable 
reserves had interim accounts been prepared at September 2006. A special resolution to ratify the payment of this dividend will be tabled at the Annual 
General Meeting.
On 28 September 2007, a dividend of £900,000 was paid to the Company by Powerleague Fives Limited. Interim accounts of the Company to  
30 September 2007 will be presented for approval at the Annual General Meeting.
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
34 12 Property, plant and equipment 
Group
	 Long	 leasehold	 and	 freehold	 property	 	 	 	 	 	 Head	 office	 Operating 	 	 Equipment, 	 	 Computer	 Motor	 Assets
	 property	 facilities	 	 fixtures 	 &	 fittings	 equipment	 vehicles	 under 	 construction	 Total
	 £’000	 £’000	 £’000	 £’000	 £’000	 £’000	 £’000
Cost
At 2 July 2005 335 45,736 2,256 1,006 9 680 50,022
Additions 67 5,175 745 300 – 382 6,669
Acquisition of subsidiary at fair value – 1,474 4 – – – 1,478
Transfer of assets held for sale – (506) (4) (8) – – (518)
Transfers – 680 – – – (680) –
Disposals – (540) – – (9) – (549)
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
At 1 July 2006 402 52,019 3,001 1,298 – 382 57,102
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
Additions 99 1,751 466 254 – 2,220 4,790
Disposals – (810) – – – – (810)
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
At	 30	 June	 2007 501 52,960 3,467 1,552 – 2,602 61,082
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
Accumulated	 depreciation      
At 2 July 2005 46 10,861 1,847 835 9 – 13,598
Charge  9 1,734 250 164 – – 2,157
Transfer of assets held for sale – (233) – (2) – – (235)
Impairment (note 7)  702 – – – – 702
Disposals – (540) – – (9) – (549)
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
At 1 July 2006 55 12,524 2,097 997 – – 15,673
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
Charge 14 1,859 224 182 – – 2,279
Disposals – (810) – – – – (810)
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
At	 30	 June	 2007 69 13,573 2,321 1,179 – – 17,142
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
Net	 book	 value
At	 30	 June	 2007 432 39,387 1,146 373 – 2,602 43,940
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
At 1 July 2006 347 39,495 904 301 – 382 41,429
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
At 30 June 2007, the Group had entered into contractual commitments for expenditure on property, plant and equipment amounting to £2,502,000  
(2006: £1,084,000).
The net book value of long leasehold and freehold property which includes Head Office property and Operating facilities comprises:
	 	 As	 at	 As	 at	 	 	 	 30	 June	 2007	 1	 July	 2006
	 	 £’000	 £’000	 Freehold property 	 1,534	 1,512
Long leasehold property 	 38,285	 38,330
  ––––––––––– –––––––––––
 	 39,819	 39,842
  ––––––––––– –––––––––––
 
35
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notes to the Financial Information – continued
13 Intangible assets
Group
	 	 Goodwill	 Total
	 	 £’000	 £’000	 Cost: 	 At 3 July 2005 	 –	 –
Additions 	 258	 258
  ––––––––––– –––––––––––
At	 1	 July	 2006	 and	 30	 June	 2007 	 258	 258
  ––––––––––– –––––––––––
Net	 book	 value	 at	 1	 July	 2006	 and	 30	 June	 2007 	 258	 258
  ––––––––––– –––––––––––
14 Trade and other receivables
	 	 Group	 Company
	 		 As	 at	 As	 at	 	 As	 at	 	 As	 at
	 		 30	 June	 1	 July	 	 30	 June	 1	 July
	 		 2007	 2006	 2007	 2006
	 £’000	 £’000	 £’000	 £’000
Non-current	 assets
Other receivables 302 200 – –
 ––––––––––– ––––––––––– ––––––––––– –––––––––––
Current	 assets
Trade receivables 990 462 – –
Prepayments and accrued income 526 630 – –
Amounts due from related parties – – 11,190 10,866
 ––––––––––– ––––––––––– ––––––––––– –––––––––––
 1,516 1,092 11,190 10,866
 ––––––––––– ––––––––––– ––––––––––– –––––––––––
Included within other receivables is an amount of £200,000 (2006: £250,000) deposited with third parties which is held on escrow by the seller of the former 
VIDA centres acquired in 2005 as conditional consideration for the purchase of the centre at Warrington. £50,000 is released to the seller annually if certain 
conditions are not met and is included in current assets. If those conditions are met, the remaining sum will be returned to the Group.
The carrying value of trade and other receivables is considered to be substantially the same as their fair value. 
15 Cash and cash equivalents
Group
Cash and cash equivalents comprise cash held by the Group and short term bank deposits with an original maturity of three months or less. The carrying 
amount of these assets approximates their fair value.
Analysis of cash and cash equivalents disclosed in the cash flow statement:
	 	 As	 at	 As	 at	 	 	 	 30	 June	 2007	 1	 July	 2006
	 	 £’000	 £’000	 Cash at bank and in hand 	 549	 516
Bank overdraft 	 (1,476)	 (1,114)
  ––––––––––– –––––––––––
 	 (927)	 (598)
  ––––––––––– –––––––––––
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
36 16 Assets/liabilities included in disposal group held for sale
There were no non-current assets or liabilities held for sale at the year end. 
In May 2006, the Group reached agreement to sell its Dunfermline centre, as the location of the centre limited the ability to satisfactorily develop the business. 
At 1 July 2006, the assets of the centre were written down to fair value less costs to sell of £283,000 resulting in an impairment recognised within exceptional 
items (note 7) of £216,000. The sale was completed in September 2006 and a loss on sale of £28,000 has been recognised in the current year. Liabilities of 
£35,000 held for sale at 1 July 2006 related to the Capital Goods Scheme liability for the Dunfermline centre which transferred to the purchaser on completion 
of the sale.
17 Trade and other payables
Group
Analysis of cash and cash equivalents disclosed in the cash flow statement:
	 	 As	 at	 As	 at	 	 	 	 30	 June	 2007	 1	 July	 2006
	 	 £’000	 £’000	 Current	 liabilities
Trade payables 	 2,005	 1,925
Other taxes and social security costs 	 255	 241
Accruals and deferred income 	 933	 1,200
Deferred grant (refer to note 20) 	 1	 1
Other taxes ** 	 116	 129
  ––––––––––– –––––––––––
 	 3,310	 3,496
  ––––––––––– –––––––––––
Non-current	 liabilities
Other taxes ** 	 274	 366
Deferred grant (refer to note 20)  	 55	 56
  ––––––––––– –––––––––––
 	 329	 422
  ––––––––––– –––––––––––
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The Directors consider that the carrying 
amount of trade and other payables approximate to their fair value.
**Other taxes relates to VAT payable at a future date under the Capital Goods Scheme. 
37
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notes to the Financial Information – continued
18 Financial Instruments
Group
An explanation of the Group’s objectives, policies and strategies for the role of financial instruments in creating and changing the risks of the Group in its 
activities can be found in pages 4 to 11.
Borrowings
The Group has outstanding borrowings as at 30 June 2007 as follows:
	 	 As	 at	 As	 at	 	 	 	 30	 June	 2007	 1	 July	 2006
	 	 £’000	 £’000	 Current
Bank term loans 	 3,515	 2,655
Bank overdrafts 	 1,476	 1,114
  ––––––––––– –––––––––––
 	 4,991	 3,769
  ––––––––––– –––––––––––
Non-current
Bank term loans 	 14,060	 15,138
  ––––––––––– –––––––––––
 	 14,060	 15,138
  ––––––––––– –––––––––––
All borrowings are denominated in sterling. 
Details of loans held by the Group are as follows:
 £17,633,000 term loan, which attracts interest at base plus 1%, was taken on 29 May 2007, repayable in equal semi-annual instalments over five years, 
commencing November 2007.
 £4,500,000 development loan was also established on 29 May 2007, which attracts interest at base plus 1% and, once drawn, will be repayable in equal 
quarterly instalments over five years. At 30 June 2007, there had been no drawdown under this loan.
The bank term loan and overdraft are secured by a standard security and legal charge over certain of the Group’s freehold and leasehold property and by a 
floating charge over the property and assets of the Group. There is also a cross guarantee between Powerleague Group plc and its subsidiary undertakings.  
At 30 June 2007 the amount outstanding for the Group, including bank overdraft, was £18,594,000 (2006: £18,482,000).
The Group is required to comply with certain covenants on its borrowing, namely Interest Cover of 3:1 and Cash Flow Cover of 1:1. The covenants are tested 
quarterly on a rolling 12-month basis.
Details of the loans in place at 1 July 2006 are as follows:
£16,000,000 term loan, which attracted interest at base plus 1.15%, was taken on 1 June 2005, repayable in equal quarterly instalments over six years, 
commencing August 2005. Four repayments of £667,000 were made during the year to 1 July 2006.
£5,000,000 development loan, of which £4,423,000 has been drawn during the year, attracts interest at base plus 1.15% and is repayable in one bullet 
repayment on 28 February 2011.
The security and covenants applying at 1 July 2006 were the same as those applying at 30 June 2007. 
Committed facilities
The Group has floating rate committed borrowing facilities, which have been utilised as follows:
	 	 As	 at	 As	 at	 	 	 	 30	 June	 2007	 1	 July	 2006
	 	 £’000	 £’000	 Facilities 	 6,500	 7,000
Borrowing 	 (1,476)	 (5,631)
  ––––––––––– –––––––––––
Undrawn facility 	 5,024	 1,369
  ––––––––––– –––––––––––
Expiring within one year 	 5,024	 –
Expiring after more than one year, but within five years 	 –	 1,369
  ––––––––––– –––––––––––
 	 5,024	 1,369
  ––––––––––– –––––––––––
•
•
•
•
•
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
38 Interest rate profile of financial assets and liabilities
The interest rate profile of the Group’s financial assets and liabilities is as follows:
30	 June	 2007	 Within	 1-2	 2-3	 3-4	 4-5	 Over	 	 1	 year	 years	 years	 years	 years	 5	 years	 Total
	 £000	 £000	 £000	 £000	 £000	 £000	 £000
Floating rate:
Cash and cash equivalents 549 – – – – – 549
Escrow deposits 50 50 50 50 – – 200
Term loans (3,515) (3,515) (3,515) (3,515) (3,515) – (17,575)
Bank overdraft (1,476) – – – – – (1,476)
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
   (4,392) (3,465) (3,465) (3,465) (3,515) – (18,302)
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
30	 June	 2006	 Within	 1-2	 2-3	 3-4	 4-5	 Over	 	 		 1	 year	 years	 years	 years	 years	 5	 years	 Total
	 		 £000	 £000	 £000	 £000	 £000	 £000	 £000
Floating rate:
Cash and cash equivalents 516 – – – – – 516
Escrow deposits 50 50 50 50 50 – 250
Term loans (2,655) (2,655) (2,655) (2,655) (2,655) (4,518) (17,793)
Bank overdraft (1,114) – – – – – (1,114)
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
   (3,203) (2,605) (2,605) (2,605) (2,605) (4,518) (18,141)
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
Financial liabilities bear interest at the Bank of England base rate. Short term cash deposit accounts of £515,000 (2006: £445,000) and cash floats at operational 
centres of £34,000 (2006: £33,000) are not interest earning.
Credit risk
There are no significant concentrations of credit risk within the Group. The maximum credit risk exposure relating to financial assets is represented by carrying 
value as at the balance sheet date. Credit risks arising from acting as guarantor are disclosed above.
Fair values of financial assets and financial liabilities
Set out below is a comparison by category of carrying value of the Group’s financial instruments.
	 		 Book	 value	 	 Fair	 value
	 		 2007	 2006	 2007	 2006
	 		 £’000	 £’000	 £’000	 £’000
Financial	 assets     
Cash 549 516 549 516
Escrow deposits 200 250 200 250
Financial	 liabilities
Bank overdraft (1,476) (1,114) (1,476) (1,114) 
Floating rate borrowings (17,575) (17,793) (17,575) (17,793)
The carrying amount of other financial instruments of the Group i.e. short term trade receivables and payables that are not included in the table above is a 
reasonable approximation of fair value.
39
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notes to the Financial Information – continued
19 Operating lease arrangements
Group
The Group lease certain assets on an operating lease basis. These assets include land, buildings and office equipment.
The Group as lessee:
	 	 2007	 2006
	 	 £’000	 	 £’000	 Amounts recognised for the year:
Minimum lease payments  	 946	 794
Contingent rents 	 43	 49
  ––––––––––– –––––––––––
Net	 rent	 expense	 for	 the	 year 	 989	 843
  ––––––––––– –––––––––––
At the balance sheet date, the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall 
due as follows:
	 	 2007	 2006
	 	 £’000	 	 £’000	 Within one year 	 1,192	 1,017
In the second to fifth years inclusive 	 3,856	 3,202
After five years 	 37,702	 35,515
  ––––––––––– –––––––––––
Total	 future	 minimum	 lease	 payments 	 42,750	 39,734
  ––––––––––– –––––––––––
The Group has no sub-leases.
20 Deferred grants
Group
	 	 As	 at	 As	 at	 	 	 	 30	 June	 2007	 1	 July	 2006
	 	 £’000	 £’000	 Balance at 2 July 2006 	 57	 58
Amortised during the year 	 (1)	 (1)
  ––––––––––– –––––––––––
Balance at 30 June 2007 	 56	 57
  ––––––––––– –––––––––––
	 	 As	 at	 As	 at	 	 	 	 30	 June	 2007	 1	 July	 2006
	 	 £’000	 £’000	 Current element of deferred grants 	 1	 1
Non-current element of deferred grants 	 55	 56
  ––––––––––– –––––––––––
Balance at 30 June 2007 (refer note 17) 	 56	 57
  ––––––––––– –––––––––––
The company is not in receipt of grants.
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
40 21 Deferred tax
Group
The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon in the current and prior reporting year.
	 		 Accelerated	 	 Short 	 term	 Losses	 	 	 	 		 tax	 	 timing	 carried	 	 	 	 		 depreciation	 	 differences	 forward	 Total
	 		 £’000	 £’000	 £’000	 £’000
At 2 July 2005 3,630 15 (315) 3,330
On acquisition of subsidiary company 421 (7) – 414
Charge to income 116 (17) 294 393
 ––––––––––– ––––––––––– ––––––––––– –––––––––––
At 1 July 2006 4,167 (9) (21) 4,137
Charge to income (6) 15 18 27
 ––––––––––– ––––––––––– ––––––––––– –––––––––––
At	 30	 June	 2007 4,161 6 (3) 4,164
 ––––––––––– ––––––––––– ––––––––––– –––––––––––
The Group has unutilised non-trade loan relationship deficits of £2,162,000 (2006: £2,169,000) at the balance sheet date upon which a deferred tax asset of 
£607,000 (2006: £651,000) has not been recognised.
At the balance sheet date, the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which deferred tax 
liabilities have not been recognised was £nil (2006: £nil). No liability has been recognised because the Group is in a position to control the reversal of the 
temporary differences and it is probable that such differences will not reverse in the foreseeable future.
22 Called up share capital 
Group and Company
The table below shows the movements in the authorised and issued share capital of Powerleague Group plc for the year ended 30 June 2007.
	 	 As	 at	 As	 at	 	 	 	 30	 June	 2007	 1	 July	 2006
	 	 £’000	 £’000	 Authorised:
200,000,000 ordinary shares of 10p each  	 20,000	 20,000
  ––––––––––– –––––––––––
Allotted,	 called	 up	 and	 fully	 paid	 81,820,000 ordinary shares of 10p each  	 8,182	 8,182
  ––––––––––– –––––––––––
Voting rights attaching to the shares are as follows: at a general meeting, on a show of hands each person present has one vote. On a poll of members,  
each share carries one vote.
41
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notes to the Financial Information – continued
23 Reserves 
Group
	 	 Share	 Share	 Group	 	 Retained 	 	 	 capital	 premium	 merger	 earnings	 Total
	 	 £’000	 £’000	 £’000	 £’000	 £’000
At 2 July 2005  8,182 7,287 (4,999) 3,569 14,039
Profit for the year  – – – 2,201 2,201
  ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
At 1 July 2006  8,182 7,287 (4,999) 5,770 16,240
Share based payment  –  – – 13 13
Dividend paid  –  – – (614) (614)
Profit for the year  – – – 3,659 3,659
  ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
At	 30	 June	 2007	 	 8,182	 7,287	 (4,999)	 8,828	 19,298
  ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
As explained in the basis of preparation (note 2) the group reorganisation has been accounted for using the UK GAAP merger accounting method. Under this 
approach the difference that arose between the nominal value of shares given and shares received on the group reorganisation in May 2005 is recognised 
within a separate reserve, the merger reserve.
Company
	 	 Share	 Share	 Group	 	 Retained 	 	 	 capital	 premium	 merger	 earnings	 Total
	 	 £’000	 £’000	 £’000	 £’000	 £’000
At 2 July 2005 8,182 7,287 16,974 (44) 32,399
Retained profit for the year – – – 295 295
   ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
At 1 July 2006 8,182 7,287 16,974 251 32,694
Dividend paid – – – (614) (614)
Profit for the year – – – 953 953
   ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
At	 30	 June	 2007	 8,182	 7,287	 16,974	 590	 33,033
  ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
24 Reconciliation of cash flow from operating activities
Group
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 £’000	 	 £’000
Retained profit 	 3,659	 2,201
Taxation expense 	 1,299	 1,034
Net interest expense 	 1,104	 995
Operating	 profit 	 6,062	 4,230
Adjustments for: 	 Depreciation of property, plant and equipment 	 2,279	 2,157
Release of deferred grant 	 (1)	 (1)
Impairment of property, plant and equipment 	 –	 702
Decrease/(increase) in inventories 	 16	 (55)
Increase in receivables 	 (526)	 (48)
(Decrease)/increase in payables 	 (231)	 524
  ––––––––––– –––––––––––
Cash	 flow	 generated	 from	 operating	 activities 	 7,599	 7,509
Income taxes (paid)/refunded in respect of prior years 	 (1,416)	 66
  ––––––––––– –––––––––––
Net	 cash	 flow	 from	 operating	 activities 	 6,183	 7,575
  ––––––––––– –––––––––––
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
42 Company
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 £’000	 	 £’000
Profit for the year 	 953	 295
Taxation expense 	 142	 172
Interest received 	 (618)	 (598)
Dividend received 	 (614)	 –
Operating	 loss 	 (137)	 (131)
  ––––––––––– –––––––––––
Cash	 flow	 from	 operating	 activities 	 (137)	 (131)
Income taxes paid 	 (157)	 –
  ––––––––––– –––––––––––
Net	 cash	 flow	 from	 operating	 activities 	 (294)	 (131)
  ––––––––––– –––––––––––
25 Reconciliation of net cash flow to movement in net debt
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 £’000	 	 £’000
(Decrease)/increase in cash in the year 	 (329)	 456
Net cash outflow/(inflow) from decrease/(increase) in debt 	 227	 (1,756)
  ––––––––––– –––––––––––
 	 (102)	 (1,300)
Movement in net debt arising from cash flows
Amortisation of issue costs 	 (9)	 (12)
Accrued interest costs 	 –	 (94)
Opening net debt 	 (18,391)	 (16,985)
  ––––––––––– –––––––––––
Closing net debt 	 (18,502)	 (18,391)
  ––––––––––– –––––––––––
26 Analysis of changes in net debt
	 At	 2	 July	 2006	 Cash	 flows	 Non-cash 	 transactions	 At 	 30	 June	 2007
	 £’000	 £’000	 £’000	 £’000
Cash in hand and at bank 516 33 – 549
Bank overdraft (1,114) (362) – (1,476)
   ––––––––––– ––––––––––– ––––––––––– –––––––––––
   (598) (329) – (927)
Debt due within one year (2,655) (860) – (3,515)
Debt due after one year (15,138) 1,087 (9) (14,060)
   ––––––––––– ––––––––––– ––––––––––– –––––––––––
Closing	 net	 debt (18,391) (102) (9) (18,502)
   ––––––––––– ––––––––––– ––––––––––– –––––––––––
43
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notes to the Financial Information – continued
27 Share based payments
On 29 September 2006, the Group commenced the operation of an employee scheme, the Powerleague Group plc Employee Share Option Scheme,  
(the ‘Option Scheme’). The Option Scheme is an equity settled share option scheme.
An expense is recognised for share based payments based on the fair value of the awards at the date of grant, the estimated number of shares that will vest 
and the vesting period of each award. The charge for share based payments for the 52 weeks to 30 June 2007 is £13,000 (2006: nil).
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options during the year:
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 30	 June	 2007
	 	 Number	 of	 shares	 	 WAEP
Awarded during year 	 190,000	 0.67
	 	 –––––––––––
Balance	 at	 end	 of	 year	 	 190,000	  ––––––––––– 
The fair value of equity-settled share options granted is estimated as at the date of grant using a Black-Scholes model, taking into account the terms and 
conditions upon which the options were granted. The following table lists the inputs to the model used for the year ended 30 June 2007:
Grant	 date	 	 29	 Sept	 06	 14	 Nov	 06
Share price at grant date (£)    0.735 0.685
Exercise price (£)    0.660 0.690
Expected volatility     30.6% 31.2%
Risk free rate    4.7% 4.7%
Expected dividend yield     0.0% 1.1%
Time to expiry (years)    6 6
    ––––––––––– –––––––––––
Expected volatility is determined with reference to the volatility of the Group’s share price over the previous 18 months. The expected life used in the model 
has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.
The weighted average fair value of options granted during the year was £0.67 (2006: nil). The range of exercise prices for options outstanding at the end of the 
year was £0.66 – £0.69 (2006: nil).
It is a condition of exercise of the options that the company must demonstrate at least 3% growth in EBITDA in each of the years prior to the date of exercise. 
The earliest exercise dates range from 29 September 2009 to 14 November 2009.
28 Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.
 
Transactions with key management personnel
Remuneration	 of	 key	 management	 personnel
The remuneration of the Directors, who are the key management personnel of the Group, is set out below in aggregate for each of the categories specified  
in IAS 24 ‘Related Party Disclosures’. 
	 	 52	 weeks	 	 52	 weeks
	 	 ended	 30	 June	 2007	 ended 	 1	 July	 2006
	 	 £’000	 	 £’000
Short term employee benefits 	 445	 490
Post employment benefits  	 40	 26
    ––––––––––– –––––––––––
 	 485	 516
    ––––––––––– –––––––––––
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
44 Other related party transactions
Group	 The Group has entered into no related party transactions other than those noted above.
Company
The Company entered into the following related party transactions during the year:
	 Dividend	 received	 from	 Purchases	 from	 Amounts	 due
	 subsidiary	 undertaking	 related	 parties	 from 	 related	 parties
	 £’000	 £’000	 £’000
2007
Subsidiary undertakings 614 136 11,190
   ––––––––––– ––––––––––– –––––––––––
2006
Subsidiary undertakings – 131 10,866
   ––––––––––– ––––––––––– –––––––––––
Loan to Powerleague Fives Ltd
	 	 2007	 2006
	 	 £’000	 £’000
At start of year 	 10,866	 10,399
Advance during the year 	 1,232	 598
Repaid 	 (908)	 (131)
    ––––––––––– –––––––––––
At end of year 	 11,190	 10,866
    ––––––––––– –––––––––––
Interest is charged at a commercial market rate on the loan.
29 Subsidiaries
Details of the principal subsidiaries of the Group, all of which are incorporated in the United Kingdom, are as follows:
	 Shareholding	 Nature	 of	 business
Trading subsidiaries
Powerleague Fives Limited 100% Development and management of 5-a-side football centres
JJ Boyle Limited (see below) 100% * Management of 5-a-side football centres
Non-trading subsidiaries  
Anchor International Limited 100% * Dormant
Barnet Copthall Soccer Centre Limited  100% * Dormant
Croydon Soccer Centre Limited 100% * Dormant
Nottingham Soccer Centre Limited  100% * Dormant
Powerplay Supersoccer Limited 100% * Dormant
Powerleague Soccer Centre Limited 100% * Dormant
Tottenham Soccer Centre Limited 100% * Dormant
* held by subsidiary
Company
	 	 	 £’000
The carrying value of investments in subsidiaries at 1 July 2006 and 30 June 2007  	 	 22,000
     –––––––––––
45
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notes to the Financial Information – continued
29 Subsidiaries – continued
On 24 May 2006 the Group acquired JJ Boyle (Leisure) Limited, an independent private operator with a centre in Bolton. 
Fair value table
	 	 Book	 value	 Fair 	 value	 on	 acquisition
	 	 £’000	 £’000
Fixed assets (note 1) 	 624	 1,478
Stock 	 4	 4
Cash 	 8	 8
Receivables 	 1	 1
Current liabilities – payables 	 (25)	 (25)
Non-current liabilities – payables 	 (328)	 (328)
Non-current liabilities – deferred tax 	 7	 (414)
    ––––––––––– –––––––––––
Net	 assets 	 291	 724
    ––––––––––– –––––––––––
Goodwill arising  	 	 258
     –––––––––––
 	 	 982
Discharged by:
Purchase price 	 	 947
Costs associated with the acquisition 	 	 35
     –––––––––––
	 	 	 982
     –––––––––––
Note 1 – increase in value of long leasehold property to reflect valuation by DTZ Debenham Tie Leung, on its value in use as a fully equipped operational 
entity, having regard to trading potential in accordance with the Royal Institute of Chartered Surveyors Appraisal and Valuation Standard, 5th edition.
JJ Boyle (Leisure) Ltd consumed £21,000 of the Group’s net operating cash flows and generated profit of £17,000 from the period from acquisition on  
24 May 2006 to 1 July 2006. If the combination had taken place at the beginning of the year, the consolidated revenue of the Group would have been 
£20,778,000 and profit would have been £2,064,000.
30 Transition to International Financial Reporting Standards (‘IFRSs’) 
For all periods up to and including the year ended 1 July 2006, the Group prepared its financial statements in accordance with United Kingdom generally 
accepted accounting practice (UK GAAP). The Group is required to report under IFRSs from its interim results for the six month period ended 30 December 2007 
but has elected to adopt IFRS earlier and these financial statements, for the year ended 30 June 2007, are the first the Group has prepared in accordance with 
IFRSs as adopted by the European Union (EU).
Accordingly, the Group has prepared financial statements which comply with IFRSs applicable for periods beginning on or after 2 July 2006 and the significant 
accounting policies meeting those requirements are described in note 2.
In preparing these financial statements, the Group has started from an opening balance sheet as at 3 July 2005, the Group’s date of transition to IFRSs, and 
made those changes in accounting policies and other restatements required by IFRS 1 for the first-time adoption of IFRSs. This note explains the principal 
adjustments made by the Group in restating its UK GAAP balance sheet as at 3 July 2005 and its previously published UK GAAP financial statements for the 
year ended 1 July 2006.
Exemptions applied
IFRS 1 allows first-time adopters certain exemptions from the general requirement to apply IFRSs retrospectively. The Group has taken the following 
exemptions:
IFRS 3 Business Combinations has not been applied to acquisitions of subsidiaries that occurred before 3 July 2005. •
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
46 Group reconciliation of equity at 3 July 2005
	 		 	 	 	 IAS 	 16
	 		 	 	 	 Property,	 IAS 	 19	 IAS 	 36	 IFRS 	 3
	 		 	 	 IAS 	 12	 plant 	 &	 	 Employee	 Impairment	 Business
	 		 	 IAS 	 7	 Taxation	 equipment	 benefits	 of 	 assets	 combinations
	 		 UK	 GAAP	 Cash 	 (note	 3)	 (note 	 4)	 (note 	 5)	 (note 	 6)	 (note 	 8	 (note 	 9)	 IFRS
	 		 £’000	 	 £’000 	 	 £’000 	 	 £’000	 £’000	 £’000	 £’000 	 	 £’000
Non-current	 assets       
Property, plant and equipment 61,500   (27,936)  2,860  36,424
Negative goodwill (2,110)      2,110 –
Other receivables – 250    –  250
   –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
	 		 59,390	 250	 	 (27,936)	 	 2,860	 2,110	 36,674
   –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Current	 assets	 	 	 	 	 	 	 	 Inventories 115       115
Trade and other receivables 944 50      994
Cash and cash equivalents 755 (300)      455
   –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
	 		 1,814	 (250)	 	 	 	 	 	 1,564
   –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Total	 assets	 	 61,204	 	 	 (27,936)	 	 2,860	 2,110	 38,238
   –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Current	 liabilities        
Trade and other payables 2,857    74   2,931
Borrowings  4,164       4,164
   –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
	 		 7,021	 	 	 	 74	 	 	 7,095
   –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Non-current	 liabilities	 	 	 	 	 	 	 	 Other payables 498       498
Borrowings 13,276       13,276
Deferred tax liabilities 1,816  1,514     3,330
   –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
	 		 15,590	 	 1,514	 	 	 	 	 17,104
   –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Total	 liabilities	 	 22,611	 	 1,514	 	 74	 	 	 24,199
   –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Net	 assets	 	 38,593	 	 (1,514)	 (27,936)	 (74)	 2,860	 2,110	 14,039
   –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Equity	 	 	 	 	 	 	 	 Called up share capital 8,182       8,182
Share premium account 7,287       7,287
Merger reserve –   (4,999)    (4,999)
Revaluation reserve 19,458   (19,458)    –
Retained earnings 3,666  (1,514) (3,479) (74) 2,860 2,110 3,569
   –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Total	 equity	 38,593	 	 (1,514)	 (27,936)	 (74)	 2,860	 2,110	 14,039
   –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
47
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notes to the Financial Information – continued
30 Transition to International Financial Reporting Standards (‘IFRSs’) – continued
Group reconciliation of equity at 1 July 2006
	 		 	 IFRS 	 5	 IAS 	 7	 	 IAS 	 16
	 		 	 	 Non-	 Non-	 IAS 	 12	 Property,	 IAS 	 19	 IAS 	 36	 IAS 	 38
	 		 	 current	 current	 Income	 plant 	 &	 Employee	 Impairment	 Intangible
	 		 UK	 assets 	 	 assets	 taxes	 equipment	 benefits	 of 	 assets	 assets
	 		 GAAP	 (note 	 2)	 (note 	 3)	 (note 	 4)	 (note 	 5)	 	 (note 	 6)	 (note 	 8)	 (note 	 9)	 IFRS
	 		 £’000	 £’000 	 	 £’000 	 	 £’000	 £’000 	 	 £’000	 	 	 	 	 £’000	 Non-current	 assets	 	 	 	 	 	 	 	 	 Property, plant and equipment 68,984 (283)   (29,646)  2,374  41,429
Negative goodwill (1,915) (118)      2,291 258
Other receivables   200      200
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
	 		 67,069	 (401)	 200	 	 (29,646)	 	 2,374	 2,291	 41,887
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Current	 assets	 	 	 	 	 	 	 	 	 Inventories 174        174
Trade and other receivables 1,042  50      1,092
Cash and cash equivalents 766  (250)      516
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
	 		 1,982	 	 (200)	 	 	 	 	 	 1,782
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Assets	 in	 disposal	 group	 	 held	 for	 sale	 	 283	 	 	 	 	 	 	 283
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Total	 assets	 	 69,051	 (118)	 	 	 (29,646)	 	 2,374	 2,291	 43,952
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Current	 liabilities	 	 	 	 	 	 	 	 	 Trade and other payables 3,408     88   3,496
Taxation payable 715        715
Borrowings  3,769        3,769
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
	 		 7,892	 	 	 	 	 88	 	 	 7,980
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Non-current	 liabilities	 	 	 	 	 	 	 	 	 Other payables 457 (35)       422
Borrowings 15,138        15,138
Deferred tax liabilities 2,640   1,076    421 4,137
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
	 		 18,235	 	 (35)	 	 1,076	 	 	 	 421	 19,697
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Liabilities	 in	 disposal	 group	 	 held	 for	 sale	 	 35	 	 	 	 	 	 	 35
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Total	 liabilities	 	 26,127	 	 	 1,076	 	 88	 	 421	 27,712
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Net	 assets	 	 42,924	 (118)	 	 (1,076)	 (29,646)	 (88)	 2,374	 1,870	 16,240
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Equity	 	 	 	 	 	 	 	 	 Called up share capital 8,182        8,182
Share premium account 7,287        7,287
Merger reserve –    (4,999)    (4,999)
Revaluation reserve 21,168    (21,168)    –
Retained earnings 6,287 (118)  (1,076) (3,479) (88) 2,374 1,870 5,770
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
Total	 equity	 42,924	 (118)	 	 (1,076)	 (29,646)	 (88)	 2,374	 1,870	 16,240
    –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
 
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
48 Company reconciliation of equity as at 3 July 2005
	 	 IAS	 27
	 UK	 Consolidated	 &	 	 GAAP	 separate	 accounts	 IFRSs
	 £’000	 (note	 7)	 £’000
Non-current	 assets    
Investments 5,026 16,974 22,000
 ––––––––––– ––––––––––– –––––––––––
	 5,026	 16,974	 22,000
 ––––––––––– ––––––––––– –––––––––––
Current	 assets   
Trade and other receivables 10,399 – 10,399
 ––––––––––– ––––––––––– –––––––––––
Net	 assets	 15,425	 16,974	 32,399
 ––––––––––– ––––––––––– –––––––––––
Represented	 by:	 	 	 Capital	 and	 reserves	   
Called up share capital 8,182  8,182
Share premium account 7,287  7,287
Merger reserve – 16,974 16,974
Retained earnings (44)  (44)
 ––––––––––– ––––––––––– –––––––––––
Shareholders’	 funds	 15,425	 16,974	 32,399
 ––––––––––– ––––––––––– –––––––––––
Company reconciliation of equity as at 1 July 2006
	 	 IAS	 27
	 UK	 Consolidated	 &	 	 GAAP	 separate	 accounts	 IFRSs
	 £’000	 (note	 7)	 £’000
Non-current	 assets    
Investments 5,026 16,974 22,000
 ––––––––––– ––––––––––– –––––––––––
	 5,026	 16,974	 22,000
 ––––––––––– ––––––––––– –––––––––––
Current	 assets    
Trade and other receivables 10,866 – 10,866
 ––––––––––– ––––––––––– –––––––––––
Total	 assets	 15,892	 16,974	 32,866
 ––––––––––– ––––––––––– –––––––––––
Current	 liabilities    
Income tax payable 172 – 172
 ––––––––––– ––––––––––– –––––––––––
Total	 liabilities	 172	 –	 172
 ––––––––––– ––––––––––– –––––––––––
Net	 assets	 15,720	 16,974	 32,694
 ––––––––––– ––––––––––– –––––––––––
Represented	 by:	 	 	 	 Capital	 and	 reserves	   
Called up share capital 8,182 – 8,182
Share premium account 7,287  7,287
Merger reserve – 16,974 16,974
Retained earnings 251  251
 ––––––––––– ––––––––––– –––––––––––
Shareholders’	 funds	 15,720	 16,974	 32,694
 ––––––––––– ––––––––––– –––––––––––
49
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notes to the Financial Information – continued
30 Transition to International Financial Reporting Standards (‘IFRSs’) – continued
Group reconciliation of profit for the year ended 1 July 2006
	 UK	 GAAP	 Restated	 IFRS
	 £’000	 	 	 (note	 10)	 £’000
Revenue 20,488 – 20,488
Cost of sales (3,640) – (3,640)
 ––––––––––– ––––––––––– –––––––––––
Gross	 profit 16,848 – 16,848
   
Administrative expenses (12,018) 102 (11,916)
Exceptional items (96) (606) (702)
 ––––––––––– ––––––––––– –––––––––––
Total administration expenses (12,114) (504) (12,618) 
  
Operating	 profit	 4,734 (504) 4,230
Loss on disposal of fixed assets (319) 319 –
Finance costs (995) – (995)
 ––––––––––– ––––––––––– –––––––––––
Profit	 for	 the	 year	 before	 tax	 3,420	 (185)	 3,235
 ––––––––––– ––––––––––– –––––––––––
Tax expense (1,472) 438 (1,034)
 ––––––––––– ––––––––––– –––––––––––
Profit	 for	 the	 year	 1,948	 253	 2,201 
 ––––––––––– ––––––––––– –––––––––––
Notes to the restatement of equity from UK GAAP to IFRS
(1)	 IFRS	 3	 –	 ‘Business	 combinations’
The Group has taken the option exemption under IFRS 1 ‘First Time Adoption of International Reporting Standards’ not to apply IFRS 3 – ‘Business 
combinations’ retrospectively to acquisitions or mergers which occurred prior to 2 July 2005. As required in IFRS 3, the Group has revisited the acquisition 
accounting for JJ Boyle Leisure Ltd which was acquired in May 2006 and as a result, goodwill has arisen on acquisition for the year ended 1 July 2006  
(see note (9) below).
(2)	 IFRS	 5	 –	 ‘Non-current	 assets	 held	 for	 sale’
Under UK GAAP , assets held for sale are not separately classified, but held within Total Fixed Assets. IFRS 5 requires that any assets held for sale and any related 
liabilities should be separately classified on the balance sheet and should not be depreciated from the date they meet the criteria to be recognised as held 
for sale. At 1 July 2006, £283,000 was classified as being held for sale, being the impaired net book value of the Dunfermline centre. It met the criteria of being 
held for sale in May 2006 with a credit to profit of £2,000 from the reduction in depreciation.
Negative goodwill held on the balance sheet under UK GAAP was de-recognised at transition and accordingly the amount released on disposal of this centre 
of £118,000 was charged to profit. Increased costs of disposal increased the impairment by a further £2,000.
(3)	 IAS	 7	 –	 ‘Cash	 and	 cash	 equivalents’
Under UK GAAP , cash on hand included deposits held on escrow by third parties with the potential to be released back to the Group on satisfaction of 
certain conditions, over a period of up to five years. However, IAS 7 defines cash equivalents as those with an expected maturity of less than three months. 
Consequently, balances of £300,000 and £250,000 are reclassified from cash and cash equivalents in the Group Balance Sheet as at 3 July 2005 and 1 July 2006 
respectively.
(4)	 IAS	 12	 ‘Income	 taxes’
Under UK GAAP , there is no provision made for deferred taxation on assets which have been revalued, as there was no commitment at each Balance Sheet 
date to realise the assets in a manner giving rise to a tax liability. IAS 12 requires that where assets are revalued and they are subsequently being depreciated,  
a temporary difference exists and provision for deferred taxation is required.
Whilst the majority of revaluations previously held in the balance sheet have been reversed under IAS 16, where these revaluations related to the fair value 
adjustment of an acquisition, the revaluation cannot be reversed. Accordingly, a deferred taxation liability of £1,514,000 has been recognised at 2 July 2005,  
on the assets of the VIDA acquisition. 
As the assets underlying the provision are depreciated, the temporary difference reverses. A release has been made from deferred taxation of £438,000 in the 
year ended 1 July 2006.
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
50 The net impact of the IFRS changes on deferred taxation is as follows:
	 	 2005	 2006
	 	 £’000	 £’000
Provision on VIDA assets  1,514 1,514
Reversal of temporary differences  – (438)
  ––––––––––– –––––––––––
Change in deferred taxation provision 	 1,514	 1,076
  ––––––––––– –––––––––––
 
(5)	 IAS	 16	 –	 ‘Property,	 Plant	 and	 Equipment’
Under UK GAAP , at the date of transition, properties were carried at their revalued amount on the basis of their value in use. The Group has elected not to take 
the exemption under IFRS 1 ‘First Time Adoption of International Reporting Standards’ to measure assets at transition at their fair value or previously revalued 
amount under IFRS, but has applied IAS 16 retrospectively to measure assets at their depreciated historical cost. The impact on equity is as follows:
	 2005	 2006
	 £’000	 £’000
Elimination of revaluation reserve (24,457) (26,840)
Amounts previously applied to eliminate merger reserve 4,999 4,999
Transfer to profit and loss reserve – 673
 ––––––––––– –––––––––––
Change	 in	 revaluation	 reserve	 (19,458)	 (21,168)
 ––––––––––– –––––––––––
Reversal of previous impairment credit (note below) (3,523) (3,523)
Reduction of depreciation 44 44
 ––––––––––– –––––––––––
Change	 in	 profit	 and	 loss	 reserve	 (3,479)	 (3,479)
 ––––––––––– –––––––––––
Amounts previously applied to eliminate merger reserve (4,999) (4,999)
 ––––––––––– –––––––––––
Change	 in	 merger	 reserve	 (4,999)	 (4,999)
 ––––––––––– –––––––––––
Net	 change	 in	 reserves	 (27,936)	 (29,646)
 ––––––––––– –––––––––––
Note: under UK GAAP , where a revaluation surplus related to a former impairment of assets, this surplus was credited to the profit and loss account. Under IFRS, 
on reversal of the revaluation, this credit has therefore been reversed also.
Under UK GAAP , gains or losses on disposal of assets were classified as non-operating and reported separately. Under IFRS, this classification is not recognised 
and therefore the loss on disposal of £319,000 has been reclassified as operating costs.
(6)	 IAS	 19	 –	 ‘Employee	 benefits’	 –	 employee	 benefit	 accruals	 Under UK GAAP , FRS 12 (Provisions, contingent liabilities and contingent assets) allowed for varying practical implementation and the Group did not make a 
provision for holiday pay. IAS 19 requires that when employees provide a service to a company, the estimated amount that will be paid in exchange for these 
services should be recognised. On transition to IFRS, the company has recognised an accrual for employee benefits in respect of holiday pay. The adjustment 
on transition reflects a cumulative adjustment at the date of transition and following transition, the movement in this accrual reflects the current year service 
cost. Arising from the recognition of this accrual, net assets have been reduced by £74,000 as at 1 July 2005 and £14,000 at 2 July 2006.
(7)	 IAS	 27	 –	 Consolidated	 and	 Separate	 Financial	 Statements
Under UK GAAP merger accounting, the investment of Powerleague Group plc (‘Group’) in Powerleague Fives Ltd (‘Fives’) was stated at the nominal value of 
the shares issued to the subsidiaries and the difference between the nominal value of shares issued and shares received was recognised in a merger reserve. 
IAS 27 requires the carrying value of an investment to be stated at the lower of cost and estimated recoverable amount. ‘Cost’ is defined as the amount of 
cash or cash equivalents paid or the fair value of the considerations given, to acquire an asset. Group acquired the shares in Fives concurrent with floating on 
AIM. As Fives comprises the entire business operation it is reasonable to value the shares in Fives at the market value of the Group shares on flotation i.e. 44p. 
Accordingly, the fair value of the investment in Fives has been restated at £22,000,000.
51
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notes to the Financial Information – continued
30 Transition to International Financial Reporting Standards (‘IFRSs’) – continued
(8)	 IAS	 36	 –	 ‘Impairment	 of	 Assets’
In common with UK GAAP , IAS 36 requires that a review is carried out at least annually to ensure that the carrying value of an asset is not in excess of its 
recoverable amount, being the higher of an asset’s (or cash-generating unit’s) fair value less costs to sell and its value in use. The future cash flow of each 
centre has been compared with its carrying value at transition and at 1 July 2006. The following adjustments have been made to carrying value:
	 	 2005	 2006
	 	 £’000	 £’000
Reversal of previous impairment 	 2,860 3,322
Impairment of property, plant and equipment  –	 (948)
 ––––––––––– –––––––––––
Net	 change	 in	 reserves	 	 2,860	 2,374
 ––––––––––– –––––––––––
The reversal of previous impairment of tangible fixed assets relates to an impairment of certain facilities that was recognised in the profit and loss account in 
the year ended 30 June 2001 and has arisen as a result of an improvement in trading performance and in the expected cash flows arising from the operation 
of these facilities.
(9)	 IFRS	 3	 –	 ‘Business	 Combinations’
Under UK GAAP , entities are permitted to capitalise negative goodwill arising on a business combination. However, IFRS 3 prohibits this treatment and 
requires that any excess of an acquirer’s interest in the net fair value of an acquiree’s identifiable net assets over the cost of those assets should be recognised 
immediately in profit or loss. As a result, the entity has derecognised negative goodwill as noted in the table below. As required in IFRS 3, the Group has also 
revisited the acquisition accounting for JJ Boyle Leisure Ltd which was acquired in May 2006 and as a result, goodwill has arisen on acquisition for the year 
ended 1 July 2006. This is shown in the following table:
	 	 2005	 2006
	 	 £’000	 £’000
De-recognition of negative goodwill at 2 July 2005     2,110 2,110
Reversal of release of negative goodwill for year to 1 July 2006      (240)
Reversal of negative goodwill originally recognised on acquisition      163
Goodwill on acquisition of JJ Boyle Leisure Ltd      258
Deferred tax      (421)
 ––––––––––– –––––––––––
Net	 change	 in	 reserves	 	 	 	 	 2,110	 1,870
 ––––––––––– –––––––––––
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
52 (10)	 Restatement	 of	 profit	 for	 the	 year	 ended	 1	 July	 2006	 from	 UK	 GAAP	 to	 IFRS
The effect of the above GAAP differences on reported profit of the Group for the year ended 1 July 2006 is as follows:
	 	 	 1	 July	 2006
	 	 Note	 £’000
Reported	 profit	 under	 UK	 GAAP	 	 	 1,948
 	 Reduction in depreciation arising from reclassification of asset held for sale 	 	 (2)	 2
Reduction in depreciation arising from restatement to historical cost 	 (5)	 673
Reclassification of non-operating loss on disposal of fixed assets to operating costs 	 (5)	 (319)
Holiday pay accrual 	 (6)	 (14)
Reversal of amortisation of negative goodwill 	 (9)	 (240)
  –––––––––––
Decrease	 in	 administrative	 expenses	 	 	 102
  –––––––––––
Increase in impairment of assets held for sale 	 (2)	 (120)
Impairment of property, plant & equipment 	 (8)	 (948)
Restatement of impairment previously based on revalued amounts (8) 462
  –––––––––––
Increase	 in	 exceptional	 items	 	 (606)
  –––––––––––
Reclassification	 of	 disposal	 of	 fixed	 assets	 to	 depreciation	 	 (5)	 319
  –––––––––––
Impact	 of	 taxation	 changes	 	 (4)	 438
  –––––––––––
Reported	 profit	 for	 the	 year	 under	 IFRS	 	 	 2,201
  –––––––––––
(1 1)	 Restatement	 of	 cash	 flow	 statement	 from	 UK	 GAAP	 to	 IFRS
The transition from UK GAAP to IFRS has no effect on reported cash flows generated by the Group. The IFRS cash flow statement is presented in a different 
format from that required under UK GAAP , with cash flows split into three categories of activity – operating activities, investing activities and financing 
activities. The reconciling items between the UK GAAP presentation and the IFRS presentation have no net impact.
53
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notice of Annual General Meeting 
Notice is hereby given that the Annual General Meeting of Powerleague Group plc will be held at Powerleague Barnet on 26 November 2007 at 11 am for the 
following purposes:
Special Resolution
1.  That, having considered the interim accounts dated 30 September 2007 (appendix 1), which show the reserves of the Company at 30 September 2006, 
the dividend of 0.75p per ordinary share approved in General Meeting on 20th November 2006 and paid in December 2006 is now further approved and 
ratified.
The annual accounts of the Company at 1 July 2006 showed distributable reserves of £251,000. On 28 September 2006, Powerleague Fives Limited paid a 
dividend to the Company of £614,000 on the basis of which the Company in general meeting declared a dividend on 20 November 2006 of £614,000 and 
this was paid to the shareholders in December 2006. It has recently been brought to the attention of the Company that interim accounts of the Company 
(the ‘relevant accounts’) should have been prepared as at 30 September 2006, prior to the declaration and payment of the Company’s dividend, the purpose 
of such interim accounts being to formally show the payment of the dividend of £614,000 by Powerleague Fives Limited to the Company. The appropriate 
procedure was therefore not fully followed. This is considered to be a technicality as the Company would have been shown to have sufficient distributable 
reserves had interim accounts been prepared at September 2006. 
Ordinary Resolutions
2. To receive and adopt the reports of the Directors and the audited accounts of the Company for the year ended 30 June 2007.
3. To re-elect Jeremy Hall as a Director.
4. To re-elect Claude Littner as a Director.
5. To re-appoint Ernst & Young LLP as auditors of the Company to hold office until the conclusion of the next Annual General Meeting.
6. To authorise the Directors to fix the remuneration of the auditors.
7. To receive and adopt the interim accounts of the Company for the three months ended 30 September 2007 (appendix 1).
8. With reference to the interim accounts of the Company to 30 September 2007, to approve the dividend of 1.10p per ordinary share.
As special business, to consider and, if thought fit, to pass the following resolutions, of which resolution number 9 will be proposed as an ordinary resolution 
and resolution number 10 as a special resolution.
9.  Ordinary Resolution
That the Directors be and are hereby generally and unconditionally authorised in accordance with section 80 of the Companies Act 1985 (the ‘Act’) to exercise 
all powers of the Company to allot relevant securities (as defined in section 80(2) of the Act) provided that:
 a) this authority shall be in substitution for any equivalent authority granted to the Directors prior to the date of the passing of this resolution;
 b) this authority shall be limited to the allotment of relevant securities up to an aggregate nominal amount of £3,000,000;
 c)  unless previously renewed, revoked, varied or extended, this authority shall expire on the earlier of the date falling 15 months after the date of the 
passing of this resolution and the conclusion of the next Annual General Meeting of the Company except that the Company may at any time before 
such expiry make an offer or agreement which would or might require relevant securities to be allotted after such expiry and the Directors may allot 
relevant securities in pursuance of such an offer or agreement as if this authority had not expired; and
 d)  in relation to the grant of any right to subscribe for, or convert any security into, shares in the Company, the reference in this resolution to the 
maximum amount of relevant securities that may be allotted is to the maximum amount of shares which may be allotted pursuant to such right.
10. Special Resolution
That, in substitution for any equivalent powers granted to the Directors prior to the passing of this resolution, the Directors be and are hereby empowered 
pursuant to section 95 of the Act to allot equity securities (as defined in section 94(2) of the Act) for cash pursuant to the authority of the Directors conferred 
by resolution 9 above, and/or where such an allotment constitutes an allotment of equity securities by virtue of section 94(3A) of the Act, as if section 89(1)  
of the Act did not apply to any such allotment provided that:
 a) the power conferred by this resolution shall be limited to:
  i.  the allotment of equity securities in connection with an invitation or offer of equity securities to the holders of ordinary shares in the capital of 
the Company (excluding the Company where it holds shares as treasury shares (as defined in section 162A(3) of the Act)) on a fixed record date 
in proportion (as nearly as practicable) to their respective holdings of such shares or in accordance with the rights attached to such shares  
(but subject to such exclusions or other arrangements as the Directors may deem necessary or expedient in relation to fractional entitlements or 
as a result of legal or practical problems under the laws of, or the requirements of any regulatory body or any stock exchange in, any territory); 
  ii. the allotment, otherwise than pursuant to paragraph (i) above, of equity securities up to an aggregate nominal value equal to £500,000; 
 
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
54 b)  unless previously renewed, revoked, varied or extended, this power shall expire on the earlier of the date falling 15 months after the date of the passing 
of this resolution and the conclusion of the next Annual General Meeting of the Company except that the Company may at any time before such expiry 
make an offer or agreement which would or might require equity securities to be allotted after such expiry and the Directors may allot equity securities  
in pursuance of such an offer or agreement as if this power had not expired; and
c)  in this resolution the nominal amount any securities should be taken to be, in the case of a right to subscribe for or convert any securities into shares of 
the Company, the nominal amount of the shares which may be allotted pursuant to such right.
By order of the Board 
Sheena	 Beckwith
Secretary
18 October 2007
Powerleague Mill Hill
Pursley Road
Mill Hill
London NW7 2BB
Notes:
1.  Any member of the Company who is entitled to attend and vote at the meeting may appoint one or more proxies to attend and, on a poll, vote instead of 
him/her. A proxy need not also be a member of the Company. In the case of a company, the proxy must be executed under its common seal or under the 
hand of an officer or attorney duly authorised in writing. To be effective a form of proxy (enclosed with this notice) and the authority (if any) under which 
it is signed or a notarially certified or office copy of such authority must be returned so as to reach the office of the Company’s registrar, Computershare 
Investor Services PLC, PO Box 1075, The Pavilions, Bridgwater Road, Bristol BS99 3FA, at least 48 hours before the time fixed for the meeting. The return by 
a member of a duly completed form of proxy will not preclude any such member from attending in person and voting at the meeting.
2.  The register of Directors’ interests in the shares of the Company and copies of the Directors’ service contracts, other than those expiring or determinable 
without payment of compensation within one year, are available for inspection at the registered office of the Company during the usual business hours 
on any weekday (Saturdays, Sundays and public holidays excluded) from the date of this notice until the date of the meeting and will be available for 
inspection at the place of the meeting for at least 15 minutes prior to and until the close of the meeting.
3.  Pursuant to regulation 41 of the Uncertificated Securities Regulations 2001, only those shareholders registered in the register of members of the Company 
by the time which is 48 hours before the time fixed for the Annual General Meeting shall be entitled to attend or vote at the Annual General Meeting 
in respect of the number of shares registered in their name at that time. Any changes to the register of members after such time shall be disregarded in 
determining the rights of any person to attend or vote at the meeting.
4.  In the case of joint holders, the signature of only one of the joint holders is required on the form of proxy, but the vote of the first named on the register  
of members will be accepted to the exclusion of the others.
Directions for Powerleague BARNET
Situated just off the A406 North Circular.
Tesco
From	 the	 West	 (A406	 North	 Circular)	 –	 Drive over the Brent Cross flyover at the bottom of the M1, pass through the 
junction of the Nth Circ and the A1 taking care to remain on the A406 (North 
Circular) and not join the A1 city bound. Continue on North Circular for 2.5 
miles until exit at slip road sign posted B550 Muswell Hill, Friern Barnet.  
Turn right at the top of the slip road onto Colney Hatch Lane and cross the 
bridge over the Nth Circ, turn right again as if to rejoin the Nth Circ in the 
opposite direction, but instead turn left into the car park.
From	 the	 East	 (A406	 North	 Circular)	 –	 Drive past the large gas works on the right. Leave the North Circular onto the 
slip road sign posted B550 Muswell Hill, Friern Barnet. Cross over the B550 
Colney Hatch Lane back onto the slip road as if to rejoin the North Circular  
in the same direction but turn immediately left into the car park.
Powerleague	 Barnet, Bobby Moore Way, Friern Barnet, London N10 1ST
Telephone: 0208 442 1000
Fax: 0208 365 2931
email: barnet.web@powerleague.co.uk
55
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notice of Annual General Meeting – continued 
Appendix 1 – Unaudited Interim Accounts
Statement of Directors’ responsibilities in respect of the interim accounts
Company law requires the Directors to prepare interim accounts when a public company wishes to make a distribution where the distribution would be 
found to contravene the relevant section if reference were made only to the Company’s last annual accounts. The interim accounts must have been properly 
prepared, or they must have been so prepared subject only to matters which are not material for determining, by reference to those mentioned in Section 
270(2), whether the proposed distribution would contravene the relevant section.
In preparing those financial statements the Directors are required to
•  Select suitable accounting policies in accordance with IAS 8: ‘Accounting Policies, changes in Accounting Estimates and Errors’ and then apply  
them consistently;
• Make judgements and estimates that are reasonable and prudent; and
•  State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial 
statements.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the 
Company and enable them to ensure that the interim accounts comply with the Companies Act 1985. They are also responsible for safeguarding the assets  
of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Company income statement
	 	 Period	 ended	 	 Year	 ended	 Period	 ended
	 	 30	 Sep	 2007	 30	 Jun	 2007	 30	 Sep	 2006
	 	 £’000	 	 £’000	 	 £’000	 	 	 Administrative expenses  (35) (136) (34)
Operating	 loss	 	 (35)	 (136)	 (34)
  ––––––––––– ––––––––––– ––––––––––– 
Income from investments  1,054 1,231 768
Profit	 for	 the	 period	 before	 tax	 	 1,019	 1,095	 734
  ––––––––––– ––––––––––– ––––––––––– 
Taxation  36 142 59
  ––––––––––– ––––––––––– ––––––––––– 
Profit	 for	 the	 period	 	 983	 953	 675
  ––––––––––– ––––––––––– –––––––––––
Statement of recognised income and expenditure for the three month period ended 30 September 2007
There are no recognised gains and losses other than the profit attributable to equity holders of the Company of £983,000 in the period ended 30 September 
2007, the profit of £953,000 in the year ended 30 June 2007 and the profit of £675,000 in the period ended 30 September 2006.
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
56 Company balance sheet as at 30 September 2007
	 	 As	 at	 As	 at	 As	 at
	 	 30	 Sep	 2007	 30	 Jun	 2007	 30	 Sep	 2006
	 Notes	 £’000	 	 £’000	 	 £’000	 Non-current	 assets	 	 	 	 	 Investments 3 22,000 22,000 22,000
  ––––––––––– ––––––––––– ––––––––––– 
	 	 22,000	 22,000	 22,000
  ––––––––––– ––––––––––– ––––––––––– 
Current	 assets	 	 	 	 	 Amounts due from subsidiary companies  12,210 11,190 11,600
  ––––––––––– ––––––––––– –––––––––––
Total	 assets	 	 	 34,210	 33,190	 33,600
  ––––––––––– ––––––––––– ––––––––––– 
Current	 liabilities	 	 	 	 	 Income tax payable  194 157 231
  ––––––––––– ––––––––––– ––––––––––– 
Total	 liabilities	 	 194	 157	 231
  ––––––––––– ––––––––––– ––––––––––– 
Net	 assets	 	 	 34,016	 33,033	 33,369
  ––––––––––– ––––––––––– ––––––––––– 
    
Equity	 	 	 	 	 Called up share capital 4 8,182 8,182 8,182
Share premium account 5 7,287 7,287 7,287
Merger reserve 5 16,974 16,974 16,974
Retained earnings 5 1,573 590 926
  ––––––––––– ––––––––––– –––––––––––
Total	 equity	 	 34,016	 33,033	 33,369
  ––––––––––– ––––––––––– –––––––––––
Sheena	 Beckwith
Director
18 October 2007
 
1 Accounting policies
Basis of preparation
The interim accounts are prepared in accordance with International Financial Reporting Standards (‘IFRS’) as adopted by the European Union as they apply 
to the interim accounts using accounting policies consistent with those set out in the Company’s financial statements which are included within the Group 
financial statements for the year ended 30 June 2007 which will be filed with the Registrar of Companies following approval at the AGM. The financial 
information for the year ended 30 June 2007 has been extracted from the Company’s financial statements included with the Group financial statements.
57
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Notice of Annual General Meeting – continued 
Appendix 1 – Unaudited Interim Accounts – continued
2 Dividends paid and proposed
	 	 Period	 ended	 Year	 ended	 Period	 ended
	 	 30	 Sep	 2007	 30	 Jun	 2007	 30	 Sep	 2006
	 	 £’000	 £’000	 £’000
Declared and paid during the period:    
Equity dividends on ordinary shares:    
Final dividend for 2006: 0.75p (2005: nil)  – 614 –
  ––––––––––– ––––––––––– –––––––––––
Dividends	 paid	 	 –	 614	 –
  ––––––––––– ––––––––––– –––––––––––
Proposed for approval by shareholders at the AGM:    
Final dividend for 2007: 1.1p (2006: 0.75p)  900	 –	 614
  ––––––––––– ––––––––––– –––––––––––
3 Investments
	 	 	 £’000
Cost:
At 30 September 2006, 30 June 2007 and 30 September 2007 	 	 22,000
      –––––––––––
The investment represents a holding of 100% of the equity share capital of Powerleague Fives Limited, a company incorporated in the United Kingdom and 
engaged in the development and management of 5-a-side football centres.
4 Called up share capital 
	 	 As	 at	 As	 at	 As	 at
	 	 30	 Sep	 2007	 30	 Jun	 2007	 30	 Sep	 2006
	 	 £’000	 £’000	 £’000
Authorised:	 	 	 200,000,000 ordinary shares of 10p each   20,000 20,000 20,000
  ––––––––––– ––––––––––– –––––––––––
Allotted,	 called	 up	 and	 fully	 paid	 	 	 	 81,820,000 ordinary shares of 10p each   8,182 8,182 8,182
  ––––––––––– ––––––––––– –––––––––––
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
58 5 Reserves
	 Share	 Share	 Merger	 Retained	 	 	 	 capital	 premium	 reserve	 earnings	 Total
	 £’000	 £’000	 £’000	 £’000	 £’000
At 1 July 2006 8,182 7,287 16,974 251 32,694
Retained profit for the period – – – 675 675
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
At 30 Sept 2006 8,182 7,287 16,974 926 33,369
Dividend paid – – – (614) (614)
Retained profit for the period – –  278 278
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
At	 30	 June	 2007	 8,182	 7,287	 16,974	 590	 33,033
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
Retained profit for the period – –  983 983
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
At	 30	 September	 2007	 8,182	 7,287	 16,974	 1,573	 34,016
 ––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––
59
 Powerleague Group plc
Annual Report and Financial Statements for the year ended 30 June 2007 Our Centres
EAST ANGLIA
NORWICH 
Bowthorpe Park, Clover Hill Road, Norwich NR5 9ED
PETERBOROUGH 
Stanground College, Peterborough Road, Peterborough PE7 3BY
HAMPSHIRE
BASINGSTOKE 
Brighton Hill Community College, Brighton Way 
Basingstoke RG22 4HS, Hampshire
GREATER LONDON
BARNET 
Bobby Moore Way, Friern Barnet, London N10 1ST
CATFORD 
Private Banks Sports Ground, Canadian Avenue, London SE6 4SW
CROYDON 
Hannibal Way, Wallington, Croydon CR0 4RW, Surrey
FAIRLOP	 OAKS	 Forest Road, Hainault, Ilford IG6 3HJ, Essex
LONDON	 CITY	 115 Worship Street, London EC2A 2BA
MILL	 HILL	 Pursley Road, Mill Hill, London NW7 2BB
MILTON	 KEYNES	 Walton High, Fyfield Barrow, Milton Keynes MK7 7WH
NEWHAM 
Norwegian Playing Fields, Jenkins Lane, Newham IG11 0AD
NORBURY 
Turle Road, Norbury, London SW16 5QN
OLD	 STREET	 384 Old Street, Arches 456-460, London EC1 9LT
SLOUGH 
Slough & Eton School, Ragstone Road, Slough SL1 2PU
TOTTENHAM 
Willoughby Lane, Tottenham, London N17 0SL
WATFORD 
Queens School, Aldenham Road, Bushey WD23 2TY, Hertfordshire
MIDLANDS
BIRMINGHAM 
Salford Stadium, Lichfield Road, Birmingham B6 7TG
COVENTRY 
Woodlands School and Sports College, Broad Lane, Coventry CV5 7FF
HALESOWEN 
Park Road, Halesowen B63 2RG
WEST MIDLANDS
NOTTINGHAM 
Thane Road, Nottingham NG7 2TG
STOKE 
Dennis Viollet Road, Off Stanley Mathews Way, Trentham Lakes,  
Stoke ST4 4TN
NORTH ENGLAND
BARNSLEY 
Kendray Playing Fields, Kendray, Barnsley S70 3JR
BOLTON 
Leverhulme Park, Long Lane, Bolton BL2 6BZ
GATESHEAD 
Ropery Road, Gateshead NE8 2HD
LIVERPOOL 
2 Whittle Street, Liverpool L5 2SQ
MANCHESTER	 CENTRAL	 20 Union Street, Manchester M12 4JD
MANCHESTER	 SOUTH	 Powerleague at Range Stadium, 11-18 High School, 
Wilbraham Road, Manchester M16 8GW
SHEFFIELD 
Woodburn Athletic Stadium, 3 Stadium Way, Sheffield S9 3HL
STOCKPORT 
Craig Road, Heaton Mersey, Stockport SK4 2AP
WARRINGTON 
William Beamont Sports College, Long Lane, Warrington WA2 8PX
SCOTLAND
GLASGOW 
1 Kennedy Street, Glasgow G4 0PN
HAMILTON 
67b Bothwell Road, Hamilton ML3 0DW
KILMARNOCK 
Former Kirkstyle Cricket Ground, Queens Drive, 
Kilmarnock KA1 3XF, Ayrshire
PAISLEY 
Anchor Grounds, Blackhall Street, Paisley PA1 1TD
PORTOBELLO 
10 Westbank Street, Portobello, Edinburgh EH15 1DR
SIGHTHILL 
66 Bankhead Drive, Sighthill, Edinburgh EH11 4EQ
WALES
CARDIFF	 Manor Way, Cardiff CF14 1RF
Powerleague Group plc 
Annual Report and Financial Statements for the year ended 30 June 2007
60 Auditors
Ernst & Young LLP
George House
50 George Square
Glasgow 
G2 1RR
Bankers
Bank of Scotland plc
123 St Vincent Street
Glasgow 
G2 5EA
Solicitors
Osborne Clarke LLP
One London Wall
London 
EC2Y 5EB
Crutes LLP
Great North House
Sandyford Road
Newcastle Upon Tyne
NE1 8ND
Nominated Adviser and Broker
Cenkos Securities Limited
6.7.8 Tokenhouse Yard
London 
EC2R 7AS
Registrars
Computershare Investor Services plc
PO Box 82
The Pavilions
Bridgwater Road
Bristol 
BS13 8FB
Registered Office
Powerleague Soccer Centre
Pursley Road
Mill Hill
London 
NW7 2BB
Registered Number
5384840
We offer our customers the option of competitive 
league matches, corporate tournaments or social  
play within an environment of excellent service and 
first-class facilities. We continue to focus on increasing 
our national brand presence to meet local and 
regional demand for small-sided football. In addition 
we are extending our relationships with a growing 
number of superb sponsors, blue-chip companies  
and major brands wishing to align themselves with  
grass-roots football and our customer base.
Powerleague Group plc is the market-leading 
operator of premium quality, purpose-built  
5-a-side football centres in the United Kingdom.
  Contents
	 1	 Highlights
	 2	 Chairman’s 	 Statement
	 4	 Chief 	 Executive’s	 Report	 	10	 Financial 	 Review
	12 	 	 Board 	 of	 Directors
	13 	 	 Corporate 	 Governance
	14 	 	 	Statement	 of	 Directors’	 	 responsibilities	 in	 Respect	 	 of	 the	 Financial	 Statements
	15	 Directors’ 	 Report
	18	 	Remuneration	 Report
	20	 	Independent	 Auditors’	 Report
	21 	 	 Financial 	 Statements
	26	 	Notes	 to	 the	 Financial	 Information
	54	 	Notice	 of	 Annual	 General	 Meeting
	60	 Our 	 Centres	 IBC	 Advisers
Advisers Annual Report and Financial Statements
for the year ended 30 June 2007
Powerleague Group plc
The Champions of 5-a-side
Powerleague Group plc
Anchor Grounds
Blackhall Street
Paisley PA1 1TD
0141 887 7758
www.powerleagueplc.com
Powerleague Group plc    Annual Report and Financial Statements for the year ended 30 June 2007