Heart of Midlothian plc th AGM

Heart of Midlothian plc

111th AGM

19th December 2017

Agenda

1. Chairman’s Welcome and Opening Remarks

2. Formal BusinessAdopting 2016-17 AccountsRe-appointing Directors to the BoardRe-appointing AuditorsAuthorising Auditor remunerationQuestions relating to the formal business

3. Performance Update

4. General Questions and Answer Session

Chairman’s Statement

2016/17 Season

On the footballing side:

• Europa League matches in Estonia and Malta

• Changes in the coaching team (departure of Robbie & Stevie and the recruitment of Ian & Austin)

• Top 6 finish in the Premier League

• Development of new scouting & recruitment models

• Continued investment in the Academy• Project Brave • Performance School

2016/17 Season

On the business front:

• Opening of our Museum last September

• Completion of Wheatfield Undercroft development including new changing facilities

• Relocation of offices, retail space and Big Hearts last November

• Demolition of admin building / ticket office in December

• Commencement of new main stand build whilst being ‘football operational’ in January

• Demolition of Archibald Leitch stand in May

2016/17 Season

Underpinning all of this:

Fans & Benefactors support

• Continuation of our unique Save the Children relationship

• Significant growth in the work done by our charity – Big Hearts

• Continuation of investment both on and off the field

Financial SummaryBudget

2016/17£’000

Actual2016/17£’000

Revenue 10,400 11,300

Staff Costs 5,600 5,900

Overheads 4,700 5,400

Gain on player sales + loanincome

- 500

Profit (EBITDA) 100 500

Exceptional Donation - 2,500

FOH Monies 1,500 1,500

2017/18 Season:The Story So Far

The Story So Far:

The Story So Far:

The Story So Far:

The Story So Far:

The Story So Far:

The Story So Far:

The Story So Far:

TRP – State of PlayPhase 1 Completion Status Targeted Completion

Reception Area 100%

Directors Suite 100%

Players Lounge 100%

Seating 100%

Concourse Facilities 90% 21st January 2018

Media Facilities 90% 27th December 2017

Hospitality – Lounge 1 100%

Hospitality – Lounge 2 90% 21st January 2018

TRP – State of Play

Phase 2 Target Date

Supporters Bar ASAP

Police facilities 21st January 2018

Plant Room 30th March 2018

Nursery facilities 27th April 2018

3rd Floor Restaurant 27th April 2018

Shop 30th June 2018

TRP – State of Play

Phase 3 Plan

Changing Rooms } Re-designed / planned

2nd Floor facilities } during

Community facilities } January 2018

TRP – Funding

Source Phase 1£’m

Phase 2 / 3£’m

Club Resources 4.25 0.5

Benefactors 4.0 0.5

FOH 2.5 0.5

Supporter ContributionSchemes / Fundraising

0.5 0.5

Facility 1.25 0.5

TOTAL 12.5 2.5

2017/18 : To Summarise

• Growing supporter base

• Continuing investment in Community, CSR & Heritage

• Business partnership growth & diversification

• Realising the benefits of youth investment

• Amazing new stand

• Tynecastle Park returns!

How far we have come in just over 3 years

Formal Business

Finance Update

Revenue Growth

6,550 6,982

9,967

11,25511,800

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2014 2015 2016 2017 2018

Revenue (£'000)

2014

2015

2016

2017

2018

Controlled Growth

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2014 2015 2016 2017 2018

Revenue

Staff Costs

Overheads

2016/17 – KPI’s

2015/2016 Actual£’000

2016/17Actual£’000

Players cost as a % of Turnover 29% 27%

Players cost as a % of total Staff Costs 58% 57%

2016/17: Sales Mix

Gate Receipts38%

Commercial24%

Football Monies23%

Sponsorship7%

Other Income7%

Donations1%

Financials: 2017/18Actual

2016/17£’000

Budget2017/18£’000

Revenue 11,300 11,800

Staff Costs 5,900 6,300

Overheads 5,400 5,400

Gain on player sales + Loan income

500 -

Profit (EBITDA) 500 100

Exceptional Donation 2,500 -

FOH Monies 1,500 1,500

Football Update

Heart of Midlothian plc

111th AGM

19th December 2017

Questions?