The

Everton
Football Club
Company Limited

Annual Report
and
Statement of Accounts
at 31 May 1978
No Pac;€
2
THE
EVER1~ON FOOTBALL CLUB
COM PANY LIMITED

NOTICE OF MEETING

NOTICE IS HEREBY GIVEN that the Directors

Ninety-ninth Annual General Meeting of T. H. W. Scott, Chairman
the Company will be held at the offices of P. D. Carter, Vice-Chairman
The Everton Football Club Company Limited, J. C. Sharp
Goodison Park, Liverpool L4 4EL, on G. A. Watts
Thursday the 3rd day of August, 1978, at A. W. Waterworth, J.P.
7.00 p.m, to receive and consider the Report K. M. Tamlin
of the Directors, and the Accounts for the J. Search
period ended 31st Ma~'t 1978. to elect
Directors, to appoint Auditors for the ensuing
year, and to fix their remuneration, and to
transact any other business which may be
transacted at the Ordinary General Meeting
of the Company. Secretary and Registered Office
The Transfer Books of the Company will J. GreenwooL'l.
be closed until 4th August, 1978. Goodison Park, Liverpool L4 4EL

By Order of the Board.

J. GREENWOOD, Secretary,
Goodison Park, Liverpool L44EL.
Manager
4th July, 1978. G. F. Lee

Admission on Presentation
of Annual Report
Notice is also gi\ en that a Member of the Bankers
Company entitled to attend and vote at the
above Annual General Meeting is entitled Midland Bank Limited
to appoint a proxy to attend and vote instead
of him, and that the proxy need not be a
member of the Company.
Proxies must be lodged at the Registered
Office of the Compeny, not less than Auditors
48 hours bef"e the time of the Meeting. Rogers, Bowler & Co.

3
THE
EVERTON FOOTBALL CLUB
COMPANY LIMITED
CHAIRMAN'S REPORT
1 have much pleasure in submitting the
Annual Report and Accounts.
The past season saw a further marked
improvement in results. but again n.; trophies
captured. In the League we had to be satisfied
with third place - and, more importantly. a place
in Europe - 1:"-';\ ~or the greater part of the season
we stood a close second to the very worthy
champions, Nottingham Forest.
The first half of the season. In fact. saw us
have one of our finest runs of success -- 22 games
without defeat - but at Christmas our challenge
for the League title faultered for a spell and we
bowed out of the F.A. Cup In the fourth round
and the League Cup In the fifth round.
The prize whir n did not elude us however
was a place in the UEFA Cup In our centenary
season and we look forward keenly to this return
to European competition after three years'
absence.
Gordon Lee's enthusiasm and commitment
hrve found echoes throughout the club and
players at all levels have given overything to their
preparation and performances. In directing and
motivating the playing staff so well Mr. Lee has
been ably assisted by Steve Burtenshaw, Jim
McGregor. Eric Hal rison. Colin Harvey. Ray
Mlnshull and Harry Cooke.
Movements of senior players during the
year were again few in number, but the three main
signings made by Mr. Lee since I last reported
have all been unqualified successes. Our hopes
for the start of the season were given a great
boost by the arrival of Dave Thomas, from Queens
Park Rangers, and George Wood. from Blackpool,
and then at the end of October, Trevor Ross was
signed from Arsenal.
All three quickly won the approval of our
fans for their skills and demeanour on the field.
George Wood must have gone very close to
4
gaining a place ,1 Scotland's World Cup party.
Dave Thomas produced the service from the
flanks that Bob Latchford had needed so much
and Trevor Ross brought additional skill and bite
to our midfield. The other new arrival was John
Anderson from Stalybrldge.
Mention of Bob Latchford brings me to the
exciting finale to our season. For months our
striker had looked the player most likely to 11ft the
Dally Express prize of £10.000 for 30 goals In the
season, but he stili needed two goals when we
came to the final game with Chelsea. I am sure we
aJl shared the delight uf Bob and his team mates
when he got those two goals In our 6-C wIn and
then went on to play for England In the HOJnA
International tournament and against Hungary.
On the departure front we said goodbye to
Ronnie Goodlassl who moved to the Dutch club
Breda: Bruce Rioch, who after a short stay with
us returned to Derby County: Steve Searqeant,
who joined the U.S. Club Detroit Express; Dai
Davies who went to Wrexham and played a key
role in their cup run and promotion success;
Bryan Hamilton (Mlllwall) i Mike Bernard (Oldham
Athletic) and Ken McNaught (Aston Villa).
The Improvement In our League
performances was reflected in the attendances at
Goodison Park which showed a very substantial
and welcome increase to an average of more than
39,500, the fourth highest In the First Division.
The Increased attendances not only resulted
In improved gate receipts but the Income from the
other associated footballing activities and our
trading operations showed a very considerable
improvement and the overall increase in our
income was £195.017. Our expenditure excluding
uanster fees, increased by £167.240, but the major
portion of this was in respect of the lncreasei,
bonuses paid to playing staff as a result of the
improved playing results. The nett amount
expended on transfer fees during the year was
£421168. but in line with past practice the
Directors considered it prudent to create an
additional reserve of £250,000 In the year's accounts
to cover at least part of the expenditure which In
their opinion will be lncu rred in Improving the
squad to meet the additional requirements of
European competition The nett result is a profit
on the years operations of £184.
The expe.idlture of £238.814, which we were
compelled to incur during the year under the
Safety of Sports Grounds Legl::ilation, has been
capitalised and any future grants from the
Football Grounds Improvement Trust In respect
of this expenditure will be offset In future years.
Once again the Commercial Department
made a valuable contribution to the Club's Income
with a wide range of activities, including match
sponsorship, in which we made a successful start
during the season under review and which we will
~~velop very considerably during the coming
season.
Our Bank position shows a dramatic
improvement from an overdraft of £317,760 last
year, to a credit balance of £61.244. Whilst an
increase of £129,618 in advance Season Ticket
sales is partly responsible for this improvement,
the position is very encouraging and enables us
to look forward to the coming season with a Iligh
degree of confidence.
Last year I mentioned the cloud on our
horizon in the form of the Safety of Sports Ground
Act. Just how forbidding the requirements of this
new legislation covering ground safety turned out
to be can be gauged from the fact that when all the
agreed ground improvements, Including the
fencing of the pitch, are complete we will have
paid out in the region of £300.000.
In this work, much of which had to be done
while the season was in progress, we received
.remendous co-operatl on from our architects and
contractors, and from the local authorities whose
job it is to administer the Act. Goodison Park was
already one of the country's finest grounds
before all this work commenced; now it must be
second to none both in comfort and safety.
This report would not be complete without
some words of thanks to some of the many
people who work so conscientiously for this Club.
I have received the strongest support at all times
from my fellow directors, especially Mr. Philip
Carter (Vice-Chairman), the officials of the Club,
and Mr. John Moores has continued to provide
shrewd advice and the generous availability of his
Organisation's resources.
Once again our supporters did us proud on
many a field, giving Mr. Lee and the team a degree
of encouragement which never faltered. The value
of this support Is immense; whatever their
numbers our fans really make themselves heard
on away grounds and the players draw great
strength from this.
Finally, a brief look ahead. The coming
season is a very special one for us - our
Centenary Season. Other League Clubs have
already reached their century but Everton still
proudly lead on several scores. No club has
played mON) First Division matches, or scored
more First L"ivision goals, or amassed more First
Division polr.ts, In an "all time Football League
table" we are ihe champions and the official club
history, to be published In September, will tell the
whole story.
But a proud past is one thing. a successful
present and future is altogether different in
todays highly competitive environment. However,
we now have a strong squad, a first class
management team, superb ground facilities and a
chance to show what we can do in Europe. Our
hope must be that the Everton Centenary season
will indeed be one to remember.
T. H. W. SCOTT
Chairman
4th July 1978
5
THE
EVERTON FOOTBALL CLUB
COMPANY LIMITED

REPORT OF THE DIRECTORS

,,"

The profit for the year to 31st May, 1978 The amount of Stock In the Company in which
amounted to £184. The Directors do not the Directors at the end of the Financial Year
recommend the payment of a dividend. were then interested, according to the
register kept by the Company for the purposes
Directors of Section 2.7 of the Companies Act 1967 are
At no time during the last financial year has: shown below. No other interests of these
1. Any Director of the Company had directly Directors In Stock of the Company were
or indirectly any material Interest ln any recorded In the register at that date.
Contract with the Company of significance
In relation to the Company's business 1st June 31st May
requiring disclosure under Section 16 (1) (c) 1977 1978
of the Companies Act, 1967.
Mr. T. H. W. Scott 3 3
2. The Company been a party to any
Mr. P. D. Carter 3 3
arrangement to enable Directors of the
Company to acquire benefits by means of
Mr. J. C. Sharp 3 3
Mr. G. A. Watts 3 3
the acquisition of stock in the Company
or any other Body Corporate.
Mr. A. W. Waterworth, J.P. 3 3
Mr. K. M. Tamlin 3 3
Mr. J. Search 3 3

The following Members of the Board of

Directors retire In accordance with the
Company's Article'S and, being eligible, offer
themselves for re-election:
Mr. G. A. Watts
Mr. A. W. Waterworth, J.P.

Nominations have been received on behalf of:

Mr. D. A. B. Newton
Mr. P. L. Parry. J.P.

6
Principal activity Auditors
The principal activity of your Company Messrs Roc"rs, Bowler & Co. have intimated
continues to be that of a Professional their willingness to continue as Auditors of the
Footbail League Club. Company If re..elected.

Fixed assets
Full details of the changes to the Fixed Assets
are shown in Notes on the Accounts. In view
of the specialised use of the Freehold Land
and Buildings at Goodison Park. the Directors
are unable to give an indication of the
difference between market and book value.
It is considered that the market value exceeds
the value included in the Balance Sheet.

Charitable and political

contributions,
There where no charitable or political
contributions made during the year.

T. H. W. SCOTT,
Chairman

4th July, 1978.

7
THE
EVERTON FOOTBALL CLUB
COMPANY LIMITED

INCOME AND EXPENDITURE ACCOUNT f

for the year ended 31 May 1978
l
1978 1977
£ £

Income
Gate receipts and Income from
related footballing activities 1,025.348 945,511

Trading and other Income 266,480 151,300

£1,291.828 £1,096,811

Expenditure
Salaries, wages and other payroll costs 678,571 543,213
Transfer fees (net). including reserve (Note 5) 292,168 358,966
Training, travel, match and other expenses 154,548 161,539
Ground expenses and maintenance 51,983 28,543
Utilities 88,737 80,411
Depreciation 10,020 9,777
Auditors' remuneration 31200 2,800
Other administrative expenses 271303 20,839

£1,306,530 £1,20B,088 (
Surplus/(Deficit) carried to
I
Profit and Loss J~ccount £(14 1702) £(109,277)
 THE
EVERTON FOOTBALL CLUB
COMPANY LIMITED

f PROFIT AND LOSS ACCOUNT

{ for the year ended 31 May 1978

1978 1977
£ £

Surplus/(Deficit) from
Income and Expenditure Account (14.702) (1091277)

Add: Interest received 16,639 6,565

Exceptional income (Note 3) 2,851

1,937 (99,861)

Deduct: Interest paid (1,753) (14,165)

184 (114,026)

Taxation (Note 4)

Profit/(Loss) after taxation

transferred to Reserves £184 £(114,026)

{
,t

9
THE
EVERTON FOOTBALL CLUB
COMPANY LIMITED

BALANCE SHEET
as at 31 May 1978
Fixed Assets 1978 1977
Freehold land, buildings, equipment £ £ £ £
and motor vehicles, at cost, less
amounts written off (Note 1) 694.971 550,612

Current Assets
Stocks (Note 2) 8,062 41863
Sundry debtors 272,363 292/37
Cash at bank 61.244
Cash in hand 3,679 3,869
345.348 301 ,469
---
1,040.319 852,081

Less: CUl'rent Liabilities

and Provisions
Bank overdraft 317,760
Sundry creditors 524.104 268J290
524,104 586,050

Net Assets £516,215 £266,031

Financed by
Capital and Reserves
Share capital (authorised and issued)
2,500 £1 stock units, fully paid 2,500 2,500
Reserves (Note 5) 513,715 263,531

£516.215 £266,031

Signed on behalf ofthe Board

T. H. W. SCOTT} Directors.
G. A. WATTS

10
 THE
EVERTON FOOTBALL CLUB
COMPANY LIMITED

STATEMENT OF THE SOURCE AND APPLaCATION OF FUNDS

for the year ended 31 May 1978

1978 1977
£ e £ £
Source of Funds
Profitj(Loss) before tax 184 (114,026)
Adjustment for Items not using funds -
Depreclatio n 10,020 9,777
,.
Transfer to Transfer Fees Reserve 250,000

Funds from day..to..day operations 260,204 (104,249)

Movements in fixed assets 72,854

Total funds from all sources 260,204 (31,395)

Application of Funds
Movements in fixed assets 154,379

105,825 (31,395)

Movements in working capital:

Increase (decrease) in stocks 3,199 722
Increase (decrease) in debtors (20.374) 193,719
.. Decrease (increase) in creditors (255,814) (125,009)
(272,989) 69,432

Increase (decrease) in net liquid funds £378,814 £(100,827)

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

£378,814 £(100,827)

11
THE
EVERTON FOOTBALL CLUB
COMPANY LIMITED

NOTES ON THE ACCOUNTS

for the year ended 31 May 1978
1. Fixed Assets Freehold land Stands. Safety
and buildings fixtu res etc. works Vehicles Totals

Cost or valuation £ £ £ £ £
At 1 st June 1977 88.416 588.103 7,387 683.906
Additions (see below) (92,746) 238.814 10,327 156.395
Disposals (4,130) (4,130)

At 31 st May 1978 88.416 4951357 238.814 13,584 836.171

Depree iati 0 n
At 1st June 1977 27.720 102,030 31544 133,294
Provided during year 7,011 3,009 10.020
On disposals (2,114) (2,114)

At 31 st May 1978 27.720 109.041 4.439 141,200

Net book value at

31st May 1978 60.696 386.316 238.814 91145 6941971

Donations received from the various Everton development associations have been app\ied in
reduction of the cost of stands etc. in accordance with undertakings given between the Club
and the associations.
Expenditure under the heading of safety works was incurred in order to meet the requirements
of the Safety of Sports Grounds Act 1975.
No depreciation is provided on land. buildings. stands and fixtures and fittings therein including
safety works. Other fixed assets, including vehicles. are depreciated at 25% per annum on the
book value.
2. Stocks
Stocks consist of refreshments and souvenirs and have been valued at the lower of cost or net
realisable value.
3~ Exceptional Items 1978
£
Profit (Loss) on sale of property

12
4. Taxation
There is no charge to Corporation Tax for the year.

5. Reserves 1978 1977

Transfer fees reserve £ £
Balance at 1st June 1977:
Transferred from Profit and Loss
Account in respect of future
expenditure authorised by the
Directors 250,000

Balance at 31st May 1978 £250,000

General reserves
Balance at 1st June 1977 263,531 377,557
Profit (Loss) for the year 184 (114,026)

Balance at 31st May 1978 £263,715 £263,531

Total reserves £513,715 £263,531

6. Employees' Emoluments
The number of employees earning over £10,000 per annum was as follows:-
1977/78 1976/77
Between £10,001 and £12,500 4 9
Between £12,501 and £15,000 5 4
Between £15.001 and £17,500 2 1
Between £17,501 and £20,000 1 2
Between £20,001 and £22,500 4 None
Between £22,501 and £25,000 1 None
Between £25,001 and £27,500 2 None

7. Future Capital Expenditure 1978 1977

Amount contracted for but not
provided for in these accounts £66,547 Nil
Amount authorised by the Directors
but not yet contracted for £17,700 Nil

REPORT OF THE AUDITORS TO THE MEMBERS OF THE EVERTON FOOTBALL CLUB COMPANY LIMITED
In our opInion, the Accounts set out on pages 8 to 13, which have been prepared under the historical cost convention. give, on
that basis, 8 true and fair view of the state of the Company·s affairs at thQ31st May 1978and of Its proflt and source and application
of funds for the year ended on that date. and comply with the Companies Act 1948 and 1967.
SIgned ROGERS, BOWLER & CO•• Chartered Accountants. 27th June,1978

13
THE
EVERTON FOOTBALL CLl'B
COMPANY LIMITED
MINUTES OF THE 98TH ANNUAL \-it:NERAL MEETING HELD AT GOODISON PARK, LIVERPOOL ON
THURSDt,Y, 4th AUGUST 1977 AT 7.00 P.M.
Present: Messrs. T. H. W. Scott (in the Chair), J. C. Sharp, G. A. Watts, A. W. Waterworth, J.P.,
K. M. Tamlln and J. Search (Dlreciors), J. Greenwood (Secretary), G. F. Lee (Manager), P. B. Bowler
(representing Messrs. Rogers, Bowler & Co., Audilors). together with 89 Shareholders.
An apology for absence was received rrorn
Mr. P. D. Carter (Director).
NorlCE OF MEETING:
It was agreed that the notlce convening the
meeting should be ta~E..!l ac read.
PRESS:
The Chairman reported that the press were
present and it was agreed that they should remain
in attendance. .
MINUTES:
The Chairman reported that the minutes of the
97th Annual General Meeting had been circulated,
Mr. W. Davies proposed that the..e be signed as a
true record. This was seconded by Mr. G. Bailey
and unanimously agreed.
CHAIRMAN'S REPORT
The Chairman's report having been circulated
was taken as read. The Chairman then referred to
the retirement from the Board of Directors of
Mr. John Moores. The Chairman presented Mr.
Moores with a sliver salver to mark his retirement
and on behalf of everyone connected with Everton
F.C. expressed thanks for the great contribution he
had made to the success of the Club during his
14 years in office as a Director. On behalf of the
Shareholders Mr. W. Macauley proposed a special
vote of thanks to Mr. John Moores and this was
suitably seconded by Mr. P. L Parry, J.P. Mr.
Moores thanked the Sharehnlders for their good
wishes and assured the Club of his continued
support and assistance.
The Chairman reported that following
Mr. Moores' retirement Mr. J. Search had been
co-opted to fill the vacancy. After an introduction
from the Chairman Mr. Search addressed the
meeting.
14
DIRECTORS' REPORT AND ACCOUNTS:
It was agreed that the Directors' Report and
Accounts should be taken as read. After answering
questions Mr. G. A. Watts proposed that the
Accounts should be adopted. This was seconded
by Mrs. E. Jones and carried unanimously.
DIVIDEND:
Mr. A. W. Waterworth, J.P., proposed that
no dividend should be paid. This was seconded
by Mr. R. E. D. Edwards and carried unanimously.
APPOINTMENT AND REMUNERATION OF
AUDITORS:
Mr. K. M. Tamlin proposed that Messrs.
Rogers, Bowler & Co., be appointed as Auditors
for the ensuing year and their remuneration should
be left for the Directors to decide. This was
seconded by Mr. J. C. Whitley and carried
unanimously.
ELECTION OF DI RECTORS:
Mr. J. C. Sharp was Invited to take the Chair
for this Item. Mr. Sharp reported that the three
retiring Directors were Messrs. T. H. W. Scott,
K. M. Tamil nand P. D. Carter, who were all
eligible and offered themselves for re-election.
The nominations in respect of Mr. D. A. B. Newton
and P. L. Parry, J.P., had been withdrawn. It was
unanimously agreed to take a single resolution for
the re-election of Messrs. Scott, Tamlin and
Carter for a further period of 3 years. This was
proposed by Mr. J. C. Sharp, seconded by Mr.
P. D. Parry, J.P .• and carried unanlmously.
ANY OTHER BUSINESS:
The Chairman answered various questions
put by Shareholders and the Meeting closed with
a vote of thanks to the Directors and Management
proposed by Mr. G. Bailey and seconded by Mr. F.
Mickl esfi eld,