NOTES TO THE FINANCIAL STATEMENTS continued
| 21. Pension commitments (continued) | |||
| History of experienced gains and losses | |||
2007 |
2006 |
2005 |
|
| Difference between expected and actual return on scheme assets: | |||
| Amount (£m) | 1.1 |
0.1 |
2.4 |
| Percentage of scheme assets | 6% |
1% |
18% |
| Experience gains and losses on scheme liabilities: | |||
| Amount (£m) | (0.1) |
– |
(0.2) |
| Percentage of the present value of the scheme liabilities | 1% |
0% |
(2%) |
| Total amount recognised in statement of total recognised gain and losses: | |||
| Amount (£m) | 3.4 |
0.6 |
(1.0) |
| Percentage of the present value of the scheme liabilities | 21% |
3% |
(6%) |
| 22. Related parties |
In 2000 the RFU established a subsidiary company, Twickenham Experience Limited (‘TEL’), and assigned to that company the rights to provide catering and hospitality services at Twickenham Stadium. The share capital of TEL at 30 June 2007 was 52.5% RFU, 40.0% Compass Services (UK) Limited (‘Compass’) and 7.5% Hamsard five thousand and eighteen Limited.
The RFU has leased certain areas of Twickenham Stadium for £0.1m (2006: £0.1m) per annum for 15 years to TEL.
During the year the RFU received £1.4m (2006: £1.4m) from TEL in respect of ticket revenue and royalties, and paid £1.3m (2006: £1.7m) in respect of catering services. The Group also paid £4.9m (2006: £5.4m) in respect of provisions, staff costs, royalties and other services to Compass and its subsidiary companies.
At 30 June 2007 a balance of £4.5m (2006: £0.1m) was owed to the RFU by TEL and is shown in amounts owed by group undertakings in the Parent balance sheet; also, an amount of £0.1m (2006: £1.0m) was owed by the RFU to TEL and is shown in amounts owed to group undertakings in the Parent balance sheet. Both these amounts have been eliminated on consolidation from the Group balance sheet.
At 30 June 2007 a balance of £0.2m (2006: £0.1m) was owed to the Group by Compass in respect of operating activities and is shown in trade debtors in the Group balance sheet. At 30 June 2007 a balance of £1.5m (2006: £1.1m) was owed to the RFU by Churchill Cup Rugby LP, a USA registered partnership that administers the annual Churchill Cup tournament in North America. This is shown in debtors falling due after one year in the Group and Parent balance sheets.
At 30 June 2007, a provision for impairment of the loan to associate of £0.9m (2006: £nil) has been made against the balance owed by Churchill Cup LP.
During the year the RFU paid £0.1m (2006: £0.1m) to England Rugby Limited and £5.0m (2006: £5.0m) to Premier Rugby Limited which owns 50% of England Rugby Limited; this amount is included in allocations to clubs and Constituent Bodies in the Group profit and loss account.
At 30 June 2007 a loan balance of £nil (2006: £0.1m) plus annual interest of £nil (2006: £0.6m) was owed to the RFU by Premier Rugby Limited at an interest rate of 6%, providing base rate is not less than 5% and not more than 7%, otherwise at base rate. The loan and interest was repayable before 30 June 2007 and is shown in other debtors within one year in the Group and Parent balance sheets.
At 30 June 2007 there were operating balances of £0.6m (2006: £1.2m) owed by the RFU to Premier Rugby Limited and £1.2m (2006: £1.7m) owed by Premier Rugby Limited to the RFU. These are shown in trade creditors and trade debtors, respectively in the Group and Parent balance sheets.
At 30 June 2007 a balance of £0.1m (2006: £0.6m) was owed by the RFU to the Rugby Facilities Foundation Limited, a fund to improve Premiership Clubs’ grounds and facilities. This is shown in trade creditors in the Group and Parent balance sheets.
During the year, the RFU paid £0.4m (2006: £0.1m) to England Rugby Travel Limited in respect of travel expenses.