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Millwall Holdings PLC
09 November 2006


For immediate release 9 November 2006

Millwall Holdings PLC

Board Statement

Business Review
Mr Peter de Savary was appointed non-executive Chairman on 29 November 2005; he
resigned as non-executive Chairman and as a director on 27 October 2006.

Ms Heather Rabbatts CBE was appointed executive Chairman on 27 October 2006.

The 2005/06 season was not a success and the team finished in 23rd place in The
Championship and were relegated to League 1 at the end of the season.

During the year there were a large number of high profile changes with the
arrival and departure of Steve Claridge, Colin Lee and David Tuttle as managers
of the Football Club. On 29 November Peter de Savary became Chairman of both
Millwall Holdings Plc and of the Football Club, handing over the latter position
to Stewart Till on 3 May 2006.

The average home League attendance throughout the season was 9,529 (2005:
11,655) placing the Club in the bottom four of the Divisional attendance League
and two of the Clubs below us in that attendance league were also relegated.
Season ticket sales for the new season are currently 4,719 (2005: 5,416) a
reduction of only 13%. A proactive in-house marketing campaign, utilising a
group of supporters has helped to minimise the effect of relegation on season
ticket sales and we are grateful for their efforts during a difficult period.

During the year a total of 4.9 million (net 4.3 million) was raised by a
placing and open share offer together with a net 1.4 million generated from the
sale and lease back of the Training Ground. Since the year end further private
placings have generated approximately 1.4 million after expenses.

Results
Turnover for the year was 6.2 million (2005: 7.4 million). The fall in
turnover was a direct result of lower match attendances and the fact that during
the 2004/05 season the Club benefited from additional revenue received from
playing in the UEFA Cup against Ferencvaros of Hungary. The loss on ordinary
activities was 4.3 million (2005: 2.8 million) after taking account of 0.5
million profit (2005: 3.2 million profit) on disposal of players'
registrations. Therefore the loss on ordinary activities excluding player
trading was 4.8 million (2005: 6.0 million).

The reduction of staff to 102 from 114 in 2005 was the main reason for the fall
in total staff costs from 8.1 million in 2005 to 6.5 million in 2006. These
figures give rise to a 'Total wages to Turnover' ratio of 104% (2005 - 110%).
The Championship average 'Total wages to Turnover' ratio for season 2004/2005
was 72% (figures for season 2005/2006 are not yet available); our ratio of 104%
is more a consequence of low turnover compared to other clubs than an
excessively high wages bill. For example, average wage costs, per club, in the
Championship in Season 2004/2005 was approximately 9 million (Millwall - 8.1
million), however average turnover per club was 12.4 million (Millwall - 7.4
million). This is an indication of the wages spend required to compete in the
Championship and there is evidence that there is a strong correlation between
the amount a club spends on wages and its final league position each season.

The consolidated profit and loss account for the year is set out on page 3. The
Directors do not recommend payment of a dividend (2005: no dividend).

Prospects
In May 2006 Heather Rabbatts joined as Deputy Chairman with responsibility to
drive forward the Club, Company and the Regeneration plans - 'Sport City'.
Following the departure of Nigel Spackman (Manager of the First Team) from the
Club, Willie Donachie (Assistant Manager) has been taking day to day
responsibility for first team affairs. He is assisted by a back up team which
includes Kevin Dearden as goalkeeping coach, together with the experienced Pat
Holland as Chief Scout, Ade Mafe, the former Olympic Silver Medallist, who has
spent the last ten years as football fitness coach to Chelsea, and Terry
Standring, the Chief Physiotherapist who brings a wealth of experience from
Derby County, Aston Villa and England.


During the close season the training facilities at Bromley were significantly
enhanced and the Board believes they now compare favourably with many offered by
Championship and even Premier League Clubs.

At the end of the 2005/2006 season the Club was faced with the situation where
approximately 50% of the squad would be out of contract on 30 June 2006,
consequently an unprecedented number of new players were brought into the club
to ensure that Millwall FC could field a team with some strength and, more
importantly, the potential to grow over the season.

The focus on the Club's Youth Academy will be increasingly elite with players
being fast tracked according to their ability. There are currently 12 players in
the first team squad who have come through the youth system, with two young
players signing Professional terms during the year.

Off the field of play, the Board recognises the importance of supporter
communication and, for the first time, have an elected fan representative on the
Club Board as well as being in regular dialogue with The Millwall Supporters'
Club.

Commercially, the Group has been discussing with a number of sector consultants
ways of improving the catering and retail activities of the Club. For the first
time the Club has begun a marketing initiative with high visibility across
London utilising poster, train and bus sites to promote the Club's values of
'Real Talent, Real Passion, Real Football.' The campaign, in association with
Viacom UK has seen much high profile media coverage in the Capital's catchment
area. A new ticket system has been introduced giving the Club a more effective
customer-management base from which it can focus future ticketing strategies and
marketing opportunities. Commercial reviews have been completed in the
retailing, conferencing and banqueting areas, with their recommendations being
implemented.

The Club recognises the importance of its profile in the community and it works
closely with the Millwall Community Scheme, a registered charity whose aims are
to provide facilities and activities for sport, recreation and other activities
primarily for Southwark and Lewisham in the interest of social welfare. The Club
has the use of a new indoor football centre forming part of the Community
Facilities (which are next to the Football Club), and this indoor centre also
cements the Club's status as an Academy. The centre not only provides football
facilities for Lewisham and Southwark and for the Club but also for people and
businesses in the City (which is 15 minutes from the ground), Canary Wharf and
other areas of London.

Millwall Football Club has been a pioneering supporter of football's national
'Kick it Out' campaign since 1994, the same year in which its own Anti-Racism
committee was formed. In April 2004, as a result of the Club's positive stance
on the issue of racism, the Football Association chose Millwall to pilot a new
race equality initiative in Lewisham and Southwark. The project was a
partnership between the FA, the Metropolitan Police and Millwall FC, aimed at
creating a greater awareness of racism issues at grassroots level in football
and a structure that enabled people who had suffered or been aware of abuse to
report it. At home games Millwall operates a zero tolerance policy in respect of
racism. Millwall's Anti-Racism Committee became a Charitable trust in 2004 with
Lord Herman Ouseley of Peckham, Chair of 'Kick it Out', as its Patron.

The Board would like to thank players, management and staff for their hard work
throughout last season. The support of shareholders, fans and everyone connected
with the Club has, as ever, been tremendous and to all of them, the Board
extends its thanks.

H Rabbatts
Executive Chairman
9 November 2006

Millwall Holdings PLC
Consolidated Profit and Loss Account
For the year ended 31 May 2006

Unaudited Audited
---------- -------
Operations Year
excluding Ended
player Player 31 May
amortisation Amortization 2005
and trading and trading Total Total

000 000 000 000

Turnover 6,246 - 6,246 7,356
----------- ---------- ------- ----------
Staff costs (6,504) - (6,504) (8,099)
Amortisation of players'
registrations - (244) (244) (653)
Depreciation (366) - (366) (356)
Profit on disposal of players'
registrations - 545 545 3,213
Other administrative expenses (3,700) - (3,700) (4,148)
----------- ---------- ------- ----------
Total expenses (10,570) 301 (10,269) (10,043)
----------- ---------- ------- ----------
Operating loss (4,324) 301 (4,023) (2,687)

Interest receivable and similar
income 3 15
Interest payable and similar
charges (277) (92)
------- ----------
Loss on ordinary activities before
taxation (4,297) (2,764)
Taxation on loss on ordinary activities - -
------- ----------

Retained loss for the year (4,297) (2,764)
======= ==========
Loss per share - basic and diluted (0.057)p (0.047)p
======= ==========

All of the Group's operations were continuing.

There were no recognised gains and losses in the year or the preceding period,
other than the respective profits and losses reported in this Consolidated
Profit and Loss Account.

Millwall Holdings PLC
Consolidated Balance Sheet
31 May 2006

Unaudited Audited
31 May 31 May
2006 2005
000 000
Fixed assets
Intangible assets 66 606
Tangible assets 15,942 16,227
16,008 16,833
Current assets
Stocks 92 112
Debtors 1,694 2,969
Cash at bank and in hand 777 199
2,563 3,280
Creditors: Amounts falling due within one year (3,651) (6,972)
Net current liabilities (1,088) (3,692)
Total assets less current liabilities 14,920 13,141
Creditors: Amounts falling due after more than one year (4,885) (3,133)
Net assets 10,035 10,008

Capital and reserves
Called up share capital 4,171 2,942
Share premium account 11,087 7,992
Capital reserve 21,474 21,474
Profit and loss account (26,697) (22,400)
Shareholders' funds 10,035 10,008


Millwall Holdings PLC
Consolidated Cash Flow Statement
for the year ended 31 May 2006

Unaudited Audited
Year Year
Ended Ended
31 May 31 May
2006 2005
Notes 000 000

Net cash outflow from operating activities 8 (4,326) (3,922)

Returns on investments and servicing of finance
Interest received 3 15
Interest paid (257) (90)
Interest element of finance lease and hire
purchase payments (20) (2)
Net cash outflow from returns on investments and
servicing of finance (274) (77)

Capital expenditure and financial investment
Purchase of tangible fixed assets (55) (32)
Purchase of players' registrations (135) (802)
Proceeds of sale of tangible fixed assets - 12
Proceeds of sale of players' registrations 825 2,282
Net cash inflow from investing activities 635 1,460
Net cash outflow before financing (3,965) (2,539)

Financing
Proceeds from the issue of new shares 4,917 1,000
Associated costs of issuing new shares (592) (25)
Proceeds of sale and leaseback of training ground 1,850 -
Capital element of finance lease and hire purchase
contracts repaid (66) (11)
Net cash inflow from financing 6,109 964
Increase/(decrease) in cash 9 2,144 (1,575)



Notes:

1. The calculation of loss per ordinary share is based on the loss for the
year of 4,297,000 (31 May 2005 loss: 2,764,000) and on 7,540,109,611 (31 May
2005: 5,908,525,523) ordinary shares, being the weighted average number of
ordinary shares in issue and ranking for dividend during the year. There is no
potential dilution on the loss per share (2005: no potential dilution on loss
per share).

2. The audited financial statements will be posted to shareholders by 30
November 2006.

3. The financial information set out above does not constitute the company's
statutory accounts for the years ended 31 May 2006 or 2005, but is derived from
those accounts. The auditors have indicated that they will include an emphasis
of matter paragraph in their audit report with regard to the going concern basis
of preparation of the financial statements, however, their opinion will not be
qualified in this respect. Statutory Accounts for 2005 have been delivered to
the Registrar of Companies. The auditors have reported on those accounts; their
report was unqualified and did not contain statements under the Companies Act
1985, s 237(2) or (3).

4. The accounts for the year ended 31 May 2006 will be delivered to the Registrar
of Companies following the company's annual general meeting.

5. The directors do not recommend the payment of a dividend.

6. The preliminary announcement covers the year ending 31 May 2006.

7. Consistent accounting policies have been applied in preparing the 31 May 2006
figures as were used in preparing the audited results for the Group for the year
ended 31 May 2005.

8. Reconciliation of operating loss to net cash outflow from operating activities

Year Year
Ended Ended
31 May 31 May
2006 2005
000 000

Operating loss (4,023) (2,687)
Depreciation 366 356
Profit on sale of fixed assets - (4)
Amortisation of grants (104) (104)
Amortisation of players' registrations 244 653
Profit on disposal of players' registrations (545) (3,213)
Decrease in stocks 20 45
Decrease in debtors 1,425 1,453
Decrease in creditors and deferred income (1,709) (421)
Net cash outflow from operating activities (4,326) (3,922)


9. Analysis and reconciliation of net debt

31 May Cash Non cash 31 May
2005 flow changes 2006
000 000 000 000

Cash in hand and at bank 199 578 - 777
Overdrafts and short term loans (2,612) 1,566 - (1,046)

(2,413) 2,144 - (269)
Finance leases (16) (1,784) (26) (1,826)

(2,429) 360 (26) (2,095)



9. Analysis and reconciliation of net debt (continued)
Reconciliation of net cash flow to movement in net debt
31 May 31 May
2006 2005

000 000
-------- --------
Increase/(decrease) in net cash in the year 2,144 (1,575)
-------- --------
Cash flow from lease financing (1,784) 11
-------- --------
Inception of new finance leases (26) (20)
-------- --------

-------- --------
Movement in net debt in the year 334 (1,584)
-------- --------
Net debt at 1 June (2,429) (845)
-------- --------
Net debt at 31 May (2,095) (2,429)
======== ========


- ends -


This information is provided by RNS
The company news service from the London Stock Exchange

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