Companies House is the UK government’s official registrar for companies, and is responsible for incorporating, dissolving, and maintaining the public record of limited companies and LLPs in the UK.
As such it provides vital, useful information regarding companies of every size. It is particularly important when one wants to examine private, non-public companies.
Everton Football Club Company, Limited is a private company. Today, 23rd December 2025 the following announcements appeared:
What does it mean?
We need to go to the Company’s Balance Sheet contained within the Annual Report and Accounts to explain. The balance sheet is a record of the assets and liabilities within a business.
For the above, two items are of note, (i) the share premium account and (ii) the profit and loss account.
The share premium account records the amount received by the company from shareholders that is above the subscription price of a share. When shares are issued, they are usually issued at a price above the subscription price, i.e. at a premium.
The profit and loss item in the balance sheet records the company’s performance and how it impacts shareholder value. (If positive it adds to the value, if negative it reduces the size of the balance sheet.)
In the last accounts to 30 June 2024, Everton’s figures are set out below:
Everton’s share premium account stood at a positive £324.9 million, the profit and loss account at a negative £603.7 million. (This was at 30 June 2024 – the next accounts will reflect any new share issues and of course additional profit and loss accounts.)
Company directors can use the share premium account to net off against any deficit in the profit and loss account. In order to do so, this technically becomes a capital reduction which requires (i) a 75% acceptance from shareholders and (ii) a solvency statement issued by directors.
As the documents are not yet available, it’s not possible to say what the amounts are, but today’s announcements are a tidying up of the balance sheet, reducing the aggregate deficit by a corresponding reduction in the share premium account.
This exercise is a balance sheet exercise and does not increase or decrease the cash within the business.
I will update when the figures become available.
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