The scheme has been launched specifically to raise funds that will enable the club to commit to the capital expenditure required to satisfactorily bring the Blackwell Meadows site to FA Ground Grading Category C criteria - a target of £225,000 has been identified.

At the time of launching this scheme at the Fans’ Forum, the Directors were able to confirm that no matters of significance had been brought to their attention by Darlington RFC (DRFC), Darlington Borough Council (DBC) or any other third parties involved with the project that would (i) result in the expected level of capital expenditure exceeding those provided to the Board to date or (ii) suggest the consensual timetable between all parties, structured towards playing home matches back in Darlington from August 2015, should not be delivered.

It is envisaged that the final planning decision will include a number of pre-conditions, as is usual in these circumstances. Some of these work streams are already ongoing and the Directors take additional comfort from the fact that any matters of significance that would potentially put the project and/or its timescales at risk would, by now, have been brought to their attention throughout extensive discussions with DRFC, DBC and other parties over the last 20 months, along with any findings from the pre-planning application made early in 2014.

The cash being raised is primarily being offered in return for packages which include the provision of season tickets that extend up to 5 years, commencing from the start of the 2015-15 season.

For the avoidance of doubt, the Directors have taken all reasonable steps to ensure that the pricing and terms of these packages do not give rise to any matters to suggest that the Club will not continue as a going concern throughout that period, as explained below.

As previously publicised in both the Club’s Annual Accounts to June 2014 and also the Interim Results to December 2014, the Board of Directors maintains a policy of continual review of the Company’s actual performance against forecasts and the associated risks. These forecasts have been extended for a period covering the 5 years from the start of the 2015-16 season and reflect the Club’s current and projected trading performance, capital requirements and potential progression through non-league football.

The forecasts make key assumptions, based on information currently available to the Directors, around:

• Season ticket sales, the timing and amount of which are consistent with the Club’s experience
• Match day income, which is projected to grow steadily as the Club returns to Darlington and progresses through the leagues
• Sponsorship and other commercial income reflecting increasing fan, local business and community confidence returning with the Darlington Football Club brand along with increased match day hospitality demand
• Playing costs reflecting the existing squad size and composition alongside potential increases required to remain competitive as the Club aims to progress through the leagues. The forecast cash flows do not assume any amounts generated from player sales
• Capital requirements associated with the Blackwell Meadows site development

As a result of this continual review, the Directors are able to anticipate potential funding requirements arising in the short and medium term and take proactive measures to engage with the fans, shareholders and other key stakeholders to ensure that the Club remains viable and continues to operate in a sustainable manner.

The Directors have prepared those projections on the going concern basis as it is considered appropriate to presume that the Club will continue in business.  In satisfaction of this responsibility, the Directors have considered the Company's ability to meet its liabilities as they fall due however acknowledge that there is a level of uncertainty in the general economic environment which may impact the trading position of its customers (primarily gate attendances) and suppliers.

After considering the uncertainties referred to above, the Directors have concluded that there is a reasonable expectation that the Heading Home fund raising initiative will provide the Company with adequate financial resource to continue in operational existence for the period of the extended season tickets.

Notwithstanding the above, the Directors consider it their responsibility to highlight the following:

• Fans purchasing any of the Heading Home packages should be fully aware of the commercial risks associated with buying extended season tickets, as outlined above, and
• The Directors of Darlington 1883 Limited have evaluated the situation with the utmost good faith based on all relevant information made available to them at the time of launching the initiative and cannot be held personally responsible should the Club not be able to continue as a going concern throughout the period of the packages being offered as a result of any matters that are subsequently brought to the Board’s attention

The Board of Directors, Darlington 1883 Limited

11 March 2015