TIDMCCP
RNS Number : 2339K
Celtic PLC
19 September 2016
Celtic PLC
Announcement of Results for the year ended 30 June 2016
SUMMARY OF THE RESULTS
Operational Highlights
-- Winner of the SPFL Premiership - 5 in a row
-- Participated in the UEFA Europa League playing 6 home European matches (2015: 6)
-- 28 home matches played at Celtic Park (2015: 29)
-- New shirt sponsorship with Dafabet and Magners
-- Unveiling of Billy McNeill statue
Financial Highlights
-- Group revenue increased by 1.8% to GBP52.0m
-- Operating expenses increased by 7.3% to GBP57.1m
-- Exceptional costs of GBP1.7m (2015: GBP0.7m)
-- Gain on sale of player registrations of GBP12.6m (2015: GBP6.8m)
-- Profit before taxation of GBP0.5m (2015: loss of GBP3.9m)
-- Year-end net cash at bank of GBP3.6m (2015: GBP4.7m)
-- Investment in football personnel of GBP8.8m (2015: GBP9.4m)
For further information contact:
Company
Ian Bankier, Celtic plc Tel: 0141 551 4235
Peter Lawwell, Celtic plc Tel: 0141 551 4235
Iain Jamieson, Celtic plc Tel: 0141 551 4235
Canaccord Genuity Limited, Nominated Adviser
Bruce Garrow Tel: 020 7523 8350
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
CHAIRMAN'S STATEMENT
These results, which show a profit before taxation of GBP0.5m
compared to loss before tax of GBP3.9m last year, in comparable
trading conditions, reflect in large part the increased
contribution during the year from the sale of player registrations.
Following two seasons in which the Club did not qualify for the
Group Stages of the UEFA Champions League, the increased
contribution from player trading enabled the Company to maintain
investment in football operations and to continue to build for the
future.
The Board continues to believe that the Company's self
sustaining financial model provides the necessary stability to
preserve the long term future of the Club and player trading
remains an important element of that model. Allied to player
trading is the creation of the next generation of Celtic stars in
our Youth Academy and I am glad to say that season 2015/16 saw a
great example of that Celtic tradition, with Kieran Tierney
establishing himself in the first team, being rewarded with his
first full international call up for Scotland and being named PFA
Scotland Young Player of the Year.
During the year, Ronny Deila decided to leave the Club at the
end of season 2015/16. Ronny signed off with success, as Celtic
were crowned champions of Scotland at the end of the season, making
it five in a row. On behalf of the Board, I would like to thank
Ronny for his contribution to the Club during his time here and to
wish him the best for the future.
Following an exhaustive recruitment process, the Club was
delighted to announce the appointment of Brendan Rodgers as manager
in May. The scenes at Celtic Park as Brendan was unveiled were
fantastic and created a real sense of optimism for the season
ahead. I am delighted to say that, so far, that optimism has been
realised this season, as the team has qualified for the Group
Stages of the UEFA Champions League and currently sits top of the
SPFL Premiership table playing attractive, attacking football. We
welcome Brendan and his staff to Celtic Park and congratulate them
and the team on the success to date. We will continue to support
them to deliver football success.
The Club remains committed to improving the football environment
in which Celtic plays. At a time of change, it is important that we
continue to be at the forefront of the development of the game.
Peter Lawwell, our Chief Executive, sits on the board of the SPFL,
the European Club Association and the Club Competition Committee of
UEFA. The Club continues to work with clubs and all those involved
in football governance to identify means in which to improve the
game in Europe.
During the year, Eric Riley resigned as Financial Director of
the Company with effect from 31 December 2015. On behalf of the
Board, I would like to thank Eric for his huge commitment to the
Company, his distinguished service over 20 years and his vital role
in the development of the Company and the promotion of the game in
Scotland. Eric remained as a non-executive director until 30 June
2016 to assist with the handover to his replacement, Chris McKay,
and remains a member of the board of The Celtic Football and
Athletic Company. The Board welcomes Chris, who joined from global
consultancy firm, Deloitte.
In closing, I am pleased to say that the year to June 2016 also
saw continued success for Celtic FC Foundation. I thank all those
involved in the operation of the Foundation and in donating time
and money to it, as it is such an important part of what our Club
is all about.
As we look forward with confidence to the year ahead, on behalf
of the Board I thank our supporters, shareholders, sponsors,
partners and colleagues. We all share the same desire - the best
for Celtic. We will continue to strive to deliver that.
Ian P Bankier
19 September 2016
Chairman
CHIEF EXECUTIVE'S REVIEW
On the pitch, the year to 30 June 2016 did not meet with our
expectations. Whilst the SPFL Premiership title was retained, our
performances in the domestic cup competitions and in European
competition were poor, as the Club failed to reach either domestic
cup final and failed to qualify for the Group Stages of the UEFA
Champions League for the second successive season. Off the pitch
the Company returned to profit, mainly as a result of the transfer
of certain player registrations during the period leading to a gain
on sale of player registrations of GBP12.6m (2015: GBP6.8m). This
enables us to continue to deliver long term sustainable football
success in a very challenging environment.
After a more successful first season, Ronny Deila decided to
leave the Club at the end of last season and goes with our best
wishes. His second league title, and the Club's fifth title in a
row, provided a good base for Brendan Rodgers to build on, which he
did by qualifying for the Group Stages of the UEFA Champions
League. In welcoming Brendan and his staff, I must congratulate
them and the team on that achievement, so soon after Brendan's
arrival at the Club. I know that Brendan is committed to bringing
success to the Club and the Board will support him in that effort.
Our objectives during this season remain success in all three
domestic competitions and in the UEFA Champions League.
For a club like Celtic, operating in a market where television
values have fallen significantly behind our neighbours across
Europe, qualification for the Group Stages of the UEFA Champions
League is of paramount importance. The financial rewards allow for
investment in the playing squad and physical assets, but moreover,
the prestige of participating in the premier club competition in
the world reinforces the reach and importance of the Club to so
many people around the world.
Fundamentally, Celtic is a Champions League club; our
infrastructure and continued investment reflect that. At a time
when the direction of travel in European football is towards elite
level clubs, we must remain at the forefront of developments in the
game domestically and across Europe. Celtic should be at the top of
the game in Europe and the Board and I have that objective as a
priority. We continue to work tirelessly on seeking to improve the
football environment in which the Club operates.
We remain of the opinion that our core strategy should remain
focussed on a football operation with a self sustaining financial
model, relying upon: the youth academy; player development with
world class coaching; player recruitment; management of the player
pool; and sports science and performance analysis. The Youth
Academy continues to form an important part of our strategy. This
year the investment made in the Academy and the partnership with St
Ninian's High School continued to deliver positive outcomes, as
Kieran Tierney became a regular in the first team and Aiden
Nesbitt, Joe Thompson, Anthony Ralston and Jack Aitchison all made
competitive first team debuts, with Jack becoming the youngest ever
first team debutant and the youngest player to score in his first
game for Celtic. The ultimate objective, for the players and the
Club, is to create Champions League players, playing the Celtic Way
and this year Kieran made his debut in the competition.
During the year, I was immensely proud to join Billy McNeill and
his family on the Celtic Way to unveil the magnificent statue of
Billy lifting the European Cup. Billy will always embody the Celtic
Way and the statue stands as a fitting tribute to a true Celtic
legend and as inspiration to the next generations of young players
who learn to love the game at Celtic Park.
Celtic supporters continue to support the Celtic FC Foundation
as it develops into one of the most successful club charitable
organisations in the world. That support is not surprising, but it
is not taken for granted. I thank everyone involved in the
continued success of the Foundation.
Nor is the continued success of Celtic to be taken for granted.
It requires hard work and commitment, both on and off the field. I
thank all of my colleagues, our supporters, shareholders and club
partners for all of their efforts in support of such an important
cause.
Peter Lawwell
19 September 2016
Chief Executive
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2016 2015
Operations Operations
excluding excluding
intangible Intangible intangible Intangible
asset asset asset asset
trading trading Total trading trading Total
Note GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
CONTINUING
OPERATIONS:
Revenue 2 52,009 - 52,009 51,080 - 51,080
Operating expenses
(excluding
exceptional
operating expenses) 2 (57,143) - (57,143) (53,268) - (53,268)
_________ _________ _________ _________ _________ _________
Loss from trading
before asset
transactions
and exceptional
items (5,134) - (5,134) (2,188) - (2,188)
Exceptional
operating (expenses)
/ credit 3 (715) (1,006) (1,721) (1,001) 261 (740)
Amortisation
of intangible
assets - (4,953) (4,953) - (7,313) (7,313)
Profit on disposal
of intangible
assets - 12,644 12,644 - 6,773 6,773
Loss on disposal
of property,
plant and equipment (106) - (106) (102) - (102)
_________ _________ _________ _________ _________ _________
Operating (loss)
/ profit (5,955) 6,685 730 (3,291) (279) (3,570)
________ ________ _______ ________ ________ ________
Finance income 350 185
Finance expense (621) (562)
_________ _________
Profit / (loss)
before tax 459 (3,947)
Income tax
expense 5 - -
_________ _________
Profit / (loss)
and total comprehensive
income / (loss)
for the year 459 (3,947)
_________ _________
Profit / (loss)
attributable
to equity holders
of the parent 459 (3,947)
________ ________
Total comprehensive
income / (loss)
attributable
to equity holders
of the parent 459 (3,947)
________ ________
Basic earnings
per Ordinary
Share from
continuing
operations
and for the
year 6 0.49p (4.25p)
________ ________
Diluted earnings
per share from
continuing
operations
and for the
year 6 0.49p (4.25p)
________ ________
CONSOLIDATED BALANCE SHEET
2016 2015
GBP000 GBP000
Assets
Non-current assets
Property, plant and equipment 55,276 55,452
Intangible assets 9,798 8,356
Trade Receivables 3,966 2,291
69,040 66,099
========= =========
Current assets
Inventories 1,889 2,098
Trade and other receivables 14,682 12,449
Cash and cash equivalents 10,450 11,770
---------
27,021 26,317
========= =========
Total assets 96,061 92,416
========= =========
Equity
Issued share capital 24,316 24,294
Share premium 14,611 14,573
Other reserve 21,222 21,222
Capital reserve 2,781 2,781
Accumulated losses (12,460) (12,919)
---------
Total equity 50,470 49,951
========= =========
Non-current liabilities
Interest bearing liabilities/bank
loans 6,650 6,850
Debt element of Convertible
Cumulative Preference Shares 4,242 4,262
Provisions 1,105 907
Deferred income 1,343 2,600
---------
13,340 14,619
========= =========
Current liabilities
Trade and other payables 11,879 14,579
Current borrowings 304 308
Provisions 196 251
Deferred income 19,872 12,708
---------
32,251 27,846
========= =========
Total liabilities 45,591 42,465
========= =========
Total equity and liabilities 96,061 92,416
========= =========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Other Capital Retained
Group capital premium reserve reserve earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Equity shareholders'
funds
as at 1 July
2014 24,357 14,529 21,222 2,695 (8,972) 53,831
Share capital
issued 1 44 - - - 45
Transfer to capital
reserve (86) - - 86 - -
Reduction in
debt element
of convertible
cumulative preference
shares 22 - - - - 22
Loss and total
comprehensive
loss for the
year - - - - (3,947) (3,947)
Equity shareholders'
funds
as at 30 June
2015 24,294 14,573 21,222 2,781 (12,919) 49,951
Share capital
issued 1 38 - - - 39
Transfer to capital
reserve - - - - - -
Reduction in
debt element
of convertible
cumulative preference
shares 21 - - - - 21
Profit and total
comprehensive
income for the
year - - - - 459 459
Equity shareholders'
funds
as at 30 June
2016 24,316 14,611 21,222 2,781 (12,460) 50,470
======== ======== ======== ======== ========= =======
CONSOLIDATED CASH FLOW STATEMENT
2016 2015
GBP000 GBP000
Cash flows from operating activities
Profit / (loss) for the year 459 (3,947)
Depreciation 1,689 1,577
Amortisation of intangible assets 4,953 7,313
Impairment of intangible assets 1,294 378
Reversal of prior period impairment
charge (288) (639)
Profit on disposal of intangible
assets (12,644) (6,773)
Loss on disposal of property,
plant and equipment 106 102
Net finance costs 271 377
--------- ---------
(4,160) (1,612)
Decrease / (increase) in inventories 209 (402)
Decrease in receivables 212 540
Increase in payables and deferred
income 4,695 1,553
--------- ---------
Cash generated from operations 956 79
Net interest paid (91) (75)
--------- ---------
Net cash flow from operating
activities - A 865 4
--------- ---------
Cash flows from investing activities
Purchase of property, plant
and equipment (1,455) (2,656)
Purchase of intangible assets (10,933) (11,239)
Proceeds from sale of intangible
assets 13,261 12,861
--------- ---------
Net cash used in investing activities
- B 873 (1,034)
--------- ---------
Cash flows from financing activities
Repayment of debt (200) (3,169)
Dividends paid (458) (481)
--------- ---------
Net cash used in financing activities
- C (658) (3,650)
--------- ---------
Net increase / (decrease) in
cash equivalents A+B+C 1,080 (4,680)
Cash and cash equivalents at
1 July 2015 9,370 14,050
--------- ---------
Cash and cash equivalents at
30 June 2016 10,450 9,370
========= =========
NOTES TO THE FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
These Financial Statements have been prepared in accordance with
the recognition and measurement principles of IFRS as adopted by
the European Union. The accounting policies have been consistently
applied to both years presented.
2. REVENUE AND TOTAL OPERATING EXPENSES
REVENUE 2016 2015
GBP000 GBP000
The Group's revenue comprised:
Football and Stadium Operations 25,149 27,969
Merchandising 12,577 11,679
Multimedia and Other Commercial
Activities 14,283 11,432
-------- --------
52,009 51,080
======== ========
TOTAL OPERATING EXPENSES 2016 2015
GBP000 GBP000
The Group's operating expenses
comprised:
Football and Stadium Operations
(excluding exceptional items
and asset transactions) 47,173 43,951
Merchandising 7,836 6,995
Multimedia and Other Commercial
Activities 2,134 2,322
57,143 53,268
======== ========
3. EXCEPTIONAL OPERATING EXPENSES
The exceptional operating expenses of GBP1.72m (2015: GBP0.74m)
can be analysed as follows:
Exceptional operating expenses 2016 2015
comprised GBP000 GBP000
Impairment of intangible assets 1,294 378
Reversal of prior period impairment
charges (288) (639)
Onerous employment contracts - 650
Compromise payments on contract
termination 715 351
1,721 740
======== ========
4. DIVIDENDS PAYABLE
A 6% (before tax credit deduction) non-equity dividend of
GBP0.52m (2015: GBP0.52m) was paid on 1 September 2016 to those
holders of Convertible Cumulative Preference Shares on the share
register at 29 July 2016. A number of shareholders elected to
participate in the Company's scrip dividend reinvestment scheme for
the financial year to 30 June 2016. Those shareholders have
received new Ordinary Shares in lieu of cash. No dividends were
payable or proposed to be payable on the Company's Ordinary
Shares.
During the year, the Company reclaimed GBP0.02m (2015: GBP0.09m)
in respect of statute barred preference dividends in accordance
with the Company's Articles of Association.
5. TAX ON ORDINARY ACTIVITIES
No provision for corporation tax or deferred tax is required in
respect of the year ended 30 June 2016. Estimated tax losses
available for set-off against future trading profits amount to
approximately GBP16.08m (2015: GBP16.40m) and, in addition, the
available capital allowances pool is approximately GBP10.25m (2015:
GBP11.25m). These estimates are subject to the agreement of the
current and prior years' corporation tax computations with H M
Revenue and Customs.
6. EARNINGS PER SHARE
2016 2015
GBP000 GBP000
Reconciliation of earnings to
basic earnings:
Net earnings / (loss) attributable
to equity holders of the parent 459 (3,947)
Basic earnings / (loss) 459 (3,947)
======== ========
Reconciliation of basic earnings
/ (loss) to diluted earnings:
Basic earnings / (loss) 459 (3,947)
Non-equity share dividend 521 523
Reclaim of statute barred non-equity
share dividends (19) (91)
Diluted earnings / (loss) 961 (3,515)
======== ========
No.'000 No.'000
Reconciliation of basic weighted
average number of ordinary shares
to
diluted weighted average number
of ordinary shares:
Basic weighted average number
of ordinary shares 93,120 92,774
Dilutive effect of convertible
shares 43,179 43,554
-------- --------
Diluted weighted average number
of ordinary shares 136,299 136,328
======== ========
Earnings per share has been calculated by dividing the profit
for the period of GBP0.46m (2015: loss of GBP3.95m) by the weighted
average number of Ordinary Shares of 93.1m (2015: 92.8m) in issue
during the year. Diluted earnings per share as at 30 June 2016 has
been calculated by dividing the profit for the period by the
weighted average number of Ordinary Shares, Preference Shares and
Convertible Preferred Ordinary Shares in issue, assuming conversion
at the balance sheet date, if dilutive, in accordance with IAS33
Earnings Per Share.
7. ANNUAL REPORT & ACCOUNTS
Copies of the Annual Report & Accounts together with the
Notice and Notes of the 2016 AGM will be issued to all shareholders
in due course.
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 30 June 2016 or 30
June 2015. The Independent Auditors' Reports on the statutory
accounts for 2016 and 2015 were unqualified, did not draw attention
to any matters by way of emphasis, and did not contain a statement
under 498(2) or 498(3) of the Companies Act 2006. The statutory
accounts for 2015 have been filed with the Registrar of Companies
and those for 2016 will be delivered to the Registrar of Companies
in due course.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFLFDUFMSEIU
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