TIDMCCP
RNS Number : 1533W
Celtic PLC
06 February 2017
Celtic plc (the "Company")
INTERIM REPORT FOR THE SIX MONTHS TO 31 DECEMBER 2016
Operational Highlights
-- Currently top of the SPFL Premiership, having broken the 26
game domestic unbeaten run set by the Lisbon Lions in 1966/67
season
-- Winners of the Scottish League Cup, the club's 100(th) trophy
-- 18 home fixtures (2015: 17) (excluding the International Champions Cup Tournament)
-- Successfully qualified for the Group Stages of UEFA Champions League
-- Became the first stadium in the UK to accommodate 3,000 'safe standing' section
Financial Highlights
-- Revenue increased by 94.7% to GBP61.2m (2015: GBP31.4m)
-- Profit from trading was GBP21.4m (2015: GBP1.6m)
-- Profit from transfer of player registrations (shown as profit
on disposal of intangible assets) GBP2.0m (2015: GBP12.6m)
-- Profit before taxation of GBP18.6m (2015: GBP11.7m)
-- Period end net cash at bank of GBP18.6m (2015: GBP7.7m)
-- Investment in football personnel of GBP9.5m (2015: GBP6.1m)
Celtic plc
CHAIRMAN'S STATEMENT
I am pleased to report on our interim results for the period
ended 31 December 2016. These show revenue of GBP61.2m (2015:
GBP31.4m) and a profit from trading of GBP21.4m (2015: GBP1.6m).
Overall this resulted in a profit before taxation of GBP18.6m
(2015: GBP11.7m) and a period end net cash at bank of GBP18.6m
(2015: GBP7.7m). The introductory page to these interim results
summarises the main highlights.
We welcomed Brendan Rodgers and his backroom team to the Club in
May 2016 to lead us into season 2016/17 amid remarkable scenes at
Celtic Park. Within the period reported, we have achieved our key
objective of qualification for the group stages of the UEFA
Champions League and we have won the League Cup. We also currently
sit 27 points clear at the top of the Scottish Premiership, whilst
we continue to progress in the Scottish Cup with the prospect of
winning our first domestic treble since 2001. The team also reached
two major landmarks during the first half of this season. First, by
securing our 100(th) trophy with our League Cup victory; and,
second, by surpassing the 26 game domestic unbeaten record set by
the Lisbon Lions in the 1966/67 season. We are clearly delighted
with the progress to date and look forward to building on it.
From a financially stable base at the year end, during the
summer transfer window we invested GBP9.5m (2015: GBP6.1m) in the
playing squad with the acquisition of the registrations of Scott
Sinclair, Moussa Dembele, Kolo Touré, Christian Gamboa and Dorus de
Vries. Our profit on disposals of intangible assets of GBP2.0m
(2015: GBP12.6m) largely reflects the transfer of the registration
of Stefan Johansen to Fulham. Subsequently, during the January 2017
transfer window, we have invested further by acquiring the
registration of Eboue Kouassi.
We continue to pursue our strategy of investing in the Youth
Academy. Kieran Tierney, Callum McGregor and James Forrest are all
established first team players and were important contributors in
the group stages of the Champions League. Another prospect, Calvin
Miller, made his debut for the first team in December 2016
following his progression through the Youth Academy and Development
Squad. The Football Manager's stated objective is to develop all
players into Champions League players.
In December 2016 we were also delighted to announce the
appointment of Sharon Brown as a non-executive director to the
Company. Sharon brings a wealth of expertise and business acumen,
especially from the retail sector, which will further enhance the
skill-set of the Board.
The Board is optimistic about our immediate future and firmly
supports the self-sustaining financial model that has served us
well. We continue to seek to influence developments in domestic and
European football through representation on the board of the
Scottish Professional Football League, the European Club
Association Executive Board and the UEFA Club Competitions
Committee.
Looking forward, and entirely in line with our trading
seasonality, we do not expect the same level of financial
performance in the second half of 2017. In this period we will play
fewer home fixtures and no European games. Our objective for the
remainder of the year is to win the SPFL Premiership, secure the
Scottish Cup and build towards the European qualifiers in the
summer.
Off the park, we were proud to become the first club in the UK
to offer 3,000 of our fans the option of viewing domestic matches
in a 'safer standing' environment, with the installation of rail
seating at Celtic Park. This has been very popular with fans and
has attracted much interest from clubs in Scotland and England.
The Celtic FC Foundation, which sits external to the group,
continues to go from strength to strength with its most successful
Christmas Appeal to date. A remarkable total of over GBP220,000 was
raised for its 2016 Christmas Appeal in less than two months
through the collective effort of so many people including
supporters, the Club, the manager, players, directors, trustees,
partners, sponsors and funders. The positive impact that this will
have cannot be underestimated and this great achievement truly
reflects the core principles of the Club.
Going into 2017 we are also organising a series of exciting
celebrations to mark the 50th anniversary of the Club's greatest
triumph, winning the European Cup in Lisbon in 1967. It is
appropriate that we commemorate this unique achievement and the
celebrations will be something for the Lisbon Lions and our fans to
share and to be proud of.
Finally, I would like to once more to extend my thanks and
gratitude to our fans, shareholders and partners. In particular, a
special mention must go to our fans for their overwhelming backing
of Brendan and the team, which I am sure, has played a huge part in
the success enjoyed so far.
Ian P Bankier
6 February 2017
Chairman
For further information contact:
Company
Ian Bankier, Celtic plc Tel: 0141 551 4235
Peter Lawwell, 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.
Celtic plc
INDEPENT REVIEW REPORT TO CELTIC PLC
Introduction
We have been engaged by the Company to review the consolidated
financial information in the interim report for the six months
ended 31 December 2016 which comprises the Consolidated Statement
of Comprehensive Income, the Consolidated Balance Sheet, the
Consolidated Statement of Changes in Equity, the Consolidated Cash
Flow Statement and the related notes.
We have read the other information contained in the interim
report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the consolidated financial information.
Directors' responsibilities
The interim report, including the financial information
contained therein, is the responsibility of and has been approved
by the directors. The directors are responsible for preparing the
interim report in accordance with the rules of the London Stock
Exchange for companies trading securities on AIM which require that
the interim report be presented and prepared in a form consistent
with that which will be adopted in the company's financial
statements having regard to the accounting standards applicable to
such financial statements.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the consolidated financial information in the interim report based
on our review.
Our report has been prepared in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the
rules of the London Stock Exchange for companies trading securities
on AIM and for no other purpose. No person is entitled to rely on
this report unless such a person is a person entitled to rely upon
this report by virtue of and for the purpose of our terms of
engagement or has been expressly authorised to do so by our prior
written consent. Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we
hereby expressly disclaim any and all such liability.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity", issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the consolidated financial information in
the interim report for the six months ended 31 December 2016 is not
prepared, in all material respects, in accordance with the rules of
the London Stock Exchange for companies trading securities on
AIM.
BDO LLP
Chartered Accountants and Registered Auditors
Glasgow
United Kingdom
Date 6 February 2017
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
Celtic plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months to 31 December 6 months to 31 December
2016 2015
Unaudited Unaudited
Operations Operations
excluding excluding
intangible Intangible intangible Intangible
asset asset Total asset asset Total
trading trading trading trading
Note GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 2 61,229 - 61,229 31,443 - 31,443
Operating expenses
(excluding exceptional
operating expenses) 3 (39,821) - (39,821) (29,879) - (29,879)
------------ ------------- ---------- ------------ ------------- ----------
Profit from trading
before asset
transactions
and exceptional
items 21,408 - 21,408 1,564 - 1,564
Exceptional operating
expenses (288) (358) (646) - - -
Amortisation
of intangible
assets 4 - (3,849) (3,849) - (2,266) (2,266)
Profit on disposal
of intangible
assets - 1,959 1,959 - 12,557 12,557
Operating
profit/(loss) 21,120 (2,248) 18,872 1,564 10,291 11,855
============ ============= ============ =============
Finance income 5 119 151
Finance expense 5 (391) (321)
Profit before
tax 18,600 11,685
Income tax expense 6 - -
---------- ----------
Profit and total
comprehensive
income for the
period 18,600 11,685
---------- ----------
Basic earnings
per Ordinary
Share 7 19.92p 12.56p
========== ==========
Diluted earnings
per share 7 13.84p 8.76p
========== ==========
Celtic plc
Registered number SC3487
CONSOLIDATED BALANCE SHEET
31 December 31 December
2016 2015
Unaudited Unaudited
Notes GBP000 GBP000
NON-CURRENT ASSETS
Property plant and equipment 54,998 55,403
Intangible assets 8 13,224 10,855
Trade receivables 9 - 3,966
--------------- ---------------
68,222 70,224
CURRENT ASSETS
Inventories 1,615 1,527
Trade and other receivables 9 15,972 12,294
Cash and cash equivalents 25,392 14,688
--------------- ---------------
42,979 28,509
--------------- ---------------
TOTAL ASSETS 111,201 98,733
=============== ===============
EQUITY
Issued share capital 10 24,318 24,305
Share premium 14,657 14,611
Other reserve 21,222 21,222
Capital reserve 2,781 2,781
Retained earnings 6,140 (1,234)
--------------- ---------------
TOTAL EQUITY 69,118 61,685
=============== ===============
LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing loans 6,550 6,750
Debt element of Convertible
Cumulative Preference
Shares 4,241 4,256
Provisions 1,285 895
Deferred income 143 1,400
--------------- ---------------
12,219 13,301
--------------- ---------------
CURRENT LIABILITIES
Trade and other payables 15,930 12,598
Interest bearing loans and interest
free Executive Club loans 304 308
Provisions 106 169
Deferred income 13,524 10,672
--------------- ---------------
29,864 23,747
--------------- ---------------
TOTAL LIABILITIES 42,083 37,048
=============== ===============
TOTAL EQUITY AND LIABILITIES 111,201 98,733
=============== ===============
Approved by the Board on 6 February 2017
Celtic plc
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Other Capital Retained Total
capital premium reserve reserve earnings
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
EQUITY SHAREHOLDERS'
FUNDS AS AT 1 JULY
2015 (Audited) 24,294 14,573 21,222 2,781 (12,919) 49,951
Share capital issued 1 38 - - - 39
Reduction in debt
element of
convertible cumulative
preference shares 10 - - - - 10
Profit and total
comprehensive income
for the period - - - - 11,685 11,685
EQUITY SHAREHOLDERS'
FUNDS AS AT 31
DECEMBER 2015 (Unaudited) 24,305 14,611 21,222 2,781 (1,234) 61,685
EQUITY SHAREHOLDERS'
FUNDS AS AT 1 JULY
2016 (Audited) 24,316 14,611 21,222 2,781 (12,460) 50,470
Share capital issued 1 46 - - - 47
Reduction in debt
element of convertible
cumulative preference
shares 1 - - - - 1
Profit and total
comprehensive income
for the period - - - - 18,600 18,600
EQUITY SHAREHOLDERS'
FUNDS AS AT 31
DECEMBER 2016 (Unaudited) 24,318 14,657 21,222 2,781 6,140 69,118
========== =========== =========== =========== ============ ==========
Celtic plc
CONSOLIDATED CASH FLOW STATEMENT
6 months 6 months
to to
31 December 31 December
2016 2015
Note Unaudited Unaudited
GBP000 GBP000
Cash flows from operating activities
Profit before tax 18,600 11,685
Depreciation 820 841
Amortisation 3,849 2,266
Impairment of intangible 358 -
assets
Profit on disposal of intangible
assets (1,959) (12,557)
Net finance costs 272 170
-------------- --------------
21,940 2,405
Decrease in inventories 274 571
(Increase) in receivables (5,178) (1,520)
(Decrease) in payables and
deferred income (5,540) (3,092)
-------------- --------------
Cash generated from / (utilised
in) operations 11,496 (1,636)
Net interest paid (42) (39)
-------------- --------------
Net cash flow from operating
activities 11,454 (1,675)
-------------- --------------
Cash flows from investing
activities
Purchase of property, plant
and equipment (540) (1,639)
Purchase of intangible assets (5,218) (4,813)
Proceeds from sale of intangible
assets 9,833 11,590
-------------- --------------
Net cash generated from investing
activities 4,075 5,138
-------------- --------------
Cash flows from financing
activities
Repayment of debt (100) (100)
Dividends paid (487) (445)
-------------- --------------
Net cash used in financing
activities (587) (545)
-------------- --------------
Net increase in cash equivalents 14,942 2,918
Cash and cash equivalents
(including overdraft) at
1 July 10,450 9,370
-------------- --------------
Cash and cash equivalents
(including overdraft) at
period end 11 25,392 12,288
============== ==============
Celtic plc
NOTES TO THE FINANCIAL INFORMATION
1. BASIS OF PREPARATION
The financial information in this interim report comprises the
Consolidated Statement of Comprehensive Income, Consolidated
Balance Sheet, Consolidated Statement of Changes in Equity,
Consolidated Cash Flow Statement and accompanying Notes. The
financial information in this interim report has been prepared
under the recognition and measurement requirements of IFRSs as
adopted for use in the European Union but does not include all of
the disclosures that would be required under those accounting
standards. The accounting policies adopted in the financial
information are consistent with those expected to be adopted in the
company's financial statements for the year ended 30 June 2017 and
are unchanged from those used in the company's annual report for
the year ended 30 June 2016.
The financial information in this interim report for the six
months to 31 December 2016 and to 31 December 2015 has not been
audited, but it has been reviewed by the company's auditors, whose
report is set out on page 4. The comparative figures for the year
ended 30 June 2016 are extracted from the Group's audited financial
statements for that period as filed with the Registrar of
Companies. The financial information for the year ended 30 June
2016 does not constitute the company's financial statements for
that period but is derived from them. The company's statutory
financial statements for the year ended 30 June 2016 have been
filed with the Registrar of Companies. The auditor's report on
those statutory financial statements was unqualified.
The Company has considerable financial resources available to
it, together with established contracts with a number of customers
and suppliers. As a consequence, the Directors believe that the
Company is well placed to continue managing its business risks
successfully and they have a reasonable expectation that the
Company has adequate resources to continue in operational existence
for the foreseeable future. Thus, they continue to adopt the going
concern basis of accounting in preparing the financial information
in this interim report.
The auditor has reviewed this Interim Report and their report is
set out on page 4.
2. REVENUE
6 months 6 months
to to
31 December 31 December
2016 2015
Unaudited Unaudited
GBP000 GBP000
Football and stadium operations 22,583 14,832
Multimedia & other commercial
activities 29,917 9,154
Merchandising 8,729 7,457
61,229 31,443
============== ==============
Number of home games 18 17
============== ==============
3. TOTAL OPERATING EXPENSES
6 months 6 months
to to
31 December 31 December
2016 2015
Unaudited Unaudited
GBP000 GBP000
Football and stadium operations
(excluding exceptional items
and asset transactions) 33,682 24,251
Merchandising 4,968 4,587
Multimedia & other commercial
activities 1,171 1,041
--------------
39,821 29,879
============== ==============
Celtic plc
NOTES TO THE FINANCIAL INFORMATION
4. EXCEPTIONAL OPERATING EXPENSES
6 months 6 months
to to
31 December 31 December
2016 2015
Unaudited Unaudited
GBP000 GBP000
Impairment of intangible 358 -
assets
Compromise payments on 288 -
contract termination
-------------- --------------
646 -
============== ==============
5. FINANCE INCOME AND COSTS
6 months 6 months
to to
31 December 31 December
2016 2015
Unaudited Unaudited
Finance income: GBP000 GBP000
Interest receivable on
bank deposits 19 21
Notional interest income
on deferred consideration 100 130
-------------- --------------
119 151
============== ==============
Finance costs:
Interest payable on bank
and other loans (62) (60)
Notional interest expense (40) -
on deferred consideration
Dividend on Convertible
Cumulative Preference
Shares (289) (261)
-------------- --------------
(391) (321)
============== ==============
6. TAXATION
As at 31 December 2016, the Company has not provided for tax due
to available brought forward losses. Any tax arising based on full
year results to 30 June 2017 will be offset by available losses,
based on the information which the directors have available to them
at this time. A deferred tax asset arising from expected residual
losses at that date is not recognised due to the variable nature of
future financial results in the football sector making it unclear
when those losses might be utilised.
7. EARNINGS PER SHARE
Basic earnings per share has been calculated by dividing the
profit for the period of GBP18.6m (2015: GBP11.7m) by the weighted
average number of Ordinary Shares in issue 93,374,010 (2015:
93,032,839). Diluted earnings per share as at 31 December 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.
Celtic plc
NOTES TO THE FINANCIAL INFORMATION
8. INTANGIBLE ASSETS
6 months 6 months
to to
31 December 31 December
2016 2015
Unaudited Unaudited
Cost GBP000 GBP000
At 1 July 28,244 30,200
Additions 9,497 6,067
Disposals (5,167) (8,742)
-------------- --------------
At period end 32,574 27,525
============== ==============
Amortisation
At 1 July 18,446 21,844
Charge for the period 3,849 2,266
Provision for impairment 358 -
Disposals (3,303) (7,440)
-------------- --------------
At period end 19,350 16,670
============== ==============
Net Book Value at period
end 13,224 10,855
============== ==============
9. TRADE AND OTHER RECEIVABLES
The decrease of GBP0.3m in combined total of non-current and
current receivables from 31 December 2015 to GBP16.0m is primarily
due to the timing of UEFA receipts offset by a reduction in player
transfer receivables.
10. SHARE CAPITAL
Authorised Allotted, called
up and fully paid
31 December 31 December
2016 2015 2016 2016 2015 2015
No No No GBP000 No GBP000
000 000 000 000
Equity
Ordinary Shares of
1p each 222,869 222,666 93,403 934 93,135 932
Deferred Shares of
1p each 635,145 624,816 635,145 6,351 624,816 6,248
Convertible Preferred
Ordinary Shares of
GBP1 each 14,994 15,062 13,007 13,007 13,075 13,075
Non-equity
Convertible Cumulative
Preference Shares of
60p each 18,543 18,605 16,043 9,626 16,105 9,663
Less reallocated to
debt:
Initial debt
Capital reserve - - - (2,819) - (2,832)
- - - (2,781) - (2,781)
---------- ----------
891,551 881,149 757,598 24,318 747,131 24,305
========== ========== ========== =========== ========== ===========
Celtic plc
NOTES TO THE FINANCIAL INFORMATION
11. ANALYSIS OF NET CASH AT BANK
The reconciliation of the movement in cash and cash equivalents
per the cash flow statement to net cash is as follows:
31 December 31 December
2016 2015
GBP000 GBP000
Bank Loans due after more
than one year (6,550) (6,750)
Bank Loans due within one
year (200) (200)
Cash and cash equivalents:
Cash at bank and on hand 25,392 14,688
------------- -------------
Net cash at bank at period
end 18,642 7,738
============= =============
Total net cash, deducting other loans of GBP0.1m (2015: GBP0.1m)
and that arising from the reclassification of equity to debt of
GBP4.2m (2015: GBP4.3m) amounted to GBP14.3m (2015: GBP3.3m).
Included in the cash balance of GBP25.4m is GBPnil (2015:
GBP2.4m) which is on deposit with a maturity date of greater than 3
months at the balance sheet date. The cash and cash equivalents
balance for the purposes of the cash flow statement under IAS 7 is
therefore GBP25.4m (2015: GBP12.3m).
12. POST BALANCE SHEET EVENTS
Since the balance sheet date, we have secured the registration
of Eboue Kouassi from FC Krasnodar while permanently transferring
the registration of Michael Duffy to Dundalk and temporarily
transferring the registrations of first team players Ryan Christie
to Aberdeen, Leo Fasan to Port Vale, Joseph Thomson to Queen of the
South and Kristoffer Ajer to Kilmarnock.
We also temporarily transferred the registrations of development
squad players, Theo Archibald to Albion Rovers, Jamie McCart to
Inverness Caledonian Thistle, Aidan McIlduff to Queens Park and
Broque Watson to Cumbernauld Colts.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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