TIDMCCP
RNS Number : 3376E
Celtic PLC
06 February 2015
CELTIC plc (the "Company")
INTERIM REPORT FOR THE SIX MONTHS TO 31 DECEMBER 2014
Operational Highlights
-- Progression to the knock-out stages of the UEFA Europa League
-- Currently top of the SPFL Premiership
-- Continued participation in the Scottish Cup and Scottish League Cup
-- Successful hosting of the Commonwealth Games opening ceremony and SFA International matches
-- Completion of the final phase of development of The Celtic Way
-- 18 home fixtures (2013: 16)
Financial Highlights
-- Revenue decreased by 30.1% to GBP31.3m (2013: GBP44.8m)
-- Operating expenses decreased by 18.2% to GBP28.1m (2013: GBP34.3m)
-- Profit from trading of GBP3.2m(2013: GBP10.5m)
-- Profit on disposal of intangible assets GBP7.1m(2013: GBP16.5m)
-- Profit before taxation of GBP6.6m(2013: GBP21.3m)
-- Period end net cash at bank of GBP5.3m (2013: GBP5.7m)
-- Investment in football personnel of GBP5.7m (2013: GBP5.0m).
-- New long term bank facility agreement.
Celtic plc
CHAIRMAN'S STATEMENT
I am pleased to report on our financial results for the six
months ended 31 December 2014. The introductory page to these
interim results summarises the main highlights.
Since the appointment of our new football management team led by
Ronny Deila, we have embarked upon a period of transition, with the
implementation of new ideas, methods and processes. We moved on
from the disappointment of failing to qualify for the group stages
of the UEFA Champions League to qualify for the last 32 of the UEFA
Europa League and a tie against Inter Milan. As the football team
develops on and off the field, we are pleased to be competing in
four competitions.
The Opening Ceremony of the Commonwealth Games took place at
Celtic Park with great success, leading to worldwide exposure for
our brand, while the stadium also played host to the Scottish
national team in two high profile international matches.
A key factor influencing these results is the participation in
the UEFA Europa League, as opposed to the UEFA Champions League.
Revenue dropped for the period to GBP31.3m (2013: GBP44.8m).
Operating expenses for the period decreased to GBP28.1m (2013:
GBP34.3m), leading to a profit from trading, before asset
transactions and exceptional operating expenses of GBP3.2m (2013:
GBP10.5m). This trading performance, together with a lower gain on
disposal of player registrations of GBP7.1m from GBP16.5m in 2013
are the main causes of the reduction in Profit before Taxation for
the half year to GBP6.6m from GBP21.3m last year.
Given the difficult economic climate and the challenging sector,
it is pleasing that our business model allows us to report net cash
of GBP5.3m as at 31 December 2014, compared to GBP5.7m in 2013,
especially given the capital investment in projects including the
Celtic Way.
Each season, our overwhelming priorities are to win the SPFL
Premiership and to qualify for the group stages of the UEFA
Champions League. The strategy of the Board is to aim to achieve
this objective with prudent investment in the playing squad and by
the continued creation of value through development of players,
both from our youth academy and those identified by our football
development operations.
During the period under review, the registrations of Fraser
Forster and Tony Watt were transferred, while the registrations of
Craig Gordon and Stefan Scepovic were acquired permanently to build
the first team squad, in addition to the loan signings of John
Guidetti, Aleksandar Tonev, Mubarak Wakaso, Jason Denayer and Jo
Inge Berget.
During the January transfer window (after the period end), the
Company successfully attracted three exciting young international
players, Stuart Armstrong, Gary Mackay-Steven and Michael Duffy. In
addition, Beram Kayal, Jo Inge Berget and Filip Twardzik left us
during the window and in thanking them for their service we wish
them well for the future.
In addition to the transfer activity, the contracts of first
team players Scott Brown, Callum McGregor and Darnell Fisher were
all extended during the period, with the contracts of Kris Commons
and Eoghan O'Connell being extended after the period end.
As in previous years, the second half is expected to be more
challenging in terms of financial performance with fewer home
matches scheduled and no certainty on any further gains on the
disposal of player registrations.
Our strategy remains to live within our means. The football
environment in Scotland continues to be challenging and we must
operate within it in a fashion that does not unduly risk the long
term future of this great Club.
Our key focus for the remainder of the year will be to build on
the progress we have made in the first half of the season and to
deliver silverware from competing in the three domestic
competitions and remain competitive in the UEFA Europa
League. Furthermore, we will continue to develop our squad for
the challenges of qualifying for European competition in the
summer.
After another busy spell for the Club, I extend my thanks and
appreciation to Ronny Deila and his backroom staff, all of the
players, executive management and staff, who, together, are
committed to the success of Celtic. Above all, I thank our fans on
whose support the Club relies.
Ian P Bankier 6 February 2015
Chairman
Celtic plc
INDEPENDENT REVIEW REPORT TO CELTIC PLC
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 31 December 2014 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 half-yearly
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
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 half-yearly report be presented and prepared in a form
consistent with that which will be adopted in the company's annual
accounts having regard to the accounting standards applicable to
such annual accounts.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial 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 condensed set of financial statements
in the half-yearly financial report for the six months ended 31
December 2014 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 2015
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
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