TIDMCCP

RNS Number : 8756Y

Celtic PLC

11 September 2015

Celtic PLC

Announcement of Results for the year ended 30 June 2015

SUMMARY OF THE RESULTS

Operational Highlights

   --       Winner of the SPFL Premiership 
   --       Winner of the Scottish League Cup 

-- Participated in the UEFA Europa League, qualifying for the round of 32 stage, playing 7 home European matches (2014: 6)

   --       29 home matches played at Celtic Park (2014: 28) 

-- Successful hosting of the Commonwealth Games Opening Ceremony and SFA International matches

   --       New commercial sponsorship agreements with New Balance and Dafabet 
   --       Completion of the highly acclaimed Celtic Way and Stadium Branding 

Financial Highlights

   --    Group revenue decreased by 21.1% to GBP51.08m 
   --    Operating expenses decreased by 11.1% to GBP53.27m 
   --    Exceptional costs of GBP0.74m (2014: GBP4.66m) 
   --    Gain on sale of player registrations of GBP6.77m (2014: GBP17.05m) 
   --    Loss before taxation of GBP3.95m (2014: profit of GBP11.17m) 
   --    Year-end net cash at bank of GBP4.72m (2014: GBP3.83m) 
   --    Investment in football personnel of GBP9.42m (2014: GBP8.07m). 

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 

CHAIRMAN'S STATEMENT

These results, which show an operating loss of GBP3.6m compared to a profit of GBP11.8m last year, reflect two key factors. First, lower contribution from the sale of player registrations, and second, diminished income from competing in the UEFA Europa League competition. The lower contribution from the disposal of player registrations was as a result of the Board deciding to retain certain registrations to aid and enhance value for the football operations.

The Board remains committed to ensuring that the medium and long-term future of the Club, and the Company, is secured. Having regard to the environment in which we continue to operate, the Board's belief in a self- sustaining financial model has not waivered. We believe that there is no other sensible way to operate. The model is designed to protect the Club from the inherent unpredictability of football. Although the Board is very disappointed not to have secured qualification for the Group Stages of the UEFA Champions League for season 2015/16, that failure does not put at risk the continued operation of the Club. We are confident that our model provides a platform for improved financial performance in the year to 30 June 2016.

The Club's strength and stability off the pitch allows us to give full support to the Football Manager in securing his transfer targets, whilst at the same time continuing to invest in the Youth Academy that will develop our young players for the first team. Disappointed at the outcome of the Champions League qualifier, we look forward with optimism to the season ahead. We wholeheartedly support Ronny Deila and his support staff as they strive to make Celtic stronger on the pitch.

Meanwhile, the Club remains engaged and represented in the Scottish and European game. Peter Lawwell, our Chief Executive, has recently been re-elected on to the board of the European Club Association. In addition, for the forthcoming season Peter remains a member of the board of the Scottish FA and the Association's Professional Game Board. Our Financial Director, Eric Riley, remains a member of the board of the Scottish Professional Football League for the season ahead. Our representation at these levels gives us the facility to continue to explore ways in which the football environment in which we operate can be enhanced.

It is important in the context of this short statement that I should note the achievements of Celtic FC Foundation, which upholds and promotes the charitable principles and heritage of Celtic Football Club. The Foundation is now involved in more educational, community and charitable work than at any time in the Club's history. The Foundation assists those who face challenges, both at home and abroad, in Health, Equality, Learning and Poverty (HELP) and, on behalf of the Board, I congratulate all those involved, whether it be by giving their time or their money, or both, to support the Foundation.

The success of Celtic is dependent on the ongoing support of our colleagues, fans, sponsors, partners and shareholders; the Board is grateful for that support and is committed to promoting and maintaining that success for future generations.

Ian P Bankier

11 September 2015

Chairman

CHIEF EXECUTIVE'S REVIEW

The year to 30 June 2015 was a period of transition for Celtic. Ronny Deila's first season as manager had successes, with Celtic winning the double of the Scottish Premiership and League Cup and progressing to the last 32 of the UEFA Europa League, as well as disappointments, most notably in failing to qualify for the UEFA Champions League Group Stages and losing in the semi final of the Scottish Cup.

Off the pitch, it was also a challenging year. Our decision not to transfer certain players registration during the period, together with failure to progress in the UEFA Champions League, have had a significant impact on revenues and profits.

Our core strategy remains focussed on a football operation with a self sustaining financial model and relies upon: the youth academy; player development; player recruitment; management of the player pool; and sports science and performance analysis, to deliver long term sustainable football success. The Board reviews our strategy on an ongoing basis and, having regard to the environment in which we play, considers that it will continue to deliver stability, growth and success for Celtic. Notwithstanding the decline in revenues and profits, at the end of the financial year our cash at bank position had increased slightly to GBP4.72m (2013:GBP3.83m). This is essential given the challenges of operating in the Scottish football environment and our fluctuating cash requirements during the year to come. Celtic has strong foundations upon which to build.

Last season, the Club won the SPFL Premiership, finishing 17 points ahead of closest rivals Aberdeen, and beat Dundee United in the Scottish League Cup Final. But for losing in the semi-final against Inverness, we may also have gone on to compete in the Scottish Cup Final, coming close to a domestic treble in Ronny Deila's first season in charge. The margins in football are very thin and games can turn on a single incident. Initial results in Europe were disappointing, exiting the UEFA Champions League before the group stage against NK Maribor. In the UEFA Europa League, however, our performances and results improved, leading to qualification from our group. Our performances against Inter Milan were very promising.

It is particularly pleasing to note that our Youth Academy, which is so important to the ethos of the Club, enjoyed another successful year. Our teams experienced domestic successes, including the U17's League and winning both the Youth Cup and the Glasgow Cup against Rangers. Our Development Squad also participated in the inaugural Premier League International Cup, gaining vital experience against the best academies in the English Premiership and Europe. Although the development of the players is paramount, the team performed very well and were unlucky to lose to Manchester City in the quarter finals.

During the year we were delighted to see the continued emergence of first team players from the Academy squads, like Callum McGregor, Eoghan O'Connell, Liam Henderson and Kieran Tierney, which is vital to the future success of the Club. The development of the partnership between the Academy and St. Ninian's High School is a cornerstone of the Youth Academy as we combine the development of talent on the pitch and in the classroom with the target of producing Champions League players with the skills to progress in football and in life.

The redevelopment of Celtic Park and surrounding areas was completed in time for the Opening Ceremony of the Glasgow 2014 Commonwealth Games. I am sure that all Celtic supporters shared my pride as Celtic and our great stadium were broadcast around the world. We are continuing to build on that exposure and the addition of the new Paradise wrap around Celtic Park over the summer has raised the stadium to a new level, creating a truly iconic structure.

The Board and I shared the disappointment of our supporters, football management team, players and all involved with the Club at the poor result in Malmo. Ronny and his coaching team are continuing to build their team and the Board will continue to support them in the transfer market and in the development of the football operation generally. The Board's commitment remains to re-invest every penny received back into the Club for the longer term. Ronny is delighted with the development of the squad in the January and summer transfer windows, with his primary signing targets acquired. Our squad mixes exciting young players, both from our Academy and from across Scotland and Europe, with experienced internationals. As Ronny develops his players and creates our team, we look forward to the forthcoming season with confidence.

(MORE TO FOLLOW) Dow Jones Newswires

September 11, 2015 11:10 ET (15:10 GMT)

My colleagues at the Club and I are dedicated to creating a world class football club. Everything that we do, we do to achieve the best for Celtic. Charity forms a fundamental aspect of the club that we aspire to create. Charity lies at the very heart of Celtic; it is part of our DNA. I am delighted to say that the Club and its supporters does more now than we ever have done for charitable purposes, most notably Celtic FC Foundation, which continues to grow from strength to strength and to inspire all those involved with it. The continued commitment of our supporters, shareholders and partners is crucial; I thank you for that commitment, which we will do all that we can to repay.

Our objectives this year remain success in all three domestic competitions and in the UEFA Europa League, playing creative and exciting football. We will continue to build on the foundations that have been laid and focus on qualification for the group stages of the UEFA Champions League, which is where this great club belongs.

Peter Lawwell

11 September 2015

Chief Executive

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 
                                                       2015                                     2014 
                                       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        51,080            -        51,080        64,736            -        64,736 
 
 Operating Expenses 
  (excluding 
  exceptional 
  operating expenses)             2      (53,268)            -      (53,268)      (59,885)            -      (59,885) 
                                        _________    _________     _________     _________    _________     _________ 
 (Loss) / profit 
  from trading 
  before asset 
  transactions 
  and exceptional 
  items                                   (2,188)            -       (2,188)         4,851            -         4,851 
                                        _________    _________     _________     _________    _________     _________ 
 Exceptional 
  operating (expenses) 
  / credit                        3       (1,001)          261         (740)         (575)      (4,089)       (4,664) 
 
 Amortisation 
  of intangible 
  assets                                        -      (7,313)       (7,313)             -      (5,300)       (5,300) 
 
 Profit on disposal 
  of intangible 
  assets                                        -        6,773         6,773             -       17,052        17,052 
 
 Loss on disposal 
  of property, 
  plant and equipment                       (102)            -         (102)         (101)            -         (101) 
                                        _________    _________     _________     _________    _________     _________ 
 Operating (loss) 
  / profit                                (3,291)        (279)       (3,570)         4,175        7,663        11,838 
                                         ________     ________                    ________     ________ 
 Finance Income                                                          185                                       53 
 
 Finance Expense                                                       (562)                                    (721) 
                                                                   _________                                _________ 
 
 (Loss) / profit 
  before tax                                                         (3,947)                                   11,170 
 
 Income tax 
  expense                         5                                        -                                        - 
                                                                   _________                                _________ 
 
 (Loss) / profit 
  and total comprehensive                                            (3,947)                                   11,170 
  (loss) / profit                                                  _________                                _________ 
  for the year 
 (Loss) / profit 
  attributable 
  to equity holders 
  of the parent                                                      (3,947)                                   11,170 
                                                                    ________                                 ________ 
 Total comprehensive 
  (loss) / income 
  attributable 
  to equity holders 
  of the parent                                                      (3,947)                                   11,170 
                                                                    ________                                 ________ 
 Basic earnings 
  per Ordinary 
  Share from 
  continuing 
  operations 
  and for the 
  year                            6                                  (4.25p)                                   12.21p 
                                                                    ________                                 ________ 
 
 Diluted earnings 
  per share from 
  continuing 
  operations 
  and for the 
  year                            6                                  (4.25p)                                    8.60p 
                                                                    ________                                 ________ 
 

CONSOLIDATED BALANCE SHEET

 
                                           2015      2014 
                                         GBP000    GBP000 
 Assets 
 Non-current assets 
 Property, plant and equipment           55,452      55,594 
 Intangible assets                        8,356       7,197 
                                         63,808      62,791 
                                      =========  ========== 
 
 Current assets 
 Inventories                              2,098       1,696 
 Trade and other receivables             14,740      17,258 
 Cash and cash equivalents               11,770      14,739 
                                      --------- 
                                         28,608      33,693 
                                      =========  ========== 
 
 Total assets                            92,416      96,484 
                                      =========  ========== 
 
 Equity 
 Issued share capital                    24,294      24,357 
 Share premium                           14,573      14,529 
 Other reserve                           21,222      21,222 
 Capital reserve                          2,781       2,695 
 Accumulated losses                    (12,919)     (8,972) 
                                      --------- 
 Total equity                            49,951      53,831 
                                      =========  ========== 
 
 Non-current liabilities 
 Interest bearing liabilities/bank 
  loans                                   6,850       9,844 
 Debt element of Convertible 
  Cumulative Preference Shares            4,262       4,284 
 Provisions                                 907       1,047 
 Deferred income                          2,600          59 
                                      --------- 
                                         14,619      15,234 
                                      =========  ========== 
 
 Current liabilities 
 Trade and other payables                14,579      16,937 
 Current borrowings                         308         485 
 Provisions                                 251         265 
 Deferred income                         12,708       9,732 
                                      --------- 
                                         27,846      27,419 
                                      =========  ========== 
 
 Total liabilities                       42,465      42,653 
                                      =========  ========== 
 
 
 
 Total equity and liabilities            92,416      96,484 
                                      =========  ========== 
 

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 
   2013                      24,341    14,486    21,222     2,650   (20,142)   42,557 
  Share capital 
   issued                         1        43         -         -          -       44 
  Transfer to capital 
   reserve                     (45)         -         -        45          -        - 
 
  Reduction in 
   debt element 
   of convertible 
   cumulative preference 
   shares                        60         -         -         -          -       60 
 
  Profit and total 
   comprehensive 
   income for the 
   year                           -         -         -         -     11,170   11,170 
 
  Equity shareholders' 
   funds 
   as at 30 June 
   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 

(MORE TO FOLLOW) Dow Jones Newswires

September 11, 2015 11:10 ET (15:10 GMT)

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