TIDMCCP
RNS Number : 3664E
Celtic PLC
08 February 2018
Celtic plc (the "Company")
INTERIM REPORT FOR THE SIX MONTHS TO 31 DECEMBER 2017
Operational Highlights
-- Currently top of the SPFL Premiership
-- Winners of the Scottish League Cup for the second season in a row
-- 19 home fixtures (2016: 18)
-- Successfully qualified for the Group Stages of UEFA Champions League
-- Secured European football after Christmas by qualifying for
the round of 32 of the Europa League
Financial Highlights
-- Revenue increased by 16.8% to GBP71.5m (2016: GBP61.2m)
-- Profit from trading was GBP23.7m (2016: GBP21.4m)
-- Profit from transfer of player registrations (shown as profit
on disposal of intangible assets) GBP0.5m (2016: GBP2.0m)
-- Profit before taxation of GBP19.5m (2016: GBP18.6m)
-- Profit after taxation of GBP17.4m (2016: GBP18.6m)
-- Period end net cash at bank of GBP30.9m (2016: GBP18.6m)
Celtic plc
CHAIRMAN'S STATEMENT
I am pleased to report on our interim results for the period
ended 31 December 2017. These show revenue of GBP71.5m (2016:
GBP61.2m) and a profit from trading of GBP23.7m (2016: GBP21.4m).
Overall this resulted in a profit before taxation of GBP19.5m
(2016: GBP18.6m) and a period end net cash at bank of GBP30.9m
(2016: GBP18.6m). The introductory page to these interim results
summarises the main highlights.
We are delighted with the sustained period of success on the
pitch, as Brendan Rodgers, his backroom team and the players have
built on their achievements of last season. They are to be
congratulated on qualification for the group stages of the UEFA
Champions League for a second successive season, for retaining the
League Cup and for the record breaking 69 game domestic unbeaten
run. At the time of writing, we sit 8 points clear at the top of
the Scottish Premiership and, as we continue to progress in the
Scottish Cup, we retain the prospect of winning an historic back to
back domestic treble.
During the period we secured the permanent registrations of
Olivier Ntcham and Kundai Benyu, and the temporary registration of
Patrick Roberts. Our profit on disposal of intangible assets of
GBP0.5m (2016: GBP2.0m) largely reflects the transfer of the
registrations of Gary Mackay Steven and Saidy Janko. Subsequently,
during the January 2018 transfer window, we have invested further
by acquiring the permanent registrations of experienced German
Bundesliga defender Marvin Compper, exciting young Scottish talents
Lewis Morgan and Jack Hendry and the temporary registrations of
sought after midfielder Charly Musonda and goalkeeper Scott
Bain.
The Board is committed to a course of investment in the playing
squad so as to be as competitive as we can be within the structure
of Scottish football and on the European stage. With our full
support and encouragement, Brendan seeks to enhance the squad by
the careful acquisition of quality players and the development of
existing players and young talent coming up from our Youth Academy.
Youth Academy graduates James Forrest, Kieran Tierney, Michael
Johnston, Callum McGregor, Calvin Miller and Anthony Ralston have
all contributed to the first team this year. Furthermore, we were
delighted to agree an extended contract with Kieran Tierney, who
has captained Celtic and his country during the season.
The Board is also pursuing initiatives to enhance the Club's
assets at Celtic Park, so as to aid our playing competitiveness, as
in the case of the recent pitch improvements, and to develop and
commercialise the space we occupy, as in the case of our recent
planning application for a hotel, retail store and museum. The
Board's investment policy, nonetheless, recognises the uncertainty
inherent in football, and our long held strategy of operating a
self-sustaining financial model.
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 the year. In this period we will
play fewer home fixtures and revenue from European competition will
be lower. Our key objectives for the remainder of the year are to
win the SPFL Premiership, secure the Scottish Cup and build towards
the European qualifiers in the summer. The Club will also continue
to look at ways in which to develop Celtic Park and the surrounding
area to create a destination and match day experience that all
Celtic fans can be proud of.
Celtic plc
CHAIRMAN'S STATEMENT
Celtic FC Foundation, which sits outwith the Group, continues to
develop its reach and to assist more people in our communities, in
line with the Club's founding principles. Most recently, the 2017
Christmas Appeal raised in excess of GBP230,000, which was split
between local families with children, local old age pensioners,
children's charities, women's aid charities and homeless, refugee
and other vulnerable groups. Following the success of the
Foundation's Lions Legacy campaign, these fantastic achievements
are testament to the hard work and generosity of the Celtic
family.
On behalf of the Board, I thank our fans, shareholders and
partners, whose support is vital as we continue to build for the
future.
Ian P Bankier
8 February 2018
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 condensed set
of financial statements in the interim report for the six months
ended 31 December 2017 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 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 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 Financial Reporting Council 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 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 interim report for the six months ended 31 December 2017 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 8 February 2018
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
Celtic plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTHS TO 31 DECEMBER 2017
2017 2016
Unaudited Unaudited
Note GBP000 GBP000
Revenue 2 71,505 61,229
Operating expenses (before intangible
asset transactions and exceptional
items) 3 (47,815) (39,821)
------------- -------------
Profit from trading before intangible
asset transactions and exceptional
items 23,690 21,408
Exceptional operating expenses - (646)
Amortisation of intangible assets 4 (4,227) (3,849)
Profit on disposal of intangible
assets 482 1,959
Operating profit 19,945 18,872
Finance income 5 47 119
Finance expense 5 (482) (391)
Profit before tax 19,510 18,600
Income tax expense 6 (2,130) -
------------- -------------
Profit and total comprehensive
income for the period 17,380 18,600
------------- -------------
Basic earnings per Ordinary Share 7 18.57p 19.92p
============= =============
Diluted earnings per share 7 12.94p 13.84p
============= =============
Celtic plc
Registered number SC3487
CONSOLIDATED BALANCE SHEET
31 December 31 December
2017 2016
Unaudited Unaudited
Notes GBP000 GBP000
NON-CURRENT ASSETS
Property plant and equipment 56,637 54,998
Intangible assets 8 15,996 13,224
Deferred tax asset 891 -
73,524 68,222
CURRENT ASSETS
Inventories 2,039 1,615
Trade and other receivables 9 15,608 15,972
Cash and cash equivalents 37,410 25,392
--------------- ---------------
55,057 42,979
--------------- ---------------
TOTAL ASSETS 128,581 111,201
=============== ===============
EQUITY
Issued share capital 10 27,123 24,318
Share premium 14,720 14,657
Other reserve 21,222 21,222
Capital reserve - 2,781
Accumulated profits 11,817 6,140
--------------- ---------------
TOTAL EQUITY 74,882 69,118
=============== ===============
LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing loans 6,350 6,550
Debt element of Convertible
Cumulative Preference
Shares 4,216 4,241
Trade and other payables 10,293 -
Provisions 1,082 1,285
Deferred income 86 143
--------------- ---------------
22,027 12,219
--------------- ---------------
CURRENT LIABILITIES
Trade and other payables 17,035 15,930
Current borrowings 304 304
Provisions 709 106
Deferred income 13,624 13,524
--------------- ---------------
31,672 29,864
--------------- ---------------
TOTAL LIABILITIES 53,699 42,083
=============== ===============
TOTAL EQUITY AND LIABILITIES 128,581 111,201
=============== ===============
Approved by the Board on 8 February 2018
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
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
EQUITY SHAREHOLDERS'
FUNDS AS AT 1 JULY
2017 (Audited) 27,107 14,657 21,222 - (5,563) 57,423
Share capital issued 1 63 - - - 64
Reduction in debt
element of convertible
cumulative preference
shares 15 - - - - 15
Profit and total
comprehensive income
for the period - - - - 17,380 17,380
EQUITY SHAREHOLDERS'
FUNDS AS AT 31
DECEMBER 2017 (Unaudited) 27,123 14,720 21,222 - 11,817 74,882
========== =========== =========== =========== ============ ==========
Celtic plc
CONSOLIDATED CASH FLOW STATEMENT
6 months 6 months
to to
31 December 31 December
2017 2016
Note Unaudited Unaudited
GBP000 GBP000
Cash flows from operating activities
Profit before tax 19,510 18,600
Depreciation 881 820
Amortisation 4,227 3,849
Impairment of intangible
assets - 358
Profit on disposal of intangible
assets (482) (1,959)
Net finance costs 435 272
-------------- --------------
24,571 21,940
Decrease in inventories 375 274
(Increase) in receivables (7,028) (5,178)
(Decrease) in payables and
deferred income (364) (5,540)
-------------- --------------
Cash generated from operations 17,554 11,496
Net interest paid (25) (42)
-------------- --------------
Net cash flow from operating
activities 17,529 11,454
-------------- --------------
Cash flows from investing
activities
Purchase of property, plant
and equipment (946) (540)
Purchase of intangible assets (8,874) (5,218)
Proceeds from sale of intangible
assets 5,769 9,833
-------------- --------------
Net cash (used in) / generated
from investing activities (4,051) 4,075
-------------- --------------
Cash flows from financing
activities
Repayment of debt (100) (100)
Dividend on Convertible Cumulative
Preference Shares (473) (487)
-------------- --------------
Net cash used in financing
activities (573) (587)
-------------- --------------
Net increase in cash equivalents 12,905 14,942
Cash and cash equivalents
at 1 July 24,505 10,450
-------------- --------------
Cash and cash equivalents
at period end 11 37,410 25,392
============== ==============
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 2018 and
are unchanged from those used in the Company's annual report for
the year ended 30 June 2017.
The financial information in this interim report for the six
months to 31 December 2017 and to 31 December 2016 has not been
audited, but it has been reviewed by the Company's auditor, whose
report is set out on page 4. Any comparative figures for the year
ended 30 June 2017 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
2017 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 2017 have been
filed with the Registrar of Companies. The auditor's report on
those statutory financial statements was unqualified.
Assessment on adoption of standards not yet effective
At the date of authorisation of this interim report the
following standards were not effective however will be adopted in
accordance with their effective dates. An update as to the Group's
assessment of the impact of each standard is provided below.
IFRS 9: Financial Instruments - A detailed review of the impact
of this standard is in progress and will be completed by the end of
the current financial year, the conclusion of which will be
disclosed in the annual report.
IFRS 15: Revenue from Contracts with Customers - we have
performed a review of the Group's revenue recognition policy for
each activity type and our initial assessment is that on full year
basis any impact on revenue will be immaterial. With regards to
interim reporting, the impact of applying this standard has yet to
be concluded however the assessment will be completed by the end of
the current financial year and disclosure will be made in the
annual report.
IFRS 16: Leases - Based on our assessment, the net impact to the
Group's financial statements is not considered to be material, but
we will recognise the asset value of the operating leases within
assets and a liability reflecting the associated future
obligations. There will also be a reallocation in the Statement of
Comprehensive Income from rental costs to depreciation within
Operating Expenses and to the unwinding of discount charge within
Finance Expense. As this stage the value associated with the above
adjustments has yet to be quantified.
Going concern
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.
Celtic plc
NOTES TO THE FINANCIAL INFORMATION
2. REVENUE
6 months 6 months
to to
31 December 31 December
2017 2016
Unaudited Unaudited
GBP000 GBP000
Football and stadium operations 26,802 22,583
Multimedia & other commercial
activities 34,011 29,917
Merchandising 10,692 8,729
71,505 61,229
============== ==============
Number of home games 19 18
============== ==============
3. TOTAL OPERATING EXPENSES
6 months 6 months
to to
31 December 31 December
2017 2016
Unaudited Unaudited
GBP000 GBP000
Football and stadium operations
(excluding exceptional items
and asset transactions) 40,677 33,682
Merchandising 5,923 4,968
Multimedia & other commercial
activities 1,215 1,171
--------------
47,815 39,821
============== ==============
4. EXCEPTIONAL OPERATING EXPENSES
6 months 6 months
to to
31 December 31 December
2017 2016
Unaudited Unaudited
GBP000 GBP000
Impairment of intangible
assets - 358
Compromise payments on
contract termination - 288
---------------- --------------
- 646
================ ==============
5. FINANCE INCOME AND EXPENSE
6 months 6 months
to to
31 December 31 December
2017 2016
Unaudited Unaudited
Finance income: GBP000 GBP000
Interest receivable on
bank deposits 35 19
Notional interest income
on deferred consideration 12 100
-------------- --------------
47 119
============== ==============
Celtic plc
NOTES TO THE FINANCIAL INFORMATION
5 FINANCE INCOME AND EXPENSE (CONTINUED)
6 months 6 months
to to
31 December 31 December
2017 2016
Unaudited Unaudited
GBP000 GBP000
Finance expense:
Interest payable on bank
and other loans (61) (62)
Notional interest expense
on deferred consideration (134) (40)
Dividend on Convertible
Cumulative Preference
Shares (287) (289)
-------------- --------------
(482) (391)
============== ==============
6. TAXATION
Tax has been charged at 19% for the six months ended 31 December
2017 (2016: 19.75%) representing the best estimate of the average
annual effective tax rate expected to apply for the full year,
applied to the pre-tax income of the six month period. A deferred
tax asset of GBP0.6m has been reversed due to the utilisation of
tax losses. A deferred tax asset of GBP1.5m has been recognised in
respect of short term timing differences and is offset by an
existing deferred tax liability of GBP0.6m relating to accelerated
capital allowances.
7. EARNINGS PER SHARE
Basic earnings per share has been calculated by dividing the
profit for the period of GBP17.4m (2016: GBP18.6m) by the weighted
average number of Ordinary Shares in issue 93,591,020 (2016:
93,374,010). Diluted earnings per share as at 31 December 2017 has
been calculated by dividing the profit for the period by the
weighted average number of Ordinary Shares, Convertible Cumulative
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
2017 2016
Unaudited Unaudited
Cost GBP000 GBP000
At 1 July 34,335 28,244
Additions 6,634 9,497
Disposals (2,591) (5,167)
-------------- --------------
At period end 38,378 32,574
============== ==============
Amortisation
At 1 July 20,408 18,446
Charge for the period 4,227 3,849
Provision for impairment - 358
Disposals (2,253) (3,303)
-------------- --------------
At period end 22,382 19,350
============== ==============
Net Book Value at period
end 15,996 13,224
============== ==============
9. TRADE AND OTHER RECEIVABLES
The decrease of GBP0.4m in receivables from 31 December 2016 to
GBP15.6m is primarily due to the receipt of player receivables
offset
by the value of UEFA receivables and increase in prepaid
costs.
10. SHARE CAPITAL
Authorised Allotted, called
up and fully paid
31 December 31 December
2017 2016 2017 2017 2016 2016
Unaudited Unaudited Unaudited
No No No GBP000 No GBP000
000 000 000 000
Equity
Ordinary Shares of
1p each 223,101 222,869 93,696 937 93,403 934
Deferred Shares of
1p each 647,036 635,145 647,036 6,470 635,145 6,351
Convertible Preferred
Ordinary Shares of
GBP1 each 14,923 14,994 12,936 12,936 13,007 13,007
Non-equity
Convertible Cumulative
Preference Shares of
60p each 18,459 18,543 15,959 9,576 16,043 9,626
Less reallocated to
debt:
Initial debt - - - (2,796) - (2,819)
Capital reserve - - - - - (2,781)
---------- ----------
903,519 891,551 769,627 27,123 757,598 24,318
========== ========== ========== ========== ========== ===========
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
2017 2016
Unaudited Unaudited
GBP000 GBP000
Bank Loans due after more
than one year (6,350) (6,550)
Bank Loans due within one
year (200) (200)
Cash and cash equivalents:
Cash at bank and on hand 37,410 25,392
------------- -------------
Net cash at bank at period
end 30,860 18,642
============= =============
Total net cash, deducting other loans of GBP0.1m (2016: GBP0.1m)
and that arising from the reclassification of equity to debt of
GBP4.2m (2016: GBP4.2m) amounted to GBP26.5m (2016: GBP14.3m).
12. POST BALANCE SHEET EVENTS
Since the balance sheet date, we have secured the permanent
registrations of Marvin Compper from RB Leipzig, Lewis Morgan from
St Mirren and Jack Hendry from Dundee, and the temporary
registrations of Charly Musonda from Chelsea and Scott Bain from
Dundee. We have also permanently transferred the registration of
Liam Henderson to Bari and temporarily transferred the
registrations of first team players Nadir Ciftci to Motherwell,
Lewis Morgan to St Mirren, Kundai Benyu to Oldham Athletic, Erik
Sviatchenko to FC Midtjylland, Scott Allan to Hibernian and Conor
Hazard to Falkirk.
We also temporarily transferred the registrations of development
squad players, Regan Hendry to Raith Rovers, Jamie McCart to Alloa
Athletic, Mark Hill to St Mirren and Joe Thomson to Queen of the
South.
Celtic plc
Directors
Ian P Bankier (Chairman)
Peter T Lawwell (Chief Executive)
Chris McKay (Finance Director)
Thomas E Allison
Dermot F Desmond
Brian D H Wilson
Sharon Brown
Company Secretary
Michael Nicholson
Registered Office
Celtic Park
Glasgow
G40 3RE
Registered Number
SC3487
This information is provided by RNS
The company news service from the London Stock Exchange
END
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