Stimpy 0 Posted February 14, 2011 Share Posted February 14, 2011 Celtic plc Interim Results By: Newsroom Staff on 14 Feb, 2011 13:03 CELTIC plc have today announced the Interim Results for the six months to December 31, 2010. SUMMARY OF THE RESULTS Operational Highlights • Currently first in the Clydesdale Bank Scottish Premier League. • Co-operative Insurance Cup Finalists • Continued participation in the Scottish Cup. • 15 home matches played in the period (2009: 15). Financial Highlights • Turnover decreased by 21.4% to Ã?£28.39m. • Operating expenses decreased by 12.5% to Ã?£27.47m. • Profit on disposal of intangible assets Ã?£13.20m (2009: Ã?£1.04m). • Profit before taxation of Ã?£7.06m (2009: Ã?£1.27m). • Period end bank debt of Ã?£9.09m (2009: Ã?£3.13m). • Investment in football personnel of Ã?£9.00m (2009: Ã?£7.84m). CHAIRMAN’S STATEMENT In previous years, and again last summer, I stressed the importance to our Club of financial stability and participation in Europe, and that commercial and football success cannot be separated. At this time last year we knew we were facing a very difficult season, and so it proved. In turn, that left a legacy of set-back at the beginning of the current season, in dropping out of European competition entirely at an early stage. But while some of the economic and financial issues that we would face as a result could be predicted, we had little inkling of other events which will undoubtedly play a large part in shaping the future of football in Scotland. Your support, throughout quite extraordinary times, has been unwavering. The cold wind of economic recession, combined with the effects of the even colder Scottish winter and our early exit from Europe are reflected in disappointing underlying trading results for the 6 months to 31 December 2010. Group revenue for the period decreased from Ã?£36.11m the year before to Ã?£28.39m, driven mainly by reduced proceeds from ticket sales including European games – 2 European home matches as opposed to 5 (including a Champions League play-off against Arsenal) the year before – a drop in multimedia income, and a decline in merchandising sales. As a result we have seen profit from trading fall to Ã?£0.92m from Ã?£4.71m. In the process we have managed to reduce our total operating expenses, by Ã?£3.92m to Ã?£27.47m, by driving efficiency in our operations, reducing labour costs and other overheads. I remain enormously grateful to everyone who works for the Club for the manner in which they have confronted these difficult economic times. We truly have a dedicated staff. But our business model and results are not wholly dependent on non-football segments; just as football labour costs are a substantial part of our cost base, so too has player trading become increasingly important. We continually seek to improve and refresh the first team squad through development of our own young players, and the introduction of new players from elsewhere. This also means moving on players who we consider are underperforming and selling others who are important to us, if the timing and price are right and/or the individual concerned himself wishes to leave the Club. McGeady, McManus, Boruc, FortunÃ?©, Sheridan and Mizuno left us during this period, and in thanking them for their service we wish them well for the future. The contribution generated from player trading, after allowing for amortisation charges and exceptional operating expenses, more than offset the outcome on our other trading activities and enable us to report an overall profit before taxation in the period of Ã?£7.06m, well up on Ã?£1.27m at the same time in the year before. However, in common with previous years, the second half is expected to be more challenging in terms of financial performance. Nevertheless, our business model has allowed us, even in these difficult economic times, to re-invest in a substantial renewal of our playing staff: Cha, Forster, Hooper, Izaguirre, Juarez, Kayal, Ledley, Majstorovic, Mulgrew, Murphy and Stokes all joining last Summer, and alongside Commons and Ljungberg more recently, contributing to what we hope promises to be a successful rebuilding of our performance and prospects. The Board sanctioned the significant amounts that continue to be invested in the strengthening of our football personnel (Ã?£9.0m) and in the training academy at Lennoxtown, where development continues with a further pitch being built and ongoing investment in technical functions such as scouting, sports science and performance analysis. We remain committed to developing our own home-bred talent and take pleasure at the emergence through our Academy and youth coaching of young players such as Forrest and Towell. Thankfully this policy now appears to be producing the intended objectives; it is encouraging to see the return of attractive, winning football. This is particularly heartening in a squad whose recent performances have increasingly belied a young average age - which augurs well for the longer term. Credit must go to our new manager and his team. At the beginning of the season we faced an enormous challenge on the field as well as off. Neil Lennon, his colleagues and the backroom staff have applied themselves with a diligence and talent which is now beginning to show its rewards. Our net bank debt at 31 December 2010 increased from Ã?£3.13m as at 31 December 2009 to Ã?£9.09m, a level that the Board considers remains manageable, and still provides some flexibility in respect of future investment. Since 31 December 2010 substantial transfer payments have been received, which has reduced our debt. Assuming season ticket revenue receipts for season 2011/12 to be similar to this year, and that other commitments to us are honoured when due, we currently anticipate year end net bank debt will be significantly lower than at the half-year. The approach we have taken to maintaining a sustainable business model, with player investment and a willingness to trade when appropriate becoming increasingly significant elements, leaves us reasonably placed to withstand the continuing sluggish economic environment. But we must also continue to ensure that we are doing all we can to make our underlying trading position healthier. The last 6 months have clearly been a difficult period in economic terms for us, and many others, but this is as nothing compared to the turbulence experienced in the wider arena of Scottish football, and the SFA in particular. I do not intend to rehearse our views on those events once again, but we hope that some good will ultimately come from last Autumn’s spectacle, and that the recommendations for reform made by Henry McLeish will be acted upon resolutely. Significant elements of these accord with the objectives for which we have long campaigned. We welcome the changes that have already taken place, and look forward to further reforms being implemented. And here, once again, I am personally enormously thankful for the tremendous backing and solidarity of our supporters and shareholders. We stood up for what we believed to be right and witnessed the entire Celtic family rallying in support of our manager and our Club. I thank you all. These are challenging times. But it is in adversity that we are most tested and best proven. We have seldom been more united in our determination to succeed, or more focused on our goal of recovering the championship title. Dr John Reid Chairman 14 February, 2011 Correct if I'm wrong, but assuming corporation tax is 26% then that percentage away from their turnover (Ã?£27M) is just over Ã?£7 million? Their debt has increased and the turnover has taken ST sales into account, their full year statement should be grim reading for the orcs since they only have matchday and other income that won't make big inroads left to come in. The sale of players has glossed over the accounts. Next year should be even worse for them since they don't have anyone who could demand such a high transfer fee like aids did. 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,531 Posted February 14, 2011 Share Posted February 14, 2011 A debt of �£9million which they say will be substantially reduced because of transfer fees received? Hmmm, I don't think so. All this shows is that we MUST win the SPL again this season. If we do that (and qualify for the CL group stage) we will be back on an even playing field with them financially. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,601 Posted February 14, 2011 Share Posted February 14, 2011 Correct if I'm wrong, but assuming corporation tax is 26% then that percentage away from their turnover (�£27M) is just over �£7 million? Their debt has increased and the turnover has taken ST sales into account, their full year statement should be grim reading for the orcs since they only have matchday and other income that won't make big inroads left to come in. The sale of players has glossed over the accounts. Next year should be even worse for them since they don't have anyone who could demand such a high transfer fee like aids did. I'd ignore tax. They'll make a loss on the second half of the year, unless they pull another player sale from somewhere and there will be minimal tax payable, if any. Yes, they made a loss of around �£6m, before accounting for player sales. and their debt increased, and it was only the sale of Mcgeady that's kept them going. It's vital that we win the league to keep the pressure on them financially, although they will be looking at it the same way. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,601 Posted February 14, 2011 Share Posted February 14, 2011 A debt of �£9million which they say will be substantially reduced because of transfer fees received? Hmmm, I don't think so. Could be if much of the McGeady cash is received in the second half of the year. 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,531 Posted February 14, 2011 Share Posted February 14, 2011 Could be if much of the McGeady cash is received in the second half of the year. I guess so but they won't have the McGeady cash every year with a bit of luck... 0 Quote Link to post Share on other sites More sharing options...
Stimpy 0 Posted February 14, 2011 Author Share Posted February 14, 2011 I'd ignore tax. They'll make a loss on the second half of the year, unless they pull another player sale from somewhere and there will be minimal tax payable, if any. Yes, they made a loss of around �£6m, before accounting for player sales. and their debt increased, and it was only the sale of Mcgeady that's kept them going. It's vital that we win the league to keep the pressure on them financially, although they will be looking at it the same way. Why ignore the tax? 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,601 Posted February 14, 2011 Share Posted February 14, 2011 I guess so but they won't have the McGeady cash every year with a bit of luck... Correct. They will also have some season ticket cash coming in before the end of the financial year, which will improve the debt position, but not the bottom line. 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted February 14, 2011 Share Posted February 14, 2011 Unless I am missing something shorerd it looks like you are trying to apply the Corp tax rate to turnover, which is obviously wrong. You should be applying the corp tax rate to the PBT (Profit before tax) which is 7.06M - 26% of that is 1.84 million. Being simplistic in the calculation obviously. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,601 Posted February 14, 2011 Share Posted February 14, 2011 Why ignore the tax? Because they'll make a loss on the second half of the year, unless they pull another player sale from somewhere and there will be minimal tax payable, if any. In addition, they may have tax losses available to utilise. The fact that they have not accrued any tax despite making a profit shows that they do not expect to pay any tax this year. Remember tax is payable on profit and not turnover. 0 Quote Link to post Share on other sites More sharing options...
Stimpy 0 Posted February 14, 2011 Author Share Posted February 14, 2011 Cheers lads. They'll make another loss sounds good to me. 0 Quote Link to post Share on other sites More sharing options...
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