see below or see attachment
Celtic PLC CCP Interim Results
RNS Number : 6659N
Celtic PLC
20 February 2009
20February 2009
CELTIC plc
INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2008
SUMMARY OF THE RESULTS
Operational Highlights
· Currently lead the Clydesdale Bank Premier League.
· Scotland's sole participant in the UEFA Champions LeagueGroup Stage.
· Co-operative Insurance Cupfinalists.
· Continued participation in theHomecomingScottish Cup.
· 15home matches played in the period (2007: 16).
Financial Highlights
· Turnover increased by 10.3% to £46.78m.
· Operating expenses increased by 4.9% to £34.10m.
· Profit from operations of £12.68m (2007: £9.92m).
· Profit before taxation of £8.36m (2007: £10.07m).
· Period endnetbank debtof £0.97m (2007: £3.63m).
· Investment in players of £7.01m (2007: £1.04m).
For further information contact:
| Dr John Reid, Celtic plc | Tel: 0141 551 4235 |
| Peter Lawwell, Celtic plc | Tel: 0141 551 4235 |
| Iain Jamieson, Celtic plc | Tel: 0141 551 4235 |
Celtic plc
CHAIRMAN'S STATEMENT
The challenge facing us in the last 6 months has been to build upon the success of last year amidst the most difficult economic environment that many of us have ever experienced. Far larger organisations than ours have fallen spectacularly from world-leading positions to oblivion or reliance on public funding.
Despite this backdrop, I am pleased to be able to report positively to you on our results for the 6 month period to 31 December 2008. This is a testimony to the hard work and committed support of everyone associated with Celtic; from the Board to the backroom, through management and players, from shareholders to supporters. I want to start by recording my thanks to all of you.
As Scotland's sole representative in the group stages of the UEFA Champions League this season, our revenues for the first six months of this financial year increased by £4.35m, 10.3%, over the same period last year, to £46.78m. Increased pre-season match fees and merchandising sales also contributed to the uplift in revenue, even although we played 15 home games in the period rather than the 16 of last season. The importance of European football has never been more obvious.
Because of your support, our merchandising revenues rose by 6.4% to £10.89m despite the very challenging environment.
The number of season tickets holders is this year at an all time high, with more concessionary tickets sold than ever before, a remarkable achievement in difficult times. Though our numbers are up, the income generated is down as a result of our intentional decision to freeze season ticket prices last year and to introduce new, further concession tickets to encourage a new generation of younger fans and to give something back to our fans to reflect our strong financial results in the previous year. Despite the resultant loss of potential revenue in the short-term, we believe that by doing so we have taken the right decision for our supporters and Celtic's longer-term future.
Our operating expenses also rose over last year by £1.59m to £34.10m, a rise mainly driven by additional wage costs following the changes made to the first team during the summer of 2008. Samaras, Maloney, Loovens, McCourt and Crosas all joined us on permanent contracts, with our investment in the first team squad in the period reaching just over £7m compared with £1.04m the previous year.
At £8.36m our retained profit for the 6 months is £1.70m down on last year's interim figure reflecting exceptional operating expenses not incurred last time, an increase in amortisation following the increased investment in the playing squad and reduced proceeds from player trading. Our net bank debt of £0.97m at the end of the half year compares favourably against last year's £3.63m reflecting the strong trading performance.
Although the coming, second half of the year with fewer home games to play and no further European football will generate less revenue than the first – the normal pattern has been for full year profits to be less than the interims – our midway position nevertheless allowed resources to be made available during the recent transfer window as they have been in past years. However general market conditions and particular circumstances curtailed the product of those endeavours this year.
In the past we have been criticised, and indeed on occasions pilloried, for adopting a careful and business-like approach. We know well that we are much more than just a business, and for many of us supporting Celtic is a way of life. The intense and perfectly understandable hunger for immediate football success that this fuels must always be balanced with the need to ensure that the underlying financial model – and the football success dependent upon it – can be sustained, not just in one year, but year after year. Others in football and elsewhere are finding out just how difficult achieving and maintaining that balance can be.
We know from experience that sound finances are necessary for football success, and vice-versa. While nothing can everbe guaranteed, we havemanaged to achieve this balance in recent times. Success has been delivered consistently on the football field in the last few years, and our financial model is proving to be reasonably resilient.
But football is not immune to wider social changes and we cannot expect not to be affected at some point by the recessionary forces in the wider economy. Therefore we cannot afford to be the least bit complacent and we do not underestimate the challenges that will face us later in the year in both football and in financial terms.
But at this stage of the year our finances are sound, we have everything to play for in the League and Cups, our supporters are strong and our commitment to deliver success remains undiminished.
Dr John Reid20February 2009
Chairman
Celtic plc
INDEPENDENT REVIEW REPORT
INDEPENDENT REVIEW REPORT TO CELTIC PLC
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 2008 which comprises the Consolidated Income Statement, Group Statement of Changes in Equity, Group Balance Sheet, Group Cashflow 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.
This report is made solely to the company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the AIM Rules of the London Stock Exchange.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared using accounting policies consistent with those to be applied in the next annual financial statements.
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.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UKandIreland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in theUnited 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 (UKandIreland) 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 2008 is not prepared, in all material respects, in accordance withthe AIM Rules of the London Stock Exchange.
PKF (UK) LLP
Glasgow
20February 2009
Celtic plc
CONSOLIDATED INCOME STATEMENT
| 6 months to 31 December 2008 Unaudited |
6 months to 31 December 2008 Unaudited |
6months to 31 December 2008 Unaudited |
6months to 31 December 2007 Unaudited |
12 months to 30 June 2008 |
||||
|
CONTINUING OPERATIONS: |
Operations excluding player trading |
Player Trading |
Total |
Total |
Total |
|||
| Note | £000 | £000 | £000 | £000 | £000 | |||
| REVENUE | 2 | 46,785 | – | 46,785 | 42,434 | 72,953 | ||
| OPERATING EXPENSES | (34,103) | – | (34,103) | (32,515) | (64,095) | |||
| PROFIT FROM TRADING BEFORE ASSET TRANSACTIONS AND EXCEPTIONAL OPERATING EXPENSES |
12,682 |
– |
12,682 |
9,919 |
8,858 |
|||
| AMORTISATION OF INTANGIBLE ASSETS |
– | (3,566) | (3,566) | (3,106) | (5,598) | |||
| EXCEPTIONAL OPERATING EXPENSES | 3 | (1,220) | – | (1,220) | – | (3,189) | ||
| PROFIT ON DISPOSAL OF INTANGIBLE ASSETS |
– | 1,046 | 1,046 | 4,121 | 5,695 | |||
| LOSS ON DISPOSAL OF PROPERTY PLANT AND EQUIPMENT | (121) | – | (121) | (168) | (268) | |||
| PROFIT BEFORE FINANCIAL EXPENSES AND TAXATION |
11,341 | (2,520) | 8,821 | 10,766 | 5,498 | |||
| FINANCIAL EXPENSES: BANK LOANS AND OVERDRAFT CONVERTIBLE PREFERENCE SHARES |
4 | (196) (264) |
(395) (305) |
(519) (544) |
||||
| PROFIT BEFORE TAX | 8,361 | 10,066 | 4,435 | |||||
| TAXATION | 5 | – | – | – | ||||
| PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS | 8,361 | 10,066 | 4,435 | |||||
| PROFIT FOR THE PERIOD ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT | 8,361 | 10,066 | 4,435 | |||||
| BASIC EARNINGS PER ORDINARY SHARE | 6 | 9.35p | 11.74p | 5.09p | ||||
| DILUTED EARNINGS PER SHARE | 6 | 6.16p | 7.76p | 3.70p |
Celtic plc
GROUP BALANCE SHEET
| 31 December 2008 |
31 December 2007 |
30 June 2008 |
||||
| Unaudited | Unaudited | |||||
| Notes | £000 | £000 | £000 | |||
| NON-CURRENT ASSETS | ||||||
| Property plant and equipment | 56,006 | 56,860 | 56,315 | |||
| Intangible assets | 7 | 15,292 | 10,847 | 11,862 | ||
| 71,298 | 67,707 | 68,177 | ||||
| CURRENT ASSETS | ||||||
| Inventories | 2,267 | 2,696 | 2,410 | |||
| Receivables | 7,386 | 7,527 | 6,063 | |||
| Cash and cash equivalents | 11,029 | 8,366 | 8,475 | |||
| 20,682 | 18,589 | 16,948 | ||||
| TOTAL ASSETS | 91,980 | 86,296 | 85,125 | |||
| EQUITY | ||||||
| Issued share capital | 8 | 24,204 | 24,112 | 24,122 | ||
| Share premium | 14,309 | 14,205 | 14,205 | |||
| Other reserve | 21,222 | 21,222 | 21,222 | |||
| Capital redemption reserve | 2,686 | 2,777 | 2,766 | |||
| Retained earnings | (12,713) | (15,444) | (21,074) | |||
| TOTAL EQUITY | 49,708 | 46,872 | 41,241 | |||
| LIABILITIES NON-CURRENT LIABILITIES Interest bearing loans |
9 |
12,000 |
12,000 |
12,000 |
||
| Debt element of non-equity share capital | 3,027 | 3,026 | 3,027 | |||
| Deferred income | 540 | 825 | 820 | |||
| 15,567 | 15,851 | 15,847 | ||||
| CURRENT LIABILITIES | ||||||
| Trade and other payables | 15,950 | 12,232 | 16,224 | |||
| Current borrowings | 150 | 154 | 154 | |||
| Deferred income | 10,605 | 11,187 | 11,659 | |||
| 26,705 | 23,573 | 28,037 | ||||
| TOTAL LIABILITIES | 42,272 | 39,424 | 43,884 | |||
| TOTAL EQUITY AND LIABILITIES | 91,980 | 86,296 | 85,125 |
Approved by the Board on20February 2009
Celtic plc
GROUP STATEMENT OF CHANGES IN EQUITY
| Share Capital | Share Premium | Other Reserve | Capital redemption reserve | Retained earnings | Total | |
| £000 | £000 | £000 | £000 | £000 | £000 | |
| EQUITY SHAREHOLDERS' FUNDS AS AT 1 JULY 2007 | 23,452 | 14,129 | 21,222 | 2,440 | (24,514) | 36,729 |
| Share capital issued | 1 |
76 | – | – | – | 77 |
| Transfer to Capital Redemption Reserve | 652 | – | – | 337 | (996) | – |
| Profit for the period | – | – | – | – | 10,066 | 10,066 |
| EQUITY SHAREHOLDERS' FUNDS AS AT 31 DECEMBER 2007 | 24,112 | 14,205 | 21,222 | 2,777 | (15,444) | 46,872 |
| Share capital issued | – |
– | – | – | – | – |
| Transfer from Capital Redemption Reserve | 10 | – | – | (10) | – | |
| Loss for the period | – | – | – | – | (5,631) | (5,631) |
| EQUITY SHAREHOLDERS' FUNDS AS AT 30 JUNE 2008 | 24,122 | 14,205 | 21,222 | 2,766 | (21,074) | 41,241 |
| Share capital issued | 2 |
104 | – | – | – | 106 |
| Transfer from Capital Redemption Reserve | 80 | – | – | (80) | – | – |
| Profit for the period | – | – | – | – | 8,361 | 8,361 |
| EQUITY SHAREHOLDERS' FUNDS AS AT 31 DECEMBER 2008 | 24,204 | 14,309 | 21,222 | 2,686 | (12,713) | 49,708 |
Celtic plc
GROUP CASH FLOW STATEMENT
| 6 months to 31 December 2008 |
6 months to 31 December 2007 |
12 months to 30 June 2008 |
||||
| Note | Unaudited | Unaudited | Audited | |||
| £000 | £000 | £000 | ||||
| Cash flows from operating activities | ||||||
| Profit before tax | 8,361 | 10,066 | 4,435 | |||
| Depreciation | 1,045 | 979 | 1,925 | |||
| Amortisation | 3,566 | 3,106 | 5,598 | |||
| Impairment of intangible fixed assets | – | – | 353 | |||
| Profit on disposal of intangible fixed assets | (1,046) | (4,121) | (5,695) | |||
| Loss on disposal of tangible fixed assets | 121 | 168 | 268 | |||
| Interest expense | 460 | 700 | 1,063 | |||
| Decrease / (increase) in inventories | 143 | 687 | 973 | |||
| (Increase) / decrease in receivables | (2,609) | (1,265) | (123) | |||
| Decrease in payables and deferred income | (3,089) | (1,203) | 2,824 | |||
| Cash generated from operations | 6,952 | 9,117 | 11,621 | |||
| Interest paid | (196) | (395) | (519) | |||
| Net cash flow from operating activities – A | 6,756 | 8,722 | 11,102 | |||
| Cash flows from investing activities | ||||||
| Purchase of tangible fixed assets | (1,587) | (2,994) | (3,605) | |||
| Purchase of intangible fixed assets | (4,519) | (8,480) | (12,254) | |||
| Proceeds from sale of intangible fixed assets | 2,346 | 5,934 | 8,048 | |||
| Net cash used in investing activities – B | (3,760) | (5,540) | (7,811) | |||
| Cash flows from financing activities | ||||||
| Repayment of debt | (4) | (887) | (887) | |||
| Dividends paid | (438) | (935) | (935) | |||
| Net cash (used) / generated in financing activities – C | (442) | (1,822) | (1,822) | |||
| Net increase / (decrease) in cash equivalents A+B+C | 2,554 | 1,360 | 1,469 | |||
| Cash and cash equivalents at 1 July | 8,475 | 7,006 | 7,006 | |||
| Cash and cash equivalents at period end | 10 | 11,029 | 8,366 | 8,475 | ||
Celtic plc
NOTES TO THE FINANCIAL STATEMENTS
1. ThisInterim Report, comprising theConsolidated Income Statement, Group Balance Sheet, Group StatementofChanges inEquity,Group Cash Flow Statementand accompanyingNotes, has been prepared in accordance with the recognition and measurement criteria of IFRS and the AIMRules save that the group has elected not to adopt IAS34, Interim Reports. These IFRSInterim Financial Statementsdo not include all the information required for full IFRS annual financial statements.
The interim results do not constitute the statutory accounts within the meaning of section 435of the Companies Act2006. The financial information in this report for the six months to 31 December 2008 and to 31 December 2007 has not been audited.The comparative figures for the year ended 30 June 2008 are extracted from the Group's audited financial statements for that period as filed with the Registrar of Companies. It does not constitute the financial statements for that period. Those accounts received an unqualified audit report which did not contain anystatement under sections 498(2)or498(3) of the Companies Act2006 anddid not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report.
The auditors have reviewed this Interim Report and their report is set out on page 3.
The accounts for the interim period have been prepared in accordance with the policies which the Group will adopt for its 2009 annual accounts.
2.REVENUE – SEGMENTAL INFORMATION
| 6 months to 31 December 2008 |
6 months to 31 December 2007 |
12 months to 30 June 2008 |
||||
| Unaudited £000 |
Unaudited £000 |
£000 | ||||
| Revenue comprised: | ||||||
| Football and stadium operations | 22,022 | 21,845 | 38,580 | |||
| Multimedia & other commercial activities | 13,869 | 10,350 | 16,092 | |||
| Merchandising | 10,894 | 10,239 | 18,281 | |||
| 46,785 | 42,434 | 72,953 | ||||
| Number of home games | 15 | 16 | 28 |
3.EXCEPTIONAL OPERATING EXPENSES
The exceptional operating expenses of £1.22m (2007: nil) reflect labour and ancillary costs largely arising as the result of onerous contracts.
4. FINANCIAL EXPENSES
|
Payable as follows on: |
6 months to 31 December 2008 |
6 months to 31 December 2007 |
12 months to 30 June 2008 |
|||
| Unaudited £000 |
Unaudited £000 |
£000 | ||||
| Bank Loans and Overdraft | 196 | 395 | 519 | |||
| Non-Equity Shares | 264 | 305 | 544 | |||
| Total | 460 | 700 | 1,063 |
5.TAXATION
After taking account of unutilised tax losses brought forward, together with the projected performance for the next six months, no provision for taxation is required.
6.EARNINGS PER SHARE
Basic earnings per share has been calculated by dividing the earnings for the period by the weighted average number of Ordinary Shares in issue 89,441,921 (2007: 85,726,487). Diluted earningsper share as at 31 December 2008 has been calculatedby dividing the earnings 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, and the full exercise of outstanding share purchase options, if dilutive. As at December 2008,December2007 and June 2008 no account was taken of potential conversion of share purchase options, as these potentialOrdinary Shareswere not considered to be dilutive under the definitions of the applicable accounting standards.
7.INTANGIBLE ASSETS
| 6 months to 31 December 2008 |
6 months to 31 December 2007 |
12 months to 30 June 2008 |
||||
| Unaudited | Unaudited | |||||
| Cost | £000 | £000 | £000 | |||
| At 1 July | 26,526 | 28,982 | 28,982 | |||
| Additions | 7,011 | 1,039 | 5,116 | |||
| Disposals | (3,985) | (4,067) | (7,572) | |||
| At period end | 29,552 | 25,954 | 26,526 | |||
| Amortisation | ||||||
| At 1 July | 14,664 | 15,992 | 15,992 | |||
| Charge for the period | 3,566 | 3,106 | 5,598 | |||
| Provision for impairment | – | – | 353 | |||
| Disposals | (3,970) | (3,991) | (7,279) | |||
| At period end | 14,260 | 15,107 | 14,664 | |||
| Net Book Value at period end | 15,292 | 10,847 | 11,862 |
1. SHARE CAPITAL
| Authorised 31 December |
Allotted, called up and fully paid 31 December |
|||||||||||
| 2008 | 2007 | 2008 | 2008 | 2007 | 2007 | |||||||
| No 000 | No 000 | No 000 | £000 | No 000 | £000 | |||||||
| Equity | ||||||||||||
| Ordinary Shares of 1p each | 219,878 | 211,701 | 89,702 | 897 | 88,495 | 885 | ||||||
| Deferred Shares of 1p each | 485,343 | 438,603 | 485,343 | 4,853 | 438,603 | 4,386 | ||||||
| Non-equity | ||||||||||||
| Convertible Preferred Ordinary Shares of £1 each | 16,071 | 20,000 | 14,084 | 14,084 | 14,558 | 14,558 | ||||||
| Convertible Cumulative Preference Shares of 60p each | 19,294 | 19,299 | 16,794 | 10,077 | 16,799 | 10,079 | ||||||
| Less reallocated to debt under IAS 32 | – | – | – | (5,707) | – | (5,796) | ||||||
| 740,586 | 689,603 | 605,923 | 24,204 | 558,455 | 24,112 | |||||||
9.NON – CURRENT LIABILITIES
Non-current liabilities reflect long-term bank loans of £12.0m (2007: £12.0m) drawn down at the end of the period as part of the Company's bank facility of £36.0m and £3.03m (2006: £3.03m) as a result of the reallocation of non-equity share capital from equity to debt following the introduction of IAS 32 and £0.54m (2007: £0.82m) of deferred income.
10. ANALYSIS OF NET DEBT
The reconciliation of the movement in cash and cash equivalents per the cash flow statement to net bank debt is as follows:
| 31 December 2008 |
31 December 2007 |
30 June 2008 |
||||
| £000 | £000 | £000 | ||||
| Bank Loans | 12,000 | 12,000 | 12,000 | |||
| Cash and cash equivalents | (11,029) | (8,366) | (8,475) | |||
| Net bank debt at period end | 971 | 3,634 | 3,525 |
Total debt, including other loans of £0.15m (2007: £0.15m) and that arising from the reallocation from equity to debt under IFRS 7 of £3.03m (2007: £3.03m) amounted to £4.15m (2007: £6.81m).
11.TRANSFER FEES PAYABLE / RECEIVABLE
Under the terms of certain contracts in respect of the transfer of player registrations, additional amounts will be payable/receivable by the Company if specific future conditions are met. As at 31 December 2008 amounts in respect of such contracts could result in an amount payable of £3.64m of which £2.01m could arise within one year, and amounts receivable of £1.12m all of which could arise within one year.
12.POST BALANCE SHEET EVENTS
Following 31 December 2008, Celtic acquired the registrations of Niall McGinn, Willo Flood and Milan Misun and that ofLukasz Zaluska on a pre-contract agreement while the registration of Rocco Quinn was transferred to Hamilton Academicals FC.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR XBLFLKLBLBBV -0- Feb/20/2009 13:30 GMT