Celtic Finances
Celtic PLC – Final Results
RNS No 5777h CELTIC PLC 12th August 1997
PRELIMINARY ANNOUNCEMENT- CELTIC PLCCHAIRMAN'S STATEMENT
The financial results in this 1997 Annual Report have met or exceeded your Board's objectives in all areas, and are a credit to our hard working management and staff, and to the loyalty of our customers and supporters. Although the season began with a strengthened player squad, which also benefited from further investment during the year, success on the playing field proved elusive. Our First Team's performance over the year did not reach the hoped for level, and the loss of key matches resulted in no domestic trophies and a lack of progress in Europe. I can assure both shareholders and supporters, however, that the substantial profit earned this year will be reinvested to improve the success of the Club on the field, and the process of strengthening our playing resources will continue. In turn, football success will come hand in hand with our success as a business.
Attendance at Celtic First Team matches rose by 37% to a total of 1,692,558, the majority at Celtic Park where occupancy averaged 92%. Our policy of continuing to invest in a high capacity stadium and improvements to the First Team playing squad is being justified. The addition of 4 new players last season, and 6 more since then, will, I am sure, improve our prospects for success in the near future. As Celtic grows and aspires to compete at a higher level, both domestically and in Europe, I am convinced that the recent change in the way our football activities are managed, is a major step forward. With Jock Brown as General Manager of football operations and Wim Jansen as our Head Coach, along with a well qualified support staff, we believe we have the right structure and the right people. Solid progress has also been made in all areas of Celtic's business:- season tickets remain at the highest level of any British club with a large number of waiting list members- retail sales grew by 35% and an improved shirt sponsorship deal has been secured covering the next 3 years- the South East stand now accommodates all administrative, commercial and football staff in centralised modern offices, while dining and meetings capacity has been increased in the South Stand. – a Celtic Museum and Visitor Centre is now under construction, along with a retail megastore, with openings set for November- Celtic Pools enjoyed a record year and consolidated its position as the most successful fund raiser of any British club. Our determination to return Celtic to the status of a top- level European club brings great pressure and challenges which I welcome because I know they can be met.
In common with most major clubs, we must grow our revenue rapidly to meet the rising costs of player acquisitions and salaries. But we are hindered by the quality and structure of the Scottish domestic game and its limited market. This quality will improve only through a more productive structure for the full time professional clubs. Within the year we intend to start work on the next phase of the rebuilding of Celtic Park. It will be of a scale and quality worthy of Celtic's stature and the strength of our support. During the current year we also intend to start work on an upgraded Training Centre in order to develop the star Celtic players of the future. Please refer to the report on Celtic Charity Fund on page 20.In thanking all those who support Celtic in many ways, I want to commend in particular all who worked on the Fund's projects and who made donations. Celtic's leadership of the Youth Against Bigotry programme, adopted in 100 Glasgow schools, was recently endorsed by the Scottish Minister for Education and Industry to become a project nationally. The Club's campaign also received the Scottish Equality Award from the European Commission. Celtic's business success will help deliver its football success and its long term security, but its stature as a caring institution with an unrivalled history gives us the greatest satisfaction and pride.
Date 11 August 1997 Fergus McCann
| GROUP PROFIT AND LOSS ACCOUNT YEAR ENDED 30 JUNE 1997 | 1997 (£000) | 1996 (£000) |
| TURNOVER | 22,189 | 16,005 |
| OPERATING EXPENSES | (16,290) | (13,270) |
| PROFIT FROM OPERATIONS | 5,899 | 2,735 |
| AMORTISATION OF INTANGIBLE FIXED ASSETS | (3,302) | (1,624) |
| NET GAIN ON SALE OF INTANGIBLE FIXED ASSETS | 2,606 | 58 |
| WRITE DOWN OF INTANGIBLE FIXED ASSETS | – | (2,178) |
| OPERATING PROFIT (LOSS) | 5,203 | (1,009) |
| INTEREST RECEIVABLE AND SIMILAR INCOME | 27 | 91 |
| INTEREST PAYABLE AND SIMILAR CHARGES | (78) | (95) |
| PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATION | 5,152 | (1,013) |
| TAX ON ORDINARY ACTIVITIES | – | – |
| PROFIT/(LOSS) FOR THE YEAR | 5,152 | (1,013) |
| PREFERENCE DIVIDEND | (533) | – |
| RETAINED PROFIT/(LOSS) FOR THE YEAR | 4,619 | (1,013) |
| EARNINGS/(LOSS) PER ORDINARY SHARE | #15.93 | (#3.49) |
| FULLY DILUTED EARNINGS/(LOSS) PER SHARE | #10.83 | (#2.24) |
All amounts relate to continuing operations. There were no gains or losses recognised in 1997 other than the profit for the year.
GROUP BALANCE SHEET 30 JUNE 1997 1997 1996 #000 #000 #000 #000
FIXED ASSETS
Tangible assets 32,606 30,935
Intangible assets 8,958 8,152
_______ _______ 41,564 39,087
CURRENT ASSETS
Stocks 126 212
Debtors 3,367 1,281
Cash at bank and in hand 3,478 67
_______ _______ 6,971 1,560
——— ———
CREDITORS – Amounts falling due within one year (6,223) (3,808)
Income deferred less than one year (6,000) (4,979)
_______ _______ (12,223) (8,787)
——— ———
NET CURRENT LIABILITIES (5,252) (7,227)
_______ _______
TOTAL ASSETS LESS CURRENT LIABILITIES 36,312 31,860
CREDITORS – Amounts falling due after more than one year (305) (472)
_______ _______
NET ASSETS 36,007 31,388
——— ———
CAPITAL AND RESERVES
Called up share capital (includes non-equity) 11,390 11,390
Share premium 17,361 17,361
Profit and loss account 7,256 2,637
_______ _______
SHAREHOLDERS' FUNDS 36,007 31,388
——— ———
Approved by the Board on 11 August 1997
…………………….
Fergus J McCann Director
Eric J Riley Director
NOTE1.THE ABOVE RESULTS FOR THE YEAR HAVE BEEN EXTRACTED FROM THE ANNUAL REPORT AND ACCOUNTS WHICH WILL BE DESPATCHED TO SHAREHOLDERS ON 12 AUGUST 1997.