REG - Celtic PLC - Interim Report - 31 December 2024
10/02/2025 17:45
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RNS Number : 5858W Celtic PLC 10 February 2025
The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.
Celtic plc (the "Company")
INTERIM REPORT FOR THE SIX MONTHS TO 31 DECEMBER 2024
Key Operational Items
· 14 home fixtures (2023: 14).
· Participation in the UEFA Champions League group stages for both the
Men's and Women's first teams.
· Post period end qualification for the play-off round of the Men's UEFA
Champions League.
· Winners of the Premier Sports Cup 2024.
Key Financial Items
· Revenue reduced by 2.1% to £83.5m (2023: £85.2m).
· Profit from trading before intangible asset transactions was £26.9m
(2023: £32.0m).
· Profit from transfer of player registrations (shown as profit on
disposal of intangible assets) £21.5m (2023: £2.6m).
· Profit before taxation of £43.9m (2023: £30.3m).
· Acquisition of player registrations of £28.1m (2023: £12.9m).
· Period end cash of £65.4m (2023: £67.3m).
For further information contact:
Celtic plc
Peter Lawwell, Celtic plc Tel: 0141 551 4235
Iain Jamieson, Celtic plc
Canaccord Genuity Limited, Nominated Adviser
Simon Bridges Tel: 0207 523 8000
Celtic plc
CHAIRMAN'S STATEMENT
The results for the six months ended 31 December 2024 show revenues of £83.5m
(2023: £85.2m) and a profit from trading, representing the profit excluding
other income and player related gains and charges, totalling £26.9m (2023:
profit of £32.0m). The profit before finance income & expense and
taxation ("PBIT") amounted to £43.9m (2023: £30.3m).
Although reported revenue has fallen by £1.7m (or 2.1%), and the total
matches played over the period of 14 was in line with the same period last
year, the match composition varied from the prior period and consequently,
this impacted the amount recognised per match in the first half of the year.
In addition, as the new UEFA format now introduces games in the second half of
the financial year, an element of UEFA revenue requires to be deferred and
recognised in the second half of the year. Both factors have led to the
reduction in reported revenue but will reverse in FY25 H2.
Profit from trading has reduced £5.1m between the six months ended 31
December 2024 compared to the same period last year due to a number of factors
including, higher labour costs, the full year effect of higher utility
contracts entered into in the prior year and significant stadium preventative
maintenance spending. The increase in the PBIT of £13.6m to £43.9m was
mainly driven by the exit of seven players resulting in the net gain on player
trading of £21.5m (2023: £2.6m) which included Matt O'Riley, Bosun Lawal,
Tomoki Iwata, Michael Johnston, Yuki Kobayashi, Daniel Kelly and Hyeongyu Oh.
It is important to note with respect to cash and cash equivalents, that over
the last six months, despite significant profitability from player trading and
a successful Champions League campaign, we saw a £11.8m reduction in cash
reserves from £77.2m at 30 June 2024 to £65.4m at 31 December 2024 (31
December 2023: £67.3m). The key drivers of this were the significant transfer
spend incurred in the period, where we exceeded our record transfer spend
twice, and the investment into the first team playing squad wage costs, and
our continued investment into infrastructure including our Barrowfield
development, Lennoxtown and Celtic Park.
During the January 2025 transfer window, we acquired the permanent
registration of Jota and the temporary registration of Jeffrey Schlupp. In
addition, we extended the contract of Kasper Schmeichel and entered into a pre
contract agreement that will see Keiran Tierney return to Celtic in July 2025.
We disposed of the registrations of Kyogo Furuhashi, Alexander Bernabei and
placed Luis Palma, Odin Holm and Stephen Welsh on Loan.
Our commitment as always is to invest in continuous improvement in all areas
of the club and, most importantly, in the first team squad. The success of our
model has ensured that funding is available to acquire players who will
contribute to ongoing success. We invested significantly in the summer
transfer window and while we aimed to do more in the recent window, we go into
the remainder of the season from a strong position and with confidence.
At the time of writing, we sit in first position and 13 points ahead in the
SPFL and in December 2024 secured a victory over Rangers to win the Premier
Sports Cup. We have also progressed to the quarter finals of the Scottish Cup
as we aim to retain this trophy for the third consecutive year. Following
finishing 21(st) of 36 in the Champions League group phase, we entered the
knock out round of the competition which sees us drawn against German
Bundesliga league leaders and six times European Champions Bayern Munich, in
what will be both a challenging and exciting tie.
Our Women's team reached its first ever Champions League Group Stage
competition where we were drawn against Chelsea, Real Madrid and Twente. This
was a challenging group and whilst we were unable to secure a victory in our
first venture in the Women's Champions League, we were proud of the
performances and Elena and the team took much experience from it. At the time
of writing, our Celtic Women's team sits joint top with Glasgow City in the
SWPL in what is an exciting and highly competitive league. Four teams sit
within two points of each other and with 12 games remaining our Women's team
are competing to retain the SWPL title won last season for the first time.
The Club's earnings profile and cash generation from trading is biased toward
the first half of our financial year and we naturally expect a seasonal
downturn in earnings in the second half of the year. This reflects the fact
that receipts from European competition are largely recognised in the first
half of the year, whereas the second half does not benefit from this. In
addition, strong player trading gains in August 2024 were not replicated in
January 2025. This seasonal profiling is entirely within expectations and
our planning assumptions. Our outturn earnings can also be materially impacted
by football success and the year-end assessment of player registration
carrying values. Taking all of this into consideration, we would expect our
total outturn financial performance for the year ending 30 June 2025 to be
significantly lower than the result posted for the first six months of the
financial year.
I wish to extend our gratitude and appreciation to our supporters for the
backing of our Club on behalf of the Board. Thanks also must go to our
employees, shareholders and commercial partners for their continued support.
Peter T Lawwell
Chairman
10 February 2025
INDEPENDENT REVIEW REPORT TO CELTIC PLC
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 2024 is not prepared, in
all material respects, in accordance with UK adopted International Accounting
Standard 34 and the London Stock Exchange AIM Rules for Companies.
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 2024 which comprises Consolidated Statement of Comprehensive Income,
Consolidated Balance Sheet, Consolidated Statement of Changes in Equity,
Consolidated Cash Flow Statement and related explanatory notes.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" ("ISRE (UK) 2410"). 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.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410, however future events or conditions may cause the group to
cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the London Stock Exchange AIM Rules for Companies 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.
In preparing the half-yearly financial report, the directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statement in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
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 AIM Rules for Companies 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.
BDO LLP
Chartered Accountants
Glasgow, UK
Date
BDO LLP is a limited liability partnership registered in England and Wales
(with registered number OC305127).
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTHS TO 31 DECEMBER 2024
2024 2023
Unaudited Unaudited
Note £000 £000
Revenue 2 83,457 85,222
Operating expenses (before intangible asset transactions) (56,520) (53,217)
Profit from trading before intangible asset transactions 26,937 32,005
Exceptional operating expense - (50)
Amortisation of intangible assets 6 (6,395) (6,099)
Profit on disposal of intangible assets 21,504 2,591
Other income - 50
Operating profit 42,046 28,497
-
Finance income 3 2,562 2,540
Finance expense 3 (731) (735)
Profit before tax 43,877 30,302
Income tax expense 4 (10,979) (7,622)
-
Profit and total comprehensive income for the period 32,898 22,680
Basic earnings per Ordinary Share 5 34.70p 23.98p
Diluted earnings per Share 5 24.25p 16.79p
The notes form part of these financial statements.
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2024
2024 2023
Unaudited Unaudited
Notes £000 £000
NON-CURRENT ASSETS
Property plant and equipment 68,608 56,328
Intangible assets 6 46,539 32,679
Trade and other receivables 7 20,279 8,624
135,426 97,631
CURRENT ASSETS
Inventories 3,202 3,802
Trade and other receivables 7 37,992 42,963
Cash and cash equivalents 8 65,431 67,327
106,625 114,092
TOTAL ASSETS 242,051 211,723
EQUITY
Issued share capital 8 27,203 27,169
Share premium 15,065 15,028
Other reserve 21,222 21,222
Accumulated profits 91,092 67,490
TOTAL EQUITY 154,582 130,909
NON-CURRENT LIABILITIES
Debt element of Convertible Cumulative Preference Shares 4,139 4,173
Trade and other payables 11,034 6,280
Lease Liabilities 325 469
Deferred tax 4 4,420 3,482
Provisions 80 91
19,998 14,495
CURRENT LIABILITIES
Trade and other payables 36,821 40,338
Current borrowings 96 96
Lease Liabilities 499 447
Provisions 6,315 6,278
Deferred income 23,740 19,160
67,471 66,319
TOTAL LIABILITIES 87,469 80,814
TOTAL EQUITY AND LIABILITIES 242,051 211,723
Approved by the Board on 10 February 2025.
The notes form part of these financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTHS ENDED 31 DECEMBER 2024
Share Share premium Other reserve Accumulated Total
capital Profits
£000 £000 £000 £000 £000
EQUITY SHAREHOLDERS' FUNDS AS AT 1 JULY 2023 (Audited) 27,168 14,990 21,222 44,810 108,190
Share capital issued 1 38 - - 39
- - - 22,680 22,680
Profit and total comprehensive income for the period
EQUITY SHAREHOLDERS' FUNDS AS AT 31 DECEMBER 2023 (Unaudited)
27,169 15,028 21,222 67,490 130,909
EQUITY SHAREHOLDERS' FUNDS AS AT 1 JULY 2024 (Audited) 27,197 15,028 21,222 58,194 121,641
Share capital issued 6 37 - - 43
Profit and total comprehensive income for the period - - - 32,898 32,898
EQUITY SHAREHOLDERS' FUNDS AS AT 31 DECEMBER 2024 (Unaudited) 27,203 15,065 21,222 91,092 154,582
The notes form part of these financial statements.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE 6 MONTHS ENDED 31 DECEMBER 2024
2024 2023
Unaudited Unaudited
Note £000 £000
Cash flows from operating activities
Profit for the period after tax 32,898 22,680
Income tax expense 10,979 7,622
Depreciation 1,306 1,261
Amortisation 6,395 6,099
Profit on disposal of intangible assets (21,504) (2,591)
Finance costs 731 735
Finance income (2,562) (2,540)
28,243 33,266
Increase in inventories (331) (376)
Decrease in receivables 4,253 5,142
Decrease in payables and deferred income (19,777) (28,643)
Cash generated from operations 12,388 9,389
Tax paid (3,688) (2,780)
Interest received 1,649 1,594
Net cash inflow from operating activities 10,349 8,203
Cash flows from investing activities
Purchase of property, plant and equipment (8,411) (1,575)
Purchase of intangible assets (30,547) (23,274)
Proceeds from sale of intangible assets 17,403 12,473
Net cash used in investing activities (21,555) (12,376)
Cash flows from financing activities
Payments on leasing activities (111) (300)
Dividend on Convertible Cumulative Preference Shares (480) (485)
Net cash used in financing activities (591) (785)
Net decrease in cash and cash equivalents (11,797) (4,958)
Cash and cash equivalents at 1 July 77,228 72,285
Cash and cash equivalents at 31 December 9 65,431 67,327
The notes form part of these financial statements.
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 in accordance
with UK adopted International Accounting Standards, but does not include all
of the disclosures that would be required under those accounting standards.
The accounting policies adopted in the financial statements for the year ended
30 June 2025 will be in accordance with UK adopted international accounting
standards.
The financial information in this interim report for the six months to 31
December 2024 and to 31 December 2023 has not been audited, but it has been
reviewed by the Company's auditor, whose report is set out on pages 4 and 5.
Adoption of standards effective for periods beginning 1 July 2024
The following amended standards have been adopted as of 1 July 2024
· Amendments to IAS 8, IAS 1, IAS 12, IFRS 17, IFRS 9 and IAS 12
Going concern
The Company performs regular re-forecasts and these projections, which include
profit/loss and cash flow forecasts, are distributed to the Board. These
forecasts show that, based on reasonable trading assumptions and potential
downsides thereon, the Company has adequate financial resources available to
it, including undrawn bank facilities, to meet its liabilities as they fall
due for a period of not less than 12 months from the date of approval of these
interim financial statements.
As a consequence, the Directors believe that the Company is well placed to
manage its business risks successfully over the medium term.
In consideration of the above, the Directors have a reasonable expectation
that 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
and have not identified a material uncertainty in this regard.
2. REVENUE
6 months 6 months
to 31
to 31
Dec 2024
Dec 2023
Unaudited Unaudited
£000
£000
Football and stadium operations 31,628 29,778
Multimedia and other commercial activities 33,730 37,153
Merchandising 18,099 18,291
83,457 85,222
Number of home games 14 14
3. FINANCE INCOME AND EXPENSE
6 months to 6 months to
31 December 31 December
2024 2023
Unaudited Unaudited
£000 £000
Finance income:
Interest receivable on bank deposits 1,652 1,789
Notional interest income 910 751
2,562 2,540
6 months to 6 months to
31 December 31 December
2024 2023
Unaudited Unaudited
£000 £000
Finance expense:
Notional interest expense (449) (451)
Dividend on Convertible Cumulative Preference Shares (282) (284)
(731) (735)
4. TAXATION
Tax has been charged at 25% for the six months ended 31 December
2024 (2023: 25%) representing the best estimate of the average annual
effective tax rate expected to apply for the full year, applied to the pre-tax
profit of the six month period. After accounting for deferred tax, this has
resulted in tax expense in the statement of comprehensive income of £11.0m
(2023: £7.6m).
5. EARNINGS PER SHARE
Basic earnings per share has been calculated by dividing the
profit for the period of £32.9m (2023: £22.7m) by the weighted average
number of Ordinary Shares in issue of 94,818,303 (2023: 94,596,518). Diluted
earnings per share has been calculated by dividing the profit for the period
by the weighted average number of Ordinary Share, Convertible Cumulative
Preference Shares and Convertible Preferred Ordinary Shares in issue, assuming
conversion at the Balance Sheet date if dilutive.
6. INTANGIBLE ASSETS
31 December 2024 31 December 2023
Unaudited Unaudited
Cost £000 £000
At 1 July 47,323 55,747
Additions 28,077 12,866
Disposals (6,664) (15,448)
At period end 68,736 53,165
Amortisation
At 1 July 19,409 27,708
Charge for the period 6,395 6,099
Disposals (3,607) (13,321)
At period end 22,197 20,486
Net Book Value at period end 46,539 32,679
7. TRADE AND OTHER RECEIVABLES
31 December 2024 31 December 2023
Unaudited Unaudited
£000 £000
Trade receivables 42,296 34,365
Prepayments and accrued income 9,735 11,068
Other receivables 6,240 6,154
58,271 51,587
Amounts falling due after more than one year included above are:
31 December 31 December 2023
2024 Unaudited
Unaudited
£000 £000
Trade receivables 20,279 8,624
8. SHARE CAPITAL
Authorised Allotted, called up and fully paid
31 December 31 December
2024 2023 2024 2024 2023 2023
Unaudited Unaudited Unaudited
No 000 No 000 No 000 £000 No 000 £000
Equity
Ordinary Shares of 1p each 223,977 223,775 94,838 948 94,615 946
Deferred Shares of 1p each 691,764 680,722 691,764 6,918 680,722 6,807
Convertible Preferred Ordinary Shares of £1 each
14,642 14,678 12,655 12,655 12,692 12,692
Non-equity
Convertible Cumulative Preference Shares of 60p each
18,167 18,295 15,667 9,400 15,795 9,477
Less reallocated to debt:
Initial debt - - - (2,718) - (2,753)
948,550 937,470 814,924 27,203 803,824 27,169
9. 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
2024 2023
Unaudited Unaudited
£000 £000
Cash and cash equivalents:
Cash at bank and on hand 65,431 67,327
10. POST BALANCE SHEET EVENTS
Since the Balance Sheet date, we have acquired the permanent registration of
Jota and the temporary acquisition of Jeffrey Schlupp. We have also entered
into a pre-contract agreement with Kieran Tierney who will join the Club in
the summer.
We have permanently transferred the registrations of Kyogo Furuhashi and
Alexandro Bernabei, and temporarily transferred the registrations of Odin
Holm, Stephen Welsh and Luis Palma to other clubs.
Directors
Peter T Lawwell (Chairman)
Michael Nicholson (Chief Executive Officer)
Christopher McKay (Chief Financial Officer)
Thomas E Allison
Dermot F Desmond
Brian D H Wilson
Sharon Brown
Brian Rose
Company Secretary
Joanne McNairn (appointed 1 July 2024)
Registered Office
Celtic Park
Glasgow
G40 3RE
Registered Number
SC003487
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