Celtic have announced pre-tax profits of £6.6million despite a drop of over 30% in revenue due to missing out on the lucrative group stages of the Champions League.
Chairman Iain Bankier, in a statement on the official Celtic website, said: “Since the appointment of our new football management team led by Ronny Deila, we have embarked upon a period of transition, with the implementation of new ideas, methods and processes. We moved on from the disappointment of failing to qualify for the group stages of the UEFA Champions League to qualify for the last 32 of the UEFA Europa League and a tie against Inter Milan. As the football team develops on and off the field, we are pleased to be competing in four competitions.
“The Opening Ceremony of the Commonwealth Games took place at Celtic Park with great success, leading to worldwide exposure for our brand, while the stadium also played host to the Scottish national team in two high profile international matches.
“A key factor influencing these results is the participation in the UEFA Europa League, as opposed to the UEFA Champions League. Revenue dropped for the period to £31.3m (2013: £44.8m). Operating expenses for the period decreased to £28.1m (2013: £34.3m), leading to a profit from trading, before asset transactions and exceptional operating expenses of £3.2m (2013: £10.5m). This trading performance, together with a lower gain on disposal of player registrations of £7.1m from £16.5m in 2013 are the main causes of the reduction in Profit before Taxation for the half year to £6.6m from £21.3m last year.
“Given the difficult economic climate and the challenging sector, it is pleasing that our business model allows us to report net cash of £5.3m as at 31 December 2014, compared to £5.7m in 2013, especially given the capital investment in projects including the Celtic Way.”
“Each season, our overwhelming priorities are to win the SPFL Premiership and to qualify for the group stages of the UEFA Champions League. The strategy of the Board is to aim to achieve this objective with prudent investment in the playing squad and by the continued creation of value through development of players, both from our youth academy and those identified by our football development operations.
“As in previous years, the second half is expected to be more challenging in terms of financial performance with fewer home matches scheduled and no certainty on any further gains on the disposal of player registrations.
“Our strategy remains to live within our means. The football environment in Scotland continues to be challenging and we must operate within it in a fashion that does not unduly risk the long term future of this great Club.
“Our key focus for the remainder of the year will be to build on the progress we have made in the first half of the season and to deliver silverware from competing in the three domestic competitions and remain competitive in the UEFA Europa League. Furthermore, we will continue to develop our squad for the challenges of qualifying for European competition in the summer.”
- Revenue decreased by 30.1% to £31.3m (2013: £44.8m)
- Operating expenses decreased by 18.2% to £28.1m (2013: £34.3m)
- Profit from trading of £3.2m (2013: £10.5m)
- Profit on disposal of intangible assets £7.1m (2013: £16.5m)
- Profit before taxation of £6.6m (2013: £21.3m)
- Period end net cash at bank of £5.3m (2013: £5.7m)
- Investment in football personnel of £5.7m (2013: £5.0m)
- New long term bank facility agreement.