CELTIC PLC

Interim Report • Feb 10, 2025

National Storage Mechanism | Additional information

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 Iain Jamieson, Celtic plc			Tel: 0141 551 4235
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 21st 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 Unaudited		2023 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 Unaudited			2023 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         capital		Share premium	Other reserve	Accumulated Profits		Total
		£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
Profit and total comprehensive income for the period		-	-	-	22,680		22,680
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 Unaudited		2023 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 to 31 Dec 2024		6 months to 31 Dec 2023
		Unaudited £000		Unaudited £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 31 December 2024		6 months to 31 December 2023
		Unaudited £000		Unaudited £000
Finance income:
Interest receivable on bank deposits		1,652		1,789
Notional interest income		910		751
		2,562		2,540

		6 months to 31 December 2024		6 months to 31 December 2023
		Unaudited £000		Unaudited £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. 

1. 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 Unaudited		31 December 2023 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 2024 Unaudited		31 December 2023 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 2024		31 December 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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