TIDMCCP
RNS Number : 0259P
Celtic PLC
15 February 2021
Celtic plc (the "Company")
INTERIM REPORT FOR THE SIX MONTHS TO 31 DECEMBER 2020
Operational Highlights
-- Currently second in the SPFL Premiership.
-- Winners of the Scottish FA Cup (season 19/20) for the fourth
season in a row, securing an unprecedented fourth consecutive
domestic treble.
-- 17 home fixtures (2019: 21).
-- Conclusion of the most successful decade in the history of the club with 20 trophies won.
Financial Highlights
-- Revenue decreased by 23.7% to GBP40.7m (2019: GBP53.3m)
-- Loss from trading was GBP0.3m (2019: profit of GBP7.1m)
-- Profit from transfer of player registrations (shown as profit
on disposal of intangible assets) GBP1.0m (2019: GBP23.0m)
-- Loss before taxation of GBP5.9m (2019: profit of GBP24.4m)
-- Acquisition of player registrations of GBP12.7m (2019: GBP15.0m)
-- Period end net cash at bank of GBP19.7m (2019: GBP32.9m)
CHAIRMAN'S STATEMENT
The results for the six months ended 31 December 2020 show
revenues of GBP40.7m (2019: GBP53.3m) and a loss before taxation of
GBP5.9m (2019: profit of GBP24.4m). The loss from trading,
representing the loss excluding player related gains and charges,
amounted to GBP0.3m (2019: profit of GBP7.1m). Period end net cash
at bank was GBP19.7m (2019: GBP32.9m). The introductory page to
these interim results summarises the main highlights.
Season 2020/21 started with further significant investment into
our playing squad as we prepared for the season ahead, commencing
with the Champions League qualification fixtures, featuring
challenging single leg knock out ties as a result of the restricted
football environment. We acquired the registrations of Albian
Ajeti, Vasilis Barkas and David Turbull, retained Mohamed
Elyounoussi on loan and brought in experienced internationals Shane
Duffy and Diego Laxalt on loan. We also retained key players who
had contributed so much to the team in previous seasons.
At the time of writing we currently sit second in the league 18
points behind the leaders having played one game less and with 10
games remaining. The prolonged summer transfer window, the impact
of Covid-19 and, crucially, the loss of our passionate support at
matches have undoubtedly had a damaging effect on our performance
levels in domestic and European competitions, but we recognise that
our performance has not been good enough. Amidst this challenging
environment, however, we secured victory in the postponed 2019/20
Scottish Cup Final to deliver an incredible fourth consecutive
treble, following on from securing our ninth consecutive league
title. The scale of this achievement cannot be underplayed and
should be a cause for pride and celebration for years to come.
The two key factors that adversely affected our financial
results for the period under review were: firstly, reduced gains
from player trading as we sought to keep intact our squad this
season; and, secondly, the unforeseen and prolonged value
destructive impact of Covid-19. Our strategy for season 2020/21 was
to invest in the team and to retain our best players, with the
objective of delivering the league championship. As a result, gains
from player trading were minimal. The effects of Covid-19 have
persisted longer than many could have envisaged and, as a result,
our crucial match day and other income streams derived from our
stadium have been reduced to negligible proportions. These two
factors largely explain the reduction in our profit before tax. No
football club is immune from the effects of Covid-19.
Looking forward, the football and financial environment is still
volatile and very uncertain because of the ongoing effects of
Covid-19. At the time of writing, it is unclear when the 2020/21
Scottish Cup will re-commence following its suspension. Neither are
we able to say at this stage when we will be able to welcome our
supporters back to Celtic Park but we continue to work with the
football authorities and the Scottish Government with a view to
ensuring that fans are able to return to football safely as soon as
possible. All of this will continue to affect our financial results
meaning we are unable to offer any outlook guidance on revenue or
earnings. Trading seasonality means that financial performance in
the second half of the financial year will be lower than the first
half owing to lower UEFA income along with less matches played.
I would like to thank our outgoing Chief Executive Peter Lawwell
for his contribution to Celtic over the last 17 years. His role in
transforming Celtic into a modern, highly respected European
football club cannot be underestimated and has been nothing short
of outstanding. It has been a pleasure to serve alongside him and
we look forward to welcoming Dominic McKay as our new Chief
Executive to continue to grow the Club.
Finally, on behalf of the Board I would like to reiterate to our
supporters, shareholders and partners that their support has been
crucial over the last 12 months, in what has been one of the most
challenging times for the Club. We recognise their support and we
thank them for the loyalty they have shown.
Ian P Bankier
15 February 2021
Chairman
For further information contact:
Celtic plc Tel: 0141 551 4235
Ian Bankier
Peter Lawwell
Canaccord Genuity Limited, Nominated Adviser Tel: 020 7523 8350
and Broker
Simon Bridges
Richard Andrews
This announcement contains inside information for the purposes
of article 7 of the Market Abuse Regulation (EU) 596/2014 as
amended by regulation 11 of the Market Abuse (Amendment) (EU Exit)
Regulations 2019/310. Upon the publication of this announcement,
this inside information is now considered to be in the public
domain.
INDEPENT REVIEW REPORT TO CELTIC PLC
Introduction
We have been engaged by the Company to review the financial
information in the interim report for the six months ended 31
December 2020 which comprises the consolidated statement of
comprehensive income, the consolidated balance sheet, the
consolidated statement of changes in equity, the consolidated cash
flow statement and the related notes.
We have read the other information contained in the interim
report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
Directors' responsibilities
The interim report, including the financial information
contained therein, is the responsibility of and has been approved
by the directors. The directors are responsible for preparing the
interim report in accordance with the rules of the London Stock
Exchange for companies trading securities on AIM which require that
the interim report be presented and prepared in a form consistent
with that which will be adopted in the Company's annual financial
statements having regard to the accounting standards applicable to
such annual financial statements.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the financial information in the interim report based on our
review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity", issued by the Financial Reporting Council for use
in the United 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 (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.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the financial information in the interim
report for the six months ended 31 December 2019 is not prepared,
in all material respects, in accordance with the rules of the
London Stock Exchange for companies trading securities on AIM.
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 for companies trading securities
on AIM and 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
Manchester, United Kingdom
Date: 15 February 2021
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 2020
2020 2019
Unaudited Unaudited
Note GBP000 GBP000
Revenue 2 40,688 53,335
Operating expenses (before intangible asset
transactions) (40,966) (46,274)
------------ -------------
(Loss)/profit from trading before intangible
asset transactions (278) 7,061
Amortisation of intangible assets (6,583) (5,874)
Profit on disposal of intangible assets 993 23,021
Operating (loss)/profit (5,868) 24,208
-
Finance income 3 515 743
Finance expense 3 (516) (532)
(Loss)/profit before tax (5,869) 24,419
Income tax credit/(expense) 4 730 (5,091)
------------- -------------
-
(Loss)/profit and total comprehensive loss
for the period (5,139) 19,328
------------- -------------
Basic (loss)/earnings per Ordinary Share 5 (5.45p) 20.51p
============= =============
Diluted (loss)/earnings per Share 5 (5.45p) 14.36p
============= =============
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2020
2020 2019
Unaudited Unaudited
Notes GBP000 GBP000
NON-CURRENT ASSETS
Property plant and equipment 57,781 59,550
Intangible assets 6 25,912 23,180
Trade and other receivables 7 9,082 13,175
92,775 95,905
CURRENT ASSETS
Inventories 3,000 1,772
Trade and other receivables 7 21,064 25,388
Cash and cash equivalents 9 23,183 37,604
-------------------- -------------
47,247 64,764
-------------------- -------------
TOTAL ASSETS 140,022 160,669
==================== =============
EQUITY
Issued share capital 8 27,168 27,167
Share premium 14,912 14,848
Other reserve 21,222 21,222
Accumulated profits 13,091 37,926
-------------------- -------------
TOTAL EQUITY 76,393 101,163
==================== =============
NON-CURRENT LIABILITIES
Interest bearing liabilities/
bank loans 2,212 3,476
Debt element of Convertible
Cumulative Preference Shares 4,174 4,174
Trade and other payables 4,068 3,443
Lease Liabilities 431 778
Deferred tax 4 906 1,754
Provisions 128 37
Deferred income 14 42
-------------------- -------------
11,933 13,704
-------------------- -------------
CURRENT LIABILITIES
Trade and other payables 24,997 25,572
Current borrowings 1,364 1,364
Lease Liabilities 568 722
Provisions 6,402 3,531
Deferred income 18,365 14,613
-------------------- -------------
51,696 45,802
-------------------- -------------
TOTAL LIABILITIES 63,629 59,506
==================== =============
TOTAL EQUITY AND LIABILITIES 140,022 160,669
==================== =============
Approved by the Board on 15 February 2021.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Other Accumulated Total
capital premium reserve profits
GBP000 GBP000 GBP000 GBP000 GBP000
EQUITY SHAREHOLDERS' FUNDS
AS AT 1 JULY 2019 (Audited) 27,157 14,785 21,222 18,598 81,762
Share capital issued 1 63 - - 64
Reduction in debt element
of
convertible cumulative
preference shares 9 - - - 9
Profit and total comprehensive
income for the period - - - 19,328 19,328
EQUITY SHAREHOLDERS' FUNDS
AS AT 31 DECEMBER 2019 (Unaudited) 27,167 14,848 21,222 37,926 101,163
EQUITY SHAREHOLDERS' FUNDS
AS AT 1 JULY 2020 (Audited) 27,167 14,849 21,222 18,230 81,468
Share capital issued 1 63 - - 64
Reduction in debt element - - - - -
of convertible cumulative
preference shares
Loss and total comprehensive
loss for the period - - - (5,139) (5,139)
EQUITY SHAREHOLDERS' FUNDS
AS AT 31 DECEMBER 2020 (Unaudited) 27,168 14,912 21,222 13,091 76,393
========== =========== =========== ================= ===========
CONSOLIDATED CASH FLOW STATEMENT
FOR THE 6 MONTHSED 31 DECEMBER 2020
2020 2019
Unaudited Unaudited
GBP000 GBP000
Cash flows from operating activities
(Loss)/profit for the period after
tax (5,139) 19,328
Taxation (credit)/charge (730) 5,091
Depreciation 1,241 1,300
Amortisation 6,583 5,874
Profit on disposal of intangible assets (993) (23,021)
Finance costs * 516 532
Finance income * (515) (743)
--------------- ------------
963 8,361
(Increase)/decrease in inventories (1,730) 871
(Increase) in receivables (737) (400)
(Decrease) in payables and deferred
income (4,029) (8,097)
--------------- ------------
Cash (used in)/generated from operations (5,533) 735
Tax paid - -
Interest paid * (67) (101)
Interest received * 29 120
--------------- ------------
Net cash flow from operating activities (5,571) 754
--------------- ------------
Cash flows from investing activities
Purchase of property, plant and equipment (214) (792)
Purchase of intangible assets (6,306) (13,824)
Proceeds from sale of intangible assets 14,346 18,512
--------------- ------------
Net cash generated from investing
activities 7,826 3,896
--------------- ------------
Cash flows from financing activities
Repayment of debt (640) (640)
Payments on leasing activities (379) -
Dividend on Convertible Cumulative
Preference Shares (459) (462)
--------------- ------------
Net cash used in financing activities (1,478) (1,102)
--------------- ------------
Net increase in cash equivalents 777 3,547
Cash and cash equivalents at 1 July 22,406 34,057
--------------- ------------
Cash and cash equivalents at 31 December 9 23,183 37,604
=============== ============
*The cash flow statement for 2019 has been restated to correctly
present finance income and finance costs as well as interest paid
and interest received on a gross rather than the previously net
basis. There is no change to the overall reported cash flows from
operating activities.
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 of IFRSs as
adopted for use in the European Union 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 2021 will be in accordance
with international accounting standards in conformity with the
requirements of the Companies Act 2006.
The financial information in this interim report for the six
months to 31 December 2020 and to 31 December 2019 has not been
audited, but it has been reviewed by the Company's auditor, whose
report is set out on page 4.
Adoption of standards effective for periods beginning 1 July
2020
The following standards have been adopted as of 1 July 2020:
-- IAS 1 Presentation of Financial Statements and IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors.
(Amendment - Disclosure Initiative - Definition of Material)
-- Conceptual Framework for Financial Reporting (revised)
-- IBOR Reform and its Effects on Financial Reporting - Phase 1
Going concern
As part of the Directors' consideration of the going concern
assumption used in preparing the Interim Report, different
scenarios have been analysed for a minimum period of 12 months from
the date of approval of the report with outlook assumptions used
beyond this time frame. The main factors considered were:
-- Current financial stability of the Group and on-going access to funds;
-- Continuing restrictions on trading conditions as a result of
Covid-19, primarily the attendance of fans in football stadia;
-- Security of revenue streams;
-- First team football performance and success; and
-- Player transfer market conditions.
The Directors have adopted a prudent approach in the assumptions
used in relation to the above, in order to provide additional
comfort around the viability of the Group going forward.
At 31 December 2020 the cash at bank was GBP23.2m. In addition,
the Group had a net receivables position with respect to player
trading payables/receivables. Despite the challenges of the 6
months under review, there remains strong liquidity in the business
and, although trading conditions in some areas remains uncertain,
the progress being made around vaccinations and controlling the
spread of the Covid-19 virus, provides optimism that normalised
trading can resume in the short to medium term.
The Group has retained established contracts with a number of
our commercial partners and suppliers providing assurance over
future revenues and costs and we have clear visibility over
committed labour costs and transfer payables. In addition, the
Group has in recent years, achieved significant gains in relation
to player trading and manages the movement of players in and out of
the team strategically to ensure maximisation of value where
required while maintaining a squad of appropriate quality to
ensure, as far as possible, continued on field success. This has
been illustrated by the sale of Jeremie Frimpong during the January
2021 transfer window.
The non-attendance of football fans in stadia continues to be
the most significant factor in planning for the future, however as
noted above our assumptions on this matter are considered to be
appropriately prudent and do not consider there to be a significant
risk in the medium term.
During the 6 months to 31 December 2020, the Group agreed an
amended and restated GBP13m RCF with the Co-operative Bank which
remains undrawn. This provides additional access to funds should
these be required. The current cash flow forecasts over the period
of the going concern review do not show a requirement to utilise
this facility.
The Group continues to perform a detailed budgeting process each
year which looks ahead four years from the current financial year,
and is reviewed and approved by the Board. The Group also
re-forecasts each month and this is distributed to the Board. As a
consequence, and in conjunction with the additional forecasting and
sensitivity analysis which has taken place, the Directors believe
that the Company is well placed to manage its business risks
successfully despite the continuing uncertain economic outlook.
In consideration of all of the above, the Directors have a
reasonable expectation that the Group and 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 Interim Report.
2. REVENUE
6 months 6 months
to 31 to 31
Dec 2020 Dec 2019
Unaudited Unaudited
GBP000 GBP000
Football and stadium operations 12,570 26,987
Multimedia and other commercial
activities 13,049 15,108
Merchandising 15,069 11,240
40,688 53,335
=========== ===========
Number of home games 17 21
=========== ===========
3. FINANCE INCOME AND EXPENSE
6 months 6 months
to to
31 December 31 December
2020 2019
Unaudited Unaudited
GBP000 GBP000
Finance income:
Interest receivable on bank deposits 29 120
Notional interest income on deferred
consideration 486 623
-------------- --------------
515 743
============== ==============
6 months 6 months
to to
31 December 31 December
2020 2019
Unaudited Unaudited
GBP000 GBP000
Finance expense:
Interest payable on bank and other
loans (60) (115)
Notional interest expense on deferred
consideration (172) (133)
Dividend on Convertible Cumulative
Preference Shares (284) (284)
-------------- --------------
(516) (532)
============== ==============
4. TAXATION
Tax has been charged at 19% for the six months ended 31 December
2020 (2019: 19%) representing the best estimate of the average
annual effective tax rate expected to apply for the full year,
applied to the pre-tax income of the six month period. After
accounting for prior period adjustments and deferred tax, this has
resulted in tax credit in the statement of comprehensive income of
GBP0.7m (2019: charge of GBP5.1m).
5. EARNINGS PER SHARE
Loss per share and diluted loss per share of 5.45p (2019:
earnings per share of 20.51p, diluted earnings per share of 14.36p)
has been calculated by dividing the loss for the period of GBP5.1m
(2019: profit of GBP19.3m) by the weighted average number of
Ordinary Shares in issue 94,315,059 (2019: 94,262,133) in issue
during the year.
6 . INTANGIBLE ASSETS
31 December 31 December
2020 2019
Unaudited Unaudited
Cost GBP000 GBP000
At 1 July 49,846 44,652
Additions 12,667 15,008
Disposals (1,581) (3,324)
--------------- ---------------
At period end 60,932 56,336
=============== ===============
Amortisation
At 1 July 30,018 30,496
Charge for the period 6,583 5,874
Disposals (1,581) (3,214)
--------------- ---------------
At period end 35,020 33,156
=============== ===============
Net Book Value at period end 25,912 23,180
=============== ===============
7. TRADE AND OTHER RECEIVABLES
31 December 31 December
2020 2019
Unaudited Unaudited
GBP000 GBP000
Trade receivables 19,024 28,554
Prepayments and accrued income 5,767 7,510
Other receivables 5,355 2,499
------------- -------------
30,146 38,563
============= =============
Amounts falling due after more than one year
included above are:
2020 2019
GBP000 GBP000
Trade receivables 9,082 13,175
============= =============
8. SHARE CAPITAL
Authorised Allotted, called up and
fully paid
31 December 31 December
2020 2019 2020 2020 2019 2019
Unaudited Unaudited Unaudited
No 000 No 000 No 000 GBP000 No 000 GBP000
Equity
Ordinary Shares of 1p each 223,608 223,605 94,349 944 94,290 943
Deferred Shares of 1p each 672,852 672,715 672,852 6,729 672,715 6,727
Convertible Preferred Ordinary
Shares of GBP1 each 14,756 14,758 12,769 12,769 12,770 12,770
Non-equity
Convertible Cumulative Preference
Shares of 60p each 18,298 18,298 15,798 9,479 15,798 9,480
Less reallocated to debt:
Initial debt - - - (2,753) - (2,753)
---------- ----------
929,514 929,376 795,768 27,168 795,573 27,167
========== ========== ========== =========== ========== ===========
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
2020 2019
Unaudited Unaudited
GBP000 GBP000
Bank Loans due after more than
one year (2,212) (3,476)
Bank Loans due within one year (1,264) (1,264)
Cash and cash equivalents:
Cash at bank and on hand 23,183 37,604
------------- -------------
Net cash at bank at period end 19,707 32,864
============= =============
10. POST BALANCE SHEET EVENTS
Since the balance sheet date, we have secured the temporary
registration of Jonjoe Kenny from Everton. We have also permanently
transferred the registration of Jeremie Frimpong to Bayer
Leverkusen and temporarily transferred the registration Olivier
Ntcham to Marseille.
In addition we have temporarily transferred the registrations of
development squad players Leo Hjelde to Ross County, Ben Wylie to
Ballymena United, Barry Coffey to Cliftonville and Scott Robertson
to Doncaster Rovers.
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END
IR DGGDDRXBDGBS
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