TIDMCCP
RNS Number : 6351P
Celtic PLC
10 February 2023
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. 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 2022
Key Operational Items
-- Currently first in the SPFL Premiership.
-- 14 home fixtures (2021: 19).
-- Participation in the UEFA Champions League group stages.
Key Financial Items
-- Revenue increased by 44.8% to GBP76.5m (2021: GBP52.9m).
-- Profit from trading was GBP28.1m (2021: GBP7.0m).
-- Profit from transfer of player registrations (shown as profit
on disposal of intangible assets) GBP1.8m (2021: GBP25.8m).
-- Profit before taxation of GBP33.9m (2021: GBP27.6m).
-- Acquisition of player registrations of GBP5.7m (2021: GBP16.8m).
-- Period end cash net of bank borrowings of GBP59.2m (2021: GBP25.6m).
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
CHAIRMAN'S STATEMENT
I am honoured to present my first Chairman's statement on behalf
of Celtic Football Club. Being back to chair the club that I have
always supported and served for almost 18 years as CEO, is a
privilege. I look forward to fulfilling the role, and playing my
part in our Club going forward.
The results for the six months ended 31 December 2022 show
revenues of GBP76.5m (2021: GBP52.9m) and a profit before taxation
of GBP33.9m (2021: profit before tax of GBP27.6m). The profit from
trading, representing the profit excluding player related gains and
charges, amounted to GBP28.1m (2021: profit of GBP7.0m).
The key factors driving the improvement in the underlying
trading performance in the six months to 31 December 2022 compared
to the same period last year, was the direct qualification to the
UEFA Champions League Group stages. This was the key driver in our
revenue increase over the same period last year which reflected
UEFA Europa League Group stage participation. Gains from player
trading this year of GBP1.8m (2021: GBP25.8m) were notably lower,
reflecting our strategy of assembling a new football playing squad
under our Football Manager, Ange Postecoglou. Period end net cash
at bank was GBP59.2m (2021: GBP25.6m). After adjusting for a net
trading balance on prior inbound and outbound transfers, this sum
reduces to GBP50.2m at December 2022 (2021: GBP39.7m). The
introductory page to these interim results summarises the key
events in the period.
This year is the second season under Ange and the success
delivered in season 2021/22 in securing the SPFL title ensured we
qualified directly for the UEFA Champions League Group stages for
season 2022/23. This allowed us to plan and execute our transfer
business early. Following from the permanent signings of Daizen
Maeda, Cameron Carter-Vickers and Joao Pedro Neves Filipe (Jota),
we went on to sign Alexandro Bernabei, Sead Haksabanovic, Aaron
Mooy, Benjamin Siegrist and brought in loan signings Oliver
Abildgaard and Moritz Jenz.
As the season got underway in August, we were presented with a
tough Champions League Group stage draw, alongside 14 times
Champions League winners Real Madrid, RB Leipzig and Shakhtar
Donetsk. Despite a number of strong footballing performances we all
shared Ange's disappointment in not progressing further, but took
heart from the competitive performances and experience gained by
our young team which will serve them well in future European
competition.
On domestic footballing matters, we currently sit 9 points ahead
at the top of the SPFL Premiership, have reached the Viaplay Cup
Final and have reached the fifth round of the Scottish Cup. We sit
in a satisfactory position domestically, but strive to keep
improving as a club and during the January transfer window we
further added to the squad by signing Alistair Johnston, Yuki
Kobayashi, Tomoki Iwata (loan with obligation to buy) and Hyeongyu
Oh. Josip Juranovic, Oliver Abildgaard, Moritz Jenz, Scott
Robertson and Giorgos Giakoumakis moved on to continue their
careers elsewhere and we wish them all the best for the future.
Our B Team continues to develop in the Lowland League under
Darren O'Dea and Stephen McManus. A key objective of our B Team and
Academy is to develop first team players and already this season B
Team players Bosun Lawal and Rocco Vata have made their first team
debuts. This is a major milestone and achievement for our young
players and reflects our strategy of developing Academy players
through our system. Our Women's team also continues to progress
under Fran Alonso and at the time of writing we sit second in the
league and are in the fifth round of the Scottish Cup.
As we look ahead, our immediate priority is to secure domestic
success for season 2022/23, with a view to progressing into the
Champions League Group stages for a second consecutive year. We
also wish to build upon the progress made in our Academy and the
Women's team, and are currently exploring development opportunities
at our Barrowfield training ground with a view to enhancing the
facilities for these squads.
We will also continue to contribute to the development of UEFA
European Club Competition through participation in the European
Club Association. The forthcoming changes to European Club
Competition from 2024 onwards bring a number of exciting changes
that we will embrace and look to take advantage of.
In line with the seasonality inherent in our earnings profile,
the second half of the financial year will see losses incurred, as
our earnings are biased toward the first half of the financial
year. These losses however will be in part mitigated by gains on
player trading realised from the January 2023 transfer window along
with greater revenue from operating activities than was previously
anticipated. The bias in earnings towards the first half of the
financial year reflects the fact that UEFA distributions and UEFA
match ticket income are largely recognised in the first half of the
financial year and as in previous years, the second half of the
financial year typically sees lower retail sales. 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 profit before tax for the year ending 30 June 2023 to be
significantly lower than the result posted for the first six months
of the financial year.
On behalf of the Board, I wish to thank our supporters for their
unwavering dedication and support of our Club. I wish to also thank
our shareholders and commercial partners for continuing to back the
Club as they have done over many years.
Peter Lawwell
Chairman
10 February 2023
INDEPENT REVIEW REPORT TO CELTIC PLC
Conclusion
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 2022 which comprises the Consolidated
Statement of Comprehensive Income, Consolidated Balance Sheet,
Consolidated Statement of Changes in Equity, Consolidated Cash Flow
Statement and related explanatory notes.
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 2022 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.
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
Transparency (Directive 2004/109/EC) Regulations 2007 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
Glasgow, UK
Date: 10 February 2023
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 2022
2022 2021
Unaudited Unaudited
Note GBP000 GBP000
Revenue 2 76,542 52,858
Operating expenses (before intangible asset
transactions) (48,398) (45,810)
------------- -------------
Profit from trading before intangible asset
transactions 28,144 7,048
Exceptional operating (expense) / income 3 (53) 1,063
Amortisation of intangible assets 7 (6,018) (6,251)
Profit on disposal of intangible assets 1,757 25,752
Other income 3 10,000 -
Operating profit 33,830 27,612
-
Finance income 4 636 456
Finance expense 4 (611) (512)
------------- -------------
Profit before tax 33,855 27,556
Income tax expense 5 (5,767) (3,210)
-
------------- -------------
Profit and total comprehensive income for
the period 28,088 24,346
============= =============
Basic earnings per Ordinary Share 6 29.72p 25.78p
============= =============
Diluted earnings per Share 6 20.74p 18.01p
============= =============
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2022
2022 2021
Unaudited Unaudited
Notes GBP000 GBP000
NON-CURRENT ASSETS
Property plant and equipment 55,920 57,087
Intangible assets 7 34,324 27,522
Trade and other receivables 8 4,515 14,664
------------------- -------------
94,759 99,273
CURRENT ASSETS
Inventories 2,534 2,940
Trade and other receivables 8 30,095 32,180
Cash and cash equivalents 10 60,142 27,798
------------------- -------------
92,771 62,918
------------------- -------------
TOTAL ASSETS 187,530 162,191
=================== =============
EQUITY
Issued share capital 9 27,166 27,168
Share premium 14,990 14,951
Other reserve 21,222 21,222
Accumulated profits 39,566 29,975
------------------- -------------
TOTAL EQUITY 102,944 93,316
=================== =============
NON-CURRENT LIABILITIES
Interest bearing liabilities/
bank loans - 932
Debt element of Convertible
Cumulative Preference Shares 4,174 4,174
Trade and other payables 9,018 7,883
Lease Liabilities 163 352
Deferred tax 5 3,189 2,904
Provisions 77 99
16,621 16,344
------------------- -------------
CURRENT LIABILITIES
Trade and other payables 38,390 26,124
Current borrowings 1,048 1,336
Lease Liabilities 394 562
Provisions 7,271 6,686
Deferred income 20,862 17,823
------------------- -------------
67,965 52,531
------------------- -------------
TOTAL LIABILITIES 84,586 68,875
=================== =============
TOTAL EQUITY AND LIABILITIES 187,530 162,191
=================== =============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTHSED 31 DECEMBER 2022
Share Share Other Accumulated Total
capital premium reserve Profits
GBP000 GBP000 GBP000 GBP000 GBP000
EQUITY SHAREHOLDERS' FUNDS
AS AT 1 JULY 2021 (Audited) 27,168 14,912 21,222 5,629 68,931
Share capital issued - 39 - - 39
Profit and total comprehensive
income for the period - - - 24,346 24,346
EQUITY SHAREHOLDERS' FUNDS
AS AT 31 DECEMBER 2021 (Unaudited) 27,168 14,951 21,222 29,975 93,316
========== =========== =========== =============== ==========
EQUITY SHAREHOLDERS' FUNDS
AS AT 1 JULY 2022 (Audited) 27,166 14,951 21,222 11,478 74,817
Share capital issued - 39 - - 39
Profit and total comprehensive
income for the period - - - 28,088 28,088
EQUITY SHAREHOLDERS' FUNDS
AS AT 31 DECEMBER 2022 (Unaudited) 27,166 14,990 21,222 39,566 102,944
----------------------------------------- ========== =========== =========== =============== ==========
CONSOLIDATED CASH FLOW STATEMENT
FOR THE 6 MONTHSED 31 DECEMBER 2022
Note 2022 2021
Unaudited Unaudited
GBP000 GBP000
Cash flows from operating activities
Profit for the period after tax 28,088 24,346
Income tax expense 5,767 3,210
Depreciation 1,292 1,320
Amortisation 6,018 6,251
Reversal of prior period impairment
charge - (1,095)
Profit on disposal of intangible assets (1,757) (25,752)
Finance costs 611 512
Finance income (636) (456)
--------------- ------------
39,383 8,336
Decrease in inventories 453 921
Decrease in receivables 4,137 1,190
Decrease in payables and deferred
income (15,522) (6,644)
--------------- ------------
Cash generated from operations 28,451 3,803
Interest paid (31) (42)
Interest received 327 19
--------------- ------------
Net cash flow from operating activities 28,747 3,780
--------------- ------------
Cash flows from investing activities
Purchase of property, plant and equipment (892) (801)
Purchase of intangible assets (14,341) (13,801)
Proceeds from sale of intangible assets 16,197 20,660
--------------- ------------
Net cash generated from investing
activities 964 6,058
--------------- ------------
Cash flows from financing activities
Repayment of debt (640) (640)
Payments on leasing activities (343) (378)
Dividend on Convertible Cumulative
Preference Shares (455) (481)
--------------- ------------
Net cash used in financing activities (1,438) (1,499)
--------------- ------------
Net increase in cash equivalents 28,273 8,339
Cash and cash equivalents at 1 July 31,869 19,459
--------------- ------------
Cash and cash equivalents at 31 December 10 60,142 27,798
=============== ============
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 2023 will be in
accordance with UK adopted international accounting standards.
The financial information in this interim report for the six
months to 31 December 2022 and to 31 December 2021 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
2022
The following amended standards have been adopted as of 1 July
2022
-- Amendments to IFRS 3, IAS 16 and IAS 37 - Property Plant and
Equipment Proceeds before Intended Use
-- Amendments to IFRS 1, IFRS 9, IAS 41 and Illustrative
examples accompanying IFRS 16 - Annual Improvements to IFRSs
(2019-2020 Cycle)
Going concern
The Company has sufficient financial resources available to it,
together with established contracts with a number of customers and
suppliers. As a consequence, the Directors believe that the Company
is well placed to continue managing its business risks successfully
and they have a reasonable expectation that the 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.
2. REVENUE
6 months 6 months
to 31 to 31
Dec 2022 Dec 2021
Unaudited Unaudited
GBP000 GBP000
Football and stadium operations 28,250 23,558
Multimedia and other commercial
activities 30,866 13,973
Merchandising 17,426 15,327
76,542 52,858
=========== ===========
Number of home games 14 19
=========== ===========
3. EXCEPTIONAL OPERATING ITEMS AND OTHER INCOME
The exceptional operating expense of GBP0.05m represents
settlement payments. In the previous period an exceptional
operating credit resulted from an impairment reversal in relation
to intangible assets offset by settlement payments. These items are
deemed to be unusual in relation to what management consider to be
normal operating conditions.
Other income represents incoming cash or receivables to the
business which is not deemed to be generated from the normal course
of business and does not meet the definition of revenue under
IFRS15. In the current financial year, this is represented by the
receipt of insurance proceeds in relation to business interruption.
The amount of income is only recognised when the likelihood and
value of any receipt is virtually certain i.e. the cash or
confirmation of payment have been received.
4. FINANCE INCOME AND EXPENSE
6 months 6 months
to to
31 December 31 December
2022 2021
Unaudited Unaudited
GBP000 GBP000
Finance income:
Interest receivable on bank deposits 310 19
Notional interest income 326 437
-------------- --------------
636 456
============== ==============
6 months 6 months
to to
31 December 31 December
2022 2021
Unaudited Unaudited
GBP000 GBP000
Finance expense:
Interest payable on bank and other
loans (31) (40)
Notional interest expense (296) (188)
Dividend on Convertible Cumulative
Preference Shares (284) (284)
-------------- --------------
(611) (512)
============== ==============
5. TAXATION
Tax has been charged at 19% for the six months ended 31 December
2022 (2021: 19%) 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 GBP5.8m (2021:
GBP3.2m).
6. EARNINGS PER SHARE
Basic earnings per share has been calculated by dividing the
profit for the period of GBP28.1m (2021: GBP24.3m) by the weighted
average number of Ordinary Shares in issue of 94,515,655 (2021:
94,446,660). 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 if dilutive.
7. INTANGIBLE ASSETS
31 December 31 December
2022 2021
Unaudited Unaudited
Cost GBP000 GBP000
At 1 July 67,511 49,559
Additions 5,650 16,760
Disposals (13,683) (19,186)
--------------- ---------------
At period end 59,478 47,133
=============== ===============
Amortisation
At 1 July 32,022 31,256
Charge for the period 6,018 6,251
Reversal of prior period impairment - 1,094
Disposals (12,886) (18,990)
--------------- ---------------
At period end 25,154 19,611
=============== ===============
Net Book Value at period end 34,324 27,522
=============== ===============
8. TRADE AND OTHER RECEIVABLES
31 December 31 December
2022 2021
Unaudited Unaudited
GBP000 GBP000
Trade receivables 21,232 34,381
Prepayments and accrued income 7,053 7,436
Other receivables 6,325 5,027
------------- -------------
34,610 46,844
============= =============
Amounts falling due after more than one year
included above are:
31 December 31 December
2022 2021
Unaudited Unaudited
GBP000 GBP000
Trade receivables 4,515 14,664
============= =============
9. SHARE CAPITAL
Authorised Allotted, called up and
fully paid
31 December 31 December
2022 2021 2022 2022 2021 2021
Unaudited Unaudited Unaudited
No No 000 No GBP000 No GBP000
000 000 000
Equity
Ordinary Shares of 1p each 223,681 223,681 94,526 945 94,457 945
Deferred Shares of 1p each 677,885 676,275 677,885 6,778 676,275 6,763
Convertible Preferred Ordinary
Shares of GBP1 each 14,721 14,722 12,718 12,718 12,734 12,734
Non-equity
Convertible Cumulative Preference
Shares of 60p each 18,298 18,297 15,797 9,478 15,797 9,479
Less reallocated to debt:
Initial debt - - - (2,753) - (2,753)
---------- ----------
934,585 932,975 800,926 27,166 799,263 27,168
========== ========== ========== =========== ========== ===========
10. 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
2022 2021
Unaudited Unaudited
GBP000 GBP000
Bank Loans due after more than
one year - (932)
Bank Loans due within one year (948) (1,236)
Cash and cash equivalents:
Cash at bank and on hand 60,142 27,798
------------- -------------
Net cash at bank at period end 59,194 25,630
============= =============
11. POST BALANCE SHEET EVENTS
Since the balance sheet date, we have acquired the permanent
registration of Hyeongyu Oh from Suwon Samsung Bluewings.
We have also permanently transferred the registrations of Josip
Juranovic to Union Berlin, Scott Robertson to Fleetwood Town and
Giorgos Giakoumakis to Atlanta United. In addition, the temporary
registrations of Moritz Jenz and Oliver Abildgaard were cancelled
and the registration of Yosuke Ideguchi was temporarily transferred
to Avispa Fukuoka.
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IR KZGMZVGRGFZM
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