Final Results

Celtic PLC
19 August 2005




                                   CELTIC plc

         Preliminary Results for the year ended 30 June 2005


SUMMARY OF THE RESULTS

Operational Highlights

   • Winners of the Tennents' Scottish Cup.

   • Participation in the UEFA Champions' League Group Stage.

   • Contract extensions awarded to John Hartson, Neil Lennon, Bobo Balde and
     Craig Beattie.

   • Appointment of Gordon Strachan as Football Manager.

   • NIKE appointed as new kit manufacturer on lucrative 5 year deal until
     2010.

   • Enhanced shirt sponsorship contract agreed with Carling until 2010.

Financial Highlights

   • Group turnover decreased by 9.9% to £62.17m.

   • Operating expenses reduced by 9.5% to £58.07m.

   • Profit from operations of £4.10m (2004: £4.87m)

   • Exceptional operating expenses of £2.96m (2004: £0.39m).

   • Loss after taxation of £7.73m (2004: £7.47m).

   • Year-end debt of £19.5m (2004: £15.8m).

For further information contact:

Brian Quinn, Celtic plc                       Tel: [phone]
Peter Lawwell, Celtic plc                     Tel: [phone]

Iain Jamieson, Celtic plc                     Tel: [phone]


CHAIRMAN'S STATEMENT

Taking the year 2004/2005 as a whole, the factors contributing to Celtic's
strong financial performance in the first half of the year were largely reversed
in the second half, as I forewarned in commenting on the half-year results. Exit
from Europe, combined with fewer home games in domestic competition, brought a
sharp reduction in revenues in the second half, so that for the year as a whole
profit from operations, at around £4 million, and loss after taxation of £7.7
million, were similar to last year.

Celtic's performance on the football field was mixed. The team again
participated in the UEFA Champions' League group stage, recording good results
against AC Milan and Barcelona; and retained the Tennents' Scottish Cup with a
record 40th success. However the Bank of Scotland Premierleague title was
surrendered in the final minutes of the last day of the season, a very
disappointing ending to a long and taxing League Championship.

On the face of it, last year marked a pause in the remarkable run of success
enjoyed by Celtic in recent years. Turnover was down for the first time in ten
years, with sales of merchandise in particular falling fairly sharply following
several years of uninterrupted growth. Net debt rose to £19.5 million. It is,
however, important to look behind and beyond a single year's figures.

Football and multimedia revenues, comprising 77% of total income last year, are
especially sensitive to progress in European competition, and our failure to go
beyond the end of the year in either the UEFA Champions' League or the UEFA Cup
had a significant effect on revenues. Likewise, merchandise sales suffered from
exceptional and extraneous factors, notably the general malaise in retail sales
and the switch to a new partner in this area, which had a negative short-term
effect.

Over a longer period the picture looks quite different. In the last five years,
revenues have grown from £42 million to £62 million and profit from operations
has been consistently positive. Backed by strong performances in domestic
competitions and a high profile in Europe, the Celtic brand has clearly
strengthened and expanded. Perhaps most important, but little appreciated, the
Company has come through the first real recession in the football sector,
achieving football success while avoiding the financial difficulties that have
afflicted so many clubs both in the UK and in Europe more generally.

We believe we have learned important lessons from this experience, lessons that
will inform our actions looking ahead. For example, careful management of costs,
particularly football players' contracts, is essential, if unpopular at times.
Thinking about the length and composition of these contracts has changed over
this five year period and we believe we are now applying best practice in this
area, while recognising that bringing about visible benefits takes a little
time. We have also made progress in achieving a greater degree of insulation for
revenues from the effect of set-backs in football results. Contracts with
minimum guaranteed amounts e.g. in respect of merchandise (NIKE) and shirt
sponsorship (Carling), now provide underpinning for football ticket sales. Peter
Lawwell and his management team deserve great credit for adopting and executing
this strategic step. Season tickets have held up well over the 5-year period at
between 53,000 and 54,000, and attendance at home games at Celtic Park have also
been sustained at between 57,000 and 59,000, a quite remarkable demonstration of
the support that Celtic enjoys. Taking all of these factors together, we believe
we are building a strong, successful business at Celtic Park.

Of course, the business must be based on the success of our football team. Under
the management of Martin O'Neill Celtic enjoyed dominance in Scotland and
re-emerged as a European force. The squad that delivered this success needs
significant refreshing and we have begun the challenging job of rebuilding, a
task that cannot be rushed and which has to be accomplished, if possible,
without an appreciable drop in standards. Gordon Strachan, the successor to
Martin, is fully on board as we go through the transition. This summer we have
already arranged the departure of ten players and we have recruited seven. I
believe supporters acknowledge that changes on this scale are not always
negotiated smoothly and are ready to give Gordon the time needed to bring about
the reconstruction of the squad.

Our younger players will help in this task. The reserve and under 19 teams won
their respective championships and Celtic, like many other SPL clubs, expects
home-grown players to play a prominent part in future Celtic teams. We will
expand our scouting arrangements, looking beyond the UK, and we have now
announced our preferred choice of location for a new and modern training
facility. No company, whatever field of activity they may be in, can neglect to
invest in the business; failure to do so results inevitably in longer-term
problems. This strengthening of our football infrastructure and the need to
maintain a sound financial base have clear implications for our resources going
forward and we are currently examining options in consultation with our bankers
and financial advisers.

We have also begun to look beyond Europe for new footballers. Shunsuke Nakamura,
a Japan international, was signed in the summer and we continually consider the
possibility of other international signings joining Celtic. These players open
up the prospect of exploring new markets for the Celtic brand; but these markets
are real rather than prospective only if the players play regularly for the
Club, and that will in turn happen only if they are good enough. It is,
nevertheless clear that the football market, whether for players or for
commercial opportunities, has expanded at a quite extraordinary pace in recent
years. Celtic cannot ignore the benefits that these developments might bring to
the Club.

Scottish football clubs now appear to have come through the worst of the recent
football recession. Several have emerged from administration and all have
applied themselves to the objective of achieving sustainable financial
stability. Management and Boards of Directors are looking beyond the immediate
pressures to the longer-term imperatives affecting their clubs. Squad sizes and
remuneration packages now more closely reflect the need to match input with
output, to achieve value for money spent and to do all the things companies in
other sectors have had to do to ensure survival.

These objectives could be more easily accomplished if reliable data on all
transfers and contracts were published regularly. Football must be one of the
few sectors where the value of the main assets - the players - remains primarily
a matter of rumour and conjecture. The involvement of player's agents adds a
further layer of obscurity. Managing a football company against this background
is made appreciably more difficult as a result. Of course all clubs would have
to make this data available - from the largest to the smallest - if a proper and
competitive market for footballers were to function effectively. And account
would have to be taken of the interests of the players themselves. This
information has long been available in some other sports, notably in the United
States, without obvious adverse effects. Thought should be given by the football
authorities and accounting profession to a more transparent market for
footballers and, by extension, to the valuation of football stadia, the
principal fixed asset of clubs.

I should like to take this opportunity to record our thanks and indebtedness to
Martin O'Neill for his time as manager of Celtic. He was an inspiration and a
leader of the highest quality. Celtic Football Club rose to an altogether higher
level during his tenure. The players and supporters enjoyed a sense of pride
absent from Celtic Park for a generation. I doubt if many people were aware of
the great personal pressures Martin has endured during his wife's illness. But
he continued throughout to present a positive face despite a punishing schedule
of travel and consultations with doctors and specialists. I know he also derived
great support from John Robertson and Steve Walford, his able assistants at
Celtic Park. I am sure all Celtic supporters will join me in wishing Geraldine a
full recovery and Martin an early return to football.

We are delighted to have secured the services of Gordon Strachan as successor to
Martin O'Neill. He has thrown himself into the job, showing great enthusiasm and
determination to sustain Celtic's position. Transitions on the scale we are
currently engaged in do take time and we are determined, along with Gordon, to
get it right. Football supporters are, almost by definition, impatient for
success; but I am confident our legendary support, famous throughout the world,
will understand if the process of rebuilding is not necessarily achieved
overnight. I ask for their backing in the expectation that it will be
forthcoming.

Brian Quinn CBE 19 August 2005
Chairman

OPERATING REVIEW

INTRODUCTION

The last 12 months have been an eventful time on the field for Celtic. We won
the Tennents' Scottish Cup, while narrowly missing out on retaining the Bank of
Scotland Premierleague title, and we participated in the UEFA Champions' League
group stage in what was acknowledged as the most difficult group, competing
against AC Milan, Barcelona and Shakhtar Donetsk.

In the Bank of Scotland Premierleague, we were just a few minutes away from
retaining our title, though it was to the credit of the team that they were able
to recover from the disappointment at Fir Park to win the Tennents' Scottish Cup
the following weekend at Hampden. That game was also the last competitive
fixture of Martin O'Neill's tenure as manager.

After five excellent years in charge, during which we won the Bank of Scotland
Premierleague three times, the Tennents' Scottish Cup twice, the CIS Cup once
and, of course, reached the UEFA Cup final in 2003, Martin indicated that he
wanted to step down as manager for family reasons. The circumstances surrounding
his departure were tinged with sadness and the thoughts of everyone in the
Celtic family are with Martin and his family.

Following the success that the Club had enjoyed since his appointment in 2000,
it was fitting that Martin, along with his assistants, John Robertson and Steve
Walford, accepted the Tennents' Scottish Cup after our victory against Dundee
United.

In Gordon Strachan, we have appointed a manager who we believe will continue to
bring success to the Club. He has a wealth of experience gained from years as a
player and a manager, and an impressive knowledge of the game. Gordon has
already spoken of his excitement at joining Celtic and of his desire to win.
First and foremost, that means winning the league title.

FINANCIAL PERFORMANCE

Group turnover has reduced by £6.85m, 9.9% to £62.17m from 2004, largely as a
result of 4 fewer home games being played in the year, including three UEFA Cup
games played in the second half of last season. In the current year, turnover
benefited from the high take-up of standard season tickets, together with the
revenues generated from participation in the group stage of the UEFA Champions'
League.

Operating expenses, excluding exceptional operating costs, have declined by
£6.08m, 9.5% to £58.07m, predominantly due to reduced cost of sales particularly
within merchandising and catering, labour costs both football and non-football
and other direct overheads related to activity in the year.

Exceptional operating expenses at £2.96m mainly reflect the costs incurred in
the early termination of certain players' contracts whereas those incurred last
year reflected the implementation of a cost rationalisation plan.

The amortisation charge of £7.34m is down almost 32% on last year reflecting the
reduced carrying value of the first team squad and a decline in the value of
transfer fees paid in recent years.

The pre tax loss reported of £7.73m, despite the reduction in operating expenses
and amortisation as noted above, re-emphasises the ongoing challenge to match
football success with financial stability. Total debt rose to £19.50m from
£15.80m as at 30 June 2004.

FOOTBALL INVESTMENT

We have embarked on a rebuilding process and have made a significant investment
in the football team, with seven new players signing during the close season -
Maciej Zurawski, Shunsuke Nakamura, Artur Boruc, Paul Telfer, Mo Camara, Adam
Virgo and Jeremie Aliadiere. A number of players left the Club - Paul Lambert,
Jackie McNamara, Robert Douglas, Magnus Hedman, Ulrik Laursen, Momo Sylla, Joos
Valgaeren, David Fernandez, Craig Bellamy, Stephane Henchoz, Bobby Petta, Henri
Camara and Juninho - and we thank them all for their contributions to our
success in recent seasons. In addition, contract extensions were awarded to John
Hartson, Bobo Balde, Neil Lennon and Craig Beattie. These changes have given us
the opportunity to refresh the playing pool as well as recalibrate the wage
bill, while still maintaining and possibly improving the quality of the playing
squad, and we look forward to the team having a successful year.

FOOTBALL OPERATIONS

Revenue from Football Operations was reported as £31.43m.

This was achieved mainly as a result of strong season ticket sales in both
standard and premium areas following a price increase of 5%. Demand for season
tickets during the 2004/2005 season remained strong, with sales of 50,805 in
standard and 2,564 in premium. During the season, the Club's Ticket Office sold
a total of 565,549 tickets for 59 first team matches. 367,953 tickets were sold
for our 27 home matches and a further 164,723 for matches played at away or
neutral venues.

The UEFA Champions' League proved a major attraction for our supporters once
again and ticket sales from our three home matches generated revenues of just
over £4m. Celtic supporters took up 90% of the tickets offered for matches not
played at Celtic Park. This was a tremendous response and once again Celtic
supporters proved their importance to both the Club and Scottish football by
travelling in such number all over the country, and indeed Europe, to back the
team.

At the beginning of the 2004/2005 season, in an effort to improve on customer
service levels and reduce waiting times, Ticketmaster was contracted to sell
tickets for our home matches through their state-of-the-art call centre. This
partnership worked well in its first year, with a total of 48,574 tickets sold
through this channel. In addition, Ticketmaster have supported our popular
online booking facility, and both these initiatives will continue to be
developed along with our new SMS booking service which was successfully piloted
last season and is now fully operational for away match ticket bookings.

YOUTH DEVELOPMENT

Revenues from Youth Development were £1.54m in comparison to £1.36m last year.

The Club continues to see the benefits of substantial investment in our Youth
Academy, with a number of talented young players making the breakthrough to the
first team squad in the past 12 months. That is due to the hard work and
dedication of everyone in the youth development set-up. The Club has also
acquired rights on a conditional basis to purchase land on the site of the
former Lennox Castle Hospital, which has been earmarked as the preferred
location for a training and Youth Academy facility.

With Tommy Burns having been appointed as first team coach, in addition to his
role as Head of Youth, Willie McStay will now assist Tommy in the day-to-day
running of the Academy. Willie will continue to coach the Under 19's who, last
season, won their League Championship and the SFA Youth Cup. The reserve squad,
coached by Kenny McDowall, also won its League Championship for the fourth year
in a row. Both squads contain players who are still of an age to play at a
younger level, which is a further indication of the quality of the players at
Celtic and bodes well for the future.

Former youth players Craig Beattie, Shaun Maloney, Aiden McGeady, David
Marshall, Stephen McManus and Ross Wallace have all made valuable contributions
in the past 12 months, while Paul Lawson and Michael Gardyne recently made their
first-team debuts in the pre-season friendly against Leeds United.

Donations from Celtic Development Pools continue to provide much of the funding
for the Youth Development operation. Celtic Pools remains the most successful
small lottery within the British football sector. To assist in maintaining this
position, easier methods of paying the weekly pools such as on-line and direct
debit payments are now options being marketed to supporters. Other online
opportunities will also be explored.

CELTIC IN THE COMMUNITY

Celtic in the Community provides a coaching service tailored to meet the needs
of children, teenagers and adults. Since the inception of the scheme in June
2003, over 200,000 attendees have been involved in coaching courses and services
provided by Celtic in the Community. The Celtic in the Community programme also
provides a pathway into our Youth Academy. Over 100 youngsters have been
identified and invited into the Development Centre Programme and four have made
their way into the Academy itself.

The Community Department is now self-financing and generates a small profit for
the Club.

During this time, Celtic in the Community has established excellent partnership
arrangements with a number of public, voluntary and private agencies to develop
and deliver the notion of stronger local communities. The Celtic in the
Community programme now operates in Ireland in partnership with Topflight
Soccer. Over 1,000 youngsters (boys and girls) participated in the week-long
summer programme. 88 camps were operated in Scotland and Ireland this summer.

MERCHANDISING

Merchandising had a difficult year, which was reflected throughout the retail
industry. Sales of £10.06m were 25.1% down on the previous year. This was
largely attributable to a general slowdown in high street retail, lower margins
and the change of kit manufacturer from Umbro to NIKE.

The NIKE brand is one of the world's most popular and will provide Celtic with a
global opportunity to market our unique and popular football kits. Sales of the
new home kit are encouraging and with the full range of NIKE product now in
store we hope to see a sharp upturn in fortunes within our retail operation. Our
Celtic Mail Order and Internet Sales Operations have now been transferred to
Kitbag, a specialist company who already work with a number of other top clubs,
including Chelsea, Manchester United and Barcelona, as well as with UEFA and
NIKE. Their greater call-handling capacity will bring significant benefits to
our customer service standards.

We have increased the number of retail outlets, with a new store opening in East
Kilbride. Further openings are planned for stores in Clydebank and Coatbridge,
which will take our total to twelve.

MULTIMEDIA

Total Multimedia revenues at £16.60m compare to £16.06m in 2004.

The Club's Multimedia Division has undergone restructuring since the joint
venture with Setanta to set up Celtic TV was launched at the start of this past
financial year. Several personnel from the Multimedia Division moved to join the
new company and those who remained at the Club have concentrated on expanding
the online web services at celticfc.net through subscription channels, providing
video editorial for the Football Department, producing video and DVD products
for the Merchandising Division, developing pay-per-view events and managing the
Club's own TV rights.

Celtic Replay and Celtic Live (an internet service offering live video to ex-UK
& Ireland users) have changed to Channel 67 Online (Replay) and Channel 67
Online+ (Live). The celticfc.net site is being redeveloped and the intention is
to launch a fully functional Japanese site at the same time as the re-launch of
celticfc.net. Further development of the Japanese market will continue with
active marketing of Channel 67 Online+ in that territory.

At the end of its first full year Celtic TV had approximately 17,000
subscribers. The plan for the future, to suit the needs of both partners, is
that Celtic TV will become a licensed Celtic brand operated by Setanta and the
Club will receive a licence fee.

We have also signed a new publishing deal with CRE8, who will now design and
produce the Celtic View and the matchday programme and this will give us a
guaranteed income for the next five years. They are an award-winning company and
are looking forward to working with such a strong brand as the Celtic View.

PARTNER PROGRAMME

The appointment of NIKE as exclusive Club sponsor for products and kit in a
5-year deal worth a minimum of £25m, subject to contractual conditions, to
Celtic strengthened the Partner Programme.

Further success for the Partner Programme was established when Coors Brewers
Limited extended the Old Firm shirt sponsor agreement to 2010, under their
increasingly popular Carling brand.

Season 2004/05 also saw the introduction of Thomas Cook as the Club's Official
Holiday Partner and Direct Choice as Official Insurance Partner, both of whom
were carefully selected for the added value they can bring to the Club and to
the support.

The above join our long-standing partners T-Mobile, Phoenix, MBNA, Lonsdale
Travel, Lindley Catering and Ladbrokes, all of whom we are pleased to continue
working with in the Partner Programme.

These major relationships go a long way to securing a major proportion of our
income streams over the next five years.

STADIUM

Overall stadium revenues were £2.54m in the year, a reduction of £0.91m from
2004, largely as a result of outsourcing concourse catering.

FACILITIES

Following a review of costs and service provision, the existing outsourcing
contract with Alfred McAlpine Business Services was terminated in April 2005 and
the function was brought in house.

CATERING AND CORPORATE HOSPITALITY

Season 2004/2005 was one of consolidation for our Catering and Corporate
Hospitality division after some significant changes last season. These have
resulted in considerable improvement in our service and quality within these
areas and we have experienced an improvement in our financial performance for
the year.

We enjoyed a successful first year with Lindley Catering Ltd as our concourse
catering provider and look forward to more success with them in the remaining
four years of that contract. A major course of refurbishment works has been
undertaken in the South Stand boxes, Walfrid Kitchen and Kerrydale Suite for the
season ahead.

STADIUM DEVELOPMENT

During the course of the year, Celtic worked in close liaison with the Glasgow
City Council Safety Team for Sports Grounds to seek to enhance the safe
management of spectators accessing the Stadium. Various physical improvements to
the environment in and around Celtic Park were implemented. These included the
installation of additional gate access at Janefield Street East and West, an
increase in the number of turnstile entry points to improve access for
spectators, hard landscaping of existing ground to enhance safer circulation and
improved lighting in the Janefield Street area.

The Club will continue to place spectator safety as its highest priority and
during the forthcoming season will introduce colour coded tickets to improve
access for spectators and will undertake a pilot study of SMART Card Entry
Systems and associated technology at Celtic Park.

SUPPORTER RELATIONS

Throughout the past year we have maintained our monthly meeting cycle with
supporters' representatives and I am pleased to say that the constructive nature
of these meetings has allowed our good relations to continue. In addition, the
Chairman and other Directors have attended supporter functions in Scotland and
Ireland.

It is important that supporters are fully aware of what is going on behind the
scenes and we have tried where practical to ensure this has been the case.
Additionally this season we have introduced some new initiatives such as
invitations to press conferences at Celtic Park and have actively supported the
initiative of a singing section for home games.

Customer Service is another area, which we take extremely seriously and we
believe that we have made great strides in this area in all aspects of the
business and will continue to work with supporters to ensure that we reach the
standard expected.

Everyone at the Club appreciates the contribution provided by our supporters
around the world and we look forward to that being continued in the coming year.

CELTIC CHARITY FUND

Celtic Charity Fund has continued to build on the success of last year when the
Fund reached the milestone of £1m in funds raised since its formation in 1995.
Fundraising activity has been extremely successful again this year with a number
of worthy causes benefiting from Celtic Charity Fund support. A more detailed
report on their activities is contained on pages 45 and 46.

The Club would like to thank all those who have contributed to the success of
the Charity Fund including supporters, players, Trustees and the fund raising
action group.

WORK WITHIN THE LOCAL COMMUNITY

Celtic continues to play an active role within the local community. Through a
range of partnerships, the Club continues to honour the ambitions of the Club's
founders as an institution for all, working to assist those in need and ensuring
opportunity for young people in particular. Celtic has worked with Glasgow City
Council and other agencies to deliver a number of projects such as youth
football initiatives and activities aimed at combating racism and sectarianism.

We were pleased during the year to continue our support of the Sense over
Sectarianism initiative, which brings together Celtic Football Club, Rangers
Football Club, the Catholic Church and Church of Scotland as well as Glasgow
City Council to fund a range of local initiatives aimed at combating
sectarianism. During the year many projects have been launched and extensive
work undertaken with young people through the school curriculum.

Celtic was also delighted in April of this year to launch the Old Firm Alliance
project in conjunction with Rangers Football Club. The project is supported
financially by the Social Justice Resources Fund through the Glasgow Alliance
and aims to educate young people on the benefits of a healthier lifestyle,
provide them with positive role models and challenge racist and sectarian
attitudes and other anti-social behaviour.

Celtic Education continues to use the focus of Celtic to develop the skills,
motivation and confidence of young people who have faced challenges at school.
Thousands of young people have already benefitted from this project in terms of
increased self-esteem, improved health and fitness, and increased positive
behaviour.

The Club also hopes to be in a position in the near future to announce the
opening of a new study and education facility at Celtic Park, developed in
association with Glasgow City Council and to be used by young people within the
local community.

Around 50 pupils from local schools have enjoyed a week of structured work
experience at Celtic Park during the year.

HUMAN RESOURCES

We continued to strive for improvements in internal communication during the
year. Feedback from the 2004 Colleagues' Opinions Survey resulted in the
resumption of regular Colleagues' Meetings and the launch of a new Information
and Consultation forum. Further progress was also made in implementing the
action plan for Health and Safety.

The hard work and contribution of all colleagues in another challenging year is
once again greatly appreciated.

SUMMARY AND OUTLOOK

The defeat by Artmedia Bratislava in the UEFA Champions' League qualifier was
massively disappointing and presents a number of operational and financial
challenges that are now being addressed. Most importantly, we will provide
Gordon Strachan with every possible assistance in the development of the first
team and his review of the other football operations. We plan to strengthen our
scouting and coaching network and progress the development of our Youth Academy
facility at the Lennox Castle site. In addition, season ticket sales for 2005/
2006 have been encouraging and the new contracts agreed with NIKE, Carling and
Kitbag, together with the revenues generated from our partner programme and
Japanese initiatives, allow us to move forward with some optimism. The benefit
of these new contracts will be reflected in the coming years. In addition, the
close season transfer activity resulted in a substantial reduction in football
wage costs and this, together with a planned reduction in amortisation costs
will result in a reduced cost base and a sustainable financial position.

We will remain focussed in our quest for continued domestic football success and
to bring UEFA Champions' League football back to Celtic Park on an annual basis.

Peter T Lawwell 19 August 2005
Chief Executive


GROUP PROFIT & LOSS ACCOUNT

Year Ended 30 June                              2005                      2004

                                Operations      Player       Total        £000
                                 excluding     trading
                                    player
                                   trading
                                      £000        £000        £000
Notes

TURNOVER -
group and
share of joint
venture                             62,636           -      62,636      69,020

LESS SHARE OF
JOINT VENTURE                         (468)          -        (468)          -
                                     -------     -------     -------    --------

GROUP TURNOVER           2          62,168           -      62,168      69,020

OPERATING
EXPENSES                           (58,068)          -     (58,068)    (64,150)
                                     -------     -------     -------    --------

PROFIT FROM
OPERATIONS                           4,100           -       4,100       4,870

EXCEPTIONAL
OPERATING
EXPENSES                 3          (1,555)     (1,402)     (2,957)       (390)

AMORTISATION
OF INTANGIBLE
FIXED ASSETS                             -      (7,340)     (7,340)    (10,770)
                                     -------     -------     -------    --------

GROUP
OPERATING
PROFIT/(LOSS)                        2,545      (8,742)     (6,197)     (6,290)
LESS SHARE OF OPERATING                  -           -           -           -
PROFIT / (LOSS) IN JOINT             -------     -------     -------    --------
VENTURE

TOTAL
OPERATING
PROFIT/(LOSS)                        2,545      (8,742)     (6,197)     (6,290)

(LOSS)/PROFIT
ON DISPOSAL OF
INTANGIBLE
FIXED ASSETS                             -        (139)       (139)        306

LOSS ON
DISPOSAL OF
TANGIBLE FIXED
ASSETS                                (103)          -        (103)       (150)
                                     -------     -------     -------    --------

PROFIT/(LOSS)
BEFORE
INTEREST AND
TAXATION                             2,442      (8,881)     (6,439)     (6,134)
                                     -------     -------

INTEREST
PAYABLE                                                     (1,294)     (1,337)
                                                             -------    --------

LOSS ON
ORDINARY
ACTIVITIES
BEFORE
TAXATION                                                    (7,733)     (7,471)

TAX CHARGE ON
LOSS ON
ORDINARY
ACTIVITIES               4                                       -           -
                                                             -------    --------

LOSS FOR THE
YEAR                                                        (7,733)     (7,471)

DIVIDENDS -
non equity               5                                  (1,445)     (1,455)
                                                             -------    --------

RETAINED LOSS
FOR THE YEAR                                                (9,178)     (8,926)
                                                             -------    --------

LOSS PER
ORDINARY SHARE           6                                  (29.80p)    (29.15p)

DILUTED LOSS
PER SHARE                6                                  (29.80p)    (29.15p)

All amounts relate to continuing operations.

There were no gains or losses recognised in 2005 other than the loss for the
year.





GROUP BALANCE SHEET

As At 30 June                                2005                   2004
                             Notes      £000      £000        £000      £000

FIXED ASSETS
Tangible assets                                 48,983                48,428
Intangible assets                                5,253                12,032
Investment in joint venture:
                                                 -------                ------
Share of gross assets in                           487                     -
joint venture
Share of gross liabilities
in joint venture                                  (487)                    -
                                                 -------                ------
Share of net assets                                  -                     -
                                                 -------                ------
                                                54,236                60,460

CURRENT ASSETS
Stocks                                 1,987                 1,763
Debtors                                4,633                 5,317
Cash at bank and in hand                 171                   371
                                       -------                ------

                                       6,791                 7,451
                                       =======                ======
CREDITORS - Amounts
falling due within one year          (14,078)              (15,610)

Income deferred less
than one year                        (11,234)              (10,908)
                                       -------                ------

                                     (25,312)              (26,518)
                                       =======                ======

NET CURRENT LIABILITIES                        (18,521)              (19,067)
                                                 -------                ------

TOTAL ASSETS LESS
CURRENT LIABILITIES                             35,715                41,393

CREDITORS - Amounts falling
due after more than one year                   (19,500)              (16,000)
                                                 -------                ------

NET ASSETS                                      16,215                25,393
                                                 =======                ======

CAPITAL AND RESERVES
Called up share capital
(includes non-equity)                           29,405                29,405
Other reserve                                   21,222                21,222
Profit and loss account                        (34,412)              (25,234)
                                                 -------                ------

SHAREHOLDERS' FUNDS              7              16,215                25,393
                                                 =======                ======


Approved by the Board on 19 August 2005





GROUP CASH FLOW STATEMENT

Year Ended 30 June                                            2005        2004
                                                              £000        £000

RECONCILIATION OF OPERATING LOSS TO NET
CASH INFLOW FROM OPERATING ACTIVITIES

Operating loss                                              (6,197)     (6,290)
Depreciation                                                 1,627       1,371
Amortisation of intangible fixed assets                      7,340      10,770
Provision for impairment of intangible fixed assets          1,402           -
(Increase) / decrease in stocks                               (224)        296
Decrease / (increase) in debtors                               584        (333)
Increase in creditors and deferred income                      669       2,921
                                                          ----------  ----------

Net cash inflow from operating activities                    5,201       8,735
                                                          ==========  ==========

CASH FLOW STATEMENT

Net cash inflow from operating activities                    5,201       8,735
Returns on investments and servicing of finance (Note 9)    (4,392)     (1,893)
Capital expenditure and financial investment (Note 9)       (4,507)     (4,865)
                                                          ----------  ----------

Cash (outflow) / inflow before financing                    (3,698)      1,977

Financing (Note 9)                                           3,498      (2,359)
                                                          ----------  ----------

Decrease in cash                                              (200)       (382)
                                                          ==========  ==========

RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET DEBT (Note 8)

Decrease in cash in the period                                (200)       (382)
Cash (inflow)/outflow from (increase)/decrease in debt      (3,498)      2,359
                                                          ----------  ----------

Change in net debt resulting from cash flows                (3,698)      1,977
                                                          ----------  ----------

Movement in net debt in the period                          (3,698)      1,977

Net debt at 1 July                                         (15,805)    (17,782)
                                                          ----------  ----------

Net debt at 30 June                                        (19,503)    (15,805)
                                                          ==========  ==========





NOTES TO THE ACCOUNTS


1.        ACCOUNTING POLICIES

The Financial Statements are prepared under the historical cost convention and
comply with applicable accounting standards.

The Financial Statements have been prepared on the same basis and using the same
accounting policies as those used in the Financial Statements for the year ended
30 June 2004.

The Group's Profit and Loss Account follows the Financial Reporting Guidance for
Football Clubs issued in February 2003 by The Football League, The FA Premier
League and the FA, although the turnover within Note 2 continues to be analysed
in accordance within the headings of the business operations of the Group.

2.        TURNOVER

Turnover in respect of the five business operations
comprised:                                                   2005         2004
                                                             £000         £000

Professional football                                      31,432       34,728
Multimedia and communications                              16,604       16,062
Merchandising                                              10,060       13,425
Stadium enterprises                                         2,536        3,449
Youth development                                           1,536        1,356
                                                         ----------   ----------

                                                           62,168       69,020
                                                         ----------   ----------

Number of Home Games                                           27           31

3.        EXCEPTIONAL OPERATING EXPENSES

The exceptional operating expenses of £2.96m (2004: £0.39m) incorporated in the
profit and loss account reflect £1.56m of labour costs and other ancillary
expenses and £1.40m in respect of a provision for impairment of intangible fixed
assets, largely arising as a result of the early termination of certain player
contracts. Last year's costs of £0.39m reflected redundancy and other ancillary
costs of the rationalisation programme implemented that year.

4. TAXATION
No provision for corporation tax or deferred tax is required in respect of the
year ended 30 June 2005. Estimated tax losses available for set-off against
future trading profits amount to approximately £42m (2004: £35.0m). This
estimate is subject to the agreement of the current and prior years' corporation
tax computations with the Inland Revenue.

5.        DIVIDENDS

The non-equity dividend of £1,445,050 (2004: £1,454,773) comprises the dividend
of 6% of £544,428 (2004: £554,151) payable on 31 August 2005 to those holders of
Convertible Cumulative Preference Shares on the share register at 15 July 2005,
together with the amount due in respect of the Convertible Preferred Ordinary
Shares fixed dividend of 4% of £900,622 (2004: £900,622) which is payable on 31
August 2005. A number of shareholders have elected to participate in the
Company's scrip dividend reinvestment scheme for this financial year. Those
shareholders will receive new Ordinary Shares in lieu of cash.

6.        LOSS PER SHARE

The loss per share has been calculated by dividing the loss for the period of
£9.18m (2004: £8.93m) by the weighted average number of Ordinary Shares of 30.80
million (2004: 30.62 million) in issue during the year. The diluted loss per
share has been calculated using the same figures as the basic calculation. No
account has been taken of share purchase options, as these potential ordinary
shares are not considered to be dilutive under the definitions of the applicable
accounting standards.



7.     RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                                                             Group
                                                2005                      2004
                                                £000                      £000

At 1 July                                     25,393                    34,319

Movements in year:
Retained loss for the year                    (9,178)                   (8,926)
                                            ----------                ----------

At 30 June                                    16,215                    25,393
                                            ----------                ----------

At 30 June 2005 Non-Equity Shareholders' Funds, defined in accordance with FRS4,
amounted to £29.54m (2004: £31.37m). This relates to the Convertible Preferred
Ordinary Shares, the Convertible Cumulative Preference Shares and the associated
accrued dividends.

8.     ANALYSIS OF NET DEBT

                            At              Cash Flow       At
                            1 July 2004              £000   30 June 2005
                                     £000                                 £000

Cash at bank and in hand              371            (200)                 171
                                   --------        --------           ----------

                                      371            (200)                 171
                                   --------        --------           ----------

Debt due within 1 year               (176)              2                 (174)
Debt due after 1 year             (16,000)         (3,500)             (19,500)
                                   --------        --------           ----------

                                  (16,176)         (3,498)             (19,674)
                                   --------        --------           ----------

Net debt                          (15,805)         (3,698)             (19,503)
                                   --------        --------           ----------

9.    ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT

                                                             2005         2004
                                                             £000         £000

Returns on investments and servicing of finance
Dividends paid                                             (3,098)        (556)
Interest paid                                              (1,278)      (1,271)
Interest element of hire purchase payments                    (16)         (66)
                                                         ----------   ----------

Net cash outflow from returns on investments and           (4,392)      (1,893)
servicing of finance
                                                         ----------   ----------
Capital expenditure and financial investment
Payments to acquire tangible fixed assets                  (1,966)      (1,250)
Payments to acquire intangible fixed assets                (2,891)      (3,765)
Proceeds from sales of intangible fixed assets                350          150
                                                         ----------   ----------

Net cash outflow from capital expenditure and              (4,507)      (4,865)
financial investment
                                                         ----------   ----------
Financing
Loans received / (paid)                                     3,500       (2,000)
Loan instalments paid                                          (2)          (6)
Capital element of hire purchase payments                       -         (353)
                                                         ----------   ----------

Net cash inflow / (outflow) from financing                  3,498       (2,359)
                                                         ----------   ----------

10.       ANNUAL REPORT & ACCOUNTS

Copies of the annual report & accounts will be sent to all shareholders in due
course.

The financial information set out above was approved by the directors on 19
August 2005 and does not constitute the Company's statutory accounts for the
years ended 30 June 2005 or 30 June 2004. The auditors' opinion on the 2005
statutory accounts is unqualified and does not include a statement under Section
237 (2) or (3) of the Companies Act 1985. The statutory accounts for 2004 have
been filed and those for 2005 will be delivered to the Registrar of Companies in
due course.




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