Interim Results

RNS Number : 2572X
Celtic PLC
13 February 2012
 



13 February 2012

 

 

 

CELTIC plc

 

INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2011

                 

 

 

Key Highlights

 

 

·    Turnover increased by 3.1% to £29.27m.

 

·    Operating expenses increased by 3.3% to £28.39m.

 

·    Profit from trading of £0.88m (2010: £0.92m).

 

·    Profit on disposal of intangible assets £3.15m (2010: £13.20m).

 

·    Profit before taxation of £0.18m (2010:£7.06m)

 

·    Period end bank debt of £7.05m (2010: £9.09m).

 

·    Investment in football personnel of £4.44m (2010: £9.00m).

 

·    16 home fixtures (2010: 15).

 

·    Currently 1st  in the Clydesdale Bank Premier League

 

·    Continued participation in both domestic Cup competitions.

 

 

 

For further information contact:

 

Ian Bankier, Celtic plc

Tel: 0141 551 4235

Peter Lawwell, Celtic plc

Tel: 0141 551 4235

Iain Jamieson, Celtic plc

Tel: 0141 551 4235

 


 

Celtic plc

CHAIRMAN'S STATEMENT

 

I am pleased to report on our financial results for the period of six months which ended on 31 December 2011. The key highlights are set out in summary form on the introductory page.

 

On the park, the momentum that was lost at the start of this football season has been more than recovered.  At the date of today's report we have a lead in the SPL, which we look to carry through to the end of the season.  

 

Our entry into this season's UEFA Europa League Group stages was unorthodox, involving several visits to UEFA and eventually the Court of Arbitration for Sport.    We were successful in our claims and the team also showed that we deserved to be involved, performing well against top European opposition in a difficult group.

 

European participation contributed to our turnover for the half-year, which increased slightly (3.1%) over the previous year, by £0.88m to £29.27m. This increase offset reduced revenues from pre-season tours and merchandising.  Both are areas where the marketplace domestically and internationally remains very challenging.  Like many with a presence in the high street, we continue to see difficult conditions driven by a squeeze on household incomes.

 

Operating expenses also rose slightly, to £28.39m (3.3%), in line with the increase in turnover, with our profit from trading before asset transactions and exceptional operating expenses at £0.88m (2010: £0.91m) virtually unchanged.  The second half of the financial year is expected to follow a similar trading pattern to that experienced in previous years.  Our period end bank debt of £7.05m is around £2.0m less than at the same time last year, and remains manageable, and well within the Club's facilities.

 

At this time last year we reported a profit from player transfer activity of £13.20m. This year, the comparable figure is considerably less, at £3.15m. The key dynamic driving these interim results and our financial performance for the remainder of this financial year is our player investment and transfer strategy. We invested £4.44m in the first half of the year and have followed this with further acquisitions in the most recent January registration window.  We can confidently say that the strength and depth of the player pool now available to the Football Manager is better than it has been for several seasons. This has been a conscious decision that the financial discipline of the past has allowed us to take. As a result, we have been able to enjoy the virtuous trilogy of being able to keep our best players, build and develop significant value in our player pool, and see improvements in football performance.    

 

Although we have a clear short term focus for this season, we have not forgotten our future; it is very encouraging to see our youth players holding their own in the Next Generation tournament, the rising presence in the first team of talented young professionals identified through our scouting system and Youth Academy, and increases in the numbers of families and children coming to watch them.

 

Finally, it would be remiss of me not to pay tribute in this statement to our Football Manager, Neil Lennon. In the early part of this season he faced an uncharacteristic run of poor results in a calm, professional and resolute manner, and with unshakeable self-belief he has put us in a strong position to challenge for all 3 domestic trophies.  

 

The bond between this Club and its supporters has seldom been stronger and as we move into the remainder of the football season, there is much to look forward to.

 

Ian P Bankier                                                                         13 February 2012

Chairman

 

 

 

Celtic plc

 

INDEPENDENT REVIEW REPORT TO CELTIC PLC

 

 

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 2011 which comprises the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Changes in Equity, Consolidated Cashflow Statement and the related notes.  We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

 

This report is made solely to the company in accordance with the terms of our engagement.  Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.

 

Directors' responsibilities

 

The half-yearly financial report is the responsibility of, and has been approved by, the directors.  The directors are responsible for preparing the half-yearly financial report in accordance with the AIM Rules of the London Stock Exchange.

 

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union.  The condensed set of financial statements included in this half-yearly financial report has been prepared using accounting policies consistent with those to be applied in the next annual financial statements.

 

Our responsibility

 

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial 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 Auditing Practices Board 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 Ireland) 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 condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2011 is not prepared, in all material respects, in accordance with the AIM Rules of the London Stock Exchange.

 

 

 

PKF (UK) LLP

Glasgow, UK

10 February 2012



Celtic plc

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 



6 months to 31 December

2011

Unaudited

 

6 months to 31 December 2011

Unaudited

6 months to

31 December 2011

Unaudited


6months to

31 December

2010

Unaudited

6months to 31 December

2010

Unaudited

6months to

31 December

2010

Unaudited

 

 

CONTINUING OPERATIONS:


Operations excluding player trading

 

 

Player trading

 

 

 

Total


Operations excluding player trading

 

 

Player trading

 

 

 

Total


Note

£000

£000

£000


£000


£000

REVENUE

2

29,271

-

29,271


28,387

-

28,387

OPERATING EXPENSES

3

(28,388)

-

(28,388)


(27,472)

-

(27,472)

PROFIT FROM TRADING BEFORE ASSET TRANSACTIONS AND EXCEPTIONAL OPERATING EXPENSES


 

 

883

 

 

-

 

 

883


 

 

915

 

 

-

 

 

915

 

AMORTISATION OF

INTANGIBLE ASSETS


 

-

 

(3,351)

 

(3,351)


 

-

 

(4,878)

 

(4,878)

EXCEPTIONAL OPERATING EXPENSES

3

-

-

-


(758)

(761)

(1,519)

PROFIT  ON DISPOSAL OF

INTANGIBLE ASSETS


-

3,146

3,146


-

13,203

13,203

LOSS ON DISPOSAL OF PROPERTY PLANT AND EQUIPMENT


(120)

-

(120)


(293)

-

(293)

PROFIT  BEFORE

FINANCIAL EXPENSES AND TAXATION


 

763

 

(205)

 

558


 

(136)

 

7,564

 

7,428










FINANCE COSTS:

BANK LOANS AND OVERDRAFT

CONVERTIBLE PREFERENCE SHARES

4



 

(109)

(272)




 

(108)

(264)

 

PROFIT  BEFORE TAX




 

177




 

7,056

TAXATION

5



-




-










PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS

 

 

 

 



177




7,056

PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT




 

177




 

7,056

 

BASIC EARNINGS PER ORDINARY SHARE

 

6



 

0.20p




 

7.84p

 

DILUTED EARNINGS PER SHARE

 

6



 

0.33p




 

5.37p

 

 

 

 

 

Celtic plc

Registered number SC3487

CONSOLIDATED BALANCE SHEET



31 December

2011


31 December

2010


30 June

2011



 

Unaudited


 

Unaudited


 

Audited


Notes

£000


£000


£000

NON-CURRENT ASSETS







Property plant and equipment


53,637


55,077


54,357

Intangible assets

7

10,640


14,879


10,364



64,277


69,956


64,721

CURRENT ASSETS














Inventories


1,911


2,588


2,250

Receivables

8

5,576


13,720


5,837

Cash and cash equivalents


4,108


2,442


10,818



11,595


18,750


18,905

TOTAL ASSETS


75,872


88,706


83,626






EQUITY







Issued share capital

9

24,266


24,253


24,264

Share premium


14,443


14,399


14,399

Other reserve


21,222


21,222


21,222

Capital reserve


2,629


2,641


2,629

Retained earnings


(22,334)


(15,557)


(22,511)

TOTAL EQUITY


40,226


46,958


40,003

LIABILITIES

NON-CURRENT LIABILITIES

Interest bearing loans

 

10

 

 

 

10,781


 

 

 

11,156


 

 

 

10,968

Debt element of non-equity share capital


4,441


4,437


4,438

Deferred income


184


195


142



15,406


15,788


15,548

CURRENT LIABILITIES







Trade and other payables


12,016


17,912


15,815

Current borrowings


499


505


506

Deferred income


7,725


7,543


11,754



20,240


25,960


28,075

TOTAL LIABILITIES


35,646


41,748


43,623

 

TOTAL EQUITY AND LIABILITIES


 

75,872


 

88,706


 

83,626

 

Approved by the Board on 10 February 2012

 

Celtic plc

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

 

 


 

Share capital

 

Share premium

 

Other reserve

 

Capital reserve

 

Retained earnings

 

Total

 


£000

£000

£000

£000

£000

£000

EQUITY SHAREHOLDERS' FUNDS AS AT 1 JULY 2010

24,246

14,359

21,222

2,646

(22,613)

39,860















 

Share capital issued

      

1

 

40

 

-

 

 

-

 

41

 

Transfer from capital reserve

 

5

 

-

 

-

 

(5)

 

-

 

-

 

Profit and total comprehensive income for the period

 

-

 

-

 

-

 

-

 

7,056

 

7,056

EQUITY SHAREHOLDERS' FUNDS AS AT 31 DECEMBER 2010 (Unaudited)

 

24,252

 

14,399

 

21,222

 

2,641

 

(15,557)

 

46,957

 

Transfer from capital reserve

 

12

 

-

 

-

 

(12)

 

-

 

-

Profit and total comprehensive income for the period

 

-

 

-

 

-

 

-

 

(6,954)

 

(6,954)








EQUITY SHAREHOLDERS' FUNDS AS AT 30 JUNE 2011 (Audited)

24,264

14,399

21,222

2,629

(22,511)

40,003








 

Share capital issued

      

2

 

44

 

-

 

 

-

 

46















Profit and total comprehensive income for the period

 

-

 

-

 

-

 

-

 

177

 

177








EQUITY SHAREHOLDERS' FUNDS AS AT 31 DECEMBER 2011 (Unaudited)

 

24,266

 

14,443

 

21,222

 

2,629

 

(22,334)

 

40,226








 

Celtic plc

CONSOLIDATED CASH FLOW STATEMENT



6 months to

31 December

2011


6 months to

31 December

2010



Note

Unaudited


Unaudited 

 



£000


£000

 

Cash flows from operating activities




 

Profit before tax


177


7,056

 

Depreciation


981


1,047

 

Amortisation


3,351


4,878

 

Impairment of intangible assets


-


761

 

Profit on disposal of intangible assets


(3,146)


(13,203)

 

Loss on disposal of property, plant and equipment


120


293

 

Finance costs


381


372

 

Sub total


1,864


1,204

 






 

(Increase) / decrease in inventories


399


(813)

 

(Increase) in receivables


(235)


(134)

 

(Decrease) in payables and deferred income


(5,801)


(4,270)

 

Cash (utilised in) / generated from operations

(3,833)


(4,013)

 

Interest paid


(109)


(108)

 

Net cash flow from operating activities - A


(3,942)


(4,121)

 

Cash flows from investing activities





 

Purchase of property, plant and equipment


(469)


(439)

 

Purchase of intangible assets


(5,957)


(6,812)

 

Proceeds from sale of intangible assets


4,351


8,644

 

Net cash used in investing activities - B


(2,076)


1,393

 

Cash flows from financing activities





 

Repayment of debt


(194)


(194)

 

Dividends paid


(498)


(503)

 

Net cash (used) in financing activities - C


(692)


(697)

 

Net (increase)  in cash equivalents A+B+C


(6,710)


(3,425)

 

Cash and cash equivalents at 1 July


10,818


5,867

 

Cash and cash equivalents at period end

11

4,108


2,442

 

 

 

Celtic plc

NOTES TO THE FINANCIAL STATEMENTS

 

1.      This Interim Report, comprising the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Changes in Equity, Consolidated Cash Flow Statement and accompanying Notes, has been prepared in accordance with the AIM rules of the London Stock Exchange.  The measurement and recognition accounting policies applied are consistent with those that will be applied in the 2012 annual accounts which will be prepared in accordance with IFRS.

 

The interim results do not constitute the statutory accounts within the meaning of s434 of the Companies Act 2006.  The financial information in this Report for the six months to 31 December 2011 and to 31 December 2010 has not been audited.   The comparative figures for the year ended 30 June 2011 are extracted from the Group's audited financial statements for that period as filed with the Registrar of Companies.  They do not constitute the financial statements for that period.  Those accounts received an unqualified audit report which did not contain any statement under sections 498 (2) or (3) of the Companies Act 2006.

 

         The auditors have reviewed this Interim Report and their report is set out earlier in this document.  

 

                                                                                                             

2.      REVENUE - SEGMENTAL INFORMATION

 



6 months to

31 December

2011


6 months to

31 December

2010




Unaudited

£000


Unaudited

£000


Revenue comprised:












Football and stadium operations


16,446


16,670


Multimedia & other commercial activities


5,004


3,442


Merchandising


7,821


8,275




29,271


28,387


 

Number of home games


 

16


 

15


 

3.      EXCEPTIONAL OPERATING EXPENSES

 

There were no exceptional operating expenses this period. The exceptional operating expenses in 2010 of £1.52m reflect labour and ancillary charges of £0.76m as a result of onerous contracts and impairment of intangible fixed assets of £0.76m.

                                                                                                                       

4.      FINANCE COSTS

 

 

 

Payable as follows on:


6 months to

31 December

2011


6 months to

31 December

2010




Unaudited

£000


Unaudited

£000


Bank loans and overdraft


109


108


Non-equity shares


272


264








Total


381


372


 

 

5.      TAXATION                                                                                       

        

         After taking account of unutilised tax losses brought forward, together with the projected performance for the next six months, no provision for taxation is required. 

 

 

 

6.      EARNINGS PER SHARE

        

         Basic earnings per share has been calculated by dividing the earnings for the period by the weighted average number of Ordinary Shares in issue 90,229,640 (2010: 90,034,564).  Diluted earnings per share as at 31 December 2011 has been calculated by dividing the earnings for the period by the weighted average number of Ordinary Shares, Preference Shares and Convertible Preferred Ordinary Shares in issue, assuming conversion at the balance sheet date, and the full exercise of outstanding share purchase options, if dilutive.  As at December 2011 and December 2010 no account was taken of potential conversion of share purchase options, as these potential Ordinary Shares were not considered to be dilutive under the definitions of the applicable accounting standards.

 

7.      INTANGIBLE ASSETS

 



6 months to

31 December 2011


6 months to

31 December 2010


12 months

to 30 June

2011



Unaudited


Unaudited


Audited

Cost


£000

 


£000

 


£000

At 1 July / 1 January


29,618


30,283


30,283

Additions


4,436


8,998


10,294

Disposals


(3,937)


(5,143)


(10,959)

At period end


30,117


34,138


29,618

Amortisation







At 1 July / 1 January


19,254


16,514


16,514

Charge for the period


3,351


4,878


8,155

Provision for impairment


-


761


3,181

Disposals


(3,128)


(2,894)


(8,596)

At period end


19,477


19,259


19,254

 

Net Book Value at period end


 

10,640


 

14,879


 

10,364

 

 

8.    RECEIVABLES

The decrease in the level of receivables from 31 December 2010 of £13.72m to £5.58m is primarily a result of a decrease in amounts due in instalments from player sales conducted in previous transfer windows.

 

 

9.      SHARE CAPITAL 


Authorised

                31 December          30 June

              Allotted, called up and fully paid

                                 31 December                                   30 June


2011


2010

2011


2011

2011

2010

2010

2011

2011

 

No 000


No 000

No 000


No 000

£000

No 000

£000

No 000

£000

Equity












Ordinary Shares of 1p each

 

220,105


220,051

220,096


90,260

902

90,092

901

90,136

901

Deferred Shares of 1p each

496,184


493,610

495,754


496,184

4,962

493,610

4,936

495,754

4,957

Non-equity












Convertible Preferred Ordinary Shares of £1 each

 

15,967


 

15,991

 

15,972


 

13,980

 

13,980

 

14,004

 

14,004

 

13,984

 

13,984













Convertible Cumulative Preference Shares of 60p each

 

19,282


 

19,286

 

19,283


 

16,782

 

10,070

 

16,786

 

10,072

 

16,783

 

10,069

Less reallocated to debt under IAS 32

 

-


 

-

 

-


 

-

 

(5,648)

 

-

 

(5,660)

 

 

 

(5,647)














751,538


748,938

751,105


617,206

24,266

614,492

24,253

616,657

24,264

 

 

 

 

 

10.    NON - CURRENT LIABILITIES

Non-current liabilities reflect the non-current element of bank loans of £10.78m (December 2010: £11.16m, June 2011: £10.97m) drawn down at the end of the period as part of the Company's bank facility of £34.31m (December 2010: £35.06m, June 2011: £34.69) and £4.44m (December 2010: £4.44m, June 2011: £4.44m) as a result of the reallocation of non-equity share capital from equity to debt following the introduction of IAS 32 and £0.18m (December 2010: £0.19m, June 2011: £0.14m) of deferred income.

 

 

11.    ANALYSIS OF NET DEBT

The reconciliation of the movement in cash and cash equivalents per the cash flow statement to net bank debt is as follows:

                                                                                                                                          

 

 


31 December

2011


31 December

2010


30 June

2011



£000


£000


£000

Bank Loans due after more than one year


10,781


11,156


10,969

Bank Loans due within one year


375


375


375

Cash and cash equivalents


(4,108)


(2,442)


(10,818)








Net bank debt at period end


7,048


9,089


526

 

Total debt, including other loans of £0.12m (2010: £0.13m) and that arising from the reclassification of equity to debt following the adoption of IAS32 of £4.44m (2010: £4.44m) amounted to £11.61m (2010: £13.66m). 

 

12. POST BALANCE SHEET EVENTS

      Following 31 December 2011, Celtic acquired the permanent registrations of Mikael Lustig and Rabiu Ibrahim in addition to entering into a loan agreement for Pawel Brozek while a pre-contract was agreed with Jaroslaw Fojut from 1 July 2012.

 

 


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