Interim Results

Celtic PLC
15 February 2007



                                   CELTIC plc

             INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2006
                             SUMMARY OF THE RESULTS

Operational Highlights

• Lead the Bank of Scotland Premierleague by 19 points
• Qualification for the last 16 of the UEFA Champions League
• Continued participation in the Tennents Scottish Cup
• 18 home matches played at Celtic Park in the period (2005: 15)
• Successful launch of international and domestic away kits
• Construction of the training academy at Lennoxtown progressing well

Financial Highlights

• Group turnover increased by 41.6% to £46.80m.
• Operating expenses increased by 8.5% to £32.04m.
• Profit from operations of £14.76m (2005: £3.50m).
• Gain on sale of intangible fixed assets £7.12m (2005: £nil)
• Profit before taxation of £17.94m (2005: Loss of £0.96m).
• Period end bank debt of £10.94m (2005: £8.57m).
• Investment in players of £6.32m (2005: £6.55m).

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

Thanks partly to the coincidence of a number of favourable factors, Celtic's
financial performance during the half-year ending December 31 2006 has been
exceptionally good. Participation as Scotland's sole representative in the
European Champions League has had a transforming effect on our interim results
when compared with a year ago; and we have also benefited significantly from
transfer activities during the period. By most measures our football results
have also been the best for many years. It is, however, part of the Chairman's
job to bring perspective to the Company's performance and we cannot reasonably
expect to repeat the outstanding features of the first half in the remaining
months of the year. That said, we are currently enjoying one of the best periods
in the Club's history.

Group turnover rose by 41.6% over the corresponding period a year ago. Celtic
played 3 more home games, 2 of which were European ties and 1 SPL game. As a
result, revenues from ticket sales increased by 42% to £21.6 million; and income
from multimedia was up by 144% to £14.1 million. Merchandise sales were down by
some 10%, largely because there were 2 kit launches in the period, one fewer
than in the corresponding period a year ago. However retail gross margins showed
a clear improvement over the period, reflecting careful management of costs and
pricing of our merchandise products.

Operating costs as a whole rose by 8.5%, unsurprising in the light of the
increased activity for the Company on almost all fronts. The bulk of the
increase occurred in payments to the playing and football management teams as
bonuses for domestic and European competitions earned under a new remuneration
scheme took effect. We believe this new scheme will establish a better
relationship for both players and Club between pay and performance, enabling us
to control costs more effectively and rewarding players for the success on the
field. The ratio of labour costs (total and football) to turnover was 40.7% and
31.6% (respectively), compared with 51.9% and 40.1% a year ago; and 56.6% and
44.5% at the end of June last year. Amortisation costs fell by some 16% over the
period as several members of the previous squad left the Club to pursue their
careers elsewhere.

It is in the measures of profitability that Celtic showed the most striking
improvement compared with last year. Operating profit rose from £74,000 to £11.9
million; and after taking account of gains on player transfers of £7.1 million,
profit after interest and taxation amounted to £17.9 million. The corresponding
figure a year ago was a loss of £1.0 million. This turnaround in our financial
performance demonstrates in the most vivid way the importance of European
football to clubs playing outside the leading five European countries; but it is
also a testament to the professionalism of our executive team.

Gordon Strachan's football squad also continues to excel. At present the first
team leads the Scottish Premier League by 19 points, has progressed to the
quarter final of the Tennents SFA Cup and, for the first time, the Club has
qualified for the final 16 in the UEFA Champions League. On the face of it, and
given the quality of the opposition, our involvement in that competition is
expected by many to terminate at that point. However the squad have already
shown on several occasions this season that they will not accept defeat until
the game ends and I am confident they will extend Celtic's growing reputation in
Europe, whatever the final result in the next round.

The emphasis on careful and patient use of our financial resources will continue
to characterise our efforts to strengthen the first team squad; and we will also
continue to find and develop players of quality from our youth and reserve
squads. Our reserve and under-19 teams lead their respective divisions and we
aim to contribute to our younger players' development by making them available
on loan to gain regular playing experience at a higher level.

We recently secured the services of John Park as Football Development Manager.
Our scouting network now covers 16 countries and, taking account of our youth
development programme, there was a need for a person of proven experience for
that task. John presided over these activities with great success at his
previous club, Hibernian and we have now re-structured our Sports Science and
Fitness function by recruiting two new highly regarded sports scientists. In a
separate initiative we have recruited a new fitness coach from Australian Rules

Football, a sport in a country in the forefront of sports science and fitness. I
now believe strong foundations have been put in place to find, develop and train
future generations of footballers for the Club. The construction of the new
training ground and academy at Lennoxtown is progressing well and is expected to
be available for next season.

I am greatly encouraged by our progress on these fronts. As I mentioned in our
Annual Report last year, the very substantial additional amounts of money going
into football in England from new television contracts have created a wide gulf
between what Scottish clubs and their English counterparts can bring to the
transfer market. In some cases transfer fees and wage deals for players in the
Championship south of the Border are beyond the reach of even the top Scottish
clubs. To a much greater degree than ever before, there are two separate markets
with traffic between them largely moving in one direction in terms of evolving
talent. There is no point complaining about this. The only remedy is to work
hard to compensate by strengthening our capacity to identify, attract and
develop our own players.

Celtic's appeal outside the UK continues to grow. We have an opportunity to
visit Japan and the United States - where we will meet the MLS All Stars in July
-when the current season ends; and we have received other enquiries from other
countries to play there. I cannot recall a period when interest in the Club has
been higher. Of course popularity is, as a famous US Presidential Candidate once
said of flattery, 'Fine so long as you don't inhale'. We will look positively at
further possibilities of spreading the Celtic brand, but not to the extent that
we damage it through excess.

Off the field, things are also going well. We have consolidated our charitable
and community operations under the Celtic Foundation. This will bring greater
cohesion to all of our social and charity activities and increase the financial
contributions and other tangible support we make to Scottish life. This, of
course, is our heritage and we will continue to make every effort to live up to
it.

We continue to push ahead with our anti-sectarian activities and have fully
supported the initiative of the Scottish Executive to remove the blight of
religious bigotry from football. Our supporters have responded magnificently to
our appeals in this regard and I believe we are well on the way to
disassociating the Club completely from offensive behaviour in this aspect of
Scottish life.

In October Eric Hagman retired from the Board of Directors of Celtic plc and I
would like to thank him for three excellent years of service to the Company.
Kenny McDowall also left us to pursue his career elsewhere after 10 very
successful years in charge of our reserve team. We wish him well - relatively
speaking - in his new job. The last few weeks have seen the departure of Alan
Thompson, Stephen Pearson and Shaun Maloney and we wish them luck at their new
clubs; while welcoming Stephen Pressley, Mark Brown, Jean-Joel Perrier Doumbe
and Paul Hartley to the Club.

These are exciting times at Celtic. It may be difficult not to be carried away
by our successes on and off the field these last six months. Both our
shareholders and our supporters certainly deserve the rewards we are currently
enjoying. But what is more important is that there are signs that our efforts
over several years to establish lasting improvements in our infrastructure, both
as a football club and as a company, are now delivering a measure of success.
Our management team, led by Peter Lawwell, is showing great energy and
initiative on all fronts. Gordon Strachan and his support staff are delivering
outstanding consistency and resolve. And our supporters, as always, are our
ultimate strength. I thank them for their dedication and commitment.

Brian Quinn CBE 14 February 2007



                                   Celtic plc
                           INDEPENDENT REVIEW REPORT

                    INDEPENDENT REVIEW REPORT TO CELTIC plc

Introduction

We have been instructed by the company to review the financial information for
the six months ended 31 December 2006, which comprises the Group Profit and Loss
Account, the Group Balance Sheet, the Group Cash Flow Statement and the related
notes. We have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.

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 interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the AIM
Rules of the London Stock Exchange which require that it must be prepared in a
form consistent with that which will be adopted in the next annual accounts
having regard to the accounting standards applicable to such annual accounts.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of Group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with International Standards on Auditing (UK and
Ireland) and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 December 2006.

PKF(UK) LLP Registered Auditors
Glasgow, UK
14 February 2007

Celtic plc
GROUP PROFIT AND LOSS ACCOUNT

                                      6 months   6 months     6months      6months      12 months
                                      to 31      to 31        to           to           to 30
                                      December   December     31           31           June 2006
                                      2006       2006         December     December     Audited
                                      Unaudited  Unaudited    2006         2005
                                                              Unaudited    Unaudited
                                      Operations
                                      excluding
                                      player     Player
                                      trading    Trading      Total        Total        Total
                                      £000       £000         £000         £000         £000
                              Notes

TURNOVER - GROUP AND SHARE OF         46,796       -          46,796       33,351       57,859
JOINT VENTURE
LESS SHARE OF JOINT VENTURE             -          -             -           (312)        (448)
GROUP TURNOVER                  2     46,796       -          46,796       33,039       57,411
OPERATING EXPENSES                   (32,039)      -         (32,039)     (29,535)     (53,674)
PROFIT FROM OPERATIONS                14,757       -          14,757        3,504        3,737
AMORTISATION OF                         -       (2,891)       (2,891)      (3,430)      (5,095)
INTANGIBLE FIXED ASSETS
EXCEPTIONAL OPERATING                   -          -             -              -         (579)
EXPENSES
OPERATING PROFIT / (LOSS)             14,757    (2,891)       11,866           74       (1,937)
SHARE OF OPERATING LOSS IN              -          -                            -            -
JOINT VENTURE
TOTAL OPERATING PROFIT /              14,757    (2,891)       11,866           74       (1,937)
(LOSS)
PROFIT / (LOSS) ON DISPOSAL             -        7,120         7,120            -         (265)
OF
INTANGIBLE FIXED ASSESTS
LOSS ON DISPOSAL OF TANGIBLE          (258)        -           (258)            -         (250)
FIXED ASSETS
PROFIT / (LOSS) BEFORE
INTEREST AND TAXATION                 14,499     4,229        18,728           74       (2,452)

NET INTEREST PAYABLE            3
BANK LOANS AND OVERDRAFT                                       (416)         (661)        (999)
NON EQUITY DIVIDENDS                                           (372)         (374)        (771)
PROFIT / (LOSS) ON ORDINARY
ACTIVITIES BEFORE TAXATION                                    17,940        (961)       (4,222)
TAX CHARGE ON ORDINARY          4
ACTIVITIES                                                         -           -             -
PROFIT / (LOSS) FOR THE                                       17,940        (961)       (4,222)
PERIOD

RETAINED PROFIT / (LOSS) FOR                                  17,940        (961)       (4,222)
THE PERIOD
EARNINGS / (LOSS) PER           5                             22.11p       (2.85p)      (7.19p)
ORDINARY SHARE
DILUTED EARNINGS / (LOSS) PER                                 10.95p       (2.85p)      (7.19p)
SHARE                           5
All amounts relate to continuing operations.

There were no gains or losses recognised in any of the above results other than
the profit for the period.


GROUP BALANCE SHEET

                                               31 December       31 December       30 June
                                               2006              2005              2006
                                               Unaudited         Unaudited         Audited
                                        Notes  £000              £000              £000
FIXED ASSETS
Tangible assets                                51,799            49,082            49,924
Intangible assets                         6    10,651             8,124             7,593
                                               62,450            57,206            57,517

Stocks                                          2,184             2,187             1,901
Debtors                                   7    11,150             4,570             5,029
Cash at bank and in hand                        1,056             3,429             2,914
                                               14,390            10,186             9,844

CREDITORS
Amounts falling due within one year           (12,528)          (13,431)          (15,481)
Income deferred less than one year             (8,502)          (11,301)          (12,589)

NET CURRENT LIABILITIES                        (6,640)          (14,546)          (18,226)

TOTAL ASSETS LESS CURRENT LIABILITIES          55,810            42,660            39,291

CREDITORS
Amounts falling due after more than       8   (16,182)          (17,303)          (17,194)
one year

NET ASSETS                                     39,628            25,357            22,097

CAPITAL AND RESERVES
Called up share capital                   9    23,451            23,449            23,450
Other reserve                                  21,222            21,222            21,222
Share premium                                  14,129            14,089            14,089
Capital redemption reserve                      2,540             1,857             1,739
Profit and loss account                  10   (21,714)          (35,260)          (38,403)
SHAREHOLDERS' FUNDS                            39,628            25,357            22,097
Approved by the Board on 14 February 2007


GROUP CASH FLOW STATEMENT

                                                       6 months to          6 months to    12 months to
                                                       31 December          31 December    30 June
                                                       2006                 2005           2006
                                                       Unaudited            Unaudited      Audited
                                                       £000                 £000           £000
RECONCILIATION OF OPERATING PROFIT / (LOSS) TO NET
CASH INFLOW FROM OPERATING ACTIVITIES
Operating profit / (loss)                              11,866                  74         (1,937)
Depreciation                                              972                 852          1,798
Amortisation                                            2,891               3,430          5,095
Provision for impairment of intangible fixed                -                   -            400
assets
(Increase)/ decrease in stocks                           (283)               (200)            86
Increase in debtors                                    (2,545)                (12)          (308)
Decrease in creditors and deferred income              (4,605)               (608)          (159)
Net cash inflow from operating activities               8,296               3,536          4,975

CASH FLOW STATEMENT
Net cash inflow from operating                          8,296               3,536          4,975
activities
Returns on investments and servicing of                  (937)             (1,206)        (1,520)
finance
Capital expenditure and financial                      (8,328)             (5,215)        (6,869)
investment
Cash outflow before use of liquid resources              (969)             (2,885)        (3,414)
and financing
Financing                                               (889)              (8,407)        (8,393)
Net proceeds of issued equity share                       -                14,550         14,550
capital
(Decrease) / increase in cash                          (1,858)              3,258          2,743

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET
DEBT
(Decrease) / increase in cash in the period            (1,858)              3,258          2,743
Cash outflow from movement in debt                        889               8,407          8,393
Non Cash movement in debt                                 (82)               (113)          (210)
Movement in net debt in the period                     (1,051)             11,552         10,926
Net debt at 1 July                                    (13,965)            (24,891)       (24,891)
Net debt at period end                        11      (15,016)            (13,339)       (13,965)


NOTES TO THE FINANCIAL STATEMENTS

1.The interim results for the 6 months to 31 December 2006, which
comprise the Group Profit and Loss Account, Group Balance Sheet, Group Cash Flow
Statement and the related notes, have been prepared on the same basis and using
the same accounting policies as those which will be used in the preparation of
the annual accounts to 30 June 2007. These are consistent with those used in the
preparation of the last annual accounts to 30 June 2006. The interim results do
not constitute the statutory accounts within the meaning of s240 of the
Companies Act 1985. The financial information in this report for the six months
to 31 December 2006 has not been audited. The results for the year ended 30 June
2006 are extracted from the accounts filed with the Registrar of Companies,
which contained an unqualified audit report.

2. TURNOVER

                                               6 months to        6 months to       12 months
                                               31 December        31 December       to 30 June
                                               2006               2005              2006
                                               Unaudited          Unaudited         Audited
                                               £000               £000              £000
Turnover comprised:

Professional football                           21,560            15,213            26,659
Multimedia & communications                     14,138             5,801            11,889
Merchandising                                    8,692             9,629            14,337
Stadium enterprises                              1,414             1,528             2,779
Youth development                                  992               868             1,747
                                                46,796            33,039            57,411

Number of home games                              18                15                24

3. NET INTEREST PAYABLE

                                                6 months to       6 months to       12 months
                                                31 December       31 December       to 30 June
Payable as follows on:                          2006              2005              2006
                                                Unaudited         Unaudited         Audited
                                                £000              £000              £000

Bank Loans and Overdraft                        416                 661               999
Preference Shares                               272                 261               544
Convertible Preferred Ordinary Shares           100                 113               227

Total                                           788               1,035             1,770

4. 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.

5. Earnings / (loss) per share has been calculated by dividing the earnings /
(loss) for the period by the weighted average number of Ordinary Shares in issue
81,126,084 (2005: 33,724,872). Diluted earnings per share as at 31 December 2006
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, in accordance
with FRS 22. As at December 2005 and June 2006 no account was taken of potential
conversion or share purchase options, as these potential ordinary shares were
not considered to be dilutive under the definitions of the applicable accounting
standards.

6. INTANGIBLE ASSETS

                                               6 months to       6 months to   12 months
                                               31 December       31 December   to 30 June
                                               2006              2005          2006
                                               Unaudited         Unaudited     Audited
Cost                                           £000              £000          £000

At 1 July                                      23,530            38,445        38,445
Additions                                       6,318             6,552         8,840
Disposals                                      (2,195)          (10,048)      (23,755)
At period end                                  27,653            34,949        23,530
Amortisation
At 1 July                                      15,937            33,192        33,192
Charge for the period                           2,891             3,430         5,095
Provision for impairment                            -                 -           400
Disposals                                      (1,826)           (9,797)      (22,750)
At period end                                  17,002            26,825        15,937

Net Book Value at period end                   10,651             8,124         7,593

7. DEBTORS

The increase in the level of debtors from 31 December 2005 of £6.58m is
primarily a result of an increase in amounts receivable in respect of TV and
other trading revenues as a result of Celtic being involved in Champions League
European football this season together with increased amounts receivable in
respect of player transfers.

8. CREDITORS - AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

                                             31 December      31 December      30 June
                                             2006             2005             2006
                                             £'000            £'000            £'000

Co-operative Bank Loan                       12,000           12,000           12,000
Non - equity share capital reclassified
as debt under FRS 25 due after more than      3,026            3,699            3,814
one year
Deferred Income                               1,156            1,604            1,380
                                             16,182           17,303           17,194

Creditors due after more than one year reflect long-term bank loans of £12.0m
(2005: £12.0m) drawn down at the end of the period as part of the Company's bank
facility of £36.0m and £3.03m (2005: £3.70m) as a result of the reallocation of
non-equity share capital from equity to debt following the introduction of the
presentational aspects of FRS 25 and £1.16m (2005: £1.60m) of deferred income.

9.  SHARE CAPITAL

                            Authorised             Allotted, called up and fully paid
                            31 December                       31 December

                           2006        2005         2006     2006        2005     2005
Group and Company         No 000      No 000       No 000    £000       No 000    £000

Equity
Ordinary Shares of 1p     211,701    211,699       81,181      812      81,015     810
each

Deferred Shares of 1p     100,362    100,244      100,362    1,004     100,244   1,002
each
Non-equity

Convertible Preferred
Ordinary Shares of £1      20,000     20,000       18,012    18,012     18,012  18,012
each

Convertible
Cumulative Preference      19,299     19,301       16,799    10,080     16,801  10,082
Shares of 60p each
Less reallocated to
debt under FRS 25               -          -            -    (6,457)         -  (6,457)

                          351,362    351,244      216,354    23,451    216,072  23,449

10. RECONCILIATION OF MOVEMENT IN PROFIT AND LOSS ACCOUNT

Profit and Loss Account                    31 December      31 December      30 June
                                           2006             2005             2006
                                           £000             £000             £000

As at the beginning of the period         (38,403)         (33,510)         (33,510)
Profit / (Loss) for the period             17,940             (961)          (4,222)
Participating dividend payable on the        (450)               -                -
Convertible Preferred Ordinary Shares
Transfer to Capital Redemption Reserve       (801)            (789)            (671)

As at the period end                      (21,714)         (35,260)         (38,403)

Under the terms of the Convertible Preferred Ordinary Share Offer a 2%
participating dividend, additional to the base 4%, is payable on the CPO Shares
as a result of Celtic's progression to the last sixteen in the UEFA Champions
League.

11. ANALYSIS OF NET DEBT

The impact on the debt position of the Company following the implementation of
the presentational aspects of FRS 25 is as follows:

                                               31 December       31 December    30 June
                                               2006              2005           2006
                                               £000              £000           £000

Bank loans and overdraft net of cash at        11,102             8,739          9,250
bank and in hand

Debt element of non -equity share               3,914             4,600          4,715
capital

Revised net debt at period end                 15,016            13,339         13,965

12. TRANSFER FEES PAYABLE / RECEIVABLE

Under the terms of certain contracts in respect of the transfer of player
registrations, additional amounts will be payable/receivable by the Company if
specific future conditions are met. As at 31 December 2006 amounts in respect of
such contracts could result in an amount payable of £2.81m of which £1.09m could
arise within one year, and amounts receivable of £2.40m of which £1.65m could
arise within one year.

13. POST BALANCE SHEET EVENTS

On 11 January 2006 the registration of Stephen Pearson was transferred to Derby
County, on 12 January Alan Thompson's registration was transferred to Leeds
United until 30 June 2007 and on 18 January David Marshall's registration was
transferred to Norwich City until 30 June 2007. Celtic acquired the registration
of Scottish internationalist Steven Pressley on 1 January, the registration of
goalkeeper Mark Brown from Inverness Caledonian Thistle on 18 January and that
of Jean-Joel Perrier-Doumbe from Rennes on 25 January until 31 May 2007. On 31
January the registration of Paul Hartley was acquired from Heart of Midlothian
and that of Shaun Maloney transferred to Aston Villa. On 6 February Aiden
McGeady's contract was extended to 31 May 2011. These transactions do not have
any impact on the reported trading figures for the period ended 31 December
2006.




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