Information  X 
Enter a valid email address

Celtic PLC (CCP)

  Print          Annual reports

Wednesday 20 September, 2017

Celtic PLC

Final Results

RNS Number : 3396R
Celtic PLC
20 September 2017
 

Celtic PLC

 

Announcement of Results for the year ended 30 June 2017

 

SUMMARY OF THE RESULTS

 

Operational Highlights

 

·     Winner of the Scottish Domestic Treble and our sixth consecutive SPFL Premiership title

·     Qualified for the UEFA Champions League playing 6 home European matches (2016: 6 UEFA Europa League)

·     31 home matches (including the ICC tournament) played at Celtic Park (2016: 28)

·     Became the first stadium in the UK to accommodate 3,000 "safe standing" section

·     Achieved "Invincible" status by remaining unbeaten domestically in all competitions

·     Hugely successful Celebrate 67 events to recognise the 50th Anniversary of the Lisbon Lions winning the European Cup in May 1967

·     Delighted to be able to provide support in assisting Celtic FC Foundation to deliver the hugely successful SSE Hydro event, Lions Lunch and Henrik versus Lubo charity match

 

Financial Highlights

 

·     Group revenue increased by 74.2% to £90.6m

·     Operating expenses increased by 33.3% to £76.3m

·     Gain on sale of player registrations of £2.3m (2016: £12.6m)

·     Profit before taxation of £6.9m (2016: £0.5m)

·     Year-end cash net of bank borrowings of £17.9m (2016: £3.6m)

·     Investment in football personnel of £13.8m (2016: £8.8m)

  

 

For further information contact:

 

Company

Ian Bankier, Celtic plc                        Tel: 0141 551 4235

Peter Lawwell, Celtic plc                   Tel: 0141 551 4235

Iain Jamieson, Celtic plc                    Tel: 0141 551 4235

 

Canaccord Genuity Limited, Nominated Adviser

Bruce Garrow                                       Tel: 020 7523 8350

 

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
 

CHAIRMAN'S STATEMENT

 

These results, which declare sales revenue of £90.6m (2016: £52.0m) and a profit before taxation of £6.9m (2016: £0.5m), reflect the paramount importance to the Company of participation in the group stages of the UEFA Champions League.

 

The foundations for that success are based on consistency, stability and the implementation of a prudent long term strategy that dictates that the Company invests in its football operations, whilst maintaining a self-sustaining financial model.  The Board considers that this strategy remains appropriate for Celtic plc and will continue to seek out and retain top talent on and off the field of play so as to deliver football success and, in turn, shareholder value.  The Board has been able to manage short term challenges, and maintain the course it has set and reported on over the past several years, because there is consistency in the ownership, Board and executive management of the Company.  These ingredients provide the stability that is so crucial for the successful operation of a football club at our level. 

 

On behalf of the Board I warmly congratulate Brendan Rodgers, his staff and the players on a truly remarkable season during which we achieved an Invincible Treble, a sixth consecutive League Championship and consecutive qualifications for the group stages of the UEFA Champions League.  Whilst the fundamentals that were in place at the Club when he joined with his staff were strong, Brendan has been a remarkable catalyst.

 

Just as it is important to recognise the importance to us of participation in the UEFA Champions League, so it is important to recognise that the financial gap between Celtic Football Club and the richer clubs in European football is widening.  The growing financial power of a number of key constituencies within the European game makes us vulnerable to structural change. It is, therefore, vital that we are represented at the highest levels of European football.  Peter Lawwell's appointments to the Board of the European Club Association, the Club Competitions Committee at UEFA and the Professional Football Strategy Council of UEFA gives the Club a voice and ensures that we are very well represented and that our image and profile are held high.  We are grateful for Peter's continued commitment to promoting our interests in this very important arena. 

 

During the year, we welcomed Sharon Brown as a non-executive director, bringing her financial expertise and business acumen, notably in the retail sector, to enhance the skill set of the Board.   Ian Livingston, who was appointed in October 2007 and chaired the Audit Committee, stepped down from the Board with effect from 30 June 2017, in order to focus on his other public company commitments.  On behalf of the Board, I would like to thank Ian for his contribution to the Company and wish Sharon the very best.  Sharon now chairs the Audit Committee.  Taken together with the changes to the Board last year, when Chris McKay replaced Eric Riley as Financial Director, I believe that we have struck a good balance between stability and progression, both of which are crucial to the long term success of the Company.

 

Our football success this year marked another important moment in the long history of our Club; the fiftieth anniversary of our success in Lisbon, our greatest success and such an important part of the development of our unique story.  The celebrations culminated in a fantastic week of events in May, including the Club's showcase "Celebrate '67" event at The SSE Hydro in Glasgow, honouring the Lisbon Lions and their amazing achievements. 

 

Like all Celtic supporters, I was proud that all net proceeds of those events were passed to Celtic FC Foundation to assist in its Lions' Legacy projects and other important work.  This really is what it means to be Celtic.  I thank all of our supporters, shareholders, sponsors, partners and colleagues for their contribution to a successful year for the Club and look forward to working with them to build on that success for the future.

 

 

Ian P Bankier                                                                                                                                                 

20 September 2017

Chairman

CHIEF EXECUTIVE'S REVIEW

 

Following last season, when our performance on the pitch did not meet our expectations, this year the Club could not have asked for any more.  Winning football matches is a difficult thing to do.  To remain undefeated domestically while winning all three competitions, for only the fourth time in the Club's history, and to do so whilst qualifying for and participating in the UEFA Champions League group stages, is a fantastic achievement, for which Brendan, the players and everyone at the Club should be congratulated.  Our objectives for this year remain success in all three domestic competitions and in the UEFA Champions League.

 

Success on the pitch, in particular qualification for the UEFA Champions League group stages, leads to success off the pitch and this can be seen in our results this year.  Given the restrictions in the environment in which we operate domestically, financial contribution from success in European football and prudent management of player registrations is crucial to enable the Company to continue to invest in the long term strategic objective of the Company: to create a world class football club.

 

We must maintain our investment in our highly regarded football operations, including: management, coaching, player recruitment, medical, performance, sports science and our youth academy.  Ultimately, we hope to develop Champions League players in this environment and Brendan's trust in our young players is testament to their talent and the Academy's success and development over many years.  It was very encouraging to see 5 graduates of the Youth Academy play in our victory over Kilmarnock earlier this season.

 

In addition, we continue to invest at Celtic Park and at Lennoxtown, with plans for a new hybrid pitch to complement our style of attacking football, new training pitches being built to improve player development and improvements being made to the stadium and surrounding land to enhance the experience for all supporters visiting Celtic Park.  Celtic Park is iconic in world football and we will continue to develop a venue our supporters can be proud of.

 

While we cannot compete with the financial resources of some other clubs, we can and will ensure that our investment creates the infrastructure to grow the Club for the long term and helps us manage the risk and uncertainty in football. 

 

This year we celebrated the fiftieth anniversary of the Lisbon Lions.  Our triumph in Lisbon is something every Celtic supporter will always be proud of, and in becoming the first British team to win the European Cup, the Lions have laid down an amazing legacy which will resonate forever with generations to come.  I would like to take this opportunity to thank all of my colleagues, our sponsors and supporters who contributed to the Celebrate 67 events and supported the ongoing work of Celtic FC Foundation.

 

I have had the real privilege of meeting every member of the Lisbon Lions over the years, men of such stature who represented Celtic with such grace, humility and dignity. The Lisbon Lions set the benchmark.  Everyone at Celtic strives to build on their achievements and to bring continued success to our Club.

 

 

Peter Lawwell                                                                                                                                                             

20 September 2017

Chief Executive   

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 

 

 

Note

2017

£000

 

2016

£000

CONTINUING OPERATIONS:

 

 

 

 

 

 

 

 

 

Revenue

2

90,639

 

52,009

 

 

 

 

 

Operating expenses (before intangible asset transactions and exceptional items)

2

(76,329)

 

(57,249)

 

 

 

 

 

Profit / (loss) from trading before intangible asset transactions and exceptional items

 

14,310

 

(5,240)

 

 

 

 

 

Exceptional operating expenses

3

(1,526)

 

(1,721)

 

 

 

 

 

Amortisation of intangible assets

 

(7,546)

 

(4,953)

 

 

 

 

 

Profit on disposal of intangible assets

 

2,279

 

12,644

 

 

 

 

 

Operating profit

 

7,517

 

730

 

 

 

 

 

Finance income

 

204

 

350

 

 

 

 

 

Finance expense

 

(824)

 

(621)

 

 

 

 

 

 

 

 

 

 

Profit before tax

 

6,897

 

459

 

 

 

 

 

Income tax expense

 

-

 

-

 

 

 

 

 

Profit and total comprehensive income for the year

 

6,897

 

459

 

 

        

 

 

Basic earnings per Ordinary Share for the year

 

6

7.38p

 

0.49p

 

 

 

 

 

 

 

 

 

 

Diluted earnings per Share for the year

6

5.46p

 

0.49p

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEET

 

 

 

2017

 

2016

 

 

£000

 

£000

Assets

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

56,332

 

55,276

Intangible assets

 

13,927

 

9,798

Trade receivables

 

-

 

3,966

 

 

70,259

 

69,040

 

 

 

 

 

Current assets

 

 

 

 

Inventories

 

2,414

 

1,889

Trade and other receivables

 

12,284

 

14,682

Cash and cash equivalents

 

24,505

 

10,450

 

 

39,203

 

27,021

 

 

 

 

 

Total assets

 

109,462

 

96,061

 

 

 

 

 

Equity

 

 

 

 

Issued share capital

 

27,107

 

24,316

Share premium

 

14,657

 

14,611

Other reserve

 

21,222

 

21,222

Capital reserve

 

-

 

2,781

Accumulated losses

 

(5,563)

 

(12,460)

Total equity

 

57,423

 

50,470

 

 

 

 

 

Non-current liabilities

 

 

 

 

Interest bearing liabilities/bank loans

 

6,450

 

6,650

Debt element of Convertible Cumulative Preference Shares

 

4,232

 

4,242

Trade and other payables

 

5,940

 

-

Provisions

 

1,543

 

1,105

Deferred income

 

115

 

1,343

 

 

18,280

 

13,340

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

10,435

 

11,879

Current borrowings

 

304

 

304

Provisions

 

658

 

196

Deferred income

 

22,362

 

19,872

 

 

33,759

 

32,251

 

 

 

 

 

Total liabilities

 

52,039

 

45,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity and liabilities

 

109,462

 

96,061

 

 

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 2015

24,294

14,573

21,222

2,781

(12,919)

49,951

Share capital issued

1

38

-

-

-

39

Reduction in debt element of convertible cumulative preference shares following conversion

21

-

-

-

-

21

Profit and total comprehensive income for

the year

-

-

-

-

459

459

 

 

 

 

 

 

 

Equity shareholders' funds
as at 30 June 2016

24,316

14,611

21,222

2,781

(12,460)

50,470

 

 

 

 

 

 

 

Share capital issued

1

46

-

-

-

47

Reduction in debt element of convertible cumulative preference shares following conversion

9

-

-

-

-

9

Transfer from Capital Reserve

2,781

-

-

(2,781)

-

-

Profit and total comprehensive income for  the year

-

-

-

-

6,897

6,897

 

 

 

 

 

 

 

Equity shareholders' funds
as at 30 June 2017

27,107

14,657

21,222

-

(5,563)

57,423

CONSOLIDATED CASH FLOW STATEMENT

 

 

 

2017

 

2016

 

 

£000

 

£000

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

Profit for the year

 

6,897

 

459

Depreciation

 

1,664

 

1,689

Amortisation of intangible assets

 

7,546

 

4,953

Impairment of intangible assets

 

287

 

1,294

Reversal of prior period impairment charge

 

(64)

 

(288)

Profit on disposal of intangible assets

 

(2,279)

 

(12,644)

Loss on disposal of property, plant and equipment

 

198

 

106

Net Finance costs

 

620

 

271

 

 

14,869

 

(4,160)

 

 

 

 

 

 

(Increase) / decrease in inventories

 

(525)

 

209

(Increase) / decrease in receivables

 

(687)

 

212

Increase in payables and deferred income

 

2,435

 

4,695

Cash generated from operations

 

16,092

 

956

Net Interest paid

 

(95)

 

(91)

Net cash flow from operating activities

 

15,997

 

865

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Purchase of property, plant and equipment

 

(2,737)

 

(1,455)

Purchase of intangible assets

 

(9,889)

 

(10,933)

Proceeds from sale of intangible assets

 

11,382

 

13,261

Net cash used in investing activities

 

(1,244)

 

873

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Repayment of debt

 

(200)

 

(200)

Dividend on Convertible Cumulative Preference Shares

 

(498)

 

(458)

Net cash used in financing activities

 

(698)

 

(658)

 

 

 

 

 

Net increase in cash equivalents

 

14,055

 

1,080

Cash and cash equivalents at 1 July 2016

 

10,450

 

9,370

Cash and cash equivalents at 30 June 2017

 

24,505

 

10,450

NOTES TO THE FINANCIAL STATEMENTS

 

1.         BASIS OF PREPARATION

 

The financial information in this preliminary announcement has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs) but does not include all of the disclosures that would be required under IFRSs. The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 30 June 2016 and are those which will form the basis of the 2017 financial statements.

 

 

2.         REVENUE AND TOTAL OPERATING EXPENSES BEFORE EXCEPTIONAL ITEMS AND ASSET TRANSACTIONS

 

 

 

 

 

REVENUE

 

2017
£000

 

2016
£000

The Group's revenue comprised:

 

 

 

 

Football and Stadium Operations

 

37,571

 

25,149

Merchandising

 

16,479

 

12,577

Multimedia and Other Commercial Activities

 

36,589

 

14,283

 

 

90,639

 

52,009

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

2017
£000

 

2016
£000

The Group's operating expenses comprised:

 

 

 

 

Football and Stadium Operations

 

64,689

 

47,173

Merchandising

 

9,257

 

7,836

Multimedia and Other Commercial Activities

 

2,383

 

2,134

 

 

76,329

 

57,143

 

3.         EXCEPTIONAL OPERATING EXPENSES

 

The exceptional operating expenses of £1.53m (2016: £1.72m) can be analysed as follows:

 

 

Exceptional operating expenses comprised

2017
£000

 

2016
£000

 

Impairment of intangible assets

287

 

1,294

Reversal of prior period impairment charges

(64)

 

(288)

Onerous employment contracts

1,004

 

-

Compromise payments on contract termination

299

 

715

 

1,526

 

1,721

 

The impairment of intangible assets, and the reversal of impairment charges, relate to adjustments required as a result of management's assessment of the carrying value of certain player registrations relative to their current market value.

 

Onerous employment contact costs result from a situation where the committed costs under that contract are assessed as exceeding the economic benefits expected to be received by the Group over the term of the contract.

 

Settlement agreements on contract termination are costs in relation to exiting certain employment contracts.
 

4.         DIVIDEND ON CONVERTIBLE CUMULATIVE PREFERENCE SHARES

 

A 6% non-equity dividend of £0.51m (2016: £0.52m, before tax credit deduction), was paid on 31 August 2017 to those holders of Convertible Cumulative Preference Shares on the share register at 28 July 2017. A number of shareholders elected to participate in the Company's scrip dividend reinvestment scheme for the financial year to 30 June 2017.  Those shareholders have received new Ordinary Shares in lieu of cash.  No dividends were payable or proposed to be payable on the Company's Ordinary Shares.

 

During the year, the Company reclaimed £0.02m (2016: £0.02m) in respect of statute barred preference dividends in accordance with the Company's Articles of Association.

 

5.         TAX ON ORDINARY ACTIVITIES

 

No provision for corporation tax is required in respect of the year ended 30 June 2017.  Estimated tax losses available for set-off against future trading profits amount to approximately £7.64m (2016: £16.08m) and, in addition, the available capital allowances pool is approximately £9.52m (2016: £10.25m).  These estimates are subject to the agreement of the current and prior years' corporation tax computations with H M Revenue and Customs. 

 

 

6.         EARNINGS PER SHARE

 

 

2017

 

2016

 

£000

 

£000

Reconciliation of earnings to basic earnings:

 

 

 

 

 

 

 

Net earnings attributable to equity holders of the parent

6,897

 

459

 

 

 

 

Basic earnings

6,897

 

459

 

 

 

 

Reconciliation of basic earnings to diluted  earnings:

 

 

 

 

 

 

 

Basic earnings

6,897

 

459

Non-equity share dividend

577

 

521

Reclaim of statute barred non-equity share dividends

(19)

 

(19)

 

 

 

 

Diluted earnings

7,455

 

961

 

 

 

 

 

 

No.'000

 

No.'000

Reconciliation of basic weighted average number of ordinary shares to

diluted weighted average number of ordinary shares:

 

 

 

 

 

 

 

Basic weighted average number of ordinary shares

93,403

 

93,120

 

 

 

 

Dilutive effect of convertible shares

43,041

 

43,179

 

 

 

 

Diluted weighted average number of ordinary shares

136,444

 

136,299

 

Earnings per share of 7.38p (2016: 0.49p) has been calculated by dividing the profit for the period of £6.90m (2016: £0.46m) by the weighted average number of Ordinary Shares of 93.4m (2016: 93.1m) in issue during the year.  Diluted earnings per share of 5.46p (2016: 0.49p) as at 30 June 2017 has been calculated by dividing the profit for the period by the weighted average number of Ordinary Shares, Convertible Cumulative Preference Shares and Convertible Preferred Ordinary Shares in issue, assuming conversion at the balance sheet date, if dilutive.

 

7.         ANNUAL REPORT & ACCOUNTS

 

Copies of the Annual Report & Accounts together with the Notice and Notes of the 2017 AGM will be issued to all shareholders in due course.

 

The financial information set out above does not constitute the Company's statutory accounts for the years ended 30 June 2017 or 30 June 2016. The Independent Auditors' Reports on the statutory accounts for 2017 and 2016 were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006. The statutory accounts for 2016 have been filed with the Registrar of Companies and those for 2017 will be delivered to the Registrar of Companies in due course.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
FR SELFISFWSEFU

a d v e r t i s e m e n t