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Celtic PLC   -  CCP   

Half-year Report

Released 16:05 08-Feb-2018

RNS Number : 3664E
Celtic PLC
08 February 2018
 

 

 

Celtic plc (the "Company")

 

INTERIM REPORT FOR THE SIX MONTHS TO 31 DECEMBER 2017

                 

Operational Highlights

 

·    Currently top of the SPFL Premiership

 

·    Winners of the Scottish League Cup for the second season in a row

 

·    19 home fixtures (2016: 18)

 

·    Successfully qualified for the Group Stages of UEFA Champions League

 

·    Secured European football after Christmas by qualifying for the round of 32 of the Europa League

 

 

 

Financial Highlights

 

·    Revenue increased by 16.8% to £71.5m (2016: £61.2m)

 

·    Profit from trading was £23.7m (2016: £21.4m)

 

·    Profit from transfer of player registrations (shown as profit on disposal of intangible assets) £0.5m (2016: £2.0m)

 

·    Profit before taxation of £19.5m (2016: £18.6m)

 

·    Profit after taxation of £17.4m (2016: £18.6m)

 

·    Period end net cash at bank of £30.9m (2016: £18.6m)

 

 

 

 

 

Celtic plc

CHAIRMAN'S STATEMENT

 

I am pleased to report on our interim results for the period ended 31 December 2017.  These show revenue of £71.5m (2016: £61.2m) and a profit from trading of £23.7m (2016: £21.4m).  Overall this resulted in a profit before taxation of £19.5m (2016: £18.6m) and a period end net cash at bank of £30.9m (2016: £18.6m).  The introductory page to these interim results summarises the main highlights.

 

We are delighted with the sustained period of success on the pitch, as Brendan Rodgers, his backroom team and the players have built on their achievements of last season.  They are to be congratulated on qualification for the group stages of the UEFA Champions League for a second successive season, for retaining the League Cup and for the record breaking 69 game domestic unbeaten run.  At the time of writing, we sit 8 points clear at the top of the Scottish Premiership and, as we continue to progress in the Scottish Cup, we retain the prospect of winning an historic back to back domestic treble.

 

During the period we secured the permanent registrations of Olivier Ntcham and Kundai Benyu, and the temporary registration of Patrick Roberts.   Our profit on disposal of intangible assets of £0.5m (2016: £2.0m) largely reflects the transfer of the registrations of Gary Mackay Steven and Saidy Janko.  Subsequently, during the January 2018 transfer window, we have invested further by acquiring the permanent registrations of experienced German Bundesliga defender Marvin Compper, exciting young Scottish talents Lewis Morgan and Jack Hendry and the temporary registrations of sought after midfielder Charly Musonda and goalkeeper Scott Bain.

 

The Board is committed to a course of investment in the playing squad so as to be as competitive as we can be within the structure of Scottish football and on the European stage.  With our full support and encouragement, Brendan seeks to enhance the squad by the careful acquisition of quality players and the development of existing players and young talent coming up from our Youth Academy. Youth Academy graduates James Forrest, Kieran Tierney, Michael Johnston, Callum McGregor, Calvin Miller and Anthony Ralston have all contributed to the first team this year.  Furthermore, we were delighted to agree an extended contract with Kieran Tierney, who has captained Celtic and his country during the season.

 

The Board is also pursuing initiatives to enhance the Club's assets at Celtic Park, so as to aid our playing competitiveness, as in the case of the recent pitch improvements, and to develop and commercialise the space we occupy, as in the case of our recent planning application for a hotel, retail store and museum. The Board's investment policy, nonetheless, recognises the uncertainty inherent in football, and our long held strategy of operating a self-sustaining financial model. 

 

Looking forward, and entirely in line with our trading seasonality, we do not expect the same level of financial performance in the second half of the year.  In this period we will play fewer home fixtures and revenue from European competition will be lower.  Our key objectives for the remainder of the year are to win the SPFL Premiership, secure the Scottish Cup and build towards the European qualifiers in the summer.  The Club will also continue to look at ways in which to develop Celtic Park and the surrounding area to create a destination and match day experience that all Celtic fans can be proud of.

 

 

 

 

 

 

 

Celtic plc

CHAIRMAN'S STATEMENT

 

Celtic FC Foundation, which sits outwith the Group, continues to develop its reach and to assist more people in our communities, in line with the Club's founding principles.  Most recently, the 2017 Christmas Appeal raised in excess of £230,000, which was split between local families with children, local old age pensioners, children's charities, women's aid charities and homeless, refugee and other vulnerable groups.  Following the success of the Foundation's Lions Legacy campaign, these fantastic achievements are testament to the hard work and generosity of the Celtic family.

 

On behalf of the Board, I thank our fans, shareholders and partners, whose support is vital as we continue to build for the future.

 

 

 

 

Ian P Bankier                                                                                                                                                                    

8 February 2018

Chairman

 

 

 

 

 

 

 

 

For further information contact:

Company

Ian Bankier, Celtic plc                        Tel: 0141 551 4235

Peter Lawwell, 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.

 

 

 

Celtic plc 

INDEPENDENT REVIEW REPORT TO CELTIC PLC

 

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the interim report for the six months ended 31 December 2017 which comprises the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated statement of changes in equity, the consolidated 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 information in the condensed set of financial statements.

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 rules of the London Stock Exchange for companies trading securities on AIM which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the Company's annual accounts having regard to the accounting standards applicable to such annual accounts.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim report based on our review.

Our report has been prepared in accordance with the terms of our engagement to assist the Company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on AIM and for no other purpose.  No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent.  Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability

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 Financial Reporting Council 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 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 interim report for the six months ended 31 December 2017 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on AIM.

 

 

BDO LLP

Chartered Accountants and Registered Auditors

Glasgow

United Kingdom

Date 8 February 2018

 

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

Celtic plc

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE 6 MONTHS TO 31 DECEMBER 2017

 

 

 

 



 

 

 

2017

Unaudited


 

 

 

2016

Unaudited



Note

£000


£000







Revenue


2

71,505


61,229

Operating expenses (before intangible asset transactions and exceptional items)


3

(47,815)


(39,821)

 

Profit from trading before intangible asset transactions and exceptional items



 

23,690


 

21,408

 

Exceptional operating expenses


 

4

-


(646)

 

Amortisation of intangible assets


(4,227)


(3,849)

 

Profit on disposal of intangible assets



482


1,959







 

Operating profit



 

19,945


 

18,872













Finance income


5

47


119

Finance expense


5

(482)


(391)

 

Profit before tax



 

19,510


 

18,600

Income tax expense


6

(2,130)


-







 

Profit and total comprehensive income for the period

 


 

 

 

 

17,380


 

18,600

 

Basic earnings per Ordinary Share


 

7

 

18.57p                                                                                      


 

19.92p

 

Diluted earnings per share


 

7

 

12.94p


 

13.84p







 

 

 

 


Celtic plc

Registered number SC3487

CONSOLIDATED BALANCE SHEET

 

 


 

31 December

2017


 

31 December

2016




Unaudited


Unaudited



Notes

£000


£000


NON-CURRENT ASSETS






Property plant and equipment


56,637


54,998


Intangible assets

8

15,996


13,224


Deferred tax asset


891


-




73,524


68,222


CURRENT ASSETS












Inventories


2,039


1,615


Trade and other receivables

9

15,608


15,972


Cash and cash equivalents


37,410


25,392




55,057


42,979


TOTAL  ASSETS


128,581


111,201








EQUITY






Issued share capital

10

27,123


24,318


Share premium


14,720


14,657


Other reserve


21,222


21,222


Capital reserve


-


2,781


Accumulated profits


11,817


6,140


TOTAL EQUITY


74,882


69,118


LIABILITIES

NON-CURRENT LIABILITIES

Interest bearing loans

 

 

 

 

 

 

6,350


 

 

 

6,550


Debt element of Convertible Cumulative Preference Shares


4,216


4,241


Trade and other payables


10,293


-


Provisions


1,082


1,285


Deferred income


86


143




22,027


12,219


CURRENT LIABILITIES






Trade and other payables


17,035


15,930


Current borrowings

304


304


Provisions


709


106


Deferred income


13,624

13,524




31,672

29,864


TOTAL LIABILITIES


53,699


42,083


TOTAL EQUITY AND LIABILITIES


128,581


111,201


Approved by the Board on 8 February 2018



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 2016 (Audited)

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

 

1

 

-

 

-

 

 

-

 

 

-

 

 

1

 

 

Profit and total comprehensive income for the period

 

-

 

-

 

-

 

-

 

18,600

 

18,600








EQUITY SHAREHOLDERS' FUNDS AS AT 31 DECEMBER 2016 (Unaudited)

24,318

 

14,657

 

21,222

 

2,781

 

6,140

69,118

 








EQUITY SHAREHOLDERS' FUNDS AS AT 1 JULY 2017 (Audited)

27,107

14,657

21,222

-

(5,563)

57,423

 

Share capital issued

 

1

 

63

 

-

 

-

 

-

 

64

Reduction in debt element of convertible cumulative preference shares

15

-

-

-

-

15








Profit and total comprehensive income for the period

-

-

-

-

17,380

17,380








EQUITY SHAREHOLDERS' FUNDS AS AT 31 DECEMBER 2017 (Unaudited)

 

27,123

 

14,720

 

21,222

 

-

 

11,817

 

74,882






































Celtic plc

CONSOLIDATED CASH FLOW STATEMENT

 



6 months to

31 December

2017


6 months to

31 December

2016



            Note

Unaudited


Unaudited 

 



£000


£000

 

Cash flows from operating activities




 

Profit before tax


19,510


18,600

 

Depreciation


881


820

 

Amortisation


4,227


3,849

 

Impairment of intangible assets


-


358

 

Profit on disposal of intangible assets


(482)


(1,959)

 

Net finance costs


435


272

 



24,571


21,940

 






 

Decrease in inventories


375


274

 

(Increase) in receivables


(7,028)


(5,178)

 

(Decrease) in payables and deferred income


(364)


(5,540)

 

Cash generated from operations

17,554


11,496

 

Net interest paid


(25)


(42)

 

Net cash flow from operating activities


17,529


11,454

 

Cash flows from investing activities





 

Purchase of property, plant and equipment


(946)


(540)

 

Purchase of intangible assets


(8,874)


(5,218)

 

Proceeds from sale of intangible assets


5,769


9,833

 

Net cash (used in) / generated from investing activities


(4,051)


4,075

 

Cash flows from financing activities





 

Repayment of debt


(100)


(100)

 

Dividend on Convertible Cumulative Preference Shares


(473)


(487)

 

Net cash used in financing activities


(573)


(587)

 

Net increase in cash equivalents


12,905


14,942

 

Cash and cash equivalents at 1 July


24,505


10,450

 

Cash and cash equivalents at period end

11

37,410


25,392

 

 

 

 

Celtic plc

NOTES TO THE FINANCIAL INFORMATION

 

1.      BASIS OF PREPARATION

 

The financial information in this interim report comprises the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Changes in Equity, Consolidated Cash Flow Statement and accompanying notes.  The financial information in this interim report has been prepared under the recognition and measurement requirements of IFRSs as adopted for use in the European Union but does not include all of the disclosures that would be required under those accounting standards.  The accounting policies adopted in the financial information are consistent with those expected to be adopted in the Company's financial statements for the year ended 30 June 2018 and are unchanged from those used in the Company's annual report for the year ended 30 June 2017.

 

The financial information in this interim report for the six months to 31 December 2017 and to 31 December 2016 has not been audited, but it has been reviewed by the Company's auditor, whose report is set out on page 4.  Any comparative figures for the year ended 30 June 2017 are extracted from the Group's audited financial statements for that period as filed with the Registrar of Companies.  The financial information for the year ended 30 June 2017 does not constitute the Company's financial statements for that period but is derived from them.  The Company's statutory financial statements for the year ended 30 June 2017 have been filed with the Registrar of Companies.  The auditor's report on those statutory financial statements was unqualified.

 

Assessment on adoption of standards not yet effective

 

At the date of authorisation of this interim report the following standards were not effective however will be adopted in accordance with their effective dates. An update as to the Group's assessment of the impact of each standard is provided below.

 

IFRS 9: Financial Instruments - A detailed review of the impact of this standard is in progress and will be completed by the end of the current financial year, the conclusion of which will be disclosed in the annual report.

 

IFRS 15: Revenue from Contracts with Customers - we have performed a review of the Group's revenue recognition policy for each activity type and our initial assessment is that on full year basis any impact on revenue will be immaterial. With regards to interim reporting, the impact of applying this standard has yet to be concluded however the assessment will be completed by the end of the current financial year and disclosure will be made in the annual report.

 

IFRS 16: Leases - Based on our assessment, the net impact to the Group's financial statements is not considered to be material, but we will recognise the asset value of the operating leases within assets and a liability reflecting the associated future obligations. There will also be a reallocation in the Statement of Comprehensive Income from rental costs to depreciation within Operating Expenses and to the unwinding of discount charge within Finance Expense. As this stage the value associated with the above adjustments has yet to be quantified.

 

Going concern

 

The Company has considerable financial resources available to it, together with established contracts with a number of customers and suppliers.  As a consequence, the Directors believe that the Company is well placed to continue managing its business risks successfully and they have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.  Thus, they continue to adopt the going concern basis of accounting in preparing the financial information in this interim report.

 

        

 

 

 

Celtic plc

NOTES TO THE FINANCIAL INFORMATION

 

                                                                                                             

2.      REVENUE



6 months to

31 December

2017


6 months to

31 December

2016


 

 


Unaudited

£000


Unaudited

£000


Football and stadium operations


26,802


22,583


Multimedia & other commercial activities


34,011


29,917


Merchandising


10,692


8,729




71,505


61,229


 

Number of home games


 

19


 

18


        

3.      TOTAL OPERATING EXPENSES



6 months to

31 December

2017


6 months to

31 December

2016

 

 


Unaudited

£000


Unaudited

£000

Football and stadium operations (excluding exceptional items and asset transactions)


40,677


33,682

Merchandising


5,923


4,968

Multimedia & other commercial activities


1,215


1,171



47,815


39,821

 

4.      EXCEPTIONAL OPERATING EXPENSES                                            

 

 

 


6 months to

31 December

2017


6 months to

31 December

2016


 

 


Unaudited

£000


Unaudited

£000


Impairment of intangible assets


-


358


Compromise payments on contract termination


-


288




-


646


 

5.      FINANCE INCOME AND EXPENSE

 

 

 

 


6 months to

31 December

2017


6 months to

31 December

2016


 

Finance income:


Unaudited

£000


Unaudited

£000


Interest receivable on bank deposits


35


19


Notional interest income on deferred consideration


12


100




47


119








 

Celtic plc

NOTES TO THE FINANCIAL INFORMATION

 

5       FINANCE INCOME AND EXPENSE (CONTINUED)

 

 

 

 


6 months to

31 December

2017


6 months to

31 December

2016


 

 


Unaudited

£000


Unaudited

£000


 

Finance expense:






Interest payable on bank and other loans


(61)


(62)


Notional interest expense on deferred consideration


(134)


(40)


Dividend on Convertible Cumulative Preference Shares


(287)


(289)




(482)


(391)


 

6.    TAXATION                                                                                             

        

         Tax has been charged at 19% for the six months ended 31 December 2017 (2016: 19.75%) representing the best estimate of the average annual effective tax rate expected to apply for the full year, applied to the pre-tax income of the six month period. A deferred tax asset of £0.6m has been reversed due to the utilisation of tax losses.  A deferred tax asset of £1.5m has been recognised in respect of short term timing differences and is offset by an existing deferred tax liability of £0.6m relating to accelerated capital allowances.

 

 

7.    EARNINGS PER SHARE

        

         Basic earnings per share has been calculated by dividing the profit for the period of £17.4m (2016: £18.6m) by the weighted average number of Ordinary Shares in issue 93,591,020 (2016: 93,374,010).  Diluted earnings per share as at 31 December 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.

 

 

 



 

Celtic plc

NOTES TO THE FINANCIAL INFORMATION

 

8.      INTANGIBLE ASSETS



6 months to

31 December 2017


6 months to

31 December 2016




Unaudited


Unaudited


Cost


£000

 


£000

 


At 1 July


34,335


28,244


Additions


6,634


9,497


Disposals


(2,591)


(5,167)


At period end


38,378


32,574


 

Amortisation






At 1 July


20,408


18,446


Charge for the period


4,227


3,849


Provision for impairment


-


358


Disposals


(2,253)


(3,303)


At period end


22,382


19,350


 

Net Book Value at period end


 

15,996


 

13,224


 

 

9.      TRADE AND OTHER RECEIVABLES

      The decrease of £0.4m in receivables from 31 December 2016 to £15.6m is primarily due to the receipt of player receivables offset

       by the value of UEFA receivables and increase in prepaid costs.  

 

 
10.    SHARE CAPITAL

 


Authorised


Allotted, called up and fully paid


31 December


31 December


2017


2016


2017

2017

2016

2016

 

Unaudited


Unaudited

Unaudited

 

No 000


No 000


No 000

£000

No 000

£000

Equity









Ordinary Shares of 1p each

223,101


222,869


93,696

937

93,403

934

Deferred Shares of 1p each

647,036


635,145


647,036

6,470

635,145

6,351

Convertible Preferred Ordinary Shares of £1 each

 

14,923


 

14,994


 

12,936

 

12,936

 

13,007

 

13,007

Non-equity









Convertible Cumulative Preference Shares of 60p each

 

18,459


 

  18,543


 

15,959

 

9,576

 

16,043

 

9,626

 

Less reallocated to debt:

Initial debt

Capital reserve

 

 

-

-


 

 

-

-


 

 

-

-

 

 

(2,796)

-

 

 

 -  

-  

 

 

(2,819)

(2,781)











903,519


891,551


769,627

27,123

757,598

24,318



Celtic plc

NOTES TO THE FINANCIAL INFORMATION

 

11.    ANALYSIS OF NET CASH AT BANK

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

 

 

 


31 December

2017


31 December

2016




Unaudited


Unaudited




£000


£000


Bank Loans due after more than one year


(6,350)


(6,550)


Bank Loans due within one year


(200)


(200)








Cash and cash equivalents:






     Cash at bank and on hand


37,410


25,392








Net  cash at bank at period end


30,860


18,642


 

Total net cash, deducting other loans of £0.1m (2016: £0.1m) and that arising from the reclassification of equity to debt of £4.2m (2016: £4.2m) amounted to £26.5m (2016: £14.3m).

        

 

12.   POST BALANCE SHEET EVENTS

Since the balance sheet date, we have secured the permanent registrations of Marvin Compper from RB Leipzig, Lewis Morgan from St Mirren and Jack Hendry from Dundee, and the temporary registrations of Charly Musonda from Chelsea and Scott Bain from Dundee. We have also permanently transferred the registration of Liam Henderson to Bari and temporarily transferred the registrations of first team players Nadir Ciftci to Motherwell, Lewis Morgan to St Mirren, Kundai Benyu to Oldham Athletic, Erik Sviatchenko to FC Midtjylland, Scott Allan to Hibernian and Conor Hazard to Falkirk. 

 

We also temporarily transferred the registrations of development squad players, Regan Hendry to Raith Rovers, Jamie McCart to Alloa Athletic, Mark Hill to St Mirren and Joe Thomson to Queen of the South.

 

 



 

Celtic plc

 

Directors

 

Ian P Bankier (Chairman)

Peter T Lawwell (Chief Executive)

Chris McKay (Finance Director)

Thomas E Allison

Dermot F Desmond

Brian D H Wilson

Sharon Brown

 

 

Company Secretary

 

Michael Nicholson

 

Registered Office

Celtic Park

Glasgow

G40 3RE

 

Registered Number

SC3487


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Half-year Report - RNS