REG - Celtic PLC - Results for the year ended 30 June 2024
16/09/2024 17:30
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RNS Number : 3887E Celtic PLC 16 September 2024
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
Announcement of Results for the year ended 30 June 2024
SUMMARY OF THE RESULTS
Key Operational Items
· Winners of the SPFL Premiership and Scottish Cup in season 2023/24.
· Winners of the SWPL in season 2023/24.
· Qualification for the group stages of the UEFA Champions League for
season 2024/25.
· Participation in the group stages of the UEFA Champions League in
season 2023/24 achieving 4 points.
· 24 home matches played at Celtic Park (2023: 26 games).
Key Financial Items
· Group revenue increased by 3.9% to £124.6m (2023: £119.9m).
· Operating expenses including labour increased by 10.4% to £105.4m
(2023: £95.4m).
· Gain on sale of player registrations of £6.6m (2023: £14.4m).
· Acquisition of player registrations of £16.6m (2023: £13.0m).
· Profit before taxation of £17.8m (2023: £40.7m).
· Year-end cash of £77.2m (2023: £72.3m).
For further information contact:
Celtic plc
Peter Lawwell, Celtic plc Tel: 0141 551 4235
Iain Jamieson, Celtic plc
Canaccord Genuity Limited, Nominated Adviser
Simon Bridges Tel: 0207 523 8000
Andrew Potts
CHAIRMAN'S STATEMENT
I should start by congratulating Brendan, in his first season back at Celtic
Park and the men's team for securing the Scottish Premiership and Scottish
Cup. I also extend my congratulations to Elena and our women's team for
securing the Club's first ever SWPL Championship. Elena joined Celtic in
February 2024, and led a competitive and exciting title run, which went to the
final few minutes of the season. Success is something we can never take for
granted. It is important to celebrate and appreciate these wins, but also to
recognise that we should always strive continuously to improve.
The results for the year ended 30 June 2024 show an increase in revenue to
£124.6m (2023: £119.9m) with a corresponding profit before tax of £17.8m
(2023: £40.7m). The £4.7m increase in revenue reflects several factors
including higher participation fees in the UEFA Champions League in season
2023/24, when compared to the previous season, alongside stronger retail
performance in the year. The £22.9m decrease in profit before tax, although
significant, was in line with expectations due to a number of known and
anticipated factors. In relation to football activities, our gain on sale
achieved in the year was £7.8m lower than in the prior year. We also invested
higher sums into the men's team compared to the prior year in the form of
salaries. In addition, we have experienced a rise in overhead costs driven by
the high inflationary environment in which the business has operated over the
last year. There was also the absence of £13.5m of non-recurring other income
which was specific to the prior year.
Our year end cash was £77.2m (2023: £72.3m). Despite Champions League
qualification, the increase in cash was more modest than it may have been
owing to the investment into the team in terms of transfer expenditure and
wage costs in the year under review. This was coupled with the commencement of
significant capital expenditure projects, including the Barrowfield
re-development and a number of stadium maintenance projects.
Further to the investment in player registrations of £13.0m in the previous
financial year ended 30 June 2023, the Club made significant investment by
committing an additional £16.6m in the year under review. This took our total
spend to £68.0m over the three financial years to 30 June 2024. Since the
year end, and up to the closure of the transfer window on 30 August 2024, we
have invested a further £31.2m into player registrations (including
transaction costs). Over the summer transfer window, we twice broke the Club's
previous record transfer. As a result of this period of sustained investment,
our current squad carries the highest value and resulting amortisation charge
in the Club's history, by a considerable margin.
In the summer 2024 transfer window, we have acquired the permanent
registrations of Kasper Schmeichel, Viljami Sinisalo, Paulo Bernardo, Adam
Idah, Arne Engels, Auston Trusty and Luke McCowan and the temporary
registration of Alex Valle. We permanently transferred out the registrations
of Hyeon-gyu Oh, Sead Haksabanovic, Matt O'Riley, Michael Johnston, Yuki
Kobayashi, Ben Siegrist and Tomoki Iwata. We also temporarily transferred out
the registrations of Gustaf Lagerbielke and Hyeokkyu Kwon.
Winning the Scottish Premiership in 2023/24 resulted in automatic
qualification into the new UEFA Champions League format for season 2024/25.
This new structure brings more variety, the opportunity for more teams to
participate at the highest level and a fresh dynamic for fans to enjoy. Last
year's Scottish Premiership and Scottish Cup trophies brought our total men's
team honours to 118, including 54 league titles, 42 Scottish Cups, 21 League
Cups and a European Cup. When compared to the 80 trophies won by the start of
season 1999/2000 this represents a truly remarkable achievement over the last
25 years. We are also firmly established as a European club from a
participation perspective. Over the same 25-year period we have participated
in either knock-out round or group stage European competition in 23 seasons,
12 of which were in the Champions League. As well as delivering domestic
success, we are determined to progress as far as possible in European
competition and improve upon our recent record. We cannot and must not be
complacent and we must strive for progression as a club as the football
industry evolves at a remarkable pace.
Notwithstanding the domestic success we have enjoyed and the establishment of
Celtic as a regular European football participant, it is important that we do
not deviate from our strategy, which has been successful over many years,
based on maintaining a self-sustaining financial model. This involves
targeting Champions League qualification each year along with introducing
young players into our team, either from our academy or through recruitment,
with a view to developing them and helping them to progress their careers.
This is not without its challenges as domestic media rights have been unable
to keep pace with the media rights environment of our competitor markets and
football industry inflation in general over recent years. This means that
securing the best players is more challenging and we must work harder than
ever to bring success. Our strategy has been crucial to the domestic success
of recent years, and it is one your Board intends to maintain. In line with
all other clubs who compete in European competition, we must also be cognisant
of the UEFA Financial Sustainability rules and look to balance the short term
and long-term objectives of our Club. This is a difficult balance, but a vital
one.
As a Club we are well represented domestically with the governing bodies.
Through my capacities as Vice Chairman at the European Club Association (ECA),
a member of the ECA Executive Committee and a Board member on the newly formed
joint venture between the ECA and UEFA, we are able to have close proximity
to, and influence over, the future of European football. This is important to
the interests of Scottish football as a whole.
I wish to express my condolences to the family of John Keane who sadly passed
away in June of this year. John served as a Non-Executive Director of The
Celtic Football and Athletic Company Ltd ("CFAC") for over 20 years, and in
2013 was confirmed as the Honorary Chairman. John was a Celtic supporter all
his life and played a pivotal role in saving our Club from insolvency. He was
there when Celtic needed him most and for that we will always be grateful. I
would also like to take this opportunity to pass on my gratitude to Michael
McDonald. Michael retired from the CFAC Board on 30 June 2024. He was a
Director for 30 years and a true lifelong Celtic fan. His involvement with
Celtic from the 1990s demonstrated that he always had the interests of Celtic
at heart, through thick and thin, and for that I wish to thank him.
Thanks also go to all of our Celtic colleagues for their contribution to
delivering another successful year and to all the Club's supporters who give
the Club their crucial and relentless backing, year after year.
Peter T Lawwell, Chairman
16 September 2024
CHIEF EXECUTIVE'S REVIEW
The year ended 30 June 2024 was successful on and off the field of play. On
the pitch, the men's first team secured the Scottish Premiership and Scottish
Cup Double and our women's team won our Club's first ever SWPL title. I
congratulate Brendan and Elena, team captains Callum and Kelly, and all of the
players, team staff and colleagues at Celtic, whose hard work and dedication
made our success possible. I also thank the Celtic support, who carried our
teams through challenging times during the season and shared in the success at
its conclusion. Off the pitch, the financial results reflected that success as
well as the continued commitment of our supporters, partners and sponsors, for
which we are very grateful. This allows us to continue to invest in
improvement and progress, both for the short and long term. Our primary
objectives continue to be the domination of football in Scotland and competing
in the group stages of the UEFA Champions League.
Our men's team's domestic campaign got off to a challenging start, with an
early exit from the League Cup in the second round away to Kilmarnock as well
as some disappointing league results. We had full confidence that Brendan's
leadership, style of play and winning mentality would bring the best out of
the team over the course of the season. This proved to be the case, and having
won the league at Kilmarnock on 15 May 2024, the team went on to win the
Scottish Cup on 25 May 2024 against Rangers. The scenes at Celtic Park and
Hampden will live long in the memory. Special mention must be made of James
Forrest, whose Scottish Cup medal was his 24th major honour for the Club, one
more than Billy McNeill and only one fewer than Bobby Lennox. James's hard
work, dedication and humility in over 500 senior appearances for Celtic serve
as an inspiration to all of us. We entered the Champions League group stage
for the second consecutive season, playing against Feyenoord, Atletico Madrid
and Lazio. We achieved four points, an improvement over the two points in the
previous season, but ultimately we were disappointed to finish fourth in the
group. We are committed to improving in the Champions League, and look forward
to the opportunities presented by the new format.
Following on from securing the Scottish Cup in season 2022/23, Fran Alonso
left as head coach of our women's team to pursue another opportunity in
women's football in the USA. We wish Fran well and thank him for his
contribution. We were delighted to appoint Elena Sadiku as head coach in
January 2024. Arriving in a new country and new club mid-season is not without
challenges but Elena immersed herself in Celtic and her inspirational approach
led our women's team to their first ever SWPL title in dramatic circumstances
on the final day of the season. The importance of this milestone achievement
cannot be over-estimated, and it will form the basis for future development
and success. Following a strategic review, we have restructured Women's
Football and our Girls' Academy divisions and have increased our investment to
the highest levels ever seen at the Club. By virtue of winning the league, our
team entered the Women's Champions League qualifiers, defeating Kup Kuopio of
Finland and FC Gintra of Lithuania in the first round group, setting up a
play-off against Vorskla of Ukraine for qualification to the group stages for
the first time. Just as it is for our men's team, further progress in the
Champions League is the goal.
Whilst it is important to reflect on our success, we must look forward. There
is no room for complacency. We cannot stand still and we are determined to
improve. In support of our strategic objectives of dominating domestic
football and competing in the Champions League, we have continued to invest
across the Club.
During the summer 2024 transfer window, we invested significant sums to
improve the squad for the season ahead. Player trading is a key aspect of our
strategy both for performance and financial sustainability. As some players
move on it is crucially important that we identify, attract, develop and
retain top talents at the Club. The continued development of our football
technical functions will therefore be a focus for the year ahead, both at
first team and academy levels, along with continued investment in our
infrastructure. During the year, we continued to upgrade and improve our first
team and B team training facilities at Lennoxtown, with new changing, medical
and sports science facilities following the development of the performance gym
and first team lounge.
Just as it is important to continue to recruit players, so it is crucial to
develop them through our academy. With that objective in mind, in December
2023, we commenced the creation of a new facility at our historic training
location at Barrowfield. This represents the most significant capital project
the Club has undertaken since the re-development of Celtic Park, which was
completed in 1998. The facilities at Barrowfield, including a full size indoor
pitch, changing facilities, gym and technical departments, will be completed
over the coming months and will deliver an outstanding new environment for our
women's team and boys and girls academy, with the strategic objective of
creating Champions League players for our first teams.
As the football environment becomes increasingly challenging for clubs such as
ours, we must continue to invest strategically to improve all aspects of our
operations. During the close season, we commenced a number of significant
stadium improvement projects, including upgrades to the first team changing
facilities, the tunnel and structural maintenance. Whilst these are not always
immediately visible, they are vital to maintaining and developing one of our
key assets. In addition to infrastructure, in the year ahead we will continue
to invest to take our Club operations forward. We were delighted at the
response to the Celtic FC Fans' Survey, the biggest ever survey of Celtic
supporters worldwide, and work is ongoing to process the valuable opinions
shared. This will help inform decision-making at the Club, including in
relation to our International Development and Digital Strategies.
Celtic F.C. Foundation continues to be at the heart of everything that we do.
For the first time ever we opened Celtic Park on Christmas Day as an extension
of the Paradise Pitstop project, which has been supporting our local community
on four days a week throughout the year. I thank our colleagues in the
Foundation, volunteers and trustees, whose work continues to make such a
positive impact on the lives of those with whom the Foundation works. We all
share the ambition to continue to grow Celtic F.C. Foundation, and we are
grateful for the continued support of Celtic fans around the world for our
Foundation.
Sadly, in the last six months we have lost two of our colleagues. James
Peacock worked for Celtic for over 30 years and was a well-known and popular
figure around our catering and restaurant business. Vanessa Clinton worked in
our finance function for over nine years and was a hugely popular figure in
the office. I extend my condolences to their families and their colleagues for
the loss of these two valued colleagues and friends. Our people are the
foundation for success at Celtic, and at difficult times we come together to
support each other.
In closing, I take this opportunity to thank our supporters for their
phenomenal commitment to our Club. Supporters are the life blood of Celtic.
The sacrifices and commitment that our supporters contribute are truly
exceptional. Without your support, none of what the Club achieves would be
possible.
Michael Nicholson, Chief Executive
16 September 2024
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2024
2024 2023
Notes £000 £000
Revenue 2 124,580 119,851
Operating expenses (before intangible asset transactions and exceptional (105,394) (95,432)
items)
Profit from trading before intangible asset transactions and exceptional items 19,186 24,419
Exceptional operating income/(expenses) 3 203 (131)
Amortisation of intangible assets (11,483) (12,088)
Profit on disposal of intangible assets 6,637 14,441
Other income - 13,500
Operating profit 14,543 40,141
Finance income 4,726 2,041
Finance expense (1,444) (1,485)
Profit before tax 17,825 40,697
Tax expense 5 (4,441) (7,365)
Profit and total comprehensive profit for the year
13,384 33,332
Basic profit per Ordinary Share for the year
6 14.14p 35.26p
Diluted profit per Share for the year
6 10.21p 24.79p
CONSOLIDATED BALANCE SHEET
As at 30 June 2024
2024 2023
£000 £000
Assets
Non-current assets
Property, plant and equipment 62,143 55,725
Intangible assets 27,914 28,039
Trade receivables 5,310 15,113
95,367 98,877
Current assets
Inventories 2,871 3,426
Trade and other receivables 42,624 45,700
Cash and cash equivalents 77,228 72,285
122,723 121,411
Total assets 218,090 220,288
Equity
Issued share capital 27,197 27,168
Share premium 15,028 14,990
Other reserve 21,222 21,222
Accumulated profits 58,194 44,810
Total equity 121,641 108,190
Non-current liabilities
Debt element of Convertible Cumulative Preference Shares 4,145 4,174
Trade and other payables 3,663 12,320
Lease liabilities 501 432
Provisions 80 96
Deferred tax liabilities 3,914 3,215
12,303 20,237
Current liabilities
Trade and other payables 42,432 50,764
Lease liabilities 518 330
Borrowings 96 96
Provisions 6,245 6,898
Deferred income 34,855 33,773
84,146 91,861
Total liabilities 96,449 112,098
Total equity and liabilities 218,090 220,288
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2024
Group Share Share Other Accumulated Total
capital premium reserve profit
£000 £000 £000 £000 £000
Equity shareholders' funds 27,166 14,951 21,222 11,478 74,817
as at 1 July 2022
Share capital issued 2 39 - - 41
Profit and total comprehensive profit - - - 33,332 33,332
for the year
Equity shareholders' funds 27,168 14,990 21,222 44,810 108,190
as at 30 June 2023
Share capital issued 29 38 - - 67
Profit and total comprehensive profit - - - 13,384 13,384
for the year
Equity shareholders' funds 27,197 15,028 21,222 58,194 121,641
as at 30 June 2024
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 June 2024
2024 2023
£000 £000
Cash flows from operating activities
Profit for the year 13,384 33,332
Taxation charge 4,441 7,365
Depreciation 2,560 2,883
Amortisation of intangible 11,483 12,088
assets
Profit on disposal of intangible (6,637) (14,441)
assets
Loss on disposal of tangible 7 -
assets
Finance income (4,726) (2,041)
Finance costs 1,444 1,485
21,956 40,671
Decrease / (increase) in inventories 555 (439)
Decrease / (increase) in receivables 4,363 (2,649)
(Decrease) / increase in payables and deferred income (5,032) 9,092
Cash from operations 21,842 46,675
Tax paid 5 (7,013) (4,297)
Interest received 3,174 1,175
Interest paid - (48)
Net cash flow from operating activities 18,003 43,505
Cash flows from investing activities
Purchase of property, plant and equipment (7,176) (1,775)
Purchase of intangible assets (31,561) (24,349)
Proceeds from sale of intangible assets 26,854 25,781
Net cash used in investing activities (11,883) (343)
Cash flows used in financing activities
Repayment of debt - (1,604)
Payments on leasing activities (683) (669)
Dividend on Convertible Cumulative Preference Shares (494) (473)
Net cash used in financing activities (1,177) (2,746)
Net increase in cash equivalents 4,943 40,416
Cash and cash equivalents at 1 July 2023 72,285 31,869
Cash and cash equivalents at 30 June 2024 77,228 72,285
NOTES TO THE FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The principal accounting policies applied in the preparation of this
announcement are detailed within the Group financial statements. These
policies have been consistently applied to financial years 2024 and 2023,
presented, for both the Group and the Company.
Going Concern
The Group has adequate financial resources available to it, including
currently undrawn bank facilities, together with established contracts with a
number of customers and suppliers.
Additionally, the Group continues to perform a detailed budgeting process each
year which is reviewed and approved by the Board. The Group also performs
regular re-forecasts and these projections, which include profit/loss and cash
flow forecasts, are distributed to the Board. As a consequence, the Directors
believe that the Group is well placed to manage its business risks
successfully over the medium term.
In consideration of the above, the Directors have a reasonable expectation
that the Group and 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 annual Financial Statements and
have not identified a material uncertainty in this regard.
2. REVENUE
2024 2023
£000
£000
The Group's revenue comprised:
Football and Stadium 49,971 51,483
Operations
Merchandising 30,089 29,072
Multimedia and Other Commercial Activities 44,520 39,296
124,580 119,851
3. EXCEPTIONAL OPERATING INCOME/(EXPENSES)
The exceptional operating credit of £0.2m (2023: expenses of £0.1m) can be
analysed as follows:
2024 2023
£000
£000
Compensation for player salaries 269 -
Settlement agreements on unforeseen contract termination (66) (131)
203 (131)
Settlement agreements on unforeseen contract termination are costs in relation
to exiting certain employment contracts.
The compensation for player salaries is recovery of labour costs as a result
of players being injured while on international duty.
These events are deemed to be unusual in relation to what management consider
to be normal operating conditions as the occurrence of these events is
sufficiently irregular enough to warrant it as exceptional.
4. DIVIDEND ON CONVERTIBLE CUMULATIVE PREFERENCE SHARES
A 6% non-equity dividend of £0.53m (2023: £0.53m) was paid on 30 August 2024
to those holders of Convertible Cumulative Preference Shares on the share
register at 26 July 2024. A number of shareholders elected to participate in
the Company's scrip dividend reinvestment scheme for the financial year to 30
June 2024. 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 £nil (2023: £nil) in respect of
statute barred preference dividends in accordance with the Company's Articles
of Association.
5. TAX ON ORDINARY ACTIVITIES
The corporation tax payable as at 30 June 2024 was £2.3m (2023: payable of
£2.3m). The current year tax charge was £4.4m (2023: £7.4m) and net tax
payments in the year were £7.0m (2023: £4.3m). The available capital
allowances pool is approximately £8.5m (2023: £4.3m). These estimates are
subject to the agreement of the current year's corporation tax computations
with H M Revenue and Customs.
The standard rate of corporation tax for the year in the United Kingdom is
currently 25% (2023: 25%).
2024 2023
£000
£000
Current tax expense
UK corporation tax 4,003 7,132
Adjustments in respect of prior periods (261) -
Total current tax expense 3,742 7,132
Deferred tax expense
Origination of temporary timing differences 561 191
Adjustments in respect of prior periods 138 -
Effects of changes in tax rates - 42
Total deferred tax 699 233
Total tax expense 4,441 7,365
6. EARNINGS PER SHARE
Reconciliation of basic earnings to diluted earnings: 2024 2023
£000 £000
Basic earnings 13,384 33,332
Non-equity share 565 569
dividend
Diluted earnings 13,949 33,901
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 94,639 94,531
Dilutive effect of convertible shares 42,038 42,226
Diluted weighted average number of ordinary shares 136,677 136,757
Earnings per share of 14.14p (2023: 35.26p) has been calculated by dividing
the total comprehensive profit for the period of £13.4m (2023: £33.3m) by
the weighted average number of Ordinary Shares of 94.6m (2023: 94.5m) in issue
during the year.
Diluted earnings per share of 10.21p (2023: 24.79p) has been calculated by
dividing the diluted earnings for the period of £13.9m (2023: £33.9m) 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. When considering a loss per share
scenario, no adjustment is made for the Preference Share dividend and
therefore the diluted loss per share is equal to the basic loss per share.
7. ANNUAL REPORT & FINANCIAL STATEMENTS
Copies of the Annual Report & Financial Statements together with the
Notice and Notes of the 2023 AGM will be issued to all shareholders in due
course.
The financial information set out above does not constitute the Company's
statutory financial statements for the years ended 30 June 2024 or 30 June
2023. The Independent Auditor's Reports on the statutory financial statements
for 2024 and 2023 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 financial statements for the year ended 30
June 2023 have been filed with the Registrar of Companies and those for the
year ended 30 June 2024 will be delivered to the Registrar of Companies in due
course.
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