Celtic have released their Interim Report for the six months to December 31, 2022.
Key Operational Items
-
Currently first in the SPFL Premiership.
-
14 home fixtures (2021: 19).
-
Participation in the UEFA Champions League group stages.
Key Financial Items
-
Revenue increased by 44.8% to £76.5m (2021: £52.9m).
-
Profit from trading was £28.1m (2021: £7.0m).
-
Profit from transfer of player registrations (shown as profit on disposal of intangible assets) £1.8m (2021: £25.8m).
-
Profit before taxation of £33.9m (2021: £27.6m).
-
Acquisition of player registrations of £5.7m (2021: £16.8m).
-
Period end cash net of bank borrowings of £59.2m (2021: £25.6m).
CHAIRMAN’S STATEMENT
I am honoured to present my first Chairman’s statement on behalf of Celtic Football Club. Being back to chair the club that I have always supported and served for almost 18 years as CEO, is a privilege. I look forward to fulfilling the role, and playing my part in our Club going forward.
The results for the six months ended 31 December 2022 show revenues of £76.5m (2021: £52.9m) and a profit before taxation of £33.9m (2021: profit before tax of £27.6m). The profit from trading, representing the profit excluding player related gains and charges, amounted to £28.1m (2021: profit of £7.0m).
The key factors driving the improvement in the underlying trading performance in the six months to 31 December 2022 compared to the same period last year, was the direct qualification to the UEFA Champions League Group stages. This was the key driver in our revenue increase over the same period last year which reflected UEFA Europa League Group stage participation. Gains from player trading this year of £1.8m (2021: £25.8m) were notably lower, reflecting our strategy of assembling a new football playing squad under our Football Manager, Ange Postecoglou. Period end net cash at bank was £59.2m (2021: £25.6m). After adjusting for a net trading balance on prior inbound and outbound transfers, this sum reduces to £50.2m at December 2022 (2021: £39.7m). The introductory page to these interim results summarises the key events in the period.
This year is the second season under Ange and the success delivered in season 2021/22 in securing the SPFL title ensured we qualified directly for the UEFA Champions League Group stages for season 2022/23. This allowed us to plan and execute our transfer business early. Following from the permanent signings of Daizen Maeda, Cameron Carter-Vickers and Joao Pedro Neves Filipe (Jota), we went on to sign Alexandro Bernabei, Sead Haksabanovic, Aaron Mooy, Benjamin Siegrist and brought in loan signings Oliver Abildgaard and Moritz Jenz.
As the season got underway in August, we were presented with a tough Champions League Group stage draw, alongside 14 times Champions League winners Real Madrid, RB Leipzig and Shakhtar Donetsk. Despite a number of strong footballing performances we all shared Ange’s disappointment in not progressing further, but took heart from the competitive performances and experience gained by our young team which will serve them well in future European competition.
On domestic footballing matters, we currently sit 9 points ahead at the top of the SPFL Premiership, have reached the Viaplay Cup Final and have reached the fifth round of the Scottish Cup. We sit in a satisfactory position domestically, but strive to keep improving as a club and during the January transfer window we further added to the squad by signing Alistair Johnston, Yuki Kobayashi, Tomoki Iwata (loan with obligation to buy) and Hyeongyu Oh. Josip Juranovic, Oliver Abildgaard, Moritz Jenz, Scott Robertson and Giorgos Giakoumakis moved on to continue their careers elsewhere and we wish them all the best for the future.
Our B Team continues to develop in the Lowland League under Darren O’Dea and Stephen McManus. A key objective of our B Team and Academy is to develop first team players and already this season B Team players Bosun Lawal and Rocco Vata have made their first team debuts. This is a major milestone and achievement for our young players and reflects our strategy of developing Academy players through our system. Our Women’s team also continues to progress under Fran Alonso and at the time of writing we sit second in the league and are in the fifth round of the Scottish Cup.
As we look ahead, our immediate priority is to secure domestic success for season 2022/23, with a view to progressing into the Champions League Group stages for a second consecutive year. We also wish to build upon the progress made in our Academy and the Women’s team, and are currently exploring development opportunities at our Barrowfield training ground with a view to enhancing the facilities for these squads.
We will also continue to contribute to the development of UEFA European Club Competition through participation in the European Club Association. The forthcoming changes to European Club Competition from 2024 onwards bring a number of exciting changes that we will embrace and look to take advantage of.
In line with the seasonality inherent in our earnings profile, the second half of the financial year will see losses incurred, as our earnings are biased toward the first half of the financial year. These losses however will be in part mitigated by gains on player trading realised from the January 2023 transfer window along with greater revenue from operating activities than was previously anticipated. The bias in earnings towards the first half of the financial year reflects the fact that UEFA distributions and UEFA match ticket income are largely recognised in the first half of the financial year and as in previous years, the second half of the financial year typically sees lower retail sales. Our outturn earnings can also be materially impacted by football success and the year end assessment of player registration carrying values. Taking all of this into consideration, we would expect our total outturn profit before tax for the year ending 30 June 2023 to be significantly lower than the result posted for the first six months of the financial year.
On behalf of the Board, I wish to thank our supporters for their unwavering dedication and support of our Club. I wish to also thank our shareholders and commercial partners for continuing to back the Club as they have done over many years.
Peter Lawwell
Chairman
10 February 2023
Hearts away in the cup, date TBC
First Celtic match for myself this Saturday. Hail hail.
I’ll be there myself with the youngster.
Bandage?
There’s a genuine kindness to the staff at Celtic Park I’ve noticed. Sound people.
Big Alan Brazil there in the corner beside him.
Pretty sure that is former Irish hooker, Bernard Jackman
Pity about the size of the crest.
Celtic v Rangers in the cup semi-final draw.
Caley v Falkirk in the other side.
The winner to come from those two semi finals you’d suspect.
You’d think so alright