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Club sticks to business model

Celtic return to profit on player sales


celtic-sponsorSelling key players helped Celtic return to profit and build for the future, said chairman Ian Bankier.

A £459,000 profit before tax for the year to 30 June compared to a loss before tax of £3.9m last year.

Player sales rose from nearly £7m to £12.6m, following Virgil van Dijk’s move to Southampton.

Revenue increased 2% to £52m, while operating expenses were 7% higher at £57m.

Offloading players replaced revenue the club lost by its failure to qualify for the group stages of the UEFA Champions League.

It enabled the club to maintain investment in football operations and to continue to build for the future, said Mr Bankier.

“The board continues to believe that the company’s self sustaining financial model provides the necessary stability to preserve the long term future of the club and player trading remains an important element of that model,” he said.

“Allied to player trading is the creation of the next generation of Celtic stars in our Youth Academy and I am glad to say that season 2015/16 saw a great example of that Celtic tradition, with Kieran Tierney establishing himself in the first team, being rewarded with his first full international call up for Scotland and being named PFA Scotland Young Player of the Year.”

During the year, Eric Riley resigned as financial director and remained as a non-executive director until 30 June to assist with the handover to his replacement, Chris McKay from Deloitte. He  remains a member of the board. 

Financial Highlights

·    Group revenue increased by 1.8% to £52m

·    Operating expenses increased by 7.3% to £57.1m

·    Exceptional costs of £1.7m (2015: £0.7m) 

·    Gain on sale of player registrations of £12.6m (2015: £6.8m)

·    Profit before taxation of £459,000 (2015: loss of £3.9m)

·    Year-end net cash at bank of £3.6m (2015: £4.7m)

·    Investment in football personnel of £8.8m (2015: £9.4m)

 



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