Celtic eliminates its losses

http://www.stockmarketwire.com/article/4203101/Celtic-eliminates-its-losses.html

Celtic eliminates its losses
15 August 2011 | 11:35am
StockMarketWire.com - One of Scotland's top football clubs, Celtic, has moved from loss into a small profit despite a less successful time on the pitch.

Its profit on ordinary activities before taxation was £102,000, compared to a loss of £2.13m. the previous year.

Its year end net bank debt of £530,000 is massively down on the half-year figure of £9.09m and substantially down on the £5.85m at 30 June 2010.

The club says that both of these higher debt figures, sanctioned by the Board in order to finance player investment for the incoming new management team, and the subsequent reduction in debt levels were planned as part of the maintenance of financial stability and the independence that comes with it.

Dr John Reid, the former Labour Cabinet Minister, who is shortly to step down as chairman of Celtic, said: "Football was not any more immune from the recession than any other activity. Our participation in Europe was short-lived, playing only two home games rather than the five of the preceding year.

"Those challenging economic conditions and the poor football performance in season 2009/10 undoubtedly had a detrimental effect on our revenues. Turnover decreased by 14.8% to £52.56m, affected by the reduction in European matches and the ticket and broadcasting revenues that they generate, and a decline in merchandising sales in a difficult retail market.

"Against this background the achievements of everyone at the Club - management, staff and our faithful supporters - appear even more outstanding. To achieve and maintain financial stability, and attain a very manageable debt position, while continuing to invest significantly in strengthening the football squad and generate profit in the football sector in Scotland in these conditions is highly commendable.

"And yet, as our Annual Report shows, as a result of these efforts and our activity in the transfer market we managed to turn last year's loss into break-even, to reduce our debt considerably and still invest a substantial amount in new players.

"Operating expenses were reduced again, by £4.75m to £52.51m reflecting lower match and travel costs, reduced cost of sales and smaller labour costs."



At 11:35am: (LON:CCP) Celtic share price was 0p at 41p



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