Celtic in £11m loss; revenue falls 13% to £61m

Celtic plc reported that its revenue fell 13.4% to £60.8 million in the financial year to June 30, 2021, and it made a loss before taxation of £11.5 million.

Celtic chairman Ian Bankier said: “This was driven by revenue attrition and significantly lower gains on player trading, compared to the prior financial year.”

Celtic plc’s major shareholders include Dermott Desmond, Christopher Trainer, James Keane, Thomas Allison and London-based investment firm Lindsell Train.

Celtic plc has a current stock market value of around £105 million.

Bankier added: “In the face of this adverse swing in financial performance, we are satisfied that we took sufficient and appropriate steps to mitigate the losses and control costs in the business.  

“Our year end cash, net of bank borrowings, was £16.6m (2020: £18.2m). 

“This gave us a base to invest in the summer transfer window as discussed further below …

The persisting trading restrictions from Covid-19 translated into lost earnings and, taking account of the seasonality in our trading, this was the key factor in the widening of our losses in the second half of the financial year. 

“Conditions have improved markedly since the year end and we were delighted to welcome our fans back in July 2021. 

“Although our stadium has been operating at near full capacity, recently announced Scottish Government restrictions on large venues will be a further challenge. 

“Whilst we look forward with optimism to a more normal operating environment, we are mindful of the inherent risk of the pandemic continuing to affect public health.

The board was delighted to welcome new manager Ange Postecoglou to the club in June 2021.

“Ange is a modern, progressive coach with exciting, attacking football as his philosophy …

“Dominic McKay, who was appointed CEO on 1st July 2021 chose to step down on 10th September for personal reasons.

“I thank Dom for his contribution over the summer and everyone at Celtic wishes him well for the future.

“Michael Nicholson, director of legal and football affairs, has been appointed to the board as acting chief executive officer.

“Michael carries the confidence of the board, he is experienced in Celtic, highly regarded in football circles and is a most effective leader of our executive team.”

On dividends, Celtic said: “A 6% non-equity dividend of £0.53m (2020: £0.51m) was paid on 31 August 2021 to those holders of convertible cumulative preference shares on the share register at 30 July 2021.

“A number of shareholders elected to participate in the company’s scrip dividend reinvestment scheme for the financial year to 30 June 2021. 

“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.”