As ever, I am hugely grateful to Rugger Guy for giving so freely of his time to crunch the numbers for me.
This time it is on Celtic’s recently published Interim Accounts.
You can read them here.
The usual caveats are in place and what follows is none of my doing:
Phil, I have prepared a short summary on the financial results on Celtic plc, “Celtic” for the 6 months to 31 December 2019.
What jumps out immediately, is that the interim accounts show a strong trading performance, once again supported by the transfer of players, that the football club is clearly continuing to operate on a self-sustaining basis and that it is in rude financial health. The key item to support this is that the net cash net of debt of all items taking into account player trading shows that Celtic have £45.1m which compares with £37.1m last year.
I will highlight a few points from the 17-page report but remember that this is not a full set of accounts, but clearly the auditors have approved these particularly from the perspective of stock exchange requirements.
Turnover has increased by £3.3m to £53.3m but this includes 21 home games versus 17 last year.
Operating expenses have also increased by £2.5m to £46.3m demonstrating further increases in player costs and infrastructure.
Profit before tax is £24.4m vs £18.8m, however this is principally made up from profit from players transfers of £23m vs £17.6m. Clearly, any shortfall in revenues arising from success in European competitions will put pressure on continuing to trade players, however net cash of over £45 m is a truly strong position in order to take a measured approach. However, it should be noted that major capital expenditure on a hotel etc. will be costly.
Working capital which represent short term assets less liabilities remains healthy at c £20m.
Post Balance sheet events show that Celtic bought two players, sold two players and loaned out 4 players.
So, in summary, Groundhog Day, a very solid set of numbers assisted by player trading, and the investment of a further £15m in acquisition of players indicates that the self-sustaining financial model is set to continue.
Ok, there you have it.
“…a very solid set of numbers…”
One thing he did mention to me on the phone, and it wasn’t the first time, was that he gleefully pointed me to the sanctions that had been imposed on Saracens.
Now, since that dropped my egg-chasing buddy has been overdosing on Rugger jelly and ice cream since it was announced.
Fair play!
For years he watched his beloved Harlequins up against a financially doped outfit and it was hard to take.
It is almost as if spending all that money amounted to a sporting advantage…
Now, I realise that this is a controversial opinion among the Stenography Corps if it is aimed at Ibrox.
Rugger Guy made the serious point that his game has proper governance unlike, as he calls it “association football” in Scotland.
Of course, I cannot argue with him on that one.
My only quibble with the Celtic Interim accounts is the amount of money they are hoarding.
Especially, when we are in a title race with a financially weaker rival.
Baffling…
Discover more from Phil Mac Giolla Bháin
Subscribe to get the latest posts sent to your email.
Lawel is the biggest treat to 9 in a row .Many fan’s will turn their back on club and the board if it’s not won.Time for change !!! .
Sorry I mean lawel is a threat
I had a good auld laugh at the Klans forums today .Apparently they want club 1872 to do all their PR stuff and to ditch The Fat Controller (Aka James Traynor). They say club 1872 are there always fighting their corner for them and are now demanding that a member from club 1872 get a seat on the the rangers board as well . Now if club1872 could not get a seat on the board when they had 10% shares in the club and recently since they purchased more shares in the club but watched the 10% being diluted to less again what makes these thickos think they can get someone on that board when their share interest is now less . Oh dear the gullibles are even more gullible than the gullibles.
Off topic here but Gordon Twaddle of the The Sunday Mail has attempted to write an article on the morelos farce from over the past week. Once again he like everyone else has called Sky into question regarding who is behind the translation of the interview. He blames the guy from Sky doing the interview as head of formula 1 there interviewing on a football matter as well as some others . But not once does he mention the head of communications and PR at rangers that all of this would have to get him by first yes my friends The Fat Controller himself James Traynor. When interviews take place at rangers the PR GURU is there 24/7 to keep a tab on everything and everyone and on anything being said hence the intervention with the Breadman you ain’t telling me he was nowhere near this interview he set it all up and only Michael Stewart has the guts to tell people . Twaddle takes us on a wild goose chase here about who is to blame and everyone and anyone is het for this except the one person he fails to mention the rangers PR GURU . So another so called journalist in the back pocket of Level 5 job done cheque in the post.
There’s a reserve there to keep us on top for five years. Twenty for a fiver style.
Hors piste, excuses.
It does seem that we are on track to rebalance the true equilibrium of Ireland and we should not do anything to upset coquettish Arlene, or any of our dear most orange colons so don’t mention Eireann or anything sounding untoward or pigtish (spellcheck).
I am totally averse to a tease, at least objectively, so I abhor the actions of those few dishonourable nationalists who constantly try to wind up the main party in the six counties which has always promoted the clearest principles of democracy.
My mother (1922-1997) was a careful person but she predicted them getting “booted oot” many many times.
Sorry you won’t be there to see it Ma.
We should be out of sight of this tribute act. We have a healthy bank balance, which is all good and dandy, but a couple of decent proven signings would have giving us a sporting advantage to put this disgusting mob on the back foot. 9IAR is in serious danger, they know how to play us!!! Lennon being happy with his squad after the window proves he is a puppet, and the real reason he was appointed.
We can’t control their results, other than against us. They keep winning and there’s nothing we can do about it.
There is what’s called “a prudent reserve” . Estimates will vary as to the size of prudence. Why on earth should Celtic spend and then spend again. If this years title cannot be won with the current squad, some straight talking is needed. If the well paid members of the Celtic squad don’t come up to scratch hit them in the pocket. It seems to me that money is the only thing that counts. I recall an interview with Bertie Auld. Money hardly came into it. The God at that time was camaraderie. So stop moaning about “hoarding “. It’s not that long ago that a certain man was castigated , thank god he had self will and thick skin to haul the Celtic family of it’s knees. I do wonder what the current wage bill is at Parkhead.
It was Bertie Auld who was behind the European Cup Final bonus “revolt” in 1970.
Money did come into it.
With regards to the ever growing cash pile;
on the face of it, it’s not efficient: if CFC cannot reinvest the cash to get an acceptable return – then some of the money could be returned to shareholders via special dividends.
It could be that Lawwell is building a cash pile to minimise external financing for the hotel etc.
But then again, cash is currently cheap for those businesses which can access significant financing.
Well, whatever the reason for hoarding this amount of cash…
it’s certainly not for spending on proven, first team transfers-in. 😦
Mibbees Lawwell just like counting it…? 🙂
Let’s hope this hoarding of money buys us 10iar and isn’t just to enable the shareholders and PL to accrue huge bonuses and dividends. The finances we have should be reinvested in the team and the infrastructure of Celtic Park……the holy ground. HH
Phil, as we know to release accounts on a Friday night is a tactic used by the glib 1, is there any reason why we have resorted to this? It set alarm bells ringing for myself
There is nothing in the numbers to justify your reaction
Thanks for the analysis Phil. As always Rugger guy is on the money.
I wouldn’t take his view of PRL as proper governance. They are remarkable similar to the SPFL. The main difference is that all the teams are owned by multi millionaires who ain’t going to be shafted by anyone else.
If only Celtic had one of the billionaire types….