As ever, I am hugely appreciative to my number crunching scrum-half for being so generous with his time.
You can read them here for yourself.
However, here is what Rugger Guy sent me:
As per your request to review the accounts of Celtic plc, “Celtic” I will summarise the main findings, discuss the main positives and negatives and summarise with the financial challenges for Celtic.
The first key thing to report is that the published numbers of Celtic are 14 pages long and not the usual 50 plus report which will be filed with companies house in due course.
This is the same as last year.
The second main point to highlight once more is that the independent audit report, once more, is unqualified, did not draw attention to any matters by way of emphasis and also accounting records and full disclosure took place.
As a result of this being a summarised set of numbers, the full review of financial statement and accompanying notes can be carried out when the full year accounts are filed.
The main highlights of the numbers are as follows:
Revenue down almost 16% at £70.2m
Operating expenses down 7.3% to ££80.5m
Profit before tax is £0.1m against a profit of £11.3m last year.
However, the underlying numbers show:
Operating loss is £0.3m versus a profit of £11.5m last year.
The cash balance net of borrowings has reduced from £28.6m to £18.2m.
Within the income statement, the overall performance was assisted by the gain on player trading of £24.2m; this would be largely down to the sale of Tierney.
Last year, the results were bolstered by the gain on trading of almost £18m coupled with the monies received from the departure of the management team, which yielded a further £8.8m.
The infrastructure of Celtic with its high-cost base means that player sales or substantial success in European tournaments is the only way that a financial surplus can be achieved.
The financial results take into account the effect of Covid for three and a half months of the financial year. The accounts for next year are likely to have a bigger adverse impact on the operating performance of Celtic.
The other major noticeable update is that Celtic have increased their revolving credit facility from £2m to £13m in order to provide further headroom and flexibility, but clearly indicate the looming challenges ahead.
Post balance sheet events.
Since the year-end, a noticeable feature is that Celtic have signed three players, Ajeti, Turnbull and Barkas, with no substantial player sales.
In addition, they have two further loan signings with an extension for a further player. Some players have been loaned out, but no reference was made to having a financially significant effect.
All in all, this points to further financial investment by the football club.
To try and put this in context and to summarise.
From a positive perspective.
Celtic have retained all their commercial sponsors, in addition, Adidas has become the shirt sponsor, and I presume this will yield a higher value in commercial and multimedia revenues.
The club have increased their credit facilities by a further £11m to £13m, so given the current balance of cash at £18.2m as of 30 June 2020, this provides substantial financial leeway in a challenging trading environment.
The football club has added to its player intangible player base by a further £6m during the year.
From a negative perspective.
Celtic reported an operating loss of £0.3m against an operating profit of £11.5m last year.
Cash outflow in the year was almost £12m.
Subsequent to the further year-end investments have been made, and these commitments will exceed £10m (I am informed).
I think that the club will be forced into player sales in the current financial year to offset operating losses, because of the high-cost base, and given the Covid effect, this may depress the realisable value for players. Should the European competition prove to be a failure and yield substantially lower revenues, this will place more pressure on the need to sell players, notwithstanding £30m leeway that the club currently has.
When the results of other football clubs are published, I think that Celtic will undoubtedly be in a better financial position than many. However, lack of success on the pitch, coupled with the substantial Covid effect, will place massive pressure on the board to either downsize substantially on the cost base of the football club or accelerate the number and value of player sales in order to try and balance the books from a short to medium-term perspective.
Of course, as usual with this content I am merely the grateful publisher.