Celtic profits drop by over £ 10m in past financial year
CELTIC chairman Ian Bankier yesterday revealed the impact of the “destructive” coronavirus outbreak has led for the Parkhead club’s profits falling by over £ 10m in the past financial year.
The Scottish champions announced their annual results today and they show they made a profit before tax of just £ 100,000 – a significant decrease on the £ 11.3m they made last year.
They have also increased their existing revolving credit facility from £ 2m to £ 13m in order to provide “a buffer” amid an uncertain economic climate.
The Glasgow outfit, who won their ninth successive Premiership title in May, increased their gain on the sale of player registrations from £ 17.7m to £ 24.2m.
Bankier described the results as “satisfactory” in the circumstances and stressed directors will work to ensure Celtic’s continued onfield success while safeguarding their long- term sustainability.
He said: “Like many football clubs and indeed many businesses, we are still grappling with the challenges the pandemic presents including the near term uncertainty. The governmental restrictions imposed to protect public health continue to have a negative financial impact on the football industry.
“Unsurprisingly, Covid- 19 has had a material detrimental effect on the financial results and the year ended June 30, 2020, saw revenue fall to £ 70.2m (£ 83.4m in 2019) and profit before tax fall to £ 0.1m (£ 11.3m in 2019).
“This was largely attributable to the value destructive impact of the pandemic across many aspects of our business. Nevertheless, these results are satisfactory in the circumstances at hand.
“Our year end cash net of bank borrowings was £ 18.2m (£ 28.6m in 2019). Post year end we also took the opportunity to increase our existing revolving credit facility from £ 2m to £ 13m to provide a further buffer should it ever be required.”
He continued: “Our hard work and measured approach to investment in recent years has provided a degree of protection, but given the inherent uncertainty of the current environment, we must proceed and invest with a degree of caution.
“We remain confident in the fundamentals of our football model. As we look ahead, our immediate priorities are to work with the football authorities and government to have fans return to watching football in our stadium in a safe manner.”