Celtic Regulatory News (CCP)

Celtic PLC

Announcement of Results for the year ended 30 June 2016

SUMMARY OF THE RESULTS

Operational Highlights

· Winner of the SPFL Premiership - 5 in a row

· Participated in the UEFA Europa League playing 6 home European matches (2015: 6)

· 28 home matches played at Celtic Park (2015: 29)

· New shirt sponsorship with Dafabet and Magners

· Unveiling of Billy McNeill statue

Financial Highlights

· Group revenue increased by 1.8% to £52.0m

· Operating expenses increased by 7.3% to £57.1m

· Exceptional costs of £1.7m (2015: £0.7m)

· Gain on sale of player registrations of £12.6m (2015: £6.8m)

· Profit before taxation of £0.5m (2015: loss of £3.9m)

· Year-end net cash at bank of £3.6m (2015: £4.7m)

· Investment in football personnel of £8.8m (2015: £9.4m)

For further information contact:

Company

Ian Bankier, Celtic plc Tel: 0141 551 4235

Peter Lawwell, Celtic plc Tel: 0141 551 4235

Iain Jamieson, Celtic plc Tel: 0141 551 4235

Canaccord Genuity Limited, Nominated Adviser

Bruce Garrow Tel: 020 7523 8350

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

CHAIRMAN'S STATEMENT

These results, which show a profit before taxation of £0.5m compared to loss before tax of £3.9m last year, in comparable trading conditions, reflect in large part the increased contribution during the year from the sale of player registrations. Following two seasons in which the Club did not qualify for the Group Stages of the UEFA Champions League, the increased contribution from player trading enabled the Company to maintain investment in football operations and to continue to build for the future.

The Board continues to believe that the Company's self sustaining financial model provides the necessary stability to preserve the long term future of the Club and player trading remains an important element of that model. Allied to player trading is the creation of the next generation of Celtic stars in our Youth Academy and I am glad to say that season 2015/16 saw a great example of that Celtic tradition, with Kieran Tierney establishing himself in the first team, being rewarded with his first full international call up for Scotland and being named PFA Scotland Young Player of the Year.

During the year, Ronny Deila decided to leave the Club at the end of season 2015/16. Ronny signed off with success, as Celtic were crowned champions of Scotland at the end of the season, making it five in a row. On behalf of the Board, I would like to thank Ronny for his contribution to the Club during his time here and to wish him the best for the future.

Following an exhaustive recruitment process, the Club was delighted to announce the appointment of Brendan Rodgers as manager in May. The scenes at Celtic Park as Brendan was unveiled were fantastic and created a real sense of optimism for the season ahead. I am delighted to say that, so far, that optimism has been realised this season, as the team has qualified for the Group Stages of the UEFA Champions League and currently sits top of the SPFL Premiership table playing attractive, attacking football. We welcome Brendan and his staff to Celtic Park and congratulate them and the team on the success to date. We will continue to support them to deliver football success.

The Club remains committed to improving the football environment in which Celtic plays. At a time of change, it is important that we continue to be at the forefront of the development of the game. Peter Lawwell, our Chief Executive, sits on the board of the SPFL, the European Club Association and the Club Competition Committee of UEFA. The Club continues to work with clubs and all those involved in football governance to identify means in which to improve the game in Europe.

During the year, Eric Riley resigned as Financial Director of the Company with effect from 31 December 2015. On behalf of the Board, I would like to thank Eric for his huge commitment to the Company, his distinguished service over 20 years and his vital role in the development of the Company and the promotion of the game in Scotland. Eric remained as a non-executive director until 30 June 2016 to assist with the handover to his replacement, Chris McKay, and remains a member of the board of The Celtic Football and Athletic Company. The Board welcomes Chris, who joined from global consultancy firm, Deloitte.

In closing, I am pleased to say that the year to June 2016 also saw continued success for Celtic FC Foundation. I thank all those involved in the operation of the Foundation and in donating time and money to it, as it is such an important part of what our Club is all about.

As we look forward with confidence to the year ahead, on behalf of the Board I thank our supporters, shareholders, sponsors, partners and colleagues. We all share the same desire - the best for Celtic. We will continue to strive to deliver that.

Ian P Bankier

19 September 2016

Chairman

CHIEF EXECUTIVE'S REVIEW

On the pitch, the year to 30 June 2016 did not meet with our expectations. Whilst the SPFL Premiership title was retained, our performances in the domestic cup competitions and in European competition were poor, as the Club failed to reach either domestic cup final and failed to qualify for the Group Stages of the UEFA Champions League for the second successive season. Off the pitch the Company returned to profit, mainly as a result of the transfer of certain player registrations during the period leading to a gain on sale of player registrations of £12.6m (2015: £6.8m). This enables us to continue to deliver long term sustainable football success in a very challenging environment.

After a more successful first season, Ronny Deila decided to leave the Club at the end of last season and goes with our best wishes. His second league title, and the Club's fifth title in a row, provided a good base for Brendan Rodgers to build on, which he did by qualifying for the Group Stages of the UEFA Champions League. In welcoming Brendan and his staff, I must congratulate them and the team on that achievement, so soon after Brendan's arrival at the Club. I know that Brendan is committed to bringing success to the Club and the Board will support him in that effort. Our objectives during this season remain success in all three domestic competitions and in the UEFA Champions League.

For a club like Celtic, operating in a market where television values have fallen significantly behind our neighbours across Europe, qualification for the Group Stages of the UEFA Champions League is of paramount importance. The financial rewards allow for investment in the playing squad and physical assets, but moreover, the prestige of participating in the premier club competition in the world reinforces the reach and importance of the Club to so many people around the world.

Fundamentally, Celtic is a Champions League club; our infrastructure and continued investment reflect that. At a time when the direction of travel in European football is towards elite level clubs, we must remain at the forefront of developments in the game domestically and across Europe. Celtic should be at the top of the game in Europe and the Board and I have that objective as a priority. We continue to work tirelessly on seeking to improve the football environment in which the Club operates.

We remain of the opinion that our core strategy should remain focussed on a football operation with a self sustaining financial model, relying upon: the youth academy; player development with world class coaching; player recruitment; management of the player pool; and sports science and performance analysis. The Youth Academy continues to form an important part of our strategy. This year the investment made in the Academy and the partnership with St Ninian's High School continued to deliver positive outcomes, as Kieran Tierney became a regular in the first team and Aiden Nesbitt, Joe Thompson, Anthony Ralston and Jack Aitchison all made competitive first team debuts, with Jack becoming the youngest ever first team debutant and the youngest player to score in his first game for Celtic. The ultimate objective, for the players and the Club, is to create Champions League players, playing the Celtic Way and this year Kieran made his debut in the competition.

During the year, I was immensely proud to join Billy McNeill and his family on the Celtic Way to unveil the magnificent statue of Billy lifting the European Cup. Billy will always embody the Celtic Way and the statue stands as a fitting tribute to a true Celtic legend and as inspiration to the next generations of young players who learn to love the game at Celtic Park.

Celtic supporters continue to support the Celtic FC Foundation as it develops into one of the most successful club charitable organisations in the world. That support is not surprising, but it is not taken for granted. I thank everyone involved in the continued success of the Foundation.

Nor is the continued success of Celtic to be taken for granted. It requires hard work and commitment, both on and off the field. I thank all of my colleagues, our supporters, shareholders and club partners for all of their efforts in support of such an important cause.

Peter Lawwell

19 September 2016

Chief Executive

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED BALANCE SHEET

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONSOLIDATED CASH FLOW STATEMENT

NOTES TO THE FINANCIAL STATEMENTS

1. BASIS OF PREPARATION

These Financial Statements have been prepared in accordance with the recognition and measurement principles of IFRS as adopted by the European Union. The accounting policies have been consistently applied to both years presented.

2. REVENUE AND TOTAL OPERATING EXPENSES

3. EXCEPTIONAL OPERATING EXPENSES

The exceptional operating expenses of £1.72m (2015: £0.74m) can be analysed as follows:

4. DIVIDENDS PAYABLE

A 6% (before tax credit deduction) non-equity dividend of £0.52m (2015: £0.52m) was paid on 1 September 2016 to those holders of Convertible Cumulative Preference Shares on the share register at 29 July 2016. A number of shareholders elected to participate in the Company's scrip dividend reinvestment scheme for the financial year to 30 June 2016. 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.

During the year, the Company reclaimed £0.02m (2015: £0.09m) in respect of statute barred preference dividends in accordance with the Company's Articles of Association.

5. TAX ON ORDINARY ACTIVITIES

No provision for corporation tax or deferred tax is required in respect of the year ended 30 June 2016. Estimated tax losses available for set-off against future trading profits amount to approximately £16.08m (2015: £16.40m) and, in addition, the available capital allowances pool is approximately £10.25m (2015: £11.25m). These estimates are subject to the agreement of the current and prior years' corporation tax computations with H M Revenue and Customs.

6. EARNINGS PER SHARE

Earnings per share has been calculated by dividing the profit for the period of £0.46m (2015: loss of £3.95m) by the weighted average number of Ordinary Shares of 93.1m (2015: 92.8m) in issue during the year. Diluted earnings per share as at 30 June 2016 has been calculated by dividing the profit for the period by the weighted average number of Ordinary Shares, Preference Shares and Convertible Preferred Ordinary Shares in issue, assuming conversion at the balance sheet date, if dilutive, in accordance with IAS33 Earnings Per Share.

7. ANNUAL REPORT & ACCOUNTS

Copies of the Annual Report & Accounts together with the Notice and Notes of the 2016 AGM will be issued to all shareholders in due course.

The financial information set out above does not constitute the Company's statutory accounts for the years ended 30 June 2016 or 30 June 2015. The Independent Auditors' Reports on the statutory accounts for 2016 and 2015 were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006. The statutory accounts for 2015 have been filed with the Registrar of Companies and those for 2016 will be delivered to the Registrar of Companies in due course.