Celtic Regulatory News (CCP)

14 February 2011

CELTIC plc

INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2010

SUMMARY OF THE RESULTS

Operational Highlights

·; Currently first in the Clydesdale Bank Scottish Premier League.

·; Co-operative Insurance Cup Finalists

·; Continued participation in the Scottish Cup.

·; 15 home matches played in the period (2009: 15).

Financial Highlights

·; Turnover decreased by 21.4% to £28.39m.

·; Operating expenses decreased by 12.5% to £27.47m.

·; Profit on disposal of intangible assets £13.20m (2009: £1.04m).

·; Profit before taxation of £7.06m (2009: £1.27m).

·; Period end bank debt of £9.09m (2009: £3.13m).

·; Investment in football personnel of £9.00m (2009: £7.84m).

For further information contact:

Celtic plc

CHAIRMAN'S STATEMENT

In previous years, and again last summer, I stressed the importance to our Club of financial stability and participation in Europe, and that commercial and football success cannot be separated.

At this time last year we knew we were facing a very difficult season, and so it proved. In turn, that left a legacy of set-back at the beginning of the current season, in dropping out of European competition entirely at an early stage. But while some of the economic and financial issues that we would face as a result could be predicted, we had little inkling of other events which will undoubtedly play a large part in shaping the future of football in Scotland. Your support, throughout quite extraordinary times, has been unwavering.

The cold wind of economic recession, combined with the effects of the even colder Scottish winter and our early exit from Europe are reflected in disappointing underlying trading results for the 6 months to 31 December 2010. Group revenue for the period decreased from £36.11m the year before to £28.39m, driven mainly by reduced proceeds from ticket sales including European games - 2 European home matches as opposed to 5 (including a Champions League play-off against Arsenal) the year before - a drop in multimedia income, and a decline in merchandising sales.

As a result we have seen profit from trading fall to £0.92m from £4.71m. In the process we have managed to reduce our total operating expenses, by £3.92m to £27.47m, by driving efficiency in our operations, reducing labour costs and other overheads. I remain enormously grateful to everyone who works for the Club for the manner in which they have confronted these difficult economic times. We truly have a dedicated staff.

But our business model and results are not wholly dependent on non-football segments; just as football labour costs are a substantial part of our cost base, so too has player trading become increasingly important.

We continually seek to improve and refresh the first team squad through development of our own young players, and the introduction of new players from elsewhere. This also means moving on players who we consider are underperforming and selling others who are important to us, if the timing and price are right and/or the individual concerned himself wishes to leave the Club. McGeady, McManus, Boruc, Fortuné, Sheridan and Mizuno left us during this period, and in thanking them for their service we wish them well for the future.

The contribution generated from player trading, after allowing for amortisation charges and exceptional operating expenses, more than offset the outcome on our other trading activities and enable us to report an overall profit before taxation in the period of £7.06m, well up on £1.27m at the same time in the year before. However, in common with previous years, the second half is expected to be more challenging in terms of financial performance.

Nevertheless, our business model has allowed us, even in these difficult economic times, to re-invest in a substantial renewal of our playing staff: Cha, Forster, Hooper, Izaguirre, Juarez, Kayal, Ledley, Majstorovic, Mulgrew, Murphy and Stokes all joining last Summer, and alongside Commons and Ljungberg more recently, contributing to what we hope promises to be a successful rebuilding of our performance and prospects.

The Board sanctioned the significant amounts that continue to be invested in the strengthening of our football personnel (£9.0m) and in the training academy at Lennoxtown, where development continues with a further pitch being built and ongoing investment in technical functions such as scouting, sports science and performance analysis. We remain committed to developing our own home-bred talent and take pleasure at the emergence through our Academy and youth coaching of young players such as Forrest and Towell.

Thankfully this policy now appears to be producing the intended objectives; it is encouraging to see the return of attractive, winning football. This is particularly heartening in a squad whose recent performances have increasingly belied a young average age - which augurs well for the longer term.

Credit must go to our new manager and his team. At the beginning of the season we faced an enormous challenge on the field as well as off. Neil Lennon, his colleagues and the backroom staff have applied themselves with a diligence and talent which is now beginning to show its rewards.

Our net bank debt at 31 December 2010 increased from £3.13m as at 31 December 2009 to £9.09m, a level that the Board considers remains manageable, and still provides some flexibility in respect of future investment. Since 31 December 2010 substantial transfer payments have been received, which has reduced our debt. Assuming season ticket revenue receipts for season 2011/12 to be similar to this year, and that other commitments to us are honoured when due, we currently anticipate year end net bank debt will be significantly lower than at the half- year.

The approach we have taken to maintaining a sustainable business model, with player investment and a willingness to trade when appropriate becoming increasingly significant elements, leaves us reasonably placed to withstand the continuing sluggish economic environment. But we must also continue to ensure that we are doing all we can to make our underlying trading position healthier.

The last 6 months have clearly been a difficult period in economic terms for us, and many others, but this is as nothing compared to the turbulence experienced in the wider arena of Scottish football, and the SFA in particular. I do not intend to rehearse our views on those events once again, but we hope that some good will ultimately come from last Autumn's spectacle, and that the recommendations for reform made by Henry McLeish will be acted upon resolutely. Significant elements of these accord with the objectives for which we have long campaigned. We welcome the changes that have already taken place, and look forward to further reforms being implemented.

And here, once again, I am personally enormously thankful for the tremendous backing and solidarity of our supporters and shareholders. We stood up for what we believed to be right and witnessed the entire Celtic family rallying in support of our manager and our Club. I thank you all.

These are challenging times. But it is in adversity that we are most tested and best proven. We have seldom been more united in our determination to succeed, or more focussed on our goal of recovering the championship title.

Dr John Reid

Chairman

14 February 2011

Celtic plc

 INDEPENDENT REVIEW REPORT

INDEPENDENT REVIEW REPORT TO CELTIC PLC

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2010 which comprises the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Changes in Equity, Consolidated Cash Flow Statement and the related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the AIM Rules of the London Stock Exchange.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared using accounting policies consistent with those to be applied in the next annual financial statements.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2010 is not prepared, in all material respects, in accordance with the AIM Rules of the London Stock Exchange.

PKF (UK) LLP

Glasgow, UK

14 February 2011

Celtic plc

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Celtic plc

Registered number SC3487

CONSOLIDATED BALANCE SHEET

Approved by the Board on 14 February 2011

Celtic plc

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Celtic plc

CONSOLIDATED CASH FLOW STATEMENT

Celtic plc

NOTES TO THE FINANCIAL STATEMENTS

1. This Interim Report, comprising the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Changes in Equity, Consolidated Cash Flow Statement and accompanying Notes, has been prepared in accordance with the AIM rules of the London Stock Exchange. The measurement and recognition accounting policies applied are consistent with those that will be applied in the 2011 annual accounts which will be prepared in accordance with IFRS.

The interim results do not constitute the statutory accounts within the meaning of s434 of the Companies Act 2006. The financial information in this report for the six months to 31 December 2010 and to 31 December 2009 has not been audited. The prior period figures for 2009 have been restated following the recalculation of the debt element of the Convertible Cumulative Preference Shares as per Note 10.  The comparative figures for the year ended 30 June 2010 are extracted from the Group's audited financial statements for that period as filed with the Registrar of Companies. They do not constitute the financial statements for that period. Those accounts received an unqualified audit report which did not contain any statement under sections 498 (2) or (3) of the Companies Act 2006.

The auditors have reviewed this Interim report and their report is set out on page 4.

2. REVENUE - SEGMENTAL INFORMATION

3. EXCEPTIONAL OPERATING EXPENSES

 The exceptional operating expenses are £1.52m (2009 £nil) and reflect labour and ancillary charges of £0.76m as a result of onerous contracts and impairment of intangible fixed assets of £0.76m.

4. FINANCE COSTS

Celtic plc

NOTES TO THE FINANCIAL STATEMENTS

5. TAXATION

After taking account of unutilised tax losses brought forward, together with the projected performance for the next six months, no provision for taxation is required.

6. EARNINGS PER SHARE

Basic earnings per share has been calculated by dividing the earnings for the period by the weighted average number of Ordinary Shares in issue 90,034,564 (2009: 89,811,538). Diluted earnings per share as at 31 December 2010 has been calculated by dividing the earnings 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, and the full exercise of outstanding share purchase options, if dilutive. As at December 2010, December 2009 and June 2010 no account was taken of potential conversion of share purchase options, as these potential Ordinary Shares were not considered to be dilutive under the definitions of the applicable accounting standards.

7. INTANGIBLE ASSETS

8. Receivables

The increase in the level of receivables from 31 December 2009 of £8.96m to £13.72m is primarily a result of an increase in amounts due in instalments from player sales conducted in both previous transfer windows.

Celtic plc

NOTES TO THE FINANCIAL STATEMENTS

10. PRIOR YEAR ADJUSTMENT

Following a review of the accounting treatment of the debt element of the Cumulative Convertible Preference Shares, an adjustment was made in the 2010 financial statements which resulted in the debt element of the Cumulative Convertible Preference Shares increasing by £1.41m from £3.03m to £4.44m, and reserves reducing by £1.41m as noted in the statements of changes in equity on page 7. This adjustment had no impact on reported profitability in either of the periods ended 31 December 2010 or 31 December 2009 or the year ended 30 June 2010.

11. NON - CURRENT LIABILITIES

Non-current liabilities reflect the non-current element of bank loans of £11.16m (2009: £11.53m) drawn down at the end of the period as part of the Company's bank facility of £35.25m (2009: £35.81m) and £4.44m (2009: £4.44m) as a result of the reallocation of non-equity share capital from equity to debt following the introduction of IAS 32 and £0.19m (2009: £0.16m) of deferred income.

12. ANALYSIS OF NET DEBT

The reconciliation of the movement in cash and cash equivalents per the cash flow statement to net bank debt is as follows:

Total debt, including other loans of £0.13m (2009: £0.14m) and that arising from the reclassification of equity to debt following the adoption of IAS32 of £4.44m (2009 (as restated): £4.44m) amounted to £13.66m (2009: (as restated) £7.71m).

13. POST BALANCE SHEET EVENTS

Following 31 December 2010, Celtic acquired the permanent registrations of Freddie Ljungberg and Kris Commons while the registration of Jos Hooiveld was loaned to FC Copenhagen and Darren O'Dea's loan period with Ipswich Town FC was extended until the end of the season.

Celtic plc

Directors

Dr John Reid (Chairman)*

Peter T Lawwell (Chief Executive)

Eric J Riley (Financial)

Tom E Allison *

Dermot F Desmond*

Brian Duffy*

Ian P Livingston*

Brian D H Wilson *

Secretary

Robert M Howat

Directors of the Celtic Football and Athletic

Company Limited

Peter T Lawwell

Eric J Riley

Kevin Sweeney*

John S Keane*

Michael A McDonald*

* Independent Non-Executive Director

Secretary

Robert M Howat

Football Manager

Neil Lennon