Celtic Regulatory News (CCP)

CELTIC plc (the "Company")

Registered number SC3487

INTERIM REPORT FOR THE SIX MONTHS TO 31 DECEMBER 2013

Operational Highlights

· Progression to group stages of the Champions League.

· Currently unbeaten in the SPFL Premiership and top of the league.

· Breaking long standing record for number of consecutive clean sheets.

· Academy continues to be successful; over 70 internationalists at Under 21 level and below.

· Multi-million pound investment in the area around Celtic Park, benefiting supporters and the local community.

· Launch of the Kerrydale Bar, Café 1888 and new family stand.

· Installation of a full stadium Wi-Fi network with accompanying matchday application.

Financial Highlights

· Revenue decreased by 11% to £44.8m (2012: £50.1m).

· Operating expenses decreased by 7% to £34.3m (2012: £37.0m).

· Profit from trading before asset transaction and exceptional operating expenses of £10.5m(2012: £13.1m).

· Exceptional costs of £2.3m (2012: nil).

· Profit on disposal of intangible assets £16.5m(2012: £5.2m).

· Profit before taxation of £21.3m(2012:£ 14.9m).

· Period end net cash at bank of £5.7m (2012: £0.1m net bank debt).

· Investment in football personnel of £5.0m (2012: £4.7m).

· 16 home fixtures (2012: 19).

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CHAIRMAN'S STATEMENT

I am pleased to report on our financial results for the six months ended 31 December 2013. The introductory page to these interim results summarises the main highlights.

We have enjoyed another highly successful period on the football pitch. As we report today, we are comfortably at the top of the SPFL Premiership, having enjoyed an excellent run of results in the league, remaining unbeaten and having broken a long standing record for the number of consecutive clean sheets.

Having won the Scottish Premier League title in season 2012/13, we qualified once again for the group stages of the UEFA Champions League. Our reputation as a leading club in European football has been enhanced by that success. These results reflect the financial benefit of participation in the group stages of the Champions League for a second year in a row, coupled with successful management of the playing squad.

Revenue dropped for the period to £44.8m (2012: £50.1m). The decrease compared to last year's results at this stage largely reflects the impact of our decision to make the £100 reward for adult season ticket packages, together with playing three fewer home matches in the period and accumulating fewer points in the Champions League group stages, resulting in reduced UEFA distributions.

Operating expenses for the period decreased by 7% to £34.3m, leading to a profit from trading, before asset transactions and exceptional operating expenses of £10.5m (2012: £13.1m). Exceptional operating expenses in the period of £2.3m relate to an impairment charge.

Prudent investment in, and management of, our playing squad is a key component of the club's strategy. In line with that strategy, we continued to invest in the playing squad, with £5.0m invested, an increase from last year (2012: £4.7m). Our profit on disposal of intangible assets of £16.5m, in comparison to a profit of £5.2m last year, largely reflects the transfers of Gary Hooper, Victor Wanyama and Kelvin Wilson. Together with ongoing investment in our Academy, the identification and creation of Champions League quality players remains fundamental to Celtic. Following the end of the period, during the 2014 January transfer window, further investment was made, securing the signing of the highly rated players Holmbert Fridjonsson, Stefan Johansen and Leigh Griffiths.

As at 31st December 2013, net cash at bank was £5.7m. Our profit before taxation for the half year was £21.3m, an increase of over 40% on the same period last year.

There is little doubt that this is a robust set of interim results and they reflect a club that is in excellent financial health. The strategy of the Board is unchanged; our overwhelming priority is to win the SPFL Premiership and to qualify for the group stages of the UEFA Champions League and beyond; we seek to give our manager the best tools for the job, within the constraints of our economic environment; we aim to create value by investing in our youth academy and by acquiring players that we can develop; and in terms of the finances we seek to live within our means. All of this helps us prepare for the future and the economic uncertainties, which have had such a devastating effect on many other football clubs.

Our Chief Executive, Peter Lawwell, is serving as a Director of the Scottish FA, while our Financial Director, Eric Riley, serves as a Director of the Scottish Professional Football League. The structural and financial difficulties that face Scottish football are well documented and it is fair to say that the outlook for the game is challenging. I am gratified that Peter and Eric can make a contribution to overcoming the obstacles that lie ahead.

Looking forward to the second half, as with previous years, trading performance in the remaining months of this financial year will not be at the same level as that in the first six months (or the comparable period in 2013), with fewer home matches scheduled, no Champions League participation and lower gain on player sales.

CHAIRMAN'S STATEMENT

A key focus for the year will be our continued investment in Celtic Park, not only for our own supporters' experience on match days, but also for the benefit of the wider community. In January we opened a dedicated facility for disabled supporters and, throughout the year, we look forward to delivering further projects, including development of our Wi-Fi system, safe standing areas and the new landscaped and public realm area to the front of Celtic Park. In addition, we will continue to support Celtic FC Foundation in its very important charitable work, which provides assistance in key priority areas of health, equality, learning and poverty.

This has been another very active spell for the club and my profound thanks and appreciation go to Neil Lennon and his backroom staff, all of the players, executive management and staff, who are committed to ensuring that Celtic is a world class football club. Most importantly, I pay tribute to the fans, whose support, encouragement and dedication is second to none.

Ian P Bankier 7 February 2014

Chairman

INDEPENDENT REVIEW REPORT TO CELTIC PLC

Introduction

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 2013 which comprises the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Consolidated Statement of Changes in Equity, the 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.

Directors' responsibilities

The interim report, including the financial information contained therein, is the responsibility of and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on AIM which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the Company's annual accounts having regard to the accounting standards applicable to such annual accounts.

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.

Our report has been prepared in accordance with the terms of our engagement to assist the Company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on AIM and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability

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 2013 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on AIM.

BDO LLP

Chartered Accountants and Registered Auditors

Glasgow

United Kingdom

Date 7 February 2014

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED BALANCE SHEET

Approved by the Board on 7 February 2014

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONSOLIDATED CASH FLOW STATEMENT

NOTES TO THE FINANCIAL STATEMENTS

1. BASIS OF PREPARATION

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 2014 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 2013 and to 31 December 2012 has not been audited. The comparative figures for the year ended 30 June 2012 are extracted from the Group's audited financial statements for that period as filed with the Registrar of Companies. They do not constitute the statutory accounts within the meaning of s434 of the Companies Act 2006 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 Company has considerable financial resources available to it, together with established contracts with a number of customers and suppliers. As a consequence, the Directors believe that the Company is well placed to manage its business risks successfully despite the continuing uncertain economic outlook. The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing these interim financial results.

The auditor has reviewed this Interim Report and their report is set out earlier in this document.

2. REVENUE - SEGMENTAL INFORMATION

3. FINANCE COSTS

NOTES TO THE FINANCIAL STATEMENTS

4. 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.

5. EARNINGS PER SHARE

Basic earnings per share has been calculated by dividing the profit for the period of £21.3m (2012: £14.9m) by the weighted average number of Ordinary Shares in issue 91,337,562 (2012: 90,364,753). Diluted earnings per share as at 31 December 2013 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, in accordance with IAS33 Earnings Per Share. As at December 2013 and December 2012 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.

6. INTANGIBLE ASSETS

7. RECEIVABLES

The increase of £8.7m in the level of receivables from 31 December 2012 to £20.1m is primarily a result of an increase in amounts due in instalments from player sales conducted in previous transfer windows.

NOTES TO THE FINANCIAL STATEMENTS

9. NON - CURRENT LIABILITIES

Non-current liabilities reflect the non-current element of bank loans of £10.0m (December 2012: £10.4m, June 2013: £10.2m) drawn down at the end of the period as part of the Company's bank facility of £32.8m (December 2012: £33.6m, June 2013: £33.2m) and £4.3m (December 2012: £4.4m, June 2013: £4.4m) as a result of the reallocation of non-equity share capital from equity to debt following the introduction of IAS 32 and £0.1m (December 2012: £0.1m, June 2013: £0.1m) of deferred income.

10. ANALYSIS OF NET CASH AT BANK / (NET BANK DEBT)

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

Total net cash, including other loans of £0.1m (2012: £0.1m) and that arising from the reclassification of equity to debt following the adoption of IAS32 of £4.3m (2012: £4.4m) amounted to £1.2m (2012: £4.7m net debt).

NOTES TO THE FINANCIAL STATEMENTS

11. POST BALANCE SHEET EVENTS

Following 31 December 2013, Celtic acquired the permanent registrations of Holmbert Fridjonsson, Stefan Johansen and Leigh Griffiths. The registration of Joseph Ledley was sold to Crystal Palace, the registration of Tomas Rogic was loaned to Melbourne Victory and the registration of Mohamed Bangura was cancelled by mutual consent.