Celtic plc posted encouraging results for the financial year despite a decrease in turnover.

Turnover at the group fell by 7.7 per cent to £57.4 million (€85 million), largely due to the loss of gate receipts and television income from missing out on the Champions League and UEFA Cup football last season.

Businessman Dermot Desmond is the club's largest shareholder, with a 41 per cent stake.

But Celtic bounced back from their qualifying defeat by Artmedia Bratislava to reduce the debt significantly to £9.09 million, compared to £19.33 million for 2005.

Celtic, who won the Bank of Scotland Premier League by 17 points in addition to the CIS Insurance Cup, also saw operating expenses reduced by 7.6 per cent to £53.67 million and profits from operations of £3.74 million.

They also handed out new contracts to Stilian Petrov, Stephen McManus, Stanislav Varga, Neil Lennon and Shunsuke Nakamura.

The Glasgow club saw construction commence on the new training academy at Lennoxtown, the successful launch of new playing kits under a new agreement with Nike, and the extension of the Carling shirt sponsorship contract until 2010.

The successful £15 million share issue in December 2005 helped reduce the bank debt at year end.

Celtic chairman Brian Quinn said: "It was, on the whole, a good year for Celtic plc and for Celtic Football Club.

"Although our early departure from European competition and the Tennent's Scottish Cup were disappointing with substantial adverse effects on income, we fought back in a manner that is typical of this club and finished the year on a strongly positive note.

"We also strengthened our financial position and began the process of creating a modern purpose-built training facility at Lennoxtown.

"The football team is being rebuilt, as it has to be if the successes of recent seasons are to be maintained," he said.

"In the week-to-week excitement and uncertainty that characterise football, I believe it is crucial to have a clear idea of longer-term objectives and a sense of direction that goes beyond the febrile environment of the modern game."

Quinn added: "The successful £15 million share issue in December 2005 rebuilt the balance sheet, reducing bank debt at year end from £19.3 million to £9.1 million and almost doubling net assets. We also increased investment in the acquisition of players from £2.3 million to £8.8 million."