Celtic Football Club, which is 14 per cent-owned by financier Mr Dermot Desmond has scored its best result of the season after announcing record profits despite spending millions on nine new players in an effort to end Rangers domination of the Scottish league.

Ticket sales, broadcasting fees, publicity, merchandise and catering all helped boost the team's turnover from July 1st to December 31st by 24 per cent from £12.5 million sterling to £15.5 million. Pre-tax profits jumped from £2.1 million to £7.6 million but no dividend was given.

The premier team, now tied in first place with Hearts and Rangers on 49 points, hopes to halt Rangers from taking its 10th league title in a row. Danish defender Mr Marc Rieper and midfielder Mr Craig Burley are just some of the signings bidding to lift the Scottish Coca Cola Cup holders to league glory.

And the club, which drew 1-1 with Hearts yesterday, is less than a fortnight away from opening its new South West Stand at Celtic Park in a move boosting crowd capacity by 2,650 at its next league game against Kilmarnock. This came after the club opened its Celtic Superstore at Celtic Park, a visitor centre and museum.

But Celtic, which is now winding down its transfer programme, said costs soared on the back of £12 million in transfer fees and higher salaries.

The AIM-listed group said it would continue its ambition for success but would remain financially prudent while saying the rest of the sector was showing signs of a need for greater financial discipline.

However, higher operating costs experienced in the first half of its financial year would apply to its second half after high salary costs.

Chairman Mr Fergus McCann said: "Consequently in the second half of the year there will be a reduction in income, and the performance of the club in the Scottish Cup and the net effects of any transfer transactions will largely determine whether any additional profits will be generated in the period."