Celtic, the Glasgow football club in which the financier Mr Dermot Desmond holds a shareholding of just under 14 per cent, said yesterday its operating profits rose by 33 per cent to £6.75 million sterling in the year to the end of June.

The club, which has thousands of Irish shareholders, said turnover rose to £33.8 million sterling, an increase of 21 per cent.

However, profit before tax was just £550,000, as net gains from player sales shrank to just £347,000 from £7.41 million a year earlier.

Celtic said that wage costs rose last season by more than 16 per cent to £14.5 million. The club warned that wage costs would increase substantially in the coming year following moves to strengthen the first team.

Mr Fergus McCann, Celtic's majority shareholder, stepped down as chairman and managing director earlier this year.

He has said he wants to sell his shareholding to existing shareholders and season ticket holders.