CELTIC football club's financial fortunes are mirroring the team's recent on the field performance, with the soccer club's interim results showing a much improved position.
Celtic, which is part owned by Mr Dermot Desmond, said it made an after tax profit of £929,000 sterling for the six months to the end of December, compared to a loss of £210,000 for the same six month period in 1994. Operating expenses, which include players' wages, increased from £4.77 million to £6.83 million.
Turnover grew from £5.25 million to £8.54 million due mainly to a record level of pre season ticket sales, according to Celtic chairman, Mr Fergus McCann.
Although a smaller proportion of home fixtures will be played in the second half of the financial year, Mr McCann said he was "nevertheless optimistic that our full year results will be satisfactory to all shareholders".
Mr Desmond, who joined the board of Celtic last May, paid £2 million for a stake of close to 10 per cent in the Glasgow club. Several hundred small Irish shareholders are also thought to have participated in the club's £9.4 million share offer.
Turnover has increased in all are as of Celtic's activities, according to Mr McCann, with revenue boosted by higher date receipts, income from the return to European competition and "better commercial opportunities following the return to Celtic Park".
Despite the impressive return to profit, the chairman has told shareholders that a dividend will not be paid as the income is to be reinvested "in strengthening the player pool and redeveloping Celtic Park".
During the past six months, Celtic has spent £3.7 million on four new players, while a number of squad members who no longer feature in the plans of manager
Tommy Burns have been sold.
However, Mr McCann warned that "there is continuous pressure to increase player salaries which are rising alarmingly and represent a major share of costs". He also noted that the Celtic board viewed the recent decision in the Bosman case regarding player transfers "very seriously".
The club is currently studying the ramifications with its advisers and the football authorities in order "to establish a clear way forward in relation to player transfers and the consequent accounting treatment".
On the field, Celtic have lost on four of their last 36 competitive matches. This form which has propelled the club to second place in the Scottish Premier League and into the quarter finals of the Scottish Cup, has had a huge impact on the financial results, according to Mr McCann.
"The success of the team on its return to Celtic Park, together, with improved spectator facilities, has resulted in a higher average match attendance over the last year," he said.
The new north stand, which, holds 26,000 spectators, many in heated, padded armchair seats, was completed in December and work on the east stand began last month. Upon completion, Celtic Park will have 47,000 permanent seats.
