Scottish Premiership champion Celtic has recorded a five-year record profit before tax of £9.74 million for the 12 months ending June 30, 2013, as the club was boosted by its run in the UEFA Champions League last season.
Celtic reached the last 16 of the Champions League in 2012-13, an achievement that contributed to its group revenue rising 48% year-on-year to £75.8 million. By contrast, the Glasgow giant last year reported an annual loss of £7.37 million and an increase in debt of more than £2 million, as it competed in the Europa League.
Celtic’s financial success has allowed it to erase its bank debt. Celtic had £3.76 million in the bank at the end of the current period following a bank debt of £2.77 million 12 months earlier. The club has also made it through to the group stages of this season’s Champions League and chairman Ian Bankier spelt out the importance of the competition to its finances. “The momentum we build by competing in Europe at this level in two successive years is considerable, both financially and in terms of our player pool development strategy,” he said.
Bankier added: “This year demonstrates, above all, the impact that football success brings to Celtic plc in its current shape. The predominant focus of the board is to sustain a robust structure that can benefit fully from the fruits of playing success, yet withstand the economic pressures of today’s football environment in Scotland. The two key elements of that structure are responsible financial management for the long term, coupled with an intelligent player pool strategy.”