Celtic reports debt cut

Despite its defeat in the Champions League, Scottish Celtic announced cut its debt this past fiscal year.

Turnover fell by 7.7 percent to GBP 57.41 million, with losses of GBP 4.22 million, down from GBP 8.7 million the previous season.

The club reduced debt to GBP 9.09 million from 2005's GBP 19.33 million. Of that reduction, more than GBP 4 million can be tied to cutting the wage bill. Also, GBP 14.5 million was raised through a share issue, but GBP 8.5 million remains to be allocated to the Lennoxtown academy, due to be completed next August.

The figures were revealed by chief executive Peter Lawwell, who would not directly reveal how this would translate into manager Gordon Strachan's ability to improve the club.

"These are very good," Lawwell said. "Gordon knows what his transfer budget is and we are still on track to bring players into the club.

"We have grown the revenue and have reduced our outgoings and our objective has always been to have a sustainable business. We have halved our losses when it comes to the running of the club - last season we lost well over GBP 8 million and that is down to GBP 4 million. We achieved that while also making sure we won back the SPL and despite the fact we went out of the Champions League at the first hurdle and the Scottish Cup in January.

Chairman Brian Quinn also found the numbers to be positive.

"It was, on the whole, a good year for Celtic plc and for Celtic Football Club," Quinn said. "In the week-to-week excitement and uncertainty that is 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.

"The successful GBP 15 million share issue in December 2005 rebuilt the balance sheet, reducing bank debt from GBP 19.3 million to GBP 39.1 million, almost doubling net assets."

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.