Source: Team_Talk
Bhoys reduce their bank debt
Celtic chairman John Reid hailed Neil Lennon as at the club reported a return to profit and a reduction in bank debt of more than £5million.[LNB] Celtic's preliminary financial results showed a profit of £102,000 for the year ending June 30, which followed a loss of more than £2million in the previous 12 months.[LNB]The club reduced their net bank debt to £530,000, well down on the previous year's total of £5.85million and the half-year figure of £9.1million that Celtic subsequently reported.[LNB]Reid explained the higher debt totals had been planned to fund Lennon's squad rebuilding last year, while the reduction was designed to maintain financial stability and independence.[LNB]The profit came despite a fall in group revenue of more than £9million to £52.6million, with Reid pointing to a number of factors including the unsuccessful reign of Tony Mowbray in the previous season, when Celtic failed to win a trophy.[LNB]Celtic also had just two European home games, against Braga and Utrecht, but their finances were helped by a near-10% reduction in operating expenses to £52.5million.[LNB]Reid described the results as "outstanding" in the circumstances, particularly after what he had termed a "disappointing" half-yearly performance in February.[LNB]Although Celtic recorded a £7.1million profit in those six months, that was largely down to the £9.5million sale of Aiden McGeady to Spartak Moscow with the club warning then that the second part of the season would be "more challenging".[LNB]Celtic invested more than £10million on transfers in the period, more than £3million less than during Mowbray's reign, and Reid was delighted that the club had balanced the books in the process.[LNB]In his final annual statement as chairman, Reid said: "Football was not any more immune from the recession than any other activity.[LNB]"Our participation in Europe was shortlived, playing only two home games rather than the five of the preceding year.[LNB]"Those challenging economic conditions and the poor football performance in season 2009-10 undoubtedly had a detrimental effect on our revenues.[LNB]"Turnover decreased by 14.8% to £52.56m, affected by the reduction in European matches and the ticket and broadcasting revenues that they generate, and a decline in merchandising sales in a difficult retail market."[LNB]Reid added: "Against this background the achievements of everyone at the club - management, staff and our faithful supporters - appear even more outstanding.[LNB]"To achieve and maintain financial stability, and attain a very manageable debt position, while continuing to invest significantly in strengthening the football squad and generate profit in the football sector in Scotland in these conditions is highly commendable.[LNB]"And yet as our annual report shows, as a result of these efforts and our activity in the transfer market we managed to turn last year's loss into break-even, to reduce our debt considerably and still invest a substantial amount in new players."[LNB]Reid referred to threats made against Lennon when he praised the manager for the "remarkable strength and character" shown in his first full season in charge, which yielded a Scottish Cup success with Celtic runners-up in the other two domestic trophies.[LNB]"At Celtic our expectations of a manager are so high that it is easy to overlook just how challenging that job is," the former Home Secretary said.[LNB]"In his first full season as a manager Neil has succeeded in restoring a pride and passion to our play, showcasing emerging talent and uniting our supporters."[LNB]Reid argued that would be a major achievement in any normal environment but in a context of death threats and explosive devices, among other challenges, it was "nothing short of extraordinary".[LNB]The Labour peer added: "The commitment Neil and his family have shown this season, and that accorded to him by fans, is what makes this club truly special."[LNB]The chairman, who will stand down at the club's next AGM, admitted Celtic's scouting network and youth development department were becoming increasingly important in the absence of lucrative broadcasting deals.[LNB]The likes of Israel midfielder Beram Kayal and Honduras left-back Emilio Izaguirre won great acclaim for their performances after being signed last summer for a combined fee of around £2million, and were subsequently linked with significantly more expensive moves.[LNB]Celtic's balance sheet reveals a profit of almost £6million in their "investing activities" as opposed to a loss of more than £7million the previous year.[LNB]As well as McGeady, Celtic also sold the likes of Stephen McManus, Artur Boruc and Marc-Antoine Fortune last summer and have been far quieter in the transfer market this year.[LNB]Kelvin Wilson and Adam Matthews both arrived on free transfers while defender Victor Wanyama was signed for about £900,000.
