Celtic chairman Ian Bankier explains club's £11.5m loss as plc results released
The rarely seen Celtic chairman Ian Bankier has today provided a statement after the club’s annual plc results were released today.
The figures show an £11.5m loss before tax whilst revenue fell from just under £10m. Today’s results come from the year ending June 30th.
Celtic had a massively productive summer in which a total of 12 first-team players arrived at the club. However, the figures don’t take the summer spending into account nor do they take the big-money sales of Odsonne Edouard and Kris Ajer into consideration either.
But many fans will be concerned at the loss of revenue, with the meaty £11.5m sum the main standout figure. Bankier has moved to explain the loss in his statement, as he blamed a significant reduction in profit from player trading as the main reason.
Speaking via the official Celtic website, Bankier said: “These results for the year ended 30 June 2021 show that revenue fell to £60.8m (2020: £70.2m) and we recorded a loss before tax of £11.5m (2020: £0.1m profit before tax). This was driven by revenue attrition and significantly lower gains on player trading, compared to the prior financial year.
“In the face of this adverse swing in financial performance, we are satisfied that we took sufficient and appropriate steps to mitigate the losses and control costs in the business. Our year-end cash, net of bank borrowings, was £16.6m (2020: £18.2m). This gave us a base to invest in the summer transfer window as discussed further below.
“The persisting trading restrictions from Covid-19 translated into lost earnings and, taking account of the seasonality in our trading, this was the key factor in the widening of our losses in the second half of the financial year. Conditions have improved markedly since the year end and we were delighted to welcome our fans back in July 2021.”
Ian Bankier highlights player trading as reason for Celtic loss
Celtic of course managed to hold on to all of their key players last summer. It was no real surprise to see a loss considering the risk we took.
In fairness, you can’t say the board didn’t back the regime last season. If anything, they backed it far too much. Had the 10 been won, not many would’ve been concerned with the £11.5m loss.
However, Celtic have raked in over £30m in transfer sales stretching back to January. The likes of Ajer, Edouard, Jeremie Frimpong, and Patryk Klimala all went for decent fees. All of these figures will surely help negate the previous loss.
Meanwhile, supporters were also locked out of Celtic Park throughout the term in which the results are based upon. This has undoubtedly had an affect on merchandising sales and money spent within Parkhead on a matchday. With fans only just allowed back inside grounds over the summer, that will be another boost for the club.
So there’s likely no need to be too concerned by the losses. Despite continually failing to secure UCL football, Celtic got back into their selling habits this summer. Key players left as healthy cash figures came rolling back into the club.
But it’s nice to see Bankier have the time to come out and actually give us information. We look forward to hearing from him again next year.