Celtic V Legia Warsaw

[bandage]

Apparently loyalist thugs are attacking Celtic supporters near pubs by Stamford Bridge ahead of the game tonight. It’s a dodgy fixture really considering the right wing, national front, loyalist filth that support Chelsea. Always need to do a double take when I see Irish people wearing Chelsea jerseys, more and more cropping up lately since they started winning things. All I will say is sew it into them Celtic.

[therock67]

Celtic available at 9/1 on bet365 apparently. That's a big price for a friendly because anything could happen. Mrs Rock is out for the evening so I'll be glued to Chelsea TV for the first time ever.

[bandage]

Interesting, after sticking the last 15 europeans on Zagreb last night I may as well stick a few quid on Celtic. Think Chelsea played away to Feyenoord last night too so they'll be rotating a bit. Strachan will probably go all out for the win. How much you putting on it?

[bandage]

Some miscellaneous Celtic:

Can officially count themselves as the best team in Britain after coming away from Stamford Bridge with a 1-1 draw. Put 20 europeans on the win though so my rank rotten betting run continues. At least they gave me a bit of a run for my money.

Wilson gave an absolute masterclass on Robben. Future Celtic captain. Sno played well too apparently and Pearson put in a great shift on the left of midfield. It's been said before but surely it's worth playing Pearson left back where his direct running and energy/stamina would be good on the overlap. His defending can't be much worse than Camara or Ross Wallace and it'd finally allow Wilson to assume his natural position on a regular basis.

Tymoschuk played in the qualifying round for Shakhtar tonight so that rules out his signing. The sceptics would say he was never going to sign anyway. Nice to see Hearts beaten late on too - will enusre Celtic get the full Scottish share of CL revenue if they go out.

The Chelsea headhunters were out in force attacking the bhoys and ghirls and the Celtic end was half empty for the first half as police formed a ring around the Celtic support outside the ground to prevent them being set upon and they only managed to escort them into the ground before half time. Cracking show of defiance by the support in the second half - got well behind the bhoys and it was a cracking atmosphere. Shame my Chelsea TV link was cut off. Was really enjoying Gus Poyet's co-commentary and Cascarino's punditry skills.

[bandage]

From 'Newsnow' - I fooking hate Chelsea and all that they represent:

Under Pressure Chelsea Crowd Disorder

By The Spotter
Date: 10/8/2006

Chelsea's game against Celtic yesterday gave London's Metropolitan Police Force a major headache as they struggled to contain disturbances that were centred around the Fulham area of West London. Groups of Celtic fans were 'held' in pubs at Kings Cross as Police tried to curb the expected trouble.

The Met had to draft in extra cover and seconded a section of officers from British Transport Police. As soon as they were in position outside Fulham Broadway underground station, the officers who had previously been patrolling the area were then sent off to deal with incidents in the North End Rd.

An estimated 1000 Chelsea supporters were said to be involved in running battles and skirmishes with Celtic fans around Fulham Broadway as violence flared at or close to Bootsy Brogan's, The Slug And Lettuce and The Jolly Malster public houses.

The Chelsea supporters were joined by others from Millwall, Glasgow Rangers, Airdrie Utd and Falkirk who were there to take part in trouble on a scale that had not been seen around Chelsea for many years.

Police held a large contingent of Celtic supporters at Bootsy Brogan's until after the game had kicked-off and around 500 were taken under heavy police escort into the Matthew Harding Stand.

However, the Police decided to take them the long way, preferring to use The Shed entrance to the stadium rather than the Britannia Gate. This meant that they didn't actually get into the ground until moments before the half-time whistle sounded.

Following the game, the Fulham Rd was shut until 11.30 pm until Police were able to clear away the Chelsea supporters who had gathered to try to attack the Celtic fans. Under Police guidance, the visitors were escorted back to Fulham Broadway underground station.

Although the Police had hoped to get the Celtic fans away quietly, they were kept busy as Chelsea supporters boarded trains at Parsons Green to try to get to the Hoops via the underground system, thereby evading the Police cordons that had blocked off the back roads leading to the Fulham Rd.

Police were then kept busy until the small hours of the morning dealing with sporadic incidents in West and Central London as the Celtic fans dispersed.

Sources indicate that, as part of the agreement to get Celtic here last night, Chelsea will be playing a return fixture at Parkhead in a warm-up friendly before the start of the 07/08 season.

[bandage]

Mo Camara has joined Derby for free on a 3 year deal. There’s wild celebrations on the huddleboard after the departure of last summer’s Bosman free signing though one guy did say ‘how dare they say he cost us nothing – he cost us £20m (fooking champions league qualification last season).’ Quite funny.

[bandage]

Rock, pagey, anyone who do we want to win Rangers-Hearts on Saturday? Is a draw (a share of 2 points) better than one team winning and getting 3 points? Do we want Rangers to fall 4 points behind Celtic ahead of their visit to Celtic Park in September? All the pressure would be on PLG then and were they to go 7 points behind the huns would go ballistic. I think I do want the diet huns to win as with that psycho as chairman they’re liable to blow up around Christmas again. Heard McGeady was excellent again on Saturday, he’ll surely get a start on Wednesday with all the withdrawals.

[therock67]

I'd be thinking along the same lines. Have to be thinking we should beat Hearts comfortably over a season so I'll be hoping for 3 points for them.

McGeady seems to have played well alright - certainly did well for Petrov's goal which was another lovely move. I had a dream last night that McGeady died after heading the ball for Celtic. I was in bits.

[bandage]

Straying off topic here but I also had a dream last night that 2 of my best friends died on holiday in Australia after taking bad ecstasy. Neither of them are on holiday at the moment and neither has ever been to Australia and neither of them are druggies as far as I know. Strange stuff.

[pagey]

Any further news on Petrov? He needs to stay now. To be honest there is nothing to fear from either side. Would like Hearts to win as expect them to trail off after christmas. There seems to be trouble in the camp again already! Rangers didn't look that great from the bits I saw last night but I still see them as the only threat this season (a minor one at that) to our retention of the league.

[bandage]

rock, did you see the game on Saturday? I saw Jarosik getting a bit of stick on the huddleboard, as you know I'm sceptical enough about his ability. I also think it's crucial Petrov stays. Miller apparently missed a sitter so you have the usual negative idiots calling him a hun scumbag etc etc. Think he'll do alright myself.

[therock67]

Financial results:

CELTIC plc

Preliminary Results for the year ended 30 June 2006

SUMMARY OF THE RESULTS

Operational Highlights

- Winners of the Bank of Scotland Premierleague by 17 points

- Winners of the CIS Insurance Cup

- 24 home matches played at Celtic Park in the year (2005 - 27)

- Contract extensions awarded to Stilian Petrov, Stephen McManus,
Stanislav Varga, Neil Lennon and Shunsuke Nakamura

- Successful launch of new playing kits under the new kit agreement with NIKE

- Extension of Carling shirt sponsorship contract until 2010

- Construction of the training academy at Lennoxtown commenced

Financial Highlights

- Successful issue of 50 million new Ordinary Shares raising £14.55m net of
expenses

- Significant changes to the reporting of non equity share capital,
debt and non equity dividends following the implementation of FRS25 requiring
the restatement of prior period comparatives

- Group turnover decreased by 7.7% to £57.41m (2005 - £62.17m)

- Operating expenses reduced by 7.6% to £53.67m (2005 - £58.07m)

- Profit from operations of £3.74m (2005 - £4.10m)

- Loss before taxation of £4.22m (2005 - £8.71m as restated)

- Year end bank debt of £9.09m (2005 - £19.33m)

- Investment of £8.84m (2005 - £2.34m) in the acquisition of intangible fixed
assets

For further information contact:

Brian Quinn, Celtic plc Tel: [phone]
Peter Lawwell, Celtic plc Tel: [phone]
Iain Jamieson, Celtic plc Tel: [phone]

[therock67]

CHAIRMAN'S STATEMENT

2005/2006 was, on the whole, a good year for Celtic plc and for Celtic Football
Club. Although our early departure from European competition and from the
Tennent's Scottish Cup were disappointing, with substantial adverse effects on
income, we fought back in a manner that is typical of this Club and finished the
year on a strongly positive note.

We also strengthened our financial position and began the process of creating a
modern purpose-built training facility at Lennoxtown. The football team is being
rebuilt, as it has to if the successes of recent seasons are to be maintained.
In the week-to-week excitement and uncertainty that characterise 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.

Turnover of the group fell by 7.7%, very largely reflecting the loss of gate
receipts and TV income from European competition. Celtic played 3 fewer home
games last season and ticket sales were 15% lower as a result. Multimedia and
communications were 28% lower. Despite this, with operating expenses down by
7.6% - primarily wages and salaries for football staff - and merchandise sales
higher by a remarkable 42.5%, the company recorded a profit from operations of
£3.74m. The loss before tax, at £4.22m, was less than half the level of the
preceding year.

The successful £15m share issue in December 2005 rebuilt the balance sheet,
reducing bank debt at year end from £19.3m to £9.1m and almost doubling net
assets. We also increased investment in the acquisition of players from £2.3m to
£8.8m.

UK Accounting Standards have begun to converge with International Accounting
Standards. As part of this process Celtic has adopted paragraphs 1 to 50 of
FRS25 the impact of which is to reclassify certain financial instruments from
equity to debt.

Under FRS 25 the group's Preference Shares and Convertible Preferred Ordinary
Shares, previously defined as equity, were reclassified as a combination of debt
and equity; and non-equity dividends were in essence re-classified as interest.
As a result, net assets were £3.8m lower, net debt £4.7m higher and interest
charges £771,000 higher than would have been reported prior to the
implementation of FRS 25. In our accounts we have adjusted the prior periods'
figures for these differences in treatment to allow a meaningful comparison to
be made.

The football squad showed great resilience after a difficult start to the
season. Two long unbeaten runs in the Scottish Premier League from late August
until late November, and from then until early April, returned the championship
title to Celtic Park with the loss of only two games. No club has won the SPL
title earlier in the season, nor with a bigger margin over its nearest
competitor. The Club also won the CIS Insurance Cup for the 13th time to add to
its 40th league championship. A very special note of thanks goes to Gordon
Strachan, Garry Pendrey and Tommy Burns whose contribution has involved
combining success on the field with assembling and managing what is largely a
new first team squad. I also congratulate our first team for being commended
again this year by the SFA for achieving high standards of on-field discipline.

The under-19 and reserve teams won their leagues for the fourth and fifth
consecutive times, respectively. Celtic's under-19 team also won the Scottish
Youth Cup and an international tournament in Italy. These successes not only
contain signs of promise for the future but also testify to the work done by the
managers and support staff of the squads.

Squad restructuring is an especially challenging task in today's transfer
market. The reduction in transfer fees evident several seasons ago, as clubs in
the UK reordered their finances, has been replaced with a market that in any
other business sector would be considered overheated. Likewise, salary packages
for footballers are probably unprecedentedly high, not just for those of the
highest calibre, but also for many outside the elite category. The main driver
seems to be the substantially larger sums available to FA Premier League clubs
from the recently agreed television contract. Many clubs are spending money now
that will not be available for another year, creating echoes of the last boom
and bust in football.

Clubs are, however, better run today throughout the UK and should avoid a repeat
of the financial problems that arose a few years ago. But what is clear is that,
despite the welcome increase in the value of the Bank of Scotland Premierleague
TV contract, Celtic and other clubs in Scotland endeavouring to compete in
European competition find themselves at a serious disadvantage. This is
compounded by the distribution model for UEFA Champions League revenues which
favours the larger nations. This gives additional force to our policy of
developing our own young players.

I believe the new training ground at Lennoxtown will be an important factor in
this regard. We have secured the site and work in building the pitches,
accommodation and administration facilities has begun and is proceeding
according to plan. We hope the training complex will be completed and available
for use at the beginning of next season.

Evidence of the revival in Scottish football to which I looked forward two years
ago grew during the season just ended. For the first time in many years, the
first two positions in the SPL were not occupied by the Old Firm; and the
Tennent's Scottish Cup Final was contested by Hearts and Gretna, a team from the
Scottish Division II. As I said in my statement accompanying our 2005 Interim
Report, we see this as a healthy and welcome development. We do not expect to
lose domestic competitions and certainly do not like it when we do, but
excitement and interest in the game is created when the established order is
challenged. I also welcome the signs of revival in the Scottish national side
which has arrested the slide in performances and has begun the job of recovering
the team's historic reputation for good, winning football.

Our efforts to promote the Celtic brand continue. The squad made training trips
to Poland and the United States and played friendly matches in Japan and
England. The response by Celtic supporters, actual and potential, has been
remarkable and provides hard evidence that this policy is appreciated by our
fans everywhere. Of course these events also raise additional income for us,
which seems sensible in the light of what is happening in the television and
transfer markets; we have to explore all means of maintaining the quality of the
playing and coaching staff. Allegations of greed or short-termism miss the
point: any money generated by these games is made available to the manager for
players. All the benefits of our policy to spread the brand accrue to the
football division, no-one else. As for exhausting the players, they are
professional athletes, and the coaching staff are best placed to judge what is
acceptable in their management of resources.

We have also continued our work to eradicate objectionable behaviour at Celtic
Park and, so far as it is in our power to do so, at other football grounds where
Celtic play. I believe that the scope of our activities is not appreciated
fully; and that this work is proving effective. Sectarian and other offensive
songs and chants have all but disappeared at home matches, and we have made
proposals to the Scottish Premier League, to other SPL teams and to police
forces to try to eradicate such behaviour at away games. We have always been
serious about this. It costs Celtic a substantial amount of money to monitor
crowd behaviour in the form of additional stewarding, policing and CCTV cameras;
but we consider it our duty to do so and will continue these activities in a way
that eliminates discriminatory behaviour, without removing the passion and
excitement that comes from following Celtic Football Club.

Our support is amongst the best in the world and I have no hesitation in saying
so every year. Average home attendance in our league games last season was over
58,000, the second highest in the UK. Season ticket sales of all kind exceeded
53,000, a level we expect to be maintained this season. Celtic supporters also
account for over half of total attendance at many of our SPL away matches. Our
Club is always in demand for friendly and testimonial matches because of the
numbers we bring. The Celtic diaspora has expanded as we have re-established
ourselves in European football in recent years. Participation in the UEFA
Champions League group stage this season will, I trust, add to the reputation of
our Club.

It will, obviously, also add to our revenues and should therefore contribute to
our financial performance generally. We begin the football year with a strong
financial position, an experienced and well-qualified Board of Directors and
excellent management and staff. The rebuilding of the first team squad is well
advanced and our youth development programme is delivering positive results. I
feel confident that the success story of recent years will be further extended.

Brian Quinn CBE
Chairman 16 August 2006

CHIEF EXECUTIVE'S REVIEW

There's never a dull moment at Celtic and this past 12 months have been more
exciting and eventful than most. We regained the Bank of Scotland Premierleague
title by a huge margin, sealing the Championship against our closest rivals
Hearts several weeks before the end of the season. We also won the CIS Insurance
Cup, defeating Dunfermline in convincing style at Hampden.

To counterbalance the highs there were some disappointing lows too, falling at
the first hurdle in the UEFA Champions League qualifying stages even before the
domestic season had got underway and being knocked out of the Tennent's Scottish
Cup by an impressive young Clyde team.

Following the disappointment of our European defeat at the hands of Artmedia
Bratislava, Gordon Strachan and his new management team bounced back to achieve
domestic success with a developing and transitioning squad. Garry Pendrey and
Jim Blyth, who had worked with Gordon previously, together with Tommy Burns
brought their considerable wealth of coaching experience to Celtic.

The passing of Celtic's Greatest Ever Player Jimmy Johnstone in March saddened
everybody associated with the Club. His funeral and the tributes which followed
were extremely moving. They demonstrated the enormous respect and affection
Jimmy enjoyed and that this magnificent institution of Celtic is far more than a
football club.

[therock67]

FINANCIAL PERFORMANCE

The Club's reported retained loss of £4.22m re-emphasises the ongoing challenge
we face in matching football success with financial stability. Nevertheless, it
represents a significant improvement on 2005 and represents a most encouraging
performance, particularly in view of the lack of European football and our early
exit from the Tennent's Scottish Cup.

Group turnover has reduced by £4.76m, 7.7% to £57.41m from 2005, largely as a
result of playing three fewer home games due to our early exit from Europe. In
the current year, turnover continued to benefit from the healthy take-up of
standard season tickets, together with the opening of new retail stores.

Operating expenses, excluding exceptional operating costs, have reduced by
£4.39m, 7.6% to £53.67m, predominantly due to prudent cost control throughout
the business.

Exceptional operating expenses at £0.58m are mainly a result of accelerated
depreciation on player values, whereas last year's figure of £2.96m reflected
the costs incurred in the early termination of certain players' contracts.
The amortisation charge of £5.10m is down by 31% on last year, demonstrating the
reduced carrying value of the first team squad and continued decline in the
value of transfer fees paid in recent years.

FOOTBALL INVESTMENT

The highest profile player arriving at the Club over the last 12 months was Roy
Keane, himself a big Celtic fan and one of the true greats of the game, who
joined from Manchester United in January. Unfortunately Roy was only with us for
six months before long-term injury curtailed his playing career, but he made
quite an impression during his short stay.

Other new signings during the year included Maciej Zurawski, Artur Boruc, Adam
Virgo, Shunsuke Nakamura, Paul Telfer, Mo Camara and Mark Wilson. Since the end
of the season Derek Riordan, Kenny Miller, Jiri Jarosik, Gary Caldwell and
Evander Sno have been recruited.

Jeremie Aliadiere and Du Wei had short spells on loan at the Club during the
2005/6 season, whilst Dion Dublin joined on a short-term contract, which came to
an end in June.

Contracts were extended for a number of first team players including Stilian
Petrov, Neil Lennon, Stanislav Varga, Paul Lawson, Stephen McManus and Shunsuke
Nakamura.

High profile player departures this year have included Chris Sutton and John
Hartson, who had been great servants for Celtic. During the summer of 2005 Paul
Lambert, Rab Douglas, Jackie McNamara, Ulrik Laursen, Magnus Hedman, David
Fernandez and Joos Valgaeren left the Club as did Didier Agathe in January.

The intent of the Celtic Board is to achieve a managed ratio between turnover
and labour costs. Ongoing financial controls are in place to ensure that labour
costs are maintained at a manageable level, particularly in relation to
turnover. It is acknowledged that the football sector remains financially
difficult, although there is a desire to assist in delivering on-field success.
The ability to field a competitive side and retain control on costs remains a
challenge. The player trading activity completed during the last year has
reflected such a balanced approach and this will be continued as the
organisation moves forward. During this time, employment contracts have included
a greater element of performance related pay. It is planned that this policy be
extended and that a greater proportion of remuneration be based on football
success. The biggest challenge facing your Board remains the management of
salary and transfer costs, whilst achieving playing success in order to yield
satisfactory financial return.

The decision to appoint Ray Clarke as our Head of International Scouting stemmed
from a desire to expand the search for new footballing talent overseas. Eleven
new scouts were taken on during the last financial year, both in England and on
the Continent, and their efforts are already showing encouraging signs.

Overall, the realignment of the first team squad over the last year has resulted
in a meaningful reduction in labour costs.

FOOTBALL OPERATIONS

In winning the SPL Championship and CIS Insurance Cup, Celtic played 45
competitive matches in total during the 2005/6 season, winning 33 and losing
just 5, with 7 matches drawn. It is also pleasing to see our first team
commended again this year by the SFA for its conduct on the field, finishing in
first place for the second successive year in the SFA's annual disciplinary
analysis.

Celtic's reserve side won the SPL Reserve Championship for the fifth year in
succession, playing 22 matches and losing just 3.

In another highly successful year, Celtic's Under 19 side won their championship
for the fourth year in a row, retained the SFA Youth Cup, won the Arcobaleno
Youth Tournament in Italy and had 6 of the 22 Scotland Under 19 squad members at
the recent European Championships where Scotland reached the final. The 6 were
Ryan Conroy, Scott Cuthbert, Simon Ferry, Scott Fox, Charles Grant and Michael
McGlinchey.

In advance of the start of the new season, the first team for the third time in
recent years undertook a pre-season tour to North America, playing three
matches. This and our pre-season visit to Poland assists in expansion of the
Club and brand on a global basis. In addition, a further match against Yokohama
F. Marinos was played in Japan on 3 August, increasing the Club's profile in
Japan following the signing of Shunsuke Nakamura last year.

[therock67]

TICKET SALES

Standard Season Ticket sales reached a record 50,595 for the year, generating
income of £17.06m. In addition 100,506 tickets were sold for home SPL matches at
a net value of £1.93m.

All SPL matches at Celtic Park were virtually sold out, with a total of over 1.1
million spectators attending SPL fixtures here during the season, an average
attendance of 58,193. Supporters are now able to purchase tickets from a variety
of sources including a 24 hour telephone line, on-line through the website as
well as directly from the Ticket Office.

Following a successful pilot in the North West Lower corner stand, the Skidata
SMART Card System has been introduced to the stadium's 105 turnstiles. For the
new season all season ticket holders have been issued with a SMART card. This
significant financial investment by the Club will deliver a major safety
management improvement, which will benefit all spectators visiting Celtic Park.

YOUTH DEVELOPMENT

Over 2.5 million lottery chances were sold under the various schemes operated by
Celtic Development Pools during the period, with donations of over £1m made to
the Club for the purposes of youth development. A similar sum was paid out in
prize money to Celtic supporters from all over the country, an impressive
achievement in light of the challenging times facing small lotteries operated in
the UK.

The Paradise Windfall matchday draw, with a top prize of £7,000, enjoyed strong
average sales during the year despite there being fewer matches as a consequence
of our early exit from Europe and the Scottish Cup. Next season will see the top
prize rise to £7,500.

2005 also saw the launch of Celtic World Lotto, a new on-line marketing referral
syndicate scheme based on the National Lottery and Euromillions lottery. It
allows supporters from around the world, who cannot participate in Celtic Pools
domestic lotteries, the opportunity to support Celtic Youth Development.

In May, work commenced on the new state of the art Celtic Sports Academy and
Training Centre in Lennoxtown, which is scheduled to be operational for the
2007/8 season. It is envisaged that this will result in an increase in homegrown
talent, building on the tremendous success our youth teams have enjoyed over
recent years.

CELTIC FOUNDATION

During the year, the Club decided to consolidate its community work under the
new title of the Celtic Foundation. This important step will enable Celtic's
range of community-related activities to receive greater focus and improved
co-ordination.

The Foundation will incorporate football in the community and community coaching
programmes across both domestic and international markets, anti-bigotry
initiatives, including anti-racism and anti-sectarianism, Celtic Charity Fund,
Celtic Learning Programmes and the Learning Centre, the Old Firm Alliance
Project, Celtic Against Drugs and the Support Employment initiative.

The new structure is indicative of the importance Celtic attaches to its role in
the community. The Foundation will be working alongside key partners to deliver
on policy direction set by the Scottish Executive

CELTIC IN THE COMMUNITY

Celtic In The Community has developed into one of the leading community football
services in the UK since its inception in June 2003. It provides a coaching and
development programme to meet the needs of children, teenagers and adults. The
range of products and services has grown considerably during this time,
providing greater opportunities for all sectors of the community. The Celtic in
the Community Programme has to date attracted over half a million young people
and adults from across some of Scotland's most deprived areas. Celtic remains
committed to the Programme and has invested significantly in recruiting and
developing over 100 community coaches.

The Celtic In The Community Programme also provides a potential pathway into our
Youth Academy, with over 200 youngsters invited into the Development Centre
Programme, five of whom have already graduated to the elite Academy itself. In
Ireland the Community Programme has become firmly established in partnership
with Topflight Soccer with over 2,000 youngsters attending courses.

Internationally, Celtic In The Community has delivered courses in Canada,
Germany and Cyprus and has organised coaching clinics in Boston, Seattle,
Michigan, Alabama and Melbourne. The reputation of the Club and its supporters
provides real potential to offer new programmes in a variety of languages
throughout a number of international locations, a challenge the Celtic
Foundation will be embracing with relish. The Programme's track record is
outstanding with buy-in from the private, public and voluntary sectors.

The Community Department has been instrumental in securing grant funding to
support a number of meaningful projects tackling health issues, unemployment,
education, antisocial behaviour and social inclusion.

MERCHANDISING

This year was the first of the new NIKE contract and saw the successful launch
of a new home kit in July 2005 and record sales of NIKE training product. Our
retail store at Glasgow International Airport generated record income per square
foot sales at the kit launch.

Merchandise turnover for the year reached £14.34m, around 42.5% up on last
year's figure of £10.06m, despite playing fewer home games.

This year saw the Celtic home shopping business transfer to Kitbag Limited, who
operate equivalent services for Manchester United, Chelsea and Barcelona.
Despite some teething troubles, we are confident this arrangement will give us
the capacity to cope far better with demand going forward and offer a better
service to our customers.

We opened new Celtic retail stores in Coatbridge, Clydebank and Stirling,
bringing the total number to 14 across Scotland and Ireland. In addition we
operate concessions within Debenhams department stores in Glasgow, Inverness and
Ayr, and a further concession recently opened in Debenhams in Newry.

The flagship Celtic Superstore has undergone a major refit and re-opened in mid
July with the latest NIKE concept store look, whilst the new international white
away kit enjoyed a successful launch in July 2006.

[therock67]

MULTIMEDIA

Season 2005/06 saw a change of publisher, with CRE8 now working with the Club on
producing the Celtic View and the matchday programme. Both publications
increased in pagination - the Celtic View to 72 pages and the matchday programme
to 64 pages.

In August 2005, the Celtic View celebrated its 40th anniversary, confirming its
position as the oldest weekly club publication in football. The high standard of
design and production was maintained and enhanced further by our new publishers
as we chronicled another successful season, and the Celtic View maintained its
position as the best-selling weekly club magazine in British football.

We have developed our Celtic TV relationship with Setanta and moved from joint
venture to a licensed agreement, over which Celtic has retained editorial
control.

Overseas subscriptions to Celtic's Channel 67 Online+ service rose to over 2,000
per month, whilst the UK and Ireland service, Channel 67, held up well despite
the further advance of Celtic TV.

The Multimedia team produced several successful official events including the
Neil Lennon Dinner, John Clark Dinner, Player of the Year Dinners in Glasgow and
in Dublin, and the AGM.

We have also produced DVDs for News International as part of a sponsorship deal,
as well as end of season DVDs for the domestic and Japanese markets amongst
others.

PUBLIC RELATIONS

During the period, media coverage of Celtic-related issues has generally been
positive. Major media highlights of the season included the SPL Championship
victory and associated coverage, the sad passing of Jimmy Johnstone and the
signing of Roy Keane.

Clearly, on the negative side, failure to make the UEFA Champions League group
stage was a major media issue and the Club received substantial criticism in the
press.

The coverage achieved by Celtic's Public Relations department for events such as
kit launches, new merchandise, retail outlet openings, sponsorship announcements
and a range of Club initiatives has been excellent.

The passing of Jimmy Johnstone, as well as being a very sad event for everyone
connected to Jimmy, his family and the Club, also developed into one of the
largest media events which Celtic has ever known.

PARTNER PROGRAMME

NIKE's first year as exclusive Club kit manufacturer has been a success, helping
grow the global brand awareness of the Club. Other positive partnership
developments during the year included the extension of our contract with
T-Mobile as well as the retention of key long-standing partners Carling, MBNA,
Ladbrokes and Phoenix.

The announcement of Thomas Cook as the Official Travel Partner of Celtic
Football Club will give fans improved access to matchday breaks as well as
consolidating responsibility for all international travel for the team and
officials.

Largely as a consequence of signing Shunsuke Nakamura, our focus on the Japanese
market has enabled us to secure a number of productive new business deals. These
have included services such as broadband, 3G and DVD, as well as yielding many
sponsorship opportunities. This remains an important focus of attention for 2006
/07.

New online partners and international sponsors will help secure our income
streams during the season ahead.

STADIUM

During the course of the year, Celtic worked in close liaison with the Glasgow
City Council Safety Team for Sports Grounds to enhance the management of safety
within the stadium. The Club views this partnership approach as key to spectator
safety.

A total smoking ban was introduced at the stadium on 26 March to comply with
national legislation.

The SMART Card System is designed to improve ease of access to the stadium while
providing those responsible for public safety duties with the latest technology
available in monitoring spectator movement.

The Club will continue to place spectator safety as its highest priority.

FACILITIES

A number of customer hospitality areas were refurbished and upgraded during the
year, including the South Stand boxes and Kerrydale reception and function
suite. A new wireless hearing system was installed for the visually impaired
supporters group.

In terms of Health and Safety, audits were carried out in respect of fire
assessment and the Disability Discrimination Act and a programme of actions
implemented.

CATERING AND CORPORATE HOSPITALITY

The partnership with Lindley, who provide our concourse catering, continues to
work well.

Seasonal hospitality sales remained encouraging despite the shortfall in
European and Scottish Cup home games, whilst Conference and Banqueting and
Number 7 Restaurant sales were ahead of last year. Number 7 was particularly
successful for special events, including St Valentine's Day, Mothering Sunday
and Father's Day, while the newly refurbished Kerrydale Suite hosted a string of
successful conferences, events and dinners.

The number of visitors to the Visitor Centre was well ahead of the previous year
at just under 20,000, generating additional revenue for the Club.

SUPPORTER RELATIONS

A new Customer Relationship Management (CRM) database is under construction,
which will record all supporter, partner and customer transactions with the
Club. This will enable us to provide an improved service to supporters and
reward those who contribute most to the Club.

WORK WITHIN THE LOCAL COMMUNITY

Celtic was delighted to launch the new Celtic Learning Centre at Celtic Park in
May 2006. Built in association with Glasgow City Council, the Centre will
provide invaluable support to improve the education of young people throughout
the region.

1,175 local school children benefited from participating in Celtic Education
Programmes during the year, with a success rate of 83% on the reason for
referral. This brings the total to a remarkable 2,794 since the Programmes were
launched back in April 2004. In addition, 50 primary school pupils took part in
Celtic Learning's literacy support classes this year and 48 secondary pupils
took part in our web design lessons.

CELTIC CHARITY FUND

Celtic Charity Fund, the Club's charitable arm, again enjoyed a highly
successful year, raising thousands of pounds for a range of worthy causes. The
highlight of the year was the Celtic Charity Fund Sporting Dinner, held at
Celtic Park. Attended by the football management team, Directors and first team
players, the event was a tremendous success. The SOS Children's Villages
Campaign was the principal beneficiary but numerous other organisations
benefited from support during the course of the year.

HUMAN RESOURCES

Celtic was awarded the 'Positive About Disabled People' symbol by Job Centre
Plus during the year in recognition of working towards fulfilling its
commitments to colleagues and job applicants with a disability.

Over 90 pupils from local schools enjoyed a week of structured work experience
at Celtic Park during the year.

The hard work and contribution of all colleagues in another challenging but
successful year is once again greatly appreciated.


SUMMARY AND OUTLOOK

Much progress was achieved in the current year in improving the financial
position of Celtic. A year on year reduction in the retained loss of £4.48m
represents a real step in the right direction. Equally, it is acknowledged that
the football sector remains financially difficult. However, trading at the
beginning of the new financial year has been encouraging. Seasonal sales of
standard, premium and corporate tickets are at levels comparable with last year
and the launch of the new international kit has been very successful. Additional
revenue streams and new commercial contracts have boosted income and a more
acceptable cost structure has given us the basis of a sustainable business model
going forward. Celtic continues to enjoy relationships with a number of
international companies, including NIKE, Carling, T-Mobile, MBNA, Thomas Cook
and Kitbag, which together with the revenues generated from our partner
programme secure a sizeable proportion of our income streams going forward. In
addition, a new 4 year domestic television contract has been secured by the SPL,
which will provide year on year incremental revenue.

In the short term we can look forward with optimism to reaping the rewards of
last season's domestic success though our guaranteed participation in the
lucrative group stage of the UEFA Champions League. This participation allows us
to compete with the best teams in Europe, but also provides revenues which allow
much greater flexibility in the transfer market. The playing squad has been
strengthened during the close season and further recruitment is planned.

Further forward, implementation of the new scouting network has given Celtic
better coverage than ever before throughout Europe.

Our Academy continues to produce quality players and, together with our
strenuous efforts to retain and recruit the best, we plan to have a strong,
balanced team capable of competing domestically and in Europe. In addition, it
is planned to continue the success achieved in recent years with a number of the
internally generated youth players establishing themselves in the first team.
The completion of the new training academy at Lennoxtown should augment this
process in future years. These initiatives, together with the reduction already
achieved in football labour costs and the continued planned reduction in
amortisation costs will result in a cost base and financial position that is
sustainable.

Our objectives are to secure domestic football success and to ensure UEFA
Champions' League football at Celtic Park on an annual basis.



Peter T Lawwell 16 August 2006
Chief Executive

[therock67]

GROUP PROFIT & LOSS ACCOUNT

2006 2005
As
restated
Operations Player Total
excluding player trading
trading
£000 £000 £000 £000
Notes

TURNOVER -
group and
share of joint
venture 57,859 - 57,859 62,636

LESS SHARE OF
JOINT VENTURE (448) - (448) (468)
------- ------- ------- --------

GROUP TURNOVER 2 57,411 - 57,411 62,168

OPERATING
EXPENSES (53,674) - (53,674) (58,068)
------- ------- ------- --------

PROFIT FROM
OPERATIONS 3,737 - 3,737 4,100

EXCEPTIONAL
OPERATING
EXPENSES 3 (179) (400) (579) (2,957)

AMORTISATION
OF INTANGIBLE
FIXED ASSETS - (5,095) (5,095) (7,340)
------- ------- ------- --------

GROUP
OPERATING
PROFIT/(LOSS) 3,558 (5,495) (1,937) (6,197)
LESS SHARE OF - - - -
OPERATING PROFIT IN ------- ------- ------- --------
JOINT VENTURE

TOTAL
OPERATING
PROFIT/(LOSS) 3,558 (5,495) (1,937) (6,197)

LOSS ON
DISPOSAL OF
INTANGIBLE
FIXED ASSETS - (265) (265) (139)

LOSS ON
DISPOSAL OF
TANGIBLE FIXED
ASSETS (250) - (250) (103)
------- ------- ------- --------

PROFIT/(LOSS)
BEFORE
INTEREST AND
TAXATION 3,308 (5,760) (2,452) (6,439)
======= =======

INTEREST PAYABLE
BANK LOANS AND
OVERDRAFTS (999) (1,294)
NON EQUITY
SHARES 4 (771) (973)
------- --------

LOSS ON
ORDINARY
ACTIVITIES
BEFORE
TAXATION (4,222) (8,706)

TAXATION ON
LOSS ON
ORDINARY
ACTIVITIES 5 - -
------- --------

LOSS FOR THE
YEAR (4,222) (8,706)
------- --------

RETAINED LOSS
FOR THE YEAR (4,222) (8,706)
------- --------

LOSS PER
ORDINARY SHARE 6 (7.19p) (28.27p)

DILUTED LOSS
PER SHARE 6 (7.19p) (28.27p)

All amounts relate to continuing operations.

There were no gains or losses recognised in 2006 or 2005 other than the loss for
the year.


GROUP BALANCE SHEET

2006 2005
As restated
Notes £000 £000 £000 £000
FIXED ASSETS
Tangible assets 49,924 48,983
Intangible assets 7,593 5,253
Investment in joint venture:
------- ------
Share of gross assets in - 487
joint venture
Share of gross liabilities
in joint - (487)
venture ------- ------
Share of net assets - -
------- ------
57,517 54,236

CURRENT ASSETS
Stocks 1,901 1,987
Debtors 5,029 4,633
Cash at bank and in hand 2,914 171
------- ------

9,844 6,791
======= ======
CREDITORS - Amounts
falling
due within one year (15,481) (14,078)

Income deferred less
than one year (12,589) (11,234)
------- ------

(28,070) (25,312)
======= ======

NET CURRENT LIABILITIES (18,226) (18,521)
------- ------

TOTAL ASSETS LESS
CURRENT LIABILITIES 39,291 35,715

CREDITORS - Amounts falling
due
after more than one year (17,194) (23,987)
------- ------

NET ASSETS 22,097 11,728
======= ======

CAPITAL AND RESERVES
Called up share capital
(includes 23,450 22,948
non-equity)
Other reserve 21,222 21,222
Share premium account 14,089 -
Capital redemption reserve 1,739 1,068
Profit and loss account (38,403) (33,510)
------- ------

SHAREHOLDERS' FUNDS 7 22,097 11,728
======= ======


Approved by the Board on 16 August 2006


GROUP CASH FLOW STATEMENT

2006 2005
£000 As restated
£000
RECONCILIATION OF OPERATING LOSS TO NET
CASH INFLOW FROM OPERATING ACTIVITIES

Operating loss (1,937) (6,197)
Depreciation 1,798 1,627
Amortisation of intangible fixed assets 5,095 7,340
Provision for impairment of intangible fixed assets 400 1,402
Decrease / (increase) in stocks 86 (224)
(Increase) / decrease in debtors (308) 584
(Decrease) / increase in creditors and deferred income (159) 669
---------- ----------

Net cash inflow from operating activities 4,975 5,201
========== ==========

CASH FLOW STATEMENT

Net cash inflow from operating activities 4,975 5,201
Returns on investments and servicing of finance (Note (1,520) (1,848)
9)
Capital expenditure and financial investment (Note 9) (6,869) (4,507)
---------- ----------

Cash outflow before use of liquid resources and
financing (3,414) (1,154)

Financing (Note 9) (8,393) 954
Net proceeds of equity share capital 14,550 -
---------- ----------

Increase / (decrease) in cash 2,743 (200)
========== ==========

RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET DEBT (Note 8)

Increase / (decrease) in cash in the year 2,743 (200)
Cash (inflow) / outflow from movement in debt 8,393 (954)
---------- ----------

Change in net debt resulting from cash flows 11,136 (1,154)
Non cash movement in debt (210) (373)
---------- ----------
Movement in net debt in the year 10,926 (1,527)

Net debt at 1 July (24,891) (23,364)
---------- ----------

Net debt at 30 June (13,965) (24,891)
========== ==========

[therock67]

NOTES TO THE ACCOUNTS

1. ACCOUNTING POLICIES

The Financial Statements are prepared under the historical cost convention and
comply with applicable accounting standards.

The Financial Statements have been prepared on the same basis and using the same
accounting policies as those used in the Financial Statements for the year ended
30 June 2005 save for the implementation of the presentational aspects of FRS 25
('Financial Instruments: disclosure and presentation') in the preparation of
these annual results. Under FRS 25 the Group's Preference Shares and Convertible
Preferred Ordinary Shares, as compound financial instruments, have been
reclassified as a combination of debt and equity and non-equity dividends
reclassified as interest with a resultant reduction in Shareholders' Funds.
Consequently, net assets of the Group at 30 June 2006 are reported £3.81m below
that which would have been reported prior to the implementation of FRS 25. As a
result of the differing accounting treatment of the Convertible Preferred
Ordinary Share dividends under FRS 25, there is a requirement under the capital
maintenance provisions of the Companies Act 1985 to transfer an element of
distributable reserves into a capital redemption reserve. The comparatives for
the twelve months to 30 June 2005 have been restated to reflect the requirements
of FRS 25 and the Companies Act 1985.

The Group's Profit and Loss Account follows the Financial Reporting Guidance for
Football Clubs issued in February 2003 by The Football League, The FA Premier
League and the FA, although the turnover within Note 2 continues to be analysed
in accordance within the headings of the business operations of the Group.

2. TURNOVER

Turnover in respect of the five business operations
comprised: 2006 2005
£000 £000

Professional football 26,659 31,432
Multimedia and communications 11,889 16,604
Merchandising 14,337 10,060
Stadium enterprises 2,779 2,536
Youth development 1,747 1,536
---------- ----------

57,411 62,168
---------- ----------
3. EXCEPTIONAL OPERATING EXPENSES

The exceptional operating expenses of £0.58m (2005: £2.96m) incorporated in the
Profit and Loss account reflect £0.18m in respect of labour costs largely
arising as a result of the early termination of certain player contracts and
£0.40m in respect of a provision for impairment of intangible fixed assets. Last
year's costs of £2.96m reflected £1.56m of labour costs and other ancillary
expenses and £1.40m in respect of a provision for impairment of intangible fixed
assets, largely arising as a result of the early termination of certain player
contracts

4. DIVIDENDS
A 6% (before tax credit deduction) non-equity dividend of £544,000 is payable on
31 August 2006 to those holders of Convertible Cumulative Preference Shares on
the share register at 4 August 2006, together with the amount due in respect of
the Convertible Preferred Ordinary Shares fixed dividend of 4% of £900,622
(2005: £900,622) to those holders on the share register at 30 June 2006. A
number of shareholders have elected to participate in the Company's scrip
dividend reinvestment scheme for this financial year. Those shareholders will
receive new Ordinary Shares in lieu of cash. Following the implementation of the
presentational aspects of FRS 25 ('Financial Instruments: disclosure and
presentation') in the preparation of these annual results the Group's Preference
Shares and Convertible Preferred Ordinary Shares, as compound financial
instruments, have been reclassified as a combination of debt and equity and the
attributable non-equity dividends reclassified as interest.

5. TAXATION

No provision for corporation tax or deferred tax is required in respect of the
year ended 30 June 2006. Estimated tax losses available for set-off against
future trading profits amount to approximately £44m (2005: £42m). This estimate
is subject to the agreement of the current and prior years' corporation tax
computations with the HM Revenue and Customs.

6. LOSS PER SHARE

The loss per share has been calculated by dividing the loss for the period of
£4.22m (2005: £8.71m as restated) by the weighted average number of Ordinary
Shares of 58.76 million (2005: 30.80 million) in issue during the year. The
diluted loss per share has been calculated using the same figures as the basic
calculation. No account has been taken of share purchase options, as these
potential ordinary shares are not considered to be dilutive under the
definitions of the applicable accounting standards.

7. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

Group
2006 2005
£000 As restated
£000

At 1 July 11,728 20,434

Movements in year:
Issue of ordinary share capital 14,591 -
Retained loss for the year (4,222) (8,706))
---------- ----------

At 30 June 22,097 11,728
---------- ----------

At 30 June 2006 Non-Equity Shareholders' Funds, defined in accordance with FRS4,
amounted to £23.08m (2005: £23.08m). This relates to the Convertible Preferred
Ordinary Shares, the Convertible Cumulative Preference Shares and the associated
accrued dividends.


8. ANALYSIS OF NET DEBT


At Cash Non-cash Movement At
1 July 2005 Flow in Debt 30 June 2006
£000 £000 £000 £000

Cash at bank and in 171 2,743 - 2,914
hand -------- -------- -------- ----------

171 2,743 - 2,914
-------- -------- -------- ----------

Debt due within 1 (1,075) 10 (1,065)
year
Debt due after 1 year (23,987) 8,383 (210) (15,814)
-------- -------- -------- ----------

(25,062) 8,393 (210) (16,879)
-------- -------- -------- ----------

Net debt (24,891) 11,136 (210) (13,965)
-------- -------- -------- ----------


9. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT
2005
2006 As restated
£000 £000

Returns on investments and servicing of finance
Dividends paid (521) (554)
Interest paid (999) (1,278)
Interest element of hire purchase payments - (16)
---------- ----------

Net cash outflow from returns on investments and (1,520) (1,848)
servicing of finance
---------- ----------
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (3,035) (1,966)
Payments to acquire intangible fixed assets (4,477) (2,891)
Proceeds from sales of intangible fixed assets 643 350
---------- ----------

Net cash outflow from capital expenditure and (6,869) (4,507)
financial investment
---------- ----------
Financing
Loans (paid) / received (8,383) 956
Loan instalments paid (10) (2)
---------- ----------

Net cash (outflow) / inflow from financing (8,393) 954
---------- ----------

10. ANNUAL REPORT & ACCOUNTS

Copies of the annual report & accounts together with the notice and notes of the
2006 AGM are expected to be issued to all shareholders during September.

The financial information set out above was approved by the directors on 16
August 2006 and does not constitute the Company's statutory accounts for the
years ended 30 June 2006 or 30 June 2005. The auditors' opinion on the 2006
statutory accounts is unmodified and does not include a statement under Section
237 (2) or (3) of the Companies Act 1985. The statutory accounts for 2005 have
been filed and those for 2006 will be delivered to the Registrar of Companies in
due course.

[whyohwhy]

Christ, Rock, you trying to put us to sleep

[bandage]

Read all that there.

In summation they’re trying to juggle staying competitive by keeping costs below a certain ceiling. Going out of the Champions League in qualifying was a blow but the fall in turnover has been matched by a decrease in expenses (mainly on player salaries; linking into the fear of many supporters that the club is ‘downsizing’ by not replacing big players like Sutton etc with players of equal quality). Merchandising has rocketed (Keane and Naka signings played a part in this I guess) and the overall debt has been reduced by half to £9m through a share issue.

Quinn and Lawwell both emphasise the costs associated with football and the TV revenue disadvantages of not being in the EPL – this suggests they’re not going to spend money recklessly for the Champions League – instead emphasising the new youth academy being built and how the U-19s and reserves walked their leagues again last season.

All in all you can expect more of the same; they’re not going to break the bank for any player, they’re satisfied that the club is on a steady footing now and the aim is to make prudent signings that will enhance the team while not having an adverse impact on the club’s financial position.

From a financial perspective it all seems reasonable but I want them to splash the fooking cash!

[therock67]

To be fair they would argue that a substantia part of the decrease in expenses is because of performance related bonuses and not "downsizing" which is more reasonable. Playing in the EPL the Champions League revenue would be welcome but not as important a component of turnover because of other television income streams. In the SPL Celtic are so reliant on European cash that the salaries are tied into that. Hard to argue with the logic but I'm sure it presents difficulties when negotiating with players.

[bandage]

BBC are reporting that Celtic have their bid for Lee Naylor to £600k. What's this all about? Okay, he's left footed and can stand upright but no way is he Celtic class. Would not be happy with this one.

[therock67]

bandage said:

BBC are reporting that Celtic have their bid for Lee Naylor to £600k. What's this all about? Okay, he's left footed and can stand upright but no way is he Celtic class. Would not be happy with this one.

Been away from a computer all day, I return, see there's a post in this thread and click in frantically praying we have signed Gravesen or a top class striker. Lee Naylor was not the news I was hoping for. If that's who we sign as a left back then we should sack our entire scouting staff for not coming up with an alternative.