Celtic returns to black with £500,000 profit

The return to profit was driven by player sales rose from nearly £7 million to £12.6 million, thanks to Virgil van Dijk’s move to Southampton.

Transfers of Teemu Pukki to Brondby and Adam Matthews to Sunderland also generated cash for the Hoops’ coffers.

Revenue rose 2 per cent to £52 million, while operating expenses were up 7 per cent to £57 million.

These performances in the transfer market off-set the cost of failing to make it through the qualifying rounds to the Champions League group stages.

The team has this year managed to achieve that and it is currently competing in the competition.

While the new results do not include the potential £30 million windfall the club could net after qualifying for this season’s Champions League group stages, Chief executive Pater Lawwell stressed the “paramount importance” of that achievement having missed out in the last two years.

The sale of players aside, the loss on operations rose from £2.2 million to £5.1 million.

Much of this was explained by the cost of football and stadium operations going up from £44 million to £47 million, while income in that category fell from £28 million to £25.1 million.

The surplus from merchandising, such as replica shirts, changed little at £4.7 million, though on higher revenue of £12.5 million.

The surplus from multimedia and other commercial activities was £3 million higher than in the 2014-15 accounts, at £12.1 million.

Chairman Ian Bankier, said: “Following two seasons in which the club did not qualify for the Group Stages of the UEFA Champions League, the increased contribution from player trading enabled the company to maintain investment in football operations and to continue to build for the future.

“The board continues to believe that the company’s self sustaining financial model provides the necessary stability to preserve the long term future of the Club and player trading remains an important element of that model”.

Mr Lawwell said: “For a club like Celtic, operating in a market where television values have fallen significantly behind our neighbours across Europe, qualification for the group stages of the UEFA Champions League is of paramount importance.

“The financial rewards allow for investment in the playing squad and physical assets, but moreover, the prestige of participating in the premier club competition in the world reinforces the reach and importance of the club to so many people around the world.

He added: “Fundamentally, Celtic is a Champions League club; our infrastructure and continued investment reflect that. At a time when the direction of travel in European football is towards elite level clubs, we must remain at the forefront of developments in the game domestically and across Europe.

“Celtic should be at the top of the game in Europe and the board and I have that objective as a priority. We continue to work tirelessly on seeking to improve the football environment in which the club operates.”