Interim Results - 6 Months to 31 December 1999

Celtic PLC
10 February 2000


           INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 1999


HEADLINES

* Revenues achieve underlying growth of 23.9%
* Merchandising beats trend with 35% uplift
* Broadcasting and publishing revenues surge to 55.5% increase


HIGHLIGHTS

* Turnover up 14.6% to £22.1m (1998 : £19.3m)
  -    Only 14 home games played in the period (1998 : 16 games)
  -    Estimated impact is reduction in turnover of £1.8m
  -    Underlying growth rate was 23.9%
  -    Significant increase of 35.3% in merchandising turnover
  -    Broadcasting and publishing revenues up 55.5% as a result of increased
       interest in Europe and overseas.

* Profit from operations down 9.5% to £4.3m (1998 : £4.8m)
  -    Playing of fewer home games led to an estimated reduction of £1.3m.

* Operating expenses up 22.5% to £17.8m (1998 : £14.6m)
  -    Exacerbated by long-term injuries to key players
  -    £9.98m (1998 : £6.02m) was invested in strengthening the first team
       squad with the signing of Berkovic, Petrov, Tebily, Kharine, Petta,
       Bonnes and Wright
  -    New extended contracts awarded to Lambert, McNamara and Mahe
  -    £4.45m invested since the period end in acquiring Rafael Scheidt
  -    Amortisation charge increased by £925,000
  -    £1.95m invested in LSV screens and the development of CelticTV.
  
* Profit on ordinary activities before tax of £0.7m (1998 : £2.0m)

* In the Scottish Premier League the team is in a challenging position to
  secure European qualification for next season, and is in the semi-final of
  the CIS League Cup.

* Major five-year kit sponsorship deal with Umbro announced following the
  period end.  Along with a joint strategy to maximise and realise the
  potential of the Celtic brand worldwide.

Commenting on the results, Allan MacDonald, Chief Executive, said:

'Our investment strategy of strengthening our first team squad is part of a
process to create a firm foundation for achieving our ambitions of football
success, business growth and the realisation of the international potential of
the Celtic brand.'



For further information contact:

Allan MacDonald, Chief Executive                0141 551 4206
Eric Riley, Financial Director                  0141 551 4201
Luisa Winnett - Gavin Anderson and Company      0141 551 4306

Marc Popiolek / Lindsey Harrison
Gavin Anderson and Company                      020 7457 2345



CHAIRMAN'S STATEMENT

FINANCIAL RESULTS

Turnover increased by 14.6% to £22.1m. Operating expenses rose by 22.5% to
£17.8m. Increased costs are, in the main, directly related to the
implementation of the plan to develop the football operation. The increase was
exacerbated by the exceptional action the club had to take in response to
long-term injuries to key players.  The net effect of these factors was a
profit from operations of £4.3m compared with £4.8m in the comparable period
the previous year which represents a reduction of 9.5%.  These results were
achieved after playing 14 home games compared with 16 in the first half of
1998/1999, the estimated impact of which was a reduction in turnover and
profit from operations of £1.8m and £1.3m respectively.

The planned investment in the first team squad increased the amortisation
charge by £925,000 compared with the same period last year.  Net profit on the
sale of players' registrations includes one transaction concluded just after
the end of the period under review.  After absorbing interest of £290,000 the
profit for the period was £748,000.  This is down £1.3m on the previous year,
which equates to the estimated impact on profit of playing fewer home games.


FOOTBALL

The Board has instigated significant changes in the football operations
management team and made a substantial investment in the first-team playing
squad.  Improvement is variable and delivery of good and effective team play
is inconsistent. In the Scottish Premier League, the team is in a challenging
position to secure, through this competition, European qualification for next
season.  The team has reached the semi-final of the CIS League Cup.

Following success in the qualifying and first rounds of the UEFA Cup, the
fortunes of the team were severely dented following a traumatic leg break
sustained by Henrik Larsson, Scotland's Player of the Year, in the first leg
of the second round tie against Olympique Lyonnais.  The team ultimately lost
the tie 2-0 on aggregate.  Ian Wright, the experienced England
internationalist, was immediately signed to provide striking cover for the
remainder of the season.

In pursuing its objectives for sustained success in domestic and European
competitions, Celtic has made further changes to the squad profile.   During
the winter break, Rafael Scheidt, the Brazilian full international central
defender aged 23, was signed on a five-year contract.  Prior to this, Scottish
internationalists Paul Lambert and Jackie McNamara and French left wing back
Stephane Mahe signed contract extensions.  Four members of the first team
squad moved on.  Craig Burley and Harald Brattbakk were transferred to Derby
County and FC Copenhagen respectively.  Veteran defenders Tosh McKinlay and
Enrico Annoni were freed by Celtic to pursue their careers with other clubs.


INVESTMENTS

The investment policy to focus primarily on increasing the quality of the
first team squad has resulted in an investment of £9.98m (1998 - £6.02m).
This investment is directed at achieving greater success in Europe with the
incremental financial rewards which this will realise. It is from this
platform that future ancillary business growth, consistent with the potential
of the Celtic brand, can also be achieved.  Implementation of this policy
continued following the period end with the acquisition of Rafael Scheidt for
£4.45m.

Player facilities at Celtic Park were enhanced in the early part of the season
by the completion of a new sports science centre incorporating a high quality
gymnasium.

The installation of two new LSV screens at each end of the stadium combined
with a number of smaller supplementary screen units provided the opportunity
to enhance matchday spectator experience through the showing of pre and post
match programmes produced by CelticTV.  CelticTV has also organised the
transmission and reception at Celtic Park of Celtic away matches, six of which
were shown in the period to a total paying audience of 45,469.  The investment
in the period to date of £1.95m in this communication technology and
associated infrastructure is laying the foundations for the future growth of
Celtic's multimedia and communication activities.

These investments in players and fixed assets have increased borrowings to
£9.0m at 31 December 1999.  Indebtedness will increase in the second half of
the financial year within the company's bank facility as detailed in note 12
to the financial statements.


FUTURE OUTLOOK

Turnover growth should be sustained in the second half of the year.  The cost
of the football operation will continue at higher levels due to the investment
in the squad, the opportunity taken to extend existing contracts and the
remedial and short term action taken to offset the impact of long-term
injuries.  As a result, profit from operations will fall short of last year.
Profit, if any, for the year will be dependent on progress in the domestic
competitions and the timing and impact of player trading.

Following the period end, Celtic announced the largest sponsorship deal in its
history with the signing of a five-year partnership agreement with Umbro.
Celtic and Umbro have had an ongoing relationship for over 25 years.  In
addition to the traditional direct sponsorship benefits, a major part of the
agreement embraces a joint strategy to maximise and realise the potential of
the Celtic brand opportunities worldwide.

In a broader context, your Board is confident that a developed, global Celtic
brand with its associated intellectual property will enable the company to
take full advantage of the rapid changes taking place in the kindred worlds of
sport, entertainment and communications.


Frank O'Callaghan
Chairman
    

                              Celtic plc
                         Group Profit and Loss Account

                                 6 months to                    12 months to
                                 31 December                         30 June
               Notes     1999 Unaudited  1998 Unaudited         1999 Audited 
                                  £'000           £'000                £'000
Turnover           3             22,148          19,328               33,840
Operating                      
Expenses                       (17,836)        (14,562)             (27,086)
                             ----------      ----------           ----------
Profit from                                                                 
Operations                        4,312           4,766                6,754
                                                                            
Amortisation                                                                
of intangible                                                               
fixed assets                    (3,911)         (2,986)              (6,088)
Net gain on         
fixed assets       4                637             415                  347
                             ----------      ----------           ----------
Operating Profit                  1,038           2,195                1,013
                                                                            
Interest                                                                    
receivable and                                                              
similar income                        -               -                    -
Interest                          
payable and                  
similar charges                   (290)           (167)                (463)
                             ----------      ----------           ----------
                                                                            
Profit on                                                                   
ordinary                                                                    
activities                          
before taxation                     748            2028                  550
Tax on profit    
on ordinary                           
activities         5                  -               -                    -
                             ----------      ----------           ----------
Profit for the                                                              
period                              748            2028                  550
Preference                           
dividend           6                  -               -                (533)
                             ----------      ----------           ----------
Retained                           
profit for the                     
period                              748            2028                   17
                                   ====            ====                 ====
Earnings per       7                                                          
ordinary share                    1.54p           6.07p                0.06p
                                   ====            ====                 ====
Diluted            7                                                          
earnings per                      1.57p           4.26p                1.16p
share                              ====            ====                 ====
                                                                            
All amounts relate to continuing operations


There were no gains or losses recognised in any of the above results other
than the profit for the period



                                  Celtic plc
                              Group Balance Sheet

                                    31 December                      30 June
              Notes      1999 Unaudited    1998 Unaudited       1999 Audited
                                  £'000           £'000                £'000
Fixed Assets                                            
Tangible          8              46,607          43,759               43,773
Assets
Intangible        9              17,048          17,483               13,538
Assets
                             ----------      ----------           ----------
                                 63,655          61,242               57,311
Current Assets
Stocks                            1,018             752                  532
Debtors          10               5,594           2,337                3,556
Cash at bank                                                                
and in hand                         962              69                1,645
                             ----------      ----------           ----------
                                  7,574           3,158                5,733
Creditors -      11                                                           
Amounts                                                                     
falling due                                                                 
within one year                 (10,525)         (9,433)              (7,148)
Income                                                                      
deferred less                                                               
than one year                   (7,907)         (5,319)              (8,525)
                             ----------      ----------           ----------
Net Current                                                                 
Liabilities                    (10,858)        (11,594)              (9,940)
                             ----------      ----------           ----------
Total Assets                                                                
less Current                                                                
Liabilities                      52,797          49,648               47,371
                                                                            
Creditors -                                                                 
Amounts                                                                     
falling due                                                                 
after more       12             (9,377)         (5,045)              (4,779)
than one year
                             ----------      ----------           ----------
Net Assets                       43,420          44,603               42,592
                                   ====            ====                 ====
Capital and                                                                 
Reserves
Called up                                                                   
equity share                                                                
capital                                                                     
(includes non-                   11,391          11,390               11,390
equity)
Share premium                    17,440          17,361               17,361
Profit and                                                                  
loss account                     14,589          15,852               13,841
                             ----------      ----------           ----------
Shareholders'                                                               
funds                            43,420          44,603               42,592
                             ==========      ==========           ==========

Approved by the Board on 9 February 2000



                                  Celtic plc
                           Group Cash Flow Statement

                           6 months to 31 December      12 months to 30 June
                        1999 Unaudited    1998 Unaudited         1999 Audited 
                                 £'000             £'000                £'000
Reconciliation                                           
of operating profit
to net cash inflow
from operating activities
Operating profit                  1,038           2,195                1,013
Depreciation                        524             487                  974
Amortisation                      3,911           2,986                6,088
Net gain on sale of
intangible fixed assets           (637)           (415)                (347)
Grants release                        -               -                  (1)
Increase in stocks                (486)           (257)                 (37)
Increase in debtors               (406)           (379)              (1,520)
(Decrease)/increase               (232)         (2,414)              (1,707)
creditors
                             ----------      ----------           ----------
Net cash                                                                    
inflow from                                                                 
operating                         3,712           2,203                7,877
activities
                             ==========      ==========           ==========
Cash flow statement
Net cash inflow from                                                          
operating activities              3,712           2,203                7,877
Returns on investments                                                        
and servicing of finance          (823)           (700)                (996)
Taxation paid                         -           (133)                (139)
Capital expenditure and 
financial investment            (8,288)         (5,448)              (8,250)
                             ----------      ----------           ----------
Cash outflow before use of                                                    
liquid resources and                                                          
financing                       (5,399)         (4,078)              (1,508)
Financing                         4,716           4,959                4,909
                             ----------      ----------           ----------
(Decrease)/increase in            (683)             881                3,401
cash                         ==========      ==========           ==========
Reconciliation of net 
cash flow to movement 
in net funds
(Decrease)/increase in                                                        
cash in the period                (683)             881                3,401
Cash outflow from                                                             
movement in debt                (4,636)         (4,959)              (4,909)
                             ----------      ----------           ----------
Change in net debt                                                            
resulting from cash                                                           
flows and movement in 
net funds in the period         (5,319)         (4,078)              (1,508)
Net debt at 1 July              (3,677)         (2,169)              (2,169)
                             ----------      ----------           ----------
Net debt at period end          (8,996)         (6,247)              (3,677)
                             ==========      ==========           ==========

Notes to the Financial Statements

1.   The results for the year ended 30 June 1999 are extracted from the
     accounts filed with the Registrar of Companies, which contained an       
     unqualified audit report.

2.   The interim results for the 6 months to 31 December 1999 have been
     prepared on the same basis and using the same accounting policies as     
     those used in the preparation of the last full year's accounts to 30 June
     1999 save that depreciation is now being provided on buildings in
     accordance with FRS15 as explained in note 8 below.

3.   Turnover


                                6 months to 31 December         12 months to
                                                                     30 June
                                 1999              1998                 1999
                                £'000             £'000                £'000
Turnover comprised:
                                                        
Ticket sales                    9,072             9,497               15,404
Broadcasting fees and           3,160             2,032                4,383
publishing
Merchandise revenue             4,290             3,171                5,100
Catering                        1,442             1,380                2,647
Other commercial income         4,184             3,248                6,306
                           ----------        ----------           ----------
                               22,148            19,328               33,840
                           ==========        ==========           ==========
Number of home games               14                16                   26

4.   Net Gain on Sale of Intangible Fixed Assets
     In the current period the net gain on sale was represented principally by
     the disposal of Craig Burley, Enrico Annoni and Harald Brattbakk 
     (12 January 2000); (1998:Malcolm Mackay and Paddy Kelly).

5.   After taking account of unutilised tax losses brought forward, together
     with the projected performance for the next six months, no provision for
     taxation is required.  This is subject to the agreement by the Inland    
     Revenue of prior years' computations.

6.   No provision has been made in respect of the 6% dividend (inclusive of
     tax credit) that will be payable on the preference shares on 31 August 
     2000 in respect of the year ending 30 June 2000.

7.   Earnings per share has been calculated by dividing the profit for the
     period by the number of ordinary shares (29,125,000) in issue, after
     taking account of one half of the net dividends noted in 6 above. 
     Diluted earnings per share has been calculated  by dividing the profit   
     for the period by the total number of ordinary and preference shares in
     issue at 31 December 1999, and the full exercise of outstanding share
     purchase options in accordance with FRS14.

8.   Tangible Assets
     The increase in fixed assets in the period represents mainly the
     installation of the LSV screens together with the fit out costs of the
     new sports science centre incorporating a high-quality players'
     gymnasium.  Depreciation is now being provided on buildings in accordance
     with FRS15.  The charge for the current period for those buildings with a
     useful life of up to 50 years is £10,000.  An impairment review has been
     undertaken in respect of those buildings whose expected life is greater
     than 50 years and no provision is deemed necessary.

9.   Intangible Assets

                                   31 December                        30 June
                               1999            1998                      1999
                              £'000           £'000                     £'000
Cost                                                                         
At 1 July                    26,592          22,334                    22,334
Additions                     9,982           6,028                     6,058
Disposals                   (7,044)               -                   (1,800)
At period end                29,530          28,362                    26,592

                                                                             
Amortisation                                                                  
At 1 July                    13,054           7,893                     7,893
Charge for the period         3,911           2,986                     6,088
Disposals                   (4,483)               -                     (927)
At period end                12,482          10,879                    13,054
                                                                             
Net Book Value at                                                             
period end                   17,048          17,483                    13,538


10. Debtors
    The increase in the level of debtors at 31 December 1999 is primarily a
    result of an increase in trading activity and the timing of receipts,
    particularly television income, and in the amounts receivable in
    instalments in respect of the sale of intangible fixed assets.  As at 
    31 December 1999 the latter amounted to £2,050,000 (1998 - £340,000).

11. Creditors - Amounts falling due within one year
    The amounts payable in agreed instalments in respect of the transfer of
    player registrations at 31 December 1999 and included in creditors
    amounted to £4,204,000 (1998 - £3,750,000).

12. Creditors - Amounts falling due after more than one year
    The movement is as a result of the drawdown of a bank loan of £8,000,000
    in the six months to 31 December 1999, of which £5,000,000 was refinancing
    an existing facility, and a hire purchase commitment of £1,237,000.  The
    bank loan is repayable in quarterly instalments of £62,500 from October
    2009 with the balance of £5,562,500 repayable on 30 July 2019.  This is
    part of a new facility agreed in August 1999 comprising an overdraft of
    £8.0m together with term loans of £16.0m of which £4,875,000 is repayable
    in equal quarterly instalments from October 2009 until April 2019 and
    £11,125,000 is repayable on 30 July 2019.

13. Transfer Fees Payable/Receivable
    Under the terms of certain contracts with other football clubs in respect
    of the transfer of player registrations, additional amounts will be
    payable/receivable by the Company if specific future conditions are met.
    Amounts in respect of such contracts could result in an amount payable of
    £775,000 of which £325,000 could arise within one year, and amounts
    receivable of £562,500 of which £356,250 could arise within one year.

14. Post Balance Sheet Event
    On 7 January 2000, Celtic acquired the registration of Rafael Scheidt for
    £4.45m.

15. Copies of the interim report will be sent to shareholders on the register
    as at 7 February 2000 on 10 February 2000.