FINANCIER Mr Dermot Desmond has made a paper profit of almost £5.8 million on his stake in Celtic football club over the past 18 months.
Mr Desmond, who has a seat on the Celtic board, paid almost £2 million for a stake close to 10 per cent in the company when it was floated in January 1995. His holding is now worth almost £7.78 million.
About 10,000 Celtic fans who participated in the £9.4 million sterling share offer - including several hundred small Irish shareholders - have also benefited from the club's improved financial performance. Any investor who bought the basic £620 share package at flotation now owns £2,500 worth of Celtic shares which can be traded on the Alternative Investment Market in London.
Celtic's financial transformation over the past two years has resulted in the company having a market worth of more than £121 million, which the club claims is second only to Manchester United.
It is all the more remarkable given that Celtic was within hours of bankruptcy until the arrival of chairman, Mr Fergus McCann more than two years ago. The Scots Canadian assumed control from an old board and, in the past two seasons, has overseen a return to form both on and off the pitch.
Celtic yesterday announced its results for the year to the end of June, which showed that its after tax loss had risen from £400,000 to just over £1 million. However, the club said the increased 1955 was due mainly to a £3.8 million writedown of assets, necessitated by the Bosman transfer ruling which has had a negative impact on players' value to clubs.
Celtic made an operating profit of £2.74 million during the year compared to loss of £180,000 last year and the club's turnover increased by 54 per cent to £16 million.
Mr McCann said the dramatic increase in turnover was mainly due to the club's return to the upgraded Celtic Park. Season ticket bookings rose from 18,500 in 1994/ 95 at the club's temporary Hampden Park home to 29,500 last year. Income from commercial operations such as publishing, merchandise and catering also increased dramatically.
Celtic's finances for the current season appear even healthier as 40,000 season tickets have been sold already for the 47,600 capacity stadium.
Mr McCann said that, with the high level of season ticket sales, the stadium would again operate at near capacity on a regular basis.
In his statement to shareholders, the chairman said that behind the figures "lies the fact that the club and their future prospects are driven by the numbers and loyalty of our customers".
Mr McCann said that about £12 million had been spent acquiring 10 new players over the last two years and he commended manager Tommy Burns for the team's performance last year.
