In this issue...
Editorial
New Newsletter Format
A Sharesave Scheme for Celtic
Celtic Trust AGM
Celtic plc AGM and Trust Resolutions
The Trust meets Ian MacLeod:
The Celtic Youth Academy
Editorial
A FIRM FOUNDATION
Welcome to the fourth edition of the Celtic Trust Newsletter. And thank you for your patience, this being only the second Newsletter of the season. However,
Achievement of the Resolution Process
The outcome of the resolutions vote is discussed in more detail below.
Acknowledgement of Celtic Plc's Co-operation
It is also important to state for the record the fact that, once the Trust had demonstrated its ability to meet the legal requirements of the Companies Act in submitting its resolutions,
Post Plc AGM Activity
Since the Plc AGM the Trust has undertaken a number of key initiatives. The most important was to mail over 3,000 of the approximately 18,000 Celtic Plc shareholders with information on the Trust. s.
<<---Back
New Newsletter Format
This is the last of the Trust Newsletters in its current form. The next issue, due out in early May, will be in a 2-4 page format and we intend that it will appear more frequently than hitherto and be much more reactive to current events.
<<---Back
A Sharesave Scheme for Celtic
The Trust is currently in the process of investigating the mechanics of setting up a sharesave scheme for Celtic supporters wishing to invest in Celtic Plc to fund the development of the team. FOOD FOR THOUGHT
On page 144 of Bill Murray's excellent book The Old Firm the author recounts the contrasting fortunes of Celtic and Rangers managers Willie Maley and William Struth after they left management:
`Struth…had the shares to back up his success on the field and became a power on the board. Maley was sacked in 1940 and spent his remaining years in bitter retirement.'
Then as now, the power of share ownership was clear.
<<---Back
Celtic Trust AGM
The Trust held its AGM on Saturday 8th September 2001 in the City Halls in Glasgow. The bulk of the business of the meeting was routine (minutes are available to members on request).
<<---Back
Celtic plc AGM and Trust Resolutions
At the Trust AGM a vote was passed withdrawing Resolution 11 after Celtic Plc agreed to undertake a series of regular meetings with Trust representatives on matters of mutual concern. (see below).
<<---Back
The Trust meets Ian MacLeod:
17th July 2001
Following submission of the Trust's four resolutions onto the agenda of the 2001 Celtic Plc AGM representatives of the Trust held their first quarterly meeting with Ian McLeod, Chief Executive of Celtic Plc.
9th November 2001
The Trust held the second of its quarterly meetings with Celtic Plc Chief Executive Ian McLeod at Celtic Park. The tone of the meeting was cordial and constructive. Among the key issues discussed were:
*
The Celtic Plc Interim Report 2001 for the Half Year Ending 31st December 2001.
The July 2001 Share Issue: Progress On Objectives Outlined in Prospectus.
The following is a detailed summary of the discussions. We go into detail as this presents a thorough overall picture of the state of strategy development at Celtic, which will be of interest to all concerned shareholders.
Turnover Growth in 1st Half and prospects for the 2nd Half.
Turnover had increased from £22.8m to £36.4m on the same period in 1999/2000, an increase of 59%.
Multi-Media & Communications Operations
Ian McLeod gave a comprehensive review of developments and would appear to see this an area where Celtic Plc can grow substantial revenue increases in the future. Progress on negotiations for a new SPL TV deal: SPL channel or BskyB?
As had been reported in the press BSkyB had offered the SPL a lower fee for the rights to broadcast the SPL football over the 2002-2005 period
Term Loan
The Trust representatives highlighted items in the Celtic Plc Interim Report 2001(Note 10) and the 2000/2001
Use of Share Issue Proceeds to Pay Down Debt - Press Report & Related Request for Clarification
The Trust Secretary asked Ian McLeod to clarify the situation regarding a media report that £15m of the money raised from the July share issue `was apparently used to repay a loan from the Co-operative Bank'.
The Status of the Westthorn Recreation Training Facility adjoining Barrowfield Training Ground.
Trust representatives referred to the item in the June 2001 Share Issue document (Page 84, Section 2) referring to an agreement signed with Glasgow City Council to rent the Westthorn facility for five years at £26,000 per annum expiring in 2005 and to a further agreement to purchase this site on the expiry of this lease.
Scouting, Coaching, Training and Youth Development Operations, and the Question of Celtic Establishing a Youth Academy.
This item was specifically referred to in the June 2001 Share Offer document as an area where Celtic intended to make a significant financial investment.
Merchandising
Ian McLeod expressed satisfaction at the continuing buoyancy of merchandise sales. These had increased from £4.1m to £6.9m, a rise of 70%.
Other Related Revenue Generating Capital Projects.
Celtic had opened the new No. 7 restaurant at Celtic Park to cater for the more upmarket end of the banqueting market.
Prospects for Celtic joining the
English Premier League
The Trust representatives asked Ian McLeod about the current state of play regarding the possibility of Celtic joining the English Premier League. The Celtic Plc Share price:
58.5pence per Ordinary Share on the 20th February - a fall of over 50% since the July 2002 share issue.
Reflections
As should be clear from the above, Ian McLeod should be applauded for agreeing to spend time with representatives of Celtic's shareholders to give such a comprehensive explanation of the Plc's position on key issues of concern to shareholders.
<<---Back
The Celtic Youth Academy
In the report of the Trust meeting with Ian MacLeod on 22nd February, Celtic plc's current views on youth development are reported.
Conclusion
In fairness, in looking at this whole topic, it should be borne in mind that, under the old Board and in the reign of Fergus McCann, very little was done to provide decent training facilities for the first team squad, far less youth players.
<<---Back
Celtic Trust
# B001 |
