Celtic, the Glasgow football club in which financier Mr Dermot Desmond has an effective 13.8 per cent shareholding, has recorded a drop in pre-tax profit from £7.7 million sterling (€11.2 million) to £2 million (€2.9 million) in the six months to December 31st, 1998. The decline is attributed to the development of the first team squad with "only one player being transferred out and four internationals in". This is reflected in the drop in the net gain on the sale of intangible fixed assets from £6.8 million to £400,000.

Profits at the operating level went up from £3.5 million to £4.8 million. Also sales grew from £15.5 million to £19.3 million. However, reflecting the low net profits, diluted earnings per share fell from 16.02p to 4.26p.

Celtic said that, while the start of the 1998/99 season saw the raising of the premier league championship flag inside Celtic Park stadium, the first six months was a difficult period. Mr Frank O'Callaghan has been elected non-executive chairman. He will replace Mr Fergus McCann, who owns 51 per cent of the ordinary shares, when he departs in the spring.