Glasgow-based football club Celtic has revealed a reduction in debt and loss as well as an increase in turnover in its annual financial report for the year ending 30 June 2004.

Turnover increased by 14 per cent to £69.02m, losses after tax were down to £7.47m from £11.66m and debt fell to £15.8m from £17.78m.

However, operating expenses increased by 19.2 per cent to £64.15m and Celtic also revealed a 20 per cent rise in player salaries and bonuses.

Describing conditions for Scottish football clubs as “difficult”, Celtic chair, Brian Quinn, nonetheless praised the measures taken by Celtic to deal with the situation in a season when Scottish Premier League (SPL) clubs Livingston, Dundee and Motherwell all went into administration due to mounting debt. He also discounted the notion that Celtic would join the English Premiership, stating that Celtic was in the SPL and that was where the club performs best.

“Endeavouring to sustain our footballing success without running excessive risks with our finances remains the principal challenge,” he said. “Celtic has worked hard to remain on course to achieve a sustainable balance between football progress and financial stability.

“The measures taken to deal with this situation were severe, and in some cases drastic. It is too early to say what the effects of this crisis management will have on the longer-term quality of Scottish football. But, over time, theses difficult decisions should go a considerable way to restoring equilibrium and greater competitiveness to the domestic game.”

Last season, the club reached the UEFA Cup quarter-finals and played in the Champions League last season as well as winning the league and Scottish Cup from old rivals Rangers. Details: www.celtic.fc.net