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SBD Global/March 28, 2014/Finance

Scottish Rangers Accounts Show £3.5M Loss, Down From £7.2M In Previous Report

Scottish Rangers interim accounts show £3.5M in losses.
Scottish League 1 Rangers "has reported losses" of £3.5M in the final six months of '13, according to the BBC. This is down from £7.2M for the seven-month period to the end of the previous year. Interim accounts published on Thursday show cash reserves of £3.5M, down from £21.2M the previous year. About £1.7M of that £3.5M relates to money that is "not immediately available as working capital" (BBC, 3/27). STV's Grant Russell reported independent auditors Deloitte have also included two "emphasis of matter" reports in the accounts, one of which "relates to uncertainty over the business as a going concern." They state "key assumptions" made by the company in relation to the purchase of season tickets by supporters "indicate the existence of a material uncertainty which may cast significant doubt about the Company's ability to continue as a going concern." Rangers' directors note in the report a threat from fans to withhold season ticket money for next season "are particularly unhelpful as they have the potential to destabilise and damage the club." Rangers also announced a 38% increase in revenue from £9.5M to £13.2M, "which is in significant part down to a retail deal with Sports Direct." Its operating expenses, however, have risen compared to last year by £200,000, with the company having spent £16.8M in the last six months of last year (STV, 3/27). REUTERS' Keith Weir reported Rangers, who have sold 36,000 season tickets in '13-14, "have just secured a second successive promotion after relaunching from the fourth tier of the Scottish game." However, that "untroubled progress on the field has been overshadowed by boardroom infighting and fresh concerns about the financial health of the 54-times Scottish champions" (REUTERS, 3/27).

IBROX FEARS: The Scotland DAILY RECORD reported Rangers Chair David Somers has admitted "material uncertainty" over season ticket income "may cast doubt about the club's ability to continue as a going concern, as the Ibrox outfit announced its cash reserves fell" by more than £17.5M last year. Staff costs were down £800,000 to £7.5M, but the club pointed out that £500,000 "was spent on severance payments" (DAILY RECORD, 3/27).
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