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Rangers Post Strong Financial Results

Mon 4th Mar 2013 | Money & Finance

Rangers Newco (Rangers International Football Club plc) have posted a profit before tax of £9.5m in their interim results for the seven-month period from incorporation to 31 December 2012.

Currently leading the Scottish third division, Rangers Chief Executive, Charles Green expressed his delight at the positive figures.

“These results reflect the execution of the published business plan and demonstrate the remarkable support and loyalty that is the hallmark of this football club,” Green said in his statement.

“We have made great strides in a short spell but there is much work to be done to fully restore Rangers.

“Given that the Club is in the unprecedented situation of playing in the Scottish League Division 3, there is, at this stage, a clear impact on a range of revenue streams, particularly in broadcasting and with the absence of European participation.

“We are pleased however that operational costs, particularly staff costs and wages, have been substantially reduced over the period, although the Company is not expected to report an operating profit at the year-end given revenue stream forecasts.”

Rangers posted a loss before non-recurring items and finance costs of £7.1m. However, their profit before tax of £9.5m was driven by a non-recurring release of negative goodwill of £20.4m.

A successful IPO on AIM market of London Stock Exchange raised £22.2m in December 2012 helped to fund the club’s growth strategy, and bringing the total raised share capital since incorporation to £34.5m.

“We were delighted to have listed on AIM, a market operated by the London Stock Exchange in December 2012; it represents a key milestone in our plans for bringing Rangers back to its glory days,” Green continued.

“A total of £22.2m, before expenses, was raised to strengthen the player squad, improve and develop the Club's properties and facilities, as well as provide additional working capital. This flotation was achieved in a challenging economic climate and is great testament to the faith shown in Rangers by institutional and individual investors as well as supporters of the Club.

Despite being forced to start life in the third division, Rangers boast an average home league attendance of 45,363 during the period; the fifth highest ranking UK football attendance and season ticket sales in excess of 38,000, one of the highest levels of season ticket sales achieved by any UK club.

Further development of the club’s commercial activities has seen a new retail arrangement signed with the UK’s largest sports retailer, Sports Direct as well as a new kit deal with Puma and shirt sponsor, Blackthorn Cider, for season 2013/14

“In the current financial year our focus is firmly on rescuing the Club and starting the rebuilding process in earnest. We have renegotiated all major contracts and are pleased to have recently established new partnerships with Sports Direct, Puma and Blackthorn Cider.

“We are particularly pleased with the relationship with Sports Direct, the UK's largest sports retailer. In addition, the Club appointed a new kit manufacturer, Puma, one of the world's leading sport-lifestyle companies. Going forward, we will spare no effort in enhancing existing revenue streams and identifying new opportunities that ultimately benefit the Club and its future.

“All of us involved in the management of the Club are particularly delighted and are indeed in awe of the contribution supporters have made to the Club. Season ticket sales for 2012/13 stand in excess of 38,000 - representing an improvement on the previous season. It is also among the highest levels of season ticket sales achieved by any UK club.

“The response from supporters to the Initial Public Offering was also remarkable raising £4.5m in the weeks preceding Christmas and we could not have asked more from our supporters in terms of attendance at matches. We have enjoyed near capacity crowds at Ibrox for key fixtures and an average home attendance of 45,363 for SFL fixtures. I would like to take this opportunity to thank the fans for their tremendous and on-going support."


Posted by: Aaron Gourley

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