King’s Gers post a profit but they’re still at a loss
RANGERS chairman Dave King has taken the club into operating profit for the first time since he seized control two years ago.
The Light Blues have released their unaudited trading results for the six months to December 31 and it shows an operating profit of £300,000 on increased revenue of £16.3million.
That’s an improvement on operating losses of £500,000 from an £11m turnover for the same period 12 months previously.
With taxation and losses on the disposal of fixed assets and player registrations taken into account, plus “other charges” of £451,000, the full income statement shows a loss for the period of £238,000.
Rangers admit they are still reliant on soft loans from shareholders, including King and Douglas Park, to fund a shortfall in finance but say no further investment is needed before the end of the season.
Directors handed the club £2.9m in October to boost the club’s bank balance and promised another £850,000 this month but it’s unclear if Rangers have drawn down the second tranche of funding.
They also insist the overall financial outlook is improving, with only the ongoing dispute with Sports Direct hampering financial performance.
A statement read: “The results for the six-month period have mainly been driven by the club’s return to the Premiership.
“Overall, it is an encouraging financial performance that reflects the move to a more normalised trading environment as the numerous event risks that have bedevilled the club’s operations over the last few years have been brought under control.
“Resolution of the ongoing dispute with Sports Direct is the only significant issue that still adversely affects the trading performance.
“Executive management is increasingly able to focus its attention on the club’s core footballing activities.”
Rangers claim enhanced revenue for the period was a result of three main factors.
It includes better attendances, with ticketing and hospitality revenue increasing by £3.4m.
The return to the Premiership this season has also generated an £800,000 increase in central funds received from the SPFL.
And sponsorship and commercial revenues have been boosted by the club’s return to the top flight.
Operating expenses, excluding amortisation of players’ registrations, increased by £4.1m compared to the 12 months previously.
Rangers claim this is a result of increasing their playing budget for a return to the Premiership, and matchday costs and overheads as the club rebuilds its staff infrastructure.
The statement added: “The club is well on its way to achieving a sustainable business model while continuing to invest in infrastructure and the squad.
“Reliance is still placed on shareholders to fund the shortfall required during the current rebuilding phase.
“Whilst additional funds are available, no further funding from investors is anticipated this financial year to June 2017 due to the team’s performance and progress to the Scottish Cup semi-finals.”