League One champions Rangers have reported losses of £3.5 million [pre-tax] in the six months up to 31st December 2013 – down from losses of £7.2 million posted in the last seven months of the previous year.
The accounts published show that the Ibrox side’s cash reserves are at £3.5 million, down from £21.2 million last season – which took in the IPO share issue under Charles Green’s reign.
Around half of that £3.5 million relates to money which the club have stated is ‘not immediately available as working capital’ and is of the same amount as the loan deal from George Letham and Sandy Easdale.
Rangers chief executive Graham Wallace, commented: “I am encouraged with the improved trading performance for the period under review which shows growth over the prior year. However we continue to deal with the impact of the previous short-term focus on managing the business, in particular the management of cash and resulting cash outflows since the IPO.
“We have recently addressed the short term working capital requirements of the Club and will continue to address the longer term financing needs as part of the wider review of the business.
“There remain many legacy issues that require resolution and many challenges ahead, however I am pleased to report that we are making good progress in repositioning the Club and business to be capable once again of challenging at the top levels of domestic and European competition.
“With the continued support from Rangers shareholders and supporters together with a strong sustainable business plan, we are putting in place the foundations for a period of long term success and financial stability.“
Season ticket sales were around 36,000 for the season, but auditors Deloitte have warned those who are considering withholding season ticket money, that they club’s ability to keep trading could be hit hard.
The Ibrox side’s revenue was boosted by the retail partnership with Sports Direct which saw a rise of 38% from £9.5 million (£9.5m for the 7 months ended 31 December 2012) to £13.2 million.
Despite Wallace stating earlier in the season, that the club must curb their spending, the club’s expenses have risen by £200,000 from £16.6 million to £16.8 million before tax, excluding non-recurring items of £3.5m.
Season ticket sales of approximately 36,000 for the 2013/14 season .
Average home league attendance of over 40,000 during the period; seventh highest ranking UK football attendance.
Revenue of £13.2m up by 38% (£9.5m for the 7 months ended 31 December 2012) – strong increase in sales from Sports Direct Retail partnership.
Operating expenses of £16.8m (£16.6m for the 7 months ended 31 December 2012)Reduced loss before tax, excluding non-recurring items of £3.5m (£7.2m for the 7 months ended 31 December 2012).
Cash of £3.5m as at 31 December 2013 (£21.2m at 31 December 2012).