Rangers handed Companies House their audited accounts and it paints a less than rosey picture to the unaudited club accounts peddled to the media with much fanfare.
Earlier this month, Rangers [PLC] said that they had cut their operating losses to £532,000 in the six months to December 31 but remained ‘reliant’ on shareholders to fund any shortfall.
However, audited accounts filed with Companies House showed that Rangers’ [Ltd] operating losses increased by 11% to £9.04 million for 2015 to June 30th – with debt owed to their parent company increasing by 16% to £18.1 million (2014: £15.6 million).
Pre-tax losses decreased to £6.85 million down from £7.76 million the previous year, but that decrease was helped by a £1.07 million gain from their holding in Rangers Retail Limited – which increased from £109,000 in 2014.
Rangers’ turnover dropped by nearly 10% to £15.4 million from £17.1 million the year before, with operating expenses totalling £24.4 million – 2014 operating expenses sat at £25.2 million.
The security firm, Garrion Security Services Limited, which is 100% owned by Rangers had a £1.01 million turnover to June 30th and a pre-tax profit of £126,000 – helped by the Commonwealth Games being held in Glasgow. Their staff costs increased to £653,748 in 2015, from £372,697 in 2014.
First team costs at Rangers dropped by £300,000 to £6.2 million – as 13 players left the club before they signed a further ten – first team wages actually account for 40% of the turnover in 2015 – a 2% increase from the previous year with overall staff costs sitting at £12.3 million [80% of the total turnover for the year].
However, Rangers’ auditors issued an ’emphasis of matter – going concern’ warning that Rangers’ continued ability to operate over the course of the next 12 months was ‘dependent on its ultimate parent entity raising additional finance and continuing to provide support to the company’.
Rangers [Ltd] have debts of £18.1 million owed to Rangers [PLC] which are ‘unsecured, repayable on demand and do not accrue interest’. However, the PLC have given written representations that it will not call in the debt due and will continue to provide financial support for at least 12 months – from January 2016.
Rangers [Ltd] have debts of £29.1 million due within one year – this does not include the £5 million loan repaid to Sports Direct in December.
There was an amount of £6.32 million owed in deferred income – thought to be season ticket sales – and a further £438,000 is listed under ‘obligations under finance leases and hire purchase contracts’ – this is in relation to ‘funding of the refurbishment of the stadium fast food outlets’.
But as King claimed earlier this month, at the time of the unaudited report: “There are not many Clubs in the world that are in that enviable position.”