Rangers Announce Losses

By Community | March 4, 2013

Scottish club, Glasgow Rangers have posted a loss of £7 million ($10.5m) for the last seven months of 2012.

Interim results to December 31 show revenue of £9.5m ($14.3m), with operating expenses of £16.6m ($25m). Cash in the bank at the turn of the year sat at £21.2m ($31.9m). In December, Rangers raised £22.2m ($33.4m) from its listing on the London Stock Exchange. 

In a statement, after the financial figures were published on Monday morning, Ibrox chief executive Charles Green said: “This has been a significant period in the club’s history, in which vital steps were taken to ensure the survival and rebuilding of one of the UK’s most venerable football institutions.”

He continued: “The priority for the company to date has been to stabilise the business and put in place solid financial foundations for the future. To this end, revenue streams have been enhanced, and costs cut. In addition, important strategic steps have been taken, such as the agreements now in place with Sports Direct, Puma and Blackthorn Cider.

“These achievements have been made whilst retaining the important fabric and structure of the club. We will continue to execute our growth plan, and investors and supporters can have confidence in the development of operations as the club progresses. Undoubtedly, challenges lie ahead but the club is now well equipped to meet them successfully.

“Above all, the club and its supporters are resolute in the belief that, both on and off the pitch, Rangers can look to the future with confidence and pride.”

Green’s consortium purchased the business and assets of Rangers last summer after the oldco was consigned to liquidation.

A further drop in overall operational costs is expected as part of further cost-saving initiatives. Rangers expect to report an operating loss at year end in accordance with the business plan and broader growth strategy.

Chairman Malcolm Murray reflected on “a period of extraordinary progress for the club.” He added in a statement: “These interim results cover the seven-month period to December 31 2012 and reflect the fact that the club is successfully rebuilding one of the UK’s most renowned football institutions.

“In my 30 years’ investment experience, I have never seen a business move from the liquidation of one company to another’s successful flotation in such a short space of time. This could only have been achieved by the outstanding efforts of management, staff, advisers and fans. This unity and sense of purpose has, rightly, been admired internationally.”