Rangers Accounts now available...

[Rangers Football Club 0]

HUGE rise in profts and debts down

 

More...

[Frankie 8,677]

RANGERS Football Club today (Wednesday September 22, 2010) published its annual financial results for the year ending 30 June 2010.

 

Financial results included:-

 

Turnover of �£56.3m (2009 - �£39.7m), an increase of �£16.6m or 41.8%

�·Net operating expenses decreased by 9.1% or �£4.4m to �£43.9m (2009 - �£48.3m)

�·Operating profit increased by �£22.4m to �£5.1m (2009 - loss of �£17.3m)

�·Profit for the year increased by �£16.9m to �£4.2m (2009 - loss of �£12.7m)

 

Rangers Chairman Alastair Johnston said: "I am very pleased to present the Rangers Football Club Annual Report against a backdrop of success for the Club.

 

"To win our 26th League Cup was outstanding but to secure our second successive Clydesdale Bank Premier League title at this juncture was not only a tremendous achievement but one of paramount importance to the welfare of the Club.

 

"I would like to extend my congratulations to Walter Smith, Ally McCoist, Kenny McDowall and the playing squad for their efforts.

 

"The result of that success was qualification for the UEFA Champions League this year, the net revenues from which will, in turn, provide us with greater financial stability.

 

"One of the immediate benefits of this was the commitment by Walter to manage the team for another season and Ally and Kenny agreeing to new contracts.

 

"The benefit of participating in the UEFA Champions League in Season 2009/10 is clear with our turnover increasing by �£16.6m to �£56.3m.

"This, together with measures taken on reducing our cost base, resulted in an increase in operating profit of �£22.4m to �£5.1m from last year's loss of �£17.3m.

 

"Retained profit for the year amounted to �£4.2m, an increase of �£16.9m on last year. The current year incorporates a �£0.5m gain on sale of player registrations compared with a gain of �£6.2m in the prior year.

 

"In terms of debt, our net cash inflow in the year amounted to �£4.0m. As I highlighted last year we still had �£9.2m payable in terms of historic player transfers.

 

"The cash flow in the current year reflects payments of �£8.0m on these prior year acquisitions, and resulted in our year end debt in relation to the term loan and overdraft facility with Lloyds Banking Group of �£22.3m. Total debt at 30 June 2010, incorporating finance leases and other loans, amounted to �£27.1m.

 

"A balance has to be struck between debt reduction and remaining competitive on the playing front. To this end, we agreed a business plan with Lloyds Banking Group in recent months, and whilst we continue to look for new investment, this has enabled an allocation of funding for new players, while at the same time retaining the nucleus of the squad that has served us so well in the past two seasons.

 

"The financial results and the team's success have assisted in stabilising the business and strengthening our balance sheet. Some caution must be exercised, however, given the effect of the recession on our core revenue streams and the implications to Scottish football of the country's European ranking.

 

"Challenges therefore still remain but I am confident that the management team under the guidance of Martin Bain can continue to enhance the company's financial performance whilst maintaining our team's competitive edge on the field.

 

"Every Rangers fan, myself included, knows only too well the issues we have faced in recent times given our debt levels and the distraction of ownership speculation.

 

"However, we are now in a position to look forward more constructively and positively as we make every effort to achieve continued success for this great football club."

 

Full report here...

 

http://www.rangers.co.uk/page/annualreport/0,,5,00.html

[Frankie 8,677]

Given the numbers in the report there is definitely scope for further substantial debt reduction this time next year.

 

I'd have thought down to the �£20million mark is possible.

 

I'm sure our resident accountants will be able to qualify such speculation...

[Tannochsidebear 2,435]

So the big question we have all been asking all year is what will the debt be at 30 June 2010, and the answer is �£27M.

 

This is explained as being reduced by increased turnover and profit, and being offset by historical payments for players outstanding of �£8M. There is no mention I can see of anything further being due for historical player purchases, so this years profit (less the cost of players bought) should reduce our debt still further.

 

My reading of things is that while we will make profit, we wont spend this until we are assured of participation in the 2011/12 CL. In other words if we dont make the CL group stages next season, our profit from this season will go to cover the loss of money next season.

 

One thing I cant quite get my head round is the staff wages still total �£28M, despite our thinner squad last season and no new deals for anyone.

 

I trust this figure will go down again in 2010-11.

 

I also see that despite it being a very difficult year for all players, the management staff running without contracts etc, Martin Bain did exceptionally well, earning well over �£700K, and an increase in pay of around 25% in 1 year. Nice work if you can get it eh Martin.

[metlika 0]

Given the numbers in the report there is definitely scope for further substantial debt reduction this time next year.

 

I'd have thought down to the �£20million mark is possible.

 

I'm sure our resident accountants will be able to qualify such speculation...

 

To answer the accountants question, probably with the CL income from this season not taken into account and it also covering all transfer fees and a net spend of only �£2m it doesn't look all that bad at the moment.

[rbr 1,270]

These are actually quite good , main points being the �£8million paid in transfer fees , this year's dealings should be near zero due to money in, Wilson will play a fewe games for Liverpool in the cups and at �£300,000 a time it will soon add up .

 

C/L ticket sales were poor last year and hopefully a few thousand more bears at �£100 quid a package will make another dent , finally the money earned from bonus points last year wsas pityful two draws , hopefull if we can get a couple of wins and drop into the Europa league , another game or two could earn upwards of �£4 million once Tv and ticketing are taken into account .

 

Happy days , just need to pump the sheep and its a good week all round , and it's my birthday

[chilledbear 16]

Is it just me, a bit disappointed to be truthful.

 

Players sold

 

Wages down

 

Turnover up

 

Operating profit up

 

Expenses down.

 

Debt down less than �£4m!!

[Super_Ally 0]

These are actually quite good , main points being the �£8million paid in transfer fees , this year's dealings should be near zero due to money in, Wilson will play a fewe games for Liverpool in the cups and at �£300,000 a time it will soon add up .

 

C/L ticket sales were poor last year and hopefully a few thousand more bears at �£100 quid a package will make another dent , finally the money earned from bonus points last year wsas pityful two draws , hopefull if we can get a couple of wins and drop into the Europa league , another game or two could earn upwards of �£4 million once Tv and ticketing are taken into account .

 

Happy days , just need to pump the sheep and its a good week all round , and it's my birthday

 

Is that right about Wilson? First i've seen of that. I knew there were add-ons, just never knew what they were. Thought it would be the usual "x" amount after "y" games or similar.

[Guest William_III]

Is it just me, a bit disappointed to be truthful.

 

Players sold

 

Wages down

 

Turnover up

 

Operating profit up

 

Expenses down.

 

Debt down less than �£4m!!

 

Hi all newbie here!

 

I think the debt is only been reduced by 4 million or so is because we have also paid off 8 million in old transfer fees. If this was not the case the debt would have been reduced by much more.

Next year will be much better.

[Super_Ally 0]

Hi all newbie here!

 

I think the debt is only been reduced by 4 million or so is because we have also paid off 8 million in old transfer fees. If this was not the case the debt would have been reduced by much more.

Next year will be much better.

 

Is that �£8mil not counted as part of the debt then? Or am I misunderstanding accounting terms again.