Rangers Publish Interim results

[Frankie 8,552]

The Rangers Football Club plc today (Wednesday, 20 February 2008) published its unaudited interim results for the six months to 31 December 2007.

 

FINANCIAL HIGHLIGHTS

 

�· �£10.0m (43.6%) uplift in turnover to �£33.1m (2006: �£23.1m).

 

�· Increase of �£3.8m in profit before interest and tax to �£3.1m (2006: loss of �£0.7m).

 

�· Retained profit increased by �£3.8m to �£2.3m (2006: loss of �£1.5m).

 

Following publication of the interim results, Rangers chairman Sir David Murray, said: ââ?¬Å?These results are satisfying in that they reflect the progress the Club is making both on and off the pitch.

 

ââ?¬Å?We invested significantly in our playing squad at the start of the season and, as we are leading the SPL and have qualified for the CIS Cup Final, that investment has been fully justified and we are very satisfied with the performance of the team to date.

 

ââ?¬Å?It is also particularly pleasing to see the Murray Park investment producing returns, both in footballing success for our younger players and in the progression of home grown talent to the first team.ââ?¬Â

 

Sir David Murray said: ââ?¬Å?We are pleased to see the Club return a profit in excess of Ã?£3 million and a significant uplift in turnover. Participation in the UEFA Champions League was, of course, highly beneficial to the Club.

 

ââ?¬Å?It is very important to pay tribute to the commitment made by our supporters in the last six months. They travelled extensively in Europe at considerable cost and, at the same time, ensured excellent attendances at Ibrox and at away domestic fixtures. We are very grateful for this continuing support.

 

ââ?¬Å?While playing in the Champions League was important to the Club, it is also essential for us to continue investment throughout the business in order to deliver long-term stability and success.ââ?¬Â

 

 

CHAIRMAN�S STATEMENT IN FULL

 

The first six months of the financial year saw us qualify and participate in the UEFA Champions League Group stages against the champions of France and Germany together with the pre-tournament favourites Barcelona. We narrowly failed to qualify for the last 16 in what many termed the toughest qualifying group in the competition. The glamorous ties against Barcelona were enjoyed by our supporters, whilst the result in Lyon was one of the best in the Club's European history. Attention then turned to progression within the UEFA Cup.

 

Domestically our participation in the CIS Insurance Cup Final is assured and qualification has been gained into the fifth round of the Scottish Cup. Our prime focus is however on winning the Clydesdale Bank Premier League.

 

Turnover for the six months to 31 December 2007 increased by �£10.0m to �£33.1m primarily due to the UEFA Champions League performance and market pool income, and the positive impact on ticketing and hospitality sales. As well as benefiting the Club financially, qualification to and competition in the spotlight of the UEFA Champions League has also increased the profile of the playing squad, with many enhancing their reputations in a wider arena.

 

Operating costs have increased on the prior year as we have strengthened the number, composition and overall competitiveness of the playing squad. Profit before interest and tax in the current period of �£3.1m is an improvement of �£3.8m on the six months to 31 December 2006 and reflects the performance in Europe.

 

The interest charge of �£0.8m is higher than the same period last year due to the increase in the net debt over the period following the summer signings to strengthen the football squad. The resultant retained profit of �£2.3m for the six months to 31 December 2007 compares to a retained loss of �£1.5m for the equivalent period last year. Participation in the UEFA Cup will provide some financial benefit in the second half of the year although this is not as financially lucrative as the UEFA Champions League.

 

It is satisfying once again to see the investment in Murray Park producing returns, both in terms of footballing success and in the progression of home grown talent into the first team squad. In January, media speculation forced the Club to comment on potential development and regeneration initiatives around Ibrox. We are continuing to review our options on this project, in conjunction with a number of other parties, and no proposals will be finalised until a full evaluation exercise has been undertaken.

 

In the 2007 Annual Report I commented that we had renewed confidence and momentum heading into the new season. This has, as expected, proved to be justified and credit must be given to Walter Smith and his management team for the performance and effort of the playing squad in the current season. We look forward to the remaining months of the season with anticipation as we compete to bring silverware to Ibrox.

 

Sir David E Murray

[Frankie 8,552]

More SDM comment

 

http://www.rangers.premiumtv.co.uk/page/News/NewsDetail/0,,5~1245938,00.html

[calscot 0]

While I don't want to be sycophantic to Murray, you have to admit he's woken up on quite a few fronts and much of what he is saying is encouraging.

 

The turnover of 33M in the first half of the year is excellent considering we have eschewed about 25M per year in turnover by franchising our retail, catering and ticketing. Well probably about 19M when you subtract the actual net profit that we receive.

 

To the layman it looks to be the case that if we post a yearly turnover of plausibly 64M (including the 11M from the sales of Hutton and Cousin), then when compared to Celtic, our "equivalent" turnover (adjusting for retail etc) could be about 83M. Celtic posted 75M last year...

 

So it looks rather good, although the Hutton money makes a big difference. However, Celtic sold quite a few players last year including Petrov for about 6M.

 

To get back to Murray, he seems to be reflecting a lot of opinions of the more astute fans and the Ibrox redevelopment sounds like a good long term move.

 

We're averaging about 96% capacity in the stadium which makes it fair to predict that a fair amount of season tickets would be taken up if the stadium was expanded somewhat - providing the quality of the seating and view were up to scratch.

 

Dhim Celtic fans point out that we need to fill our stadium every game before thinking about expanding but this is nonsense. At 96-98% capacity means that all that is left is the very poorest seats with the worst views, as well as some allowance for segregation.

 

With more prime seats on offer, there is sure to be take up. Besides if we had a 60k stadium averaging 55k then it's easier to make the decision to travel and buy at the gate.

 

There are still many issues to be sorted out, but we seem to be on a much better road now than we have been for the last few years, when SDM was way off the mark with his direction.

[Wija 0]

then when compared to Celtic, our "equivalent" turnover (adjusting for retail etc) could be about 83M. Celtic posted 75M last year...

 

Don't care to compare when the results for both teams have so many differences.

 

But the stadium extension is a good ploy by SDM. He knows he will get more money in via season tickets... I would probably go for one - due to no waiting list (probably) and there would also be the seats available to the guys who turn up at the ground on match day looking to watch.

 

I would say we could get 55k in every game. No problem.

 

SDM is trying to possibly leave a legacy. I just hope that it is done only with the best interests of this great club at the fore.

[bmck 117]

there is no waiting list just now i dont think. largely a myth. for some areas maybe, but there are always plenty of decent seats with no waiting list.