Interim Report

CHARLES Green has admitted he is still in awe of the way Rangers supporters rallied to help save the Club.

The chief executive was speaking as Rangers International Football Club plc (AIM:RFC), the holding company for the Scottish football club ‘Rangers’, announced interim results for the seven-month period from incorporation to 31 December 2012.

And Mr Green took the opportunity to stress that the Club’s ‘positive cash balances’ will be used wisely in the future.

He said: “All of us involved in the management of the Club are particularly delighted and are indeed in awe of the contribution supporters have made.

“Season ticket sales for 2012/13 stand in excess of 38,000 - representing an improvement on the previous season. It is also among the highest levels of season ticket sales achieved by any UK club.

“The response from supporters to the Initial Public Offering was also remarkable raising £4.5m in the weeks preceding Christmas and we could not have asked more from our supporters in terms of attendance at matches.

“We have enjoyed near capacity crowds at Ibrox for key fixtures and an average home attendance of 45,363 for SFL fixtures. I would like to take this opportunity to thank the fans for their tremendous and on-going support.

“In the last several months, those of us new to the Club have learned very quickly how much Rangers means to its phenomenal fan base but also to football in general.

“The manager, Ally McCoist, his staff and players have had to adapt to extraordinary circumstances and they have all our support and best wishes to hopefully securing the SFL third division title as the first step in returning to participation at the highest level, both in domestic and European football.

“Undoubtedly, challenges lie ahead for Rangers 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.

“Few football clubs today can take comfort from having positive cash balances, which will be spent wisely in the future.”

Finance Director Brian Stockbridge pointed to new deals with Sports Direct, Puma and Blackthorn Cider which he believes will help drive the Club forward.

But he warned that the true financial impact of these new arrangements won’t be felt until the next financial year ending June, 30, 2014 because of slippages in delivery times.

He said: “It is likely that the first shipment of shirts will occur after the current year end which will have a negative impact on sales for the year ending 30 June 2013.

“However, in the next year retail sales will be improved as two major kit launches will occur in the same year.”

The Club has also acquired the Albion car park and Edmiston House, which will be redeveloped to improve the match-day experience for supporters and both acquisitions are expected to produce near term returns on investment through future revenues.

The raising of £22.2m capital is an excellent outcome from the flotation of the Company on AIM and the funds, along with the £12.5m of other share capital provide the Club with a sound financial footing going forward.

It is essential, however, that the Club does not over-extend itself in future as such an approach is unsustainable, regardless of the playing environment.

“The priority for the Company to date has been to stabilise the business and put in place solid financial foundations for the future”, Mr Stockbridge added.

“This work will continue and investors and supporters can have confidence in the development of operations as the Club progresses with its core business of playing football.”

Operational Highlights

Sustainable long-term structure now in place
-- Assets and intangibles purchased from Administrators of former Rangers Football Club plc for £5.5m on 14 June 2012
-- Successful IPO on AIM market of London Stock Exchange raised £22.2m in December 2012 to fund growth strategy, and bringing the total raised share capital since incorporation to £34.5m
Season ticket sales in excess of 38,000, one of the highest levels of season ticket sales achieved by any UK club
Average home league attendance of 45,363 during the period; fifth highest ranking UK football attendance
New retail arrangement signed with the UK’s largest sports retailer, Sports Direct
New kit manufacturer agreement signed with one of the world’s leading sport-lifestyle brands, Puma
New shirt sponsor, Blackthorn Cider, for season 2013/14
Acquisition of the Albion car park and Edmiston House for future ventures to enhance match day experience in January 2013
Currently first in the Scottish Football League 3rd Division

Financial Highlights

Revenue of £9.5m
Operating expenses of £16.6m
Loss before non-recurring items and finance costs of £7.1m
Profit before tax £9.5m driven by non-recurring release of negative goodwill of £20.4m
Investment in football personnel of £1.6m in-line with strategy
Finance leases of £1.9m at 31 December 2012
Cash of £21.2m as at 31 December 2012
Undertaking of debts of former Rangers Football Club plc of £2.8m, (£251,000 remains to be paid in accordance with the terms agreed)

happy enough with that, it'll take a few years before we see a real pattern start to emerge

What will be picked up upon is the fact we are running at a loss.

Should prove to the doubters (tj) that we did generate the amount reported in the floatation.