Club continuing to invest
Rangers losses double as King insists club is ‘going forward’
Dave King: ‘club continues to move forward’ (SNS Group)
Rangers pre-tax losses have more than doubled to £14.3m as chairman Dave King insisted the club remains financially sound.
The loss for the year rose to £14.3m from £6.7m last time despite a rise in turnover to £32.6m (2017 – £29.2m).
Mr King, said: “On balance, the year to June 30, 2018, was a positive one despite the need for further change to ensure the progression that this club requires both on and off the pitch.
“Figures can be reviewed in various ways but the underlying and strong message is that Rangers, as a football club and business, continues to move forward. It will always be a challenge to meet the demands and expectations of a wonderful support and that is why we continue to invest massively in our infrastructure, team and staff.
“It was inevitable, given our dire starting position that vast amounts of money would have to be spent on rebuilding our facilities and the various departments within them. These costs are reflected in the figures but it is important to highlight that the last financial year saw us normalise our financial affairs to the extent we no longer face questions about our financial strength when dealing with suppliers, other clubs and financial institutions.
“This is an extremely positive change over such a short period and I cannot thank my fellow Directors and other investors enough for their continued support which helps drive our Club forward. Again we have had to reassess our team management structure and this of course means a further spend, from which we did not shrink and neither will we neglect the infrastructure, which accounts for a huge amount of our spending even if this work goes largely unseen.
“Witnessing the selfless extent to which my colleagues are willing to invest has been truly humbling and the structure of the loans advanced means they can be converted to equity when future share issues are undertaken. So, when analysing the financial statements under review these loans can be viewed as equity and not third-party debt.”
The board says the latest forecasts indicate that at least £4.6m will be required for the rest of the season and a further £3m will be needed for 2019/20. It has received undertakings from investors “confirming that they will provide financial support as it is required”.
The Annual General Meeting will be held in the Clyde Auditorium on 27 November at 10am.