"Rangers Back in Profit!"
Well that's what you'll read in the press tomorrow - and it's true. The interim results covering the six months to December 2003 have been published and show a retained profit of almost £2.5m versus a loss of £10m last year. The plan is working they say.
Reading the statement, you'll see that the two main items driving the revenue line are the Champions League and the retail operation. Turnover went up by £7.5m, and is over £3m higher than the last time we were in the Champions League.
But if profits went up by £12.5m and revenue "only" went up by £7.5m then that must mean costs came down by £5m. More evidence that the plan is working. Or so it would seem, but the problem here is that for the first time in at least five years, Rangers are disclosing less information that they did before.
Previously, the charge for player registrations was separated out, but not this year. Why not? If you sell three of your first team pool, free other big earners and replace them with dross, then there will be a contribution, not a charge for player registrations which means that other costs have probably gone up - as you would expect with CL.
Why less disclosure than before? Do they have something to hide? Don't they want us to realise that in order to record the £6m loss for this year they have seriously weakened the playing staff? Don't they want us to associate the shambles that is on the field with the fact that we have turned into a selling club?
If you wanted a definition of a buying club versus a selling club then it can be measured in that one item in the accounts. The charge for player registrations. In order to recover from the reckless financial management of the past few years we are now being forced to sell, and aren't we reminded of this every time we watch the team on the pitch!
BROCK STOKER
The full statement issue to OFEX reads as follows:-
Rangers Football Club plc Date of Story: 25/02/2004 10:26
News Story Previous
Rangers Football Club plc - Interim Results
Rangers Football Club plc Newstrack Announcements 25/02/2004
Chairman's Statement
Unaudited Interim Results for the Six Months to 31st December 2003
Turnover for the six month period to 31 December 2003 was GBP33,764,000 an
increase of GBP7,523,000 on the same period to 31 December 2002. This increase
of 29% can be attributed to two main factors, the beneficial impact that
Champions League Football has had on our ticket, commercial and sponsorship
income, and the continuing strength of our retail operations.
Our business plan includes an objective to grow revenues and obtain best value
for money from our expenditure. It is therefore also pleasing to report that
we are reducing our operating expenses at a time when revenues have increased.
The combination of increased revenue and reduced operating expenses has
resulted in a profit before interest and tax of GBP4,229,000, an improvement of
GBP12,469,000 against the corresponding period last year.
Our interest cost of GBP1,778,000 was comparable to that for the previous
period, resulting in a retained profit of GBP2,451,000 for the six month
period to 31 December 2003.
The positive results for this period provide encouraging evidence that our
business plan is being effectively executed. No one at the Club is however
complacent about the need to pursue the completion of our three year transition
plan. We are at the same time confident that with the continued support of our
loyal fans we will emerge from this transitional phase a stronger Club.
John F. McClelland CBE
Chairman
25th February 2004
Consolidated Profit & Loss Account
6 months to 6 months to
31 December 31 December
2003 2002
Unaudited Unaudited
GBP,000 GBP,000
Turnover 33,764 26,241
Profit before interest and tax 4,229 (8,240)
Interest 1,778 1,742
Profit/(Loss) before taxation 2,451 (9,982)
Taxation 0 0
Retained Profit/(Loss) for the Period 2,451 (9,982)
Earnings/(Loss) per Share(p) 4.3 (17.4)
The Directors of Rangers Football Club plc accept responsibility for this
announcement.
Source: Newstrack Service
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