Rangers Interim Results

Last updated : 24 March 2003 By Followfollow.com

These are effectively the 'half times' from the accounts but are never really a great source of information as we only get an abbreviated profit and loss account, no balance sheet and no cash flow, but at least comparisons can be made.

First thing to look at is turnover. This has increased to £26.2m - up from £22.2m last year, with the main benefit coming from the new strips. It's not clear how much of this comes from the popularity of the orange strip and how much from making our own. However, with the early European exit said to have cost us £1.5m this has been a very successful move - watch for others following.

Of more interest, is the comparison with the year to December 2000 when turnover was £30.2m. This drop of £8m was blamed on non qualification for the Champions League offset by a decent run in the UEFA Cup. Selling the jerseys is important, but European football matters more.

Net operating expenses, which is dominated by staff costs, has fallen by around half a million, but the reduction which will come from the departure of Advocaat, Flo and whoever goes at the end of the year will take time to feed through.

After charges for player registrations, which is how transfers and player contracts are accounted for, the operating loss is £8.2m down from £12m and after higher interest charges on the higher debt, the loss before tax (and no tax is paid) is just under £10m - down from a £13.2m loss last year, but still worse than the £6m loss we made the last time we were in the Champions League.

Given the lack of information it is difficult to draw too many conclusions
from this short statement but here we go anyway:

* Making and distributing our own strips has been a success, although with no orange strip next year (shame!) it might be difficult to repeat.

* Not being in the Champions League may have cost us £10m in turnover, although less in profits once additional costs are taken into account.

* The inexorable rise in operating expenses (largely wages) has been halted, although it's too early to call it a trend.

* The board is doing what it said it would do. Turnover is going up and costs down - but we have no new data on where debt is going.

Prudence is the new mantra off the field, but it all still depends on Alex McLeish making do with next to no transfer budget while still bringing home the league, and progressing in Europe. Go for it big man!

BROCK STOKER

                6 months to 31 december

                                        2002      2001
                                        £000      £000
                                (Unaudited)  (Unaudited)

Turnover                         26,241    22,181
Net operating expenses    31,226    31,782
Trading Loss                    -4,985    -9,601
Player registrations            3,255    2,406
Operating Loss                 -8,240    -12,007
Interest                            1,742     1,232
Loss before taxation         -9,982    -13,239

Loss per Share                (17.4p)    (23.1p)