The results for the last 6 months are due to be announced soon and there are a few key things we should look out for which will tell us whether things have improved or deteriorated:
1/ What was the cash balance at 31 December 2013?
Given our cash outflows are likely to exceed our inflows by at least £1m per month until the first part of season ticket moneys are received (in June?), anything less than £6m in the bank at 31 December would be a big concern.
2/ What were our share of profits and cash flows from Rangers Retail?
The operating loss which is reported will have been reduced by profits from Rangers Retail. The reported profit from Rangers Retail will however represent 100% of the profits not just our share. This is a perfectly correct way of reporting under accounting conventions but the headline operating loss is likely to flatter since Mike Ashley’s share of the profits will be identified lower down under profit attributable to non controlling interests. The headline revenue figure will also include Mike Ashley’s share of sales from Rangers Retail.
Any dividends received from Rangers Retail will also reveal whether we have been able to extract any cash from the joint venture.
3/ What are the underlying monthly costs of running the club?
The average monthly costs excluding retail for the 13 months to June 2013 were £2.4m. The run rate for 6 months to 31 December 2013 will reveal whether much progress has been made