November 28 – Scottish club giants Rangers are seeking new investment to plug an anticipated £8 million requirement over the next year, but cash is likely to be needed as soon as January. The club said it will seek the funds via a fresh share issue after announcing an operating loss of £8.3 million for the year to 30 June 2014.
Rangers were dropped to the fourth tier of the Scottish league system for breaking the league’s financial rules in 2012 after declaring bankruptcy and being sold by the receiver.
Since then the club has had back-to-back promotions and currently lies second to Hearts in the Championship but in the accounts says it is now not expecting promotion back into the Scottish Premier League this season.
Although operating in a higher league than last season, the club said it had reduced costs. At £8.3 million the losses are down on the previous year’s £14.4 million loss.
Financial highlights from the report show revenue is up by 32% to £25.2 million, retail revenue increased to £7.6 million from £1.6 million, and sponsorship and advertising rose to £1.5 million.
Auditor Deloitte said: “The group requires additional funding to continue to meet its liabilities as they fall due.”
The club has recently received a £3m loan from shareholder Mike Ashley, who is also owner of English Premier League club Newcastle United. And raising further funds is not anticipated as being a problem with the directors statement stating the club has been “approached by several parties offering funds on a secured basis”.
Chairman David Somers said: “Challenges still remain and despite additional financing having been secured over the year, further funding is necessary to ensure the club’s ability to move forward successfully to achieve the goals we all seek and expect of Rangers Football Club.
“To this end the board will be seeking shareholder approval at the forthcoming AGM to issue additional shares to ensure maximum flexibility for the company to raise equity finance and provide the financial capability required to develop the club in the longer term.”
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