DJ Rangers Football Club Plc Final Results
TIDMRFC
The Rangers Football Club P.L.C.
(the "Club", the "Company" or the "Group")
Final Results
Highlights
* No longer reliant on bank funding
* Turnover at GBP57.2m for 2010/11 was an overall increase of GBP0.9m over the
previous year
* Gate receipts and hospitality sales increased overall by GBP1.3m to GBP27.1m
CHAIRMAN'S STATEMENT
When I became the majority shareholder and Chairman of this great football club
in May this year, the sense of honour and privilege I felt was overwhelming.
Those feelings are stronger than ever within me now.
First, I would like to address what matters most to every Rangers fan -
football. In recent years the performance of the players and the football
management team has been quite magnificent and I would suggest their
achievements rank among the Club's greatest.
Three successive League titles, three out of the last four Scottish League
Cups, plus two Scottish Cups and a UEFA Cup Final appearance is extraordinary
by any standard and set the seal on Walter Smith's outstanding second term as
Manager and a truly remarkable managerial career. Every Rangers supporter owes
him an enormous debt of gratitude.
Walter also left the Club in good hands and Ally McCoist, Kenny McDowall and
Ian Durrant are showing the same tremendous drive for success. All of us wish
them - and the players - continuing success this season.
In May, the Club entered a new era both on and off the pitch. Whilst this
Statement covers the 12-month period ending on 31 June 2011, it also affords us
the opportunity to look forward.
I am the first to recognise the contribution that my predecessor as majority
shareholder, Sir David Murray, made to Rangers over 20 years. With any change
in ownership, however, there will be a change in approach and I firmly believe
the changes I have implemented will be in the longer-term interest of the Club,
which must always come first.
We have a new Board. In addition, we have appointed a new Chief Operating
Officer to drive the business forward and take advantage of emerging
opportunities and a Director of Football, whose role is to help Rangers
maximise every opportunity to develop, attract and retain playing talent, as
well as ensure the Club engages productively with football authorities at
domestic and international level.
Perhaps the biggest change that has been effected since the takeover in May has
been the repayment of all bank borrowings. The Club is no longer reliant on
bank funding, nor does any bank control our operations on a daily basis.
I hope fans would share my view that, looking ahead, the Club should do
everything to live within its means and operate on a commercially viable basis.
I firmly believe that is the only sustainable, long-term strategy for Rangers.
Performance on the field has a direct bearing on the Club's business
performance. Participation in the UEFA Champions' League remains important
although increasingly difficult to achieve given the qualification process for
the SPL champions.
During 2010/2011 we qualified for the UEFA Champions' League and played in the
UEFA Europa League. Turnover at GBP57.2m for 2010/11 was an overall increase of GBP
0.9m over the previous year. Gate receipts and hospitality sales increased
overall by GBP1.3m to GBP27.1m, due to the extra European games games, although
there was an overall reduction in season ticket sales, hospitality sales and
sponsorship revenue.
Net operating expenses increased by GBP3.6m to GBP47.5m reflecting increased salary
levels, higher European fixture costs and operational cost increases across the
business.
The Club remains embroiled in historical tax issues with Her Majesty's Revenue
and Customs, primarily the tax tribunal on Employee Benefit Trusts. It has been
a dark cloud hanging over the Club for far too long and any resolution must
enable the Club to move forward.
Rangers has never been short of challenges in recent years and there is no
question there are many challenges ahead for both the Club and Scottish
football in general. However, I am certain that, as a Club, we can rise to
these challenges and deliver success both on and off the pitch. That is what
Rangers is all about.
I would like to take this opportunity to thank all supporters who have offered
me so much encouragement. Your support for the Club is inspirational and I can
only promise to ensure that the interests of Rangers and our fans will be at
the heart of everything I do as Chairman.
Craig Whyte, Chairman
Unaudited Consolidated Profit & Loss Account
for the year ended 30 June 2011
2011 2010
GBP'000 GBP'000
Turnover 57,183 56,287
Net operating expenses (47,525) (43,856)
Trading profit / (loss) 9,658 12,431
Amortisation of player registrations (8,412) (7,339)
Operating profit / (loss) 1,246 5,092
Exceptional items:
Gain on disposal of player registrations 4,202 512
Taxation of Discount Option Scheme (3,270) -
Profit / (loss) before interest and taxation 2,178 5,604
Interest payable (2,102) (1,395)
Profit / (loss) on ordinary activities before 76 4,209
taxation
Taxation - -
Profit for the year 76 4,209
Basic and diluted earnings per share 0.07p 3.87p
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year.
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. The Group has 1,200,000 of potential dilutive ordinary shares at 30
June 2011. As the current share price is below the option price, the basic and
diluted earnings per share is the same.
The Directors do not recommend the payment of a dividend (2010: nil).
Unaudited Consolidated Balance Sheet
as at 30 June 2011
2011 2010
GBP'000 GBP'000
FIXED ASSETS
Tangible assets 116,856 118,688
Intangible assets 8,626 11,594
Investments - -
125,482 130,282
CURRENT ASSETS
Stock 2 2
Debtors 5,899 5,640
Cash at bank and in hand 8,893 348
14,794 5,990
CREDITORS
Amounts falling due within one year (49,065) (27,568)
NET CURRENT LIABILITIES (34,271) (21,578)
TOTAL ASSETS LESS CURRENT LIABILITIES 91,211 108,704
CREDITORS
Amounts falling due after more than one year (20,369) (37,938)
NET ASSETS 70,842 70,766
CAPITAL AND RESERVES
Called up share capital 10,879 10,879
Share premium account 120,973 120,973
Capital reserve 9,185 9,185
The Rangers Bond 7,736 7,736
Revaluation reserve 57,207 57,770
Profit & loss account (135,138) (135,777)
SHAREHOLDERS' FUNDS 70,842 70,766
Unaudited Consolidated Cash Flow Statement
for the year ended 30 June 2011
2011 2010
GBP'000 GBP'000
Reconciliation of Operating Profit to
Net Cash Inflow / (Outflow) from Operating Activities
Operating profit 1,246 5,092
Depreciation 2,265 2,416
Amortisation of intangible fixed assets 8,464 7,391
Advance royalty release (1,450) (1,450)
Capital grant release (222) (226)
Loss on disposal of fixed assets 35 27
Decrease in debtors 210 2,262
Increase in creditors 2933 (3,356)
Outflow on termination of discontinued (178) (260)
operations
Net cash inflow from operating activities 13,303 11,896
Cash Flow Statement
Net cash inflow from operating activities 13,303 11,896
Returns on investments and servicing of (1,228) (1,392)
finance
Taxation - -
Capital expenditure and financial investment 948 (6,460)
(MORE TO FOLLOW) Dow Jones Newswires
November 30, 2011 11:30 ET (16:30 GMT)
Cash inflow before financing 13,023 4,044 Financing (783) (1,328) Increase in cash 12,240 2,716 Reconciliation of net cash flow to movement in net debt Increase in cash 12,240 2,716 Decrease in debt 783 1,328 Movement in net debt in the period 13,023 4,044 Net debt at 1 July 2010 (27,074) (31,118) Net debt at 30 June 2011 (14,051) (27,074) The financial information presented above has been extracted from the draft unaudited report and accounts of the Company for the year to 30 June 2011. The Company's auditors have not yet finalised their audit report. The Directors of The Rangers Football Club P.L.C. accept responsibility for this announcement. END
(END) Dow Jones Newswires
November 30, 2011 11:30 ET (16:30 GMT)