Rangers Make £8.3 Million Loss

Rangers made an operating loss of £8.3million last season and need to recoup those losses in the next 12 months, the club revealed in their annual accounts.

The figure was an improvement on the previous 12 months, which saw a £14.4million loss.

The club recently secured a £3million loan from shareholder Mike Ashley but the report warned they would need an extra £8million investment in the next 12 months.

The strategic report of the Rangers International Football Club accounts states: Without taking account of the possibility for refinancing the £3million short term loan facility falling due for repayment in April 2015 or of the impact of any cost reduction measures or of any other potential sources of revenue, such as player transfer or loan fees, the forecast identifies that the group will require up to £8million by way of debt or equity finance within the next 12 months.

The forecast indicates that these significant further funds will be required in early 2015, the first tranche of which being required in January 2015, to meet day to day working capital requirements.''

Comments from the club's independent auditor, Deloitte, added: The group requires additional funding to continue to meet its liabilities as they fall due.

The group has made key assumptions in relation to its ability to secure further funding in addition to the timing and value of season ticket income, increases in matchday income and sponsorship, the timing and value of dividends and further cost reductions.

These conditions around the need to secure further funding, along with the details provided in note 1 of the financial statements, indicate the existence of a material uncertainty which may cast significant doubt over the group's ability to continue as a going concern and therefore that the group may be unable to realise its assets and discharge its liabilities in the normal course of business.''

The note stated that Rangers expect promotion to the top flight this season, and consequent uplift in season ticket income and other revenue in the summer.

Ally McCoist's team fell nine points behind Scottish Championship leaders Hearts last weekend, but there is the opportunity of progressing through play-offs if they were to miss out on the title.

The accounts showed that total revenue was up almost a third to £25.2million with retail revenue almost quadrupling to £7.6million. Sponsorship and advertising revenues nearly doubled to £1.5million.

But the continuing need for cash places an ongoing question mark over the club's finances, despite Rangers also taking in more than £3million in a share offer this season, not long before securing the loan from Ashley.

The club announced they would seek approval of a special resolution to issue equity securities and sale of treasury shares'' when they hold their annual general meeting on December 22.

Staffing costs fell by more than £3million to £14.7million but these savings were wiped out by an increase in other operating charges'', which rose to £16.4million.

The report stated that these charges include matchday costs, such as policing, stewarding and pitch costs'' and attributed the risemainly to the increased costs of sales in the retail business that is to be expected with the improved performance in our retail operation''.

The accounts showed that former chief executive Graham Wallace earned £378,000 from the day he joined the company on November 20, 2013, until the end of June, almost half of which was a bonus. Wallace also earned a £100,000 pay-off when he quit last month.

Former finance director Brian Stockbridge, who left halfway through the season, earned £218,000, much of it from a share option, despite handing back bonus money. The club also stated that Stockbridge earned a £216,000 severance package.

Craig Mather, Wallace's predecessor as chief executive, received a £350,000 severance deal.

Philip Nash made £131,412 in consultancy fees in the first six months of this year. Nash resigned as a director along with Wallace when the Ashley loan was accepted ahead of two other offers in October, one from Brian Kennedy and another from Dave King.