Rangers announce six-figure operating profit for second half of 2016
Rangers have announced an operating profit of almost £300,000 for the last six months of 2016.
Rangers have announced an operating profit of almost £300,000 for the last six months of 2016.
The unaudited results for the Rangers International Football Club PLC showed an increase in revenue of £5.3million compared with the same period in 2015, when the team were competing in the Ladbrokes Championship.
Operating profit was listed as £294,000, compared to a loss of £532,000 in the second half of 2015.
With taxation and loss on disposal of fixed assets and player registrations taken into account, plus "other charges" of £451,000, the income statement shows a loss for the period of £238,000.
Rangers said the improved revenue of £16.3million was down to three factors: bigger attendances, which brought in an extra £3.5million; greater league income following promotion (£800,000); and "much-improved" sponsorship and commercial revenues.
Operating expenses increased by £4.1million because of a substantial increase in squad costs, an increase in match-day costs following promotion, and an increase to "overheads".
The statement added: "The club is well on its way to achieving a sustainable business model while continuing to invest in infrastructure and the player squad.
"Reliance is still placed on shareholders to fund the shortfall that is required during the current rebuilding phase.
"Whilst additional funds are available if required by the club, no further funding from investors is anticipated in the balance of this financial year to June 2017 due to the team's football performance and progression to the William Hill Scottish Cup semi-finals."
The club has this week faced Sports Direct in London's High Court over the controversial retail arrangements put in place by a previous regime.
The statement said: "Resolution of the ongoing dispute with Sports Direct is the only significant issue that still adversely affects the trading performance. Executive management is increasingly able to focus its attention on the club's core footballing activities."