Annual Accounts

[ian1964 10,410]

On Brian's Interview

 

By Andy McGowan | Contributor

 

http://www.thecoplandroad.org/2013/10/on-brians-interview.html#more

[BlueMazza 0]

Right at the beginning of that article, but FC Brave is my new favourite thing

 

Anyway, back to reading about us, honest gov

[BlueMazza 0]

Good article and thoroughly shows how little Stockbridge actually told us yet again. The one good thing to come out the whole sorry Rangers mess, is finding the gems in the support who can analyse & write blogs/articles well.

[ian1964 10,410]

Rangers financial results fall well short of Board expectations

 

By Leather Jacketed CA

Updated Wednesday, 2nd October 2013

 

Performance and expectations may not coincide.

 

As an intellectual exercise I have just looked out the IPO document prepared by Cenkos when fundraising to measure it against Finance Director Brian Stockbridge's assertion that performance was in line with expectation. Note these forecasts were dated 29 October 2012.

 

I have compared the forecasts in the Cenkos document circulated as part of the fundraising process with the club accounts just issued.

 

 

 

For the period to 30th June 2013:

 

Forecast Sales £32.2m v Actual Sales £19.1m

 

Forecast Operating Costs £31.5m v Actual Operating Costs £32.0m

 

Forecast Operating Loss £1.1m v Actual Operating Loss £14.4m

 

Forecast Closing Net Cash £22.7m v Actual Net Cash £11.2m

 

 

 

I also examined the profit forecast circulated by Mr Stockbridge on 21 January 2013 with the December Management Accounts.

 

He forecast an Operating Loss of £6.8m compared to the actual loss of £14.4m, so the published results are not remotely in line with previously expressed expectations.

 

http://www.followfollow.com/news/tmnw/rangers_financial_results_fall_well_short_of_board_expectations_808849/index.shtml

[bossy 0]

Rangers financial results fall well short of Board expectations

 

By Leather Jacketed CA

Updated Wednesday, 2nd October 2013

 

Performance and expectations may not coincide.

 

As an intellectual exercise I have just looked out the IPO document prepared by Cenkos when fundraising to measure it against Finance Director Brian Stockbridge's assertion that performance was in line with expectation. Note these forecasts were dated 29 October 2012.

 

I have compared the forecasts in the Cenkos document circulated as part of the fundraising process with the club accounts just issued.

 

 

 

For the period to 30th June 2013:

 

Forecast Sales £32.2m v Actual Sales £19.1m

 

Forecast Operating Costs £31.5m v Actual Operating Costs £32.0m

 

Forecast Operating Loss £1.1m v Actual Operating Loss £14.4m

 

Forecast Closing Net Cash £22.7m v Actual Net Cash £11.2m

 

 

 

I also examined the profit forecast circulated by Mr Stockbridge on 21 January 2013 with the December Management Accounts.

 

He forecast an Operating Loss of £6.8m compared to the actual loss of £14.4m, so the published results are not remotely in line with previously expressed expectations.

 

http://www.followfollow.com/news/tmnw/rangers_financial_results_fall_well_short_of_board_expectations_808849/index.shtml

 

I think that management were hoping that merchandise sales would take off and we could get some of the way back to where they were pre-JJB. Clearly that has not happened.

[ian1964 10,410]

Question time on Rangers' accounts - Richard Wilson

 

RANGERS International Football Club released their much-anticipated audited accounts for the 13 months to June 2013, the first since the consortium led by Charles Green bought the business and assets of Rangers Football Club plc in liquidation last summer.

 

There will now be an annual general meeting on October 24, at which the current directors will be up for re-election.

 

As unrest grows amongst supporters at board and the way the club has been run, Greig Cameron, Deputy Business Editor of our sister paper The Herald, and sportswriter Richard Wilson analyse the accounts and what the figures mean.

 

What are the headline figures from the accounts?

 

Rangers made an operating loss of £14m on a turnover of £19.1m. Rangers raised a total of £35.2m in finance, £22m of which was from last December’s Initial Public Offering of Shares.

 

As of June, there was £11.2m cash left in the bank, which included £4.5m of season ticket renewal income. Operating expenses were £33.6m, with £13.3m attributed to “other operating charges”, and staff costs of £17.9m, with £7.8m representing the wages of the playing staff.

 

A release of negative goodwill, a gain occurring when the price paid for an acquisition is less than the value of its net tangible assets, of almost £20.5m was recorded in the profit and loss account.

 

What do these tell us about Rangers’ financial position?

 

It has been a loss-making business and there is very little margin for error in the coming 12 months since there are no credit facilities.

 

An upturn in revenue is projected, and operating expenses have been reduced, but the £11.2m in the bank will be required for running costs unless there is a significant change to the business model.

 

Having raised funds through a share issue, and banked revenues principally from season ticket sales, sponsorship and retail, the decision to maintain the infrastructure of a top-flight club has prevented Rangers from building up cash reserves for their eventual return to the Scottish Premiership.

 

The club’s turnover to wages ratio of 43% is higher than the IPO prospectus projections.

 

While the Finance Director Brian Stockbridge points out savings in areas such as security, insurance and facilities, there is clearly still work to be done until the business is living within its means. It remains relatively debt free and with a strong asset base.

 

What has happened to the money raised in the IPO?

 

In effect, it has been spent, even though the share prospectus said that the money would not be used for working capital.

 

Property assets have been purchased in Edmiston House (£800,000) and the Albion car park (£1.6m).

 

A further £2.2m was invested in stadium improvements, such as improving advertising hoardings and the large screens.

 

Edmiston House will need to be refurbished before it provides income, however, and unless income streams improve dramatically there does not appear to be enough cash available to fund any renovation work. £6.75m was also spent “to acquire the assets from the administrators”.

 

Rangers were due £16.1m in proceeds from the £22m raised in the IPO, which makes the costs involved to be £5.9m. The prospectus projected the costs to be £2.5m.

 

Will Rangers need additional investment?

 

The business has been signed off as a going concern, meaning that the directors and the auditors are confident that it will meet its requirements over the coming 12 months.

 

Even so, as Rangers rise through the leagues, more investment will be needed for the football operation and while revenue will also rise, it is evident that the business will need additional investment unless further cuts are made to expenditure.

 

An issue of further shares to raise money cannot be ruled out.

 

How do the audited accounts compare to the last set of audited accounts for Rangers?

 

The last set of audited accounts for Rangers Football Club plc was for the 12 months to June 30, 2010.

 

Those showed turnover of £56.3m, net operating expenses of £43.86m, operating profit of £5.1m and pre-tax profit of £4.2m. Gate receipts in a year when Rangers played in the Champions League against Unirea, Stuttgart and Sevilla, won the League Cup and reached the quarter-finals of the Scottish Cup were £25.8m.

 

Sponsorship and advertising revenue was £2.9m, broadcasting £3.76m and commercial revenue of £21.7m. Total directors’ remuneration was at £832,000 with the highest paid, likely to have been Martin Bain, receiving £633,000.

 

Are these accounts likely to quell the recent fan protests against the directors?

 

Some opinions are entrenched, but there are some Rangers supporters who remain undecided.

 

The figures do not make for good reading and the boardroom machinations of the past 12 months have also undermined confidence.

 

The IPO money was supposed to fund the regrowth of Rangers, but has in effect simply sustained the operation of the club.

 

The £933,376 paid to Charles Green, the former chief executive, including a £217,850 severance package, will irk fans, as will the 100% bonus that took Stockbridge’s emoluments to £409,308 and the total directors’ remuneration of £1.6m. Ally McCoist, the manager, has agreed to take a wage cut, but he was paid £825,858 during the accounting period.

 

Is Charles Green now no longer associated with the club?

 

No, despite reducing his shareholding to less than the notifiable interest – 3% – Green remains a director of Garrion Security Services, which is owned by Rangers, and Rangers Retail, a joint venture with Sports Direct.

 

Is it significant that Strand Hanson have stood down as the company’s Nomad?

 

The nominated advisor (Nomad) acts as an effective regulator of the AIM-market.

 

While it is not unusual for companies to change Nomad, Daniel Stewart & Company will be the third to work with RIFC since its flotation in December last year. That much chopping and changing is unlikely to give confidence to institutional investors.

 

What will now happen at the annual general meeting on October 24?

 

That remains uncertain. A group of shareholders, representing around 28%, want to nominate four replacement directors, as well as voting off the current board.

 

However, the incumbent directors have refused the request. With fans agitating for change also, the mood of the AGM is likely to be fraught. The significance of the occasion depends on whether agreement can be reached on the nominations.

 

http://www.eveningtimes.co.uk/rangers/question-time-on-rangers-accounts-138068n.22315330

[forlanssister 3,050]

Another interesting and fair analysis from Arnold Black at TRS:

 

http://www.therangersstandard.co.uk/index.php/articles/current-affairs/288-an-analysis-of-the-rangers-accounts

 

Rangers also own 51% of Rangers Media Ltd but that company has not started to trade.

 

Don't we own 100% of Rangers Media Limited?

 

We own 51% of Rangers Retail Limited in partnership with Sports Direct Limited but when it comes to matters financial Sports Directs shares effective double to 98 against RIFC's 51 therefore giving Sports Direct effectively complete control of Rangers Retail and one of our major income streams.

[Frankie 8,148]

Not sure mate. Might be a mistake from Arnold...

 

I'll ask him on Twitter.

[Frankie 8,148]

Yeah, you were right mate - error from Arnold. I'll amend the article.

[Zappa 0]

I think that management were hoping that merchandise sales would take off and we could get some of the way back to where they were pre-JJB. Clearly that has not happened.

 

Both of the forecasts Leather Jacketed CA has looked at and compared there were from before Green & co had even got us a kit deal, so if they included any sort of hopes that merchandise sales would take off then they would need to be completely fabricated.

 

It's certainly very clear that Stockbridge is no stranger to exaggerating potential growth and massaging the figures in forecasts. Remember, this is the same guy who came in with the bastion of truth Charles Green and sat with him talking nonsense about £100m a year turnover potential.

 

Moonbeams and lies followed by deflection and denial are the order of the day with these clowns. The sooner they're gone, the better.