AJ Results statement

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RANGERS Football Club have today announced the interim results for the six months to 31 December 2010.

Chairman's Statement

Retained profit before exceptional provisions for the six months to 31 December 2010 amounts to £11.9m, in a period which included our participation as the sole Scottish representative in the UEFA Champions League group stages, set against the impact on core revenue streams of the current economic climate and disruption to fixtures due to extreme weather conditions in December.

Turnover for the six month period decreased by £4.1m to £33.7m due to the reduction in the number of Clydesdale Bank Premier League home games (2010: 7 games; 2009: 10 games), including the absence of the first Old Firm game, in comparison to the prior year. The results also reflect the economic downturn with a 4.9% decline in the number of season tickets sold together with a reduction in sponsorship income. This was partly countered by the improved performance in European competition and qualification into the knockout stages of the Europa League.

Net operating expenses at £21.1m are in line with last year, with base salary costs at similar levels and reduced matchday costs offset by higher maintenance expenditure and provisions for doubtful debts.

The exceptional item reflects a provision for a potential tax liability in relation to a Discounted Option Scheme associated with player contributions between 1999 and 2003. Discussions are continuing with HMRC to establish a resolution to the assessments raised.

The increase in amortisation of player registrations reflects the additions of Jelavic, Weiss and Beattie to the squad, whilst the gain on disposal of player registrations of £3.7m includes Wilson and Thomson compared to the lower gains for Ferguson and Adam in the prior year. After accounting for interest charges including an exceptional provision of £0.9m relating to the Discounted Option Scheme, the retained profit for the six months to 31 December 2010 amounted to £9.0m compared to £13.1m for the same period last year.

Bank facilities have been renewed in the normal cycle until 31 December 2011. However, while we appreciate the support of the Lloyds Banking Group through the Bank of Scotland in extending our credit arrangement and recognising the progress that has been made in developing a template for collaboration, certain provisions imposed on the Club continue to compromise, in our opinion, management's ability to conduct its role with maximum efficiency. Having said that, as has been widely reported the majority shareholder is currently engaged in ongoing discussion with a view to selling its equity interest in the Club. The outcome of this process could change the role that the Bank will play in going forward in its financial structure.

Distinctly separate from the Discounted Option Scheme, and in touching on HMRC's enquiry into the Murray Group Management Limited Remuneration Trust, I would emphasise that no allegations have been made to suggest any illegal activity, and tax vehicles of this type have been used by a number of companies throughout the country. We continue to vigorously contest HMRC's challenge on the taxation treatment of the Trust and in doing so continue to receive reassuring opinion from tax, accounting and legal specialists.

The Club has been actively involved in current discussions regarding the restructuring of Scottish football, and in particular the Scottish Premier League. However, there are no conclusions as yet to an agreed structure, but we hope that a consensus can be reached to revitalise the game in this country and its standing in European football.

We are all acutely aware of the distractions off the park, but can assure all stakeholders that our objective of adding the SPL trophy to the Co-operative Insurance Cup and providing Walter Smith with a fitting finale is resolute. The strength of the Club is in its collective and unyielding support to achieve footballing success. I thank you for your commitment and passion as we challenge for another title.

Alastair Johnston

Chairman

1 April 2011

Interim Results December 2010

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See Interim results thread.