Accounts out this morning

[boss 1,941]

only if we face no major unexpected costs. Have the auitors not marked us as a going concern until september or is that wrong?

That's wrong. The auditors are satisfied that we are a going concern for the foreseeable future.

[OLE SUPER WILBERT 2,475]

£14m loss is never a good thing. But if you focus on what the numbers actually mean then things look a good deal better than they did 12 months ago.

And what do they mean?

[TheBluebells 6,898]

So are we actually ok or is it just better than we thought it would be?

[mitre_mouldmaster 21,509]

Revenue increasing and costs decreasing will narrow the gap in the current year by much more than £4m. IMO revenue alone will narrow the gap by much more. In addition to the £11m in the bank we had an unsecured facility of £2.5m which is not expected to be needed. We aren't running out of money any time soon.

I agree that we can raise the extra revenue required to cover the £4m gap for the coming year. The mercahndising deal itsself could make up a large part of it, if not all.

The trouble I see is not in the 2013-2014 season as we have the cash reserve to see us through. I see the trouble more in the MTP when we go into 2014-2015.

If we have eaten most of our cash reserve, then we will ahve to bridge a £14m gap, not a £4m gap. To increase revenue this substancially in 2 years will be very difficult.

I can see that we have scope to increase or revenue, but I dont know how significantly we can reduce the operational cost side of the business. I dont see our player wage bill dropping now. Exec renumeration should certainly be slashed, but that will only have a small effect.

I do think that we will be requiring additional funding in the 2014-2015 season, as I dont think we will be break even by then.

[Shuggy 1,308]

Revenue increasing and costs decreasing will narrow the gap in the current year by much more than £4m. IMO revenue alone will narrow the gap by much more. In addition to the £11m in the bank we had an unsecured facility of £2.5m which is not expected to be needed. We aren't running out of money any time soon.

I think there was also a forward looking statement that the club did not expect to be in profit next financial year? Section 20:

"At the balance sheet date, the Group has unused tax losses of £3,772,000 available for offset against future profits. No deferred tax asset has been

recognised as it is not considered probable that there will be future taxable profits available in the foreseeable future to utilise the losses."

So taking onboard the statement about not using the £2.5M bank facility would suggest we're aiming at break even/small profit/small loss next year - which would be perfectly acceptable to me!

The one thing at the back of my mind was whether players wages were on an escalator as they rose thru the leagues? Sandaza's contract came to mind.

[Albertz 78 918]

Can someone tell me how everyone is so happy that we have lost over £14m

£14m LOSS

How can that be good ?

We will be in admin in 2 yrs time at that rate

No we won't the big problem right now is that our income from season ticket sales has fallen by 33% from when we played in the spl Despite selling 38k and 35k respectively over the last 2 seasons.

Next year we'll see a hike in ST prices which should cut the loss and with a much better team in place as well we should see better runs in the cup as well as more income from merchandise etc.

We will still make a loss for the next few years but i think the club will be able to bring in some extra funding to cover that short to mid term.

It's not going to be an easy few years by any means but if the club is run right from this point on we should be okay.

[boss 1,941]

And what do they mean?

Primarily the accounts mean:

- we are not going bust any time soon

- we have enough money for the foreseeable future

- we are on course to break even this year or next

- and we own Ibrox and Auchenhowie

[OLE SUPER WILBERT 2,475]

Primarily the accounts mean:

- we are not going bust any time soon

- we have enough money for the foreseeable future

- we are on course to break even this year or next

- and we own Ibrox and Auchenhowie

So why did we lose £14m in a year?

[mitre_mouldmaster 21,509]

I think there was also a forward looking statement that the club did not expect to be in profit next financial year? Section 20:

"At the balance sheet date, the Group has unused tax losses of £3,772,000 available for offset against future profits. No deferred tax asset has been

recognised as it is not considered probable that there will be future taxable profits available in the foreseeable future to utilise the losses."

So taking onboard the statement about not using the £2.5M bank facility would suggest we're aiming at break even/small profit/small loss next year - which would be perfectly acceptable to me!

The one thing at the back of my mind was whether players wages were on an escalator as they rose thru the leagues? Sandaza's contract came to mind.

This is wrong.

We have a cash reserve of c£11m we could eat into next year before requiring to use the credit facility.

This indicates that the accountants dont anticipate us running at any more than a c£11m loss next year.

[boss 1,941]

So why did we lose £14m in a year?

Have you been sleeping for the last few years? Genuine question.

[trublusince1982 768]

You appear to be hurting. Are you hurting?

yes of course im hurting we are £14m down with revenues slipping not increasing. All your future predictions rely on hope. Hope the revenue increases and hope the costs decrease, absolutly nothing on how any of that will be achieved while blaming one off cost's and once again not taking into account the one off costs we will have next year( Several million for refit of edmiston and fixing of storm damage at auchonhowie). We have spent our ipo cash and two thirds of season tickets this year and have managed to not create one single new revenue stream that shows any promise of return in the next season.

So stick your silly wee attitute up your arse i am not like you, i support rangers not one regime against another like you. Show me one area of revenue or expentiture from the club which is providing signifigant gains in the near future. I couldnt care less about who is in charge all i care about is whether they are successful or not.

[mitre_mouldmaster 21,509]

Primarily the accounts mean:

- we are not going bust any time soon

- we have enough money for the foreseeable future

- we are on course to break even this year or next

- and we own Ibrox and Auchenhowie

The accounts in no way suggest we are on track to break even this year!!!!!!!

[boss 1,941]

This indicates that the accountants dont anticipate us running at any more than a c£11m loss next year.

The point you are failing to grasp is that the auditors are satisfied the going concern basis is appropriate for the foreseeable future. If projections indicate we will run out of money not in 12 months but in 18 months, these accounts could not have been signed off.

[boss 1,941]

yes of course im hurting we are £14m down with revenues slipping not increasing.

Show me one area of revenue or expentiture from the club which is providing signifigant gains in the near future.

Really?

Retail

Sponsorship

Ticket sales

Corporate

Media

[boss 1,941]

The accounts in no way suggest we are on track to break even this year!!!!!!!

I said "this year or next", I think next is more likely.

[Redwhiteandblue 3,330]

I am criticising his wages. In fact, I think what some are on at Ibrox is an absolute disgrace. Surely you can't think being a manager in a lower league of Scotland justifies being paid more than some English Premiership gaffers?

His wages, his backroom staff wages and some players wages are way over the top.

I don't think it's a good thing, quite the opposite.

It was the wording (and the fact you mentioned it three times between two pages) that made it come across as a dig at Ally rather than a dig at the structure.

I'm not a fan of Ally by any stretch, in fact, I was probably the only one on this site that said it was a bad idea to give him the job before he even got it. I got slagged rotten for saying I didn't think he was the right man, I still have that opinion, but I will defend the man 100% until I have reason not to.

If you genuinely were not having a dig at Ally for signing a contract that not one of us would have knocked back (you assume your boss knows what he's doing) then I don't have a problem.

[lutonblue 1,974]

You belong on medication, you unhinged little goblin.

sorry 1st jan that did make me laugh

[Shuggy 1,308]

This is wrong.

We have a cash reserve of c£11m we could eat into next year before requiring to use the credit facility.

This indicates that the accountants dont anticipate us running at any more than a c£11m loss next year.

Not sure about that. I have cash reserves, but I still use credit facilities (i.e. a mortgage).

[Ace 3,556]

First of all, let me say that I am one of those who have said all along #SackTheBoard and i'm still in that camp but absolutely willing to be swayed by facts or reason arguments, so I have a few questions ...

*** Did we burn through £50m over the past 14 months?

Reasons: We raised £22m in IPO Money, We had £12m in Pre-IPO Money, We had £8m in 2012-13 ST Sales & the same for 2013-14 ... is this detailed in the accounts or has this been complete spin ?

*** It appears the club has paid for it's own purchase eg £6m ... is this the case?

Many keep claiming in here that Minico have nothing to stand on because no money has been put in by them ... well, if we have paid the £6m back, then no money was put in by ANYBODY !!

*** We all agreed, myself included, it was fine the CG was here to make money while at Rangers but does that justify the exorbitant salaries & bonus' paid to each of them .. by themselves, GUARANTEED bonus' based on team performance rather than financial !!

*** Why did the board allow the wage bill to sit at £18m?

The accounts show £18m of wages with a £20m turnover, surely the board had to look at that and reduce the wage bill across both playing & non-playing staff

*** Why was the IPO money allowed to be used as working capital and not used to underpin a more solid financial base ... or was it used exactly for that?

[Carsons Dog 9,878]

BREAKING NEWS JUST IN

Minico memebers, RST members along with certain other individuals spotted acting crazy

Sure I spotted the Sons of Struth there as well

[woodvale1690 43]

you also forget last years shirt sales will only show in 13/14 accounts on top of this years, and you can take that to the bank

[loyalfollower 1,543]

The boatd should have their salaries halved. No bonus until we make a profit and return to Europe

[mitre_mouldmaster 21,509]

The point you are failing to grasp is that the auditors are satisfied the going concern basis is appropriate for the foreseeable future. If projections indicate we will run out of money not in 12 months but in 18 months, these accounts could not have been signed off.

You sure about that?

"http://www.frc.org.uk/Our-Work/Publications/APB/570-Going-concern.aspx"

It seems to be suggesting the auditors role should not extend beyond the period assessed by management, which should be no less than 12 months.

Can you please explain to me why this is not applicable in our case?

[mitre_mouldmaster 21,509]

I said "this year or next", I think next is more likely.

If you think it is possible this year, you have to be the most optimistic accountant I have ever heard of!

[King Jela 20,343]

The only downside about getting good news fom this is that the tarriers are going to turn the heat up on the complaints about the armed forces, even more.