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Financial results fall below boards expectations, according to leather jacket


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Someones not happy, oh dear. :matron:

Rangers financial results fall well short of Board expectations

Rangers financial results fall well short of Board expectations

By Leather Jacketed CA

Updated Wednesday, 2nd October 2013

Views: 882

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

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Someones not happy, oh dear. :matron:

Rangers financial results fall well short of Board expectations

Rangers financial results fall well short of Board expectations

By Leather Jacketed CA

Updated Wednesday, 2nd October 2013

Views: 882

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.

And you are "happy" with that?

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Depends waht accounting terms they are talking about.

Expectations at the start of the year would have been STP (short term plan). Throughtout the year, projections are revisited and form RAFs (forecasts). There are usually about 4 RAFs in the year, RAF1 being in line with STP, the others being updated on a quarterly basis.

The boards STP was way off the mark, but the figures may reflect on of the later RAFs allowing the board to say it was in line with what was expected.

I dont really agree with the board saying the results are good, they are not. Serious action needs to be taken to get us back on track.

I dont blame the board for the results, circumstances and problems carried over from Green's tenure contributed.

They still need to prove that their future plans will see us through, im open on them staying, but they really need to get the finger out. If another aprty have better plans, I will back them.

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Sorry, dont follow you here. What is the flaw in the logic?

That the forecasts were projected by Cenkos rather than the club?

Ah, the timing.

Projection was before the current board were in place. I.e. the current board may have had different expectations of the potential income.

Yea, valid point to be fair.

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Sorry, dont follow you here. What is the flaw in the logic?

That the forecasts were projected by Cenkos rather than the club?

Forecast Operating Costs £31.5m v Actual Operating Costs £32.0m......ergo we spent 500k more than forecast, hardly armageddon not even close. (tu)

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Forecast Operating Costs £31.5m v Actual Operating Costs £32.0m......ergo we spent 500k more than forecast, hardly armageddon not even close. (tu)

There was a £12m difference in expected income though.

i.e. the club never delivered the expected revenue.

It is the boards job to bring in money as well as minimise cost.

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

I have never once seen a forecasted loss of 1.1 predicted, ever.

Most on here had thought roughly 12m would be closer to the number, especially considering the high costs at the start of last season.

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nobody expected the income revenues to be as poor as they are, but instead of finger pointing our time would be far better spent learning where we went wrong and why things like hospitality have fallen by 50%.

Pretty sure we have large sections of fans who would go out of their way to help support parts of the club which are failing miserably if informed properly, but unfortunately all avenues of communication with fans are being used for one upmanship instead of driving the company forward.

Minico should not be our boards main focus it should be the poor performance of revenue streams

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There was a £12m difference in expected income though.

i.e. the club never delivered the expected revenue.

It is the boards job to bring in money as well as minimise cost.

I am awaiting clarification on something that may explain matters from someone at the sharp end, hopefully soon. (tu)

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nobody expected the income revenues to be as poor as they are, but instead of finger pointing our time would be far better spent learning where we went wrong and why things like hospitality have fallen by 50%.

Pretty sure we have large sections of fans who would go out of their way to help support parts of the club which are failing miserably if informed properly, but unfortunately all avenues of communication with fans are being used for one upmanship instead of driving the company forward.

Minico should not be our boards main focus it should be the poor performance of revenue streams

Spot on, and I am guessing as soon as minico stops distracting the current board with his pish, then they can do exactly that.

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