LONDON (Alliance News) - Rangers International Football Club PLC Thursday said it narrowed its losses and reported a 38% increase in revenues in the first-half of the year, but the club said it swung to a net loss from a profit the year before, when it benefited from a one-off gain of GBP16.7 million.
Rangers International Football Club PLC is a holding company for the Scottish Rangers Football Club.
For the six months to December 31, 2013, the club's revenues rose 38% to GBP13.2 million, from the GBP9.5 million reported in the comparative period, and its operating loss almost halved to GBP3.6 million, from GBP7.0 million the prior year.
However the group swung to a pretax loss of GBP3.5 million, compared with a profit of GBP9.5 million, due to a GBP16.7 million gain from the release of negative goodwill in the prior year related to negative goodwill arising from the purchase of the trade and assets of RFC 2012.
In June 2012, the club acquired the business and assets of RFC 2012 from its administrators, having been placed in liquidation.
Approximately 36,000 season tickets were sold in the first-half, the club said, with average match day attendances of over 40,000.
Although ticketing revenue for the period fell slightly to GBP6.3 million, from GBP6.4 million, partly due to the company deciding not to increase the prices of season or match day tickets between the seasons 2012/13 and 2013/14.
It said revenue from Cup competitions fell by GBP0.6 million, due to an earlier exit from the League Cup, although it said this was offset by an increase in hospitality sales volumes and income from a pre-season friendly game against Newcastle United.
The club said its retail partnership with Sports Direct International PLC, which took effect in September 2012, saw an encouraging increase in revenue to GBP4.8 million, from only GBP0.9 million, which included three new kit launches.
The club ended the period with GBP3.5 million of cash, compared with GBP21.2 million at December 31 2012, and GBP11.2 million at June 30 2013, as it spent money on its operations as well as capital expenditure on getting Wi-Fi for the stadium, LED advertising boards and stadium screens.
Rangers International FC said that it is making good progress repositioning the business, and it expects a comprehensive business review of the club to be completed by end of April.
Earlier in the week, the Scottish football club said that it has entered into two secured short-term credit facilities for up to GBP1.5 million, which it will used for general working capital over the next few months. It said the credit facilities are being provided by Alexander Easdale, a shareholder in the company and director of The Rangers Football Club Ltd, the group's subsidiary.
"In the medium term, as part of the developing vision for the future of the club, we will put in place an appropriate financing structure, responsive to investment needs," it said.
Rangers International FC shares were down 1% Thursday at 31.20 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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