Football - Stockbridge unconcerned by Rangers loss

Rangers finance director Brian Stockbridge claims the club were never expected to make a profit in the first year after posting losses of £7million for the last seven months of 2012.

PA Sport
Football - Stockbridge unconcerned by Rangers loss
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Rangers are not expected to make a profit until a return to top-flight football

Interim results to December 31 show revenue of £9.5million, with operating expenses of £16.6million. Cash in the bank at the turn of the year sat at £21.2million after Rangers raised £22.2million from its listing on the London Stock Exchange in December.

The figures illustrate the finances since Charles Green's consortium purchased the business and assets of Rangers after the oldco was consigned to liquidation last summer.

Stockbridge told Radio Clyde: "Nobody expects the club to be making a big profit in the first year. We are not about trying to make profit at the expense of everything else.

"We do need to create shareholder value because we are now a public company but it's about approaching things in a sensible way. The existing investors haven't invested to make profits in the first six months, put it that way."

He added: "As long as we have proper, stable financial procedures in place, as long as we continue to push forward and enhance the other commercial revenue opportunities that the club hasn't enjoyed before and as long as we are efficient in what we spend - and we do need to spend on players at the right time as well - then the club can continue for the foreseeable future."

The figures also came as no surprise to finance expert Neil Patey of Ernst and Young. And he believes Rangers - currently sitting top of the Irn-Bru Third Division - may have to secure their return to the Clydesdale Bank Premier League before making a profit.

He told Press Association Sport: "I don't think the fact it's making a loss is a big surprise. The quantum of it, again, is not totally unexpected. It's slightly depressed by the fact the seven month period includes June and July, where there is very low revenue, particularly for Rangers who weren't playing any pre-season friendlies or European football.

"Is it something to be concerned about? I think the most important thing from a fan's point of view is that there is cash of about £21million sitting in the bank, off the back of the IPO fund raised.

"I don't have a crystal ball but I would think it's quite challenging to make a profit until they're back in the SPL. They might come close in the First Division. But I would have thought, from a prudent point of view, any sensible break-even or significant profit can only be achieved when they're back in Europe."

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