Thursday 27 November 2014 20:32, UK
Rangers have announced an operating loss of £8.3million for last season in their annual accounts, a figure which is an improvement on the £14.4million loss for the previous 12 months.
The club recently secured a £3million loan from shareholder Mike Ashley but the report has warned they will need an extra £8million investment in the next 12 months.
The strategic report of the Rangers International Football Club accounts states: "Without taking account of the possibility for refinancing the £3million short term loan facility falling due for repayment in April 2015 or of the impact of any cost reduction measures or of any other potential sources of revenue, such as player transfer or loan fees, the forecast identifies that the group will require up to £8million by way of debt or equity finance within the next 12 months.
"The forecast indicates that these significant further funds will be required in early 2015, the first tranche of which being required in January 2015, to meet day to day working capital requirements."
Comments from the club's independent auditor, Deloitte, added: "The group requires additional funding to continue to meet its liabilities as they fall due.
"The group has made key assumptions in relation to its ability to secure further funding in addition to the timing and value of season ticket income, increases in matchday income and sponsorship, the timing and value of dividends and further cost reductions.
"These conditions around the need to secure further funding, along with the details provided in note 1 of the financial statements, indicate the existence of a material uncertainty which may cast significant doubt over the group's ability to continue as a going concern and therefore that the group may be unable to realise its assets and discharge its liabilities in the normal course of business."
The note stated that Rangers expect promotion to the top flight this season, and consequent uplift in season ticket income and other revenue in the summer.
Ally McCoist's team are currently nine points behind Scottish Championship leaders Hearts but they have the opportunity of getting promotion through the play-offs if they were to miss out on the title.
