A difficult meeting and the phantom profit

Without much fanfare, Mr David Cunningham King JETTED IN to have a series of dignified sit downs.

I understand that his conclave with Poor Pedro wasn’t the stuff to encourage Quintessentially British optimism.

The Portuguese genius was told that in the summer he would have to operate on a wage neutral basis.

Moreover, any new signings will be Bosmans on a 48-week contract.

Loan deals where the parent club covers most of the costs will also be utilised.

Essentially the situation that the Admirable Warburton had to operate under for most of his time in at the Engine Room Subsidiary.

In other words, there will be little evidence of “overinvestment”.

Whatever it takes and all that…

I understand that the rebel faction on the Sevco High Command has been seriously unimpressed with the machinations within Club 1872.

However, I’m sure that it will all be resolved in a brotherly and dignified fashion.

Just Perfect and Regular.

Also today the unaudited interim accounts of Rangers International Football Club (RIFC) were released.

I asked Rugger Guy to have a look at them and here is what he sent to me:

 

“Hello Phil

You copied me in on the interim accounts of RIFC and asked me to pass on some comments.

The review of these interim accounts took less than 5 minutes as there is virtually no real information supplied.

These accounts are very similar to last year in a number of respects.

  1. No balance sheet.
  2. No notes to the accounts.
  3. No cash flow statement.
  4. No auditors report.

RIFC has claimed to increase turnover by £5.3m to £16.3m, and operating costs have increased by £4.1m to £15.6m.

RIFC has reported an operating profit of £0.5m, but actually, they have incurred a loss in the period of c £0.3m, the same as last year. I suspect that the other operating charges of almost £0.5 are legal costs, but this is guesswork. I can apply the last sentence to these unaudited results as quite frankly, you have to rely on the honesty and integrity of the directors in producing these numbers.

One interesting comment is that no further monies will be needed in the current financial year to 30 June, although it is stated that monies are available if requested.

The lack of published information is a direct result of losing its AIM listing and clearly provides no meaningful information to shareholders or other interested parties.”

I noticed that there was some high-Level confusion in the radar press that the Holding Company vehicle had actually made a small profit…

Oh dear.

For the avoidance of doubt, they didn’t.

They’re still a loss making business without a credit line from a bank.

I suppose it is just as well that I provide this Samizdat service for you dear reader.

 

Website issues.

I’m aware that the site was inaccessible for several hours today. The cause of this problem is currently being investigated. My thanks must go to my tech support team and my hosting company for their work on this issue.

16 thoughts on “A difficult meeting and the phantom profit”

  1. More feelgood spin from Level 5 . No reason for Sevco to release unaudited midterm accounts.
    Is this a desperate, but transparent, attempt to spin positive financial news ahead of a possible FFP challenge to their participation in Europa League ?
    If so they are fooling no-one bar their own deluded fan base.
    SDI court case, WiFi court case, ex-management court case, Takeover Panel
    decision, wee Joey’s wages etc etc. The fun never stops at the Sevco giggle factory.

    Reply
  2. As someone not familiar with the technicalities and finances of companies, should there not be an interim financial report for TRFC (SC 425159) separate from the interim report for RIFC (SC 437060)?

    Reply
    • In theory yes, but only if RIFC had several other subsidiaries. The end of year accounts have stated for some time that as RIFC only owns TRFC, that the two accounts are joined together. This stops us seeing if RIFC is “officially” loaning money to its operating subsidiary or whether director loans are direct to TRFC.

      Without notes on the accounts and a breakdown of income and expenditure it’s impossible to see what is going on. You would normally expect income such as season ticket income to be spread over the year so that you don’t get a sudden drop income in the second half of the year. However the legal costs, Bartons pay off, the Ibrox 3’s pay out etc will all have been put off until after the end. Also were the loans given in the earlier part of the year included in “income”??

      Reply
  3. Clearly with such magnificent accounts demonstrating profit no one will want to be foolish and cash in shares at 20p?

    On these accounts shares must now be valued up at 60p?

    How convenient is that?

    Reply
  4. We should ready ourselves for the GASL trying to sweep these losses under the carpet in an attempt to secure European football. What are the possible mechanisms to get some sort of investigation? Arbitration for sport?

    Reply
  5. I lost a £50 note yesterday, but I found a tenner this morning on my way to work, but hey I’ve made a profit of 10 quid this week instead of a loss of £40!!!

    this is a unique brand of Sevcoeconomics!!

    Reply
    • King has just stated that ” he works on spread sheets with Chris Graham on a daily basis” will that will fill the guys in City with confidence!!

      Reply
  6. Since the revamp, I’ve not been able to comment.

    Avid readers email address seems to be visible to me in the email address window??

    Reply
  7. Did Dave discuss the share prospectus with the board or even the Three Bears that is expected in a few weeks time when he was here?

    Reply
  8. It is March. The RIFC financial year ends on 30 June 2016. There are four pay days between now and the end of their financial year. They have already relied on directors to pay previous payrolls and they have no significant source of income between now and 30 June. How can they possibly not need further monies before then?

    Reply
  9. You can manipulate the numbers for one set of accounts, however, its hard to do it for three on the bounce.

    Overall it appears Rangers losses have been coming down since Charles Green’s regime left.

    It would be best to have independent assurance over the numbers.

    Your rugger chap doesn’t seem very balanced Phil, its a pretty one sided analysis. Although on here I would imagine that is to be expected.

    Reply
    • Sky reported the same losses but that’s expected from a large corporate figure. rugger guy is correct. with just an MBA to my name i came to the same conclusion as rugger guy. these accounts show a loss.

      Reply
  10. More litigation fees still to come from King v Ashley/Warburton/Weir etc… You’d think the board would try to get him straightened out…

    See he claims one of the Easdales claimed he was doing a fine job as well… I’d love to be able to visit the planet he lives on.

    Reply
  11. Excellent work again, Phil. More of the same then from “Rangers International Football Club” as they were described on the BBC red button news service item………more falsehood’s and lie’s I reckon. Certainly not very “dignified”. They appear to have “no shame” would probably be most accurate.

    Reply

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