RANGERS' pre-tax losses have more than doubled for a second year to £14.3m with the chairman Dave King insisting there are no questions being asked about the club's financial strength.
Last year losses for Rangers International Football Club plc stood at £6.8 million and Mr King's family trust then agreed to cover a projected £7.2 million funding shortfall over the next two years - and has now given a similar commitment.
The board say the latest forecasts indicate that at least £4.6m was required for the rest of the season 2018/19 and a further £3m was need for 2019/20 and have received undertakings from investors "confirming that they will provide financial support as it is required".
The final amount required is dependent on future football performance, European football participation and player trading amongst other factors.
The sums are over and above the funds raised by September's £12m share issue.
The board said Mr King's New Oasis Asset Limited would provide additional loans as necessary. He and other investors agreed to extend existing loan facilities to July 2020.
The independent auditor from Campbell Dallas accepts a failure to secure the additional funds would result "in the existence of a material uncertainty which may cast significant doubt as to the group's ability to continue as a going concern".
RIFC said:"The board is satisfied that those parties will provide financial support to the droup as it is required and have satisfied themselves as to the validity of undertakings given and that those parties have the means and authority to provide such funding as and when it is required.
"The board acknowledge that had these assurances not been secured then a material uncertainty would exist which may cast doubt over the group’s ability to continue as a going concern and therefore its ability to realise its assets and discharge its liabilities in the normal course of business.
"It is important to stress that with the appropriate assurances obtained and the continued support of the investors, the board believe that such uncertainty has been removed, and the Company is therefore able to trade as a going concern and discharge its liabilities in the normal course of business."
The losses in the annual report for the year to June 30, 2018, have come as turnover rose from £29.2m to £32.6m and operating expenses rose from £31.3m to £38.9m.
READ MORE: Rangers face £400,000 legal bill as Mike Ashley wins injunction to halt merchandise deal
Mr King said: “Figures can be reviewed in various ways but the underlying and strong message is that Rangers, as a football club and business, continues to move forward.
"It will always be a challenge to meet the demands and expectations of a wonderful support and that is why we continue to invest massively in our infrastructure, team and staff."
He said the costs of rebuilding facilities and various departments were reflected in the costs.
But he said it was important to highlight that the last financial year "saw us normalise our financial affairs to the extent we no longer face questions about our financial strength when dealing with suppliers, other clubs and financial institutions".
He added: “This is an extremely positive change over such a short period and I cannot thank my fellow directors and other investors enough for their continued support which helps drive our club forward."
Interest-free loans of £7.5m were advanced to the club in the year in order to provide working capital facilities and to "support the losses".
Mr King added: "Again we have had to reassess our team management structure and this of course means a further spend, from which we did not shrink and neither will we neglect the infrastructure, which accounts for a huge amount of our spending even if this work goes largely unseen.
“Witnessing the selfless extent to which my colleagues are willing to invest has been truly humbling and the structure of the loans advanced means they can be converted to equity when future share issues are undertaken. So, when analysing the financial statements under review these loans can be viewed as equity and not third-party debt.”
He said the last two years have seen over £20m spent on first-team players supported "by the continued backing of the board and its investors, as well as the fantastic support of the fans".
The report confirms that there remains an unresolved position with its retail activities - a matter of days after Mr King warned of further court action to secure payments it claims it is owed under a past retail agreement with Mike Ashley's Sports Direct. Mr King had warned that court injunctions won by Mr Ashley affecting the current rights to sell club merchandise "will not be the final word".
The annual report notes: "The overall settlement agreement that was reached last year with Sports Direct, performance and communication remains difficult. The Club will continue to do what is best for the supporters and seek to minimise any disruption."
The board added that it was "taking all steps it deems necessary to ensure it returns its retail operations to a profitable and thriving part of the business".
The club said there was "continued and significant" investment in the playing squad to prepare for European football participation as well as in the stadium and infrastructure, notably to the Ibrox roof, the training ground’s fabric and equipment, and trackside electronics.
Revenues from commercial, sponsorship, broadcasting rose by 27%
Season ticket sales reached "hugely impressive" levels rising in the year from 43,253 to 44,658.
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