Auditors have raised a 'going concern' warning as Rangers announced pre-tax annual losses of £17.793m.

The 36% rise in losses emerged it had raised nearly £13.3m in the space of seven weeks with the sale of 20% of the club.

The Ibrox club's financial results show losses rising by £6.4m for the year ending June 30, 2020.

Both the board of the Scottish Premiership leaders and it's auditor reported a going concern uncertainty.

While all clubs have been hit by having no attendances due to the Covid-19 lockdown, Rangers brought in £59m - a revenue rise of 11%.

That included £20.7m which they had earned as a result of Steven Gerrard's side reaching the Europa League last 16.

Since September 66m shares have been issued - equivalent to 20% of the club.

And the annual report of Rangers International Football Club plc reveals that it forecast it would require £8.8m by way of debt or equity funding by the end of this season in order to meet its liabilities as they fall due.

Further funding of £14.4m was required by the end of season 2021/22.

READ MORE: Shares equating to 20% of Rangers sold for £13m in seven weeks - but to who?

The first tranche of funding was required from investors before the end of November 2020.

The final amount required was dependent on future football performance, European football participation, player trading and the ongoing impact of COVID-19 amongst other factors.


During the year, the club received £21.862m from directors, existing shareholders and other parties for working capital purposes.

The report also showed that salary packages of key management personnel rose by 54% in the year to £1.37m.

The board said that chairman Douglas Park and director John Bennett would provide additional loan facilities as necessary to meet funding shortfalls.

The report said that the duo had "agreed to provide a formal facility with funds being made immediately available to meet short term cash needs with further funds to be made available to draw down as they are required."

It went on: "The board acknowledge that the uncertainty over the level of additional funds that will be required and a lack of a binding debt facility indicate that a material uncertainty exists 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.

"Nevertheless, having secured the offer of further loan funding referred to above, the board of directors believe that there is a reasonable expectation that the group will at all times have adequate resources to continue in operational existence for the foreseeable future."

As at June 30, there are unsecured loans with investors amounting to £15.3 million and other commercial loans of £2.9 million.

Auditor Greig McKnight for Azets Audit Services said there was a "material uncertainty related to going concern" saying the precise level of funding required going forward was uncertain.

The auditor that the risk that key cash flows are not achieved as forecast, along with the absence of a "binding debt facility" for any shortfalls, indicate that a "material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern."

Chairman Douglas Park said the club expect to lose £10m from playing matches behind closed doors in the current season but had an upbeat message.

He said: "I am confident in your board and our employees to face these challenges with the backing of our magnificent loyal supporters."

He added: "The financial year under review is unlike any other, no matter the business or walk of life. The impact of COVID-19 will have far reaching consequences for our economy and society. Rangers is not immune to the severe effects of this unprecedented challenge.

"This is a club which has experienced some of the darkest days that any football club can endure. This is a club which has repeatedly displayed remarkable resilience in the face of adversity and which will do so yet again.

"Amidst the current economic storm, the Rangers support has again stood tall. I am never more proud than when I see Rangers raise the bar. To, once more, sell out season tickets and corporate hospitality is quite astonishing, particularly when it was largely accepted that many games could be played behind closed doors."

The club said that while it was still too early to predict the long-term impact of Covid-19 on the Scottish and wider European market, it is "confident that it is well placed", both financially and operationally, to deal with the ongoing uncertainty and challenges this presents.

Rangers International Football Club plc raised £1m in the past few days, issuing five million shares purchase at a price of 20p each. Two weeks ago a further a further £3.86m by issuing over 19m shares at 20p.

On September 30, another £8.45m was raised by selling over 42m shares at 20p.

It has not been divulged who the buyer or buyers are.

But according to the Rangers website, former chairman Dave King's New Oasis Asset Limited remains the biggest shareholder in the club with 20.69%, followed by Douglas Park with 12.41%, George Taylor with 9.8% and Stuart Gibson with 7.76%.

Dave King stood down as chairman in November, last year.

The South African businessman announced the decision to shareholders at the 2019 AGM that he will leave the club in 2020, stating Rangers did not need his support any more.