Alastair Johnston encouraged as Rangers reduce debt to £27m

The 12 months to 30 June this year saw Rangers post significantly improved figures. A profit of 4.2 million was recorded, compared to a loss of 12.7 million in 2009, while turnover increased by over 40 per cent to 56.3 million on the strength of participation in the group stage of the Champions League last season. Rangers' net debt was cut by 4 million to 27.1 million. Of that debt, 22.3 million is due to Lloyds Banking Group and incorporates the club's long-term loan and overdraft facilities.

The business plan agreed with Lloyds on the back of the financial difficulties faced by Rangers has seen the bank cast in the role of villain by many of the club's supporters, while manager Walter Smith has been critical of the restrictions imposed which saw him go two years without being able to buy a player in the transfer market before this summer.

But Johnston says Rangers are now sharing a better understanding with Lloyds of what is required for the club to achieve greater financial stability while at the same time maintaining a level of success on the pitch.

"It is now a constructive relationship and it is moving towards becoming a healthy relationship," Johnston said.

"The bank are a lot happier with the way things are going and they have seen the value of having a winning team on the park and of investing in the squad. They are also happier that we have been able to keep the wolf from the door in terms of the perception of them in both the media and through our fan base. That's obviously an important factor for Lloyds.

"Clearly, Rangers have operated above the bank's acceptable level of debt and that is something we continue to address. I'd like to think we can get that debt down to a level which is not an issue. We are pleased with the figures, but the most important thing is that they were achieved in conjunction with success on the field of play. That always has to remain imperative for a club like Rangers."