The year-end accounts for Rangers Retail Limited is always a good read.
The full accounts can be read here.
For the avoidance of doubt, a set of accounts is terra incognita for your humble correspondent.
Therefore I sent them to Rugger Guy who, as ever, was gracious and generous with his time.
He cast his professional eye over them for me and here is his response:
The first point worthy of note Phil is that the auditors, Grant Thornton are recognised as a well-respected, large firm in which you would expect a thorough audit.
What is very surprising is that Grant Thornton have refused to express a view on the accounts of RRL.
“The phrase is used “However, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion”.
The nature of the auditing problem is mainly due to the “purported breaches of certain items of an IP License and Rights Agreement”. RRL has not taken legal advice due to certain conflicts of interest.
In a nutshell, Grant Thornton is effectively washing their hands of these accounts.
To reinforce this point, Grant Thornton concludes in their report as follows:
“We have not obtained all the information and explanations that we considered necessary for the purposes of our audit; and we are unable to determine whether adequate accounting records have been kept.”
It is normally reassuring when you read a set of accounts to see that the accounts have no qualification by the auditors. In the example of RRL accounts, this is clearly not the case.
There, in less than 200 words, is probably more insight on this story than all of the gushing stenography that is available in print today.
Of course, I cannot claim any credit for the foregoing analysis, but then again no one tells me what to write here and then pass it off as my own work.
I’m just not at that Level.