Rangers halved losses to £3.3m in Championship-winning season

Rangers were promoted to the Scottish Premiership in May

Rangers halved their annual losses to £3.3m and increased turnover during their Championship-winning season.

But auditor Greig McKnight warned: "In order to continue operations for the next 12 months, the group is dependent upon raising additional finance."

And chairman Dave King reported that: "Further funding may be required during the 2017-18 season."

The annual report reveals turnover rose by almost £6m to £22.2m and losses fell from £7.7m for the year to 30 June.

Rangers have been involved in a dispute with Sports Direct, with the club trying to end their relationship with the retailer run by Rangers shareholder Mike Ashley.

The contract with Rangers Retail Limited reportedly earns the club only four pence from every pound spent on merchandise.

"During the year under review the board secured the much-needed capital to fund the football operating deficit that was necessary to ensure promotion and to repay the Sports Direct loan of £5m," said King.

"Our supporters understand the difficulties that have been overcome and the challenges that still lie ahead and their unwavering loyalty has been the one constant through these years of change.

"This support and backing is vital if Rangers is to regain a position of domestic dominance and re-enter the European arena.

Rangers chairman Dave King with last season's Championship trophy

"A vast amount of time and resources have been tied up in dealing with the Sports Direct debacle.

"It remains our hope and belief that a solution to the issues we have with Sports Direct can be found and that this club will once again have a significantly profitable retail arm.

"This is a priority and we are determined to achieve an outcome whereby Rangers is treated with the appropriate levels of respect and value that were absent when the original deals were entered into."

Rangers made 11 summer signings, including recruiting midfielders Joey Barton and Niko Kranjcar.

"Further funding may be required during the 2017-18 season, the quantum of which is dependent on future football performance and European football participation," added King.

"The board of directors has received undertakings from certain investors that they will provide financial support to the group and have satisfied themselves as to the validity of these undertakings and that the individuals have the means and authority to provide such funding as and when it is required."