Sir David warned of a need to reduce expenditure at the club

Rangers chairman Sir David Murray says a �13.3m rise in pre-tax profits reflect a "remarkable and historic" year for the Ibrox club.

Figures for the year to June 2008, show the club overturned a pre-tax loss of �5m on the previous 12 months.

But Rangers' net debt rose in the past year from �16.5m to �21.6m.

Murray, who congratulated the club on reaching last season's Uefa Cup final, said: "We should be proud of our collective achievements."

The club's financial results also show turnover increased by 54% to �64.5m, while net operating expenses climbed 32% to �56.8m.

Existing levels of expenditure cannot be maintained in the current economic climate Rangers chairman Sir David Murray

The Rangers chairman praised the side for winning the Scottish and Co-operative Insurance Cups, but warned that the club would have to cut expenditure in the current financial climate.

"These results reflect what was a remarkable and historic year for the club both on and off the park. We should be very proud of our collective achievements," continued Murray.

"Our participation in European and domestic cup competitions obviously contributed greatly to our record turnover and it is encouraging to report a substantial net profit.

"The increase in turnover also highlights the necessity for Rangers Football Club to qualify for Europe to meet the overheads that exist to run a club of our size.

"Existing levels of expenditure cannot be maintained in the current economic climate and, as we look to the future, it is becoming more important to focus on the development of young players to ensure the long term sustainability of the club."

The chairman also said he expected the Murray Park training complex to yield more talent to be able to make the step up to the first-team in the future.

Expressing disappointment over the club's failure to qualify for Europe this season, Murray added: "We have, however, re-grouped and invested as promised in the playing squad and I know that we can count on our fans' support as we strive to bring the league title back to Ibrox."