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 Posted by ESPN Staff
Sep 16, 2009

Profits slump and debts rise at Hibernian

Hibernian's profits have been almost slashed in half and their debts have also increased, according to financial results released by the club on Wednesday.

Hibs reported a fifth successive year of profit but the net figure was down from £1.2 million last year to £700,000 for the year ending July 31 2009. Net debt also rose from £2.8 million to £3.6 million year on year.

A 9% reduction in attendance at Easter Road and an increase in staff costs are two factors behind the figures. The club's turnover fell again but only by four per cent to £7.7 million.

However, continuing to trade profitably in the current financial climate is no mean feat for a Scottish Premier League club who underachieved again last season.

Chairman Rod Petrie said: "We have maintained our 'rock solid' financial position against a background of sporting performances which have fallen below the standards the club has set for itself in recent years."

Expressing a determination to cut costs, chief executive Scott Lindsay added: "Despite the hard work undertaken by the management team and staff off the field to successfully reduce operating costs, the club reported a £1.5 million operating loss, in line with the previous season.

"Sporting performance is a major factor in delivering revenue and the combination of a sixth-place SPL finish, lower attendances and early cup exits impacted significantly on the results. The deteriorating economic climate also contributed to the reduction in income."

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