Hibernian: 拢800,000 loss suffered in year to July 2014

Image source, SNS

Image caption, Hibs were relegated at the end of last season after losing to Hamilton in a play-off

Hibernian's turnover fell by more than a quarter last season as they posted operating losses of 拢800,000.

The Edinburgh club started the season in Europa League qualifying but ended it being relegated from Scotland's top flight.

Turnover fell to 拢5.8m for the year to 31 July - down from 拢8m the previous season.

Staff costs fell to 拢3.7m, but the wages-to-turnover ratio increased from 49% to 64%.

A club statement attributed the drop in turnover to "poorer sporting performance" and the outsourcing of the management of the club store at the start of the season, which meant there were no retail sales in the club's turnover.

It continued: "The lower league position contributed to lower gate income from matches played at Easter Road Stadium and a lower distribution from the SPFL, which is based on each club's final league position."

Outsourcing club shop management had, however, contributed to cost savings, "which fell from 拢3.3m to 拢2.4m," it added.

Net debt at the end of the period was 拢9.3m, of which 拢6m was owed to a bank and the rest to the holding company.

However, the club announced in late December that they were now free of bank debt after the holding company agreed to capitalise 拢4.5m of debt.

Hibs also announced plans to raise 拢2.5m from fans in return for a 51% stake in the club.