Hearts reduce debt

Hearts have announced a profit for the second successive year and reduced their debt to £24m.  That is still a substantial amount, but it is the lowest level for six years.   The figures relate to the 11 months until 30 June 2011 and therefore do not cover the current season when owner Vladimir Romanov has said that he wants to sell the club  and there have been four months of significant delays in paying salaries.

Hearts have announced a profit for the second successive year and reduced their debt to £24m.  That is still a substantial amount, but it is the lowest level for six years.   The figures relate to the 11 months until 30 June 2011 and therefore do not cover the current season when owner Vladimir Romanov has said that he wants to sell the club  and there have been four months of significant delays in paying salaries.

Debt fell by a third from £36.1m as the result of a debt restructiuring plan.   Even though turnover fell by £1m to £6.9m, a profit was made by rigorous cost cutting.   There was a 19 per cent reduction in operating costs to £3,63m, a 12 per cent cut in employment costs to £8.03m and a cut of 11 per cent in finance charges to £1.44m.   The club has already announced that the contracts of three first team players will not be extended as they seek to slash the wage bill.

With Rangers unable to qualify, the second Scottish Champions League slot has gone to Motherwell. However, Hearts could still secure a place in the Europa League if they beat Edinburgh rivals Hibernian in the William Hill Scottish Cup final on May 19th.

The club is continuing to assess whether they should stay at Tynecastle and redevelop the stadium or relocate in the west of Edinburgh.   A stadium options study has been carried out with the support of the city council.