Hibernian Football Club has reported a substantial financial loss of £7.2 million for the 12-month period ending June 2024, nearly double the previous year’s deficit of £3.8 million.
This comes despite a 28% increase in turnover to £15.9 million, leaving the club heavily reliant on “the steadfast support of shareholders who continue to underwrite losses”.
The financial report highlights several factors contributing to this downturn. The dismissal of managers Lee Johnson and Nick Montgomery had a “significant six-figure impact” on the club’s finances, while an additional £1 million was written off following the liquidation of a commercial partner.
Staff costs rose by over £2 million, with the wages-to-turnover ratio slightly decreasing to 78%. Hibernian also cited a “poor recruitment strategy” as a major factor in their financial struggles, leading to “a significant overspend” and ongoing issues with performance and results.
Despite these challenges, the club generated £1 million in profit from player sales and additional income from European matches. Hibs advanced through the UEFA Conference League qualifiers against Inter Club d’Escaldes and Lucerne but were eliminated by Premier League side Aston Villa.
Capital investments exceeding £3 million were made to upgrade Easter Road stadium, including a safe-standing area, floodlights, and hospitality suites.
Meanwhile, “donations from shareholders” were allocated to support the women’s team and fund the signing of striker Dylan Vente, who is now on loan at PEC Zwolle in the Netherlands.
The recent departure of chief executive Ben Kensell, after more than three years at the club, marks another significant change.
Kensell played a key role in bringing Bournemouth owner Bill Foley and his Black Knight consortium into the fold; they acquired a 25% stake in Hibs with a £6 million investment last year.
Looking ahead, Hibernian anticipates further challenges in the financial year ending June 2025 due to the absence of European football.
However, several player contracts expiring at the end of this season are expected to allow for “a tighter focus on the playing budget and associated costs.”
The club’s annual general meeting is scheduled for 25 February at Easter Road.
