Hearts announce profit of £2.3 million

Hearts announced a profit of �2.3m
Hearts announced a profit of �2.3m
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Hearts recorded a £2.3 million profit during the financial year ending June 30, 2017, despite spending £6.9m on stadium redevelopment at Tynecastle Park.

The Edinburgh club released their accounts to shareholders ahead of their 111th annual general meeting on Tuesday, December 19 (11am), and the figures are positive with turnover increased by £1.3m to £11,255,000.

The £2.3m profit shown in the annual report is mainly attributable to what has been termed an “exceptional donation” of £2.5m from an unnamed benefactor. This was put towards the cost of Tynecastle’s new main stand, which opened on Sunday in time for the 1-1 Ladbrokes Premiership draw with Partick Thistle.

The benefactor is keen to remain anonymous but their injection has proven key to Hearts’ financial prowess over the last 12 months.

The club have also committed to spending a further £5.9m to finish redeveloping their stadium.

Owner Ann Budge has confirmed that the project is expected to run beyond its original estimated budget of £12m. With that in mind, the accounts show that Hearts have secured the facility of a £1.75m bank loan which can be used if necessary to complete the work.

Supporters group Foundation of Hearts contributed £1.5m to the cost of the main stand in the last financial year. By the time the work is finished, that amount will have doubled as the fans continue the growth of their club.

Season ticket sales have again been a vital avenue of revenue for Hearts in the last year, with 14,000 sold last summer and again this summer. Over £4m of their income in the last 12 months came via gate receipts.

Other notes in the accounts detail that the club had more than £5.5m cash at bank and in hand as of June, they received £384,000 from player sales and development fees and spent a total of £454,000 on signing new players.

Their total staff costs currently sit at £5.9m, which includes wages for all 275 employees at Hearts – football and non-football.

The accounts state cashflow projections from directors through to November 2018. These include continued contributions of £125,000 per month from Foundation of Hearts, the additional £1.75m loan mentioned above, plus the realisation of new income and revenue streams from the main stand which is due to be fully operational by next summer.