Hibs reveal profit of nearly £1m in financial results - Turnover fall, cash position increased, loan benefits

Hibs have revealed net profits of nearly £1million from the financial year ending June 30, 2021.

The Easter Road club came through the coronavirus pandemic in a strong position. Despite a fall in turnover of 4 per cent, from £8.93m to £8.5m, with the bulk of that due to reduced gate receipts, a profit was still posted in what was a hugely difficult year for all football clubs.

That was aided by a variety of factors.

With matches played behind closed doors operating expenses were decreased by three per cent to £10.5m, while there was a small saving on staff costs.

Hibs have announced their financial results. (Photo by Paul Devlin / SNS Group)

“Although headcount decreased by 20 per cent during the year, staff costs of approximately £6.64m were comparable to the prior year staff cost of £6.66m due to the triggering of performance-based bonuses for playing and coaching staff payable due to the 3rd place finish in the league, and reaching the semi-final in the League Cup and final in the Scottish Cup," the club’s executive chairman Ron Gordon told shareholders in a letter.

A key revenue source was through “business interruption insurance proceeds” and furlough income. The former amounted to £2.15m. While it was included in the accounts, the club didn’t receive the majority of it – £1.6m – until September.

"In other words, while accountable for the financial year being reported the funds were not available to the club until September last year,” Gordon said.

"These proceeds helped the club achieve operating profit of £527k compared to an operating loss of approximately £1.39m in the prior year. After including player trading and tax credits, the club achieved a net profit of £919k in the current year, compared to a net loss of £1.23m in the prior year.”

Hibs executive chairman Ron Gordon. (Photo by Mark Scates / SNS Group)

Cash position increase

The Scottish Government provided top-flight clubs with a significant loan which has “favourable terms of no interest and is due to be paid over twenty years starting in September 2022”.

The £2.88m loan helped the club increase the cash position from £5.36m as at 30 June 2020 to £6.95m as at 30 June 2021.

In the letter to shareholders, Gordon thanked supporters for their “continued support through season ticket purchases during this challenging time”. Hibs have frozen season ticket prices for the 2022/23 campaign.

“The club received over £600k in donations during the year, with contributions from the board of directors as well as the Hibernian Supporters Limited, which contributed donations exceeding £300k during the year,” he said.

"These donations helped support the Thank You NHS initiative, ongoing operations, and player trading.

"Finally, it does – at last – appear that we are seeing increased normality return on a more sustainable basis, and that is very welcome. While having supporters inside our stadium is essential to Hibernian in a financial sense, it is just as important to remember that football is sadly depleted without supporters generating colour, noise, excitement, energy and passion.”

The 2022 Hibs Annual General Meeting will be held in the West Stand at Easter Road Stadium on Thursday, March 3 at 6pm. Gordon confirmed that due to “geography and circumstances”, he won’t be in attendance.

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