Petrie blames on-the-pitch failings for Hibs deficit

The gloomy financial figures come at a worrying time when dwindling attendances indicate some supporters are turning their back on the team, who sit just one point off the bottom of the SPL.

When contacted by The Scotsman yesterday to discuss the annual accounts more expansively, Hibs declined, with a spokesman saying there would be no further comment other than a statement posted by Petrie on the club’s official website

In what could be viewed as a thinly veiled swipe at previous manager John Hughes, Petrie highlighted the team’s immediate exits from the Europa League – to Maribor in August – and the Co-operative Insurance Cup – to Kilmarnock in September – prior to Hughes’s removal in October in his explanation of the accounts to 31 July this year.

In contrast, Petrie said the side’s early knockout from the Scottish Cup in January, to Second Division Ayr United, had come before present manager Colin Calderwood, who marked a year in the job yesterday, had had time to “refresh the squad”.

The capital club also pointed to a “drop in player trading” as a component in the results, although the sale of Anthony Stokes to Celtic, Sol Bamba to Leicester City and Merouane Zemmama to Middlesbrough were completed during the 12-month period.

However, despite these factors contributing to a reduction in Hibs’ turnover of £100,000 to £7 million during a “very challenging year” that also saw net debt increase from £4.1mto £5.9 million, Petrie is adamant “the financial position of the club is secure”.

Ahead of the club’s annual general meeting on 8 November, he told supporters: “In the current difficult economic conditions, every household faces pressure on its domestic budget and on discretionary expenditure. This, in turn, has an adverse effect on the club’s finances.

“Of course, we are very mindful of the obvious fact that the lack of success on the field had a direct bearing on the level of turnover. The sporting outcomes for the season were not what any of us would have wished. The team exited two competitions before the change in management and suffered the disappointment of an exit from the third competition in early January before new manager Colin Calderwood was able to refresh the squad.

“Despite the figures recorded last year, the financial position of the club is secure. Together we can move forward, and we all have our part to play – as supporters, as players, as a coaching team, as staff, and as board members. The support for your team is more vital today than it has ever been.”

The figures also showed that staff costs had remained static at £4.8 million, representing 69 per cent of turnover, and that net assets had fallen to £14.4 million, but that the club had a positive cash balance in the bank of £2 million.

Revealing it was the third successive year that staff salaries had not increased, Petrie praised the response of club employees to the cuts and changes that have been made. He added: “To address the imbalance between income and expenditure, the board took action earlier this year – costs have had to be cut. This has meant re-structuring the club from board level down, including redundancies and not replacing posts that were vacated through natural wastage.

“This is the third year in succession that there has been no increase in staff salaries and I would like to record my thanks for the mature and responsible way in which all staff have responded.” In a rallying call to supporters, who clearly voiced their discontent with the team’s on-field performances during Saturday’s 1-0 home defeat to Motherwell, managing director Fife Hyland made a plea for togetherness to tackle the challenges ahead. He said: “The unity between the team, club and supporters has never been as important as it is today, and it is imperative all opportunities are explored together to continue to focus on the club’s priorities – success on the pitch and the growth of Hibernian FC.

“On behalf of everyone at Hibernian, I would like to thank all our partners and supporters who have renewed memberships, supported the team at Easter Road, invested in the team via the clubstore and provided feedback to the club over the past season.

“The commitment of supporters and partners in the face of challenging circumstances is sincerely appreciated and provides the base upon which we can all move forward.”

Last year, the club’s AGM had to be postponed and moved to another day, when Hughes was sacked on the day of the meeting.

With this year’s AGM a little over three weeks away, Calderwood will be under even more pressure to deliver some positive results, or face the ire of shareholders that night.