Hearts set to announce a slight profit

The financial results for the year ended July 31, 2010, are relatively healthy with a profit gained for the first time since 1999 and staffing costs down 13 per cent on the previous year. The Edinburgh club remain heavily in debt, however they are showing signs of slowly being able to trade their way forward. Hearts' wage bill will reduce further this summer when another handful of high earners leave the club, most notably the Spanish midfielder Ruben Palazuelos. This has been a continuing trend in recent years with players like Jose Goncalves, Larry Kingston, Mauricio Pinilla and Mirsad Beslija being moved on to lower operating costs. The savings made will now be supplemented by increased revenue from a pending European campaign after Hearts secured third place in the SPL this week. That permits them a place in the qualifying rounds of the Europa League, which they will enter in July.

Romanov has previously swapped debt for extra equity in the club, in that his Ukio Bankas Investment Group which provides funding simply creates additional shares and buys them up. He has done this twice previously and also "forgiven" other debt with UBIG writing off certain amounts owed to them. Another similar scheme is in the pipeline.

Since Romanov effectively owes the debt to himself, Hearts are not at the mercy of an independent bank which has proved problematical at other clubs. UBIG's previous debt-for-equity swap took place last September for the sum of 10million. That will show up on next year's accounts.

Romanov will also meet manager Jim Jefferies to discuss plans for next season. Soon to be out of contract are Palazuelos, Ryan Stevenson, Rudi Skacel, Janos Balogh and Ismael Bouzid. Jefferies is keen to ascertain what budget is available as he seeks to recruit new signings and retain some of those whose deals are nearing expiry.