Cup exits and chasing Euro dream led to losses of £3.9m
Hibs have posted a loss of £3.9 million as Easter Road chiefs hold out hope for “record breaking” revenue, writes Ben Banks.
The Premiership side made the loss despite a turnover of £12.4m, up 4 per cent. Hibs have an operating loss of £6.9m and wage-to-turnover ratio is now 81 per cent.
Losses have been blamed on two key factors – failing to progress in the cup competitions and allowing Lee Johnson to spend heavily in pursuit of European football. In a normal season, Hibs would expect to reach the quarter-finals of both the League Cup and Scottish Cup; failing to clear the first hurdle in either competition last season is estimated to have cost them around £2m.
Significant recruitment in January of 2023, with CJ Egan-Riley and Jimmy Jeggo among the arrivals, also had an impact on the accounts. Although this investment paid off with qualification for Europe, the cut-off date for the accounting period means the figures don’t include revenue from three rounds of Europa Conference League football.
A notice has been sent by the club to shareholders ahead of the Hibs AGM on February 27.
It comes after Bournemouth owner Bill Foley was cleared to take a minority stake in the club. The SFA’s approval is subject to Foley’s shareholding not exceeding 29.99 per cent and that it won’t preclude Hibs from featuring in UEFA action.
Having reached the European Conference League playoff round and the Viaplay Cup semi-final, with further commercial growth anticipated, Hibs ‘expects’ record breaking revenue for the year ending 30 June 2024.