Hibernian made a loss of £7.2m for the 12-month period to the end of June 2024.
The figure is close to double the previous year’s losses of £3.8m, despite turnover increasing by almost 30% to £15.9m.
During the period between July 2023 and the end of the following June, Hibs sacked managers Lee Johnson and Nick Montgomery, resulting in a “significant six-figure impact”.
Upgrades to Easter Road stadium, including a safe-standing area, floodlights and hospitality suites, cost “in excess of £3m”.
The club admit a “poor recruitment strategy” resulted in a “significant overspend” and “a downturn in performance and results continues to prove problematic”.
Staff costs have risen by more than £2m, while the wages to turnover ratio has dipped slightly to 78%.
The accounts also state £1m has been written off because the company owing money has gone into liquidation.
Hibs made a £1m profit from player sales and generated additional income from European matches.
The Edinburgh team came through Conference League qualifiers against Inter Club D’Escaldes from Andorra and Lucern from Switzerland before being knocked out by Premier League club Aston Villa.
The US-based Gordon family hold the controlling shares in Hibs and are supporting the club with the losses.
Two weeks ago, Hibs announced the departure of chief executive Ben Kensell, who had been at the club for more than three years.
Kensell was brought in by the Gordon family when they took over the majority shareholding in 2019.
He was instrumental in the introduction of Bournemouth owner Bill Foley and his Black Knight consortium, who purchased a 25% stake in March last year with a £6m investment.
The accounts reveal “donations from shareholders” were spent on supporting the women’s team and signing striker Dylan Vente, now on loan at PEC Zwolle in the Netherlands.
Hibs will hold their annual general meeting at Easter Road on 25 February and warn that they expect the financial year ending in June 2025 to “remain challenging”, with no European football in that period.
Several players will be out of contract at the end of this season, which the club go on to say “will allow a tighter focus on the playing budget and associated costs.”
