Investment pays off

Last updated : 12 May 2011 By TwoTonTed

Vladimir Romanov must know what he is doing with Hearts as they have turned the corner regarding losses. The club have just announced a return to profit after a period of 11 years of reporting loses. A profit of £39,000 is not significant but the scale of the turn-a-round from loses of £8.6m in the year 2009 is something to celebrate. The results up to 31 June 2010 were attributed to "savings in staff costs and further investment from parent company Ukio Banko Investicine Grupe (UBIG) and related parties". UBIG poured £7.9million into the club which cut £1.56m off the employment costs and finance charges bill. Hearts did well in player trading for the fifth year in a row and are on course to meet the financial fair play requirements stipulated by UEFA. 
 
The club realeased a statement which read: "The profit of £39,000 (2009: loss of £8.63m) is the first profit reported by the club in 11 years. As well as expected operational cost reductions, the club also expects further improvements in underlying financial performance in the current financial year with the exit, at the end of last season, of some of the club's higher earners. Financial figures will also be boosted in the next financial year with the inclusion of the £10m debt-for-equity plan approved by shareholders in November 2010. The board would like to register its continuing gratitude to the support shown amongst all our stakeholders including shareholders, supporters, business associates and sponsors. We will continue to work in the interests of the club at all times and will endeavour to bring success to the club both on and off field. We are also confident that the work we are currently involved in and the steps we are taking will deliver longer term benefits for Heart of Midlothian Football Club."