Hearts have revealed their debt rose to just under £35million for the year ending 31 July 2009 - an increase of £5million from the previous 12 months.
Savings of over £3million were achieved across the business including 31% operational cost savings of £1.94million, a 7% reduction in employment costs of £842,000 and a 19% saving of £421,000 on finance costs. That meant operating losses were restricted to £8.6million compared to the previous year's £11.2million.
Hearts also reported a net gain on player sales with the £1.81million principally due to the transfer of Christophe Berra to Wolves. A club statement read: "The transaction was the highest value transfer for any player from a Scottish club in the January '09 transfer window and once again demonstrates the value of Hearts' player development system."
The statement continued: "The club reasserts its view that the development of young players through the Heart of Midlothian Football Academy will continue to underpin the future growth of the club's onfield ambitions."
"The board remains focused on improving revenues, increasing efficiencies and reducing costs across the business.
"The club's employment costs will continue to reduce significantly in seasons 2009-10 and 2010-11 as a number of players reach the natural end of their contracts.
"This will in turn assist the club in bringing the budget for playing staff closer to market standards without compromising on quality.
"Indeed, through its new football management team, the aim remains to improve the quality of the squad and predicted conditions in player markets are expected to help boost the availability of quality players."
The club also confirmed the extension of a shirt sponsorship agreement with existing sponsors Ukio Bankas.
Source: PA
