Hibs finances: Seven-figure net loss recorded as impact of missing out on top six and managerial sackings laid bare

Hibs' financial results suffered due to increased operating costs, poor league form and the sacking of two managers.

Hibs have posted a net loss of £1.5million as chief executive Ben Kensell revealed the club’s financial results for the year June 30, 2022 ahead of next week’s annual general meeting.

Despite a rise in turnover across the 12 months – mainly due to the return of crowds following the pandemic and reaching the latter stages of the cups – Hibs suffered due to missing out on the top six during the 2021/22 league season and the impact that had on attendances, disposing of two managerial teams and only receiving £500,000 so far of the expected £2.1million fee from Al-Faisaly for forward Martin Boyle.

Hibs sacked both Jack Ross and Shaun Maloney during a disappointing campaign for the Easter Road outfit and despite reaching the League Cup final, their performance in the cinch Premiership was poor, finishing eighth. Operating costs have also risen significantly, from £10.5m to £15.8m, meaning that a total loss figure of £1.5m was recorded. The previous year’s results brought in a net profit of £870,000.

Writing to shareholders, Kensell commented: “Poor league form, lack of desired playing identity, and financial failing also drove a change of management twice during the year, which incurred significant severance costs that have been recorded in the accounts. I have spoken of the need to achieve greater stability and consistency, and the figures simply underpin the need to do so.”

Hibs will hold their AGM on Tuesday, March 7 but Kensell confirmed that it will be “to conduct the formal business of the company only” as a mark of respect for executive chairman Ron Gordon, who died last week following a battle with cancer.