Heart of Midlothian said it generated turnover in excess of £20 million for the second year in a row in season 2023/24.

But, following investments in the playing squad and in commercial areas of the business, Hearts reported a loss of £1.2 million.

Hearts said commercial revenue increased 28%, sponsorship and advertising revenue increased 40%, while staff costs increased by £1.1 million and operating costs increased by £1.6 million.

“Whilst 2023/24 shows a marginal decrease on the previous year, the underlying year-on-year growth is significant, given the absence of group stage European Football,” said the club.

In the club’s accounts for the year ended June 30, 2024, it said: “Despite this lack of group stage European football, the Board made the decision, with the financial support of our benefactors and the Foundation of Hearts, to continue to invest in the playing squad in order to ensure an immediate return to the group stages.

“We are delighted that this has been achieved for season 2024/25.

“Investment also continued in the commercial areas of the business in order to support the club’s continuing growth and its ability to invest both on and off pitch. A significant investment in season 2023/24 involved the completion of the club’s Main Stand, with the development and opening of Tynecastle Park Hotel.

“This continued investment, with a marginal drop in revenue, has meant that for the first time in many years, we are reporting a loss of £1.2m.

“With group stage European football secured for season 24/25 we are confident of continued revenue growth in the coming year. Similarly with no large-scale infrastructure projects on the immediate horizon, we are confident that we will reap the benefits of our years of investment over the coming season.”