Official statement from Heart of Midlothian plc

Hearts continue to move towards break-even

Hearts have continued to make steady progress in stemming losses and boosting revenues, according to the club's preliminary annual results released to the Stock Market today.

Results for the year ended July 31st 2004 show a loss before interest of £1.59 million.

In the previous year, the club recorded losses of £288,000 but enjoyed net transfer income of £2.16 million.

With no transfer income over the past 12 months, the latest results indicate a trading improvement of almost £0.75 million on a like for like basis and confirm forecasts made in the club's interim results announced in April.

Hearts involvement in the UEFA Cup, the ongoing reduction in player costs and the development of new revenue streams have all contributed to the club's efforts to move closer to break-even.

"The year reported saw continued reduction in player costs and increased revenues, particularly through our involvement in the UEFA Cup," said Chief Executive Chris Robinson.

"Unlike the year ended July 31st 2003, there was no significant transfer registration income in the 2004 financial year.

"Income and costs are coming closer to being in line and the options which continue to present themselves each close season to reduce player costs provide the Company with the opportunity to move closer to a break-even result.

"Notwithstanding the ongoing financial pressures and the major issue of stadium relocation, we have continued to seek all possible aspects of further revenue generation and in particular have redeveloped the Company's website in conjunction with Premium TV to deliver new income streams.

"In particular we have added on-line ticket booking and audio and visual webcasting to a worldwide audience. This strategy is in its infancy and will only really begin to deliver important revenues in Season 2004/05 and the years ahead. As the use of the internet grows, this will be an area for further growth."

The results reveal the UEFA Cup added almost £1 million to Hearts' turnover last year - and a consistent presence in European football remains one of the club's most important ambitions, according to Chairman George Foulkes.

"My priority as Chairman has been to get to grips with the situation at the club, understand the finances, the perspectives of shareholders and major creditors and to act as a bridge to the supporters and to understand all sides of the important debate on the future of Heart of Midlothian," he said.

"A great deal of work has taken place in recent months to ensure that we can continue to compete at the highest level in Scottish football and develop our ambitions for European football.

"Whilst these have been difficult months, I am grateful for the support I have had from all quarters."

Click for full details on the Heart of Midlothian plc section of the LSE website