ROMANOVS REVEAL SPENDING PLANS

Hearts chairman Roman Romanov has vowed to strengthen the Jambos' squad in January despite the club posting pre-tax losses of £2.7million in the last financial year.

Romanov, whose father Vladimir is the club's majority shareholder, insists the club "is in a much better position now than it was 12 months ago," despite a turbulent few months in which manager George Burley, chief executive Phil Anderton and previous chairman George Foulkes have all left the club.

The club's statement to the Stock Exchange made it clear they are prepared to make money available to new first-team coach Graham Rix and the as-yet-unknown director of football the Romanovs are seeking to appoint when the transfer window reopens on January 1.

The younger Romanov, who is also the club's acting chief executive, said: "The board's view is that while there is still much work to be done in achieving our ultimate aims of delivering regular domestic success and European competition participation, the club is in a much better position now than it was some 12 months ago.

"First and foremost we are building a team at Hearts that can compete at the highest levels of domestic competition and thereby secure regular European football.

"This team-building process will continue with further investment planned for the January transfer window and also thereafter in the summer next year.

"It has been a dramatic 12 months but I feel that Hearts will come out of recent turbulent times in a much stronger position."

The club recorded a £1.26million increase in turnover for the year ending July 31 due to increased season ticket sales and performances on the pitch.

Reaching the semi-final stage of the Tennent's Scottish Cup and CIS Insurance Cup boosted revenue last season, as did an increase in television income and gate receipts due to the club's UEFA Cup campaign.

Hearts also announced a reduction in staff costs of £503,000 after reducing player costs and salaries.

However, failure to qualify for Europe last season and two managerial changes have affected the club's finances.

"We have made some notable progress, not least of which is securing the future of football at Tynecastle following the result of the EGM in January," added Romanov.

"Looking back to last season, we were not successful on the field as the club endured defeat in the semi-finals of both domestic cup competitions and finished in only fifth place in the Bank of Scotland SPL.

"This in turn affects the company financially with reduced revenues due to a lower league placing than the previous two seasons, which has been offset by the positive impact of revenues from our participation in the UEFA Cup referred to above.

"During this time, the club parted company with two managers - Craig Levein and John Robertson - and we continue to wish them well for the future.

"The knock-on effect of our lack of on-field success last season is that the club will miss out on the potentially lucrative revenue streams that come from European competition.

"However, there can be no doubt that the last financial year saw the first stages of the club going through a much needed transition period which is designed to deliver real on and off-field success for Heart of Midlothian plc."

Romanov added: "The players have adapted well in every instance to the changes that have taken place off-field this season, which have included the departures of former manager George Burley, chief executive Phil Anderton and chairman George Foulkes, and then most recently the arrival of new first team coach Graham Rix.

"Neither I nor any of my fellow board members take any pleasure in some of the decisions that have had to be taken recently, however, everything that the board is currently working on is designed to improve the long term standing of the club both financially and in a playing sense."

Taken from sportinglife.com