Hearts reported a £1.2million loss last season but are confident recent investment will reap rewards following their return to Europe and development of additional revenue sources.

The William Hill Premiership club opened their own 25-room Tynecastle Park Hotel in February and continue to benefit from major donations.

A statement in their annual accounts read: “The absence of group stage European football limited our revenue growth, as we knew it would. This, coupled with our commitment to continue to invest for future success in players, staff and infrastructure, means that for the first time in many years, our financial results show a loss.

“However, with group stage European football secured for 2024/25 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 seasons.”

Hearts recorded turnover in excess of just over £20million for the second year running. The decrease was limited to £500,000 despite not getting group stage football, partly thanks to a 28 per cent increase in commercial revenue and a 40% jump in sponsorship and advertising income.

Staff costs increased by £1.1million to £16.5million while operating costs went up by £1.6million following the provision of additional football facilities and ongoing costs associated with the “enlarged infrastructure”.

The statement added: “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.”

The accounts showed that the Foundation of Hearts, the supporters organisation and majority shareholder, put close to £1.5million directly into the club last season.

The club also reported that a director – believed to be James Anderson – put £6million into the club over the course of the 12 months. Two-thirds of this has been listed as a donation and the remainder “deferred income” as it relates to the current campaign.