Hibernian Football Club’s owners have pledged to turn around its off-field performance after it posted a £7.2 million loss in the year to the end of June, up from a £3.3m loss in the previous 12 months.

A 28% rise in turnover to £15.9m was dented by the cost of paying off two managers – Lee Johnson and Nick Montgomery which had a “significant six-figure impact”.

There were also upgrades to Easter Road stadium, costing “in excess of £3m”, while the club admited a “poor recruitment strategy” that had resulted in a “significant overspend”.

Staff costs have risen by more than £2m, while the wages to turnover ratio has dipped slightly to 78%.

The club had to write-off a £1m bad debt after a creditor went into liquidation. On a more positive note, there was £1m in profit from player sales and additional income from European matches.

The US-based Gordon family hold the controlling shares in Hibs and executive director Ian Gordon added in September that his family were committed to covering the overspend – promising the club will eventually be in a ‘very stable position’ once they get it right.

Two weeks ago the club parted company with chief executive Ben Kensell who was brought in by the family after they took over the majority shareholding in 2019.

He helped introduce AFC Bournemouth owner Bill Foley and his Black Knight consortium, who purchased a 25% stake in March last year with a £6m investment.

In a statement, the club said: “The financial results of the 2023/24 season are of course disappointing, and the cumulative results over the previous three seasons have varied from the historical performance of the club.

“The club is very much aware that a poor recruitment strategy has resulted in a significant overspend and a downturn in performances and results, which continues to prove problematic for the financial management of the club.

“The current climate is very challenging for football clubs of a similar size to Hibs, and clubs are often reliant on shareholders or benefactors while trying to increase competitiveness.

“The club has done everything to maximise other revenue streams, and will continue to maximise these revenue streams, but ultimately is reliant on the steadfast support of the shareholders who continue to underwrite losses.”