Hibernian's turnover fell by more than a quarter last season as they posted operating losses of £800,000.

The club started the season in European football but a 7-0 home thrashing by Malmo was followed by an even worse final match at Easter Road when they lost a relegation play-off against Hamilton.

The club's poor season on the pitch was reflected in the financial figures which saw turnover fall to £5.8million - for the year ending July 31, 2014 - down from £8million the previous season.

Staff costs fell to £3.7million but wages to turnover ratio increased from 49 per cent to 64 per cent.

A club statement read: "The drop in turnover reflects poorer sporting performance and the outsourcing of the management of the club store at the start of the season.

"The lower league position contributed to lower gate income from matches played at Easter Road Stadium and a lower distribution from the SPFL which is based on each club's final league position.

"The outsourcing of the management of the club store means that there are no retail sales included in turnover and this accounted for a significant part of the drop in turnover.

"It also contributed to part of the saving in other costs which fell from £3.3m to £2.4m."

Net debt at the end of the period was £9.3million - of which £6million was owed to a bank and the rest to the holding company. But the club announced in late December that they were now free of bank debt after the holding company agreed to capitalise £4.5million of debt.

Hibs also announced plans to raise £2.5million from fans in return for a 51 per cent stake in the club.