Hibernian have announced a £3.9m loss for the year up to 30 June 2023, despite making a gain of £3.2m in transfer fees.

The Edinburgh club say the figures “fall short of our goals”.

However, they go on to predict “record-breaking revenue” for the following 12-month period.

Loans from club owners, the Gordon family, now total £5m, paid from their Bydand Sports company, and will be converted into equity at the club’s annual general meeting later this month.

The AGM is also expected to achieve ratification for Bournemouth owner Bill Foley to take a minority investment.

Hibs finished fifth in the Premiership last season, up from eighth the term before, but did not have European football and exited both cup competitions early.

The club say spending was increased to “bolster sporting performance”, along with “further investment in people and infrastructure at the training centre”.

Having announced a £1.5m loss this time last year, the statement says the outlook for summer 2024 is already much improved.

“For the period to 31 December, the club has produced positive earnings before interest and amortisation, inclusive of gains from player trading, and maintained a staff to turnover of 65%,” it reads.

The transfer profits in the latest figures came mainly from the sales of Josh Doig to Verona and Kevin Nisbet to Millwall.

Doig moved on to Sassuolo in January, with Hibs holding a sell-on clause for the wing-back.