Heart of Midlothian have announced a loss of £2.4m for the year ending 30 June - the first 12 months of Brighton & Hove Albion owner Tony Bloom's involvement with the Scottish Premiership club.

The accounts show turnover was more than £23m, which is a club record sum for a season not involving European competition, as they missed out on their first Scottish title for 66 years following a final-day defeat by reigning champions Celtic.

Bloom invested £10m to take a 29% non-voting stake in Hearts, who were looking to benefit from his Jamestown Analytics recruitment network.

Hearts, who will hold their annual meeting in early December, indicate an amount of £1.8m was gained on player trading during the period, with £7.8m spent on acquisitions.

In a statement to shareholders, Hearts say they expect a significant improvement in the next set of accounts due to "further momentum" in player trading.

Hearts point out that "like-for-like revenue [was] up 20%" during a season but say the loss for the year was because they "took a deliberate decision to invest in the playing squad from a position of financial strength, helping secure a return to European league phase football".

"With European income returning and further progress in player trading, the club anticipates a significantly improved financial result in 2026/27," they state on their club website.

Hearts point out that sponsorship and advertising income was up 37% and retail and hospitality income by 17% while continuing to "benefit from exceptional financial backing from its benefactors and Foundation of Hearts members", the latter contributing £1.49m alone.

As for Bloom's investment, the club points out that, while it improved their financial position and ability to improve the squad, "as an equity investment, this funding is reflected in the balance sheet rather than recognised as income in the profit and loss account".

Their "player trading gains" were 30% up on the previous year and "further gains will be reflected in the 2026/27 financial year following player trading activity completed in July and August".

Hearts claim their "balance sheet remains robust, with the accounts reporting net assets of £20.3m at the 30 June 2026 financial year-end".

They add that they are "engaged in positive discussions regarding further investment" to assist with their long-term ambitions.