Queen of the South made a pre-tax profit of nearly £720,000 last year despite the Covid-19 crisis.
Government grants to combat the pandemic and a six figure sell-on clause with Lyndon Dykes for his move from Livingston to Queens Park Rangers helped the club significantly.
It posted a pre-tax profit of £719,000, up from £81,200 the year before.
However, the board of directors have warned that it is “likely” the club will post a six figure loss in this current financial year as pandemic restrictions continue to have an impact on the running of the club.
In a season and financial review to shareholders the board also revealed the Doonhamers’ synthetic 4G pitch needs to be replaced soon.
The statement said: “We benefited hugely when Lyndon Dykes moved from Livingston to Queen’s Park Rangers and picked up international recognition.
“Thanks to a clause in the contract the club received a six figure sum as a share of the fee which secured our immediate future for a period of time.
“We also received £500,000 of Government support via the SFA at the end of 2020 in recognition of having to trade behind closed doors all season.
“Along with other local government support for closed facilities and extensive periods of furlough this
has allowed the club to show a very large profit for the year.
“In all the circumstances, it is likely that we will lose a six figure sum in the 2021/22 season barring any further windfall income.
“We now show a very strong balance sheet and significant cash reserves but with a need to renew the current pitch imminently and the difficulties of operating a full time squad on the current attendances, we remain focused on maintaining budgets.”
The board added that hospitality remains a “hard sell” for supporters as they are reluctant to book in big groups with isolation rules changing at short notice.
The AGM, which will be held on Monday, February 7, will once again take place online.
