Queen of the South have posted a pre-tax loss of more than £200,000 last year following a “difficult season”.
Last year the board warned of a six figure loss and the latest review statement to shareholders ahead of this month’s AGM details a turbulent 12 months for the Palmerston outfit.
With the club still hampered by Covid-19 restrictions they missed out on ticket money and income generated in the Arena was also down.
The sale of Lyndon Dykes and government grants allowed the club to maintain full-time football in League One after they were relegated from the Championship.
While they still have “significant cash reserves” the 3G pitch at Palmerston is due to be replaced in the summer which will require “significant investment” from the club.
The statement reads: “The 2021/22 season was another difficult one for the club. Covid-19 remained a factor and the timing of restrictions cost us our likely two biggest gates of the year as both visits from Kilmarnock saw limited or no visiting support.
“Off field income streams at the Arena were also significantly affected. We were again though able to provide a streaming service for those supporters unable to attend Palmerston. We would like to once more express our gratitude to the staff and volunteers who provided this service.
“We warned at this time last year that we should expect to lose a six figure sum in the 2021/22 financial year as a result of the hangovers from Covid-19, and struggles on the pitch, and so it proved.
“The accounts published here show a loss of around £200,000 before tax. The Covid-19 grants received in the previous year, together with the Lyndon Dykes transfer fee, allowed us to withstand this and maintain full time football in League One.
“We continue to have a very strong balance sheet and significant cash reserves.
“However, the 3G pitch at Palmerston is due to be replaced in the summer and will require significant further investment from the club.”
The total pre-tax loss listed in the club’s accounts is £201,486.
The AGM takes place in person for the first time since the pandemic at the Nith Hotel on Monday February 20 at 7.30pm.
