Queen of the South have reported losses of £200,000 for 2024/25 – and warned similar figures are likely for this financial year.
The Scottish League One side said it was “not possible to sustain full-time football” without incurring significant losses in the third tier unless windfall income came in from cup progress or player sales.
In its financial review the Dumfries club said last season had been a disappointing one and costly despite “unexpected income” from the sales of Lewis Gibson and Ruari Paton.
It added that, following the resignation of director Jim McLinden, the search for the “right people” to join the board continued.
The financial report comes ahead of the Dumfries club’s annual general meeting in the town on 1 May.
It apologised for publishing the information later than usual which it said was due to circumstances beyond its control.
The Doonhamers were relegated from the Championship in 2022 and have remained full-time in League One since then.
Losses of about £60,000 were reported in 2023/24 followed by £200,000 in the latest set of accounts.
The club currently sits in a promotion play-off slot to return to the second tier of the Scottish game.
It said full-time status had been maintained as it was felt it improved the chances of success and was necessary for the “longer term ambitions” of the club.
The accounts for 2024/25 noted that the extended spell in League One had put “increased financial pressures” on the Palmerston Park outfit.
They added that directors continued to look at ways to return to an even financial footing and were optimistic it could be achieved in the short term.
The report said they remained confident the company could continue to operate as a going concern.
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