Hearts have revealed record turnover figures of £10.32million but confirmed they were still operating at a loss in the year to July 31, 2007.The Edinburgh club paid out £12.49million in employment costs, and overall debt now stands around the £36million mark, however Hearts insist the outlook is positive on and off the field.

Hearts posted player sales profits of £1.12million, largely due to the £1.1million sale of Paul Hartley to Celtic in January 2007.

The £9million sale of Craig Gordon to Sunderland came too late to be included in the results and will be included in the figures for the club's current financial year, which Hearts say currently appear "encouraging".

In a statement from the club, Hearts stressed there would not be any extravagant spending on players this summer.

The statement said: "In future seasons, it is projected that improved revenues will be generated through increased participation in European competition, larger attendance in a redeveloped Tynecastle stadium and an associated greater sponsorship and retail income.

"Expenditure on the playing squad is unlikely to rise any further and the board is working towards a more appropriate 'salary-to-turnover' ratio with the full effect of the departure of some of the club's top-earning players not being felt until the next set of financial results."

The club have set a "mid to long-term" target to achieve break-even annual results.

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