Chairman Jamie Moffat, who has offered to stand aside if it helped attract new investment, took comfort from the fact that the losses to the end of May had reduced from the previous year. In his statement accompanying the figures, he pointed to the team's failure to secure a place in the top six of the SPL and the lack of a meaningful cup run as contributory factors in the poor figures.
His report states "The problems facing Scottish football continued to show how difficult this business has become, with three clubs going through a re-structuring process."
On the plus side, he pointed to the continued progress and excellent performance of the club's Park Hotel,the success of the youth team in the Scottish Youth Cup and to the improved first team peformance this season following a £400,000 reduction in the wage bill as reason for optimism for the future.
The chairman said "These positive indicators in line with urther reduction in player contract levels negotiated during the close season give financial optimism for the year ahead."
The club's wage bill has been reduced by a further £500,000 prior to the current campaign and this will be reflected in next year's return.
The club is in the midst of a three-year financial recovery plan, pivotal to which is the success in acquiring £1million in new investment in the club.