Former Kilmarnock chairman Jamie Moffat has written off a debt of £900,000 which has helped the Rugby Park club halve their losses in the past year, although they still remain more than £10 million in the red.
Kilmarnock posted losses of almost £500,000 for the year ending 31 May 2010, an improvement on the previous year's figure of just under £1 million. The club's net debt now stands at £10.5 million, having stood at £11.2 million at the end of the last financial year.
Turnover for the year was £6.1m, down £700,000 on 2008-09, while players and staff wage costs remained static at £3.6m, the same figure as the previous year.
Kilmarnock chairman Michael Johnston, who succeeded Moffat as chairman in 2005, again acknowledged the generosity of his predecessor.
"The collapse of TV company Setanta is continuing to be felt. Added to that, our 11th-place SPL finish and lack of cup success also resulted in a significant loss. The low cup income and SPL prize money was off-set to a major extent by the generosity of former chairman Jamie Moffat in writing off £900,000 of his loan account, thus reducing the loss reported in the annual accounts," explained Johnston.
"This magnitude of trading loss cannot be sustained. Steps have been taken in the current financial year to reduce the player wage bill - clearly without an adverse impact upon the quality of the first team's performances on the pitch.
"New capital requires to be introduced in order to place the club on a healthier financial footing and avoid the prospect of player sales or further cuts in the first-team squad budget. This could be achieved by the purchase of new shares in the company and I am actively discussing this with a number of parties. If new investment is forthcoming at an appropriate level, I shall be happy to welcome new directors to the board."
Johnston also paid tribute to boss Mixu Paatelainen, who has led the team to sixth spot in the league, following a run of four SPL wins in their past six matches.
Johnston said: "Mixu has approached the job with great energy and commitment and this has been rewarded with a promising start to the season. A great run of three consecutive 3-0 victories, two away from home, combined with a growing admiration for his tactical approach and training regime, are testament to his work ethic."