Hearts chairman Roman Romanov has vowed to strengthen the Jambos' squad in January despite the club posting pre-tax losses of £2.7million in the last financial year.
Romanov, whose father Vladimir is the club's majority shareholder, insists the club "is in a much better position now than it was 12 months ago," despite a turbulent few months in which manager George Burley, chief executive Phil Anderton and previous chairman George Foulkes have all left the club.
The club's statement to the Stock Exchange made it clear they are prepared to make money available to new first-team coach Graham Rix and the as-yet-unknown director of football the Romanovs are seeking to appoint when the transfer window reopens on January 1.
The younger Romanov, who is also the club's acting chief executive, said: "The board's view is that while there is still much work to be done in achieving our ultimate aims of delivering regular domestic success and European competition participation, the club is in a much better position now than it was some 12 months ago.
"First and foremost we are building a team at Hearts that can compete at the highest levels of domestic competition and thereby secure regular European football.
"This team-building process will continue with further investment planned for the January transfer window and also thereafter in the summer next year."
The club recorded a £1.26million increase in turnover for the year ending July 31 due to increased season ticket sales and performances on the pitch.
Reaching the semi-final stage of the Tennent's Scottish Cup and CIS Insurance Cup boosted revenue last season, as did an increase in television income and gate receipts due to the club's UEFA Cup campaign.
Hearts also announced a reduction in staff costs of £503,000 after reducing player costs and salaries.
However, failure to qualify for Europe last season and two managerial changes have affected the club's finances.
"We have made some notable progress, not least of which is securing the future of football at Tynecastle following the result of the EGM in January," added Romanov.
