HIBS are continuing to make strenuous efforts to deliver a new East Stand despite the current financial crisis which has gripped the world in recent months, chief executive Scott Lindsay has told shareholders.
The Easter Road club announced at last year's shareholders' annual general meeting they were to investigate the feasibility of completing the redevelopment of their stadium, taking capacity to around 22,000.
But 12 months on, Hibs are still unable
to say when work will begin with chairman Rod Petrie admitting the jump in costs since the new West Stand was completed in 2001 had come as "quite a shock" with steel prices alone having rocketed by almost 70 per cent in the past year.
Even so, Lindsay held out the hope that the hard work going on behind the scenes could yet "provide the right package at the right time", although Petrie insisted the club won't go cap in hand to owner Sir Tom Farmer for a loan to press ahead with the project.
Lindsay, addressing his first AGM, said: "In late 2007, with many indicators pointing in a positive direction, we announced the start of a procurement process that, with existing planning consent running up to February 2010, we sought an answer to this question: 'Can we, in the cold light of day, make an economic case to match the emotional case, to complete the stadium?'
"I doubt anyone at that time realised just how cold the cold light of day would become. Since last October a huge amount of work has been undertaken, not just by the club but by architects, engineers and potential contractors while supporters' participation has also been significant.
"Unfortunately, since then another consistent factor has been the volatility of both financial and commodity markets. The board has stated many times that despite the health of our balance sheet, the club does not have all the cash resources necessary to build a new East Stand.
"That was the case in October 2007, and it remains the case today.
"What has changed is the bridging of the funding gap has become much more difficult due to the global financial crisis. External funding is not only more expensive but is also much more difficult to find.
"Construction costs, and in particular materials costs, have also risen sharply in recent times."
However, amid such a dismal economic background, Lindsay held out a ray of hope that Hibs might find themselves in the position to give such a major project the go-ahead, with the accounts showing almost £4million in cash balances. However, he warned against being rushed towards a conclusion.
Petrie said the club could apply to extend the planning permission and held out the hope that in a contracting building industry, costs could fall so helping Hibs' plans but also adding: "What we have to do is assess what is in the best interests of the football club both in the short and long term."
The full article contains 499 words and appears in Edinburgh Evening News newspaper.
