Dundee United has highlighted the club “failing to achieve promotion quickly and remaining in the Championship long term” as a “principal risk”, in its latest accounts.

In their strategic report, signed by owner Mark Ogren, the club’s directors say: “The owner remains fully committed and promotion to the Premiership remains paramount. Achieving promotion is vital for the club to be back on track towards financial self-sustainability. The club aims to regain its position in the Scottish Premiership and challenge in the top half of the Premiership.”

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The accounts show Dundee United recorded an operating loss of £5.01m for the year to June 30, 2023. It had posted a loss of £1.9m at this level for the prior financial year.

After gains on disposal of player registrations totalling £2.61m, and interest charges, Dundee United posted a pre-tax loss of £2.83m for the year to June 2023. This was significantly larger than the pre-tax loss of £997,620 for the year to June 2022.

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Dundee United’s directors note the club “suffered the financial effect of an increase in football expenditure combined with poor results in the Scottish Premiership which led to relegation to the Scottish Championship”.

The club is currently second in the Championship, with Raith Rovers top.

In the summer, Dundee United unveiled its signing of striker Louis Moult on a one-year deal.

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Under “principal risks and uncertainties”, Dundee United’s directors note “the revenues of the business are inherently linked to the on-field performance and success of the football team”.

They declare that “other principal risks are the wider economy financial issues which can impact match attendances”.

The directors add: “Other principal risks include the club failing to achieve promotion quickly and remaining in the Championship long term.

“The board have implemented a long-term stable strategy to ensure the best resources and facilities possible to achieve promotion in season 2023-2024 with the long-term aim of being competitive in the Scottish Premiership.”

The directors note that, since December 2018 when Mr Ogren took control of Dundee United, more than £13m has been “invested into the club to enhance the infrastructure, the playing squad, academy and facilities”.

The accounts show that, at June 30 last year, there was an interest-free loan of £10.116m from Mr Ogren, due after more than a year, and note this is “interest-free”. The loan from Mr Ogren was £9.34m a year earlier.

Auditor Thomson Cooper says in its report on the accounts: “Based on the work we have performed, we have not identified any material uncertainties that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.”