THE ferry company SeaFrance is still thinking about whether to renew its sponsorship of Gillingham FC.

The decision will be crucial to the club which has just reported a loss of nearly a million pounds.

Chairman Paul Scally will be keen to see his so-far loyal commercial partner sign up for at least another year and inject a valuable six-figure sum.

Bosses of the cross-Channel operator were planning to hold a meeting with Mr Scally last week but it was postponed. They now hope to hold the meeting this week before making a final decision.

A company spokesperson confirmed that a decision would be made within the next couple of weeks. She did not know which way it would go but said the present deal had been good for both the company and the club.

Although at least one sponsor is thought to be waiting in the wings - Kent Reliance Building Society has shown interest - Mr Scally would almost certainly prefer to stick with SeaFrance, unless he can get a better financial deal elsewhere.

After reporting a £965,000 loss in the year to May 31, 2003, he is desperate to bring more revenue into the cash-strapped club.

Perhaps at least as worrying as the loss, blamed on the collapse of ITV Digital, is the £826,000 drop in annual turnover.

Mr Scally, whose own salary and benefits package fell from £342,000 (although the promised bonus was not paid in 2002) to £153,800, blamed this on the fall in the number of season ticket holders.

He has since introduced a range of price reductions that risk cutting income still further, unless they have achieved the desired effect of boosting ticket sales.

Mr Scally said in his annual report that it was “too early to judge the total impact of these initiatives.”

The chairman is also pinning his hopes on increased revenue from his conference and banqueting facilities, which are among the best in the county.

Although the accounts show no separate income from these, Mr Scally was bullish in his report.

He said the Great Hall had been “the scene of numerous successful banquets, dinners, dances and presentations, plus a hugely successful Christmas party season which attracted thousands through the doors.”