GILLINGHAM have announced a near £1 million loss for the year ending May, 31 last year. The loss of £965,000 compares with the previous year’s profit of £558,000.

In the latest set of accounts, first published by Gillingham Supporters’ Trust, club chairman Paul Scally blamed the collapse of ITV Digital as the biggest factor behind the loss but stressed he was confident the club would break even in the current financial year.

He said: “Our accounts for the previous year included about £2.9 million from ITV Digital, while those for 2002-03 saw that figure replaced by about £550,000 from Sky Television plus a grant from the Football League of £332,000. This represents a reduction in our revenue of about £2 million.”

He added: “At the same time, we were also hit by the enforced re-negotiation of the Football League internet deal which saw our potential annual income from this source fall from about £400,000 to £30,000-£20,000, which was another unforeseen blow.

“In this context, we were naturally delighted with the revenue generated by our cup ties against Chelsea and Leeds United, especially the home tie against the latter which was televised live.

“But the ITV Digital fiasco has been far and away the biggest factor in seeing our profit of £558,000 the previous year transformed into a loss of £965,000 for 2002-03.

“Nevertheless, our prudent measures to minimise the impact at least kept the difference well below the £2 million of TV revenue we actually lost. Similarly, turnover fell from £8,755,000 to £7,929,000 - but again it was not as big a drop as might be expected.

“Early indications are that we seem likely to achieve a break-even figure for the current financial year, which will be a creditable achievement in the circumstances.”

The latest accounts show that Priestfield Stadium was valued at £13,950,000 by Dunlop Haywood Lorenz, consultancy surveyors of Manchester on May 31, 2002.

The company has a £7,500,000 bank facility which is secured by a debenture, dated May 17, 2000, over the whole of the company’s assets and by a legal charge over Priestfield Stadium.

A total of £12 million has been spent in relation to the development of the ground. The directors estimate that the completion of the development will cost a further £150,000.

A spokesman for Companies House said that the accounts were available for public scrutiny from December 30 last year.

Copies can be bought for £5 and Nigel Holland, chairman of Gillingham Supporters’ Trust, said the organisation applied for their copy last month.

He said: “We were not pro-active in getting a copy and shouting ‘look at us, we’ve got the figures.’

“We have not commented on the figures - it is not our place to. We simply made them available as a service. We believe it is a matter of public interest.”

The accounts will be formally presented at the club’s annual meeting, a date for which has still to be agreed.