GILLINGHAM’S total debt grew to almost £12 million last year.

The latest set of financial figures released by the club show that, at the end of their first season in League 1, the total debt stood at £11.9m, up from £10.8m the year before.

Chairman Paul Scally said: “Turnover for the year has reduced by over £2.3m to £5.1m. This was partly due to the club’s relegation and partly due to the outsourcing of conferencing and banqueting operation to Compass Leisure.

“In spite of this the company’s gross profit has increased by over £215,000.

“The total losses for the year were under £1m after the cost cutting measures put in place by the directors.”

Gillingham’s first year in League 1 saw wages fall from £4.1million a year to £2.64million following a big reduction in staff throughout the club.

Mr Scally is currently working with the club’s bankers, the Bank of Scotland, to try and arrange a way of reducing the payments of the overdraft, news of which is expected imminently.

Speaking in the matchday programme for Saturday’s game against Walsall, Mr Scally was looking forward positively.

“The business off the field is going fantastically well,” he said. “Our commercial department are going from strength to strength, season ticket sales are excellent, our finances are restructured (subject to finalising contracts) and I’m talking to a number of parties that may be interested in assisting our team building financially.”

The financial figures were released ahead of the club’s annual meeting to be held at Priestfield on September 13 at 6.30pm. A fans’ forum will be held on the same evening at 7pm with the chairman and management facing questions from supporters.