City's £83,568 loss

Despite attendance figures holding up against the budgeted average, the club have cited poor playing results as a reason for the loss because of their impact on commercial income.

Unexpected costs, such as private medical cover for injuries suffered by players Chris Brass, Steve Davis, Gary Pearson and Andy Bishop, the estimated £20,000 loss from the cancellation of last summer's Newcastle United friendly and repairs to KitKat Crescent and the training ground, were also contributing factors.

The results were presented last night to a joint meeting of the football club board and its holding company the Supporters' Trust at KitKat Crescent.

A similar-sized profit was made by the Minstermen during the last financial year, meaning the club has traded at a breakeven point over the last two seasons.

But, with the first annual £100,000 loan repayment due to the Football Foundation during the next financial year, the onus will be on the Trust and City's supporters to embark on another important fundraising drive.

City managing director Jason McGill has also provided a long-term loan to the club of £300,000, which is not repayable until funds are available or KitKat Crescent is sold.

Commenting on the loss, finance director Terry Doyle said: "The results are clearly a disappointment, however, taken against the background of the extremely poor playing season experienced, they are nowhere near as bad as might have been expected."

The club presented a breakeven budget to the Trust Board last year with sufficient flexibility to accumulate a small loss.

Another breakeven budget has been proposed for the coming season and it is anticipated that Elliot Stroud's appointment as a full-time commercial manager will improve the club's potential revenue from hospitality and sponsorship.

A total of £150,000 has also been attracted from new sponsorship partnerships negotiated by the club board.

About manager Billy McEwan's budget for the forthcoming season, Doyle said: "I should like to assure all supporters that it is an appropriate one and Billy is happy that he can assemble a squad of players to provide a considerably more successful season than last year."

But the club's board have requested that the Trust board undertake the main responsibility for the fund-raising necessary to meet the first loan interest repayment of £100,000 and Doyle added: "The club was significantly under-funded when it was taken out of administration, which is borne out by the losses previous reported in the first period of trading to June 20, 2003.

"During the autumn of last year, the football club board approached the Trust board to identify that some restructuring of finances was necessary in order to put the club on a longer-term footing. Following discussions, it was evident that the Trust Board was unable to come up with any long-term proposals of the quantum required.

"As a consequence, Jason McGill has facilitated a loan of £300,000, the principle terms of which are that it is not repayable until funds are available or KitKat Crescent is ultimately sold."

Updated: 10:21 Tuesday, July 26, 2005