Southend United debts soar to nearly £9m

The newly-released figures for 2009/10 show the company cut its annual losses from more than £2million the year before.

This was partly achieved by cutting its annual wage bill from £3.4million in 2009 to £2.8million.

However, the figures also show the club now owes £8.9million to creditors, up from the previous figure of £7.7million.

The accounts show the club has been propped up financially by parent company South Eastern Leisure (UK) Ltd, run by Blues chairman Ron Martin.

It was lent £2.5million in the 12-month period and now owes £3.14million to the company.

Tara Brady, club chief executive, said: “South Eastern Leisure has invested a significant amount of money in the club over the past couple of years and will continue to support it.

“We are ambitious for the club to succeed and Southend United can play football to a much higher level than we are at present.”

However, Graham Wintle, senior auditor at WMT LLP, which audited the club’s accounts, sounded a warning for fans.

He said: “The directors are confident the parent company will continue to provide the necessary funds to the company through its financing facilities.

“However, there can be no certainty in these matters. This indicates the existence of a material uncertainty which may cast doubt on the company’s ability to continue as a going concern.”

It is not possible to check the latest financial status of South Eastern Leisure as its own accounts are nearly three months overdue, meaning the company could be struck off if it fails to file them.

The club, which has fended off repeated bids by HMRC to wind it up over unpaid taxes thanks to loans from Fossetts Farm stadium development partner Sainsbury’s, still owed £208,394 in tax and social security up to July 2010.

Southend United’s finance director, Nigel Brunning, said: “The club is confident it has solid building blocks in place for future success and these will improve the performance in future years.”