SOUTHEND United’s chief executive Tom Lawrence insists the Shrimpers are close to steering their way through ‘tricky waters’.

Blues remain in a transfer embargo due to a winding up petition issued by HMRC while the club’s financial issues have also seen staff being paid late.

But Lawrence is adamant the club’s future is still bright despite the recent difficulties.

“There is no denying that things have been tough and we have had to navigate tricky waters in recent times,” said Lawrence in a club statement issued on Saturday.

“However, we continue to implement a recovery plan following the pandemic and back to back relegations and we are almost out the other side.

“However, the fact is that there is currently a funding gap of around £2million per year that needs to be plugged.

“The medium term solution to plug this gap is Fossetts Farm and the short term answer is bridging finance.”

Lawrence praised those donating towards the club – including supporters, the Shrimpers Trust and main sponsors PG Site Services.

But, despite their contributions, problems remain at Roots Hall.

“Money has been tight, and we have had to make difficult decisions on how to apply resources,” said Lawrence.

“However, the donation, loan from the Shrimpers Trust and matched loan from PG Site Services were all used exclusively to pay salaries.

“We are grateful for the support.”

However, Blues are still working towards securing bridging finance.

And Lawrence admitted progress was being made.

“Significant steps have been taken to move the bridging finance towards completion,” said Lawrence.

“That finance will provide the club with the money to operate pending the start of construction works at Boots & Laces - which is targeted to commence before the end of the second quarter next year.”

But he did concede staff have continued to be late and praised them for their patience.

“Our incredible staff, some of whom have been paid late on more than one occasion, have been patient, loyal and understanding,” said Lawrence.

“We have apologised to the affected back of house staff and we are grateful to them - they will be rewarded.

“November salaries have been paid in full and the vast majority of December salaries have been paid.

“We will be working hard to clear the balance in the coming days and we are sorry for the delay.”

But Lawrence is confident the winding up petition issued by HMRC will be dismissed when the club are due back in court in mid-January.

He added: “We speak regularly to HMRC, to keep them updated as to the progression of our financial recovery.

“We will use some of the bridging finance to pay off the HMRC debt.

“This will result in the winding up petition being dismissed.”

And, on the strike off being listed on Companies House, Lawrence said: “The recent reference to strike off (on Companies House) relates to non-filing of accounts.

“Our July 20 accounts are nearing completion and once filed will result in the Companies House strike off application falling away.

“Our July 21 audit can then be immediately commenced.

“Ron met with the senior partner of the club’s auditors yesterday to accelerate the process.”

But Lawrence again stressed reasons to remain positive.

“There are many positives,” said Lawrence.

“New training pitches are constructed, works on the new stadium and residential development start in the new year and bridging finance is on its way.

“We will soon be in a position to ‘plug the gap’.

“The team have done very well and we appreciate the efforts of Kevin (Maher) and the coaching staff who have assembled a competitive team which is currently occupying a play-off spot.

“With players returning from injury, we look forward with optimism to the second half of the season.”

Blues sit sixth in the standings ahead of Sunday’s trip to Bromley.

And Lawrence also hailed the support the Shrimpers receive.

“The support from our fans has been fantastic, taking over 700 to Gateshead is phenomenal,” said Lawrence.

“The club need your continued support as we take the final few steps to transition away from what has been a very difficult period.

“We have faced the head winds together and, if we keep rowing, we will arrive at the promised land.”