Shrewsbury Town chairman Roland Wycherley warns of 'considerable difficulties' if club keeps losing money
Shrewsbury Town's chairman has warned of "considerable difficulties" if the club keeps losing money, after cash reserves fell below £1 million for the first time since the move to Greenhous Meadow.
The club's latest accounts, newly published on Companies House, show that losses increased by 68 per cent to £480,152 last season, as a lack of player sales and higher player wages chiselled away at the club's nest egg.
With the accounts covering the period to June 30 last year, the club has since bolstered its reserves thanks to the sales of players such as Connor Goldson and Ryan Woods to Brighton and Brentford respectively.
But in a statement accompanying the figures, Town chief Roland Wycherley said the reserves were being affected by the losses, adding a fresh warning that he would not stake the club's future on borrowed cash for short-term success.
"Once the cash reserves are depleted the club would face considerable difficulties," Mr Wycherley said.
"Whilst the present season has seen an umber of player sales which have restored the cash reserves to a healthy position, the fact remains that this too will be depleted over time in the absence of an improvement in operating results."
He added that investment in the club was the main call from fans, but warned that he did not think that was a viable way to secure the long-term future of the club, which is currently tussling against relegation from League One.
"I know that this is not a solution and has been a road to ruin for many other clubs as 'investment' will inevitably be borrowed and just as inevitably lost," he added.
There were several bright spots in the accounts, which cover last year's League Two promotion campaign.
Turnover increased by 5.6 per cent to £3.97 million, in a campaign which saw a record attendance cram into Greenhous Meadow to witness the visit of Jose Mourinho's Chelsea.
Advance season tickets also improved by 24 per cent to £477,000.
Players wages increased last season compared with the one before, which had seen the club relegated from League One amidst a rash of loan signings.
That led to a "root-and-branch" review of the club's structure and budget, and manager Micky Mellon succeeded in returning the club to English football's third tier at the first attempt.
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