GILLINGHAM chairman Paul Scally believes the decline in last season’s attendances contributed heavily to the club’s £1million loss in turnover last year.

Figures released for the 2004-05 season, when the Gills dropped out of the Championship, show the club lost a total of £1.8million for the year.

Mr Scally said: "The loss of £1million during our last season in the Championship was disappointing and was principally because people were not coming to the games. Some supporters got complacent and bored of the Championship and I find that quite remarkable.

"The wages had gone up £300,000 as we brought in extra loan players and management to try and stay in the Championship. Obviously it’s disappointing but that’s what happens when you’re chasing ambition and people don’t come."

Turnover fell from £8.4million to £7.4million. Trading losses were £750,000 with an additional £1million going on bank interest and depreciation. That compares to a trading profit of £800,000 the year before.

But despite the club’s current debts Mr Scally is predicting better fortunes on the way.

He said: "I’ve been working on the restructuring and rebuilding of the club’s finances since then. What’s happened since then is we’ve been on a cost-cutting exercise.

"We’re very advanced in restructuring the bank debt and by the end of the season there will be some very positive news on the restructuring but it’s all very delicate.

"We’re quite fit and healthy and when the income reduces to £4.5million from £7.5million then you have to manage the costs accordingly.

"I’m very happy with the squad and the management team and the way we’re playing. There’s a whole new spirit and we’re very positive."

* FULL STORY IN MONDAY'S MEDWAY MESSENGER.