HEREFORD United shareholders will hear that the club has slipped slightly further into the red when they attend the annual meeting at the Three Counties Hotel at 7pm next Wednesday.

For the year ended May 31, 2003, the club lost £14,840, a small improvement on the previous term when the deficit was £21,670. The total shareholders' deficit now stands at £1,406,714.

But, in their annual report, the directors state that they are 'optimistic that next year will see us return a small profit'.

And with increased attendances during the current successful season and a financial boost from the transfer of Paul Parry to Cardiff City, their optimism would seem well placed.

The period under discussion which included the 2002-3 season, one of United's best for some time, showed an increase in gate revenue from £221,174 to £239,457 but the increase in the share payable to the league and visitors also increased from £15,918 to £27454.

Advertising and broadcasting revenue, however, was down by almost £20,000 and transfer fees received also fell by a similar figure.

Prize-money also dropped by slightly over £20,000, from £4,6872 to £26,350 but sponsorship was up by more than £5,000 and success on the field was marked by an increase in programme and club shop sales which added around £13,000 compared with the previous period.

Wages and salaries were down by more than £50,000 year on year, with the biggest part of this accounted for by a drop in the earnings of the three paid directors which came down from £110,333 the previous year to £60,334.