THE Swindon Town FC accounts for the financial year ending May 2006 have been completed and they paint a bleak picture of substantial debt and ongoing loss.

The headline loss for the financial year was £732,485, which was down significantly on the £1.3million debt incurred at the County Ground in 2004-5.

This improved figure was only possible thanks to the transfers of Sam Parkin to Ipswich Town and Rory Fallon to Swansea City, which saw the Robins recoup more than £600,000.

Without this extra income the headline loss for the financial period 2005-6 would have totalled £1,341,673 - leaving the club more than £4,000 worse off than in 2004-5.

With the Robins relegated to Coca Cola League Two that season, turnover was unsurprisingly down almost £400,000 from £3.5 million to a little over £3.1 million.

Administrative expenses were trimmed however, from £1.4 million to £1.25 million, which went some way to reducing this shortfall.

Cost of sales was also down from £3.4million to £2,9million, and a saving of more £200,000 was made on players' wages.

The accounts for the 2005-6 financial year also make clear the club's position regarding the Company Voluntary Arrangement (CVA).

The club states that in August 2002 it entered into a five-year CVA, but that the final payment of £900,000 was not settled by the June 2007 deadline.

With the club currently in negotiations with BEST Holdings about a possible takeover, assurances have been made that the outstanding debt will be paid.

Should the takeover fall through however, the club will ask for another period of amnesty until new investment is secured.

"Once the sale is completed the new investors will provide sufficient funding to pay the final CVA installment," the accounts state.

"However, should the completion of the sale not take place, the company will seek approval from its CVA creditors to delay the CVA completion for sufficient time to keep the company trading and to secure alternative funding."