United have announced their accounts for the last financial year, ending June 30 2012, which show a record loss of just under £2-million.
When a profit of £1.4-million was announced 12 months ago, the Iron warned that a seven figure loss was forecast for 2012 following relegation into League One.
“The drop in total income which I predicted in my last year’s report at £4-million in fact became £4.5 million and we were only able to reduce our costs by circa £2-million,” wrote chairman Steve Wharton in this year's report.
The Iron’s costs have fallen during the past 12 months – but so too has turnover.
Having seen their wage bill top the £5-million mark for the first time during the year ending 2011, that figure was slashed to £3.3-million in 2012.
However, due to lower away attendances in League One and reduced home numbers due to poor form, income on matchday revenue is well down.
“Clearly this kind of loss is not sustainable. it is therefore important that the club gets back to a position where it is not running up debt,” explained general manager David Beeby.
“We were able to reduce wages from £5.5-million to £3.7-million, but when turnover’s £3.2-million, your wages shouldn’t be as high as £3.7-million.
“We have to continue to work hard to get costs down to an affordable level to ensure the club stays on a sound financial footing.”
The club's AGM will take place in the Executive Lounge at Glanford Park, on Monday, December 10 (7pm).