I am sure we are all bitterly disappointed not to have survived more than one season in the Coca Cola Championship.

It was a monumental challenge for a small club with a very inexperienced management team and yet we competed extremely well and in virtually every game we gave a good account of ourselves. We fell just four points short of the initial target of 50 points. In the previous season 46 points would have seen us survive.

Whilst there was a massive differential between our player costs and virtually all the other Championship teams, I do not believe lack of resources was our main problem. In fact we had a number of successful bids for players; Kelly Youga £150,000, Akpo Sodje £350,000, and Dele Adebola £450,000, only to find the players did not see Scunthorpe as a good career move. The initial approaches by some of their agents would appear to have been merely to stimulate others' interest.

With the benefit of hindsight I believe our approach this season to bring in ambitious young players who see Scunthorpe as a step up the ladder, has produced a much stronger and more successful team. For the past few seasons we have adopted a policy of seeking out investment opportunities. These players are considered outside the manager's budget for players.

This is of particular importance in the current season as we tighten our belts to cope with the reduced levels of income in League One. Only time will tell, but I am confident we have players on our books who will appreciate substantially in value as they help us in our quest to return to a higher league. I have nothing but praise for Nigel, his management team and all the players for the very professional way they approached every game throughout the season.

On many occasions I felt we were rather unfortunate with decisions that went against us. It is a very fine line between success and failure on the football pitch and with a little more good fortune I am sure we would have survived. I know some fans will criticise me and my fellow directors for not spending more money in an attempt to retain Championship football, but three teams were always going to be relegated no matter how much money they spent.

We gave it our best shot, but were determined, that if we were relegated we would be in good shape to make an immediate challenge to return. We have all learned from the experience and none more so than Nigel. We are very fortunate to have a very intelligent young manager, extremely hard working and ambitious who continually strives for improvement in all departments. Couple this with his excellent motivational skills and I am sure we have a recipe for success.

The league was obviously our prime concern throughout the season but it was disappointing to go out of the League Cup in Round One and the FA Cup in our first game, to Hartlepool and Preston respectively. The latter part of the season saw us fighting for survival, which was unable to witness as I was doing likewise, having suffered a heart attack in late March.

At this point I must put on record my utmost thanks to Rex Garton who immediately took over as 'Acting Chairman'. It was a very difficult and busy time with many transactions taking place at the end of the season. He worked many long hours, working very closely with Nigel Adkins and Jamie Hammond, and I fear very much neglecting his own family and his business interests. I am sure my other coleagues gave him their full support but I know just how much time Rex devoted to the club during those difficult five months and continues to do, as I try and get back to sharing the load.

Shortly before our financial year end our budget for the 2008-09 season was looking decidedly unhealthy. It was important that we didn't make drastic cuts and weaken our squad. Similarly we did not want to sell any of our better players to balance the books. The matter was however quickly resolved, as Martin Paterson made it abundantly clear he did not wish to remain at Scunthorpe. I had been instrumental in signing Martin and had personally intervened to ensure his signature but I did not feel under any pressure to release him after just one season. Neither did I believe it was necessarily the best move for Martin to sign for Burnley. However he was determined it was the move he wanted and eventually Burnley raised their offer to meet our expectations, and provided we could replace Martin with a quality player at reasonable cost, this would be a very successful outcome for Scunthorpe United. The addition of Gary Hooper as a replacement for Martin is a better conclusion than we could possibly have imagined. The sale of Martin Paterson was shortly before the end of June and together with the sale of Billy Sharp is included in the accounts to 30 June 2008. This has quite obviously boosted our profits considerably.

I am therefore proud to be able to announce a profit after a small amount of taxation of just over 2.1 million pounds. A word of caution though, as we are forecasting a substantial loss for the year to 30 June 2009 and expenditure on transfer fees in the current season is already at a figure of £575,000. Nevertheless, this is a remarkably strong financial position for a Football League club.

Post year end events have seen us strengthen the squad and as I write my report we are two points clear at the top of the table.

There is still a very long way to go to the end of the season and there will undoubtedly be many more hurdles and difficult games to overcome but we couldn't be in a better position with almost a quarter of the season behind us. Despite being relegated from the Coca Cola Championship, I believe we should still feel very proud of Scunthorpe United's achievements. In a very uncertain world and with many football clubs faced with unmanageable debt, Scunthorpe United are competing very successfully in League One and with the financial strength to build for the future.

To our Club Sponsors, RAINHAM STEEL, a very big thank you for your support and likewise to all the companies and individuals who have supported us and contributed to the financial well being of our club.

To all our supporters, my sincere apologies for not providing you with Championship football in 2008-09 but do stay with us. You are the lifeblood of our club and with your help we will make a quick return to the Championship.

Regrettably, the prospect of a new stadium is now many years away due to the unprecedented world financial crisis. In the short-term we will continue to improve Glanford Park but are unlikely to undertake any major expansion of the stadium. We are presently nearing the completion of plans for an extension to the 'Executive Bar, further improvements to the 'Catering Points and a Lift Access at the Main Entrance.

To all our staff, in the office, the restaurant and catering staff, the ground staff and stewards and of course my fellow directors, who all play such an important part within our club, may I once again thank you all most sincerely for all your hard work and endeavour throughout a very demanding and exciting year.

Steve Wharton
Chairman
24 October 2008