What a difference 12 months can make. Reading my last Chairman's Review I find it hard to believe what has happened in the intervening period. I was so confident that I was handing over a club in great shape and we had, as I said, " every prospect for a successful season" The turmoil that embraced our club at the end of last season, is, I hope, firmly in the past and what better position than top of the League to be writing my Review.

I really must begin by thanking Brian, who was prepared to return and pick up the pieces, together with Russ, Peter and Nigel, for rebuilding their friendships and working tirelessly for the benefit of Scunthorpe United. Paul Wilson and Paul Longden have also played an important part in rebuilding what I referred to last year as "a vibrant and exciting atmosphere in and around the club" The players of course are the ones who finally deliver when the whistle blows and without exception they have been truly fantastic so far this season. I have every reason to believe we can achieve great things and look forward to the remainder of the season.

This review however is about last season and our financial accounts to the 30^th of June 2004. With the benefit of hindsight we perhaps cut our costs too severely. With a relatively small squad and a number of inexperienced players, the pressures eventually became too great. If we hadn't had such a great Cup run I am sure they would have coped admirably but the extra games and consequential injuries finally took its toll in the latter part of the season. The revenue from the Cups was in excess of £400,000 which was £200,000 over our fairly optimistic budget. Expenses and bonuses were some £68K higher than budget but it still made a considerable gain for our finances. The majority of the excess over budget was as a result of the Portsmouth game but once we had beaten Sheffield Wednesday we were bound to be ahead and this, in my opinion, was when the squad should have been strengthened.

The Cup run, particularly getting to the 4^th round of the FA Cup and facing Portsmouth was the highlight of an otherwise disappointing, one could say almost catastrophic season. We shouldn't however forget the League's leading goal scorer, Steve MacLean. Steve joined us on loan from Glasgow Rangers following a business meeting I had with David Murray. Steve very quickly established himself as a favourite with our supporters, scoring freely until injury just before Christmas. It looked most unlikely that we would be able to extend his loan but always worth a chance Brian and I visited Ibrox to see what could be done. Brian was able to persuade Alex McLeish that it would benefit Steve to remain at Glanford Park and the rest is history. Steve has since joined Sheffield Wednesday for a fee in excess of £300,000 and his wages will be well above what we could afford to pay. Steve's success last year delayed Paul Hayes progression, which is regrettable, but he has wasted no time this season in showing that he is equally able to be the League's leading goal scorer.

The Board's prudence last season, ensured that we would produce a satisfactory financial performance. I personally anticipated a profit even after a high charge for depreciation, but due to increased costs, some of which should not be recurring, the profit is before depreciation and a loss of £91,467 after depreciation of £124,720. This satisfactory performance has enabled us to increase the budget for player's wages in the current season, resulting in a slightly bigger but more importantly, much more experienced squad. Andy Crosby, Ian Baraclough and Paul Musselwhite have all been great signings and all three settled in very quickly to be part of a united and very committed squad.

I must pay tribute to our very small Board of Directors. The Vice Chairman, Rex Garton and newly appointed Simon Elliott, were resolutely behind me when I put forward my plan to stop the decline and have worked tremendously hard to rebuild our fortunes. Simon and new Associate director Jason Oxenforth have also been very successful in conjunction with Michelle Harness in generating much more commercial activity.

Finally I would like to pay tribute to all members of staff and this includes the often forgotten but very vital match day personnel, for their tremendous effort and commitment throughout a very difficult period. Unfortunately the changes we made weren't without casualties. Don Rowing and his personal assistant Jenny Short left shortly after my return and it is only right that I thank them for their many years of devoted service to Scunthorpe United. Fortunately Mark Blackbourne, a very experienced Football Club Secretary and Chief Executive, was able to help us out on a short term, part time basis. I am pleased to say he has since accepted an Associate Directorship with the Club. I would also like to thank all our sponsors, advertisers, and especially our supporters, without whom we couldn't possibly maintain a League football club.

Steve Wharton

Chairman

3 November  2004