Hereford United Football Club will not be in a position to continue trading if they repay a £1million loan to property-developers Chelverton in May

That is the stark message from the auditors Baker Tilly who have prepared the club's accounts for the year ending May 31, 2001.

The scenario is a sobering one for the cash-strapped Edgar Street club and their band of supporters.

But chairman Graham Turner's own stated view is that the financial problems surrounding the club will be resolved before the D-Day of May 19 and potential investors might then be prepared to take over.

The former Shrewsbury and Aston Villa boss is keeping his fingers crossed that Herefordshire Council will play a key role in helping to secure the future of the Nationwide Conference club.

A loss of almost £109,000 for the year and an overall debt of £1,370,204 will also be reported at the club's annual shareholders' meeting in the Legends Bar on Monday, September 23, starting at 5pm.

A good run in the FA Trophy was not enough to counter an early exit from the FA Cup that season, which saw gate receipts drop from £383,272 in the year ended May 2000 to £263,110.

The money made from advertising and broadcasting also plummeted significantly by May 2001, totalling to £41,189, compared to £177,158 the previous year.

Another salient statistic shows the club's three directors -- Turner, Joan Fennessy and Ron Jukes - took a cut in salaries. They were paid a total of £49,783 in 2001, compared with £73,483 the year before.