GRAHAM Turner remains optimistic about Hereford United's future despite a gloomy prediction from auditors Baker Tilly.

They claim the Edgar Street club will not be able to continue trading if they repay the £1million loan to property developers Chelverton in May 2003.

Baker Tilly reached that view after preparing the club's accounts for the year ending May 31, 2001.

The club's annual shareholders' meeting takes place on Monday, September 23, and will report a loss of almost £109,000 for the year and an overall debt of £1,370,204.

Gate receipts fell from £383,272 in the year ended May 2000 to £263,110.

Advertising and broadcasting revenue also fell significantly from £177,158 to £41,189.

But despite these bleak figures Turner remains confident all parties can be satisfied.

"We know there is a sword hanging over

the club in the terms that we are contracted to pay £1m plus back to the developer in May 2003," he said.

"But it all hinges on some sort of development in and around the football ground and it is part of a 26 acre site and too big a concern for the council and developers to allow us to go out of business.

"The current situation is not this board's doing, it was all in place before we took over. We inherited all this but there has got to be a way to ensure the club survives and that means the developers have got to get some return on their million pounds.

"There is 4.6 acres alone that we lease so there have got to be ways and means of satisfying everybody.

"I'm quite optimistic that all that can be achieved with the good will of the council and that needs them to recognise the importance of the football club to the community."

* Hereford United take on Woking on Monday night (7.45) in a Nationwide Conference game which is live on Sky.