WORCESTER City have slipped further into debt after the latest figures reveal the St George's Lane club is £636,000 in the red.

Accounts for the year ending May 2001 show a total loss of £61,802 -- an operating deficit of £21,087 plus interest charges of £40,715.

With the deficit carried forward from the previous financial year, it means City owe a total of £636,613.

This is despite a five per cent overall income increase to £277,883, including a rise in gate receipts from £83,696 to £96,472. The loss was down almost £7,000 on the previous year's deficit.

The accounts also show that less money was spent on playing staff wages than the previous year -- down from £183,182 to £178,917.

Shareholders will discuss the accounts at the club's annual meeting at St George's Lane on Sunday, July 7 (11.30am).

Chairman Dr Michael Sorensen said: "We do our best to balance the books and at the start of each year we set out with the intention of not losing money but we find it pretty nigh impossible.

"We try to put a team on the pitch to compete in their league and that stands a chance of winning but that is very difficult to do with the set of circumstances we have where we can't generate sufficient funds from the current location.

"Eleven years ago when we started we said we cannot continue on the current site because we simply cannot generate enough money from there.

"It is not a recipe for success and despite our best endeavours we are handicapped by the lack of facilities at our disposal. We need to raise 75-80 per cent of our income from non-football revenue and we are some way off that."

Sorensen believes a ground move to Nunnery Way is the only way for City to climb out of their financial abyss.

"If we moved to a new stadium instead of average crowds of 980 we would be getting 1,400-1,500 and not be losing money," he said.

"New stadia attract new people, families and if you look at other clubs at new grounds they have always attracted bigger crowds because they look nice, are comfortable and have better facilities."

Sorensen insisted, however, that manager John Barton can still compete for the Dr Martens League title despite the club's parlous financial position.

"It's certainly not all doom and gloom and we are hopeful we will be able to compete next season with the best of clubs and we still have a chance if we can keep our best players fit," he added.