Worcester City Football Club's total debts are now approaching £500,000.

Accounts just released for the year ending May 31, 1998, show the club to be £457,642 in the red.

This follows total losses for the year of £31,708, although the operating loss was just £2,091 before interest charges were taken into account.

However, the loss was considerably less than the previous year, when the operating loss was £21,618 and the total loss £45,872.

City director and company secretary Brian Lancaster said: "The total deficit carried forward is now £457,000 but the club still has resources of more than £500,000. The club is still solvent.

"The reduction in the operating loss is as a result of extra gate receipts and more sponsorship. That is very encouraging."

Gate receipts rose by almost £14,000 on the previous year to £64,000, while the setting up of a three-year sponsorship deal with Wolverhampton & Dudley Breweries led to sponsorship and advertising revenue almost doubling to £36,079.

Revenue from transfer fees also doubled to £11,500.

The accounts will be discussed by shareholders at the club's annual meeting, to be held in the social club at St George's Lane on Tuesday, January 11, starting at 7.30pm.

This will be preceded by a special general meeting to discuss a resolution to increase authorised share capital from £100,000 to £200,000, and thus increase the maximum shareholding from £1,000 to £2,000.

This is to tie in with the recent £10,000 share issue to finance further ground improvements.

City's longest-serving director Mick Hill will retire from the board after 13 years at the annual meeting, but is to be made an honorary director.

Chairman Dr Michael Sorensen and directors Trevor Griffiths and Jon Prescott will offer themselves for re-election, while commercial director Bob Marley will stand for election, having been co-opted onto the board earlier this season.

The annual meeting will be followed by an open forum at which club officials and possibly members of the management team will answer questions.

Worcester City have been handed another home draw in the third round of the Dr Martens Cup.

They will play Blakenall or Bilston Town, both of the Dr Martems League Western Division, on Monday, January 24, kick-off 7.45pm.

It is City's third successive home draw after victories over Redditch United and Moor Green, and victory will take them into the quarter-finals.