Nottingham Forest have announced that the club increased their annual turnover by £1.3 million to £9.2 million in the past financial year but continue to run at a loss.

A statement on the club's official website stated that, despite increased income through gate receipts and a dramatic reduction in staff costs, Forest are still operating at a loss of £4.2 million.

But overall, the financial year which ended on May 31, has been a successful one with gate receipts up from £4.6 million to £5.6 million - owing largely to the FA Cup run that saw Colin Calderwood's men face Charlton and Chelsea last season.

Staff costs including wages, bonuses, signing-on fees and national insurance contributions, remain the highest outgoing at £8.3 million but that represents a minor triumph in comparison to last year's £9.5 million.

The club also managed to reduce the £4.3 million loan received from Nottingham City Council in order to refurbish the Trent End stand prior to Euro 96 to £3.3 million.

The £4.2 million shortfall was made up by the £1.2 million generated from player sales as well as the £3 million loan given by chairman Nigel Doughty.