Bristol City have revealed record losses of £6.56 million for the year ended May 31, 2009.

Made public for the first time today, the accounts show the biggest single annual deficit since the club went into liquidation and was re-formed as Bristol City 1982 nearly three decades ago.

The figures compare unfavourably with the previous year, when City announced pre-tax losses of £1.99m, and suggest the club is being hit hard by the biggest recession since the Second World War.

Turnover between May 2008 and May 2009 fell by five per cent from £12.3m the previous year to £11.6m, while staff costs, including players' wages, rose from £8.4m to £10.2m during the same period.

City also spent £1.7m on funding their new stadium project at nearby Ashton Vale, continued to invest in their training ground at Failand and lavished a club-record fee of £2.25m when signing striker Nicky Maynard from Crewe Alexandra in July of last year.

Responding to the latest figures, multi-millionaire chairman Steve Lansdown admits there is risk, but insists the losses do not cast doubt over the club's ability to continue operating as a viable concern.

In his annual statement to shareholders, he warned: "The club is in a very exciting phase of its development and, with excitement, comes risk."

But Lansdown says he and fellow director and major shareholder Keith Dawe will continue to offer financial backing on a scale which will guarantee the club's future.

He said: "We recognise the need for further investment in the club by the board. There is no doubt that we have adopted an aggressive strategy, but the board is committed to ensuring the club is not put at risk because of this.

"The Group is setting down firm foundations to establish a top-class football club with stadium facilities to match. Our expenditure to that end is reflected in an increased loss for the year of £6.56m."

Lansdown insists he will continue to invest in the first-team squad, while pressing ahead with plans to sell Ashton Gate and move to a new 30,000 all-seater stadium less than a mile away.

He described the increase in the wage bill as "inevitable" if Bristol City are to compete at Championship level and maintain aspirations to play in the Premier League, saying: "We must focus on continuing to build our squad gradually, adding quality whenever we can and ensuring we build a unit which can compete at this level and take us further."

Referring to the £1.77m already invested in the stadium scheme, he said: "These costs have been incurred mainly by professional fees and are a necessary investment if our dreams of a new stadium are to turn into a reality."

Other operating costs for 2009 amounted to £6.29m – an increase of £2m on the previous year – and Lansdown explained these in terms of the continued development of the club's training ground at Failand, describing the improved facilities as "a great benefit to the first-team squad and Academy".

Lansdown admits City's defeat in the 2008 play-off final and failure to win promotion to the barclays.co.uk/" target=_blank rel=nofollow>Barclays Premier League cost the club dear and resulted in a drop in season ticket sales.

He said: "The fact (promotion) was not achieved and was then followed by the worst recession since the 1930s meant season ticket sales fell from 13,663 to 11,256."

Attendance at Ashton Gate is again down this season and Lansdown conceded: "We will have to work extra hard to increase pay on the day support to compensate for this."

City's chairman explained the fall in turnover in terms of the team's failure to make the play-offs last season. He said: "The 2008-09 campaign was one of consolidation for us. It was always going to be difficult following the euphoria of the previous season, when we reached the play-off final at Wembley, and our second season in the Championship was not so rewarding financially.

"The fact we challenged for a play-off place again last season, finishing 10th, was a creditable performance and one to build on for the future."

Meanwhile, Bristol City have announced they will stage a special meeting for supporters in the Dolman Exhibition Hall at Ashton Gate on Monday, November 23 (7pm).

This meeting will be open to all fans on a first-come, first-served basis (900 limit due to the layout of the room). Lansdown will make a short presentation before opening up the floor for a question-and-answer session alongside manager Gary Johnson and chief executive Colin Sexstone.