CHERRIES recorded losses of more than £15million for the financial year to the end of July 2013, the club’s latest accounts have revealed.

AFC Bournemouth Limited’s annual shortfall increased from £3,449,262 to £15,323,865 in the period covering their final season in League One and the summer leading up to their first season back in the Championship.

The gap was plugged through the allocation of £7.4million worth of Preference shares and a loan of £8,749,167 from AFCB Enterprises Limited, the club’s parent company, controlled by Cherries owner Maxim Demin.

That borrowing saw Cherries’ net debt exceed £15.5million, though more than that is owed to companies controlled by Demin with the three-year term for his first loan of £7,527,000 from Wintel Petrochemicals set to expire on October 5 this year.

The club’s turnover increased by more than £1million to £5,183,122 but a 16.3 per cent decrease in profit margin was reported due to a spike in the costs of sale.

Overall costs for wages and salaries were declared as £10,996,137 – an increase of more than £7million from the previous year – while the club spent £3,240,109 on player transactions after July 31, a sum which will be accounted for in next year’s figures.

Reviewing the company’s business, the published directors’ report read: “Football wages continue to be the highest expense for the club, being the main contributing factor to the significant increase in administrative expenses for the year.”

It continued: “The club’s future strategy is to become sustainable and forward-looking, implementing strategy that minimises both risk and exposure.

“One of the key risks affecting the company is the achievement of playing success in order to maintain the club’s Championship status. The company seeks to reduce this risk through continued focus on playing staff and team management.”

It added: “To develop the club’s financial stability, the directors have focused on operational efficiencies to maximise cash flow and investment.

“In addition, the company has introduced improved budgeting techniques for the forthcoming season to further its plans to become less reliant on external financing.”

The Daily Echo is expecting a comment from Cherries chairman Jeff Mostyn in relation to the club’s accounts tomorrow.