Rovers lost £11.2m in the year to June 2022, the club’s latest accounts have shown.

The loss was an increase of £4.6m on the 2021 figure of £6.58m.

The operating loss was £17.4m, although the sale of Adam Armstrong to Southampton for an initial fee of £10m is included in the profit on the trading of intangible assets of £6m.

That reduced the pre-tax loss to £11.2m.

Losses in the year to June 2021 were reduced by the £17.3m sale of the club’s Senior Training Centre at Brockhall, and associated housing, to a third party owned by Rovers’ parent company.

The proceeds of the sale are due to be paid by June 30 2023 though interest of £761,246 was received in the period to June 2022. Rent was payable by the club for the lease of the training ground, which was £356,000 for the year.

There was a rise in turnover of £2.1m, helped by the return of crowds to matches after the entirety of the 2020/21 season was played behind closed doors.

The £16.6m turnover figure was Rovers’ highest since 2018/19 (£16.7m).

However, the increase in turnover was offset by a £2.2m rise in operating expenses.

In the previous accounts, Rovers received £2.6m for an Covid insurance claim when the season was suspended, and £700,000 in furlough income.

Rovers’ turnover for 2021/22 was made up of £3.3m matchday income, £8.4m television and media rights, £4.8m commercial and £80,000 ‘other’.

Elsewhere, there was a reduction in wages and salaries of £1.3m.

The £24.4m figure was the lowest since 2018/19 (£22.4m), owing to the departure of a number of senior players in the summer of 2021.

There was a reduction in staff across the year, down to 209 from 217, though much of that was in the senior football players and management section, with seven fewer than the previous year.

As a result, the wage to turnover ratio was down to 147 per cent from 177 per cent the previous year and the lowest since 2018/19.

The three directors’ salaries totalled £468,266, a reduction of £21,000.

The average attendance was 13,501, the lowest since promotion from League One.

The accounts state that as of June 2022 net liabilities were £144.8m, a rise of more than £9m, while the share capital figure was £176.5m.

Under ‘going concern’, the accounts state: “In common with many football clubs, the company may continue to make operating losses and incur net cash outflows depending on a number of variables including the success of the in the league and cup competitions and the level of transfer activity.

“The company is funded through a bank overdraft facility and shareholder loans, and in view of the current financial position the company remains reliant on its ability to maintain existing and obtain additional funding as necessary.

“In managing the finances of the company the directors remain mindful of the need to ensure the company will comply with the Championship Profit and Sustainability rules.”

The overdraft facility taken out with the State Bank of India is up for renewal in May 2023, with the club’s directors believing that will again be extended.

The accounts add: “As part of the directors’ assessment of going concern they have prepared detailed cash flow forecasts for the period to June 2024.

“These forecasts indicate that the company will require significant funding in additional to the current facilities available to the company.

“The amount of additional funding required will be dependent on the net proceeds of any player trading, on field performance and availability of bank facilities.

“In view of this, the directors have received confirmation from the ultimate parent company (Venkateshwara Hatcheries Pvt. Ltd) that is has sufficient funds and is willing to provide such additional funding as may be required to fund the company, to the extent necessary for the company to continue to trade and to pay its liabilities as and when they become due, for the 12 months following the approval of the accounts and thereafter for the foreseeable future, even in the event of the bank facility not being renewed.”

The accounts reveal there are two loans outstanding to the EFL: one of £389,400, which is repayable in four equal half yearly instalments from October 2022, and the second of £5.5m, which is repayable in four equal half yearly instalments from August 2022.

These are interest free advances secured against future distributions from the EFL.

Since June 2022, Rovers have entered into agreements worth £4.4m regarding player transfers.

Those are the permanent signings last summer of Callum Brittain (Barnsley), Sam Szmodics (Peterborough United) and Dom Hyam (Coventry City).