I began my last report by offering my congratulations to the Manager, Brian Laws, for one of the best seasons in the clubs history, finishing as runners up in League 2 and automatic promotion to League 1. This year I begin once again by congratulating the manager and his staff and especially all the players, for once again exceeding all expectations with a top half finish in our first season back in League 1. After such a successful season it is therefore most unfortunate to find Brian and Russ leaving the club earlier this week to join Sheffield Wednesday. Success brings its own problems and it was inevitable that Brian would not be able to resist the challenge and opportunities which a big club such as Sheffield Wednesday could offer. He and Russ leave with our grateful thanks for what they have helped us to achieve at Scunthorpe United and our very best wishes for success with their new club. We are very fortunate that Nigel Adkins, who has played a huge role in our continued improvement, has agreed to assume temporary charge of the 1^st Team ably assisted by Club Captain Andy Crosby and Senior Professional, Ian Baraclough. He will also call on the support and experience of Tony Daws who has kindly agreed to assume responsibility for the Reserve Team. I am confident they will keep us on track as we sit nicely placed one point behind an automatic promotion place. It is vitally important that we maintain stability and the fantastic team spirit which we currently enjoy. If Nigel is successful, he will be a very strong candidate to replace Brian, if he were to want to continue on a more permanent basis.

Once again we enjoyed a very successful FA Cup run, finally losing away at Manchester City 3-1. The score line was not a true reflection of the game, we were certainly the better team in the first half.

The players again deserve a special mention especially our Club Captain, Andy Crosby. Each and every one of them was magnificent throughout the season. Billy Sharp and Andy Keogh received most of the publicity but they would readily admit that the team's performance helped both of them to have such a great season. Billy finished the season as the League 1 leading goal scorer with 23 league goals.

Last year I reported the arrival of Tony Daws as our new Youth Team Coach and his assistant Guy Parkin. In their first year they have implemented many changes and these are now beginning to bear fruit. Only last night the Youth team won their first round Cup game at home against a strong Bradford side. Unfortunately I wasn't able to attend the game but the reports I have received on how well the boys performed, the style of the football played, and some still in their first year, bodes very well for our future.

The supporters again have played a huge part in a successful season averaging over 5,000 Home Supporters and our away support continues to be one of the best in our league.

The administration side of our business has had a number of changes at junior level but in the main is continuing to develop as the senior management gain more experience. Michelle Harness has once again produced some excellent results with increased Commercial activities.

The new Stand development is taking much longer to progress than anticipated but is still very much one of our priorities. Outline plans for discussion with our supporters should be available early in the New Year. We did however complete a major refurbishment of all facilities within the Grove Wharf Stand which appear to have been well received by our supporters.

With another successful season in a higher League and a relatively lucrative Cup run, I would have hoped to report another satisfactory financial result for the year ended June 30^th 2006. Unfortunately player's wages were over budget and this coupled with higher Stewarding and Police costs have taken us to a loss before depreciation and amortisation, of just over £300,000. Normally I would say this was not sustainable but I do believe it was right to strengthen the team to ensure survival in League 1 and with the purchase of players like Billy Sharp and Andy Keogh we have assets that should have considerable value in the future. I also believe we have other players who have tremendous potential to play at a much higher level.

I am very appreciative of our main sponsors Chrysler Jeep, who are in the last year of a six year arrangement, also all our other sponsors, advertisers and indeed everyone who has supported us in any way throughout the season. Without their support we most certainly could not maintain a League 1 team which can compete effectively at this level.

Later today our planning application for new training facilities is due to be considered by the Planning Committee. I am hopeful that this will be given the green light and the new pitches will then be ready for the start of the 2007/8 season. These facilities are absolutely essential if we are to achieve our goal of Championship football. We are competing with much, much larger clubs, many of whom receive tremendous financial support from their Local Authority.

To all our staff, I thank each and every one of them for helping us to continue our progression as a football club which has much to be admired. We have put the pride back in Scunthorpe United and long may it continue. Everyone still has a vital role to play and if we continue to support each other we will go a long way to achieving our goal.

Although not directly employed by the club, Study United and Football in the Community play a vital role at Glanford Park and work very closely with all our staff on a daily basis. My sincere thanks to Jane Laws and her staff together with Lee Turnbull and all his staff for their sterling work in forming a close link between the Football Club and the Community.

During the year I was very pleased to announce the return to the Board of Keith Wagstaff and of course Simon Elliott took up residence in Beijing. Simon keeps in regular contact and I take this opportunity to thank Simon and all my fellow directors for their unstinting support throughout the year.

Finally I would like to thank Alan Webster who has amassed an amazing 38 years service to Scunthorpe United. 32 in a part time role as Safety Officer and more recently as our full time Stadium Manager. He leaves this month to take up a very exciting role as Stadium Manager at Doncaster Council's new Stadium.

Steve Wharton

Chairman

8^th November 2006