Ken Nottage has been at Gloucester since 1999

Gloucester Rugby is set to show a loss for last season, managing director Ken Nottage has revealed.

The news is a contrast to the 2007-08 season when Gloucester were the only Premiership club to make a profit.

Nottage told BBC Gloucestershire: "We are technically still in a recession and the areas that were hit most were attendances and the corporate market.

"At best the year to May 31 will be a break even position, but it's more likely to be a small loss."

During 2007-08 the opening of the club's new main stand increased capacity by more than a third, helping Gloucester to make a profit of about £650,000.

But last season they were knocked out of the Heineken Cup in the pool stages and Nottage said that had a significant impact.

"Had we progressed as we hoped to, that small loss would have been a small profit" he said.

Nottage also admitted the club would not look to develop the Shed side of the ground until attendances improved.

Sunday's clash with Bath attracted a crowd of just under 13,000 - more than 3,000 short of Kingsholm's capacity.

"We need to be seeing six or seven sell-outs a season before there is a demand to develop further," added Nottage.

"Arguably, it's down to the fans. When the demand is demonstrated, we'll be ready to develop the stadium."

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