Sunderland AFC plan to make a "significant" number of staff redundant after the relegation-haunted club announced losses of nearly £5m and debts of £26m.

The Black Cats' accounts for the six months up to January 31 this year revealed an operating loss of £4.8million as turnover at the Stadium of Light fell by £400,000.

In that time Sunderland have slipped down the Premiership and look increasingly likely to be relegated.

Chairman Bryan Sanderson admitted the near-£5million loss in the interim figures will be ''significantly higher'' when final operating losses are released.

As a result, Sanderson admitted difficult steps would be taken to balance the books, although he did not elaborate on who would be laid off.

He said: ''Everybody is aware of the impact of under-performance in the Premiership and we have had to take a long hard look at our position and take some tough decisions.

"It is with very great regret therefore that we are announcing a significant number of proposed redundancies."

Sanderson blamed some of the losses on the slump in the transfer market, with Sunderland making only £100,000 from sales this time around compared to £5million in the same period last year.

He said: ''We had only £0.1million profit from the disposal of players (2002 - £5million), a reflection of the prevailing transfer market conditions.''

Today's figures - which were released to the Stock Exchange this morning - include a pay-off to former manager Peter Reid, who was sacked early this season.

Howard Wilkinson was drafted in as his replacement but Sanderson admits that appointment was a ''mistake''. The pay-offs for Wilkinson and assistant Steve Cotterill following their sackings were not included in today's results.

Sanderson said: ''The wages figure at the interim includes the settlement costs payable on the departure of Peter Reid. The settlement for Howard Wilkinson and Steve Cotterill will be reflected in the full year results.

''Much has happened during a season that has seen three managers in charge.

''It was important to recognise the mistake of our previous appointment and take decisive action with the early appointment of a renowned manager Mick McCarthy to give us the best chance of success in the coming seasons.''

Sunderland also revealed they have debts of £26.656million - more than double the figure for the same period last year, which was £11.681million.

Sanderson announced chief executive Hugh Roberts has resigned. Roberts, who was also a director of Sunderland's plc, will leave both posts on May 31.