An 15% increase in turnover, thanks to a second consecutive Wembley appearances and last season's promotion, has helped reduce those losses from £4.4million.
The club has also announced an open offer to shareholders which they hope will raise another £11.2million to help repay outstanding loans.
Chairman John Berylson said: "During this season we will increase our revenues by at least 65% as a result of higher attendances and commercial sponsorships, but most significantly a greater share of the Football League TV and sponsorship revenues.
"There will be additional cost. However, with sound financial management we should again be able to continue to reduce operating losses."
Source: PA
Source: PA