Struggling premiership football club Southampton has announced pre-tax losses of £1.7m for the six months to 30 November – caused partly by falling attendances.

Although overall match day income during the first half increased slightly from £5.8m to £6.1m, the average attendance fell from 31,704 to 29,862. The team’s recent poor performance in the premiership has also had a negative effect on the club’s retail sales, which fell from £4.5m to £3.9m during the period.

The downcast financial results prompted chair, Rupert Lowe, to defend his decision not to invest heavily in new players, despite the team’s struggling form.

“We have watched the damaging effects of financial imprudence in the football industry as the normal laws of economic logic are ignored,” he said.

“Clubs like Leeds, Sheffield Wednesday, Bradford, Derby and Leicester have been a warning to us all. I believe that the depth of our existing squad, combined with our recent signings, gives us an excellent chance of success.”