An independent school in Stafford, which has 150 pupils, has been running at a loss of tens of thousands of pounds over the last two years, according to its most recently published reports.

Four of Brooklands School’s directors have resigned from the board of governors in just under 12 months, and, in a surprise announcement, its headteacher has announced he is to leave after seven years in the post.

The latest audited accounts for the Eccleshall Road school, showed it was in deficit of £90,960 for the year ending August 31, 2009.

In the previous year it was in a similar situation, falling short by £92,246.

The accounts also highlight the school, which charges parents up to £8,395 a year to send their child there, has no reserve funds.

And although headteacher David Williams, who is leaving in the summer, today said the school was on course to break even in September, he revealed Brooklands was at risk of closure if just five or six pupils were to leave.

The school’s problems have been put down to falling numbers of pupils, a “downturn in the economic outlook for the area” and increasing competition, in a report  by the school’s company directors.

The Directors Annual Report, sent to Companies House, stated: “During the year the school operated below capacity in the ages 5 to 11. The deficit for the year, following a similar deficit in the previous year, although anticipated was disappointing and unsatisfactory. Currently all funds are used for the running of the school and no funds raised or assets held are specifically set aside as a reserve fund.”

The directors aimed to create a reserve fund equivalent to one term’s costs “once the indebtedness to its bankers have (sic) been aggressively reduced”.

An independent auditors’ report for the year ended  August 31, 2009 noted that the school “had not provided for the depreciation on its freehold property” which is contrary to the requirements of sections of the Companies Act 2006.

Mr Williams said it had been a difficult couple of years for the school.

“Of course, if five or six pupils leave we could close but I have no fear of that,” he said. “In 2008/09 we made a big loss. It was similar the previous year. We will break even this September and then move into surplus. We have not been able to set up a reserve as yet. That will happen when we reduce the £90,000 or so and break even.”

He said the departure of the four directors had nothing to do with the financial situation at the school. “Yes they have resigned. They did not leave because of any problems with the school. It was mainly due to work commitments. We are getting two replacement governors in February.

“We have taken the school through a period of contraction, while maintaining parental confidence.”

Mr Williams will leave at the end of the academic year to become head of  independent preparatory Great Ballard School near Chichester, West Sussex.

He dismissed rumours about Brooklands’ future as “unwarranted speculation” and added: “We are categorically not in any discussion with any school as to the possibility of them taking on our children.

“What we are actually doing is making succession plans for the new Head of which an announcement is due shortly.”

Last month chairman of the board of governors, Robert Madders, wrote to parents telling them of Mr Williams’ departure, saying: “This news will come as a surprise to most, if not all of you. Mr Williams will not be leaving until the end of the academic year so there will  be plenty of time to sort out future arrangements.”

Brooklands celebrated its 60th anniversary in 2007, while Little Brooklands day nursery opened in 2004.

They offer education and care for children from the age of three months up to 11-year-olds. The school employs 45 staff.