The company’s chairman Martin Robinson described the period, which saw it breaching its banking covenants and bailed out by its former owner David Sullivan, as a turbulent experience.
SMG said that its debt holder, the Royal Bank of Scotland, has agreed to extend its banking facilities for another three years until March 31 2013.
Robinson stated that there was still a significant level of debt within the group and that debt-servicing remained a major cost.
Total net debt at the period end rose to £11.9m, compared to £10.43m reported at the end of July 2008.
An amortisation and impairment of goodwill charge amounting to £23.8m contributed to the company's loss.
The group reported that underlying loss before tax and amortisation was £400,000, compared with £6.4m in the year to July 2008.
Circulation figures for its newspapers in the period from January to Easter 2010 had fallen to around 73,700 for the Daily Sport and 66,400 for the Sunday Sport.
Advertising revenue in the January to Easter period (which ended at the beginning of April) was 14% lower than in the same period last year. Advertising revenues for the complete 17 month period were £10.7m compared with £9.1m in the 12 months to the end of July 2008.
The group said a restructuring programme had reduced costs by £614,000. The company cut staff to 97, down from a high of 138 in October 2008.
Robinson said the business was "stable and profitable" but that, with unemployment likely to rise further and few signs of recovery in sectors employing the publisher’s readers, "the outlook remains difficult".
He added: "We are optimistic that, through supportive debt holders, dedicated staff and interested shareholders, we can look forward to a positive future."
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