The Weather Lottery forecasts a vital year as it goes for expansion

The Leeds-based company, which raises funds for non-profit organisations such as sport clubs, charities, schools and universities, reported a loss of 48,000 for the year to July 31 after a year of consolidation.

The group said it still has considerable work to do to expand its paper based and online entry for society lotteries.

The number of 'lottery lines' played stayed level at around 26,000 and, while enquiries are at a healthy level, new orders are proving elusive.

No dividend will be paid following the results.

The Weather Lottery's chief executive Keith Milhench said the group's objective is to build and expand its paper based and online entry for charity, education and sport lotteries.

"Whilst considerable progress has been made in establishing these services, much has still to be done to improve, expand and enhance them," he said.

A new secondary lottery has been launched which gives the societies a larger return and the group hopes this will encourage new societies to join.

The website was completely updated in the second half of the year and now clients can register online.

"I look forward to 2011/10 being pivotal in the development of the company as it takes the opportunity to grow to a higher level," said Mr Milhench.

The Weather Lottery was set up 12 years ago in order to help organisations that need funds, be they a sports club or a children's cancer charity. The group's clients include the National Trust, the British Red Cross, Age Concern, the Cystic Fibrosis Trust, Yorkshire Cricket Club, Leeds United FC and Huddersfield Town FC.

It also has several political parties on its books, including the Conservative Party, the Scottish National Party and UKIP.

The game is simple to play. Participants pay 1 a week to play the lottery, which gives them four chances to win the game.

The players have to guess what the last digit of the daily temperature is going to be in six European cities. So if you think it will be 82 degrees fahrenheit in Corfu, you put a 2 down.

Once players have thought of a temperature for all six cities they submit their guess. If you guess the correct last digit for all six cities you win 10,000.

The Weather Lottery is registered and governed by the Gambling Commission. Mr Milhench said the group does not anticipate any changes to the law which would affect the running of the business.