Manager Dick Graham resigned early in the new season, following two and four defeats wins in the opening six games of the campaign.

Colchester endured a very poor season, and were required to seek re-election after finishing 22nd in the league table.

An unknown Jim Smith, then-manager of Northern Premier League side Boston United who had just led the team to the title, was appointed Graham's replacement.

One of Smith's early pieces of business was signing his former Boston forward Bobby Svarc for £6,000 just before Christmas.

Fortunes did not improve for the U's as they finished the season in 22nd position and were required to seek re-election from the Football League.