After losing his first five games in charge, including a 7–0 thumping from Grimsby Town at Blundell Park, Gannon admitted that the club's finances limited his ability to change personnel. He also stated that "if I didn't take the job, this club would've had a real chance of dying... I'm not proud to be the manager of a club that loses 7–0... but this is my team now... It has always been my club, so it's my responsibility to make things better, and over time we will." He released striker Antonio German, defender Chris Blackburn, and seven goal top-scorer Nick Chadwick in the January transfer window. He then signed defender Joe Connor on non-contract terms, and teenagers Aaron Cole and Danny Rowe on loan. His first win in his second spell at the club came on New Year's Day, in a 3–2 victory over Barrow at Edgeley Park. He then re-signed former players Paul Turnbull and Matty Mainwaring on loan. Worried by the situation at crisis clubs Darlington and Kettering Town, Gannon cancelled the contracts of veterans Matt Glennon, John Miles, Mark Lynch, and Ryan McCann. He brought in 23-year-old Telford defender Sean Newton and 18-year-old Sunderland keeper Lewis King on loan, whilst signing 19-year-old Lancaster City midfielder Danny Hattersley on a permanent transfer. The "Hatters" secured their Conference status with two games to spare, after a 1–1 home draw with Braintree Town on 14 April, having lost just twice in the league at Edgeley Park since Gannon's return. Stockport finished the campaign in 16th place, 10 points above the drop and 20 points below the play-off zone.