A #2.8m extension and refurbishment for Aberdeen's landmark theatre, said to be almost a century out of date, has been proposed.

However, to make the scheme possible companies and ''rich individuals'' in the Granite City are expected to contribute almost #500,000.

Aberdeen councillors will hear details next week of a #30,000 feasibility study which reveals the shortcomings of His Majesty's Theatre and how they can be addressed.

The study, jointly funded by the Scottish Arts Council, Grampian Enterprise and the council, suggests that, if lottery funding could be secured for 65% of the project, the rest of the money could be raised. It also reckons the in-creased annual income from the additional facilities would be nearly double the estimated increase in operating expenditure.

According to the report, while refurbishment work over the past 16 years has enhanced the building, many of its facilities are closer to the requirements of 1906, when it was opened, than to those of the audience and community of today.

Shortcomings include the lack of a restaurant/cafe, a venue for corporate entertainment and sufficient bar space. There is also no rehearsal room, dance studio or workshop areas.

A planned extension would include an 80-seat restaurant.

The facilities would mean the theatre could be used not only by professional companies but also by local artists, amateur groups and for educational purposes and its links with the local community would be strengthened.

The work is expected to cost between #2.6m and #3m and the council's contribution of between #400,000 and #600,000 could be spread over four years.

Although lottery funding of 75% might be available, the report has assumed a figure of 65% leaving a #980,000 shortfall.

''We are confident that at least 50% of that can be raised through donations from companies and rich individuals in the Aberdeen area. The oil industry must obviously be the prime target.

''That would leave about #480,000 to be raised from other sources including Aberdeen City Council and Grampian Enterprise. Given the partnership requirements of the National Lottery, contributions from these bodies are essential and the likely sizes of these contributions seem reasonable to us.''