BURNLEY reported a loss of £1.6 million in the last financial year as they celebrated promotion to Division One.

The Clarets' turnover increased by £2 million to £5.6 million in the year ending in May but the losses were cut by just £200,000 from the previous 12 months.

However, the deficit was anticipated by the Turf Moor board as they invested in a promotion challenge, successfuly accomplished a year ahead of schedule.

"We knew it would be a loss but the object of the exercise was to achieve First Division football where the rewards are greater and you stand more chance of balancing the books and satisfying your customers through income from television and other avenues," confirmed director Clive Holt.

Acquiring First Division status led to an immediate increase in television revenue to around £800,000 and that figure will rise to something like £3 million next seson under the terms of a new broadcasting deal -- assuming the Clarets build on their fine start and maintain their current standing.

The aim off the field is therefore to wipe out the losses and break even and with targetted turnover now in excess of £8 million they are on budget to do that.

"No company can afford to trade at losses of £3.5 million, as the club has done over the last three years," said chief executive Andrew Watson.

The end-of-year figures have been approved by the Clarets board and signed off by the accountants.

Copies of the accounts will now be forwarded to shareholders and the date set for a Turf Moor AGM.