BURNLEY FC made a loss of £2.1million in the last financial year but chairman Barry Kilby claimed it was "another year of progress towards our aim of restoring the fortunes of this great club".

The losses reflected the increased costs involved following the promotion to the first division as Burnley enjoyed its highest finish for 25 years.

The club's wage bill increased by almost £2million, the size of the losses, and a total of £5.7million has been lost in the last four years.

The deficit came despite the club's turnover going up to £7.2million, an increase of almost 30 per cent on the previous year. That increase came from a major boost to both the football income and the commercial side of the club.

Despite the shortfall Kilby today repeated that the Clarets do not have to sell any players to cope with the losses, although the target for this season remains to break even.

As well as looking to support manager Stan Ternent, he is determined that the improvements at the club will continue both on and off the pitch.

"We have got a redevelopment capital programme and that includes providing a much needed gym at the training ground in Gawthorpe," he said. "We also want to develop the cricket field stand."

Other projects that are in the pipeline include finishing the refurbishment inside the Bob Lord stand and completing the new shop and office project.

"Our club now stands in the top 30 in the country and while our aim must still be consolidation of our position, this season we will be doing all we can to progress Burnley Football Club further up the national rankings," said Kilby.

"Once again great credit must go to team manager Stan Ternent and all his staff in improving the standard of our first team squad on what was an average budget for the division.

"We are now encountering many clubs with greater financial resources than ours but the shrewd investment in players and the team spirit created has eliminated this disadvantage."

But Kilby also praised the team that has worked off the field under chief executive Andrew Watson and said: "Increased turnover is to do with whole shebang. Sometimes people think we are being greedy but we must never miss a commercial opportunity while still being fair to the fans. We have to keep moving the commercial side forward."

The target for the next financial year is a further growth in turnover to £10million which should allow them to achieve their break even target.

Kilby concluded that everyone has played a part in helping a club that was not long ago on its knees to progress again - although there is more work to be done.

"I thank all players, fellow directors, management staff and especially our dedicated supporters," he said. "It is through their ability and enthusiasm that we will succeed."

Highlights:

Turnover: up 28.6% to £7.2million (£5.6million in 99/00)

Football income: up 18.7% to £3.8million (from £3.2million)

Commercial income: up 41.7% to £3.4million (from £2.4million)

Staff costs: up 45.2% to £6.1million (from £4.2million)

Average attendance: up 25.4% to 16,234 (from 12,936)

Season ticket holders: up 81% to 12,3000 (from 6,800)