THE Clarets have pledged to continue to back manager Stan Ternent in the transfer market despite a reported annual loss of £1.6 million in securing promotion to Division One.

The wage bill at Turf Moor shot up by 53 per cent to £4.2 million in the financial year which ended in May, representing 75 per cent of the club's £5.6 million turnover.

But one of the key points of the club's policy for the current campaign, outlined in a report to accompany the annual accounts which were published today, is to push the boundaries as far it can in terms of increasing the wage bill and transfer fees.

However, the report also stressed the need to reduce losses which have totalled £3.7 million over the last three years.

To that end, the Clarets are aiming for a further 40 per cent growth in turnover to £8 million and a growth in commercial activities to £4 million.

In the last financial year turnover grew by 54 per cent from £3.6 million, with 57 per cent of that coming from football related activities and the remainder from commercial income.

Football income went up from £2 million to £3.2 million on the back of increased gate receipts, ticket sales and a cut of the Football League levy as Burnley mounted their successful promotion push. The average attendance at Turf Moor rose 21 per cent from 10,606 to 12,936 with another big jump on the way this season following an 80 per cent increase in season-ticket sales to 12,300.

The commercial income went up from £1.6 million to £2.4 million with corporate sales up 110 per cent to £629,000.

The Clarets annual reported loss was trimmed by £200,000 and having taken steps to counter a deficit, chairman Barry Kilby is confident the club is heading in the right direction on and off the field.

He said: "Last year the board of directors outlined a strategy of investment in the playing and managerial staff of the club in an effort to reach the short-term goal of promotion to Division One.

"This was essential for the ultimate well-being and financial stability of the club.

"The whole purpose of the rights issue offered to the shareholders in 1998 was to provide funds to cover the inevitable loss that would occur by pursuing this strategy.

"The loss has now materialised to the degree of £1.6 million for the financial year but we have the satisfaction of knowing that our first goal has been achieved and we are playing in Division One for only the second time in nearly 20 years.

"Great credit must go to team manager Stan Ternent and all his staff in turning around our fortunes on the playing field. He has invested shrewdly in the first team squad and we could not be in better hands as we attempt to establish ourselves in this higher division."

The club is also planning to move towards a re-vamp of the cricket field stand, to develop the void in the Jimmy McIlroy Stand, complete further refurbishment inside the Bob Lord Stand and invest in the Gawthorpe training ground.