BURNLEY are poised to report an annual loss of £1.6 million but are still in a position to make their first million-pound signing.

The Clarets recently made a club record £1.2 million bid for Stockport's Ian Moore and might have to cough up a seven-figure fee if they look to make Paul Robinson's loan move a permanent one.

And club chairman Barry Kilby revealed that despite another hefty deficit over the past financial year, the money is in place to make such a move.

The Clarets recently received a cash boost with the appointment of new board member Chris Duckworth and with turnover heading for £8 million there is some in the pot for manager Stan Ternent.

Kilby said: "Chris Duckworth bought £500,000 worth of shares which strengthened our position but it's also down to the improved trading of the club.

"We feel under the right circumstances that we can pay that sort of amount. It does reflect the improved position of the club."

And the chairman acknowledged that the club's existing transfer record -- the £750,000 they paid Luton Town for Steve Davis a couple of years ago -- will have to go for the Clarets to continue to make an impression in the First Division. He added: "You've got to be able to in the sort of league we're playing in. We are always looking to build and improve the quality. It's now about getting to those sort of players to improve."

While Ternent continues to test the water in the transfer market, his existing squad has delighted Kilby with the start they have made, sitting in seventh place with 22 points from 12 games ahead of this afternoon's clash at Queens Park Rangers.

"Our aim is is to consolidate and get to around that 55-point mark. If we get there sooner rather than late we'll have a look at it and kick on to get as high as we can.

"But we are a quarter of the way through and we would have settled for this before a ball was kicked, I'm sure," he said.

Burnley's impressive start has also been reflected at the gate, with no home League crowds below 15,000 despite a paucity of away fans.

Stockport bought just 700 last Saturday but with something nearer double that for Sheffield Wednesday's visit on Tuesday night, the Clarets enjoyed a season's best attendance of 16,732.

"We are starting to edge it forward a little bit more. We're not far off double what we had two years ago and we're delighted with that," said Kilby, who is equally pleased with the backing Ternent's side has received since they were booed during the 1-1 draw with Portsmouth a fortnight ago.

"I'm delighted that the crowd did get behind the club. We're in this together and people should perhaps remember two years ago and the quality of the opposition we are now playing," he added.