BURNLEY chairman Barry Kilby expects to recover record losses as early as the New Year, allowing attentions to return to the Turf Moor redevelopment.

The Clarets’ proposed £20m facelift has been on hold for more than a year as a result of the credit crunch.

It looked set to be put even further on the backburner when the club last week announced it took an £11.7m hit in earning promotion to the Premier League.

But Kilby anticipates that deficit will have been recouped as early as January, and should the financial market continue its recovery, he hopes to begin work on ground improvements.

“I think we’ve seen a bit of a flicker. We’re a bit nearer to taking it back out of the drawer and having a look at it,” he said.

“All the debts we have showing on our balance sheet at the end of the financial year we’re reporting on now will be repaid by January.

“It’s well documented we’ve kept our wage bill to the lowest by far in the Premier League, so the way we’re set up in our profit and loss this year, I think we might be one of the most profitable clubs in English football.”

He added: “We have a few planning permissions coming in. It just needs the financial climate to ease a little bit then we can get the necessary normal funding we would have for a big capital project in place.

“I’m hoping that one will start to come back on the agenda and we can have a look at that in the summer.”

Work was due to begin on Phase One of six more than a year ago, after planning permission for a £2.25m three-storey player and media centre was granted in April 2008.

However, the planned Phase Two, which involved the demolition and rebuilding of the David Fishwick (Cricket Field) Stand, incorporating hotel and conference facilities, now appears set to become the first item on the redevelopment rota.

“I wouldn’t promise anything because these are big pulls on our spending, but we believe we’ve got a viable plan for the re-development for the David Fishwick (Cricket Field) Stand, incorporating hotel and conference facilities, now appears set to become the first item on the redevelopment rota.

“I wouldn’t promise anything because these are big pulls on our spending, but we believe we’ve got a viable plan for the re-development for the David Fishwick (Cricket Field) Stand that will commercially stand up,” said Kilby.

“I feel if the economic climate eases a little bit we can start looking at that seriously again.”

However, Kilby admits that while operating with by far the lowest budget in the Premier League, the club faces a constant juggling act.

With the January transfer window fast approaching, and decisions to be made on loan striker David Nugent, as well as other targets, he stressed the importance of prioritising their needs.

“For David Nugent, we have until the third week in January. We like him and I think he likes us, so I think we will be looking to negotiate with David. He would come like a shot but we need to negotiate with Portsmouth and where we go when his loan’s up in January,” said the chairman.

Of other potential January signings, he added: “We’re in discussions with Owen at the moment now to see what we’re doing.

“We’ve got quite a few decisions to make.

“One of the problems you’ve got is, while you can be balanced on your cashflow, if you buy a player that’s capital investment, but it still takes cash and you’ve got to find it out of your general trading.

“But we’re sitting down and discussing how we need strengthening. Wait and see.

“Let’s be steady, let’s only afford what we can afford.

"Things can turn very quickly in this game so we’ve got to be careful.”