BURNLEY Football Club have slashed their losses by around £2.5m in the last year, according to their latest annual accounts.

In a statement to shareholders, the club lost £1.8m, as opposed to £4.3m the year before.

Loans from directors and the sale of key players have cut the losses dramatically.

But an increase in wages by almost £2.4m – to around £8.8m a year – have made a major dent in the club’s finances.

On the balance sheet, match income was up by £1.2m, catering sales increased by £130,000 and other commercial activities showed a profit of £390,000.

Meanwhile, club shop sales also increased by around £175,000.

In his statement to shareholders, club chairman Barry Kilby was positive about the future of the club.

He says: “Last season saw us finish in 13th place in the Coca-Cola Championship, continuing our upwards trend of recent seasons.

“This was achieved following the upheaval of changing the manager in mid-season, following a disappointing start of the 2007/08 campaign.

“It has been particularly pleasing for everyone to see Owen Coyle step in and make a positive impact on and off the pitch.

“Under his stewardship the club is actively pursuing a policy of investing in younger players and developing our youth system, something that has been evident in recent seasons thanks to the sterling work of Vince Overson, Terry Pashley, Jeff Taylor and their backroom team and, now, with the appointment of Martin Dobson as Director of Youth Development.

“Hopefully, we can continue to sow the seeds for success in the future with home-grown talent.

“Another important appointment during the year was Paul Fletcher’s return to Burnley Football Club, initially as Ground Development Director and, latterly, in his dual role as Chief Executive.

“The financial situation at Burnley Football Club shows a marked downturn in losses to £1.8m. from over £4m.

“Although turnover increased, so did costs – notably staff wages – producing an operating loss of £6.7m.

“This was mitigated, however, by the profit on player sales to the tune of over £5m, bringing those losses to manageable proportions.

“We continue to be a football club with no external debts, with losses covered by further directors’ loans.”