BLACKBURN ROVERS' return to the Premier League helped the club make an operating profit last season after years of multi-million-pound losses.

Announcing the annual report for 2002, chief executive John Williams said the £24,000 profit represented a £13 million turnaround in the club's fortunes from the previous season.

Rovers' return to the top flight saw turnover more than doubling to £38.5 million from just £17.6 million in 2001.

Mr Williams said the figures underlined the importance to the club of staying among the game's elite.

"The stark, quite frightening reality of the chasm between the Premier League and Division One is highlighted by our increase in turnover," he said.

"For Rovers, we have come the right way, but for relegated clubs the financial pain is extremely difficult to adjust to."

Although Rovers managed to break even on day-to-day operations, the club posted a pre-tax loss of £10.8 million for 2002 - itself a £20 million improvement on the losses in 2001.

This was caused by writing down the value of the club's high-profile signings. Under Premier League rules, the cost of players signed by clubs has to be written off over the period of their contracts. For example, a player signed for £10 million on a five year deal would see £2 million wiped off his 'value' each year over the period of his contract.

The club's annual report shows that income from TV and radio rose from £6.1 million to £14.5 million. Gate receipts jumped from £4.3 million to £7.3 million and the club received £4.9 million for finishing the season in 10th place.

The contribution from sponsorship and advertising rose by 79 per cent to £2.5 million and hospitality income more than doubled to £1.8 million.

Rovers also received a £3 million donation from Jack Walker's trust fund, reflecting the continuing support from the club's greatest benefactor.

A £2 million loan was also made available from the fund.

Players' wages cost £29.7 million - up from £25.4 million the previous year - and represented 77 per cent of the club's income, a figure described by Mr Williams as "too high".

"I think we are making progress," said Williams.

"We've put the hell of Division One behind us. We got promoted fortuitously at the right time given the demise of ITV Digital, even though it took us a year longer than we'd anticipated.

"So in our first year back, because of a really good performance in finishing 10th in the Premiership and winning the Worthington Cup, we've managed a break even situation.

"That's the upside. That's the good side.

"But the downside is we now find ourselves back in the Premier League at a time when there's adjustments going on in the market and that brings sharply into focus just how difficult it is going to be for us to continue to make progress financially.

"In the end, no matter how good your manager is, or your Academy staff, or your coaches, or your players there is clearly a relationship between financial muscle and success.

"And that's going to make life difficult for us with a small fan base, but we are going in the right direction."