BURNLEY FC made an encouraging profit last season despite problems on the field.

The club's income fell substantially after dropping back into the Second Division.

But chairman Frank Teasdale welcomed the return to profit - £230,725 - after a loss on 1994-95 of £298,164.

A turnaround on transfers helped bring about the healthy results - for the year ended May 31, 1996 - achieved even though the club had to pay a hefty additional tax bill.

This £332,000 sum was due on Football Trust grants received during that period.

On the football side, Mr Teasdale, in his report, says: "Our return to the Second Division was a disappointment to us all, but I am sure that with the strength of the current squad we are capable of better things.

"The stage is now set with our new-look stadium and with the support of our magnificent fans we can achieve the promotion we desperately seek."

Although Burnley's income dropped substantially in many areas, caused by being in a lower division, they managed to reduce expenditure dramatically.

Income fell to £2,351,482 (£3,441, 442 in 1994-95), while costs dropped to £1,893,538 (£3,930,264).

Donations of £120,156 (£171,678) took the gross operating profit, after interest adjustments, to £562,725. Then the £332,000 corporation tax reduced that to the net figure. Receipts from League games were £741,791 (£1,079,406), season tickets and memberships fell to £644,474 (£779,651), FA Cup receipts were only £22,594 (£229,739) and all other main areas of income fell.

But Burnley pegged employee costs to £1,314,653 (£1,320,373) and some other major costs were reduced, although administrative, match and ground expenses rose to £804,230 (£684,886).

Within that figure, policing costs and stewarding charges fell to £40,945 (£79,272) and £87,453 (£110,487) respectively.

The biggest difference, however, was the near £2 million turnaround on transfers.

In the previous year, the cost of employees joining and leaving the club had been £1,504,286.

Last season, this was turned into a profit figure of £398,426 - due mainly to the sale of Steve Davis to Luton.

Burnley, who have now completed redevelopment of the stadium, have borrowings of £2,476, 908 (£28,820) including bank loans of £1,774,481. The loans, however, are repayable at various stages over a number of years.

The annual meeting of shareholders will be held on Saturday, December 28, at the Centre Spot (10-30am) when Bernard Rothwell stands for re-election as a director.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.