BOLTON Wanderers are confident that they are continuing to strike the right balance, despite running up a debt of £40 million.

Burnden Leisure, the club's parent company, reported an operating loss of £1 million in the six months to December 31, 2002 - largely as a result of investing in the players needed to compete in the Premier League.

But the big cash outlay on high profile stars will not rebound on the club if they drop back into the Nationwide League. Unlike some relegated clubs, who are hamstrung by expensive long-term contracts, Wanderers believe they have taken the necessary precautions.

Club chiefs describe their strategy of signing players on short-term contracts and loans as their "insurance policy".

Latest figures show the club's debt has rocketed to £39.9m - a rise of £7m - but that is mainly due to a short-term loan secured against this year's television payout which they will receive in August. But they still cannot find a way of relieving the pressure of the debt with a medium to long-term arrangement.

Despite being locked in a desperate survival battle for the second successive season, the Burnden directors are determined to follow the cautious line which has ruled out big money transfer fees while allowing Sam Allardyce to bring big name players such as Youri Djorkaeff, Jay-Jay Okocha and Ivan Campo to the Reebok.

"Maintaining the Premier League status of Bolton Wanderers within an overall framework of financial prudence remains one of our key objectives," chairman Phil Gartside insisted.

"Strengthening the playing squad whilst not over-committingbeyond thecurrent 2002-03 season is a difficult balance to achieve. There is, of course, a price to pay in terms of player wages, agents' fees and loan fees and these higher costs are reflected in the cost of sales which have grown by £4.3 m compared to the same period last year."

The Wanderers' chief is happy, however, with the progress the club has made in recent years, noting: "To put our recent progress into perspective the club has not enjoyed more than two successive seasons in the top flight since the early 1960s."

Burnden Leisure has cancelled its listing on the Alternative Investment Market (AIM) with effect from April 30 as a cost-cutting exercise. The move will make it more difficult for people to trade in shares but will save on fees.