THE financial importance of Wanderers' winning promotion back to the Premiership was spelled out in stark business terms today.

Losses have been cut dramatically, giving the balance sheet a healthier look, while the future looks rosy, revenue-wise, for the Reebok Stadium.

But Burnden Leisure plc - the club's parent company - remains almost entirely reliant on football and shareholders have been warned that their investment in the short term is at the mercy of the team's results between now and the end of the season.

With nine games to go and with their hopes of automatic promotion having faded over the past month, Wanderers aren't just carrying the hopes of supporters as they approach the climax of the season.

In his half-time report, which shows losses having been cut from £5.06 million to £1.86 million, Burnden chairman David Williams is upbeat about the new £12 million hotel project at the Reebok and the value of the old Burnden Park site, which has now been cleared and is ready for development. The 15-acre plot is considered to be worth well in excess of its £1 million book value.

But he cautioned: "While we are continuing to develop the Reebok Stadium as a venue for a wide range of leisure activities in order to maximise revenue, it is inevitable that short-term financial performance will relate closely to success on the football pitch over the coming weeks."

Half-year figures, up to December 31, show a drop in income caused by relegation from the Premiership. Gate receipts and television revenue are down but a profit on transfers, largely as a consequence of Nathan Blake's £4.25 million sale to Blackburn, contributed to a significant reduction in losses compared to last year. Reaction in the City was positive with shares up 1p to 20p.

Indeed, Wanderers have bucked the trend, which has shown Premiership giants Manchester United, who have suffered from spiralling wages, and Newcastle United, where merchandising has been hit, report steep falls in profit over the same period.

Sales of Wanderers merchandise are down just two per cent compared with the same six-month period last year - a performance described as "flat" by Alan Duckworth, the financial director of Burnden Leisure.

"Our figures on merchandising are not as high and not as volatile as the likes of Manchester United but they aren't declining," he explained.

"Significantly, though, catering and banqueting at the Reebok is up 60 per cent. Last year was our first year at the Reebok so we expected an increase because we are building up trade. But the figures show that we are working hard to earn money from sources other than football.

"In the short-term, though, until we see the development of the stadium start to produce income, the business is going to be predominantly football based."

Details of the £12 million Whites Hotel project are being sent to Burnden Leisure shareholders in preparation for an extraordinary general meeting to approve the plan to build the 125-bedroom, four star showpiece inside the South Stand at the Reebok.

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