Town's Annual Report and Accounts for the 12 months up to June 2002 showed an operating profit of £2.5 million, however as tends to be the case with these things, that doesn't tell the whole story.

The period covers Town's second Premiership season and therefore not the period affected by last season's relegation. That's a tale for next season's similar document.

The club switched its accounting period in 2000/01 to coincide with June ending of player contracts which meant that for that year a report for 13-months was produced with this year's reverting to a more usual 12-month period.

Town's turnover increased by 19% in the year to June 2002 to £37.4 million while wages were up from £17.6 million (2000/01 13-month period) to £24.2 million, a 64.7% turnover-to-wages ratio. The growth in income was due to increased TV revenues, gate receipts and commercial income.

The £2.5 million operating profit made during the year after adjustments ultimately becomes a loss according to the report: "After amortisation, player trading and interest this has reduced to a net loss of £3.3 million.

"The main reason for the pre-tax loss is an amortisation of player provision charge of £10.8 million. This relates for the most part to new players signed, however, it also includes some £3.9 million of provisions relating to conservative one-off write-downs of player values."

The relegation since the accounting year covered in the report has seen a drop in television income of about £14 million, from £20 million to £6 million including the first year's parachute money.

In his Chairman's Report David Sheepshanks says that since relegation Town have put a number of measures in place to reduce the deficit: "This has largely been achieved through a variety of savings, internal austerity measures, revenue advances and debt deferrals of varying magnitudes."

A share issue looks to be very much on the cards in addition to the measures already in place.

Town chief executive Derek Bowden looks to the future in the report and feels that the club needs to develop in order to be less dependent on the up and down of the TV rights market: "Going forward, we need to ensure that we maintain the strictest of financial controls and, given contractual commitments, endeavour to cut our own cloth according to our known income. This, in combination with an aggressive approach to revenue generation, will establish the long-term stability of the club."

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