PRESTON North End has blamed the collapse of ITV Digital for making a loss of more than £2.5 million for the past year compared to a profit of £1.86 million in 2002.

Chairman Derek Shaw claimed the club had survived in a "stable financial position", while many others were in administration or very close to it.

Largely becaused of reduced TV income, turnover was down 42 per cent to £5.73 million, with players' wages accounting for 74 per cent of the total.

"The board acknowledges the need to reduce wage costs significantly, " added Shaw, who admitted attendances had slipped back to an average of 13,888, down from 14,929.

"We have established ourselves as one of the First Division's leading clubs and whilst our league position was disappointing overall, we nevertheless need to remember how far we have come in such a short time.

"We have continued to invest in the playing squad and have continued to improve the Club infrastructure by investing in our training ground, modern offices, Club shop and changing and medical facilities. Preston North End plc is well positioned both on and off the field to make continuing progress."