Newcastle United claim to be looking to the future with confidence following a "strong six months" which saw them generate an operating profit as well as continue to challenge for the Barclaycard Premiership title.

The Magpies' push for the championship has faltered in recent weeks, but they were able to release interim financial results which show an operating profit of £1.8m in the six months to January 31.

Non-executive chairman John Fender predicted: "With the continued commitment of everyone at St James' Park and the support of our loyal fans we look forward to the future with confidence."

He was responding to figures which showed an 11 per cent increase in turnover from £32.2m to £35.8m, and an operating profit before 'player trading' of £7.9m up by 16 per cent on the corresponding 2001 figure.

However, manager Bobby Robson spent £5m on signing teenage forward Jermaine Jenas from Nottingham Forest last month, and that outlay is reflected in a "player trading deficit" which rose by 20 per cent to £6.1m.

The net profit over the last six months is therefore £1.8m, a figure which left Mr Fender in optimistic mood.

He said: "It has been a strong six months, and we are continuing to grow revenues as a result of the stadium expansion, revised media rights and pursuit of other commercial opportunities while ensuring that costs are kept under control."

Newcastle made a loss of £1.38m on 'ordinary activities' compared with a profit of £5,000 in 2001.

Increased television revenues for Premier League matches are cited as the main reason for the overall jump in turnover, increasing by 37 per cent from £6.9m to £9.5m as a result of the new Premier League TV deals.

Despite increased television coverage, with three live games televised by BSkyB and four pay per view games on the same network, the average attendance for home games at St James Park was 51,230 in the six month period, the second highest in the Premiership.

Sponsorship turnover increased 15 per cent from £4.1m to £4.7m, mainly due to the successful renegotiation of a deal with NTL.

Branded Products turnover was also up nine per cent from £3.2m to £3.5m with a significant increase in internet-generated sales.

Catering continued to show strong growth in its second year increasing 28 per cent from £1.8m to £2.3m.

Mr Fender concluded: "We are continuing to grow revenues as a result of the stadium expansion, revised media rights and the pursuit of other commercial opportunities, whilst ensuring that costs are kept under control.

"With the continued commitment of everyone at St James' Park and the support of our loyal fans we look forward to the future with confidence."

Shareholders in the club will receive an interim dividend of 0.8p per share, down on the 1.03p per share paid at the same time last year.