BOSSES at Newcastle United predicted a bright future for the club yesterday despite revealing annual pre-tax losses of £19m.

With the on-time and within budget completion of the redevelopment of St James' Park increasing stadium capacity to 52,000, and fans' favourite Bobby Robson's steering the playing side, chairman of the plc, John Fender, was optimistic that the club was in good shape for the coming years.

In common with its Premiership rivals, Newcastle signed a £25m strategic alliance with a broadcasting company, ntl, ensuring it is well placed to capitalise on the lucrative world of selling broadcasting rights to matches.

Mr Fender said: "Last year was one of change at all levels. We were bottom of the league for too long, the ground underwent a major transformation, and merchandise sales were down.

"We were also hit by a previous history of high cost signings and wages catching up with us, and we recognise the effect of the Save Our Seats (SOS) campaign.

"But we have seen a change in manager, and major changes in our squad and with Bobby Robson in charge we envisage a much brighter future."

But although Vinay Bedi, director at Newcastle stockbrokers Wise Speke and expert on football stocks, said losses of £19m could never be described as good news, the figures were anticipated.

"What is most worrying for the club is that three of the four major revenues of football - match revenue, sponsorship and branded purchases - have all fallen and only TV money has increased," he said.

For the year ended July 31, Newcastle made a pre-tax loss of £18.9m, compared with a pre-tax profit of £1.4m for the previous 12 months. Of the increased losses, £14.3m was the result of transfer fees.