DURHAM County Cricket Club’s development plans remain on target, despite a loss of nearly £1m in the past financial year.

The club lost £938,000 in the year to the end of last September, but club officials are confident of a return to profit in 2013, when they stage an Ashes Test.

Cardiff controversially beat Durham to an Ashes Test in 2009, but the Welsh ground’s future as a Test venue is under scrutiny.

Durham’s annual report, released yesterday, spoke of a “planned operating loss”, but added that the figure was in line with the club’s five-year development plan.

Further losses are expected in 2011 and 2012, before a return to profit in 2013.

The annual turnover was £5.5m and the club saw an improvement in its core commercial revenues, along with a reduction in costs.

There was a 17 per cent rise of £240,000 in corporate and sponsorship revenues, plus an encouraging increase in the sale of annual memberships.

Plans to build a 149-bedroom hotel overlooking the River Wear are going ahead as part of the development of the club’s conferencing and leisure facilities and it is hoped this will be completed by 2013.

Chief executive David Harker said: “These results are in line with our long-term financial planning and compare favourably to other Test match venues which do not host Test cricket on an annual basis.

“The Emirates Durham ICG is now an established and highly-popular venue for international cricket and our ambition is to ensure that Test match cricket remains a permanent fixture.

“However, it is essential that we are not solely reliant on international cricket revenues.”

Mr Harker added that a Test had been promised for 2016, while the club is negotiating with the England and Wales Cricket Board to secure a further package of international matches.

Chairman Clive Leach said: “The results illustrate how our ambitious plans are well on track and I am confident that the future of international cricket in the region is secure.

“Since becoming an international ground, the Emirates Durham ICG has consistently proven to be a sell-out venue.

“This is demonstrated by the unprecedented advance sell-out of the India one-day international in September and is a testament to the passion the North-East holds for cricket.”