YORKSHIRE members will learn that the club is in a much healthier financial situation when they receive the annual report and statement of accounts this week ahead of the annual general meeting at Headingley on March 27.

Although director of finance Brian Bouttell reports a loss last year of £214,959, this is more than £1million less than in 2002 when the deficit was £1,292,040 with the new management board struggling to keep the club afloat.

The loss on 2003, however, was still £200,000 more than was budgeted for and largely came about because of a drop in international match income and hospitality, the weather being poor for the one-day clash between England and Zimbabwe.

Now Bouttell is budgeting for a small surplus next year of around £3,000 after depreciation has been taken into account, but this estimate will change if Yorkshire attain their goal of buying the freehold of the cricket ground and its income streams which include all advertising, catering, alcohol and hotel rooms.

Yorkshire currently stand on the threshold of owning their own ground for the first time in their history and Bouttell is hopeful that negotiations with their landlords, Leeds Cricket, Football and Athletic Company, will be completed and the ground changed hands by the end of June.

Once Yorkshire own the income streams at Headingley, it is envisaged that annual income will be boosted by over £1m.

Bouttell tells members that the improved financial situation was partly due to having to treat as income £540,000 in staging fees from the ECB for international matches at Headingley rather than as a capital grant under the Test match grounds improvement scheme. This was because last year Yorkshire signed a staging agreement with the ECB to take all of the financial risks on internationals at Headingley.

The deficiency of over £214,000 last year came after charging depreciation of £519,881 on building, office, plant and equipment and therefore represented a positive cash flow of £304,922.

Income throughout the club was ahead of the previous year with the shop showing a profit of £50,509 compared to a loss in 2002 of £174,290 when it was being mismanaged, leading to the sacking of the former commercial director, Tony Panaro.

It is estimated that the shop profits will be substantially higher again this year.

Virtually all non-development expenditure was down, an exception being legal fees which went up from £23,574 to £60,629 mainly as a result of an expensive Employment Tribunal claim from Panaro which the club won on all counts but could not recover costs.

Attendances at Yorkshire home matches soared last summer, despite a dreadful season in which the team were relegated in the National League and failed to gain promotion in the Championship.

Total attendances were 101,035, compared to 87,799 the previous season with 47,804 watching Championship cricket, 27,871 the National League, 23,988 the new Twenty20 competition and 182 the game against India 'A'.

Although happy with the financial situation, chief executive Colin Graves makes clear to members his deep disappointment at Yorkshire's performances last season.

He had said last year that the 2002 season had been an 'annus horribilis' for Yorkshire and now he felt 2003 must go down as one of sheer disappointment.

But he had a very positive message to give this year, especially with the recent announcement that David Byas had rejoined the club as director of cricket.

He was sure that Byas' strength of character and passion for Yorkshire cricket would result in an improved performances.

Last year, the players had failed to perform where it mattered, which was on the field, and the failure to gain promotion in the Championship and relegation in the National League was not acceptable for a club like Yorkshire.

"We can all make excuses such as injuries to key and overseas players and the weather but in real terms we didn't perform and fight hard when we had to. This has got to change for the 2004 season to ensure the improvement in Yorkshire's income and profitability."

Updated: 11:02 Monday, March 01, 2004