NEWCASTLE United last night posted losses of more than £12m - in part due to expensive new signings and an absence of European football last season.

The club's massive investment in England striker Michael Owen, bought from Real Madrid, and Spain international Albert Luque contributed towards losses from operations of more than £6.2m, compared with an operating profit of more than £5.9m the previous year.

Its total retained losses for the 11 months to June 30 were more than £12m, compared with a £620,000 profit the year before.

Newcastle's failure to qualify for Europe led to reduced match day ticket sales over the past year, meaning revenue declined by £3.9m to £83.1m. Owen - facing most of the current season on the sidelines with a knee injury from England's World Cup tie against Sweden - cost the club £17m. Luque cost £9.5m from Deportivo La Coruna and Nolberto Solano's return from Aston Villa cost £1.5m.

In a statement to shareholders, chairman Freddy Shepherd, who sacked Graeme Souness in February following a poor run of results, said: "This year has been a period of transition for the club.

"The team performances in the first half of the season fell significantly below our level of expectations.

"Following the board's decision to make changes at management level, the first team had an excellent run in the first half of the season, finishing a satisfactory seventh place in the Premiership, and qualifying for the Uefa Cup through the Intertoto Cup.

"This season has not started as we would have liked, but there are signs of improvement, including our recent qualification into the group stages of the Uefa Cup.

"The board believes that the investment it has made in all areas of the club will deliver long-term benefits and will continue to take every step necessary to maximise potential for success both on and off the pitch."

Mr Shepherd said investment at St James' Park meant the club could derive more revenue from conferences, weddings and pop concerts.

The stadium hosted a concert for the first time in ten years in June, when Bryan Adams played to a crowd of 16,000.

Mr Shepherd said the club would be seeking more opportunities to profit from further concerts at the ground.

The figures were released as speculation continues over the Jersey-based Belgravia Group's interest in acquiring Newcastle.

Shepherd, who is understood to be ready to resist any bid, said that talks were ongoing, which may or may not lead to an offer.