Keith Wyness told the Liverpool Echothat Everton's decision to invest heavily in their squad has reaped benefits as he described the annual financial results as "solid".

Though turnover dropped from £58.1m in 2006 to £51.4m, that figure reflects the decision to buy Andrew Johnson and Joleon Lescott, the impact of not playing in Europe and the outsourcing of catering and merchandising operations.

The club's wage bill and borrowings have also increased during the past 12 months but chief executive Wyness does not believe there is any cause for concern as the intention to be competitive in the transfer market has paid dividends.

"We did everything to push the envelope as far as we could and, clearly, the two signings we made worked very well as we finished sixth in the Premier League and qualified for Europe as well," Wyness explained.

"We expected a drop in turnover, as the previous season we had finished 11th in the Premier League and failed to qualify for Europe.

"But we also wanted to invest in the squad as much as we could. That has had an impact on the financial results but we are satisfied with them all the same. They are solid rather than spectacular."

Everton also suffered a £500,000 operating loss, compared to a £3.5m profit in 2006, but Wyness said that was "a very small amount" in Premier League terms and reflects the careful fiscal management at the club.

The AGM takes place on Tuesday, December 4.