BOSSES at Bolton’s Octagon theatre are optimistic about its future - despite ticket sales falling by a quarter in a recession-hit year.

And they are expecting to finish “in the black” again this year despite a testing 12 months.

Executive director John Blackmore says a grant of £150,000 from the Art Council’s Sustain fund has helped the 43-year-old theatre balance the books.

He remains bullish about the future despite a warning from the Octagon’s trustees that there are challenges ahead with uncertainty over funding.

Mr Blackmore said: “We have fantastic support and for a theatre of our size, which is a relatively small venue, we have been punching above our weight in attracting funding.

“We have a very ambitious programme and we are doing very well, albeit with the help of the Sustain money. That said, if we hadn’t got that money then we wouldn’t have been able to continue with the programme at the same level.

“We expect to finish ahead of our target. Bolton Council has guaranteed funding for the next three years, with small increases in each of those years and that is a fantastic show of support from them.”

The Association of Greater Manchester Authorities (AGMA) and the Arts Council North West also continue to contribute heavily to the running of the theatre.

In the introduction to the theatre’s accounts for 2008/2009, the trustees say: “The theatre will need to uses its accumulated reserves, gained through significant box offices success, over the next few years to enable it to continue to meet its artistic policy and vision.”

The figures, to March 31, 2009, showed a “surplus” of £45,490, which was down on the previous year’s figure of £86,625, on a turnover of £1.9 million. That came despite predictions of a loss. over falling sales.

Ticket sales last year brought in £612,301, down from £812,476 in 2007/08, a fall of around 25 per cent.

In 1999, the Octagon faced closure after finding a massive funding deficit due to a freeze in arts subsidies and drop in audience numbers.

But it was saved after Bolton Council, AGMA and the Arts Council stumped up £250,000.