SAINTS chairman Eamonn McManus is again stressing that the club’s long-planned new stadium can spearhead major and long-term regeneration and growth for St Helens, which he believes is vital during the current recession.

His statement follows news that Saints’ board of directors has moved to significantly strengthen the club’s financial position as momentum builds towards start of work on a new stadium.

By converting £1.35million of directors’ loans into new shares and generating £400,000 through a private placement of shares the rugby league club’s board has effectively cancelled a large debt from its balance sheet.

McManus revealed this week the move was necessary to the “financial soundness for the club” before the club commits millions to the planned stadium.

It is the latest positive stride towards starting work at the United Glass site in Peasley Cross, following on from St Helens Council’s agreement to partly fund the remediation of the industrial land and creating road and pedestrian links.

By the start of August five companies are expected to have been selected to go through a month-long tendering process that will decide who builds the stadium.

Speaking to the Star, McManus said the financial decisions underline the directors’ long-term commitment to the Super League side. He added it is further sign of their “confidence in the continuing progress of the stadium project”.

With Saints club having continued to accrue losses in recent seasons, which is blamed largely on their ageing ground, McManus’s investment since joining the board in 2001 is believed to have been key to the club’s survival.

He said the latest financial decisions “represents a major personal permanent capital investment contribution to the club and to the stadium” but added it will secure Saints’ long term future.

Off the field, the next 12 to 18 months are expected to be the most important in Saints modern history, according to their chief executive Tony Colquitt.

He will be tasked with managing Saints departure from Knowsley Road’s GPW Recruitment Stadium - the team’s home since 1890 – and the move to the new 17,980 capacity stadium.

Behind the scenes planning is gathering pace, with Colquitt set to begin holding regular stadium strategy meetings and the detailed design plans progressing.

He believes the move from the dated Knowsley Road surroundings to a modern base will be “almost like forming a new organisation off the field”.

The challenge is made steeper by the recession, however the slump in the construction industry could work to the project’s advantage by seeing firms offering more competitive prices to secure contracts.

The price of steel – a heavy cost factor in stadium projects - has also fallen over the past year.

Meanwhile, McManus has again stressed a new stadium can “spearhead major and long-term regeneration and growth in the town, which is particularly important and beneficial during a period of serious economic downturn”.

He added: “The club is embedded in the history of the town and we are glad to be contributing to its sporting and economic future in such a meaningful way.”

Meanwhile, Saints have appointed Andy Bell and Keith McCormack to its board of directors.

Bell is an existing shareholder and owns his own highly successful pensions administration business.

McCormack has extensive experience in property development and planning matters.