Annan Athletic boss Peter Murphy insists his side have the character to handle their first setback with their impressive form having earned Murphy the Scottish League Two manager of the month award.

The Galabankies were knocked off top spot in Ladbrokes League Two after losing at home to Clyde on Saturday – and they face new leaders Edinburgh City on September 15.

But Carlisle United legend Murphy feels he has a group of players that will react in the right way.

Murphy said: “We knew there would be some blips along the way but it’s how you handle them.

“You look at Stirling last year and they had a great run and then fell away a bit but they still managed to get into the play-offs.

“It’s nice to be up at the top of the table after the first month and it’s good for the club that I have won the award.

"I’m delighted with how the lads have started the season – but it’s only a start.

“We have a big test in our next game [at Arbroath] and we need to concentrate on that.

“However, there is no doubt that it’s great for the club in so many aspects when you achieve good results in the early matches.

“And the big thing for me is that I think there is more to come from the team.

“We haven’t really dominated matches and yet we have come out on top.

"It’s a great thing when you can win when you’re not playing to your full potential.”

Murphy was appointed player-boss last season and galvanised Annan before quickly realising that he could not do both jobs.

He said: “I made the conscious decision last season to quit playing because I wanted to manage properly.

"I have had a good career on the pitch and I felt I couldn’t combine the two roles.

“That was my choice – and others may have their own ideas – because I want to give this the best shot I possibly can.

“I want to see if I can do the job and playing on wouldn’t have worked.

“I guess I have picked up lots of bits and pieces from former managers and players and I’m always learning. I’m a student of the game.

“Last year we tried to put together a team and we have managed to keep the nucleus while adding some more quality this season.

“We managed to sign Chris Johnson and David Wilson who were at Dumbarton. Ross Fergusson from Queen of the South, Tommy Muir who had been doing well at Dalbeattie Star and we got Max Wright back.

“So we feel we have a stronger unit. It was a blow to lose last Saturday but we will come back fighting.”