Mark Birch's U18 team faced Huddersfield Town in the Youth Alliance Cup at Creighton on Tuesday afternoon.
Romeo Park and Freddie O'Donoghue got the goals for the Blues but it wasn't enough to earn a point.
Youth boss Mark Birch said: "It wasn't a great game with neither team playing particularly well on the day.
"We went 2-0 down quite quickly from two mistakes but got back into it with Romeo's goal. Their third goal came from another mistake which was disappointing because we had a lot of pressure in the second half, we just couldn't get another goal."