Raith Rovers have suggested they were heading in the right direction on and off the park after posting a profit for the year ending June 30.
The Kirkcaldy club’s accounts have been rubber-stamped by auditors and show a profit of £81,350, achieved by an increase in turnover of 18.3% up to £1.043 million.
The figures also revealed that total costs have been cut by 4.5% from the previous year.
A statement from the club confirmed that the improved trading position has been principally achieved by the new business model introduced by the board at Stark’s Park two years ago although directors say close supervision of costs remains “essential” to further improve the financial picture, with the balance sheet still displaying an overall deficit.
“As in any organisation, financial changes and improvements take time to be realised and it is encouraging to see things moving in the right direction,” the club said.
“Obviously these results were further enhanced by good runs in the Scottish and League Cups in season 2012/13 and the new management team and the players must be congratulated for these achievements.
“In addition to the trading profit, the club’s balance sheet has been enhanced by the further capitalisation of internal loans.
“During the year, over £300,000 of loans due to other group companies have been converted into shares. This has had the effect of reducing the asset deficiency from a peak of £1.44m in 2011 down to £605,000 in 2013.
“It should also be pointed out that liabilities for taxes and social securities are fully up to date.”
Despite the balance sheet showing a deficit, the club noted that the existing deficit includes loans from directors of £120,000, a balance of loan due to the parent company of £115,000 and an old loan from New Raith Rovers Investments Ltd of £215,000.
“External debt is, therefore, not substantial and there is no bank debt,” the statement continued.
“With the recent changes in Scottish football, it is anticipated that a slight improvement will be experienced in sponsorship amounts received from SPFL.
“The board will, however, continue to maintain tight control over expenditure in order to consolidate the business model, thereby enabling the club to progress with a secure foundation at what continues to be an extremely difficult time for Scottish football.
“It is intended that a general meeting will be held in the New Year.”