York City have transformed a 12-week £332,338 operating loss a year ago into a profit of £83,970 during the past 12 months.

The effort marks a remarkable achievement off the pitch during a season in which the Minstermen ended their 75-year stay in the Football League with relegation to the Nationwide Conference.

City's impressive cash flow turn around was revealed today when the financial accounts for the year ended June 30, 2004 were published.

The accounts show the club made a profit of £83,970 during the financial year compared to a loss of £332,338 for the three months ended June 30, 2003, amounting to an estimated annual debt of more than £1million.

On taking the club out of administration, the board inherited a significant number of onerous contracts, principally in the playing area, and other significant inefficiencies as a consequence of previous regimes.

Redundancies and other difficult decisions have also had to be made in order to match income to expenditure.

Commenting on the results, City finance director Terry Doyle said: "The size of the loss for the period to 30 June 2003 emphasised to our supporter base the enormous task we had inherited.

"Despite taking the club out of administration we were faced with a position that if drastic action was not taken, the club would still continue to lose around £1 million per year.

"If the new York City was to survive then it was evident that immediate and tough action needed to be taken to match income to expenditure. These results show that the football club board has not shirked this responsibility and these results are a major step forward in ensuring the future stability of York City Football Club."

The club stressed, however, that although profit has been made, the board of directors still have a tough task ahead.

City must strive to continue to recover the early losses of £330,000 before cash flow pressures are likely to ease.

The effects of relegation, including the loss of income from the Football League, will also add to the pressure.

But Doyle added: "I am now confident that the infrastructure is in place for the football club to be run properly, and to budget the appropriate resources on the playing field, which will, in the future, allow the club to prosper from the benefits of a successful playing squad.

"The importance of returning to financial stability was also a key factor in York City obtaining the loan from the Football Foundation of £2 million. We had to demonstrate to the Foundation that we were a well organised club, run on a sound financial basis in order to afford the interest repayments on the loan. If we had not been able to demonstrate this then the loan would not have been forthcoming.

"I would like to thank our fans and the York City Supporters' Trust who have been magnificent in their understanding and support of the board. We are determined to use this stabilisation as a springboard for future success."

The results have been achieved despite John Batchelor reneging on promised payments of £42,500 plus legal costs of £2,500.

Legal and professional fees of £43,000, listed in the accounts, also principally reflect the costs of the proposed move to Huntington Stadium.

Wages and salaries amounted to £950,376, which represented a saving of more than 50 per cent compared to the previous year.

The accounts also reveal that board members Steve Beck, Jason McGill, Terry Doyle and Sophie McGill all handed over £5,000 loans to the club while fellow director Ian McAndrew donated £3,000 as a loan.

In addition, managing director Jason McGill received £16,000 in rental fees for youth team accommodation at Grosvenor Terrace, which was 50 per cent of the cost of servicing the property.

The club's biggest money generators over the past 12 months were gate receipts (£790,321), Football League receipts (£322,227) and shop and programme sales (£190,765).

However, shop and programme purchases also cost £124,600 with police and steward costs totalling £85,798 and social club costs £26,040.

The social club's income over the past year was £38,004.

Playing costs (£100,354) and employers national insurance contributions (£92,119) were the club's biggest overheads after wages and salaries.

CHRIS Brass will be sending a full-strength side to Unibond League outfit Guiseley tomorrow night.

The match kicks off at 7.30pm and the Minstermen will be hoping to include both Shaun Smith and Lev Yalcin, who are expected to sign contracts today.

Former Crewe captain and left-back Smith impressed for City in the friendly against Middlesbrough while Yalcin had indicated that he is ready to commit his future to Bootham Crescent despite interest from Turkey and Belgium.

Key cash points

An operating profit of £83,970 was made by the club during the period of June 30, 2003 to June 30, 2004

In the three months between March 6, 2003 and June 30, 2003 the club suffered losses of £332,338

John Batchelor's reneging on promised payments cost the club £45,000 while the abortive costs associated with a proposed move to Huntington Stadium made up a large percentage of the £43,000 legal and professional fees.

Board members Steve Beck (£5,000), Jason McGill (£5,000), Terry Doyle (£5,000), Sophie McGill (£5,000) and Ian McAndrew (£3,000) all gave the clubs money in loans over the past year.

Wages and salaries saw the club pay out £950,376, which was more than a 50 per cent saving on the previous season.

Gate receipts of £790,321 was City's biggest cash generator.

Updated: 10:50 Tuesday, July 27, 2004