MANCHESTER City have reported a £3.5million operating profit to May 2005.

The results, which take into account Kevin Keegan's pay-off, but not the £21million sale of Shaun Wright-Phillips to Chelsea, are £0.5million down on 12 months ago but have helped slash City's overall debt to £57.7million.

For the second successive year, the Blues have recorded a turnover in excess of £60million, with a slight fall in income being put down to a reduction in revenue from cup games.

The announcement is good news for chief executive Alistair Mackintosh, who had worked tirelessly to increase revenues but has so far failed to attract the kind of big investment chairman John Wardle would welcome.

Mackintosh has succeeded in keeping the wage bill under control, with the overall figure remaining static at £37.7million.

And, with 93% of the current debt not due to be repaid for five years at least and their club riding high under new manager Stuart Pearce, the Blues fans can look forward to the future with increasing confidence.

Strategy

“Our strategy remains to reduce total debt over time whilst balancing the requirements and ambitions of the footballing side of the business,” said Wardle.

“Our baseline football objective remains the retention, consolidation and development of our Premiership status and to that end the last year was successful for Manchester City.

“Our eighth-place finish, missing out on a UEFA Cup place by the narrowest of margins, was beyond our expectations and inconsistent with the indifferent form we displayed over parts of the season.

“The appointment of Stuart Pearce as manager was the catalyst for a change in our fortunes.

“His passion and vigour perfectly compliments the enthusiasm and ambition of our proud football club.

“We enter the next phase of our development focused, determined and optimistic.”

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