Everton are in fine financial shape after reported a record profit for the year leading up to May 31. PA Photos

Everton chairman Bill Kenwright says the club are making progress on and off the pitch after they announced a record profit of 28.2 million pounds.

The club's annual accounts for the 12 months to May 31, 2014, published on Friday, showed that the Toffees' turnover -- the amount of money taken in before costs -- was also the highest in their history, totalling 120.5 million pounds.

Those increases were helped by a rise in television income, sponsorship revenue and gate receipts.

They were also aided by a rise in money from player sales, which included the 27.5 million pounds deal that took Belgium midfielder Marouane Fellaini to Manchester United.

In addition to rising profits, Everton reduced their net debt from 45.3 million pounds to 28.1 million pounds.

Kenwright said: "We are moving forward on so many fronts off the field as well as on it. I know because I see it. I know because I hear it."

Everton finished fifth in the Premier League last season, their first under the management of Roberto Martinez, as they qualified for the Europa League.

Kenwright said: "It was a special season that blended the optimism of youth, a much talked-about, bold new style, individual brilliance and an enduring team spirit that runs through every Everton squad.

"It was a season that, quite simply, I didn't want to end."

The sale of Marouane Fellaini to Manchester United for 27.5 million pounds helped lead to Everton's annual profit. Alex Livesey/Getty Images

The club returned a profit for the second successive year, having made 1.6 million pounds in 2012-13.

Their turnover rose above 100 million pounds for the first time, rising from 86.5 million.

They were helped by a significant increase in broadcast revenue from the first season of a three-year Premier League television deal with Sky Sports and BT Sport, which began in 2013.

Everton received 88.5 million pounds in broadcast revenue -- more than their entire turnover for the previous year.

They also made 28.2 million pounds from player trading, thanks largely to the sales in September 2013 of Fellaini and Victor Anichebe -- who went to West Brom -- and of Nikica Jelavic to Hull City in January 2014.

Sponsorship, advertising and merchandising revenue increased from 7.6 million pounds to 8.4 million pounds, while gate receipts rose from 17.4 million pounds to 19.3 million pounds.

But overall operating costs, which include staff costs, rose from 96.2 million pounds to 115.3 million pounds -- with squad strengthening a factor in that increase.

Borrowings also rose slightly, from 48 million pounds to 49 million pounds.

The latest accounts do not factor in the club-record 28 million pounds signing of striker Romelu Lukaku, which was completed on July 30, outside the period covered.

That deal, along with new contracts for manager Roberto Martinez, midfielder Ross Barkley and defenders Seamus Coleman and John Stones, will be recorded in the 2014-15 accounts.

Chief executive Robert Elstone said: "The strong results for 2013-14 are a reflection of the drive, commitment and hard work of all staff at the club.

"Our financial results highlight growing revenues, costs remaining under control and debt reducing.

"When we combine that solid financial base with a playing squad that continues to improve and increase in value, we have every right to be confident and positive on future prospects."