Watford chief executive Scott Duxbury has provided a positive opinion of the Hornets’ finances after the club published its annual report for the 2016/17 season.

Watford’s overall turnover increased by almost £30 million on the previous year in 2017.

The figure is up to £124m from £95m – a rise which is put almost entirely down to an increase in central Premier League funding.

Pre-tax profit climbed from £3.6m to £4m the previous year, and Watford’s continued involvement in the Premier League has had a positive impact on the sums.

“As in the previous year, the financial performance of the club is reflective of its progression in the Premier League,” Duxbury wrote in the report.

“Turnover continues to grow significantly, as do the increased running costs associated with running a successful business within the Premier League.”

The increased operating costs Duxbury mentions have seen a rise from £24m in 2016 to £30m in 2017 which relates to football operation costs of 1.5m, centralised youth and community costs £1.5m and increase in depreciation and disposal costs.

While Watford’s profit is good news for the club, the pre-tax figure of £4m is the second lowest of any of the 15 top flight clubs to publish their accounts for 2016/17 so far.

Watford’s revenue growth received a £29m boost, which was thanks in no small part to the new three-year Premier League TV deal rising to £110m.

Their revenue has increased by £106m since Watford returned to the Premier League in 2015 and now stands at £124m.

That figure is still among the league’s lowest and only Hull City (£117m), who were relegated last season, had a lower revenue than the Hornets in 2016/17.

The sale of Odion Ighalo for £20m to Chinese side Changchun Yatai in January went a long way towards securing a £17m increase in profit from player sales, which amounted to £22m.

This figure was central to Watford making profit and they would have posted an £18m loss had it not been for the money brought in by player departures.

Any fear a profit will not be posted next year could well be alleviated by the sale of players in the summer, which, while not always conducive to securing results on the pitch, is key in the running of any football club.

Departures may have been key to the vicarage Road club posting a profit, but Duxbury insists investment in both players and facilities at Vicarage Road and Watford’s London Colney training ground remains a priority.

“The club’s owner continues to be committed to new investment into the business in respect of playing staff and updating the facilities,” he said.

“The strategy continues to be clear at Vicarage Road with ongoing works relating to accessible stadium requirements and a new hospitality reception.

“The club continue to review options for further development of the stadium in order to increase capacities in both hospitality and general seating areas.

“The club also continues to invest in its playing squad, in order to sustain performance and improve on its 17th position in the Premier League during 2016/17.”

Duxbury’s claim Watford have been quick to invest in players since reaching the top flight is borne out by the £73m spent on payer acquisitions in 2016/17.

This figure is once again among the Premier League’s lowest, but has been backed up by the £18.5m record signing of Andre Gray ahead of the current campaign.

Watford also spent £18m more on player wages in 2017 than 2016 as a 31 per cent increase saw the figure rise to £76m.

Gross debt rose by £12m to £50m – the seventh lowest in the league – with a rise of £21m in loans from group companies saw that figure reach £45m.

Duxbury offered an optimistic appraisal of Watford’s position going forward and says staying in the Premier League has been key to the club’s ongoing growth.

He said: “Retention of Premier League status for the 17/18 season maintains the club’s positive outlook.

“The shareholders are committed to invest in the club to enhance its value and performance on and off the pitch.”