The directors are pleased to report another period of positive financial performance, achieving profit for the year, after taxation, of £4.9m, whilst net assets increased to £45.0m.

Turnover improved significantly to £124.3m (2015: £113.7m) with commercial and match day turnover reaching £31.1m, the former up 21% on the previous year.

The group’s strategy has been to strengthen and maintain a competitive first-team playing squad in order to compete in multiple competitions, whilst simultaneously strengthening the overall operation of the club, through investment in its non-playing staff and infrastructure.

The Academy talent pipeline remains strong and there is a continued focus on the principle of developing young players and incorporating them into a successful first-team squad, as witnessed by ten Academy graduates playing first-team football in the 2016/17 season.

Significant investment has been made in the playing squad, with record transfer fees being paid to help grow the first-team squad and provide greater depth. Furthermore, the club has focused on establishing a core group of players on longer-term contracts.

The spend on player purchases and increases in player remuneration, offset by the cash inflow from player sales, saw a net cash outflow of £20.1m for the year, with a further net cash outflow of £22.7m forecast for the 2016-17 season.

Given this level of investment made during the year, the fact that debt levels have not increased correspondingly underlies the sound financial position of the group and is a reflection of its robust financial planning.

Toby Steele, Finance Director, commented:

“The group’s financial position continues to go from strength to strength, with a year-on-year increase in profit before player trading, growth across all revenue streams and costs remaining well controlled.

“Debt levels have stabilised and it remains the group’s intention to reduce its debt profile over the next three years, whilst continuing to invest in both football and non-football infrastructure, laying the foundations for future successes.”

Gareth Rogers, Chief Executive Officer, added:

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“During the financial year the club has continued to grow in respect of on-field results, strength of squad, financial position and internal infrastructure. Indeed, it’s this internal infrastructure, in particular the club’s outstanding staff, that has been the backbone of our growth.

“We keep on striving to turn potential into excellence in every facet of the organisation and these financial results provide a stable platform to continue on our pathway.

“The 2015/16 season was a great one for everyone involved with Southampton Football Club. A sixth successive season of improvement saw us achieve a record points tally and our highest ever Premier League position of sixth, culminating in qualification for the Europa League group stages.

“Our recent EFL Cup final has given everyone at the club a real sense of the potential we can reach when working together as a team, and we will use that experience to push ourselves forward as we fight to finish as high as possible in the league table.”