Manchester City have posted a profit of £10.7m for 2014/15, their first since the club was purchased by Sheikh Mansour bin Zayed in 2008.

The Premier League leaders also enjoyed record annual revenues of £352m and have zero financial debt, despite the opening of the City Football Academy in December 2014.

Manuel Pellegrini's side finished second in the Premier League last season and failed to win any silverware, causing chairman Khaldoon Al Mubarak to admit to a 'degree of disappointment'.

But he was keen to recognise the improvements made by the Academy teams and City's Women's side, who won the Continental Cup in their first season in the FA Women's Super League.

"The desire for silverware has always been a critical element of His Highness Sheikh Mansour bin Zayed's strategy for the reinvigoration of Manchester City both on and off the pitch," Khaldoon Al Mubarak said in the club's annual report.

"It's a strategy predicated on long-term sustainability and the ongoing development of momentum year-after-year.

"As a result of the momentum created to date this season, Manchester City delivered a profit of £10.7m from record annual revenues of £351.8m and a seventh straight year of year-on-year revenue growth.

"Once again, the season saw the club operating with zero financial debt.

As a result, to put things in their simplest terms, we are now a profitable business with no debt and no outstanding restrictions. Manchester City chairman Khaldoon Al Mubarak

"Our transition to profitability has been a long-planned milestone - one targeted and worked diligently towards since His Highness Sheikh Mansour's acquisition of the club in 2008.

"As a result, to put things in their simplest terms, we are now a profitable business with no debt and no outstanding restrictions."

Commenting on the figures, chief executive Ferran Soriano said the 2014-15 season had 'marked an historical step in Manchester City's journey'.

He added: "The club delivered an annual profit for the first time since its acquisition in 2008 whilst continuing to compete at the top of the Premier League and in the Champions League.

"The seeds of this year's profit were sown some years ago and many people have contributed to making it happen. They deserve to be thanked and recognized.

"We also know that this is not the end, but the continuation of a process that should take us to an even brighter future."