Breaking into the top six in the Premier League is the goal for Leicester City, the club has stated in its annual financial report.

City have recorded a pre-tax profit of £1.6 million for the year ending 31 May, 2018, compared with a record £92.5 million for the previous financial year, which was due largely to City’s Champions League campaign.

However, the club has continued to invest in the playing staff and the directors valued the club’s playing assets at £346.7 million, an increase of £41.6 million on the previous year, with a cost on the books of £237.640 and net carrying value of £144.5 million.

City have continued to invest in the squad with £92.9 million spent in player registrations.

During that period City signed Sam Hughes, Harry Maguire, Vicente Iborra, Eldin Jakupovic, Kelechi Iheanacho, George Thomas, Adrien Silva and Fousseni Diabate.

City made profits of £38.33 million on player sales during the same period, due mainly to the sales of Danny Drinkwater and Tom Lawrence. Marcin Wasilewski and Ron-Robert Zieler also left the club.

City announced gate receipts of £12.9 million, up 11 per cent by comparison with 2016 and 2015, despite freezing season tickets, and the report states City are also expecting increased TV revenue, although slightly, from the new television deal agreed between 2019-22, ‘as long as it continues to finish in the top half of the Premier League each season.’

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“The club’s on pitch performance in the Premier League is currently satisfactory with the club comfortably in mid-table,” said the report, signed off by chief executive Susan Whelan.

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“The club continues to aspire to challenge the big six clubs.

“Membership of, and finishing position in, the Premier League have a highly material impact on the revenue streams and cash generation of the club.

“The company also faces the risk of under-performing against crowd expectations which has a significant impact on revenue streams and cash generation.

“Qualification for European competition also has a highly material impact on the revenue and cash flows of the club for the season in question.

“The directors understand these risks and therefore make prudent budget assumptions with regards to League position and cup success.

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“The directors also monitor the performance of both management and players, and have a proven record of making changes where required.”

City have recently sacked manager Claude Puel after a run of poor results saw City slip to 12th in the table, and have appointed Brendan Rodgers, who has stated publicly the target is to challenge the top six.

“At a time when our biggest investment projects are visibly beginning to take shape, Leicester City supporters can feel excited about what the future holds for their club and confident in the King Power Group’s vision to take them there,” said Whelan.

(Image: Plumb Images/Getty Images)

The report also includes confirmation that City reached an agreement to pay the Football League £3.1 million ‘in relation to a dispute arising out of the financial results of the club for the 2013/14 season,’ after the club were charged with failing Financial Fair Play requirements.

“The directors are confident the club will continue to comply with the Premier League Sustainability and Profitability and Short Term Cost Control requirements and the UEFA Financial Fair Play requirements.”