Key points of note:

Income down to £63.7m as a result of a lower second year parachute payment.

Operating profit of £19m (Operating loss of £2.6m in 2016-17).

Profit after tax of £14.6m (Loss after tax of £2.7m in 2016-17).

Profit in the year driven by cost reductions and significant player trading in the January transfer window and early summer.

Cash inflow in the year of +£16.4m explained as follows:

- Cash generated from operating activities of +£9.5m

- Player purchases – cash outflow of -£20.1m

- Player sales – cash inflow of +£24.8m

- Fixed asset spend of -£2.3m

- Receipt of the Canary Bond and director loans +£5.1m

- Other cash flow movements -£0.5m.

As at June 30, 2018 there was no external debt with a cash balance of £16.1m at the end of the financial year. The Club anticipates a negative cash position by the end of this calendar year.

Since the June 30, 2018 financial year end:

- End of parachute payments (c£32m in 2017-18) further significantly reducing revenue in the current financial year;

- Corporation and VAT payments due in the first quarter of 2018-19 in excess of £10m;

- Recruitment of six first team players in the summer 2018 transfer window.

Key actions taken in the business within the last 12 months include:

Ensuring financial position remains stable whilst remaining in the EFL Championship.

Continued strategy of investing into football, whilst recognising the financial constraints of playing in the EFL Championship.

Raising c£5m from the Canaries Bond, with investments from Directors, for the construction of a new Academy complex at the training ground with the changing rooms and pitches completed at the start of the 2018-19 season with ongoing work on the Academy offices and gym.

Recruitment of six senior players in Summer 2018, with two released and sales of three players.

Continued to work closely with the local community through the official charity partner Norwich City Community Sports Foundation, and in particular following the opening of the first phase of The Nest project.

Following on from this financial year, the Club has undertaken a restructuring with the departure of the Managing Director and the implementation of a new and vibrant executive committee.

City Chairman Ed Balls commented: “This year’s annual accounts again underline the on-going challenge of managing sharply declining income year on year since we left the Premier League - and yet still remaining absolutely committed to supporting an exciting squad of players capable of competing well in the top half of the Championship.

“As a Club we’ve collectively rolled our sleeves up to face the challenges. Our football costs have more than halved since the 2015-16 season and despite this our Sporting Director Stuart Webber and Head Coach Daniel Farke have done a great job recruiting shrewdly and bringing through talented young players to produce a balanced, hungry and competitive squad.

“Off the pitch the Club continues to work hard to generate as much income as possible to support our footballing ambitions, aided by the continuing fantastic backing of our supporters.

“The year-end profit shown at the end of the 2017-18 financial year reflects cost reductions and transfer income received early in the summer. Since the end of the financial year in June, a combination of factors including the end of parachute payments, a large tax bill, the signing of six players and on-going operating costs means we are projecting a cash-negative position by the end of 2018.

“However the Board is confident that the reforms we have put in place over the last 18 months allow the Club and its supporters to look to the future with determination and optimism.”

To see the full Norwich City Football Club annual accounts, CLICK HERE.

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