Birmingham in the black

Robbie Savage has helped Blues thrive in the Premiership

Birmingham have announced a pre-tax profit of £3.3m for their first season in the Premiership.

The results, for the 12 months up to the end of August last year, saw their turnover rise by over £20m to £36.5m.

"It has been a good year for the club both on and off the pitch," said chairman David Sullivan.

"I am delighted with our progress, whilst remaining focused on the importance of building upon this in our second year in the Premier League."

City's operating costs have also risen dramatically, with boss Steve Bruce investing heavily to keep Birmingham in the top flight.

Operating expenses rose by almost £8m to £25.7m, with 54% of the club's turnover (£19.7m) going on wages.

Sullivan revealed the club spent over £13m on new players in the period, signing Matthew Upson, Jamie Clapham and Steven Clemence permanently and taking Christophe Dugarry on loan.

But the chairman said the investment was worthwhile after a strong first season in the Premiership.

"Overall there is a strong team-spirit at the club," said Sullivan.

"On behalf of all shareholders I would like to thank Steve Bruce, his management team and the players for their complete commitment and effort that has ensured our continued success in the Premier League."

Sullivan admitted he had not budgeted for any new signings until the end of the season but revealed injuries and suspensions have made him rethink that policy.

He said: "The board had hoped that the current strength of the squad would result in our not having to make any major investment in players until the summer of 2004.

"However with injuries to key personnel we may have to review this policy. In the event that we do purchase additional playing staff this will have an immediate effect on wage costs."