Cardiff City made a profit of almost £1m in the financial year that ended in May 2006 - an improvement of £7m on the previous year.
Chairman Peter Ridsdale said the sale of Cameron Jerome to Birmingham in May last year for £3m was the main factor in the turnaround at Ninian Park.
The club also cut the player wage bill from £8.5m to £6m, but consultancy fees to Ridsdale's company rose by £180,000.
"The accounts show the progress the club is making," said Ridsdale.
"We've gone from being a club that was haemorrhaging cash and losing money. But this is just part of the milestone of getting into the new stadium.
"When we get to the new stadium I would like to feel that we can make a profit year-in-year out.
"The shareholders ultimately decide if I'm fair value for money, not me""I would expect to see a rollercoaster between now and then because at a club of this size it is very difficult to make a profit without selling players."
The accounts also showed the company owned by former chairman Sam Hammam, Rudgwick Ltd, charged the club £200,000 for "supplying management services in respect of its ordinary activities and the club's new stadium project".
Cardiff City owed £849,535 to Rudgwick Ltd at the end of May last year.
Hammam agreed to sell his controlling share in December last year, and a new financial restructuring of the club was voted in by shareholders three weeks later.
The new structure saw Ridsdale installed as chairman on a new board of directors that includes Mike Hall, Alan Whiteley and Steve Borley.
Since the takeover, the club have received unconditional planning permission by the local council for the new stadium, and hope to complete the project by early 2009.
When asked if the £201,745 consultancy fees paid to his company was value for money, Ridsdale said: "Two things that were impossible at the time I offered my services have now happened - that is staving off liquidation and getting the new stadium project unconditional.
"I'm very proud of that. I've gone on record saying it's probably the best job I've done because I thought it was impossible when I arrived.
"The shareholders ultimately decide if I'm fair value for money, not me. I don't determine what the fees are - in the past it was Sam [Hammam] and now it's two of our non-executive directors.
"I've now agreed, given the change of structure, to be an employee [of Cardiff] for the first time because circumstances have changed.
"At some point in the future the shareholders will tell me whether I'm doing a good job and if I'm worth what they are paying me."
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