Dundee United revealed a net profit of £834,000 in their annual accounts for the period to June 2008. The encouraging figures showed an improvement of £1.8million on the prior year and an improvement of £3.7million on the equivalent figures going back to 2003.
The club's debt to the bank was reduced by £500,000 from £6million to £5.5million.
It was also revealed the wages-to-turnover ratio was 57%, down from 64% in 2007.
"We are delighted to announce these results, which, as projected, show such considerable improvement on recent years," Chairman Stephen Thompson told the club's official website.
"We are particularly pleased that this increase in profitability has allowed us to make permanent reductions in our bank term lending and to reduce our reliance on overdraft facilities at the end of the year.
"While the extent of our overdraft will, of course, fluctuate throughout the year as a result of normal cash flow issues, it helps greatly to start from such a low position at the beginning of the year.
"While undoubted and considerable progress has been made in the club's financial position, I would caution that the financial climate for Scottish football is still a very difficult and challenging one.
"We do not expect that the current year to June 2009 will reflect the exceptional results seen in these figures but, nevertheless, against a difficult and changing financial landscape, we hope to continue to reduce bank borrowings and ensure that the club remains sustainable.
"It is worth noting that the Thompson family did not have to subsidise expenditure during the year to June 2008 and, at this stage, there is no requirement to do so in the current year.
"Nevertheless, the family has renewed its pledge to provide financial support to the club should it be necessary."