Aston Villa announces the waiving of £90.1m of loans from its parent company, vastly reducing the Club's debt load and accelerating the process towards long-term stability and financial self-sufficiency.
These loans were converted to equity in December 2013, further strengthening the Club's capital base.
Turnover for the year ended May 31, 2013 was up £3.3m to £83.7m and operating expenses before exceptional items down £6.2m.
The Club's operating loss before exceptional items fell by £9.5m to £42.6m.
Robin Russell, Chief Financial Officer, said: "The 2012-13 accounts effectively close a chapter on a period of heavy losses. As we near the end of the 2013-14 season, the Club is financially self-sufficient, compliant with both UEFA's and the Premier League's Financial Fair Play requirements and we look forward to a period of continued growth and progress on and off the pitch."
Increase in turnover in 2012-13 was driven largely by improved on-pitch performance and a higher finish in the Barclays Premier League. Higher average league attendance and a semi-final place in the Capital One Cup also contributed.
Reduction in operating expenses was driven by rationalisation of the playing squad with amortisation of player's registrations down £3.1million and all other expenses down by the same amount.
Exceptional charges increased by £2.4million to £8.3million and included the accelerated amortisation of certain players' registrations and their employment costs. The accounts now more accurately reflect the value of the squad utilised by the manager.
As the squad was being rebuilt, there was no repeat of 2011-12's record-breaking profit on disposal of player's registrations (£0.3m loss in 2012-13 as opposed to £26.9m profit in 2011-12).
There was also no repeat of the one-off impact in 2011-12 of the waiver of accumulated interest of £20.3m by the owner on loans made to the Club. The group continues to benefit from this largesse to the tune of £6.1 million annually.
Although the operating loss fell by £9.5m, the combined effect of the above was to increase the loss after tax for the financial year by £34.1m to £51.8m. This was primarily due to non-recurrence of the high profit on player disposals in 2011-12 (£27.2 m) and waiver of interest (£20.3m).