Carlisle United made a profit of nearly £400,000 in 2020/21 - but saw their debt rise to £3.16m.

The figures have been published in the Blues' latest audited accounts.

United announced their financial results this morning.

The Cumbrians saw turnover down after a season affected by the Covid-19 pandemic.

But their latest profit saw chief executive Nigel Clibbens conclude that United's financial results were "excellent".

The scale of the debt, though - up £100,000 as a result of ongoing interest payments to Purepay Retail Limited - also highlights a major issue still to be resolved if the club is to push forward under a new regime.

Clibbens admitted that meant there was still some "uncertainty" over the long-term picture at Brunton Park. United, at the year end, owed Purepay £2,329,699.

United's auditors, MHA Moore and Smalley, also note that United have "not received confirmation from [Purepay] that they will not seek repayment of the amounts owed to it for a period of twelve months from the date of approval of these financial statements, and as a result PRL could seek repayment of the balance."

That uncertainty, the auditors add, "indicates that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern."

For the year ending June 30, 2021, United made a profit after tax of £397,000, having reported a £782,000 profit the previous year, despite a season when fans had mostly been unable to attend games because of Covid.

Headline turnover was £4.06m, down from £4.59m, with recurring business turnover £616,000, down from £1.36m - the reduction down to the effect on the pandemic on ticket sales, retail and commercial activity.

Non-recurring, one-off business turnover went up from £200,000 to £825,000 as a result of Premier League grants, iFollow streaming and fan donations arising from the pandemic.

United received £242,000 from the Government's furlough sceme, down from £361,000 in 2019/20, meaning a total of one-off Covid-related income of £1.07m.

The Blues said this, along with other cost savings, "fully balanced the £1.2m reduction in our ‘normal’ recurring business turnover."

In terms of 'football fortune' - income from player sales and cup runs - United's figure fell from £1.45m to £1.07m, but the club said they have not received all that cash yet.

The amount from player sales alone was £977,000.

Carlisle's wage bill was down by £100,000 to £2.4m while football spending remained at £2m.

The Blues' net assets were valued at £5.3m with net cash in hand up from £396,000 to £1.24m.

United are still owed £213,000 in player sale income.

Chief executive Clibbens, commenting on the figures on the club website, said: “The filing of the audited annual accounts and detail being made public now is very much historic.

"However, the key financial headlines have already been shared in detailed financial updates given to fans since the year end.

“The 20/21 financial results are excellent in the circumstances and show us in a sound position day-to-day. 

“The underlying trading of the club continued to hold up well in the challenging circumstances on and off the field. 

“We fully absorbed all exceptional adverse financial effects of Coronavirus [through a combination of cost savings, fan donations in lieu of refunds, claims under the HM Government Coronavirus Job Retention Scheme and other one-off Coronavirus related income, such as iFollow and grants from the Premier League].

“Clearly player transfer income was again important. This remains a crucial element of our funding and operating model each year.

“A full and detailed explanation of 20/21 results is contained in the annual accounts. Again, this year they provide comprehensive information. This year we have added further disclosure of a cash flow statement.

"This is part of the commitment to be transparent about the club’s finances and the issues and challenges we face.

“At 30 June 2021, we had cash in hand and further transfer cash due in, and no creditor pressure or debt repayments scheduled for 21/22 except for small amounts to the EFL. The legacy VAT deferral outstanding at the year end has been settled since.

“We are pleased that we were able to emerge from a difficult period, well-placed financially, with few legacy Coronavirus issue. In summary, our day-to-day cash position remains sound and our trade creditors position remains good with the trading liabilities remain low. 

"All our PAYE and VAT liabilities continue to be paid up in full and on time. We also recognise the club faces uncertainties and challenges going forward.

"As we have changed course and takeover discussions ceased towards the end of 2021, there is some uncertainty until the matter of the repayment of the PurePay loan is resolved.

"The backing of all those who have supported us has been crucial and we hope that will continue as we face the future. Thank you all.”

Looking ahead in his notes in the accounts, Clibbens added: "In 2021/22, we expect to suffer a very significant operating loss before any new football fortune.

"With no planned shareholder support or new financial support under the Purepay Retail Limited commercial loan facility, it means new unbudgeted football fortune and existing cash reserves will continue to be very important to fund the club.

"We expect most of our cash reserves at June 2021 and all forecast deferred receipts from prior year player sales, will be required to fund the club’s normal funding requirements, planned increases in total football expenditure, the unknown new impact of coronavirus and the legacy financial issues arising from coronavirus during March to June 2021.

"These challenges will make the coming year difficult from a loss point of view, even though our cash reserves will be sufficient. We expect to be able to operate without any external third-party cash support as we have since May 2019.

"By June 2022, we could then have little financial cash reserves and cushion for 2022/23 without other new non-recurring business income, football fortune or external support.

"With our cash reserves being depleted by 2021/22 losses, the club could be in a much higher risk position moving into 2022/23."

Clibbens also comments in the accounts that the long-term stadium issue remains critical to United's future.

"Meaningful progress beyond the current approach of emergency only renewals [to Brunton Park] will need a united and community based approach, with fans and public and private sector working together," he said.

"This inevitably requires long-term planning and leadership and crucially, certainty over the future direction of the club.

"It remains the case, the stadium issues cannot be addressed until resolution of questions over long-term ownership, direction and vision of the club are clear – this means succession must be resolved first, before any steps can be made."