Dundee United set out the need for continued financial prudence after nearly quadrupling club profits in one year with a gain of £1.22m in the year ending June, 2014.

The Tangerines had made a profit of £319,115 in the previous year.

The Premier League club has now reported a profit for the financial year in four of the last five years.

But the annual report warned: "This success must be tempered by the fact that recent financial performance was only possible through effective player trading and in the case of this period a mutually beneficial buy-out agreement with the bank."

In February, last year the Dundee United Football Company Limited agreed a deal to wipe out its debt to the bank.

The club had previously been working to cut its loan debt by almost half from a peak of £6 million to just over £3m.

The report added: "The club must...aim to strike a careful balance between managing costs such as administrative expenses and wages, which rose 18% and 8% respectively, and delivering a team capable of competing for silverware at the highest level in Scottish football.

"With club turnover at similar levels to ten years ago, the importance of securing real value for the clubs and the game as a whole in this country remains paramount.

"While the club continues to operate in the Scottish football market place and faces the associated challenges of limited commercial and broadcast income, an ongoing focus on first team progression and youth development will, in the directors' opinion at the very least protect Dundee United's current revenue channels."

The club said it would continue to target qualification for UEFA European football competitions which provide the opportunity of increased revenue.

The £1.2 million profit figure does not include the sales of Andrew Robertson to Hull City or Ryan Gauld to Sporting Lisbon, with that transfer cash due to appear in the next set of accounts. The board believes that the profit on the transfers will be around £3.3 million.