The RFU has recorded a profit after tax in a Rugby World Cup year for the first time.

The Union's financial results for the year ending 30th June 2008 released today (Wednesday) show a £1.5m profit after tax for the year ending June 30, 2008; an improvement of £3.3m over results for 2003/04 when a loss of £1.8m was incurred in England's World Cup winning year.

The RFU further strengthened its balance sheet, with net worth increasing by 7.2m to £141.8m and, despite the fact that World Cup years are financially challenging for all northern hemisphere unions with the loss of November internationals, the RFU's turnover only declined by £4.6m, from £103.7m to £99.1m.

Despite the reduction in ticket income of £11.9m, the policy of revenue diversification saw new income streams being generated to offset the financial impact of such events as Rugby World Cup tournaments.

In 2007/08 England Rugby Travel, the RFU's travel company, had its most successful period in its three year history, securing revenues of £7.7m, an increase of £6.9m over the previous year. The growing popularity of Twickenham Stadium as a leading concert venue saw five concerts being held, generating total revenues of £2m.

The RFU is also pleased to report that ticket sales increased for many non-international matches at Twickenham. The Army v Navy match for the Babcock Trophy attracted more than 50,000 for the first time; the Guinness Premiership final had a capacity 82,000 crowd for the first time and a record 65,000 attended the EDF Energy Cup finals.

The RFU was also able to increase funding to the community game. A record financial allocation was made to the RFU's member clubs and Constituent Bodies, which saw investment increase by £0.6m from £19.3m to £19.9m. Community rugby investment also increased by £1.0m, from £15.2m to £16.2m, due to the successful Go Play Rugby campaign, which recruited some nine and a half thousand players, against the target set of six thousand players.

Said RFU Chief Executive Francis Baron OBE, "Given that Rugby World Cup years are always financially challenging, it is pleasing to report that our financial performance was strong, that we exceeded expectations and that we invested an extra £1m in community rugby and still increased our balance sheet strength further to £141.8m.

"We have also entered into new four year sponsorship contracts with O2 and Nike at increased values and have recently reached agreement with Sky Sports over a new five year agreement extending their coverage of rugby union and delivering improved revenues. This gives us a strong and solid foundation during a period of global economic uncertainty.

"These renewed commercial partnerships show that rugby union continues to attract strong support even in difficult times which gives us all reason to be optimistic for the future in spite of the gloomy economic scenario".

Full financial results can be viewed on the Annual Report microsite on the homepage of rfu.com

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