NEWPORT County AFC holds its AGM on Thursday and, after reporting a healthy profit for last season, the directors’ levels of optimism about the figures for this campaign will be revealing.

According to the Exiles’ latest accounts, a pre-tax profit of £339,522 was achieved in the year ending on June 30 last year, compared to a £676,909 loss in 2014/15.

Turnover also increased to £2.04m from £1.97m the year before.

The club cited the £723,000 from the sale of Regan Poole to Manchester United and Aaron Collins to Wolverhampton Wanderers, as well as a sell-on fee from Conor Washington's transfer from Peterborough United to Queens Park Rangers, as the major factor in the improved financial performance.

Operating losses, before the sale of players and exceptional items, also reduced to £360,000 from £760,000.

Increased income also came from £236,000 raised by the Supporters' Trust to acquire the club during the period, and a £200,000 increase in distributions from the Premier League.

This allowed the Exiles to improve their financial position from almost £300,000 of unsustainable debt at June 30 in 2015, to a £270,000 surplus a year later.

The run to the FA Cup third round – and resultant TV coverage of the match against Blackburn Rovers – was also a boost.

But the outlook undoubtedly looks less healthy for the period up to June 30 this year.

In their report accompanying the accounts, the directors said: "The club has one of the smaller supporter bases in League Two and so is always going to struggle to compete financially with many of its rivals.

“For this reason, if the club can generate transfer fee income from the occasional sale of players developed through our academy, it will allow the club to compete more effectively."

But there seems little prospect of a big payday from the sale of any of the current squad and chairman of the owners board Malcolm Temple has already outlined his concerns about the projection of the likely financial result for the year to June 30 this year.

Temple said in December that “the impact of lower than expected gates and the costs of match cancellations is presently of the order of £100,000.”

That will have accounted for most of the money made from this year’s FA Cup and EFL Trophy victories and the TV fee for the replay against Plymouth Argyle before Christmas, when County were forced to hire an expensive dome-style cover to ensure the match went ahead.

And details of the condition assessment report carried out on the Rodney Parade pitch by leading sports turf consultancy STRI – revealed by the Argus today – suggest that more postponements are likely before the winter is out.

The report states that the business model of hosting three teams on a natural grass pitch must change.

Renovation work to fix the faulty drainage system is recommended for this summer but, long-term, the installation of a grass and artificial fibre hybrid surface, at a cost of around £1m, is the best hope of making the three-way ground-share work.

And, while work is planned on the drainage system this summer, Rodney Parade Ltd does not have the money to install a Desso-type surface.

The report’s conclusion reads: “The current model for pitch usage is unsustainable.

“There will be ongoing issues until such time that this model changes and/or major investment in a new pitch construction and hybrid grass system is considered.

“The immediate future is bleak and there is a real risk of further cancellations or abandonments of games if the fixture coincides with wet conditions.”

And with the very real prospect of relegation from League Two to the National League hanging over the club there is the potential for crowd numbers to dwindle even further.

Older fans will know all too well what happened the last time the club lost its Football League status and there is plenty to feed the glass-half-full supporter right now, not least a run of 11 games without a win.

But Graham Westley’s new-look side at least offered a glimmer of hope with an encouraging display to hold in-form Colchester United to a 1-1 draw on Saturday.

The players, typified by the returning David Pipe, showed they are up for the fight and they should all be aware that the outcome of the battle to beat the drop will have far-reaching consequences for the long-term financial stability of the club.

As Temple said: “This is a time for confidence, courage and support if we are to avoid what we all dread.

“I read discussions debating what the board’s ‘tactics’ must be.

“If we think in those terms (some mention gamble) then I can assure it is to avoid the drop at any price.

“We cannot and will not go down.”