The financial result signifies a dramatic improvement on their 2008 figures when the Blades suffered a loss of £6.3m.

The £12m transformation was largely achieved by a reduction in bank debt which was slashed from more than £11m to just over £2m.

United, who sold Kyle Naughton and Kyle Walker to Tottenham this summer for an undisclosed fee believed to be around £8m, saw turnover fall marginally to £32.1m but ticket revenue rose by £500,000 and their leisure division made profits of £1.1m.

First-team player wages were maintained at £15.7m, a similar level to their season in the Premier League in 2006-07.

For the present campaign, despite the loss of parachute payments, the salary budget is more than £12m.

Kevin Blackwell's side, agonisingly denied promotion by May's play-off final defeat to Burnley, sit 14th, well off the pace in the Championship.

However, McCabe, who last week appointed Trevor Birch as chief executive, said: "The world has changed and, in leading Sheffield United in these difficult economic times, the ability to adapt to change is vital in order to maintain the safe running of our famous club.

"On the pitch last season, we were still in with a chance of automatic promotion but, for the fourth time in the last 12 years, promotion back to the Premier League via the play-offs eluded the Blades.

"In simple terms, we must all pull together again in order to achieve our aim of getting back to where we belong.

"The playing squad has been strengthened in several key areas to accommodate our objectives for this season, adding quality to the first team in a manner to suit the need to steadily reduce the annual player wage bill.

"The parachute funding from the Premier League ceased at the end of last season and thus the management of the football team has to be achieved within its budget.

"But make no bones about it, the budget Sheffield United has is well in excess of the majority of our competitors in the Championship.

"Let's hope that United get the rub of the green which, for whatever reason, so often seems to elude us as there is no one striving harder than Sheffield United to be back amongst the highest echelon of English football."

Blades winger David Cotterill has completed his switch to Swansea City initially on a loan deal which will become permanent in January.

United are understood to have agreed a £500,000 fee for the 21-year-old Welshman.

Blackwell wants to sign two players before today's emergency loan transfer deadline with a goalkeeper his priority.

Ian Bennett is set to be out for up to a month due to a thumb injury, leaving Mark Bunn with no cover.