Premier League giants Manchester United have reported a drastic fall in profits for the financial year, despite seeing record revenues.

The Red Devils' net income fell by 84% to £23.8m following David Moyes' disastrous reign at Old Trafford – down from £146m in 2013.

A world-record £750m kit manufacturing deal with German sportswear giant Adidas was not enough to save the perennial title challengers' finances as missing out on the Champions League and the drastic restructuring of the squad, in which they spent over £150m on new players, hampered the club's finances.

Nonetheless, United's revenues once again soared and they were able to post record-breaking income figures.

For the fiscal year ending 30 June, the red half of Manchester said revenues had jumped by 19% to £433.2m as they announced new sponsorship deals with Chevrolet, AON and, of course, Adidas.

Former manager Moyes cost the club £5.2m in compensation packages to remove and, unsurprisingly, the club's wage bill increased as they added the likes of Angel Di Maria and Radamel Falcao to the ranks.

However, United's executive vice-chairman, Ed Woodward, hailed the appointment of manager Louis van Gaal as a "new chapter" for the club.

"We are very proud of the results achieved in fiscal year 2014 as we once again generated record revenues," he said.

"With Louis van Gaal at the helm as manager and the recent signing of some of the world's leading players to further strengthen our squad, we are very excited about the future and believe it's the start of a new chapter in the club's history.

"Louis' footballing philosophy fits very well with Manchester United and he has an impressive track record of success throughout his career, winning league titles with every club he has managed."