Following a �100,000 loss in 2003/04, the RFU saw its total revenue increase from �72.3m to �84.8m.

"Following the losses incurred due to the impact of the 2003 Rugby World Cup, the RFU returned to profitability," said financial director Nick Eastwood.

"This gives us a solid foundation from which to undertake the construction of Twickenham's South Stand project."

RFU chief executive Francis Baron added: "We have been able to distribute a record amount of �18.9m to member clubs, an increase of 16% on last year.

"In addition, the Rugby Football Foundation has invested �1.6m in club development projects...and a further �7m has been raised from other sources for investment in the community game."