Chelsea FC plc today (Wednesday) announced that as of its year end 2009 virtually all outstanding debt has been converted into equity and the company is now effectively debt free.

The group also announced reduced losses for the fourth consecutive year.

The group results reveal that following previous conversions of half of the debt, the remainder of the interest-free loans from the parent company, whose ultimate controlling party is Roman Abramovich, have been converted into equity making the group effectively debt free.

This demonstrates the continuing commitment from the shareholder to the group.

The results also show losses decreased by £21.3 million.

And disciplined management of capital expenditure has reduced the cash spend from £107.4m down to £16.9m.

Revenues remain stable despite the economic climate and reflect the strength of the team, its continued success and the attractiveness of the FA Premier League allied with the continued allegiance of our fans and commercial partners.

The main figures:

- Group turnover was down from £213.1m to £206.4m

- Turnover was generally flat. The small year-on-year reduction reflects the front-loaded nature of certain sponsorship revenues

- Loss for the financial year reduced from £65.7m to £44.4m

- Remainder of shareholder debt of £340m was capitalised

- Net capital expenditure reduced from £85.1m to £4.2m following the completion of major capital projects such as the training centre at Cobham

- Cash outflow reduced from £107.4m to £16.9m

Chelsea chairman Bruce Buck said: 'The club's debt load has been reduced almost to nil in order to provide more long-term stability for the club.

'The reduction will also enable the club to comply with any regulations on debt levels which are being discussed by the football community.'

Chelsea chief executive Ron Gourlay said: 'It is still our aim to be self-sufficient and we will achieve this by increasing our revenues as we continue to leverage off our brand. We are reducing our costs by controlling expenses, including salaries and wages.'

The results include exceptional items of £12.6m related to compensation payments to a first team manager and three coaching staff.