THE Royal Shakespeare Company has announced strong financial results for the second year running.

Launching its annual report and accounts for 2004-5 at the company's annual meeting, the RSC announced an operating surplus for the year of £1.7 million - the second consecutive year a surplus has been achieved.

Since Michael Boyd took over as artistic director in 2003 and sustained and improved financial control has more than eliminated the cumulative deficit of £2.8 million Boyd inherited.

The 2004/2005 annual report presented to the RSC governors shows better than anticipated income and well controlled expenditure.

The strength of this year's operating surplus, coming on top of a £2.4 million surplus in 2003/2004, has enabled the company to set aside £3.6 million to cover the costs of The Complete Works festival, which takes place from April 2006 to April 2007.