The audited annual accounts for Bradford Teaching Hospitals NHS Foundation Trust show the organisation ended the 2007/08 financial year with a surplus of almost £1.9 million.

And the healthy financial position is continuing into the new financial year with the Trust – which manages Bradford Royal Infirmary and St Luke’s Hospital – reporting a surplus of £469,000 as of May 31, ahead of a planned surplus of £440,000.

The Trust plans to deliver a surplus of £2.7m at the end of this financial year.

Ian Looker, of the Trust’s external auditor PriceWaterhouseCooper, told a meeting of its board of governors how impressed he had been by the quality of the finance team at the trust, which handled an annual income of £258 million.

He said: “It was a solid financial year for the organisation with a surplus of £1.88 million and an unqualified audit report at the end of it.”

Director of finance Bryan Millar said the Trust had a financial risk rating of four from independent foundation trust regulator Monitor, on a scale of one to five, with five being the best. A rating of four means Monitor has no regulatory concerns about Bradford Teaching Hospitals.

Mr Millar also moved to reassure the board of governors the Trust’s healthy financial position was not under threat from the rising cost of fuel.

“We have planned significant provision for increased fuel prices,” he said. “We feel confident that the provision we have made is adequate and we have the best deal and are providing it as prudently as we can.”

The Trust’s two largest internal groups of volunteers, the Friends of Bradford Royal Infirmary and the Friends of St Luke’s, also continued to provide significant financial support to the two hospitals throughout the financial year 2007/2008.

The Friends of BRI gave the hospital a total of £40,265.98 for a variety of equipment to enhance the patient environment and improve care, including a non-invasive ventilator for A&E and curtains for ward one.

The Friends of St Luke’s provided £57,361.95, including £9,282.94 on new cleaning equipment and £450 for a projector to use as a distraction for children undergoing examinations.