English soccer champions Manchester United yesterday announced record annual profits and unveiled plans to launch a television channel in the latest stage of their rapid commercial growth.

Already regarded as probably the world's most profitable soccer club, United are teaming up with broadcasters BSkyB Plc and Granada Media Group to set up a pay TV channel dedicated to the club. The channel, the first of its kind, will launch in autumn 1998 on new British digital, cable and satellite systems.

United's pre-tax profit soared 79 per cent to £27.6 million in the year to July, as the club's fourth English league title in five years - and progress to the semi-finals of Europe's premier club competition - boosted sales.

United's share price slipped 8.5p to 672.5p after strong gains in recent days ahead of the results and on speculation about the TV deal. The club has a market capitalisation of around £440 million, making it by far the largest of Britain's floated soccer clubs.

United also said they were looking at ways of developing sales of club merchandise in the Far East, where the team has many fans who follow its fortunes on television.

The chief executive, Mr Martin Edwards, said United still had £8 million in their transfer fund, despite the £5 million purchase of Norwegian defender Henning Berg from Blackburn Rovers in August.

The TV channel - MUTV - will broadcast for six hours a day but will not be able to show premier league action, the rights for which have been sold to BSkyB under a deal which runs until 2001.

But United maintain that the channel, which will show friendlies, classic matches from the past, reserve team games and interviews with players, will prove a commercial success.

Most of the initial funding will be provided by Granada and BSkyB, with United adding their "name and brand" to the mixture.