Arsenal announce record profits

The group in charge of Arsenal Football Club has announced record after-tax profits of £35.2 million, thanks in part to the sale of apartments at Highbury Square.

Although the group confirmed match-day revenue had increased to more than £100 million (up from £94.6 million in 2008), the substantial profits generated by the club come thanks to an income of £88m from Highbury Square property sales this year.

The development, which is being built on the site of Arsenal's old ground, contains 655 private apartments of which 208 have now been sold at a profit of £7.8m.

The group's total turnover increased from £223m in 2008 to £313.3m this year, reflecting the club's progress to the semi-finals of both the Champions League and the FA Cup as well as the property development.

Arsenal's non-executive chairman Peter Hill-Wood said: 'The group's profits have now risen in each of the three years in which Emirates Stadium has been our home.

'This is excellent news although I should perhaps stress that making and reporting profits is not in itself the primary objective for the directors.

'First and foremost we are supporters of this great football club and, as such, our main goal will always be the achievement of success for Arsenal on the field. The group’s profitability is important because it is a by-product of running the club as a solvent and successful business, which in turn allows us to maximise the level of investment in the playing staff and in the future development of the club.'

The news of Arsenal's increasing profits means the Gunners' outstanding loan has been reduced to £47 million while agreement has been reached on refinancing the borrowing and extending the repayment term in December 2010.

And chief executive Ivan Gazidis said the club is 'superbly positioned for the future'.

'Clearly, the club already has a first-class stadium, an excellent world-wide reputation and outstanding core support,' he continued.

'Football is a hugely competitive and fast-moving business and we must ensure that Arsenal is not just keeping pace but setting the pace, both on and off the field.'

Gazidis added: 'I am tremendously excited about the opportunities we have ahead of us.'