Debts at the Emirates Stadium club have fallen by almost £130m
Arsenal have announced that profits have risen to £35.2m and debts have been drastically reduced.
Pre-tax profits for the six months to the end of November 2009 increased by more than £10m from the figure for the same period during 2008.
Debts at Arsenal Holdings, the Gunners' parent company, were slashed from £332.8m to £203.6m.
Arsenal's non-executive chairman Peter Hill-Wood said part of the "surplus" cash would be used on the squad.
Hill-Wood added: "How we will use it remains undecided, but in addition to investing in the team I think we will examine the investment in club projects and infrastructure, both in and around the Emirates Stadium."
Sales of 261 new apartments at Highbury Square - the north London club's former ground - raised £96.6m.
The club also stated the first stage of investment in the Emirates, where they played their first competitive game in 2006, had been completed and reiterated the intention to re-sign first-team players on long-term deals.
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