Arsenal are back in black

Arsenal received a massive boost today when their accounts revealed a £4.5million profit last season.

After months of speculation over the club's financial position, today's figures are a major improvement on the £22.3m loss for the previous year.

Arsenal remain committed to moving to a new stadium at Ashburton Grove but mounting costs have seen the £400m project put on hold. They still intend to move by 2006.

The delay - along with £94.6m spent on the stadium and relocating local businesses - has contributed to a rise in Arsenal's overall debt from £42.7m to £45.8m in the last six months.

However, the stadium project is starting to reap some reward, making a £3.3m profit from its property development business last year. The club completed its first property sale - for £13.8m - since the start of the scheme.

Arsenal's turnover rose 29 per cent to £117.8m from £90.9m the previous year. This was achieved despite a quiet period in the transfer market which saw the club pay out less than £7m in fees on Gilberto Silva, Pascal Cygan and Rami Shaaban.

Chairman Peter Hill-Wood said: "The development of the new stadium is important to the long term success of the group and we are vigorously progressing on all of the issues."