Arsenal have reported a loss of £3.4m ($4.7m) in their latest quarterly financial results, a result of "a reduction in transfer profits", but the club boasts healthy cash reserves of £135.9m. The Gunners suffered a minor hit during the six-month financial period until 30 November 2015, coming after the signing of Petr Cech from Chelsea during the summer transfer window.

Arsenal revealed in Friday's announcement turnover increased by almost £10m to £158.0m from 2014's figures, largely due to the growth in Champions League broadcasting revenue and the club's commercial activity.

Profits on the sale of players fell dramatically after a relatively quiet summer transfer window, a figure that amounted to just £300,000 compared to the £26.4m in 2014.

The £135.9m in cash reserves does not include designated debt repayments and the club expect to build on that with the significant increase of Premier League broadcasting revenues, which will come into effect at the start of the next financial year.

Arsenal's chairman Sir Chips Keswick believes the club's significant resources and sound financial stability should ensure a strong title challenge, with the club currently sat third in the Premier League, two points adrift of leaders Leicester City.

"This has been an unpredictable Premier League season thus far. What is important is that we are in contention and I am sure we have the resources and ability within the squad to sustain a strong challenge.

"The end of season run-in is going to be an exciting one and I am confident we will be very much at the centre of the action.

"We continue to see robust growth around our commercial revenues and build our support globally through our marketing and media channels. The result for the period has been impacted by a reduction in transfer profits but this reflects the overall stability we have within the squad which, in my view, is a positive factor for the club."