Arsenal have reported a post-tax loss of £3.4m for the six-month period to the end of November.

The modest deficit compares to a profit of £6.2m for the equivalent period in 2014, mainly due to a reduction in transfer activity, although the club still boasts healthy cash reserves of almost £136m.

Club chairman Sir Chips Keswick said of the results: "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."

Arsenal are just two points off the pace in the Premier League and remain in contention for an unprecedented third consecutive FA Cup win, but face an uphill battle to remain in the Champions League after losing 2-0 to Barcelona at the Emirates in the first leg of their last-16 tie.