Arsenal FC Hit By Property Slump

Sales from the redevelopment of Arsenal's old Highbury Stadium have been hit by the economic downtown, taking the edge off the club's encouraging half-year financial results announced Thursday.

Figures for the six months to November 30, 2008 showed the club made pre-tax profit of £24.5m, up from £20m for the corresponding period a year earlier, however slower than expected sales of the apartments built on the old Highbury site have prompted the club to consider extending its loan with the bank.Construction of the 186 apartments, valued at £76.7 million , is close to completion with sales of £58.1 million so far.

The 2006 move to the 60,000-capacity Emirates Stadium continues to underpin the club's profitability with matchday turnover up £3.3million to £44.4million, while broadcasting revenues rose £4.5million to £28.9million.

Arsenal chairman Peter Hill-Wood said,

"We are closely monitoring the position with a view to ensuring, as we always have done, that the group is on a robust footing and ready to respond to any challenges this exceptional economic climate may bring...The U.K. property market has been particularly affected by the economic downturn and, inevitably, this has had an impact on the group's own property development activities in the period."