Celtic's interim financial results showed they reduced its bank debt by £2million to just over £7m during the second half of 2011.
Hoops chairman Ian Bankier spoke out to reveal that boss Neil Lennon has been handed the funds to bolster his squad at Parkhead despite a disciplined approach to the club's finances.
And, the fact Celtic's turnover increased by 3.1 per cent to £29.3million during the six months to December 31 while the Bhoys made a pre-tax profit of around £180,000, shows their methods are now coming to fruition.
Bankier confirmed that their profits from player transfer activity dropped to £3.15m from £13.2m 12 months earlier, but other factors such as the near £1m picked up from their Europa League involvement has helped boost the financial situation.
He said on the Celtic website: "Our period-end bank debt of £7.05m is around £2m less than at the same time last year, and remains manageable, and well within the club's facilities."
Operating expenses rose in line with turnover while Bankier predicted a similar trading pattern in the first six months of this year.