Birmingham City's chairman has pledged to splash the cash to pursue the club's dream of European football.
David Sullivan said the club would continue its "strategic investment" in the squad as it reported an 81 per cent increase in pre-tax profits.
New recruits could be coming to St Andrews with the opening of the summer's transfer window.
Manager Steve Bruce is thought to be looking to add at least another striker, midfielder and defender to help Blues push for a European place next year.
In the six months to February 28, the club managed to increase profits from £3.2 million to £5.8 million.
But Mr Sullivan warned its lower league position and reduced television money meant its full year income would drop by approximately £1.8 million from 2003/04.
He said: "While we remain aware of our responsibilities to keep the club financially stable we are determined to improve the squad to ensure our continued progression."
The performance came on the back of a 7.8 per cent rise in turnover to £24.4 million.
Combined match receipts and league distributions increased by 22 per cent to £10.9 million while commercial revenues were up by £521,000 to £4.4 million, an increase of 13.4 per cent.
But media income fell to £9.1 million, down by 7.3 per cent, which was a combination of the reduced rate of fees paid for television appearances and fewer television appearances for the club.
The club's wage bill rose 20.5 per cent to £12.5 million, a figure Mr Sullivan expected to see rise, with the acquisition of Jermaine Pennant and Walter Pandiani.