Birmingham City FC owners warn of ‘significant loss’ as club revenue plunges
THE owner of Birmingham City Football Club has warned its shareholders that the business faces a “significant loss” for the financial year ended June 2014.
Birmingham International Holdings, in a statement to the Hong Kong Stock Exchange, said the loss was attributable to a decrease in revenue from the Championship club and a reduction in transfer fees.
“According to the group’s unaudited management accounts for the year ended June 30, 2014, the group’s revenue decreased by approximately 17% and the net loss attributable to shareholders increased by approximately 20%, as compared to respective figures for the year ended June 30, 2013,” said the statement.
These figures have yet to take into account any potential increase or decrease in the value of the outstanding convertible bonds – set at HK$358.5m (£27.55m) as of June 30, 2014.
“The valuation of the outstanding convertible bonds is currently being reviewed by the company and its auditors, which could potentially affect the net loss figure materially in due course,” it adds.
The statement concludes rather ominously, by stating: “Shareholders and potential investors are advised to exercise caution when dealing in the shares of the company.”
With the club only managing to cling onto its Championship status by the skin of its teeth at the end of last season, the latest announcement will do little to instil confidence both on the field and off for the current season, which got under way last week.
Rumours surrounding the potential sale of the club have dried up during the summer and potential bidders may be playing a waiting game until the latest accounts are released, which is expected to be next month.
In March, former majority shareholder Carson Yeung was jailed for six years in Hong Kong after being convicted of laundering HK$721m (£55m).He has lodged an appeal against the conviction.
