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Birmingham City FC parent firm BIHL posts £10m loss

Overdue accounts for Hong Kong based Birmingham International Holdings.

The BIHL accounts announced there was still no plans to sell Birmingham City FC

The parent company of Birmingham City lost around £10 million for the year to the end of June 2013.

The losses, which had been widely predicted, were disclosed in the two months’ overdue accounts for Hong Kong based Birmingham International Holdings Ltd.

The delayed accounts also reaffirmed that there are currently no plans to sell Blues despite many months of feverish takeover speculation surrounding St Andrew’s.

In an announcement to the Hong Kong Stock Exchange, BIHL announced losses of around 118,760,000 Hong Kong dollars, or around £10 million.

The release of the accounts come just a week after Carson Yeung’s potential exit from Blues moved a step closer, with the writing off of a £15 million loan in return for an increased stake from 26.31 per cent to 27.63 per cent in BIHL.

But football finance expert Peter Knowles said the parent group was effectively a shell, and was insolvent.

“Their expenses are higher than their income," he said. "The only view that I can take is that the holding company is not a going concern unless the brokers in Hong Kong are able to raise additional funds.”

BIHL said in a statement: “The condition indicates the existence of a material uncertainty which may cast significant doubt on the Group’s ability to continue as a going concern and therefore that it may be unable to realise its assets and discharge its liability in

the normal course of business.

“Nevertheless, the directors of the Company are of the opinion that the Group will have sufficient working capital to meet its financial obligations as and when they fall due for the next 12 months.”

On the sale, BIHL said: “The Group was approached by some prospective buyers to explore the possibility of purchasing BCP Group (Birmingham City Plc).

“No binding agreements have been reached. As detailed in the announcement of the company dated October 22 2013, the directors of the company stated that there was ‘no immediate plans to dispose of a controlling equity interest in BCP and/or BCFC.”

 

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