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Birmingham City losing £1m a month

News comes ahead of annual results as Hong Kong-listed parent company announces profit warning

Xavier Itter/Newsteam
Birmingham City FC

Birmingham City's cash-stricken Chinese owners are losing an astonishing £1 million a month.

The steep losses have plunged Hong Kong-based Birmingham International Holdings even deeper into the red - piling up a cash deficit of around £12 million in one year.

A 20 per cent increase in the shortfall has pushed BIHL into the £1 million a month losses bracket - with no sign of any agreement over a sale of the club.

The rising losses, revealed in a profit warning announcement to the Hong Kong Stock Exchange, will raise concerns over Blues' budget with the new season only days old.

BIHL said in a statement: "The board wishes to inform the shareholders and potential investors that, based on the preliminary assessment of the group's unaudited management accounts, the group is expected to record a significant loss for the year ended June 30, 2014.

"Shareholders and potential investors are advised to exercise caution when dealing in the shares of the company."

The statement said the losses were due to a "decrease in revenue generated from the company's principal business and decrease in profit generated from sales of player's registrations".

"The group's revenue decreased by approximately 17 per cent and the net loss attributable to shareholders increased by approximately 20 per cent, as compared to respective figures for the year ended June 30 2013," it added.

The statement stressed that the profits warning was based on unaudited figures and the 'actual results' could be 'different from what is disclosed herein.' The audited results will be issued next month.

BIHL's results for the year to the end of June 2013 were delayed until the end of November last year, revealing losses of around £10 million.

At the time, football finance expert Peter Knowles said: "Their expenses are higher than their income.

"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 funds."

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