Birmingham Sports Holdings today confirmed in an announcement to the Stock Exchange of Hong Kong a warning of a substantial increase in loss in the interim accounts which are due to be published at the end of February.
Recently released accounts for Birmingham City Football Club make for some grim reading. While performances on the pitch have meant that the team have seen their league position drop into the bottom three, the amount of money spent by the club has rocketed ensuring that the club made a loss before taxation of £16.395million.
Birmingham Sports Holdings filed their accounts for the twelve month period ending June 30, 2017 yesterday. They confirm that the company made a loss of HK$182million (approx. £17.4million), more than triple the loss for the previous year.
Birmingham International Holdings today confirmed that they expect to record a substantial increase in loss for the year ending June 2017. The increase of operating costs including spending on player’s registration and player wages was largely blamed for the increase.
Birmingham City were exceptionally busy in the transfer window, with 14 players coming into the club while the same number left on loan and permanent deals. With all that action going on, how much money did the club spend and is it likely there is much more available?
As announced to the Stock Exchange of Hong Kong, the board of directors of Birmingham International Holdings will meet on Monday February 27 to discuss and approve interim accounts for the company for the period ending December 31, 2017. While the announcement of a profit warning gives us some idea of what those accounts will look like, the bigger question is if the finances of the company will be the only thing discussed at board level.
The accounts for both Birmingham City and it’s UK parent Birmingham City PLC have been made available at Companies House this week. Both sets of accounts are essentially the same (as BCFC is 100% owned by BC PLC and it’s sole asset) and paint a stark picture of how much trouble BCFC would be without the investment of Trillion Trophy Asia.