Often Partisan

BIH Release Accounts

Birmingham International Holdings have released their accounts for the year ending June 2013 to the HKSE.

The accounts which are two months overdue, have been qualified with a disclaimer of opinion and show an operating loss of circa £10million. The auditors have said that they cannot sign off the accounts due to issues surrounding money owed to Vico Hui and the fact that they cannot confirm that the company is a going concern – something highlighted by the total liabilities outstripping the total assets by a quarter.

The accounts also confirm that there are no plans to dispose of Birmingham City Football Club.

The disclaimer of opinion will be a blow in the efforts of the directors to get the company relisted and it will be interesting to see how this affects the fundraising efforts made in recent weeks. A more detailed synopsis will be on the site tomorrow.

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76 Responses to “BIH Release Accounts”

  • Chuck Norris says:

    LONG OVERDUE HOPEFULLY WILL BRING THE SALE OF THE CLUB

  • des says:

    I said this yesterday, it would be impossible for accounts not to be qualified! think this will derail plan to relist BIHL. How the hell did we get such idiots in charge. Always remember when old board left people going mad about Karens golden handshake! she deserved it times ten!!! PP pays himself four times her salary and between him & CY are heading towards oblivion!

    KRO

  • chris says:

    So a loss of over £10 million which i presume is pre Redmond and Butland sales??
    Those sales only brought in circa £5 million so still a major loss.
    Who do we owe this money (loss) to?
    Will it mean more sales in January?
    As you say Al, will it kill the loan deal dead, will the underwriters now pull out of this deal?
    Why would anyone invest in a company where yet again the auditors have cast doubts over the company by issuing a disclaimer.

  • chris says:

    OR,
    is the £10 million loss including the money BCFC owes Yeung which is now on the verge of being removed from the balance sheet, so leaving the company and BCFC with no debt and maybe even a small profit?

  • Karl says:

    aaaaaaaaaaaaaaaarrrrrrrrrrrrrrrrrrgggggggggggggggggggggghhhhhhhhhhhhhhhhhh.
    Administration please, please, please hurry up so we can move on. Confirmed losses and no more assets except probably Burke, Randolph & Hancox left. Toatl for all 3 is probably less than a million!!!
    Surely we are going that way and I genuinely it will be a relief for most fans!!

  • Art Watson says:

    Quote-“The auditors have concerns about the groups ability to continue as a going concern”

    Sums it all up nicely for me and maybe the owners will now be forced to sell or administration seems a certainity.

  • chris says:

    Our turnover has drastically been reduced from 39 million to 23.5 million by not being in Europe, not having big player sales and the halving of the parachute payments to £8 million.
    It says we owe Directors £14 million which i presume is our debt to Yeung and his banks.

  • chris says:

    Take away Yeung’s loans which we owe and the accounts are at the break even point which means no admin and no sale.

  • Frankie says:

    Scandalous really.
    I cannot for the life of my work out WHY we ‘owe money’ to Yeung.
    WHY also is this ridiculous company allowed to trade ?
    It is merely a conduit for ‘re-distributing’ money anyway.
    It produces nothing and should be’canned’.

  • chris says:

    We paid out £22 million in wages and pension contributions excluding director’s and chief executive’s emolument.
    As far as i can see it doesn’t say how much the director’s and chief executive’s were paid?

    I see BIHL got no income from Hong Kong so the club must now be around 99% of BIHL?
    I believe we had most of the transfer money (6.7 mill) in within 30 days which is no doubt why players were sold cheaply.

  • andy says:

    God what a mess, Paladini will either be laughing or crying at this latest announcement.

  • Atahualpa is a BlueNose says:

    How long can this company continue to claim that “things will be alright”?

    They owe over 120% of what they are currently worth. The revenue of the club will be significantly down during the current financial year. There is probably no hope of us being promoted any time soon which would be the only realistic way to boost income significantly; we can’t sell anyone for £1m plus in my opinion. There is no other avenue at the club for raising funds. CY has a date with destiny soon and she’s not looking to healthy and bright at the moment.

    To keep trying to raise loans and IOUs, how and when will BIHL pay them back?
    Why does CY feel he’ll get his money back from this sinking ship that he loaned to Blues?
    What is it that these “investors” who I am sure are business people in their own right, see in this floundering company and promise to make further finances available?

    If they are not re-listed and old CY is given his towel, soap and bunk, what direction will they take and do they have a back-up plan/option of sorts?

    What is the tipping point to say enough is enough and let’s sell the club to any realistic bidders for a realistic price?

    In the midst of all this uncertainty, it’s impossible to try and focus solely on on-field matters.

    • Art Watson says:

      Yes and on top of the chaos they still expect the fans to turn up in their thousands to support the club with their hard earned money.

      I still maintain that boycotting the matches is the only way forward!

      The owners are a complete joke!

      • almajir says:

        Art – hate to say this but look in the accounts and see what proportion of the money is from match receipts … remember that the majority of that comes from season ticket sales and you will see how pointless a boycott is right now.

        • Art Watson says:

          Almajir,

          Yes I understand but they can’t keep on borrowing money just to survive because as you know loans have to be paid back with interest.It seems to me that the group is trading very close to the edge and perhaps a boycott will piss them off and a quick sale will follow.

          • almajir says:

            Well, whatever boycott is happening right now REALLY seems to be working, they seem to be under immense pressure to sell…

  • Jaffa says:

    Al,I thought these accounts were due out on Friday.

  • Chris W says:

    Look forward to your synopsis Dan, but doesn’t look good to me, not if we need to be re-listed for any sale or investments to materialise.
    I take it that the recent reported changes are not included in these figures along with CY’s debt that was written off, though the do mention the recent loans that BIHL took out.
    KRO+DNM

  • andy says:

    With gates of around 14,000 every game, less than half the capacity, im sure the majority are boycotting games.

  • Peter bates says:

    So club not for sale cy must know something nobody else knows must be oil under the ground or does he know he is going to walk free from trial what spurs this man on kro

  • BeeGeeBlueBoy says:

    1/

    CY’s loan does not affect the P&L. It is a balance sheet item which will improve cash flow by £10m.

    2/

    Does anyone think that U-Continent didn’t know these results and the auditors qualification. Well if they don’t pull out in the next 24hrs and say they were misled the question is why? IMO the answer is that they are not concerned whether there’s a listing or not. They are after keeping BCFC and snaffling up CY’s shares when the opportunity arises. So we are in another takeover scenario. In the meantime they need rebuild BCFC to be saleable to make all the effort worthwhile. Whether that means we need to be a Prem team, we’ll see

    • almajir says:

      BG

      I will repeat, having spoken to close associates of Yang Yuezhou I am sure he has no interest in the club.

      Have you spoken to Mr Yang?

      • Mickey07 says:

        Absolutely shocking if that’s true….the club will be going to nowheresville for years to come with these Chinese,but what’s going to be done??absolutly jackshite and there’s feck all we can do about it…gotusbythebollocks.com.

      • BhamCityJulian says:

        With respect Dan they don’t have to reveal their true intentions to you. If there is something they don’t want to reveal then they won’t, even to you.

        Did you swallow all the season ticket selling player signings from David Sullivan. I’ll bet you didn’t

        • almajir says:

          With respect Julian I think I know a bit more about what is going on than you do. Have you ever considered I don’t (or can’t) publish everything I know?

  • Glosbigblue says:

    Dan, as you said yourself yesterday – the accounts are just a snapshot as at June. I believe all of the actions announced in recent weeks are exactly designed to a) fix the problems and b) position BIHL to move off in a different direction. BCFC will I am sure be sold piecemeal as again suggested in your blog suggested yesterday. So, it’s as we were and I await further news regarding disposal.

  • mark says:

    sorry Daniel what time was bIHL meeting on Friday……………..

  • Glosbigblue says:

    Cheers Chas – I’m more Cheltenham way. KRO

  • John says:

    The auditors said they” cannot sign off the accounts” and they cannot confirm” the company is a going concern”. It is a going concern,its going backwards and its a concern to us supporters. Like ive said before, for supporters to buy shares in the company,while these people are in charge,would be at best foolhardy, at worst,the height of stupidity. I wouldn’t trust these directors,as far as i could throw them.

  • bluenoseb says:

    What are carsons next realistic options that are available to him now? If as seems very likely that the shares wont get relisted, with the impending court case conclusion which seems to be heading to only one verdict, and on top of that we havent got any individual talent in the squad worth more than 500k in my opinion, which we wouldnt receive full value for anyway as everybody would no our plight. Is this his last throw of the dice or is it again diving in head first with your eyes closed with no plan b (bit like offering the zigic contract) and as result he is not bothered about the consequences if this last plan fails? I mean is it a case of all or nothing with him now or something else entirely ?????

  • bluenoseb says:

    What are carsons next realistic options that are available to him now? If as seems very likely that the shares wont get relisted, with the impending court case conclusion which seems to be heading to only one verdict, and on top of that we havent got any individual talent in the squad worth more than 500k in my opinion, which we wouldnt receive full value for anyway as everybody would no our plight. Is this his last throw of the dice or is it again diving in head first with your eyes closed with no plan b (bit like offering the zigic contract) and as result he is not bothered about the consequences if this last plan fails? I mean is it a case of all or nothing with him now or something else entirely ?????

    • almajir says:

      I think people have missed the fact that it says that there will be no full disposal of the club. I believe he wants to sell 1/4 of it… and it will be sold to another Chinese consortium

      • Mickey07 says:

        Who’s the other consortium?

      • bluenoseb says:

        But if they fail to get the shares re listed and the HKSE imply that their not likely to as its not a going concern, what would be the point in keeping 3/4 of the club that he cant contribute to financially and will only lose more value the longer he holds on to it unlisted. Then the other side of that coin is who is going to buy a 1/4 of the club that knowing if the shares cant get re-listed they could still go into admin anyway and lose the money they invested for their quarter of the club.

        Basically it was said hes holding on to blues to get the shares relisted but if this avenue is exhausted then he no longer needs to hold on, does he?

        • almajir says:

          If a quarter of the club is sold that’s HK$100million into the coffers (at the price they want) and the company is a going concern again… which they will no doubt point to the HKSE…

          • bluenoseb says:

            After they have sold the quarter could the HKSE still say no to the re-listing though even after the investment. If they can there’s a lot of if n buts for the buyer of the 1/4 of blues to take a punt on in way, which if thers no guarantees then its just a gamble on what carsons telling them really. In a way i hope the shares dont get relisted and carson is forced into getting rid of the club (full disposal) once his court case has come to a verdict, due to no investment.

          • almajir says:

            Of course they could.

            I wouldn’t bank on a quick sale. I really wouldn’t.

        • Blueboy88 says:

          Thats a good question, because I understand U-Continent Holdings Ltd loaning BIHL money
          for general working capital purposes , & I understand Yang Yuezhou wanting the listing carcass that is BIHL for his own business requirements. I also understand he is not interested in BCFC.

          But I don’t understand how him only owning 25% of a totally skint BIHL
          assists him in any way at all ?

          So the only other conclusion is that he will bide his time ready with a suitcase of cash before making a move for a full takeover of BIHL .

          • almajir says:

            You don’t need to fully take over a company to run it. Carson has never owned more than 26% of BIH and he’s run it…

          • BhamCityJulian says:

            Exactly BlueBoy. He has an ulterior motive which in my opinion is to get CY’s shares

          • almajir says:

            No he doesn’t Julian, he doesn’t need them – if anything, the LAST thing he wants is to go over the 30% threshold.

          • Blueboy88 says:

            CY owned 30% of BCFC & was completely sidelined..

            Share Ownership & Management Control are two completely different things

            So i repeat I don’t understand how Yang Yuezhou only owning 25% of a totally skint BIHL
            assists him in any way at all ?

          • BhamCityJulian says:

            The more his loans get converted to shares the more is the likelihood he will want to exert control over BIH. To be sure he’ll need enough shares to win a vote against CY

  • Blues girl says:

    How is the trial going almajir?I’m really totally lost on where we are now financially.It’s so absolutely confusing.I just want it all to be over!

  • George says:

    The accounts throw up some interesting facts. Values in HK$ millions. £1 is worth around HK$12

    Nett worth (99m) negative. Less CY cancelling his 190m loan = 91m nett worth

    So the problem is re-financing successfully and cash-flow. Main asset value is the ground @ 271m

    The directors claim to be able to keep going until June 2014 providing the present financial plan works. If the plan does not work (section 2) they will write down the assets to recover money to pay off liabilities. Ie sell the ground. Well done the Blues Trust in giving us some breathing space, but I guess the ground may be sold regardless if the club was in administration.

    They are still chasing the sponsorship missing money and there is no clear documentation on the 5m loan to Vico. If the Vico situation is stopping the accounts being signed off why has it not been the case for the last two years?

    The auditors are being paid 2m and there are 25m in-house finance costs. So lots of expensive advice being taken.

    There has been a 40% turn down in revenue but only 13% reduction in operating costs

    The admin costs have increased by 8m. What’s hiding in there?

    The bank position is good at 50m but there are borrowings of 178m, so can the loans be called in early? Any debentures on the various loans would give the lenders preferential rights if the club was in administration. Maybe the ground is security for the loans?

    I see CY signed off the latest accounts. Who will take over if he loses his case?

    BIH may well be valuable as a listed HK company but if the re-listing does not work the financial plans do not work and Blues will be sold off cheaply and maybe lose the ground via administration.

    This will not drag on for much longer.

  • DoctorD says:

    I like how Blackpool are mentioned in the accounts for us not getting promotion in May 2012. Yup, blame the Seasiders.

  • Bluenosesol says:

    It is looking like Carson wants to sell a minor proportion of the club to support medium term liquidity. He then hopes to win his case or at least avoid incarceration and final siezure of his assets. He then becomes a free man with available cash and kick starts his plans to quickly revive the club’s fortunes?
    It could be true, but I was quite old when I realised there wasn’t a Father Christmas!


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