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Birmingham City File Operating Loss of £9mil for Year Ending 2013
Birmingham City FC and it’s UK parent company Birmingham City PLC have both filed their accounts with companies house for the year ending 2013 today. The accounts show an operating loss of £9.1mil on a turnover of £24.2mil despite player wages being cut by £2.2mil per year.
What is more concerning is that the auditors have once again given a disclaimer of opinion on the accounts, citing the lack of audit evidence that the club will be able to raise the money needed to keep it a going concern. The directors have confirmed that they are looking to borrow £5.4mil against future income streams to add to money being raised in HK by Birmingham International Holdings. Whether this means that the club intend to factor its final parachute payment due next season of £8mil isn’t disclosed.
The accounts confirm only one director received a salary from Birmingham City – but again doesn’t specify who this director was; however director’s pay was reduced from £687,611 last year to £389,620 this year and if this sum was paid to Peter Pannu that will be part of the near £1mil outlined in the group accounts rather than in addition to it.
Whilst it’s pleasing to note that BCFC doesn’t owe the bank much (just £112,692), Blues were forced to pay out over a million pounds in interest in other loans last year – something that cannot be helpful at a time when cashflow is struggling. Blues have loans of £20mil outstanding outside of the parent company and the bank and with £15mil owed to Carson that means £5mil is owed elsewhere on top of that.
As I am not a trained accountant these figures will need some investigation by someone with more knowledge than myself and I hope I will be able to add to what I can deduce soon on the blog.
Tags: Accounts, Peter Pannu
A
Not wanting to pay to do a search unless I have to. Have you information on the Net Asset Worth of the club?
Best
GBS
I’d like to share them publicly but I’m not sure of the legality on that so I am refraining from doing so.
Fixed assets are given as 151,667 and Intangible assets are given as 12,800,928 for a total of 12,952,595
Does that help?
It’s a public company so the accounts are freely available
Despite its name BCFC PLC’s shares are no longer listed on an exchange, so its now a private company. BIH is a public company,
If you cough up £1, the club’s accounts are available from http://wck2.companieshouse.gov.uk//wcframe?name=accessCompanyInfo. You may find them free from other company info sites shortly.
Actually, you have to pay a quid Julian so I’m being cautious.
Fair enough
Its negative I believe
I thought the 15 million owed to Carson was turned into BIHL Shares ?
richard66
No, its been proposed with no date of when it will actually happen…
and is fully dependant on Relisting isnt it Dan ?
I think it’s fully dependent on the shareholders, the stock exchange and the judiciary okaying it.
So without Ziggy’s wages we might just scrape through next year !!!
So how much will we sell Randolph and Burke for in January
Going on the board’s previous sales record… a million tops (for both, not each.)
Bang on! – but dont hold your breath. 500k the pair AND Pannu will accept it!!
Guys, these are worrisome numbers. The only way the club can show it is liquid if for Carson’s 15 mill to be converted to equity, and that’s probably why it’s on the cards. Dan’s figures show Assets of just under 13 mill and Liabilities of 20 mill…simply put; BCFC is 7 mill in the hole and getting worse.
BTW, my China hand mate says the only reason 2 People’s Republic party members might be appointed non-exec directors, is:
a) to save face and
b) Beijing has a financial interest in this imbroglio. It will be well-hidden but nonetheless there.
Agree with you AussieBlue. We are stymied. Where is the operating capital coming from over the next months, I suspect borrowing but at what rate? Very worrying.
CY has set up a strategy to provide BIH with sufficient finance through the convertible loans if re-listing is a success. If the re-listing fails then surely BIH will run out of money sometime in the next few months and administration will surely follow. However, CY could rescue BIH’s financial position if he sold BCFC, which it appears he doesn’t want to do at this stage. But, with the trial verdict coming at the end of February he is out of the game if he gets sent down. I think its s**t or bust for CY and he wants to hold onto Blues if can and hope for a not guilty verdict and still retain Blues. For the other shareholders administration will mean that they lose everything so they may prefer a sale of BCFC if a re-listing doesn’t happen, unlike CY loses all if he is convicted.
i thought Carson effectively wiped out his £15M debt a month or so back? thought he exchanged it for a greater percentage in BIHL?
No, as I said to another commenter it was only a proposal – like the rest of it. NONE of it has gone through yet, it all requires various approvals and in that case there is no actual date of when it would happen.
People (and this isn’t a dig at you) need to read things fully.
It would have been 8 million if pannu Hadn’t took a million for doing nothing
Just SELL for gods sake!!!. I just dont get it! ….you’ve got a wonderful car that you clearly can’t afford to run anymore (and you probably shouldn’t have got it in the first bloody place) so whats the point in leaving it to get rusty and rot outside your house!!.
I was reading an article about Cardiff in the Mail this morning.. and in the comments below, there was a person from Singapore who posted this:
“Tan Sri Vincent Tan will not spend alot of money on Cardiff,but will spend alot on gambling…..cos he chinese n chinese likes do business n gambling not own a football club….why he bought Cardiff? thats because he wanna showoff he got enough money to own a EPL club….show off only.”
http://www.dailymail.co.uk/sport/football/article-2524838/Malky-Mackay-slammed-Cardiff-chief-Simon-Lim-comments-new-signings.html#ixzz2nlptqI2f
Could Carson Yeung’s motives for buying the club have been the same? Ya never know.
Staffs it could be the case!!!. It’s not very positive news if that is the reason. Couldn’t he show off in another way that doesn’t impact negatively on 25’000-50’000 Brummies??.
Well, if it was an ego thing, making a complete and utter balls up of a sound, well-run club is nothing to boast about, dontcha think?
I doubt a guilty verdict has much impact on BIHL.
All that CY has to do is relinquish his directorship but I doubt he is in effective control of the company anyway so that will of no consequence. Infact it could help BIHL if CY was to step aside – that doesn’t necessarily correlate with BCFC’s best interests. I expect the capital markets would look on BIHL more favourable if CY was to step aside.
An unsavoury situation indeed.
BhamCityJulian is right….if these are accounts filed at Companies House then they are part of the public domain. No-one can have any cause for complaint as they are already deemed to be known by the public. Anyway £9m operating loss has to be covered with cash, which may be a problem as we haven’t got any long term…at least thought he ground is semi-protected, well done Blues Trust
I think what Dan is saying is that he’s paid £1 pound for him to read but it it doesnt allow him to republish. I think though that ‘commenting’ is ok
It’s probably me being thick, but does this £5.4m loan mean that they will pay it off from the last parachute payment, which I think is £8m. If they use all that parachute money to pay off the loan the interest equates to £2.6m. After that’s gone they’ve got nothing left to bleed out of the club, is that when they’ll sell or are they determined to run it into the ground?
Yet another week of bad news following bad news,
And the fans do nothing!
The only thing the fans can do is get behind the team unless someone has a cool £32M to offer CY to buy the club.
I’m not an accountant but all things considered we are not as badly off as we could be.
The £15m owed to CY can be wiped off when/if his debt is transferred to shares, that leave £5m we owe to A. N. Other,with assets off around £13m + £5m owed the club is worth £20M
I might be looking at this all wrong, but I think even Paladini would go to £20m to purchase the club
KRO+DNM
Yes and put more money into PP’s bank account .
No thanks.
http://www.bbc.co.uk/sport/0/football/25418135
Would this sound the death knell to a lot of clubs below the Premier League, or will it make the game a more level playing field?
Well i wonder what would have happen if we had not cut our cloth accordingly……………..so 9mil appears not to be too bad in the extreme circumstances imo……………….some one should get a pat on the back……………if this had not happen imo we have been gone forget about administration………..
http://www.bcfc.com/news/article/20131217-blues-snap-up-mcdonald-1241468.aspx? Daniel sorry could find where to put this we continue seeking and finding young players, short of money nah…….
sorry to be a pain daniel but 3,650 forest fans coming to stans on saturday please do a call to arms to bluenoses to get off their backsides for this match it as cheap as chips, so come on bluenoses unite,,,,,,,,,,,,,,,,,,,,,kro please dont let the team down bring your grandma if you have to…………………
sorry to be a pain daniel but 3,650 forest fans coming to stans on saturday please do a call to arms to bluenoses to get off their backsides for this match it as cheap as chips, so come on bluenoses unite,,,,,,,,,,,,,,,,,,,,,kro please dont let the team down bring your grandma if you have to…………………
Watford fan in peace here….while your operating loss is close to 10m you did get about 6m back in transfers so the actual loss on the season was only 4 million. Only 4 million, that sounds flippant and it is not meant that way. Compared to other clubs though it is not so bad … Blackburn £36.5m, Hull £25m, Burnley £8m have all racked up far greater losses and I think your visitors on Saturday have their own financial issues as well.
The problem I see for you is that you have few playing assets left to sell and less parachute money this season. So, despite slashing the wages I cannot see how you can avoid running up a sizable loss this current season. Even if you avoid administration that kind of loss could well fall foul of the new financial fair play rules for next season. Of course none of your losses are helped by the payments being made to those operating the club.
The other worry I would have is the overall size of your debt is considerable and I suspect it is more than the 24m quoted in the accounts. In which case you may be close to the tipping point.
Finally, be very affraid of future funding as well … that merely delays the inevitable, never avoids it unless that owners change. It did for Rangers in Scotland and it nearly caused Watford to go under about 18 months ago had our Italian owners not stepped in.
I hope you find a way to survive as it is not like the club has behaved like Portsmouth. While football rivalry is a good thing there are times when fans from all clubs should stick together more on matters like this.
I wish you well off and on the pitch.