Often Partisan

Accountants Jet In

Peter Pannu returned to Hong Kong just before the start of the New Year to resume his work with Birmingham International Holdings to look for a buyer for Birmingham City.

Whilst news of any prospective purchasers remains thin on the ground, there has been movement towards the parent company issuing their long-overdue accounts in the next couple of months.

JH CPA Alliance, who were appointed Auditors to BIH on December 11 are due to send a team of accountants to Birmingham in the next week or two, ostensibly to check through the BCFC books and financial information in order to properly finalise the accounts for Birmingham International Holdings.

Blues have finalised the football club accounts for the year ending June 2012 and have lodged the required information already with the Football League. The accounts are due to be available for public inspection via Companies House in the imminent future.

There is also some speculation that JH CPA Alliance will also be looking at current financial data for the club to return to Hong Kong with in order to aid Peter Pannu in providing future investors with up-to-date information on the club.

Once any accounts are available – for either BIH or BCFC – I will update the site with any information that I can.

46 Responses to “Accountants Jet In”

  • skareggae72 says:

    I am amazed that the FL actually have been submitted figures for one year,but of course Pannu needs to be in Hong Kong when the only genuine/energetic bidder so far is based in Solihull.

    • Blue in Spain says:

      You have evidence that Paladini is genuine? Well that is new!

    • James Black says:

      Ska, a venture capitalist with a dodgy record and plans to simply help others own Blues purely with a view to make a personal profit for themselves in the longer term, is not a good move for the club. Then when that happens, then no doubt everyone will be jumping up and down saying he should be more careful who he sells it too, just like many accused Sullivan. Kinda cant do right as seems people always accuse of doing wrong even when they doing right. Patience sir we are blooding kids and i think its a good thing and sooner than you think, a proper buyer with better prospects will come along.. I think for now the position we are in is forcing hands to do things like bring through the kids and i think in the long term we be all the better for it. Good things come to those that wait as no billionaire is going to turn us into Man City, and frankly i wouldst want that either so just wait and see. palidini would be a disaster for the club, better times are coming but not with him.

  • moseleystew says:

    Please do the wright thing mr Pannu and sell for the sake of the club and for the loyal supporters.

  • Julian Glass says:

    This is surely to prepared half year accounts independently of BCFC BIH to support the sale process. I think this is indicator that BIH want to sell sooner rather than later and there be a very interested buyer

    • swissjonny says:

      Julian,I agree.JH CPA Alliance would surely be a member of a professional international accountancy network or scheme and would therefore sub-contract out this type of mundane budget sensitive work to their UK associate? The fact that they are traveling and in haste indicates to me that something is up.Who audited the Football Clubs accounts that are going to be in the public domain shortly? If it was a credible organization it seems strange that JH CPA cannot liase with them to satisfy themselves as to the validity of the Football Clubs accounts.I guess that as they are new auditors to BIH they could feel that they should come and have a nose around just to protect themselves.All a bit odd though…

  • Mickey07 says:

    This is yet another cock up in a series of mistakes the Chinese have made in taken charge of our club,this should have been done 18 mths ago.an incompetent bunch of idiots.

    • James Black says:

      Mickey, as your comments are usually nonsense and just crazy comments from the dark recesses of your mind, i can only assume that maybe you had your sweeties stolen by a Chinese kid when you was little.

      • chris says:

        James your coments are nonsence and as for crazy, the truth hurts obviously.
        They have made mistake after mistake and to make so many poor business decisions they must be a incompetent bunch indeed.
        Truth hurts.

        • Julian Glass says:

          To not get the kit available for sale in the summer is a major cock up and every year too. Scandalous.

      • John says:

        James, I am amazed that you think Mickey’s comments area crazy. It is quite obvious that Yeung/Pannu are indeed incompetent, to pay £81 million for B.C.F.C. in the first place,was stupidity. Pannu as CEO of BIH,has seen his company,consistently fail to produce the annual accounts. He says he wants to know who Palladini’s backers are. Why ? It would appear no one is backing Blues at the moment, he himself says we have to sell players,to avoid going into admin. The club has sold players,got compensation for two managers,received parachute payments,sold advertising,money in through gate receipts,shirt sponsorship. Where has it all gone ?

        • James Black says:

          John So do i judge your household accounts on your income only? Do i not take into consideration your gas/electric/council taxes/transport costs to and from work/. Seems that you only see the incomes and take no consideration to the outgoings. The players wage bill is not only killing Blues but football as a whole. I never see anyone condemn overpaid players. What about training facilities, what about police bills, stewards, utilities, staff wages maintenance and much more. To run the floodlights for one game would be more than you spend in 2 years on electric at home. I’m saying that running a football club is not just about selling players and compensation payments for gone managers. The running costs are huge and Blues are not alone in struggling with that. Most of all players wages are disgusting and nobody is accusing the players of destroying the club are they? The accusations here go far beyond mere incompetence. Sure they made mistakes but if they had not of made the mistake of paying too much for the club in the first place then we would still be with Sullivan. I personally at the time shared their enthusiasm and it backfired when Carson was charged and we got relegated, please don’t forget that and they invested heavily and lost it all. The accusations are being made which goes far beyond incompetence and they are not accurate as the implications in the words of some are asset stripping. There are no assets to strip, its survival of the club only. I do not intend to belittle but i ask for people to see the whole picture and not simply stick the knife in for some mistakes but they have invested and lost. I don’t believe that makes them evil and all they are doing now is trying to keep the club afloat. Is that a crime.

  • Mark says:

    It is amazing that anyone is actually considering purchasing BCFC without any accounts available to see??! From my limited understanding of these matters, don’t you have to pay a down payment to see the books and complete ” due dilligence”.. How would any seriously interested party see what a true situation is with the finances of BCFC & BIH without necessary accounts in place?! And I hold all directors of BIH responsible for this farce.. Are they not meant to be the responsible parties for the company? I would imagine any party looking to purchase BCFC will be very wary of the skeletons in the closet that they may well discover if they were to be successful. No wonder Paladini won’t put all his cash up front.. I certainly would not in this parilous state of affairs

  • Paulo says:

    All I can say is that this is a move in a somewhat hopefull direction. With all the recent fumings of blues fans, and unnecessary speculation, it is good to know that some facts do exist.
    Again, thanks for keeping us updated.

    • James Black says:

      Agree Paulo

    • chris says:

      The only reason they are now completing the accounts is because they are being forced to by Paladini’s, Chan’s and ‘an other’ bidders, because they and no one else will buy the club or invest in the club till they know the potential mess they are getting into.
      Without a creditor banging on the BIHL door or the accounts published for BIHL then they are not officially a bankrupt company, which they may be in the real world but only the accounts being released will we come near the truth.
      No one in their right mind would buy / invest without accounts as there could be millions of debt hiding in some dark corner.
      Everyone blaming Paladini should look east for the real reason that the club can’t find buyers nor investors.

      • almajir says:

        Chris

        I actually disagree with you. It seems apparent to me that since BIH were forced to appoint a compliance advisor, they have been keen to sort out the mess that the company has been in and to get it into working order.

        Paladini has no interest in BIH so he wouldn’t care less about their details; others might. However, I’ll reaffirm – I think Pannu is running scared of breaking the rules and complying with everything that he has to

  • Big Al says:

    Can any of these accountants play at right back?

  • Alan Francis says:

    OP did you find out if its possible to sell the club without BIHL accounts?

    Another thought BIHL has no other source of income apart from BCFC so it must be charging a licence fee to BCFC to keep the Hong Kong operation functioning?

  • Steve-0 says:

    Happy New Year everyone!

  • Gary R says:

    Can someone please tell me how this is good news, in terms of prospects of BIHL selling BCFC ?

  • kopite says:

    Don’t understand why a UK company can’t audit BCFC’s accounts and then report to BIH auditors in HK. Maybe it’s just me that thinks things are being made deliberately complicated. KRO

    • almajir says:

      I have asked an accountant about this cos I wasn’t sure either.

      A UK company have audited the BCFC accounts – a local firm called Edwards. However, it’s not unusual for a parent company to send their own auditors in to have a look through, chat to the auditors and the staff and report back. Because BIH are a HK firm, they’ve sent auditors from out there. I’ve checked and BIH are paying for it all, not BCFC.

      • bluenose08 says:

        hi al what is b.i.h.l. scource of income ?

      • swissjonny says:

        Just a thought.Pannu is very keen not to spend too much time in the UK right now.Clearly the revenue have clamped down on non resident status and the 90 day extra statutory concession has been replaced by a series of questions.It does seem peculiar that Pannu is really trying to distance himself from the UK……If he was to receive a commission of a substantial nature he would really not want to get clobbered for UK tax.If he claims to be HK resident he will pay no tax on the gain as it has been earned outside of the territory.Pure suspicious speculation but I reckon PP is positioning himself for a windfall.Lets just hope its quick!!

    • chris says:

      Accounting procedures and practice differ from country to country as does taxation rules / rates, so many companies use the country that gives them the sort of accounts they want to release to the taxman or stock market.
      A certain foriegn car company i beleive used the uk operation as a tax loss and made sure it made a loss by pilling it with development costs, instead of the parent company sharing in those costs.
      As we have seen with a certain global coffee chain using another european country to offset corporation taxation in this country.
      You can make figures from contry to country do what you want to a large degree.
      No wonder so many global companies pay little tax here.

      • Blueboy88 says:

        don’t disagree other than this lot have not got the gumption to be that devious
        plus you need something somewhere to be making a profit & that is also seemingly beyond their wit.

  • Dave says:

    Where else does BIH get money from, in order to pay the auditors if it isn’t from the club? Genuine question.

    • almajir says:

      It is a good question.

      All I can say is this: I remember reading that BCFC made up 96% of BIH’s turnover, so maybe there is a small trickle of money coming in from somewhere. Secondly (and you can take this how you want), I was told by Peter Pannu that BIH was paying for it when I asked him directly. It’s up to you if you believe him or not.

      • kopite says:

        If BCFC is 96% of BIH turnover, then BCFC is paying the bills for everything. It may be that the payment is made by BIH but BIH’s cash is all (96%) derived from BCFC. Pannu’s slipping if he thinks we can’t see that. On that basis all of the directors and employees of BIH are being paid by BCFC and no doubt their travel expenses etc.

        • almajir says:

          I will reiterate once again. I have been told, repeatedly, no money has left BCFC for BIH.

          I will also reiterate that this isn’t Pannu who has told me this, and that if money WAS leaving the UK for HK we’d know about it. Trust me, the s**t would hit the fan.

          • Alan Francis says:

            So where does BIH get its funds from if its not from BCFC? There has to be some off charging somewhere otherwise they couldn’t afford a base, offices, telephone or auditors?

  • Art Watson says:

    Is it possible to identify the total amount of income and expenditure incurred since the duration of the new owners?

  • CanadaEric says:

    I hope we now understand how good we had it with English owners. Communication from the Chinese owners has been pathetic. I assume Pannu is being paid by BCFC and his travel costs alone are incredible. While some may not like Paladini, I believe Pannu did not need to be so rude. No class I am afraid.

    • almajir says:

      In fairness, didn’t people moan about how David Gold wouldn’t shut up in the press?

      Also, the truth is customer service has improved markedly under the current board too.

  • Atahualpa is a BlueNose says:

    It might even mean that BIHL are being sold as well as BCFC. Bad news about Will Packwood. Should make for an interesting replay fixture at Blues and a decent tie in the next round. Good incentive and should generate some cash for the club because Leeds and hopefully Spurs always try and make a decent showing at St Andrews. Hopefully the accountants won’t find too many nasty surprises lurking around and we can all move forward.

  • mark says:

    let hope all that have posted on here regarding the accounts, will get their backsides down the blues and support our kids in the replay INCLARKWETRUST. kro


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