Birmingham International posts record losses

Birmingham International Holdings Limited registered losses attributable to owners of the company of HK$10.6 million during the first six months of the fiscal year 2014/2015. In spite of the losses, the results demonstrate a better performance than during the first six months of 2013/2014, when the company registered loses of HK$61.5 million.
While the company is recording negative results, the receivers of the company believe that they have the necessary conditions to avoid bankruptcy.
‘The receivers of the company are of the opinion that the group will have sufficient working capital to meet its financial obligations as and when they fall due for the next twelve months given that the receivers will consider to raise funds by way of loans, if necessary, in order to meet the Group’s funding requirements’, the filing sent to the Hong Kong Stock Exchange explained.
The good news for the group that controls the English Football team Birmingham City is that revenues increased from HK$133 million to HK$143.8 year-on-year, which represents a rise of 7.7 per cent.
“Such increase was mainly due to the better performance of our football players in football matches during the 2014/2015 football season which drove increases in match receipts, television broadcasting and other commercial revenues”, they explained.
At the end of 2014, Birmingham City was placed 14th in the English second tier, while at the end of 2013 it occupied 17th place. This resulted in television broadcasting revenues increasing from HK$83.3 million to HK$86.6 million, commercial income rising from HK$29.3 million to HK$32.1 million and match receipts jumping from HK$21 million to HK$25.2 million.
The interim report of Birmingham International also clarified that the police are still investigating the suspected misappropriation of HK$38.6 million which allegedly took place last year on two different occasions.
Birmingham International Holdings Limited has been in receivership since February. However, the problems started at the beginning of 2014 when former Chairman and Executive Director Carson Yeung Ka Si was convicted on five counts of money laundering and sentenced to six years imprisonment.
As the fight for power unfolded inside the company the trading in shares of the group was halted in December and in February receivers were called in to try to manage the group.