Often Partisan

BIH Accounts Announced For Year Ending 2015

Birmingham International Holdings have released their accounts for the year ending June 2015. The accounts confirm a significantly lower wage bill and wage-to-turnover ratio but also that borrowings have had to be extended.

The accounts can be viewed here.

Key points from first analysis:

  • Once again, the accounts have a disclaimer of opinion. This is due to a number of factors – chief among them errors in accounting practices from previous years, the alleged misappropriation of funds, uncertainties over amounts due to former directors, issues with the convertible bonds, and monies paid out for expenses and other payables
  • Losses for BIH are markedly down, with a loss before taxation of less than HK$7.9M (680,000GBP) compared to HK$140M the previous year (12M GBP)
  • There is some detail as to where the misappropriation of funds went – various prepayments and admin costs totalling HK$10.9million – (930,000GBP)
  • The accounts confirm that so far HK$43M has been borrowed from Trillion Trophy Asia (3.6M GBP) at an interest rate of 8%
  • Debts owed to China Energy and iMerchants have been paid off
  • Carson has appealed the decision not to set aside the Receivers – the next hearing in this is due October 12
  • Pannu has been added as a 4th defendant in the case against Carson, Asia Rays and ATIEL due to be heard on October 20. His writ against BIH has been subsumed into that.

I will write a fuller report over the weekend, once I’ve had some more time to read into matters.

 

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29 Responses to “BIH Accounts Announced For Year Ending 2015”

  • Alex T says:

    Appeal after appeal from CY……. This guy doesn’t know when he is beaten, which in sporting terms would be a good thing, but in business terms this guy is surely hanging himself out to dry.

    With any luck, all the money he spends on futile legal expenses will see him pennyless and begging on the street, with a big sign saying;

    ‘Wife, kids and legal team to support, please give generously’

  • ChrisG says:

    Well it certainly looks like E&Y have steadied the ship somewhat. It will be interesting to see what happens over these missing millions supposedly for consultancy fees etc & if E&Y have any clues as to where the money actually went, (although I think most of us already have a pretty good idea).

  • Agent McLeish says:

    Looks like E&Y are working through the blind alleys and decoys. I do hope that anyone found guilty of foul play gets justice; after all it has sorely affected our club.

  • DoctorD says:

    Daniel – without prejudging your analysis (as you know things better than me), I thought this point was interesting:

    “the Receivers are considering to raise additional funds by entering into further agreements with Trillion Trophy and/or by other means of fund raising exercises. “

    • almajir says:

      I did say it was first look – I spent ten minutes this am while I was getting up reading it.

      It is interesting

    • Hillfield Blues says:

      Smells like a player sale to me.

      • BhamCityJulian says:

        On the contrary it looks like readying more funds for a promotion push. It suggests TTA are prepared to put more in in lieu of buying BIH or BCFC

        • Hillfield Blues says:

          Just being a sceptic. If GR can get us anywhere near where we are now by xmas TTA will be surely falling over themselves to throw a few million at it.

  • zxcv says:

    Dan, you point out that 3.6m has been borrowed so far, is that up to June 15 ? which won`t include the 13m odd since then, or is that 13m what they refer to when they talk of further borrowing because they say they have funding in place for the next 12 months which I took to mean the 13m or part of it. .Not sure if they intend to borrow more on top of the 13m?

    • BhamCityJulian says:

      Mm yes that ‘more funding’ might be the £13m but its mentioned in the accounts as if it current funding so maybe its in addition to the £13m

      • almajir says:

        I’ll be writing something fuller up tomorrow to explain this sort of thing (now I’ve had chance to read things through and talk to people)

        • zxcv says:

          Will look forward to reading that Dan, this Announcement seems to contain quite a few comments and mysteries that take quite a bit of understanding, like, why are bcfc as well as bihl suing Pannu,? I could understand two different entities suing him if it effected both companies. Don`t get me wrong the more the merrier if the he get double the whammy, but it does seem strange its a bit like trying him twice for the same offence. Anyhow thanks for your time and great work Dan.

  • atko says:

    E&Y sure have got their work cut out as there is a lot in there that isn’t substantiated. The question is how can any company provide a detailed accountancy report based on past information that isn’t substantiated? It has a knock on affect year on year out. With so many law suits & counter lawsuits going on I’ll be amazed if we’re sold inside the next 10 years!!!

  • joebradford's ghost says:

    Seems to me that E&Y, Panos and those at St Andrew’s have done a remarkable job cutting costs and making sure the team is competitive. Also seems that E&Y and Blues have done a lot of digging about what went on when Yeung and Pannu were running it for their own means and are taking action through the courts.Good on them.

  • zxcv says:

    I agree Atko its a bloody nightmare and of course they can`t get the suspension of trading lifted until the accounts are in order and can be signed off. So it all depends on the court cases being settled to allow for the accounts to be legal. No wonder tta was given two years there was no choice by the looks of things

  • eric says:

    thanks for keeping us informed Dan

  • RednalBlue says:

    Thanks again for the latest update Dan.
    When all this is over and the club is sold may I suggest that the club approach the guy’s working for E&Y that have been dealing with our case and offer them jobs running our club as they sure seem to know what they are doing and I am sure we could beat their current salaries.
    Sam. KRO.

  • zxcv says:

    Rednal, You were doing okay till you said we could beat their current salaries. They could probably buy the club if they so desired lol

  • Dave Mann says:

    Any chance we can talk about football maters …ie.. Blues v. Leeds ? Kro

    • Shirley Blue says:

      I was thinking of going to Elland Rd until I found out it was £37 for a ticket – that is disgraceful for Championship football. I reckon a 1-1 draw.

  • Blue lizard says:

    Theiving clog wearing gifts!!!!’ 37 quid !!!

    • Hillfield Blues says:

      Lizard,it’s the Dutch that wear the clogs mate.

      • Blue Lizard says:

        Ha my little flugelhorn…not heard of the industrial revolution and the Northern Clog wearers??? I’m surprised at you…Clog wearing gits!! £37….Cant go today…working away so £37 richer but still hoping for a win
        KRO

    • chris says:

      no different to previous years , it was £35 / £36 for at least last two seasons

  • chris says:

    I presume the £3.6 million of the £13 million loan has been used to pay China Energy and iMerchants?
    Leaving £9 mill towards E&Y fees and fans think they will use this money for players!!!
    If BCFC do see any of it, it should be used to give GR and his staff longer contracts, not wasted on players.

  • peterbates says:

    What is Carson yeung thinking e & y were court appointed because shareholders requested it does he think that having them removed other shareholders will welcome him with open arms I’m sure they wouldn’t go anywhere near him but somebody is funding these appeals would like to be a fly on the wall when he speaks to his legal team he must be the biggest gravy train in h k I can imagine them convincing him to continue his appeals slightly tongue in cheek laughing behind his back comes to mind all there christmas at one go back to Leeds would take a point there kro

  • swissjonny says:

    The lawyers in HK call it a slow spitting roast.


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