Often Partisan

BCFC Post 10 Million Loss in Premiership Relegation Season

Often Partisan has been passed a copy of the recently filed BCFC accounts for the year ending June 2011 and can exclusively reveal that the club made an operating loss of just over £10million during the relegation season.

However there are significant issues raised within the auditors report which cast a darker shadow over the running of the club by its owners.

Chief amongst those issues is that the auditors have said that they have

“significant doubt as to whether we have received all relevant information necessary for the purposes of our audit.”

The statement lays the blame firmly at the feet of the directors of the company – namely Carson Yeung, Ryan Yeung, Vico Hui and Peter Pannu.

They go on to say

Accordingly, we do not express an opinion on the financial
statements

A large reason for the £10million operating loss comes purely down to staff costs, which were a staggering £45million – although increased revenue of £61million meant that the wages to turnover percentage was lower than expected at 75%.

The figures also confirm that the club had a debt of £13.7mil to Carson Yeung and £7.8mil to BIHL as of June 30 2011 and that the overdraft with HSBC was withdrawn in August 2011 (although it wasn’t in use).

The director’s report states that whilst Carson’s assets are frozen that the BCFC directors “do not have any credible reason to fear that the Hong Kong Authorities have any recourse to the loans made to BCFC by Yeung Ka-Sing, Carson.”

The accounts also clarify a reason for the delay in the publication; namely the transfer of net income from sponsorship of kit to a subsidiary of BIH called Birmingham (Hong Kong) Ltd which has caused the auditors BDO to seek appropriate clarifications as to how this affects tax etc.

The accounts also lay out exactly how much money the club recouped from player sales – £22million. It also states that a further £6million is payable in potential “add-ons”, of which £1.2million had been received since June 30 2011..

As I am not a qualified accountant I’m not going to discuss the accounts any further without some expert assistance, and due to the nature of this blog I am going to turn off comments on this article. I will post an update once I have further information to do so.

updated 10:50 09 June – the accounts are available from the Companies House webcheck service – they will cost you £1. The company number is 3304408.

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