Concerns grow over Birmingham City finances

Football News 24/7

  
The turmoil surrounding Birmingham International Holdings owners of Birmingham City FC intensified after Birmingham-based BDO wrote to the Far East group announcing the audit firm was resigning with immediate effect.
 
BDO, who revealed in June that they had not received all relevant information over the football club’s £10 million losses for last season, attacked BIHL’s inability to provide ‘consistent, reliable and complete’ audit evidence.
 
The resignation is the latest embarrassment for Blues’ owners, who have now delayed publication of the accounts of BIHL for a sixth time.
 
In the latest statement to the Hong Kong Stock Exchange, BIHL chief executive Peter Pannu said: “The board of directors of Birmingham International Holdings announces that a letter has been received on October 30 2012 dated October 29 2012 from BDO Ltd resigning as the auditor of the company with immediate effect.

Birmingham International Holdings said in a statement accountants BDO had stood down, saying they had not been able to get "consistent, reliable and complete" information from the company.

The club's owners said it would mean another delay to them publishing their accounts, dating back to June 2010.

They said they were in the process of appointing new auditors.

In June, BDO said it was "sceptical" whether it had received "all relevant information" from the club's directors, something owner Carson Yeung disagreed with.

He said at the time the club's directors had "taken all the steps" to give the auditors all the information required.

The dispute between the club and BDO had been in regard to Birmingham City PLC's results for the year to 30 June 2011, which were filed in June this year at Companies House.

Mr Yeung took control of Birmingham City in 2009 and is the club's largest single shareholder with a 26.3% stake.

The Club who were relegated from the Premier League two seasons ago are currently languishing in 17th spot in the Championship table and are already 12 points adrift of leaders, Cardiff City.

MB