HKSE Complaint Email – 08/01/2020
Birmingham Sports Holdings
I write in relation to Birmingham Sports Holdings who are listed on the main board with the stock code 2309.
The announcement can be found at this link. https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0930/ltn20190930601.pdf
I also refer to the annual accounts filed by Birmingham City Football Club plc (BCFC plc), a subsidiary of Birmingham Sports Holdings and its main asset.
Their accounts can be found here:
I believe that Birmingham Sports Holdings have made two major omissions from their final results announcement which can be found in the BCFC plc accounts.
The first omission is that as per page 3 of the BCFC plc accounts, the football club Birmingham City have been notified by the English Football League (EFL) on 14 May 2019 that they are instigating proceedings regarding a rule breach. These proceedings could have a seriously adverse effect on the football club, causing it to be relegated from The Championship, devaluing the asset and substantially reducing income.
Previous notifications of breaches have been included in group accounts, which therefore raises the question why this breach was not mentioned.
The second omission is that BCFC plc have confirmed that they have sold buildings and land to the value of £22,760,000 (approximately HK$232.166million) to another subsidiary owned by Birmingham Sports Holdings. This can be found on page 25 of the BCFC plc accounts.
As this transaction is for more than the entire revenue generated by Birmingham Sports Holdings within that accounting period, this surely must be seen as a disclosable transaction. Furthermore, enquiries to the British Land Registry show that no change of ownership has yet been recorded.
I believe that the omission of this information is detrimental to shareholders and shows deliberate neglect from the board of Birmingham Sports Holdings.
My details are as follows:
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