Final Results
December 05 2007 - 2:01AM
UK Regulatory
RNS Number:1867J
Birmingham City PLC
05 December 2007
5 December 2007
Birmingham City plc
(the "Company")
Preliminary Statement of Final Results
for the Year Ended 31 August 2007
Birmingham City plc, whose sole activity is the operation of Birmingham City
Football Club PLC, announces its financial results for the year ended 31 August
2007
Chairman's Statement
I am pleased to report that Birmingham City FC, in a difficult and competitive
year, has regained its Premier League status at the first attempt. In addition
we have made a satisfactory start to the new season.
Steve Bruce, who served as manager for the last 6 years, has left the Club to
join Wigan Athletic, with the Club in return securing a #3m compensation
package. I would like, on behalf of the Board, to thank Steve for the
contribution he made to the Club during his time here.
The Board has appointed only four managers since 1993, and I am delighted to
welcome new manager Alex McLeish and his management team to the Club. I am
confident that he will take the Club forward in a progressive manner.
I would like to thank our staff, and in particular our management team, who have
led us superbly through a very challenging period.
David Sullivan
Chairman
Managing Director's Review
Turnover for the year to 31st August 2007 was #25m, down 38% on the 2006 figure
(#40m) with the loss on ordinary activities before taxation at #6.5m (2006 :
profit #2.6m). This largely reflects relegation to the Championship and the
consequent material impact on turnover and profits which we forecasted at the
half year.
Everyone at the Club is delighted to welcome Alex McLeish who has joined on a
three and half year contract, together with his management team of Roy Aitken
and Andy Watson.
The impact of a new manager along with the expected squad enhancement in the
January transfer window is expected to have a positive impact on the remainder
of the season. The main target for the Club this year is to retain Premier
League status.
The Club has started the season well. Off the field we continue to maximise all
the financial benefits which being in the Premier League offers. We have
recorded the highest commercial sales ever made at the Club for our home game
against Aston Villa this season. We have opened a number of new facilities,
most notably the Carlsberg Jasper Carrot lounge providing a more flexible and
varied commercial range of product. In addition we have moved to Umbro as our
Technical Sportswear Partner on a 3 year contract; we believe that this
partnership will enhance the commercial awareness of our retail product. We are
also anticipating a good retail sales period over Christmas.
Significant changes to the structure of the Academy were made during the year,
including the appointment of a new Director, reporting directly to myself. This
has had a positive effect and we currently have seven players representing their
countries at under 16 to under 19 level. Five of these played for the England
under 17's. These players represent the future of the Club.
During this year Grandtop International Holdings ("GIH") purchased 29.9%
(24,375,975 shares) of the Company's share capital from the Club's directors:
David Sullivan, David Gold, Ralph Gold, Roger Bannister and Karren Brady. As
shareholders are aware, discussions are continuing with GIH which may or may not
lead to a cash offer for the Company; however, at the time of writing this
report it seems unlikely that this will happen before the end of 2007. In the
event that no general offer is made for the Company, the Board of the Club wish
to assure all shareholders that they are fully committed to running the business
and taking it forward, as they have done since 1993.
Plans to redevelop St Andrews continue with enthusiasm and with the commitment
of Birmingham City Council, with whom the Club has an excellent relationship.
The redevelopment works at the Training Ground are now complete providing
upgraded facilities for all age groups at the Club ranging from the Under 9's to
the First Team. We experienced a number of problems with the St Andrews pitch
during the year which resulted in the complete relaying of the surface. Thanks
to the groundsman and his team's effort and hard work this has successfully
eradicated the surface and drainage problems. For the last twelve months the
combined expenditure on the Ground and Training facilities stands in excess of
#2m.
The Board recognises that, having achieved Premiership status, much hard work is
still required but I can assure shareholders that the Board is fully focussed
and committed to ensuring that we have a continuous long term membership of the
Premier League.
Karren Brady
Managing Director
Press enquiries:
Birmingham City plc
Roger Bannister 0121 202 5230
Shore Capital
Graham Shore 020 7408 4090
Consolidated Profit and Loss Account for the Year Ended 31st August 2007
2007 2006
Operations
excluding
player Player
amortisation amortisation
and trading and trading Total Total
#000 #000 #000 #000
TURNOVER 25,039 - 25,039 40,117
________ ________ ________ ________
Operating expenses (30,821) (8,371) (39,192) (44,475)
________ ________ ________ ________
OPERATING LOSS (5,782) (8,371) (14,153) (4,358)
Profit on sale of players'
registrations - 7,769 7,769 7,063
________ ________ ________ ________
(LOSS)/PROFIT BEFORE INTEREST
AND TAXATION (5,782) (602) (6,384) 2,705
________ ________
Bank interest receivable 62 39
Bank interest payable (196) (111)
________ ________
(LOSS)/PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION (6,518) 2,633
Taxation on (loss)/profit on ordinary activities 1,794 (882)
________ ________
(LOSS)/PROFIT FOR THE FINANCIAL YEAR (4,724) 1,751
(Loss)/earnings per Ordinary Share
Basic (5.84)p 2.17p
Diluted (5.84)p 2.17p
There were no recognised gains or losses other than those reported above.
Historical cost profits/(losses) are not materially different to those stated
above.
All activities are derived from continuing operations.
Consolidated Balance Sheet as at 31st August 2007
2007 2006
#000 #000
FIXED ASSETS
Intangible assets 24,817 14,185
Tangible assets 13,138 12,529
_______ _______
37,955 26,714
_______ _______
CURRENT ASSETS
Stock 555 360
Debtors 12,069 10,407
(inc #1.75m due in more than one year
(2006 - #2.3m))
Cash at bank and in hand 3,905 4,308
_______ _______
16,529 15,075
CREDITORS: Amounts falling
due within one year (41,326) (23,341)
_______ _______
NET CURRENT LIABILITIES (24,797) (8,266)
_______ _______
TOTAL ASSETS LESS CURRENT LIABILITIES 13,158 18,448
CREDITORS: Amounts falling
due after more than one year (4,311) (4,950)
Provisions for liabilities and charges - (10)
_______ _______
NET ASSETS 8,847 13,488
CAPITAL AND RESERVES
Called up share capital 8,150 8,075
Share premium account 10,081 10,073
Revaluation reserve 313 313
Merger reserve ( 2,539) ( 2,539)
Profit and loss account ( 7,158) ( 2,434)
_______ _______
SHAREHOLDERS' FUNDS 8,847 13,488
Consolidated Cash Flow Statement for the Year Ended 31st August 2007
2007 2006
#000 #000
NET CASH INFLOW FROM
OPERATING ACTIVITIES 8,342 3,779
Returns on Investments and
Servicing of Finance (134) (72)
Taxation - -
Capital Expenditure (9,408) (5,799)
_______ _______
Cash Outflow Before Financing (1,200) (2,092)
Financing 838 (45)
_______ _______
DECREASE IN CASH (362) (2,137)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
2007 2006
#000 #000
Decrease in cash in year (362) (2,137)
Cash to repay bank loan 81 45
_______ _______
Decrease in Net Funds (281) (2,092)
Inception of bank loan (836) -
_______ _______
(1,117) (2,092)
Net funds at 1st September 2006 3,918 6,010
_______ _______
Net funds at 31st August 2007 2,801 3,918
RECONCILIATION OF OPERATING (LOSS)/PROFIT TO NET CASH INFLOW FROM OPERATING
ACTIVITIES
2007 2006
#000 #000
Operating loss (14,153) (4,358)
Amortisation of players' registrations 8,371 10,084
Depreciation 543 555
Loss on disposal of fixed assets (2) -
Amortisation of deferred income (57) (57)
(Increase)/decrease in stocks (195) (166)
Decrease/(increase) in debtors (603) 6,159
Decrease in creditors 14,438 (8,438)
_______ _______
Net Cash Inflow from Operating Activities 8,342 3,779
_______ _______
Notes:
1. The preliminary results to 31 August 2007 are extracted from the unaudited
annual accounts for that year and have been prepared in accordance with the
accounting policies adopted in those accounts. The financial information set
out in this statement does not constitute full statutory accounts within the
meaning of section 240 of the Companies Act 1985. The statutory accounts for 31
August 2006 received an audit report which was unqualified and did not contain
any statements under s237(2) or (3) of Companies Act 1985.
2. Earnings per share has been calculated as follows:
2007 2006
#000 #000
(Loss)/profit on ordinary activities after taxation (4,724) 1,751
_________ _________
Basic No. No.
Weighted average number of ordinary shares in issue
during the year 80,849,520 80,755,000
_________ _________
Earnings per ordinary share (5.84)p 2.17p
________ ________
Diluted No. No.
Weighted average number of ordinary shares in issue
during the year 80,849,520 80,805,238
_________ _________
Earnings per ordinary share (5.84)p 2.17p
_________ _________
There is no dilution in 2007 due to loss. In 2006, diluted earnings per share
take into consideration the dilutive effect of earnings per share if the
outstanding share options were exercised.
3. The statutory accounts for the year ended 31 August 2007, will be finalised
on the basis of the financial information presented by the directors in this
preliminary announcement. Copies of the accounts will be posted to shareholders
in due course. Copies of this announcement are available from the Company at St
Andrew's Stadium, Birmingham B9 4NH and at www.bcfc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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