Wednesday December 5, 08:52 AM
Birmingham city swings to FY pretax loss on relegation to Championship UPDATE
(Adds details on trading)
LONDON (Thomson Financial) - Birmingham City PLC (LSE: BMC.L - news) moved to a full-year pretax
loss and reported a 38 pct decline in turnover saying this largely reflects relegation to the Championship league last season and the consequent material impact on results, which it had forecast at the half year.
The football (TFNK.PK - news) club has now regained its Premier League status.
The company, whose sole activity is the operation of Birmingham City Football Club PLC, reported a pretax loss for the year to end-August of 6.5 mln stg compared with a profit of 2.6 mln stg earlier.
Turnover fell to 25 mln stg from 40 mln stg.
Managing director Karen Brady said the main target for the Club this year is to retain Premier League status, and added that the company expects good retail sales period over Christmas.
Further, the company said it has recorded the highest commercial sales ever made at the Club for its home game against Aston Villa this season.
It added that its three-year partnership with Umbro (LSE: UMB.L - news) will help to increase commercial awareness of its retail product.
Regarding offer talks with Grandtop Intl Holdings, Birmingham said talks are continuing with GIH which may or may not lead to an offer for the company, but added that this is unlikely to occur before end-2007.
Brady (NYSE: BRC - news) said the company's board is 'fully committed' to running the business and taking it forward.
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