Birmingham City financial problems look set to continue as parent company issues profit warning
Birmingham International Holdings Limited (BIHL), the Hong Kong-based parent company of Championship football club Birmingham City, has issued a profit warning to investors.
The Hong Kong Stock Exchange-listed company issued a statement informing shareholders and potential investors of "a significant loss for the year ended 30 June 2014".
According to the group's unaudited accounts for the year ended 30 June 2014, revenue has decreased by 17 per cent while net loss has increased by approximately 20 per cent.
The audited consolidated results for the year are expected to be published in September.
Despite only avoiding relegation to League One at the very last minute last season, Birmingham City manager Lee Clark have been forced to rely on free transfers and loans to improve his squad for the second summer in a row. His side lost their first game of the season against Middlesbrough 2-0 on Saturday.
The club has been embroiled in financial turmoil since June 2011 when Carsen Yeung, then president of the club, was arrested on charges of money laundering.
Shares in BIHL had dropped by 2.27per cent at the end of trading in Hong Kong today.