Birmingham City Reveal Profits

Birmingham City have announced a profit of more than £15 million in newly-published accounts but will continue to cut costs.

The St Andrew’s outfit ended the year to June 30, online 2012 £15.7 million in the black, buy thanks to the sale of a string of players and Premier League “parachute” payments made to relegated teams.

But the directors’ report, accompanying the accounts, made it clear the club’s period of austerity would continue with parent company Birmingham International Holdings Ltd still mired in problems.

“Due to the number of player sales and the support of Premier League parachute payments, this current year shows a substantial profit and positive cashflow,” the document said.

“The directors intend to continue to seek cost reductions to help ensure the financial viability of the club.”

But the balance sheet revealed turnover dropped from £61 million in the 2010/11 Premier League campaign to £39 million.

And the club made an operating loss of just under £4 million when transfer deals were discounted.

Staff payments, including players’ wages, almost halved to just over £25 million from more than £45 million the previous year.

But boardroom fees rocketed from £80,247 to £687,611.

Match receipts increased to £9.2 million from £9.1 million, but broadcasting revenue dropped to £21 million from almost £44.5 million.

Other commercial income also rose slightly to £8.7 million.