Birmingham Sports : FINAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 30 JUNE 2019 (in PDF)

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BIRMINGHAM SPORTS HOLDINGS LIMITED

伯 明 翰 體 育 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2309)

FINAL RESULTS ANNOUNCEMENT

FOR THE YEAR ENDED 30 JUNE 2019

The Board of Directors (the "Board") of Birmingham Sports Holdings Limited (the "Company") hereby announces the audited consolidated results of the Company and its subsidiaries (collectively referred to as the "Group") for the year ended 30 June 2019 together with comparative figures as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME

For the year ended 30 June 2019

		2019		2018
	Notes	HK$'000	HK$'000
Revenue	3	210,437		208,013
Operating expenses		(470,368)	(531,563)
Loss from operations		(259,931)	(323,550)
Interest revenue		771		1,910
Other income	5	8,803		8,646
Profit on sales of players' registration		42,133		21,707
Amortisation of intangible assets		(76,583)	(80,445)
Administrative and other expenses		(54,205)	(42,190)
Impairment loss on intangible assets		(14,746)	(4,804)
Fair value change on investment properties	11	23,160		-
Share-based payments expense	8	(4,398)	-
Finance costs	6	(28,008)	(19,070)
Share of loss of a joint venture		(46)	(172)
Loss before taxation		(363,050)	(437,968)
Income tax (expense)/credit	7	(1,640)	266
Loss for the year	8	(364,690)	(437,702)

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		2019			2018
	Notes	HK$'000	HK$'000
Other comprehensive (expense)/income
Item that may be reclassified subsequently
to profit or loss:
Exchange differences arising on translation of		(10,522)
financial statements of overseas subsidiaries		3,870
Total comprehensive expense for the year		(375,212)	(433,832)
Loss for the year attributable to:
	(360,927)
Owners of the Company		(425,027)
Non-controlling interests		(3,763)	(12,675)
		(364,690)	(437,702)
Total comprehensive expense for the year
attributable to:		(371,005)
Owners of the Company		(421,275)
Non-controlling interests		(4,207)	(12,557)
		(375,212)	(433,832)
					(Restated)
Loss per share attributable to owners of the Company		(2.66)
- Basic (HK cents)	10	(4.68)
- Diluted (HK cents)	10	(2.66)	(4.68)

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2019

		2019		2018
	Notes	HK$'000	HK$'000
Non-current assets
Property, plant and equipment		191,135		211,007
Intangible assets		142,743		197,024
Investment properties	11	553,020	393,908
Interest in a joint venture		-	1,073
Deposits, prepayments and other receivables		473	-
Total non-current assets		887,371		803,012
Current assets
Inventories		3,449		6,469
Trade receivables	12	7,296	19,167
Deposits, prepayments and other receivables		52,747	51,946
Bank balances and cash		83,652	69,221
Total current assets		147,144		146,803
Current liabilities
Transfer fee payables		26,693		60,626
Trade payables	13	23,394	13,507
Accruals and other payables	14	124,358	48,604
Deferred capital grants		564	585
Deferred income		-	24,969
Contract liabilities		29,136	-
Borrowings	15	130,004	66,201
Total current liabilities		334,149		214,492
Net current liabilities		(187,005)	(67,689)
Total assets less current liabilities		700,366		735,323

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		2019	2018
	Notes	HK$'000	HK$'000
Non-current liabilities
Transfer fee payables		-	25,650
Accruals and other payables		4,547	7,883
Deferred capital grants		13,913	14,996
Borrowings	15	84,512	99,814
Deferred tax liabilities		21,885	20,970
Total non-current liabilities		124,857		169,313
NET ASSETS		575,509		566,010
Capital and reserves
Share capital	16	177,100	109,741
Reserves		419,841	473,494
Equity attributable to owners of the Company		596,941		583,235
Non-controlling interests		(21,432)	(17,225)
TOTAL EQUITY		575,509		566,010

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NOTES:

1. BASIS OF PREPARATION
   The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA"). In addition, the consolidated financial statements include applicable disclosures required by the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and by the Hong Kong Companies Ordinance (Cap. 622 of Laws of Hong Kong). The consolidated financial statements have been prepared on the historical cost basis except for investment properties, which are measured at fair values.
   Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The functional currency of the Company is Hong Kong dollars ("HK$"). The consolidated financial statements are presented in Hong Kong dollars for the convenience of users of the consolidated financial statements as the Company is listed in Hong Kong. They are presented in HK$ and all values are rounded to the nearest thousand (HK$'000) except when otherwise indicated.
2. PRINCIPAL ACCOUNTING POLICIES
   The Group incurred a loss attributable to owners of the Company of HK$360,927,000 for the year ended 30 June 2019 and as at 30 June 2019 the Group had net current liabilities of HK$187,005,000. These conditions indicate the existence of a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern. Therefore, the Group may be unable to realise its assets and discharge its liabilities in the normal course of business.
   The consolidated financial statements have been prepared on a going concern basis. The directors of the Company (the "Directors") are of the opinion that the Group will have sufficient working capital to meet its financial obligations as and when they fall due for the next twelve months given that (i) the Company has entered into a loan facility agreement and a supplemental facility agreement with a controlling shareholder of the Company, Trillion Trophy Asia Limited ("Trillion Trophy"), on 21 December 2016 and 21 December 2018 respectively, under which an unsecured revolving loan facility up to a maximum amount of HK$250,000,000 has been granted to the Company (the "Trillion Trophy Facility"); (ii) the Company has unsecured loan facilities with aggregate amount of HK$400,000,000 from third party lenders; and (iii) the financial support of the controlling shareholder of the Company, at a level sufficient to finance the working capital requirements of the Group. The controlling shareholder of the Company has agreed to provide adequate funds to the Group.
   As at 30 June 2019, the total carrying amount of the borrowings under the above facilities of the Group was approximately HK$209,697,000. As at 30 June 2019, the Group had undrawn borrowing facilities of approximately HK$424,303,000 available to it.

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