Trading Resumes As Birmingham Deny Wrongdoing

Trading in Birmingham City Football Club shares has resumed after the two executives arrested over a corruption inquiry strongly denied any wrongdoing.

Earlier, shares in the club were suspended on the London stock exchange as part of the corruption investigation which led to the arrest of the Birmingham City's managing director Karren Brady and co-owner David Sullivan. The police enquiry is focusing on payments to a football agent and two players dating back to the 2002-03 season, the club has revealed.

"There is absolutely no allegation that any director of the company or the club itself has benefited financially from any of this activity," read a club statement. "In so far as there may be any implications for the company, these are not considered material to its financial affairs and they are in relation to the payment, or possible non payment of PAYE and National Insurance contributions. The club and its directors are cooperating fully with the police in this investigation and will continue to do so. For the avoidance of doubt we wish to make it plain that David, Karren and Birmingham City deny absolutely any wrong doing."

Trading in the club's shares was halted pending this afternoon's announcement, after it emerged that managing director Brady and co-owner Sullivan had been interviewed by police. Brady, 39, and the 59-year-old Sullivan were questioned and bailed by officers from the economic crime unit, who raided the club's offices last month. At the time, Birmingham officials denied anyone associated with the club was under suspicion. But the club confirmed last night the pair were interviewed by appointment and were happy to cooperate with police.

Brady became the UK's youngest managing director when Birmingham floated on the stock market in 1997. She is also chairman of Kerrang! magazine and non-executive director of Channel 4, Mothercare and Sport England. Sullivan, the multi-millionaire former proprietor of the Daily Sport and Sunday Sport, co-owns Birmingham with brothers David and Ralph Gold.

Brady made no comment as she left her home in Knowle, Solihull, shortly before 8am today. Dressed in a dark suit, Brady left the gated property at the wheel of a black 4x4 Porsche. There was no sign of Mr Sullivan at his gated mansion in Theydon Bois in Essex, where a female voice answered his intercom at the end of the driveway and said: "I'm afraid he is not available at the moment."

A short statement issued by the stock exchange's "Aim" index read: "At the request of the company trading on Aim for the under-mentioned securities has been temporarily suspended from 7.30am, pending an announcement." Shares in the company had been selling for 35.5p until the suspension announcement which came half an hour before the start of trading.