Championship club Birmingham City have hit back at reports suggesting that they could run out of money in the coming months.

The Birmingham Mail quoted former acting chairman Peter Pannu as saying that a £1.8m tax liability could cause the club to run out of cash in the New Year.

Birmingham this evening released a statement saying that they were "shocked and disappointed" by the reports.

"It would be inappropriate for the club to comment on specifics, however the club wishes to allay any fears that may now arise on the basis of the allegation there will be no funds beyond January/February 2015 – this is categorically refuted," the statement read.

"Whilst the club does not wish to comment on the specifics of its tax affairs as this, under normal business protocol, is a matter for it and HMRC, the corporation tax returns will be filed under due process and any tax due will be paid on time.

"The club's tax affairs are, and should always be, confidential and supporters can be reassured that Birmingham City Football Club takes its responsibilities very seriously in this regard."

The Blues, who only just stayed in the second tier on the final day of last season, are on a five-game unbeaten run under new manager Gary Rowett, which has lifted them up to 17th in the table.