Posts tagged ‘Lycamobile’

Gruniad accounting #fail

Given that the Gruniad’s parent company has demonstrated in previous years how to make themselves as tax efficient s possible, it might be expected by now that some of their skill in reading a balance sheet might have passed down to the reporters of said organ.

It seems though that such knowledge transfer isn’t taking place if today’s attempt to do a hatchet job on Lycamobile is anything to go by.

So, what has Lycamobile done to deserve the hairdryer treatment?

A mobile phone company that has paid no corporation tax for three years has become the Conservatives’ most generous corporate donor after giving more than £300,000 over the last nine months, new figures show.

The latest available figures show the company did not pay any tax between 2008 and 2010, despite generating a turnover of between £47m and £88m.

Now those with half a brain cell will already be screaming that turnover isn’t profit and you’d be correct – but the Gruniad article is written to fulfil an agenda and nowhere in the piece is the actual profit/loss mentioned.

So what are the relevant figures* (2011 numbers were not available)?

Year Turnover (£m) Profit (£m)
2009 47.90 -10.91
2010 88.04 -6.86

And now we know why Lycamobile paid no corporation tax in 2010 and 2011.

*I’d link to my source but a) it is my employer and b) it is behind an expensive paywall so you’ll have to take my word for it or go googling.