Starbucks Losses Hit £30m In Last Tax Year

Written By Unknown on Sabtu, 29 Juni 2013 | 11.46

By Pete Norman, Sky News Online

Starbucks UK reported a net annual loss of more than £30m for the 12 months to September 30, according to newly released documents.

Accounts filed with Companies House show that Starbucks Coffee (UK) Ltd reported a total turnover of £413.39m in 2011-12, compared to £397.7m in 2010-11.

Gross profit was £70.5m, however after administrative losses of £98.2m - including royalty and licensing fees of £26.48m - the loss for the 2011-12 tax year amounted to £30.4m, the company said.

The net loss in the tax year 2010-11 was £32.8m. In 2009-10 the loss after tax of £34.2m, while in 2008-9 it was £52m and in 2007-8 the loss was £46m.

The directors of the company took home a combined £1.08m for the year ending September 30, up from £590,319 in the previous year.

The figure for directors includes shares that have vested in the period. No director shares were vested in financial year 2010-11 (FY11).

A Starbucks spokesman told Sky News: "All full and part-time employees of Starbucks receive shares as part of their pay.

"Over half of the remuneration provided to our directors last year comprised vested equity shares."

He added: "The reason for the increase is that the directors took the decision to sell some of their vested shares in FY12.

"These shares could have been granted at any point during the directors' tenure with the company, and can be sold once vested."

In real terms, it means salaries for the three directors have risen by around  10%.

The accounts show that the highest paid director of the company received a total package of £708,019, including £116,560 in relocation benefits.

The top director's pay was increased 90% from the previous year, when it amounted to £372,440

Starbucks was grilled by MPs last October over why the company had paid no UK corporation tax for three years, despite total sales of £1.2bn in the period.

It confirmed that the company had only made a UK profit once in the 14 years it had been trading in the country.

The subsequent public furore led to Mr Engskov telling Sky News, in December, that the company decided to "take action".

It announced that the UK firm would pay HM Revenue and Customs (HMRC) £20m over two years but critics slammed it as a gift and not a legal requirement.

Starbucks recently paid its first 'instalment' of £5m to HMRC for the financial year 2012-13, after it said it would make "certain deductions" relating to royalties paid to other arms of the multinational.

It intends to pay another £5m before September 30 and another £10m in the 2013-14 tax year.


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