BII ran up deficit of almost £500k in 2011

The Publican's Morning Advertiser exclusively revealed in April that the BII’s deficit had grown last year to a level described by former chairman Martin Grant as “pretty grim”.

In its accounts for 2011 published at Companies House, the group confirms that it deficit increased from £296,386 to £484,563 last year.

The accounts state that the BII’s partner in China was “taken seriously ill” in 2011 and it was decided to suspend its activities in that country and write down its debt with Beijing Compound World, “with the possibility of still recouping a part of it in 2012”.

“At the year end there were reserves of £1.7m and operating costs of £4.8m, which gives reserve cover of 4.2 months, which is within the policy of three to six months.

“The budget for 2012 shows operating costs of £4.4m, which gives cover of 4.6 months and again is within the policy.”

The accounts show that the number of BII members declined form 12,956 to 11,816, with 2,766 new members recruited and 3,906 lost, “many of whom were licensees leaving the industry”.

However, membership income increased 8.4% to £939,301 with the acquisition of the Academy of Food & Wine Services, Meanwhile, a cost-cutting programme reduced expenditure by 5.5%.

In BIIAB, its qualifications arm, income from sales of qualifications fell 19.2% (£558,529) to £2.235m and costs fell 13.9% to £297,553. Qualifications from the security industry declined due to uncertainty about the future of the Security Industry Authority, although print costs reduced.

Overall c.100,000 qualifications for people working in the industry were issued, the BII said.

“2011 continued to be a difficult year for the licensed retail industry, though slightly less so than 2010,” the group stated. “The economy flat-lined in 2011. Government public expenditure cuts started to bite and taxation and inflation are eating away at disposable income.

“The very high rates of pub closures in 2010 have slackened off marginally in 2011 but the market was still very tough for BII members and for their professional body.”

The BII said that last year 3,388 people took the Pre-entry Awareness Training for incoming pub tenants.

Last month BII members approved a restructure of the organisation that saw it slimmed down, with the BII national council reduced in size from 40 to 16, comprising 10 regional chairmen and six industry experts. Peter Thomas was asked to serve as chief executive full time for a further 12 months to offer stability.