BII achieves deficit reduction despite membership losses
The number of BII members declined from 11,816 to 10,432 – a net reduction of 1,384. Some 2,299 new members were recruited during the year and 3,683 were lost, many of whom, the BII reported, were licensees leaving the industry.
In his foreword to the Annual Report and Financial Statement issued in advance of this week’s AGM, BII chairman Bernard Brindley said: “The UK economy has been weak in recent years with growth flat since 2010 and a recent ‘double-dip’ recession which was the longest and deepest for 50 years between Q4 2011 and Q2 2012. This has been a difficult time for our industry and for the Institute with a continuing high level of pub closures that reduces the number of potential members.”
Membership income fell by 9.4% from £0.939m to £0.851m and income from the sale of qualifications declined by 7.2% from £2.351m to £2.182m.
Total income fell from £4.374m to £4,219m; and while total expenditure was reduced by more than £550,000 to £4.305m, including a cut of more than £300,000 in staffing costs (employee numbers fell from 50.4 full-time equivalent employees to 39.8), the BII still incurred a deficit of £86,048.
Brindley said: “Whilst it is disappointing to have incurred a deficit at all this is a significant improvement on 2011 [deficit of £484,563] and on 2010 [deficit of £296,396]. Cash resources decreased by only £31,203 in the year. It is the intention to at least break even in 2013.”
At year end (31 December 2012) the BII had reserves of £1.7m, held in fixed assets based on the loan potential of its freehold office in Camberley, Surrey - giving reserve cover against operating costs of 4.8 months, in line with company policy.
The BII Awarding Body (BIIAB) issued approximately 105,000 qualifications in 2012 (up from around 101,000 in 2011) to people working in the licensed trade and in the security industry, a figure that was boosted by the 2012 London Olympics.
BIIAB provided Pre-entry Awareness Training (PEAT) for 3,951 industry newcomers in 2012 (up from 3,388 in 2011).
And income of approximately £79,000 was generated from the new Level 2 apprenticeship scheme launched by the BII half way through the year.
The BII said its helplines handled 3,018 cases in 2012, helping licensed retailers comply with the law, develop their businesses and train their staff.
BII chief executive Tim Hulme said: “These results should be seen in the context of the difficult challenges facing the industry and our members.
“Membership attrition was broadly as expected, and not higher than historical levels, due in part to the levels of those leaving the industry, amid unprecedented levels of pub closures.
“While the number of new members was disappointing, 2,300 new individuals still recognised the significant value of joining their industry’s professional body, and all the benefits that membership offers, such as the business helplines, access to discounted services and suppliers, and business-building publications and events.
“I am on record saying that we have much work to do – that is why I am here – but the change programme that is underway at BII is already producing results. Foremost, our future business decisions will be driven by our members and industry needs. The number of people taking our qualifications is up, the early progress on apprenticeships is hugely encouraging, and while these numbers show that the institute operated at a deficit, in terms of reversing the deficit incurred the previous year, 2012 was a year of significant progress. The direction of travel is positive and I look forward to reporting further progress as my tenure unfolds.”
