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Johnson outlines BPIF strategy for recovery
The BPIF revealed at its AGM last week that it has some "tough decisions" ahead as it fights to turnaround its financial performance.
The industry body logged a £1m loss on a turnover of £7.3m in 2008, primarily associated with its £4.4m contingent pension deficit and subsequent final salary scheme buyouts and other restructuring costs.
“Everyone will, like me, be somewhat shell-shocked by the position the BPIF finds itself in and I make no bones about it, it is the most difficult time in my career,” said BPIF chief executive Michael Johnson. “[However,] what I’m going to concentrate on is the future… and building a platform that will sustain us for the next 108 years.”
According to Johnson, while the £1m loss will undoubtedly be the focus of attention for many members, the year also revealed a number of positives: income is rising, as is membership and contributions from its merged consultancy arms, ViP and BPIF Business, and a number of partnerships have been agreed with various LDAs.
“The key is that we have to maintain our service offering to our members,” said Johnson.
Through cutting back office functions and spen-ding more time in the field, the BPIF plans to initiate savings of £500,000 for each of the next three years. The body is also appealing its 2008 pension levy of £155,000, which represents a four-fold increase on the previous year.
The organisation is currently in the process of moving to a Limited Liability status, which will improve its cash position and remove the ‘technical’ liability of its members for the BPIF’s debts. There is a chance that it may also be able to claim the VAT it has paid over the past three years, totalling £1.3m.
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Comments
Colin Thompson - 18 July 2008
The BPIF have just issued there latest accounts to the members and they now appear on there website. What do there members think? BPIF Accounts for 2007/2008
Turnover - £7.2m
Net Loss - £1.016m
Net Loss as a percentage - 14.12%
Simon Biltcliffe- Webmart - 18 July 2008
Taking the hit all in one year is the right move. Stuff like this happens ( just been through it myself) and although it makes one year look awful, it clears the decks.
The fundamentals of what they are doing are right and the industry couldn't ask for a better team to fight its corner. Any repeat would be totally unacceptable, but I'd be staggered if there was one with the team that are leading it.
Simon Biltcliffe
MD
WEBMART Ltd
www.FreePrintSales.com
another force for good in the printing industry
Colin Thompson - 19 July 2008
Simon, the BPIF have continuous losses not just one year.
Net Loss breakdown - BPIF General £896k and VIP - £120K.
Plus, current Overdraft of £600k,
DEFICIT IN MEMBERS FUNDS - £465K
The BPIF have the following Directors;
One CEO
Four Managing Directors
Two Other Directors
Six Non-Executive Directors
.
Colin Thompson
Cavendish
www.cavendish-mr.org.uk [edited]
PAUL BROWN - 21 July 2008
What indeed do the members think?!
The ones talking to me think it is tough in business today, they think that regulation is excessive, they believe that the pensions regulator and the former chancellor have a lot to answer for decimating the pensions as a whole; undoubtedly contributing to the federations current position. They trust the BPIF as a staff to lean on as they strive to be the best Printer or Finisher in their market.
Writing off restructuring costs has undoubtedly cast a shadow over the current year accounts, but is much more honest accounting than trying to “hide costs” over a few years. The BPIF is a “Not for Profit” members value organisation, as a result it is right that it should be looking at providing member services going forward and not dwelling on the cards dealt to us by our forefathers in years and decades past.
The AGM was an ideal opportunity to discuss the accounts and there was very little comment from the membership, their focus has been much more on what services and leverage benefits they get for their fees, an area the BPIF undeniably delivers in the regions, giving sole-traders, SME’s and corporate’s a unique specialist support structure and negotiating critical mass.
The next six months will undoubtedly be pivotal for the organisation both for management and members. The members I have spoken to definitely think that it is going to be a challenging time, but are in business and the BPIF for the long game.
Paul Brown
bascom-bms
www.bascom.co.uk
GRAHAM MASTERS - 22 July 2008
May I add my thoughts on what members think. Well I personally am happy.
This is a classic example of the whole story not being able to be viewed in figures alone. Yes the BPIF has gone through a difficult period and no I'm not happy with the level of the loss, but I believe we now have a trade body that is fit for purpose and that is now in a position to move forward.
Everyone in the industry accepts times are tough, I have had two customers this week tell me its the worst they have known it for 10 years! The BPIF is no different. The number of companies in the industry is falling, but its mainstream income has stayed level - that in itself is success.
Restructuring costs and funding the pension deficit have created the loss and as has been said above, we would all look to take a hit for all possible costs in a bad year to enable firm foundations to be built. I believe this is the case with the BPIF.
So all in all I believe the BPIF has got it right to date, yes admittedly not everything, but in essence the overall plan I approve of.
I would echo what Simon says above - a further loss is not acceptable, but we have to let Michael Johnson and his team have time to put their strategic plan in operation and see the positive aspects of last year's loss and the restructuring.
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