Pure Innovations (05241249) Possible involvement in Market Place Revival
It is difficult to come to firm conclusions without knowing more about the company’s structure and business operation. However, the following facts are known:-
The Company has charity status and profits are, therefore, tax-free. I have no indication of the grounds on which the status has been obtained/maintained. Which charities benefit?
There is reference to volunteers running the operation and also to 125 employees in 2007 rising to 187 in 2012. Who’s Who? There are 5 directors – it is not clear whether the payroll includes “employees”. If not, then the beneficiaries are the directors and the charitable status is in question.
Costs other than payroll take roughly 20% of sales. Substantial longterm debt was taken on board in 2010 by £2.0 million and was partly used to restore cash balance and was partly repaid by 2012, but the picture is not explained fully within the shareholder funds section of the accounts.
