16th March 2011, 05:54 PM
Right? So are they in effect. The not for profit aspect allows them to establish financial surplusses and ultimately reinvest in the company (pay staff more, buy new kit etc) or invest in their charitable aims (although why they don't do that routinely and aren't made to is beyond me). It doesn't enable them to make a loss on jobs and they're overheads prevent them from undercutting at a low level - if they made enough of a loss they'd be technically insolvent and have to cease trading or, in the case of the charitable trusts, the trustees would have to accept financial liablility for the 'charities' debts which is unlikely to go down with them to well.