23rd March 2011, 12:26 PM
GPStone Wrote: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.
You'd think that was the case wouldn't you but one looking at one particular charity unit's accounts (all online at the charity commission) seem to be suggesting that they have been making a loss every year for the past three or possible four years. A private commercial company couldn't do that without either the director's sticking their own money in to keep it going or managing to get a loan to cover it, so how do they do it? Are their trustees making up the not inconsiderable shortfall out of their own pockets? That to me seems like an unfair advantage.