Business
PwC tries to save Lighthouse Trust
Charity faced with financial difficulty
25 August 2009
PricewaterhouseCoopers in Scotland has been appointed administrator to the charitable organisation, the Lighthouse Trust, which has helped play a significant role in Scotland’s architectural policy.
A slump in demand for commercial activities has hampered the trust, with it now facing financial difficulties, recording a net deficit for 2008/09.
The charity mainly received its funding from the public sector for specific projects in addition to £100,000 funding from Glasgow City Council for its exhibitions and educational programmes. Commercial revenue also helps the charity where it leases office, restaurant/ bar space, conference and commercial events, and retail activities.
Some 57 jobs are at risk at the charity while administrators ‘investigate all possible options… to determine if a sustainable economic structure can be delivered that will enable the Lighthouse Trust to continue its existing role’, said Bruce Cartwright, head of business recovery services at PwC.
Cartwright said the Lighthouse Trust ‘has traditionally been reliant on substantial income generated from commercial activities to run the Grade A listed Mackintosh Building and this market, particularly in relation to income from conferences and functions has been hit hard in the current market conditions with many organisations taking events in-house’.
He added: ‘I understand that the board was in the course of taking steps to address a funding shortfall but it became apparent that while the revised business plan addressed many of the issues, it could not address the funding deficit derived from losses incurred in the previous twelve months’.
The charity is still currently operating while administrators find a resolution.
A slump in demand for commercial activities has hampered the trust, with it now facing financial difficulties, recording a net deficit for 2008/09.
The charity mainly received its funding from the public sector for specific projects in addition to £100,000 funding from Glasgow City Council for its exhibitions and educational programmes. Commercial revenue also helps the charity where it leases office, restaurant/ bar space, conference and commercial events, and retail activities.
Some 57 jobs are at risk at the charity while administrators ‘investigate all possible options… to determine if a sustainable economic structure can be delivered that will enable the Lighthouse Trust to continue its existing role’, said Bruce Cartwright, head of business recovery services at PwC.
Cartwright said the Lighthouse Trust ‘has traditionally been reliant on substantial income generated from commercial activities to run the Grade A listed Mackintosh Building and this market, particularly in relation to income from conferences and functions has been hit hard in the current market conditions with many organisations taking events in-house’.
He added: ‘I understand that the board was in the course of taking steps to address a funding shortfall but it became apparent that while the revised business plan addressed many of the issues, it could not address the funding deficit derived from losses incurred in the previous twelve months’.
The charity is still currently operating while administrators find a resolution.
CCH is a trading name of Wolters Kluwer (UK) Limited. Registered in England & Wales, No. 450650. Registered office: 145 London Road, Kingston upon Thames, Surrey KT2 6SR. Wolters Kluwer (UK) Ltd is authorised and regulated by the Financial Services Authority for general insurance business.