Trick or Treat? Three Years Today

Phil Groom writes:

Came across this whilst revisiting last year’s Trustees Report & Accounts from SPCK (pdf – p.20, under ‘Exceptional Items’; scroll down to p. 22 in Google’s cached version), figured we shouldn’t let this third anniversary go by without marking it. Hadn’t thought much about it being Halloween before: trick or treat, anyone?

Transfer of Bookshops
On 30 October 2006, SPCK entered into an agreement with Saint Stephen the Great Charitable Trust (SSGCT), a registered charity (no. 1109008), for the creation of a new Christian Resources Group including the SPCK Bookshops in operation at that date. Under the terms of the agreement and in furtherance of its charitable purposes, SPCK transferred its Bookshops activities to SSGCT on 31 October 2006, including the transfer of certain freehold and leasehold properties, fixtures and fittings and stock. SPCK also agreed to grant leases to SSGCT, at peppercorn rents, on certain other freehold properties for a period of seven years, after which time they would be transferred to SSGCT if the SPCK Bookshops Group remained in operation on an agreed basis. From the date of completion, SSGCT became responsible for the trading activities of all bookshops continuing to trade under the ‘SPCK Bookshops’ name, which it had been agreed could be used by SSGCT under an annually renewable licence. The licence was withdrawn in November 2007 in view of their failure to abide by the terms of the agreement.

SPCK AGM 2009 – Salient Points

Matt Wardman writes.

On this blog we have attempted to keep up with a dozen or more different strands, and have communicated formally or informally with everyone from bullied staff to suppliers left high and dry to the USDAW Union to the Church of England Pensions’ Board.

More than 12 months on, some of the tectonic plates in the SPCK-SSG saga have shifted, some staff have received compensation after a long legal battle, and the Bookshop Chain is nearly (except for Durham Cathedral Bookshop. Bah!) under the control of trustworthy management in the shape of the Charity Commission Interim Manager of the SSG Charity. Painful decisions will continue, but the management can now be relied upon to follow the law of the land, and a set of honest principles.

The saga will continue for a long time to come, as debt recovery action takes place (I hope), assets are recovered, the Messrs Brewer are (we hope) brought to what justice is possible, and some new initiatives and bookshops continue to emerge from the rubble of the destroyed SPCK chain.

Following the SPCK Annual General Meeting on October 1st, these are some joint reflections drawing out some of the more salient figures from the Accounts and Annual Report.

SPCK Annual General Meeting 2009

The performance of SPCK in its current format of publishing and mission still holds relevance and concerns for former bookshops staff, and the publication of the latest Annual Report at http://www.spck.org.uk/about_spck/spck_2009_rept_accts.pdf gives cause for question.

Former bookshop staff still have a loyalty to the Christian mission of SPCK as it affects the wider Christian world through its publishing programme and world wide literature initiatives; feel worried about the fate of the bookshop premises once owned by SPCK which were funded by the giving and the support of thousands of Christians for nearly 200 years; and apprehensive about the shortfall in the pension fund which affects existing SPCK pensioners and those yet to receive their pensions.

Those with financial expertise and insight can read the Accounts and draw conclusions but key paragraphs in the Annual Report are as follows:-

From the Chairman’s Overview

“First, we experienced a large drop in the valuation of our investments; and second, we suffered from the outcome of a revaluation of a pension fund.”

From the Financial Review

“The Society recorded a net surplus , before exceptional items and gains and losses, of £294,000 (2008: surplus of £751,0000. Exceptional items in this time of economic downturn include an increased provision of £3,832,000 for funding a revised larger deficit in pension funding relating to a now-closed scheme, which was identified after a revaluation of funds by the Church of England Pensions Board. In addition, there was a large non-cash cost in the form of a net loss on the revaluation of investment assets of £3,111,000 (2008: net loss of £1,318,000). The net movement in funds for the year was a deficit of £6,648,000 (2008: deficit of £674,000).”

Further on investments

“The investment in William Leech (Investments) Limited has been used as security to guarantee the Society’s liability for additional pension contributions to the Church of England Defined Benefits Scheme”. Presumably because of stock market performance, the ordinary shares in William Leech, at market value fell from £4,640,000 in 2008 to £3,521,000 in 2009.

Sales

Sales income from Publishing in 2009 was £1,733,000 – in 2008 £1,834,000. The budget figure for 2010 implies a further fall.

Freehold Properties

The freehold properties housing the former SPCK Bookshops are no longer quoted assets.

Commentary

The Christian book trade is said to be in a fragile state at present, and the loss of 23 SPCK Bookshops can have been no help to publishers especially coinciding with a Recession. One hears worrying rumours about the future of Biblica/STL and the Wesley Owen shops. If SPCK did not survive, not only would the future of Christian mission and publishing be harmed, but also the pensions of former staff would be jeopardised and the William Leech Foundation, a generous charitable donor, harmed.

The pensions of former staff are held by the C of E pensions board, so if SPCK itself suffered really serious trouble, those funds are safe.

Finally, things may change (again) as the economy recovers from the current recession – perhaps particularly for investments held by the pension fund.

Wrapping Up

If SPCK wish to respond to any comments here, we are happy to publish a statement or commentary.