Publicana books show losses

A report into the crash of temporary pub-management company Publicana shows that the company has been making losses despite accounts showing a profit.

A Companies House filing by administrator Begbies Traynor reports that Publicana accounts, drawn up by a company called Bishop & Partners, had shown a profit of £358,551 in the company's first financial year — it was incorporated in March 2007 — and £304,066 in the second year. However, by December 2009 it found itself with indebtedness of as much as £500,000.

Publicana engaged Coopers chartered accountants, which began work on the company's accounts in January this year and "identified numerous errors".

The report states: "Throughout February and March 2010 the new accounting team became increasingly concerned at the level of the company's creditor claims in relation to aged supplies for which no accruals had been made.

"The company was re-ceiving an increasing volume of chasing letters and even bailiff visits for creditors' claims not recorded within the accounts, and some of the claims dated back over two years."

New accounts for the nine months ended 28 February 2010 showed the company had made a loss of £1.35m, with at least £600,000 of this dating back to the two previous years. An administrator for Publicana was appointed in April.